Palm Beach County, Treasure Coast housing prices soar

When you look back on the year 2020, you’ll likely, remember COVID-19, widespread social unrest, and a contentious presidential election.

But overshadowed by all that gloom, the real estate market did something it hasn’t done in close to 15 years.

“It seems like a very big number, and it usually takes people’s breath away,” Florida Atlantic University Professor Ken Johnson said.

Johnson is talking about how much more your home is now worth.

“If I were seriously thinking about selling, today would be a good time to sell,” he said.

Using data from private and public sources, Johnson and his colleagues publish the BH&J index. It tracks conditions to help people decide to buy or rent a home. It also records the average price of homes in certain areas. It shows West Palm Beach is 17 percent over its normal pricing trend, and in Port St. Lucie, home values are 20 percent higher than normal.

Johnson says the increases are short of the 2006 spike that saw prices climb by 60 percent, but this spike is built on strong economic factors.

“We’re looking at a tropical storm today, versus a Category 5 hurricane back in 2006,” Johnson said in terms of home values.

Real estate agent Alex Kaplan is with Douglas Elliman. Like most agencies, it first felt the pandemic’s impact in mid-march when the number of homes for sale dropped dramatically.

“Everyone feared for the worse. I was certainly concerned that things would be challenging in the future,” Kaplan said.

What no one knew then is that interest rates on home loans would continue to drop while at the same time, people started leaving big cities in the northeast in droves. Many set their sights on South Florida and the Treasure Coast to relocate. Those factors, along with a shortage of family homes on the market, have sent property values soaring. Because of the competitive market, selling may be the easy part. Kaplan recommends first deciding on where you’re going to relocate first.

Since finding the right home can be challenging, buyers need to move fast when they find something they like.

Kaplan recommends getting prequalified for a loan to help speed up the process. As for sellers, Kaplan says to make sure you’re working with a reputable licensed realtor who knows the market. It also helps to make sure your home is decluttered and ready for a quick sale. In some cases, the right home can go in just days and even hours.

 

WEST PALM BEACH, Fla. (CBS12)