Palm Beach County Home Sales Increase 33%

Well it seems like the good news just keeps on coming! Tempting low mortgage rates and affordable home prices have stirred new Buyers into a frenzy in a once stagnant market. The Florida Association of Realtors (FAR) released data on March 23rd, 2009 that Palm Beach County sales rose 33 percent for the month of February. Palm Beach County had 531 home sales compared to 401 from the previous year. The increased sales activity for homes and condominiums are positively making a dent in South Florida’s bloated inventory.

What has caused such a stir in our local market? The median home price fell 34 percent in Palm Beach County from a year ago. Palm Beach County had increase home sales in seven of the past eight months as buyers have taken full advantage of unprecedented bargain prices on distressed properties. The area’s housing slump continues into our fourth year, as an increasing number of short sales and foreclosures are expected to flood the market further. This “toxic inventory” is expected decline home prices even further through 2009 and most likely into 2010.

Existing condominium sales also saw a positive upswing of 10 percent from a year ago. However, the medium condo price fell 36 percent. Currently Palm Beach County has 27,907 active homes, town homes and condos for sale, down 6 percent since the end of November.

Although sellers are not happy to hear the news that their properties continue to lose value. Buyers sitting on the sidelines say “this is the time to buy”. We have a noticed significant amount of local and out-of-town buyers express genuine interest in getting back into the market and actively search for property. Most of our clients are cash buyers and have commented they are concerned with the volatility of the stock market and feel more comfortable investing their money into tangible assets they can enjoy!