Rich and famous are paying obscene amounts for homes in South Florida

The ongoing stampede of the rich and famous into South Florida is propelling real estate prices to new highs.

The average cost of a spread in Palm Beach — home to an ever-growing roster of celebrities and financiers — climbed to nearly $16 million in the first quarter of 2022, according to the Serhant South Florida Report issued Thursday.

Limited inventory and voracious demand pushed the average price of a Palm Beach pad up by 44% compared to the same quarter in 2021, the study found.

The quarter saw a slew of stratospheric trades — including the $45 million sale of a home belonging to a Jordanian princess, according to The Real Deal.

The median price of a Palm Beach house jumped from roughly $7 million in the first quarter of 2021 to nearly $10 million during the same period this year — a hike of 46%.

Median Palm Beach condo prices also skyrocketed over that stretch, surging from $1 million to about $1.6 million — an increase of 52% over just one year.

Serhant’s Director of Market Intelligence, Garrett Derderian, said the routine eruption of “competitive bidding wars” stoked the unprecedented numbers.

“The South Florida housing market had a benchmark first quarter as prices reached
record levels amid limited supply,” Derderian said in a release.

Parts of Miami also saw real estate sales continue to soar in the first quarter of the year — with Derderian noting that buyers were paying Gotham-level prices.

“Downtown Miami has seen an influx of new development condos constructed, attracting well-heeled buyers that are purchasing properties at Manhattan-like prices,” Derderian said.

The median cost of single-family homes in the area rose by 41% in the first quarter of 2022 to $1.3 million.

Greater Miami Beach saw single-family homes also hit record highs, with median prices up 19% to $2.5 million.

Derderian cautioned that South Florida’s dizzying ascent could slow in the coming months.

“As we move into the spring, we expect a deceleration of home appreciation
given the rapid growth over the past year-and-a-half, coupled with rising mortgage
rates that have increased faster than anticipated,” he wrote in the report.