Palm Beach County homes are selling for a hefty discount below the national average, a price correction that marks a sharp reversal from the boom-time premium commanded by properties here.
It’s a trend that has housing experts predicting Palm Beach County prices could bounce back – but only after the area’s flood of foreclosures and short sales recedes.
“I would say that, yes, we have overcorrected,” said Jack McCabe, a housing analyst in Deerfield Beach. “When the market does recover, there’s going to be a lot of room for appreciation.”
During the 1990s and early 2000s, Palm Beach County home prices hovered about 10 percent below the national average, according to a Palm Beach Post analysis of data collected by the National Association of Home Builders.
In 2005, Palm Beach County prices spiked, reaching a premium of as much as 19 percent over the national average. During the crash, Palm Beach County homes have sold for much less than the national average. The gap has been more than 20 percent since late 2010.
During the fourth quarter of 2011, the median price of new and existing houses and condos sold in Palm Beach County was $129,000, 24 percent below the national median of $170,000.
Read : “Palm Beach County home prices lag U.S. average” an article by The Palm Beach Post.