Palm Beach Real Estate Market Talking Points
October 23, 2015
The Palm Beach Daily News provided a few talking points regarding the Palm Beach real estate market in its October 18, 2015 edition of The Shiny Sheet.
Palm Beach’s real estate issues parallel not only the Hamptons and other parts of New York, but also Telluride, CO; Jackson Hole, WY; Greenwich, CT; and Beverly Hills, CA. These markets rely on the same customer base, lately led by hedge funders and billionaire financiers. While luxury housing markets across the country are experiencing rising prices and limited inventory, Palm Beach has the advantage of Florida’s favorable tax picture and homestead laws that can help to keep property taxes manageable for those who establish primary residency. Tax incentives are attracting more buyers who see Palm Beach as a primary tax shelter instead of just a warm-weather retreat.
Palm Beach Brokers and agents know that limited inventory is not a challenge when everything is said to be for sale, depending on the right offer. Off-market deals are not uncommon to Palm Beach where luxury real estate agents know how to get the job done.
There are currently 17 MLS-listed properties in Palm Beach priced at $24 million or more. That number is up from only 9 listings two years ago at this time. The current highest priced listing is an $84.5 million dollar new construction mansion at 1071 North County Road.
The rising price of buildable lots/tear downs is hitting developers’ profit margin. It is currently impossible to buy an outdated North End house in Palm Beach on a buildable lot for less than $2 million.
New development in Palm Beach is not only providing a psychological boost to buyers and sellers alike, it is also replacing the aging housing stock with brand new state-of-the-art homes. Higher elevations and strict building codes also result in a more hurricane-resistant home.
Palm Beach is not immune to global headaches. Wall Street, Mideast worries, and troubled economies across the world can have an impact. Although Palm Beach’s real estate market is tied to the world economy, one longtime local real estate broker thinks Palm Beach is getting closer to a healthier, more reasonable market for both buyers and sellers.
If you are interested in the Palm Beach luxury real estate market, please contact Randy Ely and Nicholas Malinosky; the #1 Luxury Team in the Beach Area.
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