Palm Beach County Market Report – January 2026

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Palm Beach County Market Report

January Update | December Data & Year-End Reflection

I remember sitting in economics class years ago thinking, when will I ever actually use this?
Turns out — Palm Beach County real estate is a textbook case of supply and demand.

As we moved into the heart of season, that principle played out clearly. After carrying a significant amount of pent-up inventory through the quieter months, the market came back to life once October and November arrived and seasonal residents returned. The result? Demand caught up — and in many segments, began to outpace supply.

Supply, Demand & Inventory Trends

By the close of December, inventory declined across nearly all price points, particularly for single-family homes:

  • Under $999,000, inventory dropped below five months, shifting firmly into seller-leaning territory
  • The luxury segment also tightened, reducing to approximately 8.2 months of inventory — still technically a buyer’s market, but only slightly so and trending healthier

The condo and townhome market is also showing signs of forward momentum. While activity hasn’t returned to the strength we saw in prior years, the recent uptick is notable — especially given the headwinds of new regulations, structural engineering inspections, increased dues, and assessments. These adjustments were necessary, and the market appears to be absorbing them and moving in the right direction.

Buyer Composition & Financing

Cash continues to be a defining characteristic of our market. Approximately 42% of all Palm Beach County sales are cash transactions, a level that has remained remarkably consistent and continues to provide stability across pricing tiers.

Economists are also projecting a solid year ahead, with interest rates expected to remain relatively stable for the time being — giving both buyers and sellers a clearer planning horizon as we move forward.

A Look Back at 2025

Last year was anything but predictable. The first four months of 2025 were extremely active, followed by a noticeable slowdown beginning in April and stretching through the summer — a pattern that felt especially pronounced in Palm Beach County.

What’s most interesting, however, is how the year ended: despite the summer lag, the market posted slight year-over-year growth overall. December closed with a higher average sales price, aligning perfectly with declining inventory and increased activity in the luxury segment.

It was an encouraging way to close out a challenging year.

Looking Ahead to 2026

As we begin 2026, there’s a renewed sense of momentum — and optimism. With severe winter weather impacting many parts of the country, Palm Beach County is once again benefiting from both our climate andour lifestyle.

You could say the temperatures are rising — and so is the market.

We’re already seeing strong buyer interest, increased showing activity, and a wave of new luxury inventory preparing to come to market. Our team, The Amy and Noreen Team of Lang Realty, has expanded to meet that demand, ensuring we’re well positioned to guide both buyers and sellers through what’s shaping up to be a dynamic year ahead.

After a year that tested patience and adaptability, 2026 is starting with energy — and we’re already feeling the heat.