January 8, 2018
Palm Beach's priciest home sales show a market trending upward with the volume of spec building suggests that trend will continue. The gold-plated Palm Beach real estate bubble shows no signs of popping any time soon, as the ultra-wealthy continue to place millions of dollars into the area.
The real estate cycle from 2011 to 2017 saw buyers investing more than $540 million in the county’s top 10 priciest home sales alone. Notably, six of those top 10 deals closed between 2016 and 2017, including an $85 million sale involving the manager of one of the largest hedge funds in the world. That $85 million deal, where Citadel founder Ken Griffin purchased a South Ocean Boulevard home made history as Palm Beach’s second-highest-priced single real estate transaction ever. The number one Palm Beach County deal of all time was $95 million for an estate sold by Donald Trump to Russian billionaire Dmitry Rybolovlev in 2008.
Ron Lennen, president-elect of the newly merged Realtors of the Palm Beaches and Greater Fort Lauderdale, said the single-family home ultra-luxury market in Palm Beach County is stable and should remain so “for at least the next year, unless anything drastic happens with world events.” A third-quarter report from Douglas Elliman showed that year-over-year, Palm Beach luxury (the top 10 percent of the market) saw a 21% drop in median sales price, to $7.7 million. However, the number of deals was up 14% that same period. The trend seems to show a Palm Beach market that is stabilizing and then preparing for an upswing.
Thinking about making a move in the Palm Beach luxury real estate market? Contact award-winning broker, Niki Higgins to discuss your options.
Source: The Real Deal
