We’ve asked busy, top-selling agents from the Palm Beach area to weigh in with a forecast of the year ahead. Predictions abound, but optimism for the 2025 market in sunny South Florida Check out what our latest Real Estate Roundtable has to offer.
Christian Prakas
FOUNDING AGENT
SERHANT.
PALM BEACHES
I think we will see an increase over 2024 in transactional volume, but we still have some significant head- winds with the Fed cutting back on interest rate decreases and overall affordability in the SFL housing market with the taxes and insur- ance keeping people “stuck” in the homes they purchased pre-pandemic. The luxury market has been the hottest sector for us but sellers need to get realistic and stop living in 2022 pricing if they want to sell in a timely manner.
Chris Leavitt
DOUGLAS ELLIMAN
PALM BEACH
It was a slow fall and a slow holiday season. I kept telling my clients, ‘We need to get past the holidays and that things will pick up right after the new year,’ and that I feel we are back to the traditional season of selling between January through the end of April. Well, my prediction rang true but with an absolute vengeance. The week after New Year went off with a bang and we have been so busy and there has been so much activity in the past 10 days. If the past 10 days are any indication of the season to come, we are going to be in for a banner year.
Margit Brandt
PREMIER ESTATE PROPERTIES
PALM BEACH
Just when the Palm Beach market was reaching new heights and notching not one but two $150M +/- waterfront transactions in 2024, the election being decided and the renewed focus on Palm Beach as a result of the Winter White House at Mar-a-Lago and the presence of President Trump, has created a brand new flurry of attention, public relations, and newfound interest in the market. We have yet to see how the broader economy ultimately reacts to the incoming Administration, but if the past 2 months are any sign, there is still a lot of potential for the Palm Beach market to transact more relative overall volume and reach new pricing heights in 2025. When you add in the more frequent presence of successful innovators like Elon Musk and other tech leaders visiting Palm Beach with the investment coming from Steve Ross/Related Ross into the infrastructure (which will allow for much more expansive corporate relocation at scale), there is perhaps unprecedented momentum and the kind of enthusiasm from people all over the globe which we haven’t seen since the pandemic. What that momentum and enthusiasm means, in terms of supply and demand, is what will be determined. Organic, genuine interest and an uptick in showings are one thing — but offers, contracts, closings, and the flow of capital are the unknown. We are cautiously optimistic about where we go from here.
Dana Koch
THE CORCORAN GROUP
PALM BEACH
With the anticipated interest rate cuts, continued tax benefits, and pro-business environment in this area, the real estate market headwinds that we have been feeling for the last 2.5 years will turn into a market tailwind. There will be continued interest in the Palm Beach market. Properties may be taking longer to sell, but I’m much more optimistic now than I was a year ago. There will be opportunities for homes or condos that require work for Buyers looking to create value. Most Buyers do not have the bandwidth to take on a project, so they are willing to pay a premium to a Seller for their time and “sweat equity” when they properly renovate a property. For Sellers, prices are at or near their all-time highs, so if you price your property correctly, there is a good chance that you will be able to reap the rewards in a sale. The pandemic market is over, so proper pricing is extremely important. If a property is incorrectly priced, then there is a good chance that it will sit on the market for an extended period of time. With that being said, the market is healthy and there continues to be a strong appetite for Palm Beach properties.
Darlene Streit
THE CORCORAN GROUP
PALM BEACH
I’m actually quite excited about 2025 and believe it will be an exceptionally good year for South Florida real estate. Things are looking very positive here in Palm Beach, I’ve been beyond busy with buyers and sellers, and anticipate the momentum will continue building as the year goes on. Even though inventory is a bit limited, buyers are getting more accustomed to interest rates, so we’ve been seeing much more movement on properties that are currently available. I’ve also noticed an even bigger spike of interest in the Palm Beach area recently, and that may be due to an improved economic outlook that’s encouraging buyers and sellers to move forward. Palm Beach County continues to be a very attrac- tive market for relocation, and the demand only keeps rising. So I’m extremely optimistic about our market’s potential in 2025 and the new opportunities that buyers and sellers will have this year.
Alex Platt and Margot Platt
COMPASS
BOCA RATON AND DELRAY BEACH
As we enter 2025, the Palm Beach real estate market shows signs of resilience, though not without its challenges. Throughout 2024, the market experienced fluctuations, with pricing playing a crucial role in driving transactions. Accurately priced properties are attracting buyer interest and selling, while those mispriced or requiring significant updates are lingering on the market longer. Today’s buyers are more cautious, prioritizing sound financial decisions over hasty purchases. This shift has led to a more restrained market environment, where well-priced, move-in-ready homes are in demand. Despite these hurdles, there remains a pool of buyers, particularly in the high-end segment, which continues to show some strength. Looking ahead, the start of 2025 may bring opportunities, but success will depend on strategic pricing and offering quality properties that align with the needs of today’s discerning buyers. With these strategies, the Palm Beach market could maintain its appeal, though it faces a more tempered outlook compared to previous years.
Todd Peter
SOTHEBY’S INTERNATIONAL REALTY
PALM BEACH BROKERAGE
The overall mood in Palm Beach is very positive. Demand for real estate at all price points seems to be quite strong heading into season. Palm Beach has long been known as a winter retreat for the affluent in the Northeast, but it has blossomed into a spectacular year-round destination post-Covid for wealthy buyers from around the country. Buyers are still willing to pay up for turnkey, renovated properties, and new pricing records are being achieved for waterfront properties on the ocean and the Intracoastal Waterway. In 2024, Frances and I were fortunate to have sold two of the top seven sales of the year in Palm Beach. Our sale of 740 Hi Mount Road set a new record for a north-end intracoastal home, and our sale of 940 North Lake Way set a new record for a north-end Intracoastal lot. We are hopeful the initial strong demand for Palm Beach real estate translates into another banner year.
This article appeared in Behind The Hedges’ January 2025 edition inside Dan’s Papers. Click the link to read the full digital edition.
