Agent reports strong transaction activity in $2M-$8M segment as buyers embrace normalized market conditions
Palm Beach County’s luxury real estate market is demonstrating notable resilience in early 2026, with properties between $2 million and $8 million moving consistently as buyers adjust to post-pandemic pricing and embrace current market dynamics, according to Loodmy Jacques of The Jacques Team.
“Buyers are still moving. We have homes anywhere between $2 million and right under $8 million that are still moving fairly quickly, so there is still great opportunity, and the buyers still feel very confident in that market,” Jacques reports.
The sustained luxury market activity contrasts with broader market moderation, suggesting that high-net-worth buyers have recalibrated expectations and are transacting based on value assessment rather than waiting for additional price corrections.
Market Confidence Returns
The luxury segment’s performance reflects broader shifts in buyer psychology across South Florida’s real estate market. After months of hesitation throughout 2024, buyers are demonstrating increased willingness to transact as interest rates stabilize around 6% and inventory levels provide selection without creating distressed pricing scenarios.
“The year started very well. A lot of activity compared to last year,” Jacques notes. “There’s been a lot of movement now.”
January and February activity levels exceed 2025’s sluggish start, suggesting genuine momentum beyond typical seasonal patterns. While November and December represent Florida’s slowest period due to holiday commitments, this year’s spring surge appears stronger than historical averages.
The psychological shift among buyers represents a significant transition from wait-and-see positioning to active engagement. Rather than fixating on interest rate levels or timing market bottoms, buyers are recognizing that current conditions offer negotiating leverage and inventory selection unlikely to persist when rates decline and competition intensifies.
Seller Pricing Adjustment
Luxury sellers have undergone their own recalibration, moving away from 2021-2022 pricing expectations toward alignment with current market realities.
“Sellers are taking a long time to really process the change on what the new value is,” Jacques observes. “Everything comes down to pricing it right.”
Jacques’s approach with luxury sellers involves presenting three pricing strategies: aggressive pricing for truly unique properties where sellers can wait for the right buyer, market-aligned pricing reflecting current comparables, and strategic pricing slightly below market to generate immediate interest and potential competitive dynamics.
“We got to price ahead of the market and know exactly what those facts are, and not think about 2021,” he emphasizes.
Sellers who resist pricing adjustments face extended market times as fresh inventory enters at more competitive levels. The luxury segment’s relative health depends on sellers’ willingness to acknowledge changed market conditions rather than anchoring to pandemic-era valuations.
Buyer Advantages Persist
Current market conditions provide advantages for luxury buyers that didn’t exist during competitive pandemic years. Inventory selection allows for deliberate evaluation rather than rushed decisions. Negotiating leverage enables discussions around repairs, closing costs, and price adjustments.
“Buyers definitely have more opportunities now,” Jacques notes. “You want to be in the market now looking because you have more opportunity to negotiate where you were not able to do in that time of the crazy 2021, 2022.”
The ability to negotiate seller concessions, request repairs, and secure closing cost credits represents a fundamental shift from pandemic conditions where buyers waived contingencies and offered above asking price simply to compete.
However, Jacques warns that current buyer advantages may not persist. When interest rates decline meaningfully, the surge of returning buyers will eliminate negotiating leverage and drive prices higher.
Palm Beach County Outperformance
Palm Beach County has demonstrated relative strength within Florida’s luxury market, with 7% price appreciation even as inventory increased substantially. This outperformance reflects several factors: limited new luxury inventory, sustained demand from out-of-state buyers, and the county’s positioning as a destination for relocating high-net-worth individuals.
The combination of corporate headquarters relocations—including Wells Fargo’s move to West Palm Beach – and individual wealth migration from high-tax states creates sustained demand fundamentals supporting luxury market health.
Jacques sees the concentration of wealth and business activity in Palm Beach County creating long-term support for luxury valuations, even as the broader market normalizes from pandemic peaks.
Strategic Timing
For luxury buyers, Jacques emphasizes that spring 2026 may represent an optimal entry point before rate cuts trigger increased competition.
The combination of inventory selection, negotiating power, and motivated sellers creates conditions favoring buyers willing to act decisively. Waiting for additional price corrections or lower interest rates risks missing current advantages when market dynamics shift.
For luxury sellers, the message centers on realistic pricing and proper presentation. Properties priced ahead of market realities will sit while competitors capture buyer attention. Homes presented well and priced appropriately continue achieving sales within reasonable timeframes.
The luxury market’s resilience in early 2026 suggests that high-net-worth buyers have moved past pandemic-era pricing psychology and are engaging based on value assessment and lifestyle objectives rather than speculative appreciation expectations or rate timing strategies.
Loodmy Jacques leads The Jacques Team in Palm Beach County, specializing in luxury residential real estate and serving high-net-worth clients throughout South Florida’s premium markets.
