Number of Real Estate Buyer Contracts Skyrockets in South Florida
Number of Real Estate Buyer Contracts Skyrockets in South Florida
Demand for Palm Beach short sales is quickly gaining momentum, and home values are rising as the real estate supply continues to decline. The upswing in demand is good news for the stability of the housing market, which was one of the hardest hit by the recent recession. As demand continues to pick up, the Palm Beach real estate market is making headlines for its remarkable improvement throughout the last fiscal year.
According to the Realtors Association of the Palm Beaches and local Multiple Listing Service systems, the number of real estate listings with buyer contracts jumped by 67% in October year-over-year. In comparison to September, the number of contracts jumped 18%, and the number of buyer contracts for single-family homes and condominiums increased by a remarkable 85% year-over-year this past October. Demand for rental properties is also on the rise; consequently, rents are following the same upward trajectory as home prices.
Economic analysts and real estate professionals alike are optimistic about the continued housing recovery in South Florida. The Pending Home Sales Index increased by 5.2%, according to the National Association of Realtors. Because increased pending sales is indicative of an increase in future sales overall, real estate analysts have high hopes for a full housing market recovery in the next few years. Although South Florida is making relatively slow progress toward a turnaround, analysts believe that steady, consistent gains in home values and consumer confidence will have a significant impact on housing market stability.
Prices for Palm Beach short sales are on the rise. In fact, the discount on short sales is quickly diminishing, and distressed properties are selling at prices that are comparable to that of traditional home values. Because new residents are migrating to the area in search of employment opportunities, the increased demand for housing has had the biggest impact in price gains throughout the last year.
The affordability of Palm Beach real estate has caught the attention of investors on an international scale. Many of them are offering cash for the most desirable properties on the market in the hopes of capitalizing on rental properties in the long term. Other investors are looking at intracoastal properties and beachfront homes as smart investment opportunities because the tourism industry in South Florida is making a comeback.
Median sales prices in the Palm Beach County area are about on par with home prices in 2002; therefore, when inflation is taken into consideration, the properties offer excellent bargains for first-time buyers. Although the competition for South Florida properties is on the rise, many buyers are still finding excellent deals as more people are opting for short sales thanks to new federal guidelines. However, the increase in demand is absorbing inventory at a record-breaking pace, and developers are eager to add new housing options to the area while demand is on the rise.
Please let us know if you'd like to find out more about Palm Beach short sale opportunities. We'd love to help you navigate the Palm Beach housing market as you familiarize yourself with the area and the latest Palm Beach real estate trends affecting the market today.
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