The housing market in Palm Beach County and South Florida is hot and sizzling.
In 2021, median prices for Palm Beach County’s single-family homes reached almost half a million, with average price hovering at seven figures. Median sales price of condominiums rose 22.2%, for a total value of $293, 500.
Sales of high-end properties like single-family luxury homes rose 3.1 % with the number of buyers continuing to grow. Meanwhile, single-family homes under contract for 30 days went up by 9.1% year by year. The number of single-family homes declined by 52.5%, a sign that more people are settling down in the area.
People extended short-term rentals. Modern spec mansions that married amenity and reliability trended.
New residents bought homes, but retirees remained the biggest driving force in the real estate market. They want, and can afford, first-class amenities and accommodations in a place where the sun is always out.
The outlook got even rosier in 2022. Last April, median sales price of houses in Palm Beach County, where Palm Beach Gardens city is located, hit $615,000 or $14,000 higher than in 2021. Inventory increased – believed to be due partly to the slowdown in buyer activity following the Federal Reserve’s decision to hike interest rates.
In Palm Beach Gardens alone, there were 624 homes for sale. Last May, homes in the area sold for a $900,000 median selling price. Beach Garden homes usually stayed in the market for 41 days. The month of May saw a total of 579 homes sold, or 266 more than last year.
In June, the median size of homes in Palm Beach Gardens was 2,501 square feet, valued at $385 per square foot.
Flourishing South Florida
The good news continues in the larger area of South Florida, the go-to place for beaches and lately, business startups. The population is booming. Tourists drawn to the year-round warm weather are coming in droves – and staying.
The assumption that Florida’s policies are more relaxed is giving the real estate sector an extra boost. A strong economy supported by friendly tax laws (the absence of a state income or pension tax) makes moving to the Sunshine State irresistible.
This has led to a surge in homebuyers, employers, and investors. It also helps that the people are friendly and accommodating.
No wonder home sales and median prices continue to rise despite rising mortgage rates. Zillow predicts an 11 % rise in home value in 2022 because of South Florida’s work-from-home lifestyle.
The MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service System (MLS) report that Miami-Dade County registered the seventh highest home sales and posted the second biggest sales in April 2022.
MIAMI Chairman of the Board, Fernando Arencibia Jr., sees a more balanced market that will keep the real estate market strong. In April 2022, median prices of single-family homes and condos totaled $565,000, an increase of 9.7 %. The trend has been there for 125 straight months, or more than 10 years.
Meanwhile, the median price of condos in Miami — the largest city in South Florida and the second biggest in the state — rose 20% and reached $390,000. The large Hispanic population also spurs growth in the city.
The warm climate, the tourist-friendly vibe, and natural attractions make the area a favorite vacation spot for celebrities and wage earners alike. No wonder the service industry and businesses that need a ready workforce are on the rise. This, in turn, has created a surge in the real estate sector.
A growing number of entrepreneurs are looking for luxury homes, soaring condos, and communities where they can establish connections and stay put. These people are bringing their friends and family along.
The future
They’re bringing a flexible lifestyle that combines travel and remote work. This response to the pandemic is fueling the demand for completely furnished, ready-to-move-in homes for short or long-term lease.
Today’s young entrepreneurs and digital nomads are open to sharing living spaces. This means single-family homes where they live with groups of people they’re not related to. These co-living spaces are transforming high-rise buildings into dormitory-type areas where residents share expenses and household chores for convenience and affordability.
Need to know more about the real estate market in Palm Beach Gardens and South Florida before searching for a suitable house? Call The Telchin Group, LLC at 561.301.0249 or contact us here.