Decline in Palm Beach Housing Inventory
Decline in Palm Beach Housing Inventory
Even bank-owned homes in need of repair are flying off the Palm Beach real estate market, in keeping with a statewide and nationwide trend of an upswing in housing market activity. According to a recent report issued by the Realtors Association of the Palm Beaches (RAPB), the volume of single-family home sales was up 8% from 2011, and the median price of homes for sale in Palm Beach County has crept up to $215,000 as of August 2012. The inventory of bank-owned properties is being released on a cyclical basis, which has helped increase home values and stabilize the market. Supply and demand have played integral roles in the Florida housing market recovery, and the dwindling supply is poised to keep prices moving in an upward directions. Now, it's common to see multiple bids on one property since buyers are eager to scoop up hot deals before the prices continue to rise.
Florida real estate trends have followed the same path. Last month, single-family home sales in Florida increased by 11%, and the median home price grew by 6%. Nationwide, the market trends are equally promising; closed home sales and median sales prices both significantly increased throughout 2012, and the market is starting to resemble its conditions prior to the housing crash.
However, some potential buyers aren't as enthused about the latest trends. Many first-time home buyers would love to have a chance to bid on bank-owned properties, but it's increasingly difficult to get a loan. Overall, this could be a good thing since banks giving out loans to unqualified borrowers created the housing crisis in the first place. On the other hand, potential buyers are frustrated by their inability to take advantage of low interest rates due to higher lending standards.
Investors, in contrast, are flooding the Palm Beach real estate market to buy properties in bulk. Mostly, these are cash sales. Cash sales accounted for almost 27% of transactions nationwide, which reflects the fact that foreign investors are flooding the market. Average potential home buyers don't have the necessary cash on hand to compete, and are increasingly being forced into the rental market since they also don't have the necessary credit to secure a loan.
If you’d like to find out more about why the Palm Beach housing market is so hot right now, please give us a call. We're experienced with the ups and downs of South Florida real estate, and are happy to help you with the process of buying your Palm Beach home from start to finish.
[cc_author style="double-or" author="gia"]