Where You Live & Work Matters! |
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GOOD NEWS!
It's a pleasure to start out with some good news in these uncertain times!
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On a NATIONAL level, according to the National Association of Realtors’ chief economist, Lawrence Yun, home sales and home prices are increasing by double digits, with homes moving off the market in record time! Yun said “home sales traditionally taper off toward the end of the year, but in September, they surged beyond what we normally see during this season.” Yun attributes this jump to “record-low interest rates and an abundance of buyers in the marketplace including buyers of vacation homes given the greater flexibility to work from home.”
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On a STATE level, Florida Realtors’ data showed that “sales, median prices, new pending sales and new listings rose year-over-year. Single-family sales up 22%; condo sales up 25%--and in a milestone, 2020 single-family sales over the last 9 months beat the same timeframe in 2019”. According to Florida Realtors’ chief economist, Dr. Brad O’Connor, “all indications are that we will continue to see strong sales this fall as mortgage interest rates will almost certainly remain at or near low records.”
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On a LOCAL level, new market reports detailing real estate activity in Broward, Palm Beach, Martin and St. Lucie Counties show “closed sales skyrocketing by double-digit increases. It’s safe to say that the pandemic hasn’t deterred buyers from purchasing homes", said Jarrod Lowe, President of Broward, Palm Beaches and St. Lucie Realtors. This means that if your have been thinking about listing your home, now is the time to go for it! Median days on the market are low, and current circumstances can help sellers capitalize on the high demand from buyers across the board.
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In Palm Beach, the inventory of available single family homes is at a seasonal low, with many being scooped up over the summer or leased for fantastic seasonal prices. The majority of the homes that sold were from $5 million up to $70 million…making this an unprecedented sales year.
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TRENDS
What is driving this incredible influx of people to Florida? Well, for starters, many feel that the area in the counties of Palm Beach, Martin and St. Lucie Counties are a safer environment to live in during this pandemic. With the ability to work from home, the leash that kept many people close to major urban cities in the Northeast has been loosened, and remote working has become the norm for many firms and high-wage white collar employees. Many individuals already have vacation homes in Florida and can easily adapt to working here.
Secondly, the available Florida tax advantages (no state income tax) for individuals and corporations makes living in New York, New Jersey and Connecticut more and more undesirable. Additionally, dense urban living is made more difficult by long commuting times for suburbanites, public and private schools are harder to access and the need to be near major airports for business travel has diminished as air travel has been so restricted.
Third, with the ongoing COVID pandemic unlikely to be under control for perhaps a longer time than initially thought, people feel safer in South Florida where there is a sense of space, year-round good weather and many outdoor venues available for dining, cultural and sporting events and family activities.
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MOVING TO FLORIDA!
Many hedge funds, private equity firms, investment banking groups and law firms are taking the step to open their headquarters or large branch offices in South Florida. While many firms have, in the past few years, leased spaces up to about 5,000 sf, now the trend is to go big.
According to Kelly Smallridge, president of the Development Board of Palm Beach County, the COVID pandemic and the desire by companies to exit dense, urban areas have accelerated the expansion trend to Palm Beach County.
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The latest move by Elliott Management Corp., a $41 billion hedge fund based in New York, is the “golden tip of the iceberg,” Smallridge said. With immediate plans to sublease 7,100 square feet of space at Phillips Point overlooking the Intracoastal Waterway, the firm has plans to move permanently to at least 25,000 square feet. According to local realtors, that move will most likely be to 360 Rosemary, a new office building under construction by Related Cos. at Rosemary Square, due to be completed in 2021.
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This trend has sparked other financial firms to make plans for the move to West Palm Beach. Point72, a Connecticut-based venture capital find is in the market as are many investment banking firms including Goldman Sachs.
Other firms such as Citadel Securities, owned by Palm Beach billionaire Ken Griffin, are eyeing a permanent move to South Florida. During the height of the pandemic, Citadel took over the Four Seasons Hotel in Palm Beach as their trading floor, but now plan to most likely lease 30,000 to 50,000 square feel of office space in Miami on Brickell Avenue. Others interested in South Florida include New Yorker billionaire Carl Icahn who is planning to move his asset management firm and home to Miami. Undoubtably, there will be more moves and we will keep you updated on this growing commercial trend.
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October was a busy month for Ambassador Realty with many new listings for sale and lease especially in the West Palm Beach downtown condominium market. Ginger Gowing, our downtown condo specialist, said “several listings sold or were leased and closing prices were near or at the asking price”. This tight market is enticing those contemplating selling to jump into the fray and sell while interest rates are so low and more out of state folks are moving into the area.
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Take Note: Due to many banks and mortgage professionals working remotely, and as a result of the unusual activity, we are finding mortgages are taking approximately 2 months to close…if everything is perfectly submitted.
On the commercial side, multifamily properties are very hot and many are being turned into short term rental units that are placed on internet sites that target short-term vacation rentals.
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Sally Kimball was pleased to lease an entire building at 501 Palm Street in downtown West Palm Beach to B. Peterson, a resource center for designers, architects and interior decorators. Moving from Palm Beach to the burgeoning “design district” surrounding and along Dixie Highway, B. Peterson is just up the street from the Norton Museum and HIVE Headquarters.
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B. Peterson represents the premier resources for the finest furniture, fabrics, lighting and luxury accessory products. They cater to exclusive design and architect professionals serving the most discerning clientele and are known for assisting designers with their exceptional client service. Benjamin Peterson, founder, said that the new showroom will be open for business early in November. |
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Perhaps the Oct. 25th New York Times said it best” “Art Finds a Way—Even the in the darkest of times, art endures and inspires—and that is no less true now, as a pandemic upends human existence.”
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Locally, the bad news is that every cultural venue and group has been upended as schedules change, tours are cancelled, health and safety measures are put in place and alternate plans are reviewed and balanced against ever shrinking budgets and staff. |
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The GOOD news is that the Kravis Center and other entertainment and art venues have planned different types of activities and innovative strategies that will enable their patrons and supporters to continue to be involved and entertained during this pandemic.
OTHER VENUES:
According to article by Jan Sjostrom in Palm Beach Daily News:
"The Society of Four Arts has rolled out the fullest season with nearly everything it featured in pre-pandemic times. But strict COVID-19 precautions, including socially distanced seating and mask wearing, will be followed and reservations are required."
"Palm Beach Opera has taken the biggest leap, replacing its season at the Kravis Center with a three-opera, semi-staged, socially distanced festival in February at the outdoor iThink Financial Amphitheatre at the South Florida Fairgrounds in West Palm Beach."
The Chamber Music Society of Palm Beach’s plans have gone through several incarnations, opening with two performances in November and December livestreamed to members.
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A TIME TO BE THANKFUL!
Thank goodness for November! What would we do without a month—especially this year - that helps us focus on being grateful for the many blessings that we have and remind us to do something kind and useful constructive for those who may not be as fortunate.
We are so grateful for your business, encouragement, suggestions, and support. We truly THANK YOU and wish you, your friends and families a Happy, Healthy and Safe Thanksgiving!
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SALLY KIMBALL
BROKER/OWNER
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PLEASE BE SAFE, STAY WELL AND WE LOOK FORWARD TO SEEING YOU SOON! |
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ONE CITY PLAZA
801 S. Olive Ave., Ste. 119
West Palm Beach
FL 33401
Office: 561.557.7662
Email: info@ambassadorrealtycorp.com
Web: www.AmbassadorRealtyCorp.com
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DISCLAIMER: The materials on this newsletter have been prepared by Ambassador Realty Corp only for general informational purposes. We assume no responsibility for the accuracy or timeliness for any information provided herein or by any linked site or publication. |
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