What West Palm Beach Buyers and Sellers Should Know About Today's Housing Market

I've been working in South Florida real estate for many years, and I'm seeing something I haven't witnessed since before the pandemic: a balanced market. Homes in West Palm Beach now sit for 83 to 114 days, compared to 68 days a year ago. Median values range from $398,000 to $474,450.

This isn't a crisis. It's a return to normal. The 2021-2022 frenzy was the exception, not the rule. Things take a little longer now, but that's actually healthy for both buyers and sellers.

The Insurance Reality

The biggest challenge I discuss with clients is insurance. West Palm Beach residents pay between $4,000 and $6,000 annually for homeowners insurance, more than double the national average of $2,417. This significantly impacts monthly housing costs and buying decisions.

I always connect buyers with insurance specialists early in the process so they understand total ownership costs before making an offer. Nobody wants surprises after they've fallen in love with a property.

Should You Wait for Lower Interest Rates?

This is the question I get asked most often. Mortgage rates are hovering between 6.35% and 6.86%, and many potential buyers are sitting on the sidelines waiting for them to drop.

Here's what I tell them: if you find a property within your budget in an area where you see yourself for the next five to seven years, buy it. When interest rates drop, you can refinance. But you'll already own the house. You won't be competing in another buying frenzy.
We work with lenders who offer 2-1 buydown programs that reduce payments in the first years of homeownership, giving buyers time to refinance when rates improve.

Where Activity is Strongest

West Palm Beach's corporate relocations continue, with the city earning attention as "Wall Street South." The luxury market remains particularly strong. Palm Beach County recorded 132 sales over $10 million in 2024, up 21% from the previous year.

For investors, I'm seeing opportunities in Port St. Lucie, where newer homes are available at lower price points ahead of planned development. Closer to downtown, neighborhoods like Northwood are attracting buyers who want proximity to the city with a residential feel.

First-Time Buyer Considerations

I don't push homeownership on everyone because it's not right for everyone. If you're not sure about your five-year plans or your job might relocate, renting may make more sense right now.

For those ready to buy, remember that normal market appreciation is three to six percent annually. During COVID, we saw 20 to 30 percent, which wasn't sustainable. The current market gives buyers more negotiating power than they've had in years, with opportunities for closing cost credits and repair negotiations that weren't available during the pandemic.

My goal is always to educate clients so they can make informed decisions, whether that means buying now or waiting.

Loodmy Jacques of The Jacques Team has worked in South Florida real estate for 17 years and manages a property portfolio of approximately 80 homes.