Each year, Coldwell Banker releases The Report, a detailed overview of the current global luxury property market.
Data is gathered from trusted sources such as Wealth-X, Credit Suisse, The National Association of Realtors, among others.
We have paraphrased the key findings below to empower you as you explore the vibrant Jupiter and Palm Beach real estate markets in 2023.
Location continues to be the most important factor for luxury market properties, with additional weight placed on move-in ready homes. This is especially relevant for properties offering stunning water views and private sanctuary-like settings as they continue to generate high demand.
The dream home of 2023 is defined by indoor-outdoor living spaces, modern chef’s kitchens, breathtaking views, and quality construction materials. Properties in Jupiter and Palm Beach offer a unique combination of these features, further solidifying desirability for buyers.
Changes in demand in 2023 indicate a return to more normal market conditions after three years of sustained growth. Uncertainty has permeated the market following the Federal Reserve’s interest rate hikes in 2022 and 2023. Markets like Jupiter and Palm Beach appear to be searching for equilibrium as buyers balance reigning back with limited inventory.
Despite the fluctuating statistics, one thing remains clear – the investment allocation in luxury real estate is increasing. For example, despite a 5.8% dip in the US population with a net worth of $5+ million from 2021 to 2022, their wealth allocation in real estate and other luxury assets grew from 13.9% to 16.2% – a $362.4 billion increase. As we move away from the unprecedented sales, price increases, and demand of 2022, we expect to see a market normalizing rather than crashing.
Survey results indicate buyers are waiting for price decreases and struggling with a lack of choices that fit their criteria. Finding that perfect property and trying to negotiate with unwavering sellers also came up as challenges.
Listing challenges indicate sellers primarily struggle with high expectations and a lack of replacement homes. Especially sellers with low interest rates may not be motivated to refinance a new home, and are less likely to want to downsize.
The UHNW segment remains small in number yet controls a disproportionate amount of wealth, with the VHNW segment gaining ground in total wealth. The wealthiest spenders hold a considerable influence in the high-end residential sector, with this trend also mirrored in Jupiter and Palm Beach.
Predictions in 2023 indicate high-net-worth (HNW) individuals are likely to adopt more conscious spending patterns and future-proofing strategies. In contrast, Ultra-High-Net-Worth (UHNW) individuals continue to prioritize personal enjoyment and live-for-the-moment attitudes. A growing percentage of US-based individuals with a net worth of $5m+ own two or more properties, showcasing an increased allocation of their wealth toward real estate and other luxury assets.
Palm Beach leads the nation in proportion of sales in the top 20% while maintaining a lower average entry threshold price compared other luxury markets. The high dollar sales bring up the average entry threshold, which is still lower than some of the more developed markets. We can only expect prices to rise in Jupiter and Palm Beach with limited supply and increased demand from around the world.
JUP | Coldwell Banker offers a wide range of services to help you buy or sell a luxury home, including:
We are here for you to offer our local insights coupled with a global perspective.
If you are interested in learning more about how we can help you achieve your real estate goals, please contact us today. We would be happy to answer any questions you have and help you get started on your journey to buying or selling a luxury home in Jupiter or Palm Beach.
To dive deeper, please find the full report here:
Coldwell Banker Global Luxury Report 2023.
