Housing Prices Rise as Demand Increases, Supply Decreases

By Chappy Adams

11/19/2004

The first 101/2 months of this year have seen rising real estate values in Palm Beach County. One of the factors driving this appreciation is the lack of properties on the market. On the resale market in October 2003, there were 6,609 homes and condos for sale in the north half of the county (Boynton through Jupiter). This October, 4,987 are available - a 24.5 percent drop.

So with supply dwindling, there is pressure on prices to rise. So far this year, the resale market has seen 32 percent appreciation in most price ranges under $1 million, with slightly less appreciation for homes costing over $1 million.

That's the primary reason why new developments are selling out in record time.

One such project is The Villas at Emerald Dunes in West Palm Beach. These residences are priced from the $170,000s to the $300,000s.

The developers have so far release 57 of the 486 condominiums, and all were bought in one day. The grand opening is Saturday, Nov. 20.

The condo market has improved drastically in the past year, after years of little movement in values. Downtown West Palm Beach is bustling, with 3,000 new units planned -like The Whitney, next to CityPlace.

Another recent phenomenon is conversion - turning rental units into condos. This is another way developers address the lack of available properties.

One project about to convert is 101 Clematis, next to the library. These lofts are ideally located and provide great water views.

Many of these properties will be featured at the Florida Real Estate Showcase, set for Dec. 3-4 at the Palm Beach County convention Center.

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