PALM BEACH GARDENS HOME PRICES REDUCED TO 2004 LEVELS ... STILL A BUYERS' MARKET

If you bought a single family home in Palm Beach Gardens, West Palm Beach or throughout Palm Beach County in October 2004, the market value of your home has run up and back down again.  There is virtually no appreciation in your home today.  In fact, if you are trying to sell now it may cost you money considering your closing costs.

The median sales prices of a single family home in Palm Beach County for the first quarter of 2008 is $334,500.  That is slightly below the $335,100 median sales price of a Palm Beach County single family home in October 2004, according to statistics released by the Florida Association of Realtors.   And the number of home sales in Palm Beach County is also down, about 11 percent in first quarter 2008 compared with first quarter 2007.

If you bought a home in Palm Beach County in June, 2006 and are trying to sell today, median home prices are down a whopping 17.5 percent -- $405,500 in June 2006 compared with $334,500 today. It would be difficult, if not impossible to get the seller's anticipated value from that home today. 

Some examples:   a client of ours bought a home in a country club community for $515,000 in 2005.  That home is now priced for sale at $439,000 and is still slightly above market value.  Another bought a home in 2005 for $475,000. That house is now priced at $365,000 and is just below market value.

There are several factors contributing to these housing blues.  First and foremost there are more homes coming on the market every day than are going off the market.  This produces tremendous competition among home sellers and will continue to drive prices down.  Why would a buyer pay $400,000 for a home whose market value is really $350,000 when the buyer finds an identical home down the street at a list price of $335,000?  Yet the owner of the home for sale at $400,000 continues to keep his home on the market and somehow believes a buyer will pay $400,000 for the property.  We need to get these homes off the market.

Mortgage money is tighter now than we have seen for many years.  There are virtually no loans at 100 percent loan to value and interest only loans hardly exist.  Banks are insisting upon 20 percent down payment and outstanding credit scores from borrowers.  They are truly feeling the pinch of the subprime mortgage fiasco.  Contracts are falling apart over financing issues.

Finally, buyers are becoming highly selective in their purchases.  They want a "deal" and are unlikely to move forward with an offer unless they truly believe they are getting good value for their money. Many are waiting for the market to bottom before they move forward, but we truly do not believe the market in Palm Beach County will bottom during the off-season. .  For buyers there are some very good deals out there, but you have to look for them and know the market.

The Weiss-Clawson Team studies the local housing market and researches prices in many communities throughout Palm Beach Gardens, West Palm Beach and all of Palm Beach County.  If you are looking to sell your home, we utilize up-to-date and creative marketing techniques for our sellers. We will help you price your home to attract buyers and we will work with you to stage your home so it is attractive to those viewing the property.

If you are looking to buy a home in Palm Beach Gardens, West Palm Beach or throughout Palm Beach County, The Weiss-Clawson Team includes an Accredited Buyer Representative (ABR) who will show you all properties meeting your criteria throughout the areas you selected.  In fact, you can start the search in the privacy of your home through our website.  We will show you the homes you select, and we will do an analysis of sales in the community you chose to ensure a value based offering price. 

We deeply value our clients and hope that you will contact us for your real estate needs. 

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