Home Sales On The Rise - Is It The Good News?

During the last six weeks, there has been some surprising news despite the challenges of the current economy. The Good News? Home sales are on the rise in such places as Palm Beach County, Florida. Perhaps it is because of the “bargain” prices on many homes. Is this a sign that the economy has bottomed out and is turning around? Perhaps. But when viewed in the light of the interest rates, now nationally below 5%, this could be one of the best times to consider real estate as an investment strategy for the long haul.

Recently we have seen some interest from people looking to fix up their existing home in order to get the highest interest possible from potential buyers - though it may not get the highest price of just a year ago. But the trends continue to indicate that there are some real buys to be had. As one example, a bight, light three bedroom, four bath townhome built in 2005 was sold by the developer for $489,000. The current owners recently had to give the property back to the lender and they have listed it for $309,000.

In a gated residential community in Jupiter, FL., we discovered a 4,270 square foot courtyard-style residence with a dock that needed some cosmetics,… you know…paint, flooring, new landscape, cabinets in the master bathroom. We watched the property drop in price from $1.35M to $995,000, and we knew it just wouldn’t take very long for the residence to be sold. Sure, it needed some work but when you consider that it finally sold for $864,000, it will certainly make a great investment for that new home buyer.

And by the way: the new owners are adding a guest cottage and cabana bath to the property plus a new kitchen design that will integrate with a summer kitchen on the patio deck. These people knew the market and new this was the right time to make a commitment. They intend to make it their seasonal home for some time to come.

Good news that maybe we have turned the corner. And isn’t it about time??