Palm Beach County Existing Home Sales Accelerate
Palm Beach County Existing Home Sales Accelerate
The Palm Beach County housing market is now attracting hundreds of new buyers, which signals a dramatic turnaround for South Florida real estate in the wake of the housing crisis. At the height of the housing crash, foreclosures dominated the available inventory of Palm Beach homes; now, a mix of traditional real estate and short sales is attracting investors and first-time buyers alike.
The latest report issued by the Florida Realtors revealed that Palm Beach home sales increased by 22% year-over-year in October 2012, following a statewide trend of increased home sales activity. Florida home sales skyrocketed by 25% in the last year. At the same time, Palm Beach home prices gained upward momentum with an increase of 23%, according to the report.
"Once again, everything that should be going up in the market is going up, and everything that should be going down is going down," said Florida Realtors Chief Economist John Tuccillo in an interview with the Palm Beach Post. "As impressive as the year-over-year gains for October are, far more impressive are year-to-date gains of 2012 over 2011. They indicate the depth and resilience of this recovery."
The positive upswing in home sales activity has bolstered consumer confidence, which is already on the rise thanks to the improving local economy. The Palm Beach County unemployment rate is falling, and a flurry of new business activity in the area signals that entrepreneurs are looking forward to a prosperous future in South Florida. Development of luxury real estate and amenities geared toward tourism is also on the rise as the local tourism industry is experiencing a revival.
While sales of Palm Beach homes are accelerating, the inventory of available Palm Beach real estate is dropping. According to Florida Realtors, the overall inventory of real estate has dropped to a 4.7 months' supply, while the number of single-family homes on the market has fallen to a 5.2 months' supply. In comparison, real estate analysts typically consider a 5.5 months' supply of available real estate to indicate a stable market. As a result, the Palm Beach County housing recovery is benefitting both sellers and buyers as the demand for real estate is making a comeback.
Sellers are more apt to list their homes now that prices are returning to pre-recession levels. According to recent statistics, home prices statewide increased by 9% in October 2012 year-over-year. The median price of a single family home in Florida at the end of 2012 increased to $145,000. There are now fewer distressed properties taking up a sizeable percentage of the available homes for sale in Palm Beach County, which is one of the reasons home values have been able to make a strong recovery. Now that foreclosures are declining, short sales and traditional sales are poised constitute the bulk of real estate transactions in South Florida throughout the year.
Please don't hesitate to give us a call if you'd like to find out more about the latest Palm Beach real estate trends making headlines today. We'd love to help you with your search for the best Palm Beach home to suit your needs.
If you'd like to find out more about the Palm Beach housing market or Palm Beach short sale trends, please give us a call. We'd love to show you around the community while you search for your future Palm Beach home.
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