Miami’s real estate market has been surging upward for a long time, but the boom isn’t constrained to Miami-Dade County alone. You’ll find a lot of SoFla’s property prices are increasing, some by leaps and bounds. Palm Beach County is one example. August’s prices alone were almost 15% higher than the same time during the preceding year. In fact, there were only three cities in the entire country where prices rose more than in Palm Beach County (Miami-Dade and Lakeland included).
A Look at the Rise of South Florida Real Estate
The numbers for Palm Beach County include most types of non-commercial real estate, including condos and single family homes (as compiled by Trulia.com). They’re also a direct reflection of the larger area as a whole. Overall, SoFla has seen property values jump up since 2011. There are a number of reasons behind the recovery and turnaround.
2011 marked the lowest point in terms of real estate prices in south Florida for a long time. Some of the increase is attributed to nothing more than the rebound effect – the price of real estate correcting after the recession released its grip on the area. However, that doesn’t explain all of it. Other reasons noted for the increase include rising employment and a much stronger job market. While salaries haven’t changed much, particularly around Miami and South Beach, the employment market is stronger overall, with unemployment and underemployment numbers falling dramatically from what they were during the height of the recession.
The rising employment rate has several effects on the real estate market. First, fewer people are falling behind on their mortgages, which means fewer foreclosures. Because foreclosures drag down the value of a market overall, fewer of them happening means an across the board increase. Another benefit is that buyers are able to afford more house since they’re no longer underemployed, which allows them to upgrade.
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