Jupiter Real Estate Market 

We closed out the year with 328 home sales for December here in the Jupiter area. Overall 2016 was a tremendous year with sales prices rising and demand for the Jupiter area continuing to grow. We can expect 2017 to be just as strong as limited inventory continues to put upward pressure on prices.

We saw many changes in the Florida real estate market starting with a continuance of low inventory spurring prices upward. This is the biggest factor pushing prices up. Along the beach most of the buyers are cash buyers so cheap mortgage money isn't playing a factor for buyers. Finding the right property is the most difficult task we face today. Of course the low interest rates are spurring buyers to the market place in search of a home. Places like Abacoa have seen dramatic price appreciation in both townhomes and single family homes where many homes are financed. With just 8 condos for sale in Abacoa under $200,000 many buyers are finding it difficult to purchase a condo. Condos and home prices there are averaging $200/sq ft and many have original appliances and cabinets from early 2000. In Jupiter we have just 44 properties for sale under $200,000. That market continues to shrink and the only reason it hasn't disappeared all together is due to condo financing. Many of the sub $200,000 condos require a 20-25% down payment. Buyers looking for sub $200,000 condos usually don't have $50,000 laying around for a down payment. This is why you see a huge demand for townhomes which usually are deeded as HOA's. They are trying to ease up the regulations on condos so more are eligible for FHA financing which will push those prices upward.  

                              Jupiter Oceanfront Condo Market

If you are looking for Jupiter oceanfront condos with direct water views expect prices starting at nearly $400/sq. ft for older condos and $500/ sq. ft for newer condos. If you are looking for 9ft. ceilings the least expensive condo on the beach in Jupiter is listed at $915,000 for 1,340 sq. ft of living space. We have just 15 condos for sale that have 9ft ceilings and prices range from $915,000 to 1.9 million. Supply is very limited and demand for the newer products is high. Last week I visited Vistablue and 5000 Ocean in Singer Island. Both are new projects being built and direct ocean prices are starting near 2 million. They are probably the last two new oceanfront condos you will see built here in the area. 

                      Boca Raton/Highland Beach Market

Not only in the Jupiter area but South of us in Boca Raton /Highland Beach we are seeing direct oceanfront condos starting around $750,000 for a 1980's condo needing updating.  Behind Mizner Park we are seeing Boca Raton single family home prices above their 2006 peak.  Land has become a hot commodity and we are seeing buyers leveling homes to build exactly what they want. Buyers are paying $500,000 or more for tear downs behind Mizner Park to build 3,000 sq. ft two story homes. They demand for downtown living is strong and the new buyers are wanting that so called city life style where you walk to shops and restaurants. 

Along the beach in Boca Raton /Highland Beach we have 137 places for sale over a million and 252 under 1 million. Of the 252 homes/condos under a million 138 are over $500,000. The sub $500,000 condos were built back in the 70's and are smaller non oceanfront units. A new townhome project in Boca called Oceanside Townhomes start at 1.2 million with a short walk to the beach. They are just at $500/ sq. ft. In Highland Beach at 3621 South Ocean they are building new oceanfront townhomes at $1,000 sq. ft.  Beachfront and waterfront properties are stronger than ever with demand exceeding supply.

                  Hutchinson Island Real Estate Market

Local buyers are again pushing North and looking for opportunities to purchase homes. I'm seeing more local buyers coming from Broward County as prices and congestion are pushing them out of Broward. Their options are Boca Raton/ Highland Beach or Jupiter to the North but prices continue to climb.  I have sold more condos in Hutchinson Island this year than ever before as buyers continue to look for affordable beach living as they get priced out of Palm Beach County. Even in Fort Pierce on the island they are building waterfront townhomes on the inlet. They are beautiful and are priced at over a million. That same townhome in Jupiter would be 2 million or more. They are selling slowly as that is the high end of the market there. Square Grouper just built a brand new bar on the Fort Pierce Inlet and it's doing well. You would be surprised how many people you meet there from down South just driving to a destination. In Ocean Village, in the Ocean House we saw two record setting sales for condos this year. A 2,000 sq. ft direct oceanfront condo built in 2004 sold for $630,000 and one just sold for nearly $700,000. Still a bargain by Palm Beach County standards but record prices for there. 

                             2017 Real Estate

What can we expect for 2017 is the question. The stock market experts are saying it's going to hit 20,000. Low interest rates should continue as the Fed has only raised rates a small percentage and American consumers confidence seems strong. I read this article today and thought I should share it with you as well.

Florida Real Estate News Article:

No U.S. bubble

"Housing is not in a bubble relative to incomes or monthly payments, either in a historical or international context," says Dr. Ralph G. DeFranco, global chief economist, mortgage services of Arch Capital Services Inc. "Even as homeownership remains out of reach for many people, a growing housing shortage will continue to push up national home prices faster than inflation for the foreseeable future."

DeFranco cites positive fundamentals for affordability, such as below-normal mortgage rates, employment growth of 2 to 2.5 million jobs a year, an extremely tight inventory of homes for sale, accelerating rent increases.

I feel inventory levels will remain low due to several factors. People aren't moving as much. Downsizing isn't really cost effective. Moving to a larger newer home costs hundreds of thousands of dollars. Your not moving to something larger and nicer for $100,000. It's a $200,000 or more upswing. People are staying put and remodeling. Contractors and home improvement stores are busy here in Florida. 

I'm seeing buyers flipping their properties that bought back in 2013/2014 and the run up in the market is allowing them to sell and take their profits. I'm seeing a lot of these properties and they are selling because they are updated. Some sellers are asking ridiculous prices for junk and we are seeing continual price drops as they were listed to high from the beginning. I'm thinking we are going to see a leveling in prices here along the coast but demand is going to remain strong. New construction is doing well even at the elevated prices. It's easier to afford a new home with financing then to buy a 15 year old home in need of a remodel. I've seen two new townhome developments in the Jupiter area going up and both are $400,000 and up. They are starting at $250/ sq. ft. One is on County Line Rd in Tequesta and the other in Juno Beach just North of PGA Blvd. I'm looking forward to seeing how they sell. It's still less expensive to buy that at $250/ sq. ft than to pay $200 sq. ft and do a remodel.

I'm excited for a new year and am anxiously waiting to see what happens in 2017 in the real estate market. I do know Jupiter/Juno Beach has become the hot spot to live in South Florida and I don't see that changing anytime soon.               

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