West Palm Beach Luxury Home Sales Soar a Record 116% In Fourth Quarter as Wall Street Moves South

SEATTLE, January 28, 2021 / PRNewswire / – (NASDAQ: RDFN) – Luxury real estate for sale in West Palm Beach, FL The fourth-quarter increase was 116% year-over-year, according to a new report from Redfin (www.redfin.com), the technology-driven real estate agent. This is a bigger gain than any other major U.S. subway, and the biggest increase since at least 2013, when Redfin started tracking that data. For comparison: Selling affordable homes in West Palm Beach grew only 10%.

The report is based on an analysis that divided all U.S. residential homes into five price tiers based on Redfin estimates of the homes’ market values.

The median sales price of luxury properties in West Palm Beach rose by 14% compared to the previous year $ 1.8 million in the fourth quarter – the biggest jump since 2018. This corresponds to a growth in affordable price levels of 9%.

West Palm Beach The high-end real estate market has seen explosive growth as wealthy New Yorkers flocked to the sunny city for more space and lower taxes while working remotely during the pandemic. More than half (56.1%) of Redfin.com hits in Palm Beach County came in the fourth quarter from outside the district – compared to 50.2% in the previous year – and Cook County, IL (Chicago) and Kings County, NY (Brooklyn) were the most popular extra-state origins. Most house hunters in the area have been in the primary housing market lately – a shift from pre-pandemic when the majority of buyers were looking for vacation homes Delray Valle, Redfin’s West Palm Beach Market manager.

A handful of Wall Street financial firms have also expanded or are considering expanding their presence in the area. The list includes Goldman Sachs, Virtu Financial, and Elliott Management. Local Redfin Real Estate Agent Andrea Duke said she has received more calls than usual from potential high-end buyers considering switching West Palm Beach because their employers have opened offices in the area.

“Buyers come from expensive cities – New York in particular – and beat locals in bidding wars by offering all the money,” said Valle. “As a result, many people are forced to rent or buy new buildings.”

Nationwide houses listed between $ 1 million and $ 1.5 million 60% of Redfin listings for homes in this segment have been exposed to competition.

Duke sold one in November West Palm Beach Home for $ 1.1 Million – $ 425,000 more than your customer bought in 2017. To transform the property into a luxury home, the client had invested in a modernized kitchen, open floor plan, new roof and storm windows. Within 24 hours of listing the property, Duke had seven screenings scheduled, and by the second day she had three listings. The winning buyer of Chicago, bought the house invisible for $ 42,000 about the asking price.

The tough competition drives buyers to act quickly. The typical luxury house for sale in West Palm Beach There were 46 fewer days on the market in the fourth quarter than in the same period last year (115 days in the fourth quarter of 2020 compared to 161 days in the fourth quarter of 2019). In the meantime, homes in the affordable price range were spending more time in the market than a year earlier (64 days in the fourth quarter of 2020 versus 61 days in the fourth quarter of 2019).

West Palm Beach Housing Market Summary Q4 2020


luxury

Expensive

Middle price

Affordable

Most affordable

Homes sold, YoY change

116%

38%

26%

10%

-10%

Median sales price

$ 1,825,000

$ 499,900

$ 285,000

$ 150,000

$ 56,000

Median sales price, year-on-year change

14%

11%

69%

9%

96%

Median days on the market

115 (-46 days
YoY)

62 (-22 days
YoY)

56 (-7 days
YoY)

64 (+3 days
YoY)

87 (+11 days
YoY)

Miami Luxury Home Sales Up 55% in the Fourth Quarter

Sale of luxury real estate in the Miami The subway area rose 55% year over year in the fourth quarter – far more than any other price bracket. In comparison, affordable home sales fell 3%.

The median sales price of luxury properties in Miami rose by 18% from year to year $ 1.9 million, the largest increase since 2017 and the third largest increase among the 50 most populous U.S. metros (only behind) New Brunswick, NJ and Phoenix). That was more than double the rise in the affordable price tier.

“”Miamis High-end real estate market takes off because everything is wide open here while including places California are being shut down due to coronavirus restrictions, “the local Redfin agent said Cecilia Cordova. “Lots of people also come here to avoid taxes. I have several clients who recently bought homes here to avoid the potential capital gains tax Seattle. “

Cordova continued, “With Miami’s lower taxes, high-end buyers know they can buy more home for their money. A. $ 5 million Home here would be likely $ 10 million in the Seattle or California. “

Just over a quarter (27.7%) of Redfin.com house searches in Miami-Dade County came in the fourth quarter from users outside the district – compared to 20.7% in the previous year – and Los Angeles County, CA. and Cook County, IL were the most popular non-state origins. Technology and finance companies have also grown Miami. Microsoft and Citadel are among the companies reportedly in talks to secure new office space in the Brickell neighborhood.

Similar to West Palm Beach, Miami High-end homes are selling much faster than they have in the past. The typical luxury house for sale in Miami There were 53 fewer days on the market in the fourth quarter than in the same period last year (134 days in the fourth quarter of 2020 compared to 187 days in the fourth quarter of 2019). In comparison, homes in the affordable price range spent one more day in the market than in the same period last year (64 days in the fourth quarter of 2020 versus 63 days in the fourth quarter of 2019).

An increase in market speed is an indicator that competition is intensifying. Bidding wars in Miami are extremely common in all price levels, according to Cordova.

“Some of my open houses have nearly 50 people waiting outside to get in,” she said. “Sellers ask for what they want and buyers are willing to pay for anything the sellers ask for.”

Miami Housing Market Roundup, 4th Quarter 2020


luxury

Expensive

Middle price

Affordable

Most affordable

Homes sold, YoY change

55%

14%

0%

-3%

-7%

Median sales price

$ 1,910,000

$ 520,000

$ 322,500

$ 205,000

$ 115,000

Median sales price, year-on-year change

18%

10%

8th%

8th%

3%

Median days on the market

134 (-53 days
YoY)

71 (-17 days
YoY)

56 (-5 days
YoY)

64 (+1 day
YoY)

85 (+22 days
YoY)

The full report, including the diagrams and methods, can be found at: https://www.redfin.com/news/west-palm-beach-miami-pandemic-luxury-real-estate.

About Redfin
Redfin (www.redfin.com) is a technology-driven residential real estate company redefining real estate in a commission-driven industry for the benefit of the consumer. To do this, we integrate every step of the home buying and selling process and combine our own agents with our own technology to create a service that is faster, better, and cheaper. We provide brokerage, iBuying, mortgage and title services, and we also operate the nation’s leading brokerage website, which offers consumers a variety of online tools including Redfin Estimation. We represent people who buy and sell homes in over 90 markets The United States and Canada. Since our introduction in 2006, we’ve saved our customers $ 800 million and we’ve helped them buy or sell more than 235,000 homes worth more than $ 115 billion.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. Visit the Redfin Data Center to learn more about trends in the real estate market and to download data. Send email to be added to Redfin press release distribution list [email protected]. Click here to view the Redfin Press Center.

SOURCE Redfin

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