We are seeing a dramatic change in the South Florida real estate market of late. Prices in Palm Beach County have RISEN two months in a row – that's right, risen. Of the last five purchase deals Ocean Trust has closed, four of them have been cash contracts, and three of those were for $1MM or more! On the finance side, appraised values have been coming in OVER contract price.
In the broader market, we are seeing volatility and upheaval. The US dollar is weak against the Canadian dollar and the Euro. More and more lenders are cooperating with realtors in negotiating short sales. The stock market is going through very turbulent times.
What does all this mean? It may be too soon to say that the downturn is over and that the real estate market will return to a more normal market. But these are significant events and, I believe, reasons for optimism. In SoFl, what I think that we are seeing is the early signs that the "smart money" is coming back. With sellers now pricing property realistically and banks getting ready to unload their REO, combined with still historically low interest rates, this year we will see serious buyers taking advantage of opportunities that may never be seen again.
JH
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