Thursday, March 25, 2021 / by Carl Gentile
The Stock Market Might Shift, But Right Now Real Estate in the Palm Beaches is Looking Strong
With the end of 2020 and start of 2021 we have seen quite the rollercoaster in the stock market and a lot of uncertainty. On the other hand, the Palm Beaches real estate market continues to stay consistent and strong.
How strong? Let’s talk numbers. In the northern Palm Beaches, Jupiter closed home sales year to date are up 15% from 2020 with the average sales price up 27.6% from $861,327 to $1,098,664. For the tenth month in a row, new listings are down -21.2% with inventory down to 111 homes for sale, a -66.7% drop from 2020. The lack of new inventory continues to drive prices across the Palm Beaches with average sale price in Palm Beach Gardens rising 32.5% TYD comparison to 2020 from $759,172 to $1,005,873.
As prices continue to rise and mortgage rates up 20% since the start of 2021 it makes you wonder how long can this path continue? It doesn’t take much effort to understand that someone buying a $500,000 home today is paying 20% more than they were paying three months ago on their mortgage and buying a home for 10% plus more - you begin to question for how much longer?
However, the numbers continue to speak differently, especially in our million plus market. Last year our million plus home sales were 50% higher than any year in history. Over these first two months of 2021 we are leaving last years record setting million plus market sales in the dust by 221%! With the start of 2021 already 205% higher than last year numbers and it is only March!
Recent articles by both Bloomberg and the Wall Street Journal begin to question whether or not high-net worth individuals from high-tax states who fled throughout the pandemic will continue to hold residency in the Palm Beaches. Looking out the window at 78 degree weather, a light breeze and crystal blue skies it's hard to question why they would not - let's not forget great dining, great shopping, beaches and tax incentives.
One thing to keep in mind is every market moves at it's own metrics. Stutters in Miami, or elsewhere, do not mean stutters in the Palm Beaches. By understanding the market conditions, valuations and more educated buyer's will continue to keep the market moving forward at a steady pace; whereas, uneducated buyers buying well over asking price with no inspection period or contingencies as is being seen in areas outside of the Palm Beaches can lead to great turmoil to markets in the long run. Stay informed.