The graphs above are actually exactly what you would expect with regard to residential real estate trends in Palm Beach County from 2008 to today. You can see the low number of closed sales in 2008 in the top graph, which is directly correlated with the high prices at that same time shown in the middle graph. When the housing bubble burst and prices decreased, the closed sales in the ensuing years increased. You can see the high home inventory in 2008, which is the result of 2 factors. First, people were listing their homes to take advantage of the inflated market and walk away with a huge profit. Second, buyers weren’t pulling the trigger as much because they either didn’t want to pay the inflated prices or simply couldn’t afford them.
The good news for those that bought homes in 2008 and still own them is that average sale prices in 2015 are getting relatively close to the prices we saw back in 2008. Closed sales are up in 2015 despite the relatively high prices, and of course the inventory is down. The inventory being down is certainly related to the increase in closed sales, but it could also be that potential sellers aren’t really sure they want to sell. In today’s market a seller could walk away with a nice profit, but where will they go. If they aren’t moving out of the are into a less expensive real estate market, they’re going to pay top dollar for a new home to live in. All that profit from the sale of their home will be rolled into a new home, which is likely to be a similar home to the one they just sold. As a result, people are staying put.