$1M+ home sales soar over 70% in the Jupiter area
The quality of life in the Northern Palm Beaches is about as good as it gets in South Florida. The cost of that lifestyle is not inexpensive, but the increase in the number of Jupiter area home sales above the million dollar mark is almost mind boggling. During the month of May, the number of these sales soared more than 70% above last year’s figures. And 2018 was a record year with an emphasis on “was”.
Then, along comes 2019, and so far in 4 of the year’s first 5 months, last year’s record numbers have been left behind in a pile of dust. So what’s behind such huge increases?
Sure, the economy is humming, the stock market performing well, more favorable lending terms on jumbo mortgages and all that stuff helps, but it’s taxes that are driving the top end of local real estate market. You see, the number of people moving to Florida to escape high state tax locations is surging.
It’s not just the state tax, but more important is with the latest tax changes out of Washington they also lose the ability to write that amount off their federal tax bill. You see, it’s one thing to have a deductible expense and a totally different thing to have a nondeductible expense. The loss of this federal tax deduction has many wealthy families asking why not Florida. Many are answering the call and I am sure with the ink dry on the checks sent to the IRS in April it’s just adding fuel to the flood of wealthy people relocating and buying expensive homes in the Jupiter area.
And guess what? It’s a trend that will likely continue as the new tax laws also hurts existing homeowners with high property tax bills in the Jupiter area. Imagine that beautiful home overlooking the Loxahatchee River and a property tax bill of say, $60,000. It was a sum that once was deductible and no longer is. Once 2019 tax notices are sent out in August watch for another round of current residents that want to say adios to another year of non deductible property tax bills.
The top end of the market is red hot and this strength is really carrying the overall market. All signs point towards continued strength but keep your eyes and ears open. Get educated, not sold as mistakes at these prices can be very expensive.
If you are selling in today’s market, you will want to understand the dynamics of the market for your property. Almost 15% of sales that closed above the $1M mark in May went under contract in less than a week. You certainly have options when selecting a broker, and a good question to ask when interviewing is what commission break you would receive if your home sells in 7 days or less. Paradise Sharks has full service listing packages as low as 4% and we also provide our buyer clients significant credits at closing as our little way of saying thanks. If we can ever be of help in any way it’s super easy to set up your complimentary consultation at firstname.lastname@example.org or 561.308.0175.