Short Take on 2nd Quarter 2014 Palm Beach County Housing

The Numbers for February are in (per RAPB) and the South Palm Beach County Real Estate Market continues to stay hot. Single-Family home sales were up 15.7% compared to last year. Townhomes/Condos are up a staggering 25.4%. The only chink is that total sales of townhomes/condos were down 15.6%. Much of this is due to investor purchases. One investor I talked to said they were still purchasing but had cooled because it’s harder to make the 8% return on rents that they desire to make. There are a number of rental projects in the Jupiter-Juno-Palm Beach Gardens area coming in the next year, thus I see a cooling of rental prices which should trigger a slowdown of the appreciating prices in this category. However, there is very little new construction on the horizon for properties for sale. This means that resales are the only option for a Buyer. Therefore, prices should continue to rise without an increase in supply for our growing market.