Are you considering investing in the West Palm Beach real estate market or buying a home in this Miami-adjacent city? In either case, it's important to understand the current state of the housing market and its future prospects for investment or home-buying. In this article, we break down forecasts and the data that's been produced so far on the 2023 housing market into an easy, comprehensive read.
West Palm Beach housing market forecast 2023
Home values increasing moderately
Based on data from the National Association of Realtors
forecast for 2023, West Palm Beach home values will increase moderately and slowly. While factors like a housing shortage and inbound moves are at play and will be slowly driving housing prices up, they aren't too exaggerated.
Conversely, houses are moderately affordable in the West Palm Beach real estate market, indicating that housing prices may need to increase for the housing market to stay competitive but that nothing too drastic should happen to home values over the next year. Taken together, this data indicates that home buyers and homeowners can both expect to see a slow increase in home value over the course of 2023.
There are other factors that affect the net increase in West Palm Beach homes for sale. Hurricane season — and other unpredictable weather conditions — are a very real threat to homeowners and investors in West Palm Beach. However, the desirable seaside location of West Palm Beach, proximate to the beautiful scenery of Southeast Florida, adds value to a home in the state.
Lowering interest rates
Senior economist for the National Association of Realtors, Nadia Evangelou, says she expects interest rates to lower this year
and stabilize. As the housing market adjusts to post-inflation interest rates, many buyers have been in a holding pattern, waiting to see if interest rates will rise or fall again — and West Palm Beach is no exception.
With the stabilization of interest rates predicted in 2023, we're likely to see an increase in home buying, particularly among younger people waiting to get their feet wet in the housing market.
Investing indicators will favor landlords
Looking again at the data from the NAR 2023 forecast, we see that only 14% of renters in the West Palm Beach area can afford to buy a typical home, even though Palm Beach houses for sale are moderately affordable and there is a decent amount of people continuing to move to the area (53.3%). From the jump, the incongruence between renters who can afford homes and housing affordability indicates that a property in West Palm Beach would be a good investment.
Additionally, properties are predicted to slowly appreciate in value over the next year. While you won't be able to retire (most likely) solely on your rental property in 2023, it will continue to be a valuable long-term investment that's gaining value and earning money for you.
Net positive population growth in 2023
West Palm Beach has continued to experience slow population growth
in 2023. This is in line with its yearly population growth, which sits between 1 and 2 percent.
Palm Beach County housing trends
The Palm Beach County housing trends are comparable to the West Palm Beach housing trends, with a moderate increase in home value predicted as West Palm Beach homes for sale stay somewhat affordable. Job growth is low, projected at 5.2% for the county, while the number of people working from home is low as well, at 16.1 %, indicating a return to the office away from remote work. Meanwhile, the number of people moving into the area is expected to be moderate but not large, and housing shortages sit at 20%.
How Covid-19 affected the West Palm Beach Florida eal estate market
The pandemic caused housing shortages that the West Palm Beach area is continuing to experience and inflation that has affected the ability of Americans to afford houses. These are two issues that the West Palm Beach
area has felt the impacts of long after the spike in housing prices that hit in 2021.
Foreclosure statistics 2023
There have been 549 auctions as a result of foreclosure
since the start of 2023 in West Palm Beach. Even if this sounds high, note that these numbers are a significant drop from foreclosures at this time in 2022 — which could be signaling a housing market that is stabilizing.
Median home prices 2023
Real estate market: should you invest?
For potential investors, the plethora of neighborhoods in West Palm Beach can make it hard to decide where to buy — so we've laid out some of the most noteworthy options.
Nestled just a few minutes from the Square, with its vast shopping and dining opportunities, it's no surprise this neighborhood in West Palm Beach is so sought-after. It's also moments away from downtown attractions like the waterfront, and its home has unique Mission and Mediterranean Revival architecture.
Home to stunning Mediterranean Revival and Mission-style architecture, El Cid is renowned for its villas that sit on the Intracoastal Waterway. This high-end neighborhood is close to schools, restaurants, and everyday amenities.
Known to locals as SOSO or South of Southern, the Southend is known for its combination of diverse architectural styles and competitive prices. The neighborhood stretches from Southern Boulevard southward towards the Lake Worth Spillway and eastward from US-1 all the way to Intracoastal Waterways, making it a one-of-a-kind haven.
Grandview Heights is an older yet lesser-known district located in West Palm Beach. It neighbors the illustrious Howard Park to the west and lies just south of the Convention Center. In 1999, this area was placed on the National Register of Historic Places and has since experienced a remarkable surge in home value over recent years.
Reach out to Coastal Collective to start your West Palm Beach real estate investment journey
If you still have questions about the West Palm Beach real estate market in 2023 or what’s to come in 2024, don't hesitate to contact the Coastal Collective team
to learn more today. With over 100 years of combined experience servicing buyers, sellers, and builders combined with their expertise in construction and development, the Coastal Collective are your trusted West Palm Beach real estate agents.