Palm Beach Housing Rebound Boosts Home Values
The current Palm Beach housing market conditions are making a strong comeback, and the housing crisis is becoming a distant memory as home values climb and consumer confidence contributes to a resurgence in strong sales in all sectors of South Florida real estate. According to the Realtors Association of the Palm Beaches, Palm Beach County's median home price increased to $219,500, up 20% year-over-year. Home sales are following a similar path, with the number of Palm Beach real estate transactions in the past year up 15% to 1,104 home sales.
Real estate professionals in South Florida are reporting an upswing in inquiries from potential buyers, especially as prices continue to rise. Buyers are eager to place bids on the last available rock-bottom prices before home values climb even higher in the upcoming year.
"After a sluggish 2011, the housing market really turned a corner in 2012, as historic affordability and sustained investor interest helped keep demand at a boil," said Zillow Chief Economist Stan Humphries in a press release. Foreign investors helped clear out the number of foreclosed properties on the market in Palm Beach, purchasing distressed properties to use as rental properties while demand for Palm Beach real estate is on the rise. Now, the number of foreclosures on the market has significantly dwindled, which accounts for some of the increase in median home values throughout the county.
Home values in Pam Beach County skyrocketed in 2012; Zillow.com reported that values in Palm Beach, Broward and Miami-Dade counties are likely to have increased by a total of $47.5 billion year-over-year by the close of the year. This is the fifth largest increase in home value out of 177 metropolitan areas included in the Zillow.com report. Los Angeles topped the list of cities with increasing home values with the largest increase of $122.1 billion; however, real estate analysts believe that the Palm Beach County housing market is poised to improve even further in 2013.
Employment is up throughout the region, and more families seeking single-family homes are moving to the area for employment opportunities. As the tourism industry recovers, there is likely to be an upswing in people looking for vacation homes to purchase and then use as rentals when they're unoccupied throughout the year. Developers are also making an impact on the local housing market by adding new mixed-use buildings and single-family homes to areas that were neglected during the housing crisis. By putting new resources into areas of South Florida that were hardest hit by the housing crisis, home values of surrounding real estate will see a boost from improved neighborhood amenities and a resurgence of business activity.
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