Palm Beach is internationally known for its stunning beaches, affluent country clubs, and luxurious mansions. Particularly West Palm Beach, which has become one of America’s most enduring spots for the rich and famous. Palm Beach is known as one of the more expensive real estate markets in America.
With a massive concentration of mansions and extreme wealth, the luxury real estate market in Palm Beach is the bedrock of their housing market. While this has been true for many years, 2020 has seen this continue, as the demand for luxury real estate in Palm Beach soars.
Since March, high priced closings have surged in Palm Beach. According to CNBC, Palm Beach is considered by some brokers as the hottest real estate market in the world. In the third quarter of 2020, the average price of a home sold was more than $7 million.
Palm Beach has more space, less urban density, and some of the best golf courses in America.
Not only is the cost of these homes extremely high, but they are also being sold at a higher volume than the norm. The number of contracts jumped 62% in September. Because of the increased number of contracts being signed, supply has been reduced. The inventory of homes for sale fell by 79% in the third quarter compared to the same time in 2019.
One reason for this is Northeastern and West Coast buyers moving to Florida. There are a variety of reasons people would want to head to Florida right now. For Northeastern buyers, one compelling reason would be the weather. But for all out of state buyers, one thing Florida has that many other states don’t have is a lack of state income tax.
Palm Beach has more space, less urban density, and some of the best golf in America. For wealthy people from other states, who are fed up with the high taxes and fast-paced lifestyles of their cities, Palm Beach is an extremely desirable destination.
Another driving factor is the fallout from COVID-19. The claustrophobia of being locked down in condos or townhouses in congested cities has led many buyers to prioritize space and the outdoor attributes of houses.
Many buyers are now focusing on things like backyards and swimming pools when they look for their next homes. This coincides with work-from-home being the new normal, so buyers aren’t tethered to any particular location. This gives them the freedom to pursue areas they wouldn’t have before, like Palm Beach.
These changes have led to a serious seller’s market in Palm Beach. According to Palm Beach Daily News, at the end of the third quarter, the Palm Beach market had already surpassed the entirety of the 2019’s transaction count by 56%.
This means that the supply in Palm Beach is much lower than it has been in years past, and demand is way up. This has carried over to rental properties, where according to the same article by the Palm Beach Daily News, the supply of rental properties was already mostly exhausted by April.
Palm Beach is well-known as one of the more luxurious areas in America. Even facing the economic uncertainty that COVID-19 brought, Palm Beach is continuing to attract luxury buyers from all over the country. With its golf greens, rolling beaches, and opulent mansions, it is no wonder. Although the number of homes may be in short supply, demand has led to a luxury home boom in Palm Beach.