Palm Beach Real Estate Market on the Rise With Low Inventory
It would seem that home prices are up in Palm Beach, according to reports. Both single-family homes and condos continue to soar in price throughout the county. Experts point to wealthy Americans and immigrants to explain the price hike.
A recently released report from the Leslie Evans and Associates law firm, located in Palm Beach, details the areas quarterly sales. The report showed that median price for a single-family home reached $3.475 million in the second quarter alone, which is up by 13.4 percent from a year earlier.
For condominiums, the median price came out to $665,000 in the second quarter, jumping up a stunning 23.1 percent from 12 months prior.
In contrast with the housing market, Palm Beach stocks haven’t shown much of an increase at all. The S&P 500 Index jumped a measly 5.2 percent in 12 months, and took an 11 percent plunge in August. Interestingly, this drop in stocks is expected to draw new interest to Palm Beach real estate.
Experts agree that people simply have no place as attractive to invest their money than Palm Beach, and the numbers support this claim. With homes offering more stability than stocks, it’s easy to see the attraction for wealthy investors. Fear isn’t such a factor with tangible properties, making them of more interest to lucrative individuals.
All the while, single-family home sales are in fact in remission as are the amount of them available for purchase. The second-quarter sales of single-family homes added to just 50, decreasing by 21.9 percent from 64 in the previous year. However, condominiums have experienced a 13.8 percent increase in sales.
The theory behind the decrease in inventory circles on the investment potential offered by homes in Palm Beach. Property owners obviously don’t want to sell now because they believe the market will continue to add value to their investment. The same can be said for condos.
With 80 to 85 percent of all home sales in Palm Beach being in cash, it is safe to say that interest-rate increases by the Fed will have little to any impact on single-home or condo investments. Putting it altogether and it looks like investors may have to pay a bit more to secure their ideal investment in Palm Beach.
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