In South Florida's wealthiest areas, from Palm Beach to Miami Beach, the luxury real estate market is setting new records, primarily fueled by purchases from billionaires and millionaires. Palm Beach has emerged as the country's most expensive market, with the average home sale price exceeding $20 million in the third quarter, as per Douglas Elliman and Miller Samuel data. The average price per square foot in Palm Beach is now at $4,554, significantly higher than in places like Manhattan.
Chris Leavitt, a leading Palm Beach broker with Douglas Elliman, points out the staggering prices and the intense competition for premium properties, particularly waterfront homes. This surge in demand is largely attributed to wealthy individuals relocating from high-tax states like New York, New Jersey, and California and is further amplified by Florida's economic growth. These ultra-wealthy buyers, often paying in cash, are less impacted by rising mortgage rates, contributing to the high demand and limited supply.
The scarcity of listings, especially in sought-after waterfront areas, has sparked a price surge. According to Jonathan Miller, CEO of Miller Samuel, the number of homes on the market in Palm Beach has drastically reduced, leading to fewer sales but continued upward pressure on prices.
Despite the high prices, some homes are still available under $10 million, as noted by Leavitt. However, the market has seen staggering sales, such as a waterfront home sold for about $50 million, previously purchased for $7.4 million, and luxury car dealer Michael Cantanucci's $170 million purchase of an oceanfront mansion, setting a new record in Palm Beach.
The trend extends to Miami Beach, where the number of single-family home sales has slightly decreased, but the dollar value of sales has risen significantly due to more transactions above $10 million. The average price for luxury real estate in Miami Beach has reached a record $25 million.
High-end housing markets in these areas appear to be insulated from mortgage rates and broader economic trends. Notable billionaires like tech mogul Eric Schmidt and hedge-fund billionaire Ken Griffin have been investing heavily in Miami real estate. Jeff Bezos, too, has joined this exclusive group, spending $150 million on properties in Indian Creek Village.
Overall, South Florida's luxury real estate market is experiencing an unprecedented boom, driven by wealthy buyers seeking premium properties in desirable locations, reshaping the region's real estate landscape.
_edited.jpg)