| Is The Market For Homes In Jupiter And Homes In Palm Beach Gardens Predictable? |
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| Written by Debbi Shattow |
| Friday, 06 August 2010 19:50 |
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There appears to be some difference of opinion amongst the experts as to where the South Florida housing market is headed - and when it will get there. While there are numerous tools that are being employed by the various pundits to try and create accurate predictions, the resulting information is often contradictory. This is largely due to the unusually 'localized' nature of the market here. As invested residents in the housing market, we ask ourselves, are the prices of homes in Jupiter and the homes in Palm Beach Gardens improving? This article will address the housing scene in Northern Palm Beach County, as that is where our expertise lies.
There appears to be some difference of opinion amongst the experts as to where the South Florida housing market is headed - and when it will get there. While there are numerous tools that are being employed by the various pundits to try and create accurate predictions, the resulting information is often contradictory. This is largely due to the unusually 'localized' nature of the market here. As invested residents in the housing market, we ask ourselves, are the prices of homes in Jupiter and the homes in Palm Beach Gardens improving? This article will address the housing scene in Northern Palm Beach County, as that is where our expertise lies. This situation can best be understood through the use of a few examples. Our first example is a 2 bedroom condo unit with an attached garage in the Abacoa neighborhood of Jupiter. Sold originally in 2004 for $188,780, the unit was worth an estimated $275,000 at the peak of the market in 2007. Also a short sale - the bank approved a sale price of $160,000 for a buyer who backed out of the purchase as a result of not getting financing for the property. An offer from a second buyer of $140,000 was countered by the bank at $155,000. After the second buyer walked, an offer from a third buyer at the sale price of $155,000 was accepted. The second example is in a slightly more urban townhome community in Palm Beach Gardens. This Palm Beach Gardens home we sold in April of 2010 as a short sale for $245,000 was purchased new in January 2007 for $435,000. By the time the bank approved the sale price 2 months later (which they, too, had previously approved at that price on an earlier offer that had fallen through), homes in the area were selling anywhere from the low $200's (foreclosure price) and climbing close to $300,000. Even with new short sales coming on to the market in this community, prices in this community continue to be strong. There are, of course, many factors (location, amenities, unit sizes, price range, and schools to name a few) that affect the market values of homes. One that is somewhat unique to this area, however, is HOA fees. While there are notable differences in how the market value of homes in Jupiter and homes in Palm Beach Gardens are affected by HOA fees, there does appear to be a pattern. Many communities are experiencing the higher fees due to deadbeat homeowners (especially those looking at short sale and foreclosure). Newer communities are dealing with high debt service as well, due to mortgages on property that has been turned over by the community's developer. Either way, some of these fees have grown by 50% or more. As you might imagine, this can be a real deterrent for a new home buyer. So what does this tell us about the market? Buyers are looking for value - and the most home they can get for their dollar. HOA fees cut into what they can apply to a house payment so; ultimately, it limits how much they can spend on a home. Most experts anticipate another wave of short sale and foreclosure activity as the unemployment situation continues and a new wave of adjustable mortgages come due for increases, which can further pressure HOAs. It probably won't be until we have weathered this final storm that we will see the across-the-board bounce back in housing prices we are all looking forward to. About the Author: Want to find out more about homes in Jupiter and homes in Palm Beach Gardens, then visit Debbi Shattow's site on how to choose the most up to date information on market conditions in the Northern Palm Beaches. |
