Palm Beach County Home Prices Still Overvalued in 2025

Despite a slowdown in home sales, Palm Beach County home prices continue to hold their ground, staying approximately 15% above historical value trends. With mortgage rates hovering near 6.85%, buyers are proceeding cautiously, yet competitively priced homes are still moving fast. This raises the big question: Is now the right time to buy or sell in Palm Beach County?

Let’s break down the latest data, expert analysis, and what it all means for the South Florida real estate market.

What’s Going On in Palm Beach County’s Housing Market?

In April 2025, Palm Beach County recorded 1,330 home sales, a 5% decline from the same time last year. Median home prices stayed relatively stable at $645,000, while the average sale price reached $1.2 million. Although activity is down, prices haven’t budged much, largely due to continued buyer interest in South Florida.

April's numbers reflect a market in transition, not collapse. High-end homes are still commanding premium prices, while mid-tier and fixer-upper listings are moving more slowly. Sellers who overprice in today's market risk extended listing times or price cuts.

The supply of single-family homes reached 5.9 months in April, up 34% from 2024. A market with 5.5 to 6 months of inventory is considered balanced, giving neither buyers nor sellers a strong upper hand. This shift suggests Palm Beach County is transitioning to a more normalized market.

Buyers now have more leverage to negotiate on contingencies, closing timelines, and even repairs—things that were difficult to demand during the frenzied post-pandemic years.

Are Home Prices Really Overvalued by 15%?

According to housing economists at Florida International University and the University of Mississippi, average home prices in Southeast Florida are 15.4% overvalued when adjusted for inflation. Their research, analyzing April 2025 data across Palm Beach, Broward, and Miami-Dade counties, found the inflation-adjusted average home price to be $256,870.

This overvaluation isn't tied to speculative behavior, but instead to long-term demand and supply challenges in desirable areas like Palm Beach. Even with price stabilization, homes are still expensive relative to historical norms.

Out of the top 100 U.S. housing markets, Southeast Florida ranked 29th most overvalued. In contrast, cities like New Orleans, Honolulu, and San Francisco have seen home prices fall well below historical norms, signaling regional disparities and local economic headwinds.

Why Prices Remain High Despite Slower Sales

South Florida Still in Demand

Palm Beach, Broward, and Miami-Dade continue to attract both local and out-of-state buyers, especially for upgraded, move-in ready homes.

Florida’s tax structure, coastal lifestyle, and expanding infrastructure remain strong draws, particularly for remote workers, retirees, and international buyers.

Renovated Homes Sell Faster

Newly renovated homes or those priced aggressively are selling faster than older, outdated properties. As one seller near Jupiter discovered, his 1997-built home without a pool sat on the market for over 200 days, even after multiple price reductions.

In contrast, homes with modern kitchens, updated flooring, and quality landscaping are attracting showings and offers, often within weeks.

Is Now a Good Time to Buy or Sell in Palm Beach County?

Yes, but be strategic with home prices stabilizing and rates softening slightly from early 2025 highs, now could be a smart time to buy before prices creep upward again.

Many buyers are waiting on the sidelines expecting deep discounts. But real estate insiders warn that South Florida’s pricing rarely drops significantly due to steady demand and constrained land availability.

For Buyers:

Target competitively priced or newly renovated listings
Watch mortgage rates and secure pre-approval
Use local market data to make informed offers
Don’t wait for the “perfect time”, focus on long-term value

For Sellers:

Invest in basic updates or renovations
Price realistically to attract buyers in a balanced market
Highlight move-in readiness and flexible terms in listings
Work with a seasoned Palm Beach County real estate agent to properly position your home

Palm Beach County Real Estate Outlook for the Rest of 2025

With more inventory and stable prices, Palm Beach County is entering a healthier market cycle. Buyers have more choices, and sellers must be sharper with pricing and presentation.

Expect days-on-market to remain higher than 2021–2022 averages. Homes priced above market will likely sit, while properties that reflect current conditions will attract interest.

Neighborhood Trends to Watch

Keep an eye on:

Boynton Beach: Higher inventory but continued buyer activity
Delray Beach: High-end condos and townhomes remain strong performers
Wellington: Spacious, family-oriented homes near top-rated schools still hold demand
Lake Worth Beach: Budget-friendly with pockets of fast redevelopment

Make Your Next Move with Trusted Palm Beach County Realtors®

Palm Beach County home prices remain about 15% overvalued, but that hasn’t stopped serious buyers from making offers, especially on move-in-ready homes. With mortgage rates easing slightly and inventory trending up, conditions are ripe for strategic decisions.

Whether you’re buying your dream home or selling for top dollar, working with experienced professionals gives you a clear advantage. The market is nuanced, and navigating it successfully takes local insight and proven expertise.

Contact The Mastropieri Group, Realtors® at (561) 544-7000. As trusted Palm Beach County real estate agents, we offer personalized service and sharp negotiation skills to help you succeed. We live here. We know the market. And we’re ready to help you make smart real estate decisions in 2025.

Posted by Larry Mastropieri on July 4th, 2025