Prices in Florida’s ultra-rich Palm Beach community hit an all-time high in the second quarter, as brokers grappled with a record-low number of mansions to sell.According to Douglas Elliman, the average price for a single-family home in Palm Beach hit $11.7 million in the second quarter, up 38 percent from a year ago and setting a new high. Brokers say the influx of wealthy hedge funders, private equity chiefs, and other finance executives from New York and other financial hubs has shifted demand and prices in a market already known for its obscene wealth. “This is a whole reset of the market,” said Jonathan Miller, CEO of Miller Samuel, an appraisal firm. “We’re now seeing $50 million transactions practically weekly, which is a major change. And it appears to be sustainable,” Miller says. Prices in Palm Beach are now nearly on pace with Manhattan, with the price-per-square-foot in the second quarter reaching $1,500, close to Manhattan’s $1,545. Buyers are willing to pay even at record-high costs. The number of single-family home sales in the second quarter increased by 90% over the same period last year, when buying in Palm Beach and Florida was already ramping up owing to Covid migration. The result is a “mansion crisis,” as demand outstrips supply, according to brokers. According to Miller Samuel, there is presently around a one-month supply of properties for sale in Palm Beach, which is a record low. There were only 25 homes for sale at the end of the second quarter, with the real number likely to be lower due to homes already under contract or on their way to contract.Brokers say they are now going door-to-door, hoping to find buyers willing to buy.Christopher Leavitt, a top broker with Douglas Elliman in Palm Beach, said he’s had to get creative in convincing estate owners to sell, helping those owners find buyers. “It’s no longer just about MLS listings and selling a house,” Leavitt said. “The finance industry — and its shift from New York — is the fundamental driver of the Palm Beach growth.” While many hedge fund billionaires and private equity chiefs relocated to Palm Beach during the pandemic, the growth of large-scale office towers and amenities in nearby West Palm Beach means that many are staying and expanding their operations there. “This is the tip of the iceberg,” he said.Scott Shleifer, a partner at Tiger Global Management, purchased a $122.7 million mansion in Palm Beach in February. The same month, hedge fund billionaire David Tepper paid $68 million for a spec-mansion in Palm Beach. Hedge investor Igor Tulchinsky purchased a $39.5 million home in North Palm Beach. A private island on Palm Beach just sold for $85 million to a speculator. Todd Michael Glaser, the developer, said he and his partners aim to remodel the home and relist it for a higher price as soon as possible, calling it a “once-in-a-lifetime opportunity.”/n
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