Palm Beach Home Prices Follow Trends Toward Recovery
Palm Beach Home Prices Follow Trends Toward Recovery
The economy nationwide is making significant steps toward recovery, especially as unemployment numbers are down and an influx of new jobs is helping many American families gain control of their finances. Similar trends are taking place within the Palm Beach housing market, and the upswing in real estate values is a strong indication that although the Palm Beach housing market suffered a setback from the crisis, it is on its way to a full turnaround.
According to a recent report issued by the S&P/Case Shiller home price index, home prices in South Florida are up 4.4% year-over-year, which is a strong indication that the housing recovery has taken hold in the region. Demand for Palm Beach short sales in particular has skyrocketed, especially among investors and first-time buyers looking for the hottest deals on the market. Yet, the demand for luxury real estate in South Florida is also showing signs of improvement, especially as the tourism industry picks up momentum.
Historically low mortgage rates are also contributing to booming sales within the South Florida market. Now, mortgage rates of approximately 3.5% are encouraging first-time buyers to jump into the market while home prices are still affordable. The low interest rates also make owning a home a better financial decision than renting in most local markets nationwide.
Buyers in the South Florida market are becoming savvy consumers, according to local real estate experts. Although the overall lack of inventory is causing homes at the right price to fly off the market, overpriced homes are tough sells, and most sellers have to adjust their prices accordingly. Investors are also keenly aware of the current market values, and are less likely to pay a high price for real estate if a comparable property is offered at a lesser value.
Now that the inventory of homes in Palm Beach is down to a four or five month supply, real estate experts predict that prices will rise throughout the year and well into 2013. Developers are working to build new mixed-use buildings and housing developments, although the amount of land available for development along some of the most desirable sections of Florida’s cost is becoming scarce. Instead, developers are looking to buy existing buildings in the hopes that they can be converted into luxury condominiums or mixed-use buildings to meet the growing demand for housing. The S&P/Case-Shiller report also revealed that the condominium market is becoming a major player in the South Florida real estate market, and condo prices are following the same upward trend as home values in the area.
If you'd like more information on the latest Palm Beach housing news, please contact us right away. We'd love to discuss how some of the latest Palm Beach real estate trends might affect your final purchasing decision when it comes to picking out your future Palm Beach home.
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