The ongoing rush to South Florida by the rich and famous is driving real estate prices to new highs.
The average cost of a spread in Palm Beach — home to an ever-growing list of celebrities and financiers — rose to nearly $16 million in the first quarter of 2022, according to the Serhant South Florida Report, released Thursday.
Limited inventory and insatiable demand drove the average price of a Palm Beach pad up 44% compared to the same quarter in 2021, the study found.
The quarter saw a host of stratospheric deals — including the sale of a $45 million home owned by a Jordanian princess, according to The Real Deal.
The median price for a home in Palm Beach rose from about $7 million in the first quarter of 2021 to almost $10 million in the same period this year — a 46% increase.
Median condo prices in Palm Beach also skyrocketed over this stretch, rising from $1 million to about $1.6 million — a 52% increase in just one year.
New developments are rising at a fast rate in South Florida. Bloomberg via Getty Images/Eva Marie Uzcategui
Garrett Derderian, Serhant’s director of market intelligence, said the routine eruption of “competing for competing bids” fueled the unprecedented numbers.
“The South Florida real estate market had a benchmark in the first quarter as prices hit
Record levels with limited supply,” Derderian said in a press release.
In parts of Miami, home sales also continued to surge in the first quarter of the year — with Derderian noting that buyers were paying Gotham-level prices.
“Downtown Miami has seen an influx of newly built condominiums, attracting well-heeled buyers who are buying properties at Manhattan-like prices,” Derderian said.
Demand pushed the median price of a home in Palm Beach up 44%. Bloomberg via Getty Images/Marco Bello
The median single-family home cost in the region rose 41% to $1.3 million in the first quarter of 2022.
In the Miami Beach area, single-family homes also hit record highs, with median prices rising 19% to $2.5 million.
Derderian warned that South Florida’s dizzying rise could slow in the coming months.
“As we move into spring, we expect a slowdown in home appreciation
given the rapid growth over the last year and a half coupled with rising mortgages
Prices that have risen faster than expected,” he wrote in the report.