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Agent Insight: The Top Trends Shaping the 2025 Palm Beach Real Estate Market

Todd Peter, David Welles, Fern Fodiman and John Cregan of Sotheby's
Todd Peter, David Welles, Fern Fodiman and John Cregan of Sotheby's

The forecast for Palm Beach luxury real estate going into 2025 is just like the weather: sunny skies, with a chance of heating up even more.

The latter part of 2024 set the pace for positive momentum in the South Florida town, with sales really beginning to sizzle once the election was decided. TRD spoke with four influential agents from Sotheby’s International Realty in Palm Beach to get an insider’s analysis of where the area’s luxury market is likely heading and what strategies buyers and sellers can use to make the most of this momentum.

Wealth Migration Drives Prices Up and Inventory Down

High-net-worth individuals moving to the Sunshine State continue to choose Palm Beach as their new home, and competition for the island’s limited lots is sending prices soaring.

“We saw transactions in the upper end reaching new highs, with record-breaking sales that included trophy waterfront properties,” says Todd Peter, a top-producing agent with Sotheby’s International Realty – Palm Beach Brokerage. “While prices have increased, demand is also surging. After all, we only have so much island available.”

Peter knows what high-net-worth individuals are looking for in Palm Beach. He holds the record for both the highest home sale on the North End of the Intracoastal Waterway ($74.25 million for the 6 bed, 10,000+ square foot home at 740 Hi Mount Rd) and the highest land sale on the North End ($50 million for the 0.8 acre lot at 940 North Lake Way).

150 Bradley Place

While Palm Beach’s single-family home inventory typically hovers around 200 units, Peter explains it is just beginning to right-size after plunging to a mere 33 homes during the pandemic. Today it sits around 100 homes—“healthy, although hardly historic,” he notes.

Even this minor uptick in inventory has sent demand skyrocketing. 

“There is no shortage of people continuing to move from the northeast and even the west coast,” explains John Cregan, who, together with his wife Lisa, handled 2024’s most expensive single-family home sale in West Palm Beach. “As long as temperatures go low up north and taxes stay high, demand for Palm Beach is only going to continue.”

It’s a trend that all the agents we spoke with mentioned. 

“Anything I’ve listed, I’ve sold, which is unusual so early in the season,” says Fern Fodiman, consistently a top producer with Sotheby’s International Realty – Palm Beach Brokerage. “Unique single-family homes and high-end condos have been moving fast, with ample new construction beckoning young families to the West Palm Beach area, often known as Wall Street South.”

236 Pendleton Avenue

That’s not to say everyone in the market is a transplant. Peter has observed keen interest from families who chose any available property as a “placeholder” during the pandemic to test the market. Unsurprisingly, they’ve become enamored with the lifestyle and now are aiming to trade up to a more spacious home or one in a more coveted location.

“We have a true sense of community with a walkable downtown, and every amenity at your doorstep, from restaurants to shopping to culture,” says Peter. “We see the wealth migration lasting—our clients aren’t just buying to have a secondary residence, but to take advantage of everything Palm Beach has to offer.”

A Horse of a Different Color

While Palm Beach’s iconic coastal lifestyle often takes center stage, a short drive reveals an equally appealing side of this region’s allure—the idyllic Wellington locale that caters to horse enthusiasts. The adage “location, location, location” is always top of mind in real estate, and while waterfront property may be the Holy Grail in Palm Beach, there’s another aspiration for these residents of the “Winter Equestrian and Polo Capital of the World,” home to the Winter Equestrian Festival, Global Dressage Festival and the United States National Polo Center.

“Properties that touch the horse show grounds are what we consider our beachfront property,” says David Welles, global equestrian real estate advisor and a top agent in the Wellington office of Equestrian Sotheby’s International Realty, who relocated to Wellington over 20 years ago to support his daughter’s participation in the Winter Equestrian Festival. “I understand the language of this marketplace and the equestrian world because I’m living it.”

14775 Equestrian Way

Drawing on his previous career in commercial construction, he also offers project management services as a value-add to clients needing oversight on an addition or renovation, typically managing one venture a year.

How to Snag Your Dream Palm Beach Property in a Seller’s Market

In such a competitive environment, both buyers and sellers benefit from a plugged-in resource immersed in the market, such as those in the local Sotheby’s International Realty offices who distinguish themselves through their unparalleled knowledge.

“Palm Beach is a collection of micro neighborhoods. Two homes three streets apart can trade at very different prices for reasons ranging from traffic patterns to beach access,” says Cregan. “Buyers would be wise to work with an agent who is steeped in the market. This is not a town where you’ll do yourself any favors by merely looking online.”

However, this peak demand doesn’t mean that anything goes: sellers still need to price their homes right. 

748 Island Drive
748 Island Drive

“In 2021-2022, it was a name-your-price environment, especially at the highest echelons for properties that were waterfront or new construction,” says Cregan. “It resulted in some overly ambitious pricing. That’s mostly ended and we have a fairer, more balanced market today.”

“Unlike during the pandemic when prices seemed irrelevant, our clientele is educated and understands valuations,” adds Fodiman. “Homes that are priced right will sell quickly.” 

Because the majority of prospective buyers prefer to avoid the pain of construction, they will pay a premium for spaces that have already been renovated. 

“Our highest demand right now is for move-in-ready homes,” says Cregan.

That means buyers must be ready when that ideal home becomes available. “Refreshed properties won’t linger,” emphasizes Fodiman. “As a buyer, you have to do your homework, recognize the property that fits your criteria and be prepared with a strong offer.”

Are you considering the prime communities of Palm Beach, West Palm Beach, or Wellington? Join the savvy clients leveraging the specialists at Sotheby’s International Realty – Palm Beach Brokerage and Equestrian Sotheby’s International Realty. By tapping their considerable expertise in navigating these vibrant locations, you can transform your dream into reality.

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