As 2025 closed, the national economy remained on stable footing. Growth moderated to a more sustainable pace, inflation continued to ease, and recession risks receded. Productivity gains, particularly from AI and broader technology adoption, helped offset the impact of elevated interest rates, while labor market cooling unfolded in an orderly manner rather than a disruptive one. Heading into 2026, conditions support cautious optimism, with economic resilience intact and policy developments remaining the primary variable to watch.
Locally, Palm Beach Island closed the year with decisive strength. The single-family market surpassed $2.0 billion in total sales volume, marking only the third time on record this threshold has been reached, alongside 2020 and 2022. Midtown condominiums similarly exceeded expectations, finishing the year with a nearly 80 percent increase in dollar volume compared to 2024. Pricing remained firmly supported by sustained demand, highlighted by Palm Beach’s highest residential sale on record, an off-market oceanfront transaction exceeding $177 million earlier in the year.
The way 2025 closed is consistent with the path outlined in my 2026 Palm Beach market outlook, reinforcing confidence in the market’s underlying structure.
Observations
According to The Wall Street Journal, the top ten residential transactions in the United States all exceeded $100 million for the first time on record, underscoring a structural shift in how ultra-high-net-worth buyers deploy capital. Once a rarity, this level of pricing has increasingly become a benchmark rather than an outlier within the ultra-luxury segment.
This Q4 analysis builds on trends first outlined in my Q3 2025 Palm Beach market update, where early signs of selectivity and pricing discipline began to emerge.
Florida sat squarely at the center of ultra-luxury activity as 2025 closed. On Palm Beach Island, record year-end pricing and landmark transactions earlier in the year, including an off-market oceanfront sale exceeding $177 million, underscore a market shaped by capital depth, structural scarcity, and intent rather than momentum or speculation.
This momentum continues to coincide with sustained relocation activity from high-tax states, particularly California, as ultra-high-net-worth individuals respond to evolving fiscal and regulatory environments. Increasingly, these buyers are drawn not only by Florida’s tax advantages, but by a lifestyle that now includes proximity to global financial, technology, and innovation networks alongside privacy, security, and permanence.
At the same time, population and capital continue to flow into the region, reinforcing Palm Beach County’s appeal as a long-term destination for both investment and talent. Recent institutional commitments, including Vanderbilt University, ServiceNow, and Wells Fargo’s wealth management platform, underscore a structural shift toward sustained, long-term economic activity in Palm Beach County.
While Palm Beach Island remains distinct in character and scale, its proximity to this expanding innovation corridor provides economic diversification without sacrificing privacy or prestige — qualities that continue to resonate with senior executives relocating to Palm Beach County.
What distinguishes Palm Beach Island in this environment is not transaction velocity, but market structure. Limited land availability, restrictive development, and high seller discretion continue to constrain supply, while sustained inflows of long-term capital reinforce demand. The result is a market that moves deliberately, with fewer but more consequential trades.
This dynamic increasingly rewards quality over optionality. Renovated, well-located, turnkey residences continue to command attention and transact decisively, while assets requiring compromise face longer decision cycles. Selectivity is not slowing this market; it is shaping how and where transactions occur.
Taken together, the way 2025 closed offers a clear signal rather than a forecast. Palm Beach Island is operating on its own cadence, shaped by deep capital, structural constraints, and intentional decision-making — conditions that continue to support long-term value over short-term timing.
Inventory
Single-Family Homes
At the end of Q4 2025, there were 114 active single-family listings in the MLS. Based on the year’s absorption rate, this represents approximately a 12-month supply, effectively one season of inventory.
While inventory increased modestly year over year, it remains 37 percent below pre-pandemic Q4 2019 levels, reinforcing the structural constraints that continue to define supply at the upper end of the market.
Midtown Condominiums and Co-Ops
Midtown ended Q4 with 89 active listings, representing an approximate 10-month supply.
Inventory increased slightly year over year but remains roughly 30 percent below pre-pandemic levels. This measured pace of inventory growth, combined with seller discretion, has supported pricing stability, particularly for renovated, turnkey residences offering walkability and ease of ownership.
South End Condominiums and Co-Ops
The South End closed the quarter with 121 active listings, equating to an approximate 15-month supply.
Inventory declined 12 percent from Q4 2024 and remains 28 percent below pre-pandemic norms, contributing to firmer pricing for compliant and upgraded properties despite ongoing inspection and assessment considerations.
Transactions
Single-Family Homes
Q4 2025 recorded 26 transactions, a 37 percent increase over Q4 2024, and the strongest fourth-quarter performance since 2021.
For the full year, 119 single-family sales closed, up 31 percent year over year. The year ended with 14 properties under contract, totaling approximately $260 million in combined asking volume, a 35 percent increase compared to year-end 2024.
Midtown Condominiums and Co-Ops
Midtown posted 16 Q4 transactions, up 23 percent year over year.
For the full year, 104 transactions closed, representing a nearly 50 percent increase from 2024. Demand remained concentrated among buyers seeking turnkey, low-maintenance, well-located residences that support seasonal or part-time living.
South End Condominiums and Co-Ops
The South End recorded 18 transactions in Q4, up 38 percent year over year.
Despite the strong fourth quarter, full-year transactions declined 11 percent, reflecting buyer selectivity tied to building condition, assessments, and compliance requirements.
Dollar Volume and Pricing
Single-Family Homes
Q4 single-family dollar volume totaled $436 million, a 44 percent increase year over year. Full-year dollar volume exceeded $2.1 billion, marking only the third time on record Palm Beach Island has surpassed this level.
The Q4 median sale price reached $12 million, up 14 percent year over year, representing the second-highest Q4 median on record. The 2025 year-end median price of $13 million increased 16 percent from 2024, the highest year-end median ever recorded.
Notably, 62 percent of Q4 transactions and 67 percent of full-year sales closed at or above $10 million, underscoring the depth of capital at the upper end of the market.
Midtown Condominiums and Co-Ops
Q4 Midtown dollar volume totaled $46 million, modestly below Q4 2024, though full-year dollar volume reached $407 million, a 78 percent increase year over year and the third-highest year on record.
The Q4 median price of $2.4 million rose 2 percent year over year, while the 2025 year-end median of $2.9 million marked the highest year-end median on record.
South End Condominiums and Co-Ops
South End dollar volume reached $38 million in Q4, up 72 percent year over year. Full-year dollar volume totaled $182 million, down 7 percent from 2024, reflecting softer activity earlier in the year.
The Q4 median price of $1.2 million declined 9 percent year over year, while the 2025 year-end median of $1.35 million finished 1 percent higher than 2024, highlighting underlying value support for compliant properties.
Closing Perspective
In short, Palm Beach Island’s market is defined by confidence and capital, guided by clarity and a sustained focus on long-term value over short-term timing.
For Buyers Seeking Deeper Insight
For a more detailed look at how discerning buyers approach Palm Beach Island, from strategy and timing to lifestyle considerations, read:
How to Buy a Luxury Home in Palm Beach: A Complete Guide
Nadine Fite
Luxury Real Estate Advisor | Palm Beach Island
📧 [email protected]
📱 917.513.9592
🌐 LivePalmBeach.com
📍 Compass Palm Beach | 150 Worth Avenue, Palm Beach, FL 33480
Follow along: @Nadine_Fite_PBRealtor
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