All indicators point to increased health in the housing market. Florida, overall, has seen close to a 20% increase in single-family homes over the same period last year. Palm Beach County (PBC) has likewise seen almost a 15% increase. In May, prices improved and inventory declined, resulting in a market that is tipping in favor of sellers. As sellers fully understand the impact of scarcity on prices, new listings may grow as 2013 draws to a close.
For those needing the statistical details, please listen to Dr. John Tuccillo, Florida Realtor® Chief Econ0mist, views on the latest market results.
As additional proof that the Palm Beach County market is moving in a positive direct, the following graphs show several key indicators for PBC:
- The first graph shows Closed Sales trending in an upward direction…
- the second graph shows a distinct increase in the median sales price since January 2012…
- and the last graph shows a dramatic decrease in inventory, especially over the last seven months.
Additional support to the market improvement has been the historical low mortgage interest rates. Although the 30-year average fixed mortgage rate has been increasing over the past several weeks, it still remains below 4%, ending last week at 3.93%, down slightly from 3.98% the previous week.
Concern that the Fed will wind down its bond purchases has pushed mortgage rates higher in recent weeks. Mortgage rates are still low by historical standards, helping sustain the housing recovery that began last year. But a spike in long-term interest rates could drive them higher quickly.
The Fed has been buying $85 billion worth of Treasury and mortgage bonds a month since late last year. The purchases pushed long-term interest rates to historic lows, making mortgages and other consumer and business loans cheaper.
In a way, this increase in rates may be a good thing. Buyers have been sitting on the sideline waiting for lower interest rates; now with the upward movement, more buyers are coming into the market in fear that they will miss the low rates. With interest rates increasing and the market swinging towards the Seller, buyers need to make a move before it is too late.
For more information on specific condominium sales activity contact Jeannie at 561-889-6734 or email her at [email protected].
Recipients of the 2012 Ritz Carlton Residences© Singer Island Power Broker Award
Director – Master Broker Forum (Jeannie)