Palm Beach, Florida’s Market Cooled but Stayed Strong

By Raymond Fernandez

Originally from New York, I relocated my family to South Florida 20 years ago. Knowing that we wanted to live in Florida but not where exactly, we did a thorough investigation of the entire State and consider ourselves fortunate that we decided on the exact right place for us.... South Florida.

Reading only the headlines about Palm Beach, Florida’s real estate market can make it seem like things are slowing down worryingly. They’re not.

When you actually look at the August numbers for single-family homes, the story is a lot more interesting, and a lot more encouraging, than a simple slowdown.

Let me walk you through what I’m seeing.

Sales slowed, but the slowdown is seasonal. In August, 1,112 single-family homes closed. That’s only about 2% below August of last year, so we’re still tracking close to last year’s pace. The bigger shift is against the spring and early summer, when we were closing more than 1,400 homes a month. We’ve clearly come down from that, but when I look back, we saw the same kind of late summer dip last year too. This is seasonality doing what it always does, not a market losing its footing.

Fewer sales, but far more money moving. This sounds interesting. Even with fewer closings, total dollar volume hit $1.4 billion, up 25% over last year. That suggests activity is concentrating in higher-priced homes, which is a genuinely healthy sign for where this market is headed.

Prices eased off the peak but stayed strong. The median single-family price landed around $650,000. That’s down from the all-time high of $700,000 we hit back in June, but it’s still a strong number, especially heading into the slower season. Compared to August of last year, when the median was $630,000, we’re up 3.2%.

In fact, every month in 2026 has been higher than the same month in 2025. To put the bigger picture in perspective, back in January 2020, the median sale price here was $363,000. We’re now roughly 80% above that. That is a healthy market by any measure.

Inventory tightened all year long. Recent data show 4,345 active single-family homes on the market, down a striking 24% from this time last year. Inventory has been steadily tightening all year. Back in April, we had more than 5,300 homes available. New listings are down as well, with 1,360 in August, about 7.4% fewer than last year. We’re simply not seeing a flood of new homes come onto the market. If anything, we’re seeing less.

Buyers are still writing contracts. Even with the slower sales pace, buyers remain active. We had 1,126 new pending sales in August, up 1.6% over last year. So while closings have come down, demand hasn’t gone anywhere. People are still making moves, creating a market with real opportunity on both sides.

If you’re selling, price it right from day one. Prices have cooled a little from the June peak, but they’re still strong compared to last year, and with nearly 25% fewer homes on the market, you’re facing less competition than you have in a long time. The most important thing you can do is price your home correctly from day one. Chasing the market lower is what gets sellers in trouble here, and it’s the one mistake you most want to avoid. Price it right at the right time from the start, and you’ll capture the full value your home deserves.

If you’re buying, you have a little more room. Compared to the June peak, you’ve got a bit more breathing room now, and that’s a real relief after how tight things have been. Inventory is still limited enough to keep it competitive, so the strategy hasn’t changed entirely. When a home is priced right, be ready to move on it.

Let’s talk about what this means for you. These are just the facts, and they show Palm Beach, Florida, has cooled from its highs while staying strong and healthy. Sales are near last year’s levels, prices are up, and money is flowing into higher-priced homes, which is a bullish sign for the long term. The market changes every day, and the right strategy depends on what you’re trying to accomplish.

If you want to know what these numbers mean specifically for you, reach out. Call or text me at (561) 781-7821, email me at info@livinginpalmbeachfl.com, or visit livinginpalmbeachfl.com. I’d be honored to help you make your next move.