Palm Beach County Florida, home to West Palm Beach and Boca Raton, saw a third straight year of increased home sales in 2011 with a 24 percent hike in purchases. The area is seeing an increase in property investment purchases, a rise in median home prices, and new home construction that is giving consumers the confidence they need to enter the real estate market.
In Palm Beach County, real estate investment purchases were up in 2011 in part to a very strong rental market. With more former homeowners becoming renters, Florida realestate investors are buying properties that can easily be rented such as condos. In 2011 the region saw condo prices drop 14 percent to $77,500. A 30 percent rise of condo sales in 2011 can be attributed to investor purchases.
Throughout 2011 the median home price in the area rose from $179,200 to $186,000. In fact, Palm Beach and Broward counties were the only counties in the state of Florida that reported an increase in median home prices. Prices are expected to decrease in 2012 before hitting bottom in early 2013. This is due to an increase of foreclosed properties being released for sale in the coming year.
New home construction in Palm Beach County was up throughout 2011 around 17 percent from 2010. With new construction trending upwards builders are feeling a sense of confidence that they have not seen since 2007. In Palm Beach County this sense of confidence is shown through two new housing developments that have opened in the area in the past month, Castellina and The Preserve at Bay Hill Estates. Builders are currently lowering new home prices to compete with bargain foreclosures and short sales, so there are many great new homes for sale at great prices.
The year 2012 should be a great year for the Palm Beach County real estate market with increased investment sales, and new construction although median home prices are expected to drop significantly.