The Palm Beach County real estate market continued its rebound in 2015. Overall, the United States experienced a drop in sales towards the end of 2015, but Palm Beach, Broward and Miami-Dade Counties continued to see growth. It may continue to stay a seller’s market in the near future, but there is still uncertainty as we enter 2016.
The real estate market in South Florida for 2015 ended with some promising numbers. The total value of all residential sales grew by $61.4 billion in 2015. The cumulative value of all homes, townhouses, and condos in the tri-county area reached $773 billion, which is a 9 percent increase from 2014. South Florida has seen a market upward trend since 2011, when the total value of cumulative residential properties was $523 billion.
According to The National Association of Realtors, Palm Beach County posted far more robust numbers than the rest of the nation in the month of November, which is the most recent data available. Single family homes sales saw a 7.4 percent increase to a total of 1,186 transactions. This was followed by a median sale price increase of 11.3 percent, with an average price of $295,000.
November also saw a drop in median days homes were on the market, which decreased by 40.3 percent to 37 days. Consequently, as inventory levels dropped to 3.6 percent, buyers found themselves scrambling. For condos and townhouses, the median days on market also saw a drop of 33.3 percent to an average of 36 days on the market.
With inventory continuing to dry up, prices in Palm Beach, Broward, and Miami-Dade counties are expected to rise in 2016, but many do not anticipate it will remain a seller’s market. Usually, a shortage of properties means the market will favor the sellers, but because of the housing crash in 2008, buyers have become more discriminating.
Home prices in Florida are set to rise in 2016, due to a combination of factors: increased demand from growth in the area’s population, a shortage of properties, and the rising cost of construction. The rise of construction costs is a direct result of escalating land and labor costs. The lack of skilled workers has also impacted the construction industry, and has left many companies unable to fill their ranks at a number of different levels.
The South Florida real estate market will face some uncertainty heading into 2016. Higher interest rates, a shaky global economy, and the hesitancy of many companies to invest during a presidential election year, will have an impact on the economy, but it is unlikely any of these will have any serious impact on the overall housing market.
If you are interested in learning more about Palm Beach Island real estate market, Jack Elkins would love to meet. Jack is the resident expert on the Palm Beach real estate market, and is armed with the knowledge and expertise to guide you through all of your real estate transactions.