Palm Beach County agent warns waiting for rate drops could eliminate current buyer advantages.
South Florida’s real estate market has started 2026 with noticeably stronger activity compared to last year’s sluggish start, according to Loodmy Jacques of The Jacques Team, who reports increased transaction volume and shifting buyer psychology as the market continues normalizing from pandemic-era conditions.
“The year started very well with a lot of activity compared to last year,” Jacques reports.
The increased activity reflects multiple converging factors: interest rates stabilizing around 6%, buyers accepting current financing costs as the new normal, and seasonal buyers arriving in force as Florida’s peak season kicks into gear.
The Rate-Wait Gamble
Jacques delivers straightforward advice to buyers who continue postponing purchases, hoping for significantly lower interest rates: waiting may cost more than buying now.
“If you wait until interest rates come down significantly before doing it, the prices will come up, and then you have missed the boat,” Jacques warns. “This is your last time to do something.”
The logic is simple: when rates drop meaningfully, the surge of buyers returning to the market will drive increased competition and higher prices. Any savings from lower financing costs could be eliminated by higher purchase prices.
Current inventory levels provide selection and negotiating leverage that won’t persist when buyer competition intensifies. Properties that sit now will move quickly when rates drop, and sellers will regain pricing power.
Seasonal Surge Meets Normalized Expectations
November and December are typically the slowest months in Florida real estate, as holiday commitments take priority over property transactions. This year’s January activity surge appears stronger than typical seasonal patterns, suggesting genuine market momentum.
“People just want to say, a new year, new me – this is going to be the time that I’m going to jump in and do something,” Jacques explains.
Buyers who postponed decisions throughout 2024 – waiting for rate drops, election clarity, or market direction – are now committing to transactions. The shift in buyer mentality represents a significant psychological transition.
“Buyers are getting the understanding that there is an opportunity for them where there is a lot of negotiation that they can do in terms of making offers,” Jacques notes.
This represents a fundamental shift from pandemic-era markets, where buyers submitted offers above asking price with waived contingencies to compete. Current conditions allow for traditional negotiation, inspection requests, and discussions of closing costs.
Seller Reality Check
Sellers are experiencing their own psychological adjustment as they recognize that 2021-2022 pricing dynamics won’t return soon.
This acceptance creates opportunities on both sides of transactions. Sellers who price realistically generate buyer interest and negotiate from a position of strength. Buyers who recognize value and act decisively can secure properties without the competitive frenzy that characterized recent years.
Spring Timing Critical
Jacques emphasizes that spring represents Florida’s strongest market period, making early 2026 positioning critical for both buyers and sellers.
For buyers, waiting for interest rates to drop significantly before purchasing represents a strategic error. When rates decline meaningfully, increased buyer competition will drive prices higher, potentially eliminating any savings from lower financing costs.
Policy Wildcards
Governor DeSantis’s proposal to eliminate property taxes on primary residences – potentially appearing on the November 2026 ballot – represents a significant policy consideration. However, Jacques notes it’s generating more speculation than concrete action at this stage.
If the proposal advances and passes, it could accelerate buyer activity as both current Florida residents and out-of-state prospects recognize the tax advantage opportunity. However, Jacques emphasizes that waiting for potential policy changes means missing current market opportunities.
The current environment represents what Jacques characterizes as market normalization – a return to traditional real estate dynamics after years of pandemic-driven anomalies. For buyers who have postponed decisions throughout 2024, waiting for optimal conditions, spring 2026 may represent the best opportunity available before market dynamics shift again in sellers’ favor.
“Stop thinking about it, and just do it,” Jacques advises.
Loodmy Jacques leads The Jacques Team in Palm Beach County, serving buyers and sellers across residential price points from first-time purchases to luxury oceanfront estates.
Disclosure: Individuals or companies mentioned may have a commercial relationship with KeyCrew.