Florida Mortgage Blog

Broward County selling homes much faster and at higher prices than Palm beach County

May 2nd, 2011 3:37 PM by Preston Ware

Home prices in Broward and Palm Beach counties headed in opposite directions during the first three months of 2011, and the difference can best be explained by the numbers of homes for sale.

Broward's median price for existing homes rose more than 6 percent in the first quarter, according to the Florida Realtors. In February, the median of $167,000 skyrocketed 22 percent from a year ago — the county's largest increase in any month since December 2005.

By contrast, Palm Beach County's median price slipped in the first quarter by more than 3 percent. The March median plunged 24 percent from a year earlier, the biggest drop in Florida.

Broward's prices are stronger, at least for now, because its supply of homes is smaller, real estate agents say.

When inventory levels fall, buyers compete for fewer properties, which can lead to bidding wars and price increases.

A separate analysis of all property types by Move Inc. showed that Broward's inventory level dropped by 12.45 percent in February from January, the largest decline in the nation.

Broward's supply of single-family homes stands at 6.7 months, meaning it would take that long to sell all the homes if no more came on the market, Story said.

Not only did Palm Beach County's inventory remain flat during the quarter, the county also had more units for sale than Broward — nearly 11,000.

Some real estate agents blame Palm Beach County's recent price declines on a larger number of sales involving bargain-priced homes.

Meanwhile, the president of the Realtors Association of the Palm Beaches said he doesn't put much stock in the median price statistic, saying it's a misleading measure.

Bill Richardson said the Florida Realtors is in the beginning stages of developing a price index that measures the value of the same home over time — similar to the Standard & Poor's/Case-Shiller Home Price Index.

To get a good local sense of properties in our area go to http://www.realestateforsalefl.com  many of these properties listed are community properties in which realtors allow others to share their listings in hopes of getting it sold quicker. Palm beach has a wealth of shared listings where in Broward they are few and far between. This is another example that the homes are selling like hot cakes down there!
Posted in:General
Posted by Preston Ware on May 2nd, 2011 3:37 PM


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