August Real Estate Newsletter
Real Estate Market
This week we saw just 22 new listings come to market which can be expected for this time of year. Mid August till October 1st is a very quiet time for home sales everywhere. We actually saw more price changes (27) than new listings. I have been saying agents are overpricing properties. Many agents will give you a pie in the sky listing price to get you to sign their listing agreement only to come back and badger you for continual price reductions. Sellers are not being educated by their agents and believe just because inventory levels are low that prices and demand are stronger than they actually may be. Unless you have a very specific and special property buyers are spending more time looking then buying. We had 13 properties go under contract and nearly 50% have been on the market less than 30 days. This goes back to me saying watch the new listings and price changes closely. Sales show a similar story with 94 properties selling the first half of August. 32 of the sales were under $300,000 which is our entry level market. An additional 23 sold between $300,000 and $400,000. Basically the bulk of our sales or nearly 60% are under $400,000. The cost of remodels continue to climb which also puts downward price pressure on homes that need updating. Even with low inventory buyers are really taking their time and waiting for the right property to come along. Buyer push back is holding down upward prices. Search for Jupiter Fl real estate with us where you will find the best homes and condos for sale.
The article below states it perfectly that demand is there but affordability is taking some of the steam out of upward price increases.
Housing affordability hits 10-year low in 2Q
Another interesting article from the National Association of Realtors shows housing affordability continues to decline. Buyers are seeing more of their income being consumed by home ownership than in the past. We continue to see great job reports, low unemployment and a bustling economy but our biggest expense continues to rise. In many parts of the country local towns are struggling with affordable housing for the general worker. I recently read an article where a local Colorado town was looking at imposing a property tax on home owners to subsidize affordable living in the town. It also spoke about the dramatic rise in building costs is having a detrimental effect on building more affordable homes. What they are planning are smaller condos and townhomes. We are also seeing many apartment complexes breaking ground as well. The single family homes is quickly being replaced in many communities. It's interesting to read what's happening in other parts of the country.
Homeowners & Condo Associations & Homestead
Many buyers are often confused between homeowners associations and condo associations. I also have buyers asking to be in communities not governed by an association. Each can have it's good and bad points but it's important to explore all options. Back in 1995 Florida enacted the Florida homestead( Save Our Homes) which limited property values from increasing more than 3% per year or the cost of living index whichever was lower. This was great for many homeowners especially on a limited or fixed income which protected them from steep rises in their property taxes and being forced out of their homes because of rising property taxes. This created another problem where property owners were now locked into their homes and couldn't upgrade or downsize for fear of losing this property exemption. Once again Florida brought the portability clause to alleviate this problem. Now with portability sellers could now move and still save thousands of dollars on their property taxes which helped bring more properties to market. Living in HOA/condo communities you are required to maintain your property in a suitable and acceptable condition based on the rules of the community. This is why you see many homes where the lawns are well maintained, houses are painted and the general appearance of the homes are similar. If not the homeowner may be fined and a lien placed on their property which may lead to additional costs to the homeowner. Being part of an HOA has both it's good and bad points depending upon the individual and their lifestyle. Before purchasing in an HOA or condo community spend time and read the rules, regulations and bylaws. You don't want to be surprised when you move in with your $75,000 GMC Denali pickup truck and you can't park it on the property even though your neighbor has a car with the paint peeling off. Maybe you thought you were going to rent the property and find out they only allow rentals after 2 years of ownership or only so many units may be rented. Ask for the latest rules/regulations from the property manger where you are purchasing. Our community had a first right of refusal on home sales where any existing property owner could match the terms of a buyer. Imagine purchasing a property and you agreed upon all of the terms and a homeowner in the community enacts the first right of refusal and you lose your home purchase. Many communities have very similar rules and yet different associations enforce them to a greater degree. Just because today's board does not enforce them as they are written doesn't mean the next board will not take a 180 degree turn and follow the rules to the letter. Think of the rules as the worst case scenario. I personally have lived in HOA's, condos and non-HOA communities and each has their good and bad points but at the end of the day I feel your home values are better protected in a community governed by an HOA or condo association. Imagine trying to sell your pristine home on the Intracoastal for top dollar and across the street your neighbor has cars parked on his lawn which hasn't been cut in weeks. It can happen here in many Florida communities. If you have any questions about the real estate market feel free to contact me anytime.
I'm happy to offer you any advice or point you in the direction to answer your questions. If you or any of your neighbors are thinking of selling or upgrading to a new home feel free to contact me for a market analysis of your home. We offer professional aerial photos, video tours and outstanding web exposure. Remember we not only specialize in Jupiter but cover Singer Island condos, Jupiter Island Condos, Hutchinson Island condos where affordable living is still available and Boca Raton condos to our South.Posted by Jim McLane on