Madness On The Coasts
The Palm Beach Post is reporting that California has nothing on Florida when it comes to a housing bubble. "The median price of existing homes in Palm Beach County rose to $371,500 last month. That's a 37 percent jump from the county's median price of $272,100 in March 2004."
"The median price of an existing home in Martin and St. Lucie counties rose to $235,000 in March.When compared with March 2004, the price soared by 39 percent from $169,100."
The new mindset is apparent. "'Part of it is there's been a turn in how people view mortgages, not necessary that they're not staying in homes but they're not staying in mortgages.' Houses sell so quickly in Palm Beach County that buyers (will) forgo the typical sales contingency that the price be no more than the appraised value, meaning they'll buy the house either way."
"Everything is selling and price doesn't seem to be a factor. There are buyers at every price level."
Not everybody is jumping in. "Sales dipped 7 percent compared with March of last year. Charlene Montford, (is) renting while she looks for a home. So far, Montford says she's been priced out of housing in the area despite a salary that approaches $100,000 a year."