The Development Of Palm Beach Real Estate Primed To Continue
By: investUSA360 •
When looking at the Palm Beach real estate future, it is normal to question whether the proverbial ‘luxury bubble’ is bound to burst soon. However, when talking to local developers and brokers, the answer is very clear: “not any time soon”. The mega wealthy continue to see Palm Beach as a great place to invest their money, which leads to more interest in the existing homes as well as new construction in the area.
Over the last 6 years, the buyers in the Palm Beach real estate market have invested more than $540 million – on the top 10 most expensive homes in the county alone. Interestingly enough (and evidence of a booming market rather than a slumping market), six of those top 10 deals registered in the last two years. This includes the $85 million purchase made by billionaire Ken Griffin, managed of one of the largest hedge funds in the world.
According to information from the Florida Realtors Association, the end of last year saw home sales rise to the fastest in more than a decade. The increase in a single month was 6,2%. Even though that seems like a tremendous increase, Palm Beach County blew the national average away with a 16% monthly increase.
Why Are People Buying Now?
One of the reasons that the sales are continuing the way that they are is because of the dropping rates of the 30-year fixed mortgages. This continue drops (from 3.95% to 3.92%) means that it becomes more interesting for those who want to buy a home, or to reinvest for those who want to try and refinance on the current market. Compare the rate in 2016 (4.03%) to the current rate, and you start to understand why so many are actively interested in new real estate.
Another reason that could be driving increased interest is the fact that we have a low national unemployment rate and healthy job market. Compare regions such as Boca Raton and Jupiter to the national average (4.1 national average versus 3.5 and 3.4 respectively) and you begin to understand how the stars are aligning for a better and healthier real estate market.
The Latest Sales
We have already mentioned the $85 million investment made by Ken Griffin, but we should also mention the $77 million sale of 60 Blossom Way to billionaire real estate tycoon, entrepreneur and philanthropist Frank H. McCourt Jr, and the $72 million sale to hedge funder Paul Tudor Jones II. This means that the top 10 sales of the last decade were all in the last two years.
Why Palm Beach
Considering that the mega rich could invest their money anywhere, why are so many of them flocking towards Palm Beach? Investing in Palm Beach is about more than the sun – it has job opportunities in new industries, a great local economy, sports, weather, dining golf, world-class shopping options, stunning beaches and around $6.8 billion in tourism annually. Palm Beach county has more than just luxury real estate – it is home to an international airport, 11 different colleges and universities, and serves as the golf-capitol of the state. The stunning beautiful blue Atlantic coastline (more than 47 miles of it) has some of the most breathtaking luxury oceanfront properties available.
The Future Of Palm Beach Real Estate
Interestingly enough, the future of Palm Beach real estate could be looking up, even though it is already breaking al types of records. In fact, the federal tax plan that was recently agreed upon could mean that more and more of the wealthy elite are looking for ways to invest their money. The fact is that there are favorable rules in the new tax plan that could make it attractive to move out of state and towards Florida – Palm Beach especially.
The state is of Florida is already appealing to those who want to buy out of state, this is because there is simply no income tax. If you look at the fact that Florida is only one of seven states where there are no federal income taxes, you begin to understand how this could mean that Palm Beach real estate is going to experience a gradual increase rather than a sudden steep decline. This would mean that real estate investments in Palm Beach continue to be a solid investment that is going to continue to pay off.
If you have the money and are willing to invest in an already booming market, chances are good that Palm Beach real estate investments are going to pay off in the future. Especially when we compare the rates to the national average, there is no denying that this is the market to get into right now if you are looking for something that is not only going to retain its value, but increase in the future.
To learn more about the best properties in Palm Beach, check out our properties section on InvestUSA360.
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