South Florida real estate continues transitioning from pandemic-era extremes toward more balanced market conditions as 2026 begins, with inventory increasing approximately 30% across Palm Beach County according to local real estate professional Loodmy Jacques. This significant rise in available properties fundamentally changes dynamics for both buyers and sellers throughout the region, though Jacques emphasizes South Florida is not one uniform market, with areas like Delray Beach, Jupiter, and West Palm Beach each having distinct buyer demographics and price movements.
One prominent pattern involves sellers who remember what neighbors received for similar homes during peak years of 2021 or 2022 struggling to adjust to current pricing realities. Some homeowners choose not to sell rather than accept what feels like leaving money on the table. Jacques acknowledges this sentiment but presents clear reality: selling in 2026 requires proper pricing, professional marketing, and realistic timeline expectations, as immediate sales characterizing the previous boom period no longer occur. Homes still sell, but the process now takes longer and demands right strategic approach.
For buyers, current conditions present both questions and opportunities. Many prospective purchasers express nervousness about timing, concerned prices might continue dropping or they could lose value after buying. Jacques provides context by explaining normal market appreciation historically ranges between 3% to 6% annually, whereas COVID period saw unsustainable increases of 20% to 30%. Current market represents return to normalcy rather than crisis. Buyers who plan to stay in property five to seven years, can afford payments, and find suitable location actually benefit from current conditions, gaining negotiating power over repairs and closing-cost credits unavailable during seller's market frenzy.
Interest rate environment remains consideration, but Jacques advises against waiting for rates to drop, suggesting instead buyers focus on finding properties within budget meeting needs, with option to refinance later when rates improve. He notes some lenders offer programs reducing rates for initial years, providing time to adjust and position for future refinancing. Key recommendation removes interest rate anxiety from decision-making process and concentrates on whether property and payment structure work for individual situation.
With nearly 45% of Palm Beach County sales being cash transactions, financed buyers sometimes worry about competing ability. Jacques outlines strategies strengthening financing offers, including obtaining fully underwritten approval rather than just introductory pre-approval letters, eliminating financing contingencies and making offers more attractive to sellers. When combined with strong professional track record and quick response times, financed buyers effectively compete in current market.
Specific opportunities emerge in certain areas, with Port St. Lucie continuing offering value to buyers seeking newer single-family homes at more affordable prices. Area positions for growth through planned development and job creation, making attractive to both first-time buyers and investors priced out of closer-in markets. Jacques emphasizes approach for 2026 centers on education over transaction, acknowledging not everyone should buy immediately, particularly those uncertain about five-year plans or job stability. However, for those ready and qualified, he recommends working with professionals providing comprehensive analysis of comparable sales and helping establish realistic expectations in normalized market rewarding preparation and strategy.
