The area recorded a whopping 116 percent growth in Q4 2020.
With its upscale entertainment, scenic locations, and luxurious homes, West Palm Beach, Florida holds a distinct reputation in real estate. Those with the means to access high-end properties either own a home in the area or know someone who does.
Keeping this in mind, it’s no shock to learn that West Palm Beach real estate shattered sales records in 2020. But what does come as a surprise is the extent of growth associated with this achievement.
According to a recent report, the area recorded a whopping 116 percent increase in yearly sales for Q4 2020. This not only broke sales records for West Palm Beach homes, but also surpassed sales figures for major metropolitan areas.
Home Sales Are Off the Roof in the West Palm Beach Area
Prepared by Redfin, the report outlines how West Palm Beach has raced past expectations to establish its new sales figures. For instance, the increase not just doubled the amount of sales from the same time last year. It also marked a 14 percent growth in median sales price from the fourth quarter of 2019. As such, the median price for luxury homes in the area soared past $1.8 million ($1,825,000).
The median number of days that a home spent on the West Palm Beach real estate market were also reduced. As opposed to clocking 161 days in Q4 2019, homes spent 115 days on the market in Q4 2020. The reduction in wait time also included buyers who closed their offers without a physical showing.
According to Redfin, most of these statistics were influenced by out of state buyers. This especially included wealthy New Yorkers, who initiated 56 percent of all home searches in the area through Redfin. But here’s where it gets interesting. While luxury realty noted remarkable improvements, sales for affordable West Palm Beach homes only grew by a modest 10 percent.
A Sunnier Aspect: Florida Real Estate is Gaining Popularity During the Pandemic
With its far-reaching consequences, the coronavirus (COVID-19) outbreak has affected various parts of life. From changing work practices to modifying entertainment options, the pandemic continues to redefine life as we know it.
This also holds true for the real estate sector, where COVID-19 has reshuffled homebuyers’ priorities front, right, and center. Primary requirements for typical families now include a newfound focus on work from home, remote learning, and in-home entertainment spaces.
This has also influenced other factors. Tiny living doesn’t have the same attraction that it enjoyed a year ago, while larger spaces have bounced back significantly. Home improvement projects have become a hot trend, while cost-saving has remained as important as it ever was.
The same phenomenon can be seen in affluent areas in Florida that offer large, multifunctional, and luxurious architecture. But the Sunshine State has another advantage. Thanks to its tax-friendly laws, the state is also enjoying massive attention from wealthy homebuyers.
It’s a big reason why those with ample resources are interested in exploring West Palm Beach real estate listings. In turn, they cannot wait to reap the benefits of comfortable weather, opulent properties, and absence of state income tax.
West Palm Beach May Continue This Streak in 2021
After going through the initial period of uncertainty in 2020, the real estate sector bounced back with newfound vigor. The record-low mortgage rates are a significant contributor to this movement. But competitive interest rates are not the only driver in place behind this increase. As mentioned above, finding comfort and entertainment within the safety of their own home is also motivating homebuyers.
The current sales statistics for West Palm Beach homes indicate the same trend. Since the area fits all of these requirements, it’s safe to say that it may continue this winning streak. If you have the means to own a home in the Sunshine State, exploring West Palm Beach would not disappoint.