The ongoing stampede of the rich and famous into South Florida is propelling real estate prices to new highs.
The average cost of a spread in Palm Beach — home to an ever-growing roster of celebrities and financiers — climbed to nearly $16 million in the first quarter of 2022, according to the Serhant South Florida Report issued Thursday.
Limited inventory and voracious demand pushed the average price of a Palm Beach pad up by 44% compared to the same quarter in 2021, the study found.
The quarter saw a slew of stratospheric trades — including the $45 million sale of a home belonging to a Jordanian princess, according to The Real Deal.
The median price of a Palm Beach house jumped from roughly $7 million in the first quarter of 2021 to nearly $10 million during the same period this year — a hike of 46%.
Median Palm Beach condo prices also skyrocketed over that stretch, surging from $1 million to about $1.6 million — an increase of 52% over just one year.
Serhant’s Director of Market Intelligence, Garrett Derderian, said the routine eruption of “competitive bidding wars” stoked the unprecedented numbers.
“The South Florida housing market had a benchmark first quarter as prices reached
record levels amid limited supply,” Derderian said in a release.
Parts of Miami also saw real estate sales continue to soar in the first quarter of the year — with Derderian noting that buyers were paying Gotham-level prices.
“Downtown Miami has seen an influx of new development condos constructed, attracting well-heeled buyers that are purchasing properties at Manhattan-like prices,” Derderian said.
The median cost of single-family homes in the area rose by 41% in the first quarter of 2022 to $1.3 million.
Greater Miami Beach saw single-family homes also hit record highs, with median prices up 19% to $2.5 million.
Derderian cautioned that South Florida’s dizzying ascent could slow in the coming months.
“As we move into the spring, we expect a deceleration of home appreciation
given the rapid growth over the past year-and-a-half, coupled with rising mortgage
rates that have increased faster than anticipated,” he wrote in the report.