There is not just good news for those interested in Palm Beach County real estate, there is GREAT news. Over the last year, there has been more than a 60 percent increase on home construction, which is the highest number since early 2007. However, before one gets out the champagne, they should know that according to Chief Economist of MetroStudy Brad Hunter, this figure is still a mere third of the activity that is considered “normal,” and way lower than when Palm Beach County was really on a high toward the end of 2004 which saw the beginning of construction of 2,754 new homes. Still, major escalation as this is (as compared to last year) cannot be discounted and really is GREAT news especially since it seems like the trend will continue given that demand for new homes is increasing while supplies decrease. There was also an increase of 46 percent of people moving into new homes in Palm Beach County, during this year’s third quarter as compared to last year’s.
The highest demand for property throughout the state of Florida is Southeast Florida which has encountered a true recovery. Indeed, home values in the region increased close to 8 percent in the third quarter of 2012, compared to the figure for the same time last year. It is anticipated that this will continue through 2013. It hasn’t always been like that since in late 2011, South Florida’s figures were really poor, with nearly 40 percent of homes there selling for a loss in September.
While there is some basic good news in the American housing market, many local markets are still struggling. As well, while new foreclosure filings decreased 44 percent during the first three quarters of 2012 compared to 2008, Palm Beach County still fared worse in four categories: foreclosure inventory; sales prices; share of distressed sales and unemployment.