So many balls in the air on a macro-economic level with war raging in Ukraine, inflation raging here in America and the stock market in a serious retreat. One can only wonder if Jupiter home prices will be next?

Inventory, or should I say lack of inventory, remains a huge driving force in the Northern Palm Beaches real estate market. So is the volume of million-dollar home sales, which continue to show strength. Anything can happen, but sitting smack dab in the middle of season the single-family home market is looking a bit tired, at least around the edges.

Sales of single-family homes in the Jupiter area slowed in February to the lowest level we have seen in well over 7 years. Sales were down 20% compared to January and an even more dramatic 46% compared to year ago number. Is inventory to blame? Certainly, a large portion of the drop may be blamed on the lack of options for buyers, but inventory has started to level off a bit and over the past couple months is basically unchanged.

Sure, as of March 1st, we just set another new all-time record price of $810,00 for the median single family home price in the Northern Palm Beaches. But that was down significantly from mid-month numbers that hit as high as $830,000. It was also the lowest monthly rise we have seen since November. If current trends stay in place, we may see a slight pull back when we report numbers next month.

Don't expect any significant pullback in prices as the market above a million dollars is still extremely strong. Pending homes sales above that threshold are up 30% since February 1st and sit at the highest levels we have seen since June 15th of last year. Those with money may be looking at real estate as a safer bet than equities, but hard to say how much that plays a factor.

For the working family, affordability is a real issue. For those trying to buy, prices still remain at record highs, being successful means reaching in many cases and interest rates are at 3-year highs after rising now for 10 straight weeks. With inflation still raging, and the Fed not really knowing what to do, most signs point to even high interest rates ahead. Maybe even significant increases.

For those renting there are good signs, and bad signs. So far this year in Jupiter, the median rent on an unfurnished, annual rental of a single-family home is down 11% but with so few homes available it may be more of a function of what type of house has rented. Median rents on Jupiter unfurnished, annual condo rentals are up 33% this year, while townhome numbers are up 20%.

I got my first real estate license almost 30 years ago and I have never seen anything close to what we are going though right now. Certainly, the bubble bursting in 2005/2006 was crazy, but it was a totally different kind of crazy. On top of that, in 2005, our national debt was under $8 trillion dollars. I don't care if you are buying, or selling, there are no easy answers. But there is education and making informed decisions on the metrics surrounding a specific property, at a specific time, need to be fully explored.

Paradise Sharks Real Estate has been writing weekly articles about the Northern Palm Beaches real estate market for longer than I care to remember. Years and years. Our motivation is helping others. Our clients, friends and neighbors. Saving them money. Saving them headaches. Our consultations are complimentary, and we are happy to answer any and all questions that you may have. We would love the opportunity to earn your trust and your business. If we can ever be of assistance in any way, you will find us very easy to reach at 561.308.0175 or at tom@paradisesharks.com.

Fins up……

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