Some recent reports say there is a housing crisis brewing in Florida. Redfin reported the number of unsold homes in the Sunshine State rose almost 23% year-over-year in January. What’s to blame? A decrease in homebuying, a surge in new post-pandemic real estate, intensifying natural disasters or the increase in associated costs, such as insurance and HOA fees? We asked real estate agents in the Palm Beach area to hone in on that market, which, like the Hamptons, can tend to buck the trend due to the high-end, exclusivity of the market. What’s the status of the market in the Palm Beaches?
Michael Costello
THE COSTELLODEITZ GROUP
COMPASS
PALM BEACH
I think people need to beware of the scary headlines. The sky is not falling. There is not a housing crisis, especially in Palm Beach. It’s certainly a different market than it was in 2021-2023. There are more listings, and buyers are definitely being more deliberate when looking to purchase real estate. I don’t think anyone would disagree that it’s a buyer’s market. Having said that, there are great opportunities for buyers at the moment. We are seeing “good deals” on entry-level and mid-level price points. The high-end and trophy properties are still commanding record prices. Overall, Palm Beach remains strong. There is no shortage of buyers wanting to come to Palm Beach; the quality of life here is second to none. Like the Hamptons, people don’t want to leave when they spend time here.
Katie Weisz
ONE SOTHEBY’S INTERNATIONAL REALTY
DIRECTOR OF SALES FOR ALBA PALM BEACH
Palm Beach County continues to be one of the strongest and fastest-growing real estate markets, not just in Florida but nationwide. Particularly the luxury market is stronger than ever with year-over-year increases in single-family homes and condos. Unlike other regions facing slowdowns, our market continues to thrive, driven by a wave of corporate relocations, the expansion of top-tier hospitals like Cleveland Clinic, a new Vanderbilt University campus alongside world-class dining, entertainment and idyllic weather. Especially during the height of our season where Alba Palm Beach alone achieved $20 million in sales in just 20 days — attracting buyers with amenities like coveted day dock boat slips and the only townhome floorplans directly on the Intracoastal spanning three floors with private terraces and pools. Desirable areas like Northwood are seeing increased development and demand, particularly in the luxury sector, because of its proximity to Downtown while still having a neighborhood charm with access to the Intracoastal. We’re seeing that buyers are acclimated to current mortgage rates and still see the long-term investment value and market stability in Palm Beach County.
Dana Koch
THE CORCORAN GROUP
PALM BEACH
The market in Palm Beach is quite active. Palm Beach is a one-of-a-kind, luxury market that can be immune to some of the things that the rest of the Florida real estate market is dealing with, but we do have more inventory than we have had over the last five years. The main reason is because a large portion of our inventory is overpriced and that is why homes are sitting on the market for an extended period of time. So, in reality, we still have a lack of quality products. Homes are still trading at or near all-time highs, but overall, we don’t have the same sense of urgency that we had during Covid. Real estate has always been a sport in Palm Beach, people like to trade up and trade down. In a fast-moving market like COVID, people were unable to do so. Now that there is more of a sense of normalcy, buyers have the ability to make informed decisions and do their due diligence in a timely fashion. Many people who bought “placeholders” during COVID are now looking to upgrade their housing situations. With that being said, interest rates definitely play a factor even in a market like Palm Beach. For years, buyers felt like they were getting “cheap money” and now that there are higher rates, it has not only affected their wallets but also their psyche.
John Wilson
DOUGLAS ELLIMAN
PALM BEACH
The market in the Palm Beaches remains extremely active, and we are having a great season. Palm Beach Island is unique — there are only so many homes, and demand is high. While summer is usually slower, last year saw ultra-wealthy buyers still eager to purchase, with sales ranging from $70 million to $100 million. Before the election, the market slowed in a “wait-and-see” mode, but after, activity surged and transactions continue at a strong pace. West Palm Beach, now called “Wall Street South,” is attracting hedge funds and asset management firms. Iconic developers from New York and Florida are investing heavily in new projects, with eight developments breaking ground or underway and having strong demand from buyers. This demand stems from Palm Beach’s soaring prices, making West Palm Beach an attractive alternative. The city is undergoing a renaissance with new restaurants, retail and unmatched walkability — you can park and walk everywhere. With strong demand and incredible weather, I believe the time to buy in West Palm Beach is right now.
John Greene
DOUGLAS ELLIMAN SALES DIRECTOR OF THE RITZ CARLTON RESIDENCES, PALM BEACH GARDENS
While certain segments of the real estate market are experiencing softening, The Palm Beaches remain uniquely resilient. Inventory levels have risen, impacting absorption rates and pricing, and buyers are approaching the market at a more measured pace compared to previous years. Global economic conditions continue to influence purchasing decisions, fostering a “wait and see” sentiment. However, the ultra-luxury market in the Palm Beaches tells a different story with buyers being less price-sensitive and more focused on prime location, exceptional quality of construction and high-end finishes. We’re seeing a strong demand for high-end single-family homes and luxury condominiums with a preference for upper-tier new construction. At The Ritz-Carlton Residences, Palm Beach Gardens, this trend is evident. Affluent buyers transitioning from estate homes, many nearing two decades in age, seek to simplify and elevate their lifestyles through “right-sizing,” favoring a highly serviced, amenity-rich living experience over the burdens of managing a large estate. The Estate Collection, a designation from The Ritz-Carlton unique to this property, exemplifies this demand offering estate-style residences with expansive layouts, multiple ensuite guest bedrooms with private balconies, spacious walk-in pantries and laundry rooms, and private dens— enhanced by world-class services and a private marina along the Intracoastal Waterway.
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