A Year After Two Hurricances, What Has Changed in Palm Beach Real Estate?
It was almost a year ago when our Labor Day weekend was punctuated by a visit from Hurricane Frances. Jeanne came a few weeks later. Today, the effects are still visible, but not as obvious as they were last fall. And the wind and destruction doesn’t seem to have affected real estate in general, in Palm Beach County.
I could smell the pungent roofing tar in a townhome community off Forest Hill Boulevard this morning, as roofing crews worked on yet another roof repair. The surrounding townhomes were a mixture of blue tarps and new cedar shakes. Some homeowners are still waiting for their contracted roofers to arrive, delayed by various problems from lack of skilled labor to material shortages. But the roofs are getting repaired. Many of the townhomes in that neighborhood are selling for $50,000 more than a year ago, an increase of over 30%.
There are a few less homes selling each month than in 2004, keeping it very much a seller’s market. The increase in value has continued to make affordability an issue, but migration into the area hasn’t dropped. Maybe some of the new arrivals have the opinion that the county is no longer overdue for a storm, and if on average we get hit every few dozen years, it should be peaceful here for a while. In any case, as long as these buyers are able to sell their properties in New York or California, the South Florida region is still more appealing than blizzards and earthquakes. And, with the number of $500,000, $600,000, oh even $2,100,000 homes changing hands in the newest neighborhoods in Wellington, it looks like the price tag is not an issue for many buyers.
As I write, yet another tropical depression has formed, the twelfth of the season so far! It has been a busy season after a very impactful one. And this storm is projected to pass near the south end of the county by Thursday or Friday. I’m sure the morning will bring the usual pre-storm chaos of people running to the grocery stores and gas stations, unless everyone has enough stuff left over from the fall.
It’s not here yet, it doesn’t even have a name, and it may not affect us much – rain is usually the biggest factor – but it will be interesting to see if the 2005 storm season has any more effect on the area’s real estate than last year’s Frances and Jeanne. If their one-two punch couldn’t slow down our growth, what will?
Tags: Hurricanes