Palm Beach Real Estate Construction on the Rise
Palm Beach Real Estate Construction On The Rise
Demand for Palm Beach housing is at an all-time high in the wake of the housing crisis, and a dramatic shortage of available homes on the market has led to a flurry of construction activity throughout the region.
A recent report issued by MetroStudy revealed that the current market for new home construction in Palm Beach is the best since 2007. In the third quarter, construction began ion 508 homes in Palm Beach County, which represents a 61% increase year-over-year, and the largest number of construction starts since 2007.
The declining inventory of homes has made a significant impact on the amount of constructions starts in the area. Improved consumer confidence has also caused demand for new homes to increase, so developers are likely to see new homes fly off the market.
“The jobs numbers are still very, very soft, but I think confidence is getting better,” said MetroStudy's chief economist “People put off buying a home for a long time and part of that reason was they felt like prices were still going down. Now that prices are going back up, people feel safer buying.”
The average sales price for new homes in Palm Beach County is also on the rise, and increased by 14% year-over-year. Many people are looking for new homes who are moving to the area for new employment opportunities. On the other hand, some locals are looking for new homes because they are recovering from a Palm Beach short sale or foreclosure and would like to take the opportunity to get back into the real estate market while mortgage rates are low.
Although it is still more difficult to obtain financing for a new home purchase than it was prior to the housing crisis, many people are seeing their credit scores improve and would like to get another mortgage while the economy is also making some slight improvements. Florida is leading the nation in housing demand, and developers are capitalizing on the trend by building homes with the intent of selling them to both locals and outside investors.
Please let us know if you would like more information on Palm Beach homes for sale listed on our website. We'd be more than happy to give you more information about Palm Beach real estate trends so that you can make the right decision for your needs.
[cc_author style="bumber-b" author="gia"]
image courtesy of iStockPhoto.com