Area real estate agents have seen a sharp increase in single-family residential home sales in and around the Town of Palm Beach and a decrease in supply. According to a recent report, the average home price in the Town of Palm Beach, Florida, was more than $7 million during the third quarter of 2020. With demand and prices on the rise, is Palm Beach the hottest real estate market in the country?
The Tax Migration Continues
The data has consistently shown that affluent buyers from the northeast United States have been moving into Florida and Palm Beach County for the past few years to benefit from the state’s taxation system. Unlike New York, New Jersey, and Connecticut, Florida does not have an income tax. Further, its property taxes are far lower than some other state such as California. High-income earning transplants have been moving into the Sunshine state for the past few years to enjoy its ample tax benefits and are continuing to do so.
The Pandemic Push
When the coronavirus outbreak hit the United States in March, it was unclear how well the real estate market would fare. However, it soon became evident in the Town of Palm Beach and throughout Palm Beach County that luxury real estate was in high demand. Interested parties from urban centers throughout Florida and the country began to contact Palm Beach real estate agents inquiring about spacious high-end homes with ocean access and large yards. Short-term rentals were soon extended into long-term leases. Today, high-end properties are selling fast in this exclusive community, and buyers continue to line up. Spec mansions are becoming a hot commodity, as they offer today’s luxury buyer modern design and amenities in some of the town’s most coveted communities. The demand for real estate in this exclusive and beautiful destination continues.
Palm Beach County if Thriving
Recently, Mansion Global reported that Palm Beach County is the hottest real estate market in the country. Throughout the county, the sales numbers reflect increases over prior years. In its article, the magazine noted that Redfin.com found that the average price of a luxury home in Delray Beach rose 70% over the past year to $2.98 million, while in West Palm Beach, the price went up almost 22% to $1.32 million.
Recently, the National Association of Realtors (NAR) issued a report that showed that for the twelfth year in a row, Florida has remained the number one choice for foreign buyers “with a 22% share of all international purchases.” The NAR also found that that Miami-Ft. Lauderdale-West Palm Beach was the number one preferred area for international buyers at 53%. According to the report, Canadians were the top foreign buyers in Florida, and that 50% of all buyers bought properties for primarily residential use, and that three out of four bought
detached single-family homes and townhouses. The NAR found that international buyers were attracted to Florida for many of the same reasons as American buyers.
Retirees Remain a Driving Force
Although the pandemic and tax migration have brought new residents into the Town of Palm Beach in recent years, retirees are still a driving force in the area. Palm Beach and its surrounding communities continue to attract those looking to retire in first-class accommodations in one of the county’s most beautiful places.
At Rabideau Klein, we have extensive experience handling multi-million-dollar transactions for high-end real estate in Palm Beach County. David E. Klein, Esq. and Guy Rabideau, Esq. are Florida Board-Certified Real Estate attorneys with the expertise and local knowledge you need to assist you in managing your Palm Beach residential and commercial real estate issues. Contact Rabideau Klein today to discuss your real estate legal needs.