During the peak years of 2005, condo values were well over $250 per sq/ft. and then bottomed out in 2011 at a mere $109 per sq/ft. The first 3 quarters of 2012 we have seen prices rebound over 11% from last year. Why has this number increased so dramatically and is this a good thing?
I would argue that this is positive a couple of reasons.
People that had bought since 2009 may be a little more optimistic about a housing rebound and starting to see that soon they will be realizing equity.
For those that bought in 2011, they have already experienced this.
We just saw the biggest increase in new home building jump 15% in September, the highest level in 4 years. http://www.floridarealtors.org/
With prices rising, we are starting to see what is one of the biggest driving forces in our economy, new home building. Developers are getting comfortable again with housing demand, and pricing that will allow for a viable, and profitable market.
The real positive with affordable home prices here has been a big influx of people that have moved into the city. With over 5000 new residents now living in the downtown part or full time, we have also seen businesses beginning to thrive all year round.
The rise and fall of condo prices in the downtown ultimately has given people the opportunity to buy at reduced prices over the last couple of years. While prices are affordable, inventory is not nearly as readily available at these lower prices. The inventory on short sales and foreclosures has been reduced significantly, and as a result prices are going back up. While there are still opportunities, they are becoming fewer and farther between.
If you haven't visited West Palm Beach recently, you should! Prices have been reboundingand developers have eyed up several primary spots in the downtown to begin the next wave of development.
It is a fantastic time to buy, and live in a city part of full time with an array of healthy lifestyle options, activities, art & culture, and night life.