South Florida's real estate market is undergoing a significant transition in 2026, moving away from the extreme conditions of the pandemic era toward more balanced dynamics. According to real estate professional Loodmy Jacques, inventory has increased by approximately 30% across Palm Beach County, fundamentally altering the landscape for both buyers and sellers.
One of the most critical insights for market participants is understanding that South Florida is not a single, uniform market. Jacques emphasizes that what happens in Delray Beach differs significantly from Jupiter or West Palm Beach, with each area exhibiting distinct buyer demographics and price movements. This regional variation requires localized knowledge for successful transactions.
Sellers face a particular challenge in adjusting their expectations. Many remember the peak prices their neighbors achieved in 2021 or 2022 and struggle to accept current market valuations, sometimes choosing not to sell rather than what they perceive as leaving money on the table. Jacques advises that successful sales in 2026 require proper pricing, professional marketing, and realistic timeline expectations, acknowledging that the immediate sales characteristic of previous years have largely disappeared.
For buyers, the normalization presents both opportunities and questions. Many express concern about timing their purchase correctly, fearing potential price declines. Jacques provides context by explaining that normal market appreciation typically ranges between 3% to 6% annually, contrasting sharply with the unsustainable 20% to 30% increases seen during COVID-19. This return to normalcy, rather than constituting a crisis, actually favors buyers who plan to stay in a property for five to seven years, can afford the payments, and find suitable locations.
Interest rates remain a significant consideration, but Jacques advises against waiting for potential decreases. Instead, he recommends focusing on whether a property fits within budget and meets personal criteria, noting that refinancing remains an option when rates improve. He works with lenders offering programs that reduce rates for initial years, helping buyers position themselves for future refinancing while removing interest rate anxiety from immediate decisions.
With nearly 45% of Palm Beach County sales being cash transactions, financed buyers sometimes worry about competitiveness. Jacques addresses this by helping buyers obtain fully underwritten approval rather than basic pre-approval letters, eliminating financing contingencies and strengthening offers. This approach, combined with strong professional track records and quick response times, enables financed buyers to compete effectively in the current market.
Jacques identifies specific opportunities in areas like Port St. Lucie, which continues to offer value through newer single-family homes at more affordable prices. The area's planned development and job creation position it for growth, making it attractive to both first-time buyers and investors being priced out of closer-in markets.
The professional's approach for 2026 prioritizes education over transaction, acknowledging that not everyone should buy immediately. For those uncertain about five-year plans or job stability, renting may represent a more sensible option. However, for qualified and ready buyers, Jacques emphasizes the importance of working with professionals who can provide comprehensive analysis, comparable sales data, and realistic expectations.
This market normalization, while less dramatic than previous frenzies, creates healthier conditions that reward preparation, strategy, and realistic expectations. The transition represents an important shift toward sustainable real estate practices that benefit all market participants over the long term.
