West Palm Beach Housing Market Softening
As the economy strengthens and monetary policy grows stricter, mortgage rates are increasing. Economists believe that by 2006, interest rates will hit 7 percent, causing a five percent decrease in West Palm Beach housing sales by early next year.
The decrease in sales will lead to a decrease in West Palm Beach housing starts, but luckily it won’t cause prices to plunge. However, West Palm Beach housing prices won’t continue to increase either.
Realtors think that the West Palm Beach housing market “won’t soften too much” thanks to baby boomers, who continue to fuel demand, and immigrants, who “are increasingly becoming first-time home buyers.” Both of these demographics will make the coming West Palm Beach housing lull “relatively mild compared with past downturns.”
The decrease in sales will lead to a decrease in West Palm Beach housing starts, but luckily it won’t cause prices to plunge. However, West Palm Beach housing prices won’t continue to increase either.
Realtors think that the West Palm Beach housing market “won’t soften too much” thanks to baby boomers, who continue to fuel demand, and immigrants, who “are increasingly becoming first-time home buyers.” Both of these demographics will make the coming West Palm Beach housing lull “relatively mild compared with past downturns.”
