Palm Beach Housing Market Making a Comeback
Palm Beach Housing Market Making a Comeback
Although South Florida faced significant setbacks in the wake of the housing crisis, real estate analysts believe that the Palm Beach County housing market is poised to make a full recovery as promising real estate news continues to entice buyers to consider Florida real estate. Now, six years after the housing crash, the market is gaining momentum. Home values are skyrocketing throughout the county, and buyers are showing an improved consumer confidence that is indicative of an improving economic forecast. According to recent data released by Zillow.com, almost half of 43 communities in Palm Beach County reported price gains in the double digits when compared with the historic lows recorded at the height of the recession.
Palm Beach home prices are increasing in both traditional and luxury markets, although some sectors of the housing market are seeing more significant price boots than others. In the Ocean Ridge community, the median home value increased by an impressive 17.3% to approximately $604,000. The tourism industry is also making a strong comeback, which has also helped boost the value of some luxury homes potential buyers intend on using as vacation rental properties. New affordable communities targeted at young professionals are seeing an increase in demand as the local economy continues to improve.
Most foreign investors have backed off from the South Florida housing market now that most rock-bottom deals have already been scooped up by the competition. The influx of foreclosures and short sales immediately after housing crash caused prices to dip, and investors jumped at the chance to buy properties in bulk with the intent of flipping them once prices started to rebound. Although investors are still showing interest in Palm Beach homes, they are buying properties with the intent of using them as rentals rather than selling them in less than six months to make a quick profit.
The upswing in South Florida home values is attributed to a quickly-diminishing inventory and an increase in demand from first-time buyers and investors alike. Potential buyers are eager to take advantage of favorable mortgage rates, and lenders are now making it easier for first-time buyers to qualify for financing.
Now that the backlog of foreclosed properties is negligible, real estate analysts have reported strong sales of Palm Beach properties over the last 18 months as the inventory continues to drop. According to the latest reports, there were just 6,616 homes for sale in Palm Beach County at the end of October, which is a 43% decrease year-over-year. As demand continues to decline, available land for construction will be sold at a premium as developers rush to take advantage of the need for new housing options in South Florida.
Please don't hesitate to let us know if you'd like help with finding your future Palm Beach County home, or if you'd like us to keep you up-to-date on the latest Palm Beach real estate trends. We'd love to use our professional expertise to help you find the Palm Beach home of your dreams.
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