As the home of a vibrant downtown area, Palm Beach International Airport, and luxury resorts like Eau Palm Beach Resort & Spa, West Palm Beach has long been a top destination for travellers looking to soak up the sun while they shop and dine. However, many people are now making the city their permanent residence.
With its low cost of living, favorable weather conditions, and real estate market predictions for 2022 (which we’ll get into in more detail later), west palm beach real estate market presents multiple opportunities for buyers to find their dream homes. Consider the following advice on the city’s real estate market at the moment:
Zillow Estimates West Palm Beach’s Home Value to Continue to Rise
Zillow estimates West Palm Beach’s home value to continue to rise. According to their data, the average home value in West Palm Beach will be $308,000 by 2022. This is an increase of 4% from 2021 ($301,000). Zillow also projects that the median home value for West Palm Beach will be $239,000 in 2022—a 1% increase from 2021 ($237,500).
Sellers are expected to Gain the Upper Hand in 2022
The year 2022 will see a shift in real estate market trends. Sellers are expected to gain the upper hand over buyers as competition between buyers’ heats up and demand homes increases.
Sellers must be patient, flexible, and willing to negotiate if they want their property to sell. They’ll also need to wait for their properties to sell because there aren’t many homes for sale right now – especially at prices that meet or beat what sellers paid when they bought their property (or close enough).
Millennials and Seniors See a Move to Florida as a Good Investment
But why is West Palm Beach attracting so many people? Sure, the weather and proximity to nature are attractive features, but there’s more to it. The area has a lot to offer Millennials and Retirees alike. This includes:
- The area’s high employment rate (the 15th highest in the nation).
- Its low cost of living compared to other coastal areas like New York City or Los Angeles.
- A population of 673,000 people—more than 2/3rds of whom are between 18-64 years old—which means a generous supply of potential customers for your business.
Interest Rates are predicted to stay Low through 2022
Interest rates are predicted to stay low through 2021, which is good news for buyers but bad news for sellers. If you’re an investor interested in buying property in West Palm Beach, you can likely find a deal on a house or condo.
You’ll also be able to refinance your loan at a lower rate if you choose.
On the other hand, if you’re thinking about selling your home within the next few years and want to maximize your profit (or at least break even), interest rates won’t help much: They’ll be staying low regardless of when you sell.
There Isn’t Much New Construction Happening – Yet
“West Palm Beach has a lot of construction going on right now.”
“We currently have more than 100 projects underway in the city, which continues to grow each year.”
“These new developments are providing affordable housing options throughout our community.”
“In 2022, we plan on updating our zoning code with new incentives to encourage even more construction and affordable housing options for residents of all ages.”
“A city is defined not by its buildings, but by the people who live within it.”
– Mayor of West Palm Beach, Robert Levy.
Now is a great time to invest in the West Palm Beach Real Estate Market.
Prices are climbing. The median price of homes sold in West Palm Beach has risen 28% since 2016, and sales volume has increased by 33%.
Interest rates are low. Mortgage interest rates have stabilized at 4%, which is down by historical standards but still much higher than the record lows we saw during the 2008 recession (3%). You can expect them to rise slightly over the next few years, but not enough that it should prevent you from buying now if you can afford it.
There’s a shortage of houses for sale. Inventory levels are currently running at their lowest level since 2005; this means fewer homes on the market, which drives up prices and competition among buyers—and makes sellers more likely to negotiate with buyers who want to purchase their property! In fact, in 2018, there was only about 2 months’ worth of inventory available at any given time throughout West Palm Beach County—that’s less than half as many new listings as there were just five years ago!
The Takeaway
If you’re considering moving to the West Palm Beach area, now is a great time to do it. While that might be somewhat counterintuitive in the wake of the COVID-19 pandemic, it’s essential to see how trends unfold.
Prices are on track to go up, home values will continue climbing, and there won’t be many new homes being built anytime soon – meaning there could be a shortage of homes for sale as demand continues to grow.
The 2022 forecast indicates strong demand from Millennials and seniors who want an affordable place with good weather where they can retire or start families without sacrificing the quality of life or access to cultural amenities.
It’s also worth noting that interest rates are expected to remain low through 2022, so buyers should not expect any significant increases within this period.
