How Pandemic-Era Seller Psychology Is Stalling the South Florida Market

Written by:

Steve Marcinuk

Date:

19 Jan 2026

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South Florida’s real estate market has cooled sharply from the pandemic-driven surge of 2021-2022, but many homeowners have yet to adjust their expectations. Melissa Galada, a realtor with RJM Real Estate Corp who has served the Boca Raton and Delray Beach markets since 1999, says that sellers who bought during the boom are now the main reason for extended listing times – not a collapse in demand or values.

“Inventory is up 23 percent year-over-year and days on market in Boca have jumped from 62 to 84,” Galada says. “But the real problem isn’t a market crash – it’s that sellers are still pricing as if it’s 2021.”

The Pandemic Overpayment Trap

During 2021 and 2022, record-low interest rates and a flood of buyers led to bidding wars and rapid price increases. “That was just a free-for-all,” Galada recalls. “People had to overpay and waive every contingency just to get a house.”

Many of today’s sellers bought at those peak prices, paying far above what would have been considered reasonable just a few years earlier. Now, Galada says, they expect to recoup those premiums – even though market conditions have changed. “They’re operating under the assumption that what they paid is what they’ll get back, but that’s not how it works anymore.”

The result: homes linger on the market for months, sometimes more than a year, with little buyer interest. “I had several listings that were sitting for a year,” Galada says. “We were priced a couple of hundred thousand dollars over where we needed to be.”

The impact of realistic pricing is immediate. Galada points to a recent listing priced initially at $1.8 million that struggled to attract any offers. “Once we dropped it to $1.3 million, it sold right away,” she says. “That was my highest sales month ever, just because I convinced clients to accept today’s reality instead of chasing yesterday’s prices.”

The Condition Premium

Beyond price, property condition now plays a much larger role in how quickly a home sells. During the pandemic, buyers were willing to overlook flaws to secure a property. That is no longer the case.

“If houses and condos need a lot of work, unless you find an investor, most buyers don’t want to take on major renovations,” Galada explains. “They don’t have contractors, and it’s overwhelming for them.”

Galada now advises clients on staging, repairs, and curb appeal, personally helping to redesign and prepare homes for sale. “Presentation matters so much more today than it did in the past,” she says. Well-maintained, move-in-ready properties sell much faster than those that need updates or repairs, even when priced similarly.

Why Agents Enable the Problem

Galada believes that real estate agents play a crucial role in resetting seller expectations. “Agents who are willing to have tough conversations about price and improvements can get homes sold,” she says. “But if agents just go along with unrealistic prices to keep a listing, the property will sit, and the market gets clogged with overpriced inventory.”

She describes her own approach: “I go in and evaluate the property, help with staging, and work on curb appeal. Sellers need to let their agent guide them – if they’re willing to listen, they can get results.”

Market Stability Beneath the Surface

Despite the spike in inventory and longer listing times, Galada insists that the South Florida market is fundamentally stable. “I don’t think there’s much risk here,” she says. “As long as sellers aren’t expecting to make $100,000 in profit in a year as they did in 2022, the market is healthy.”

Galada points to continued transaction activity during the recent holiday season as evidence that buyers remain active. “I watched a house in my neighborhood that had been sitting for over a year finally go under contract on New Year’s Eve – and it was listed $300,000 higher than a similar home I sold in October,” she says. “Homes are still selling, just not at the prices people got during the pandemic.”

The Path Forward

The key for sellers, Galada says, is to recognize that the market has normalized, not crashed. “There’s this idea that nothing is selling, but that’s just not true,” she says. “Homes are moving when they’re priced right and presented well.”

Sellers who accept this new reality and adjust their pricing expectations will find success. Those who hold out for pandemic-era premiums will continue to watch their properties sit while more realistic sellers move on. As Galada puts it, “The market is still active – but only for those willing to meet buyers where they are now, not where they were two years ago.”