The luxury real estate market in Palm Beach Gardens could be the nation’s hottest.
Brokerage firm Redfin released a report last month showing that the value of the priciest 5 percent of properties has barely increased since last year, but a few key markets proved to be the exception.
Palm Beach Gardens’ luxury sales prices are up 42 percent from last year, according to Redfin, making it the top mansion market in the country. The average sale price for a Palm Beach Gardens luxury property has risen to more than $2.5 million.
Rob Thomson, owner of Jupiter-based real estate firm Waterfront Properties, told the Palm Beach Post this growth is due to wealthy baby boomers who are moving down from other states.
“It’s a combination of an abundance of buyers and no inventory,” Thomson said. “The number of people who are at an age to retire and come here is at an all-time high, and the inventory is at an all-time low.”
The rest of the Palm Beach Gardens market (the other 95 percent of homes) grew 10 percent from last year, with homes averaging $399,000.
In the list of top U.S. luxury markets, the northern Palm Beach County city was followed by other popular destinations where people buy second homes: Bend, Oregon (33 percent); Huntington Beach, California (27 percent); Boulder, Colorado (26 percent); Bellevue, Washington (25 percent); and San Francisco (24 percent).
Delray Beach in southern Palm Beach County also made the top 10 list, with 23 percent luxury market growth.
Meanwhile, other South Florida cities saw some of the biggest losses in mansion prices, including Fort Lauderdale (down 23 percent), Stuart (down 14 percent), and Boca Raton (down 4 percent).
(Image via Flickr/Sherwood CC)