Distinctive Palm Beach Properties
 
 
Zimmermans
 

Quick Search

 
 

Trying to keep up with Palm Beach real estate?

Posted On: 10-18-2015

By Darrell Hofheinz

Daily News Staff Writer

What can Palm Beach condo and house hunters expect to encounter over the next eight months? Here are some talking points that are sure to surface at this season’s round of cocktail parties. Because in Palm Beach, real estate is always a topic of conversation, whether one is buying, selling or just observing from the sidelines. Cheers!

* We are not alone: Palm Beach shares many real estate issues, including rising prices and limited inventory, with luxury housing markets across the country. The island’s housing market have parallels not only in the Hamptons and other parts of New York, but also Telluride, Colo.; Jackson Hole, Wyo.; Greenwich, Conn.; Beverly Hills, Calif.; and the like. Like Palm Beach, their real estate markets all were slowed by the same economic woes, and they rely largely on the same customer base, lately led by hedge-funders and other billionaires for whom “financier” seems to be the best description.

But Palm Beach has an advantage that many of those other areas do not: Florida’s favorable tax picture — including the crucial lack of a state income tax — and homestead laws that keep property taxes manageable for those who establish their primary residence here. With other states hiking taxes, many Palm Beach real estate pros and financial planners expect to see more buyers who aren’t just shopping for a warm-weather retreat but instead want a primary tax shelter. The fact that town officials consistently work to avoid property tax increases also is seen as a plus.

»Related: Smoother sailing? Housing market appears to be stabilizing after years of volatility

* Shhhhh: Off-market deals have always been a part of privacy-prizing Palm Beach, where everything is said to be for sale, depending on the right offer. But with inventory limited, more agents and brokers are working behind the scenes to match buyers with potential sellers. Calling a homeowner with an irresistible offer has sold many an off-the-market house over the past two years.

The highest-dollar sale so far this year, in fact, involved a property that wasn’t listed in the local multiple listing service: broker Lawrence A. Moens put together March’s private deal in which Dwight and Martha Schar’s landmarked Casa Apava on the South End to hedge-funder Paul Tudor Jones II for a recorded $71.2 million. The deal was the third-highest single sale ever recorded on the island.

* Big-bucks listings: Speaking of high-dollar properties, house hunters starting a search today will find 17 MLS-listed properties priced at $24 million or more. Compare that number to two years ago at this time, when there were just nine listings in that range. Leading the list is broker Christian Angle of Christian Angle Real Estate’s $84.5 million listing for an under-construction mansion at 1071 N. County Road.

* What price dirt?: As the rush for land to accommodate new houses has driven up land prices, it’s also hit developers’ profit margins, because pricing a new house to be built on speculation begins with the cost of the dirt. On the North End, spec houses on average-size lots sold last season at prices bracketing $6 million — and that range is likely to rise as land values increase. These days, it’s impossible to buy an outdated North End house on a buildable lot for less than $2 million.

* Boosting the stock: New construction may cause headaches for neighbors and drivers, but the thrill of the new is giving a psychological boost to homebuyers and sellers, brokers agree. All that building also is replacing the island’s aging housing stock with state-of-the-art homes. They not only boast higher elevations, thanks to new flood-zone regulations, and better storm-water drainage. They also meet today’s strict building codes. The result? The island’s overall housing stock is becoming more hurricane-resistant than ever.

* Outside influences: Although many residents think of Palm Beach as heaven, the island and other luxury markets aren’t immune to global headaches. Home prices may level out this season if buyers tighten their fists amid concerns of what’s going on across the bridges — Wall Street jitters, unrest in the Mideast and worries about the global effects of troubled economies in China, South America and other areas. As one longtime Palm Beach real estate broker said this month: “We’re so tied to the world economy, even in little Palm Beach. I think buyers are a little more cautious, but sellers are still achieving their goals. We’re getting closer to a more healthy, more reasonable market for both buyers and sellers.”

 

 

 

 

Source: Darrell Hofheinz, October 18, 2015, Palm Beach Daily News

News Categories

Zimmerman Douglas Elliman

340 Royal Poinciana Way, Suite 318
Palm Beach, FL 33480

Jacqueline A. Zimmerman (561) 906-7153 Direct jz@PalmBeachProperty.com

Adam M. Zimmerman (561) 906-7152 Direct az@PalmBeachProperty.com

(561) 655-8600 Main Office

 
www.DistinctivePalmBeachProperties.com

The Definitive Source for Palm Beach Real Estate

Jacqueline A. Zimmerman(561) 906-7153pAdam M. Zimmerman(561) 906-7152pMain Office(561) 655-8600
Douglas Elliman, Licensed Real Estate Broker | 340 Royal Poinciana Way, Suite 318, Palm Beach, FL 33480


house

Equal Housing Opportunity

Privacy Policy | Terms & Conditions

Copyright © 2017. All Rights Reserved

No warranty or representation, express or implied is made as to the accuracy of the information contained herin, and same is submitted subject errors, omission, change of price rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals.