Estimated reading time: 5 minutes
Discretionary buyers are still ready — so what’s keeping them on the sidelines, and when will the market finally move?
As the summer sun scorches the shoreline, the beach real estate market remains oddly frozen as revealed in the latest Beach Real Estate Market Report.
Despite strong buyer interest and more than $137 billion in listings across 20 coastal states, closings are lagging. So, what’s the holdup?
According to Beach-Homes.com , the leading online marketplace for over 100,000 beach homes, lots, and condos, the issue isn’t lack of demand. It’s a combination of economic anxiety, confusing pricing, and widespread hesitation — not buyer apathy.
“People are often surprised that mortgage interest rates don’t have as much impact on beach home sales,” says Glenn S. Phillips, CEO and Chief Economic Analyst. “These are discretionary purchases — and over 50% are all-cash deals.”
If rates aren’t the problem, then what is?
Confidence Gap + Market Confusion = Paralysis
The real culprit is what economists call FUD: fear, uncertainty, and doubt. Trade policy instability, a bumpy stock market, and post-pandemic aftershocks have left many buyers in wait-and-see mode.
“A confused mind says, ‘No,’” Phillips explains. “Or at least, ‘No for now.’”
Adding to the stagnation is a widespread overpricing trap. Many sellers are still anchored to outdated price expectations from the peak of the COVID buying frenzy. Back then, bidding wars and appraisal gaps pushed prices above fair market value. Today, those comps are no longer relevant — but sellers haven’t caught up.
“How do I know most beach properties are overpriced? Easy. They’re not selling,” says Phillips.
The “Overpricing Trap” & Seller Misconceptions
In 2020–2022, buyers frequently paid in cash above appraised value just to win bidding wars. But in today’s climate, buyers are more cautious. They’re comparison-shopping across multiple markets and unwilling to overpay — especially with economic uncertainty still in the air.
Some sellers, having purchased at elevated prices themselves, expect their homes to appreciate significantly. But the market has changed. And many of those hoped-for gains haven’t materialized. The result? A growing disconnect between hopeful sellers and pragmatic buyers. Listings are sitting. Closings are stalling. And both sides are waiting for the other to blink.
Looking Ahead: A Thaw on the Horizon
Still, there’s reason for optimism. As we move into the second half of 2025, signs point to a subtle but meaningful shift. Buyer activity is expected to pick up as economic confidence returns, and more sellers begin to adjust to current conditions.
Improved clarity in trade policies and steadier market performance could help ease buyer hesitation. And as sellers embrace realistic pricing, the logjam shows hints of breaking.
This emerging balance between cautious buyers and flexible sellers is key to unlocking the beach home market in the months ahead. At Beach-Homes.com, we remain dedicated to guiding clients through these changes with clarity, connection, and confidence.
What’s the current market for beach homes and land?
The new Beach Real Estate Market Report has all the details and can be found, for free at: https://www.beach-homes.com/info/beach-real-estate-market-reports
Top Beach Real Estate Markets
The Summer 2025 Beach Real Estate Market Report from Beach Homes Realty presents a promising outlook for those looking to invest in beachfront properties. Naples, Florida, continues to lead, boasting the largest selection of properties, with a combined value of $5.756 billion in beach homes and lots.
While Naples provides an abundance of options, the possibilities don’t end there. Here are some of the top locations in the nation for beachfront listings:
- Naples, Florida – $5.75 billion
- Fort Lauderdale, Florida – $4.25 billion
- Miami – South Miami, Florida – $3.17 billion
- Tittabawasee River, Florida – $3.07 billion
- Palm Beach, Florida – $2.65 billion
The complete list of states exceeding $1 billion in listings include:
- Florida ($99 billion)
- South Carolina ($8.95 billion)
- Texas ($4.71 billion)
- New Jersey ($4.05 billion)
- North Carolina ($4.13 billion)
- Maryland ($3.38 billion)
- Massachusetts ($4.97 billion)
- Alabama ($2.43 billion)
- Connecticut ($1.33 billion)
- Delaware ($1.26 billion)
Florida also leads in the number of listings, with 84,770 beach homes and lots. In order, here are all the states in the report:
- Florida – 84,770
- South Carolina – 11,277
- Texas – 10,388
- North Carolina – 6,828
- Maryland – 6,010
- Alabama – 3,320
- Mississippi – 3,089
- New Jersey – 2,711
- Massachusetts – 3,061
- Delaware – 1,671
- Virginia – 1,090
- Louisiana – 543
- Georgia – 545
- Connecticut – 737
- New Hampshire – 749
Top 5 Most Expensive Beaches for Home Listings (Average Price)
- Manalapan, FL – Avg. of $61,130,071
- Miami – Palm Island, FL – Avg. of $35,820,400
- Miami – Fisher Island, FL – Avg. of $18,341,824
- Miami – Hibiscus Island, FL – Avg. of $17,007,750
- Jupiter Island, FL – Avg. of $12,110,400
Top 5 Beach for Number of Home and Lot Listings
- Port Charlotte, FL – 4,662
- Cape Coral, FL – 3,645
- Port Charlotte – North Port, FL – 3,385
- Myrtle Beach, SC – 2,996
St. Petersburg, FL – 2,897 The Summer 2025 Beach Real Estate Market Report shares a summary of data collected from 34 Multiple Listing Services (MLS) areas in the 20 states served by Beach Homes Realty and is, to our knowledge, not available from any other source.