West Palm Beach is a hot market with record-breaking sales prices in early 2022 and surging home prices despite higher interest rates. Any Palm Beach Gardens real estate agent will tell you that this corner of South Florida remains desirable and exclusive with buyers competing over the best priced homes.
If you’re wondering whether this is a good time to buy in West Palm Beach or the surrounding communities, here’s what you need to know about the local housing market.
A hot real estate market
According to a real estate market report by ZeroDown, the West Palm Beach housing market broke an all-time record as recently as January 2022 when 70% of all homes for sale that month spurring a bidding war among buyers. And while bidding wars are nothing new in the market, the 70% rate is nine percentage points higher than January 2021.
Local real estate experts believe that bidding wars likely contributed to an increase in the average purchase loan size of conventional loans, which reached a new height of $453,000 in February of this year. Sellers have also capitalized on low inventory levels and high demand to set higher prices for existing homes.
While this is great news for sellers, it indicates that potential homebuyers face stiff competition for the most desirable properties in town.
Bidding wars present a challenge for homebuyers dealing with record-high home prices compounded by record-low levels of housing inventory as well as the possibility of rising interest rates over the last few months.
But this shouldn’t discourage buyers looking for a real estate bargain as well as those who are serious about buying a vacation or permanent home in West Palm Beach. Anyone intent on entering the market this year will benefit from thorough preparation, professional representation, and a willingness to negotiate with sellers.
Is this a good time to buy in West Palm Beach?
West Palm Beach is a seller’s market, which means that sellers generally have the advantage in the sales process due to high demand and limited inventory. If you want to buy in some of the more exclusive neighborhoods in the area, such as Ibis Club West Palm Beach, you need to come prepared. It’s a good time to buy for anyone who’s willing to put in a strong effort and make concessions to sellers with the most coveted listings in town.
Buyers don’t always have to time their home purchase with market conditions. Keep in mind that South Florida is a dynamic housing market in which inventory, real estate trends, home prices, and mortgage rates vary from month to month and city to city. Buyers must be flexible and well-prepared. Working with the right real estate agent will help you anticipate possible outcomes so that you can plan accordingly.
Work with the Telchin Group today
Ready to make waves in West Palm Beach or any of the surrounding communities? You can call The Telchin Group, LLC at 561-301-0249. You can also message them here. The team is helmed by Eric Telchin, a top broker specializing in Ibis and other upscale communities in the area.