Jupiter condo prices increase on decreasing sales
Sales of condos in the Northern Palm Beaches over the past 30 days dropped to the lowest levels we have seen in 12 months. Median prices, however, did push forward for the second straight month. As of February 15th, the median condo price in the Jupiter area sat at $234,000 and was up 1.2% over the past 30 days. Compared to year ago numbers, prices today are up 4.2%, which in reality is a fairly normal annual appreciation.
The quality of inventory still is a problem with most buyers taking a very close look at condition and prices before making a purchasing decision. Buyers are willing to pay for quality product when it hits the market, but there just isn’t much of it. Units in need of a facelift are going unsold with the length of time it takes to find a buyer getting longer and longer. Buyer are seeing through poor quality flips that used to be an easy sale. However, units that are fairly priced, with quality finishes, are seeing little resistance. Buyers are out there for the right properties, but there just aren’t enough to satisfy demand.
Some say interest rates are to blame, but as of this morning, interest rates are down another 6 basis points from just one week ago. The average overnight rate on a conforming 30 year fixed mortgage sits at 4.32% and you’d have to go way back to April of last year to find a better rate. In all reality, after the Fed started raising rates, there has been some up and down movements, but right now rates are just 1 point higher than the all time record lows we enjoyed back in October of 2016. Rates today still offer amazing historical value and probably not a huge driving factor in the sales slowdown we have been seeing.
Seasonal condo buying started off very strong the second half of January but we were hoping for more strength in February than we have seen so far. Hard to call it quite yet as we still have another 6 days before we call February a wrap.
A month ago, I really thought we would see prices for Jupiter condos pressing a bit higher than we have seen. The next few weeks will bring the picture into sharper focus but right now I am a bit less bullish on significant price increases than I was back in January.
If you are playing the real estate game you need to be making informed decisions. Ask a lot of questions, interview brokers. Do not get sold, get educated and if you would liker to learn more about how Paradise Sharks has kicked the middleman right out of the transaction gave us a call at 561.308.0175. If you prefer email you can always reach us at firstname.lastname@example.org. Decades of experience, no broker taking a slice and no franchise fees means we can provide higher quality and more value. It’s just what we do.