Santa Ynez Valley News
Demand for Palm Beach homes and rental units way up this fall6 Dec 2012 9:28 AM
Although Palm Beach is often considered one of the most desirable places to live in its region, this appears to be especially true now. The rebounding national housing market and the continued appeal of this warm-weather, culture-filled area have helped make it one of the most in-demand metro areas in the country.
According to a recent report from the Realtors Association of the Palm Beaches, the sale of Palm Beach homes has increased dramatically over the past year. Single-family home sales were up 22 percent in October from their levels in October 2011, and also increased by 12 percent from September 2012. Unsurprisingly, median sale price has similarly spiked, as demand is beginning to outpace supply. According to the source, the median cost for a home in the area leapt nearly a quarter between last October and this one.
As a result, the supply of for-sale homes across all spectrums, including high-end homes, is down considerably. Between October 2011 and October 2012, inventory dropped 55 percent, the source reports.
The demand for rental units has also spiked during this time period, likely spurred by the region's improving economy. In West Palm Beach, for example, rental demand climbed 12 percent between August 2011 and August 2012, according to data from real estate analytics firm CoreLogic. This leap helped move the city onto the firm's list of the country's most highly demanded rental markets.
With demand for both rental units and homes rising, it is clear that the features that make Palm Beach such a desirable place to live are in full effect. The source reports that diminishing inventories and rising prices have raised property values throughout the region, which has helped Palm Beach return to the strong position it held before the financial downturn of the late 2000s and attract new residents.