What to Expect in the Palm Beach County Housing Market in Spring 2020

What to Expect in the Palm Beach County Housing Market in Spring 2020

According to a recent report, the median price of a luxury home in the Town of Palm Beach, Florida, more than tripled in the third quarter from a year ago to a record $16.5 million. It’s believed that this increase has a lot to do with the enactment of the new federal tax laws in 2018, which led to many affluent residents leaving high-taxation states and opting to move to tax-friendly places such as Florida. Sales in the Palm Beach luxury housing market hit record highs in 2019, leaving many guessing what to expect in the Spring of 2020.

Palm Beach County is Likely to Continue Attracting Baby Boomer Retiree Buyers

According to Mansion Global, the federal tax reform migration of affluent buyers into Florida has bypassed Miami, in favor of Palm Beach and some of the state’s other east coast communities. Baby boomers are a sizable group with considerable resources to invest in South Florida. Those looking to retire will find numerous active adult communities in Palm Beach County that are designed for this generation’s interests and needs. It’s anticipated that the population of this group will continue to grow in Palm Beach County.

The Salt Tax Migration is Likely to Continue into the Area

When the 2018 tax laws capped the deductibility of state and local taxes, SALT, the demand for high-end real estate in low-tax states such as Florida rose quickly. Wealthy property owners are still moving into the Palm Beaches and looking for homes in popular areas such as Jupiter, West Palm Beach, Wellington, and Palm Beach Gardens. However, the pace may be slower as it could take time for owners coming from high tax states to sell their luxury properties.

Investors and Out-of-State Buyers are Leading

As the year came to an end, third-quarter luxury home and condominium sales were at record highs. Out-of-state buyers certainly contributed to those figures. However, international investors and prosperous individuals looking for second homes were also part of the group.  The Palm Beach area continues to be a hot market, and second-home buyers and investors are expected to continue acquiring properties in the area.

Guy Rabideau, Esq. and David E. Klein, Esq. are Florida Board-Certified Real Estate Attorneys with the experience you need for all aspects of your Palm Beach County real estate transaction. We have the expertise and local knowledge you need to ensure that your interests are protected during every stage of the process.  Contact Rabideau Klein today to discuss your real estate legal needs.

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