November 30, 2023

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Billionaires push Florida home prices to all-time highs

Billionaires push Florida home prices to all-time highs

Eric Schmidt, former CEO of Google, has purchased more than six homes in the Sunset Islands, with investments exceeding $140 million. (Getty Images)

the prices Subordinate Captivity in it South Floridaespecially in Palm Beach And Miami Beachexperience an increase while Billionaires They continue to acquire properties in the area. According to data provided by Douglas Elliman and Miller Samuel, the average selling price in Palm Beach It exceeded $20 million at the end of the third quarter, a record high in the country.

This increase is partly due to the migration of wealthy individuals from countries with high tax rates e.g New York And California. The growing economy in Florida The tendency of these buyers to make cash payments means that prices in the luxury market are less affected by rising mortgage rates. Additionally, inventory shortages, especially in prized beachfront locations, are intensifying this price increase.

Jonathan MillerCEO Miller Samuel explained this Palm Beach It only had 53 homes available on the market at the end of the third quarter, which represented a 61% decline compared to pre-pandemic levels. As a result, sales fell by 31% last year. He added that real estate brokers expect the lack of inventory to put upward pressure on prices CNBC.

The dollar value of single-family home sales in Miami Beach saw a 62% increase in the third quarter due to transactions exceeding $10 million. (Greater Miami Convention and Visitors Bureau)

This high number does not discourage billionaires who invest in real estate in the region. For example, in July, a beach house was built in Palm Beachwhich previously sold for $7.4 million, was acquired for nearly $50 million.

There is a recent case of this trend Eric Schmidtformer CEO of Google and one of the 100 richest people in the world, has acquired more than six homes in the Sunset Islands, with an investment of more than 140 million US dollars.

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The impact of this influx of millionaires on… Palm Beach As it appears in Miami Beach. Although the number of single-family home sales decreased by 3% in the third quarter, the dollar value of sales increased by 62% due to a rise in the number of transactions exceeding $10 million.