Palm Beach is one of the most luxurious places in America. With palatial mansions, sprawling beaches, and teal waters, the word is out on Palm Beach as one of the foremost spots for the wealthy and famous. Palm Beach is a haven for the mega-wealthy, with some of the most expensive real estate of any area in the world.
West Palm Beach is the primary area of Palm Beach where the wealth is concentrated, but much of the area is expensive and has wealthy residents. This isn’t going to change any time soon, as the Palm Beach real estate market has exploded in 2020, particularly in the luxury sector.
“….in the third quarter of 2020, the average price of a home in Palm Beach was over $7 million.”
According to some brokers, Palm Beach might be quite literally the hottest market in the world. A CNBC report indicated that in the third quarter of 2020, the average price of a home in Palm Beach was over $7 million. The same report showed that signed contracts jumped 62% in September.
The inventory of homes on the island fell 79% in the third quarter compared to the year before. This means that prices are up, more sales are being made, and inventory is down. This shows a clear case of extremely high demand from wealthy buyers for luxury homes in Palm Beach.
According to Dana Koch, a Palm Beach real estate agent with the Corcoran Group, houses were sold in 2020 at an extremely abnormal rate. “We normally average roughly like $200 plus million on an annual basis, and during the first three quarters, we’ve sold $350 million worth of real estate,” Koch said in a report by Housing Wire.
This reflects higher demand for homes in Southern Florida than has been seen in quite some time. Luxury buyers are setting their eyes on Florida for the warm weather, lack of congestion, and lower taxes.
The pandemic has influenced people in many ways in terms of what they are searching for. The spaciousness of a home in Palm Beach compared to a city like New York or Chicago is a huge difference. As well, America’s wealthiest have not suffered the same economic ramifications from the pandemic that the lower and middle-class citizens have.
Many of America’s richest citizens have seen their wealth grow throughout COVID, and lockdown and other restrictions have likely stemmed expenses. This has resulted in a probable increase in disposable income. Luxury markets are surging across many cities across America, but the situation in Palm Beach is unique.
All reports about the market in Palm Beach are positive, and projections indicate this will continue to be the case. According to the World Property Journal, total luxury home sales spiked by 83% in the third quarter of 2020. Total home sales were up 15.2% year over year, and the price of homes is rocketing due to the high demand and lack of inventory.
Palm Beach is an area known for its affluence. This has been the case for many years, but right now it is as red-hot as it has ever been. The area is only going to become more elite and exclusive as the prices skyrocket and the rich from other areas of the country migrate in. Palm Beach is considered by some the hottest real estate market in the world, and with its mansions, golf clubs, and beaches, it’s no wonder.