Reports show that the rise in the prices of houses made close to a hundred thousand Palm Beach home owners rich in 2016’s third quarter, in terms of equity.
According to a vice president of ATTOM, Daren Blomquist, the tricounty region realized an annual increase of about 10% in the prices of houses during the third quarter. He also mentioned that consecutively, that is the 19th quarter that the prices of homes have increased on a yearly basis .
“The prices of Home are on the rise, yet people aren’t moving up (to higher pieced homes) as they used to during the boom.” He pointed out.
I’ve observed that there is a careful attitude that young professionals exhibit so as not to get themselves overextended, partly because of the struggling that they witnessed their parent and grandparents go through when the Palm Beach real estate market collapsed.
In 2016’s third quarter, about 246,731 of the Palm Beach home owners were in debt at least 25% more than the value of their properties. That’s low from the way it was a year earlier of about 322,701.
In spite of the decline, the Palm Beach still has enough room for improvement.
Experts say that the Palm Beach real estate market has the potential to start 2017 with a lot of confident buyers who are up for spending from the all-time highs of the stock market.
In Jim Flood’s words (a Supreme Lending’s regional manager), this month, people will see the best 401(k) statements that they have ever seen. That’s a huge thing.
Increasing interest rates may have to dampen demand, eventually, but there’s no anticipation of a major buying pullback by market observers.
Here are some more predictions for the Palm Beach real estate market in 2017:
According to realtors, and analysts, a lot of middle-income house owners will have the worth of their property go high, though at a slow pace. While a lot of people want to purchase, they’re finding it hard to get suitable houses that cost about $500,000 and below. The shortage will significantly cause the low and middle end values of the market to continue climbing higher.
It’s basically demand and supply. There’s a rising demand and no new way to bring about an increase in supply. That causes prices to rise all the time, whether you’re looking at real estate or candy.
There should be modest gains for consumers in 2017.
There could be price corrections for the luxury sector. In May, a realtor in Fort Lauderdale, got a
listing for a two-bedroom condo with a direct oceanfront view in Fort Lauderdale for $1.25 million
The owner had recently authorized a price cut which was the fifth in seven months. At the moment, the home is up for sale, for $899,000.
Nearly all of the units in that condominium that are for sale have had reduced price, and they are about 20.
The market for luxury condos is filled up. With all the new buildings being constructed, people desire the most attractive ones, so those who sell luxury properties are going to have to be ready to bring down their prices drastically.
There won’t be foreign buyer’s influence anymore. The fact that Foreign buyers were looking for bargains is what caused the rebound of the condos of South Florida in the past several years. But now, the dollar regaining its strength is causing less attractiveness to investing in the United States for foreign buyer. The reduction in pace among foreign investors started in 2016 and it will most likely be more severe in 2017.
The affordability of housing may be affected by higher prices of energy. Florida is set to increase electric rates this month. Meanwhile, the price of gas has started going up again. If the hike in the prices og gas stays this way for long enough, the development of the Palm Beach real estate could be affected, which will increase the prices and demands for houses near employment centers and downtown.