As we step into a new year, many buyers and sellers are asking the same question: What’s next for the South Florida real estate market?
After a slower, more thoughtful 2025, early signals suggest that 2026 is beginning with renewed momentum, improved clarity, and more balanced opportunities—especially here in Palm Beach County and along the Treasure Coast.
Let’s break down what’s happening and what it means for you.
Mortgage Rates: Starting the Year Near Recent Lows
One of the biggest stories heading into the new year is mortgage rates stabilizing near their lowest levels of 2025.
As of mid-December:
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The average 30-year fixed mortgage hovered around 6.21%, down from this time last year.
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15-year fixed rates also eased, landing in the mid–5% range.
While these aren’t the ultra-low rates of years past, the consistency matters. Buyers are gaining confidence again, and sellers are seeing more qualified, serious interest—not just window shopping.
What does this mean for you?
More predictable rates make planning easier, especially for buyers who paused in 2024 or early 2025 waiting for better conditions.
Florida’s Market in Review: Slower, But Healthier
There’s no sugarcoating it! Florida’s housing market cooled in 2025. Higher borrowing costs, insurance expenses, and affordability concerns caused homes to take longer to sell, and inventory levels rose.
Now, what matters moving forward?
Inventory increased mainly because homes stayed on the market longer not because demand disappeared.
By the end of the year, as rates began easing, sales activity showed early signs of rebounding. Prices across most Florida markets remained relatively stable, with modest softening primarily in areas facing heavy new construction competition.
What does this all mean?
This wasn’t a crash, it was a reset. And resets often create opportunity.
Migration & International Interest Still Matter
While domestic migration to Florida slowed from its post-pandemic peak, it remains stronger than pre-2020 levels. South Florida continues to attract buyers looking for lifestyle, tax advantages, and long-term value.
International interest is also quietly improving. Tourism rebounded strongly, and while Canadian travel slowed earlier in 2025, other international markets picked up momentum as the year progressed.
So what does this mean for Florida as a tourist hot spot?
Florida’s long-term appeal hasn’t changed. Demand is more measured—but still very real.
Economic Confidence: A Quiet Tailwind for Real Estate
Another encouraging sign heading into 2026: Florida business leaders are feeling optimistic.
Recent surveys show Florida CEOs reporting higher confidence than their national peers when it comes to hiring, investment, and long-term growth. That confidence matters—it supports job creation, relocation, and housing demand across the state.
Why does this matter?
A strong local economy helps stabilize housing markets and supports long-term home values.
So… Is 2026 a Good Year to Make a Move?
The answer depends on your goals—but for many, this could be one of the more balanced windows we’ve seen in years.
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Buyers may face less competition than during peak cycles
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Sellers can still benefit from solid pricing if homes are positioned correctly
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Move-up buyers may find better timing opportunities than in recent years
The key is having clear, local insight—not national headlines.
Starting the Year With Clarity
Whether you’re planning a move this year or just keeping an eye on the market, understanding where things stand puts you in control. Real estate decisions don’t need to be rushed—but they do benefit from good information and thoughtful strategy.
Here’s to a new year filled with smart moves, steady progress, and confident decisions.
