As Palm Beach County moves into the hotter months, the luxury housing market is still going strong. With interested buyers watching the area and a limited supply, it seems likely that high-end properties will continue to sell at optimum prices and that the Palm Beach housing market will continue to thrive this summer.
Real Estate Activity in Palm Beach County
Before the coronavirus pandemic, buyers from northeastern states were migrating into South Florida after changes to the federal tax code impacted them. At that time, real estate activity was booming with out-of-state transplants trying to find high-end properties in Palm Beach County. When COVID-19 hit the U.S., the market paused, but only temporarily. It would soon pick back up again with even more force. Now, according to a recent report, Palm Beach is seeing more houses go under contract than ever before. There are also indications that there were dramatic increases in middle and high-end home sales in June and a sharp decrease in inventory.
Northeastern Buyers are Still a Market Force
At the outset, COVID-19 impacted more densely populated states and cities. Residents in eastern states such as New York, New Jersey, and Connecticut wanted to get out of urban centers and find luxury homes with more space. Some of these buyers were already looking to relocate when the outbreak happened. Today, many buyers want to move or find second properties away from close contact in their local communities. In the Town of Palm Beach, these buyers can find lush surroundings, expansive estates, and exclusive, high-end homes. Although a significant number of buyers are from the northeast, buyers from other places are also contacting Palm Beach County realtors. However, just as before the pandemic, the luxury market remains competitive in this desirable South Florida community.
Multi-Million Dollar Sales
According to a recent report, in the Town of Palm Beach, the median sales price for a luxury home in the second quarter was $5.8 million, which is up from 4.2 million last year. Recently, a mansion built for rock musician Jon Bon Jovi and his family went on the market for $22.9 million and was under contract only five weeks later. The five-bedroom, Mediterranean modern-style property was commissioned by the New Jersey Bon Jovi lead singer. There have also been more substantial sales, such as that of the former Kennedy family estate, which sold for a reported $70 million. Another exchange of a 2-acre estate at 8 S. Lake Trail was recorded at $70.85 million. This transaction set a new lakefront sales record for Palm Beach. While not every luxury home transaction in the Town of Palm Beach will be for such high amounts, recent activity indicates that interested buyers are making competitive offers in this market. Area real estate agents, report that they don’t expect the pace of luxury home sales to slow anytime soon.
Contact the Board-Certified Florida Real Estate Attorneys of Rabideau Klein
At Rabideau Klein, David E. Klein, Esq. and Guy Rabideau, Esq. are dedicated, Florida Bar Board-Certified Real Estate Attorneys with the Palm Beach County expertise and experience you need to ensure that your interests are protected throughout your real estate matter in the Town of Palm Beach. Contact Rabideau Klein today to discuss your Palm Beach area real estate legal needs.