Low Prices and Interest Rates Encourage Palm Beach Real Estate Buyers
When it comes to real estate, there is a general consensus that prices and interest rates are about as low as they’re going to get. This has many buyers emerging from the shadows of an otherwise dark period in U.S. real estate history, hoping to emerge victoriously as new Palm Beach County Florida home owners.
Agents are eagerly scheduling showings, and there has been a large uptick in buyer traffic and closed sales. Some of the traffic is from investors who are eager to spend their cash on well-priced homes and either flip them for a profit or use them as rentals to ensure a consistent stream of rental revenue. Low inventory numbers coupled with high demand is creating a challenging real estate landscape in South Florida. Many buyers who rely on traditional means of financing are finding it hard to compete with all-cash buyers. It’s like they mesmerize sellers with a stack of cash, and those who need a mortgage are left in the dust.
Many sellers are being approached with multiple offers, some that even exceed their sales price. It’s becoming so competitive of a market that some sellers are realizing even greater profits with little effort. As builders gain renewed confidence in the market and start to build again, more homes will come to the market, helping to shore up the lack of supply. It could be months before any of these homes are ready for sale, though applications for building permits having increased in South Florida. Beginning construction of U.S. homes rose more than was forecast in June to the fastest rate in nearly four years, which indicates that the residential real estate market could be poised for improvement.
According to Brian Jones, a senior U.S. economist for Societe Generale SA in New York, “The housing market is starting to show signs of life. Americans may still be hesitant to purchase property because you don’t want to buy an asset whose price may potentially fall.”
For buyers who are focused on a lower price range, it can be tough to secure financing. One suggestion is to get pre-approved by a lender before you start your home search. It’s worthless to fall in love with a property only to find out that you’re competing with numerous all-cash buyers and that you can’t even get financed. Sitting down with a mortgage specialist to discuss the options that fit your financial situation is your best course of action prior to even working with a REALTOR®.
We are a local team of real estate agents who have helped countless buyers find the Palm Beach home of their dreams! Whether you’re interested in learning more about available Palm Beach condos, single-family homes or luxury estates in Palm Beach, please contact the luxury properties team at Palm Beach Premier Real Estate. We would love to help you with your unique real estate needs.
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