Predictions for the housing market in Palm Beach County for 2015 resemble the trends we saw in 2014. In 2014’s market the year began with double-digit price surges and a lack of inventory but it quickly steadied and leveled out. The local housing market is kicking off the New Year with substantial price increases, scarce inventory levels and bidding battles between buyers much like last year’s trend. However, experts and analysts are expecting this boom to stabilize at some point mid-year. These experts are calling this year’s market trends “the first full year of normal following a decade of extremes.”
Don’t be confused by these “normal” predictions. Normal is a very positive description for this market. Bill Hardin, the director of the Hollo School of Real Estate at Florida International University sums up a “normal” market perfectly by saying, “Simply being a market where people can conduct transactions, make a living, sell and buy, is a very, very positive thing.”
THINGS TO EXPECT IN 2015’S MARKET
Different analysts and companies are releasing their estimations for price gains in Palm Beach County residential real estate and all have varied. Zillow released a report expecting 2.4% gains and Hardin expects a rise closer to 6%. What most of the experts can agree on is South Florida will be one of the leaders in the nation due to height of new home construction and an even higher demand for more new homes. Consumers have been gobbling up new homes and homes available for sale while developers are depleting reserves of developable land. “Palm Beach, Broward and Miami-Dade counties had three consecutive months of the nation’s highest price gains beginning in August,” according to Standard & Poor’s and Chase-Schiller Index.
For first time home buyers, the year’s trends are looking hopeful as low interest rates are expected to hover around an acceptable range as well as less room for investors to snag homes at uber low prices. Another positive note from the price gain for homeowners is greater equity, thusly putting them in a better position to sell.