Introduction

2009-04-19T13:54:00.006-04:00

Welcome to my blog! Here you will learn about the Palm Beach County, Florida residential real estate market. More specifically I will share market data and my insights on:

occupancy rates and market trends for single family homes, townhomes and condos
home resale values and marketing suggestions
real estate investment advice based on local and national economic forecasts

Let's begin with market trends for single family homes over the past two years and then we'll interpret these statistics!

Median Sales Price has fallen 40% in two years:
$365,000 March 2007
$220,000 March 2009

Number of properties for sale has fallen 17% in this time as well:

15,278 March 2007
12,724 March 2009

The reduction in the amount of homes available for sale is promising, however the number of new listings going on the market each month is still three times higher than the number of sales. What does this mean for home resale values? Values will likely continue falling as supply exceeds demand.

If you are trying to sell your home,the only marketing suggestion I have for you is simply this: Buyers are taking the best deals. Price the property to compete favorably against comparable units.

So what investment advice am I giving? Begin buying sound investments now while noone else is doing so. Since getting into Palm Beach real estate in 1985, I have never seen a better buyer's market than right now.

What's a 'sound investment'? A property that cash flows today, and will pay itself off in 15-30 years. Are they out there? You bet! You just need to know where to look, and how to structure the offer.

Why is Palm Beach real estate a good investment now? The market is almost done correcting, and the stage is set for our values to soar in the next 5-15 years. Note I did not say values would increase in the next 5 years; you must buy now for the long term, and only buy properties that will cash flow TODAY. If the property pays for itself, and you're investment goals are for the long term, it makes good sense to buy now while the market is in your favor.

Why will Palm Beach County real estate values increase? Florida home values are only now beginning to reflect how desirable it is to live in the state. California home prices rose significantly during the past 40 years. California housing markets reflect a strong demand to live in the urban tropics. Florida too offers this urban tropic lifestyle, and at a fraction of the cost of California living.

And what about Baby Boomers? They are in their peak earning years and have been active in purchasing second homes, which many consider their future retirement homes. The baby boomer impact on the Florida housing market will continue for at least another decade, fueling the coming demand for housing in upscale tropical locales like ours.

Florida is also a prime retirement destination for an ever increasing group of wealthy foreigners, who are purchasing Florida real estate rapidly. A relatively weak US dollar makes our real estate a prime investment for those who would rather enjoy their winters here than in their cold and cloudy homeland.

And finally, with the intangible stock market and world financial markets yielding little to no profits, investors are looking for tangible places to invest! Positive cash flow real estate investments provide a safe place to invest for the long term.

If you're considering buying RIGHT, or want to receive free monthly real estate market data, contact me at broker@624home.com

624Home.com

Introduction