Stretching from the Atlantic coast to Lake Okeechobee in the heart of Florida, and grazing the northern edges of the Everglades, Palm Beach County accommodates some of the most luxurious zip codes in the country. From Boca Raton at the southern boundary of the county to Jupiter to the north, the area bustles with opulent enclaves that offer the relaxed yet lavish lifestyle South Florida is known for.
Two urban retreats, however, seem to stand out from the rest. Coastal Palm Beach and Palm Beach Island are the true badges of affluence – and the sales for 2017 seem to have added a finishing glimmer to them.
“To some, buying a home in Palm Beach Island is a way of showing you are truly accomplished and successful,” said Isaac Klein, founding member of SipKlein real estate firm that serves both markets.
Here, where high-end vacations and day-to-day life blend, prices float higher than in the rest of the county, and have largely emerged unscraped from the rather calamitous hurricane season this year. Yet, sales this fall have dipped deeper than the usual bottom point for the season. The winter months, though, look promising.
“We will see a large increase in demand come January and should inventories not pick up the pace we will see a sellers’ market and even higher overall price per property compared to years past,” said Klein.
Sales have already picked up, Klein said, with wealthy buyers seeking to invest in second or third properties. But inventories remain low, hovering at the absorption rate, or the ratio between the homes snatched off the market and those available for sale. The nadirs and summits of inventories, however, come in a cyclical fashion, which follows the seasonal shifts in sales. Spring and winter are busy, and falls are quiet.
But it is not only inventories that shape Klein’s expectations for next year.
“As long as the stock market stays high, and economic sentiment stays positive and inventories stay low to normal,” he said, “we can expect a strong year of sales in the luxury market, notably in the areas that attract investment wealth like Palm Beach Island.”