Jupiter Florida Real Estate
I use several different factors to track the market trends including days on market, number of properties under contract and number of homes for sale as some of the indicators of what's happening here in the local market. I also follow the activity of potential buyers and sellers as well as agent activity on my listings.
Overall what I'm seeing is a much stronger single family home market versus the second/vacation home here in the area. Demand seems to be leaning more towards Jupiter single family homes than condos in today's market place. Homes in Abacoa and similar communities are selling much quicker and at higher prices than homes/condos along the beach. In Abacoa there are just a few single family homes that have been on the market for over 100 days while here along the beach a third of the homes listed for sale have been on the market over 100 days. 50% of the homes under contract in Abacoa have sold in less than 30 days. Even the town home market in Abacoa remains strong with less than 25 available for sale at the moment.
Along the Jupiter-Juno beach we predominantly have condos and several single family home communities with the Bluffs being the largest single family home community. We have 301 properties for sale with 117 of them on the market for over 100 days. 74 of the 301 properties are new listings on the market for less than 30 days. This week I saw two beach homes go under contract. One in Olympus which was initially listed at $1,575,000 and after being reduced several times to $1,149,000 has gone under contract. It was on the market for 300+ days. Another Jupiter beach home in Xanadu was initially listed at $1.2 million and after being reduced to $970,000 went under contract after 365+ days on the market at a price just above $900,000. A weakened demand and over pricing of homes has kept home near the beach on the market for a longer time period.
What we are seeing is an increasing number of full time residents coming to Florida. Kiplinger's magazine recently rated Florida #8 in the country as the best state to retire. Tax benefits for the wealthy and the weather were high on the list. The tax benefits is a major reason you are seeing the waterfront and luxury home market exploding. The condo market has been weaker as most condos are just to small for the influx of full time residents and the increased prices for Jupiter oceanfront condos is pushing many second home buyers other places which are more affordable. The entry level oceanfront condo is quickly approaching $500,000 or more. Many of the condos are in a desperate need of a remodel so buyers are looking at the cost plus a $100,000 remodel for their vacation home which may be used for three months or so. This is pushing the demand for seasonal rentals through the roof and expect rental rates for next season to rise.
Buyer's & Seller's
There are buyers out there shopping but many who are purchasing a second home have time on their side. They are waiting for that near perfect property while single home buyers are more time sensitive and have to purchase as soon as possible. This is why you see many condos under contract in a short time frame as the buyers are waiting and know what they want. Many times the full time resident is having to rent because they just can't find a home during that time frame with inventory levels so low. No matter condos or single family homes you are seeing a fair amount of properties get offers or sell in the first 30 days. If not they tend to lag on the market until we see some price reductions or inventory choices don't improve. The time of year plays a small part in the equation as well. This is why I tell many buyers to watch the new listings and price changes.
The difficult part for buyer's is knowing the market and seeing new listings come on that are extremely overpriced. You as the first buyer risk offending the seller who was just told by his agent that his house is worth a certain figure.
With dramatic price increases in the local areas I'm also starting to see some migration further North into Hutchinson Island and the Melbourne area for more affordable homes. Living in Palm Beach County is not inexpensive by any means. Single family homes are starting around $600,000 with property taxes of $11,000 plus insurance costs can range from $2,500 to $7,500 depending upon the age of the home. Even with a home that is paid for you are looking at $13,000 to $18,000 per year for an entry level home.
Even condos near the beach are starting at $300,000 or more. Many condo fees are now approaching $500/month which includes building insurance and utilities. You also have a $5,000 per year tax bill which equals about a $1,000/month plus the cost of your mortgage. This is the cost of an entry level condo here in the Jupiter area.Posted by Jim McLane on