Miami-Dade’s real estate market is experiencing a bifurcated trend, with luxury condominium sales surging and ultra-luxury single-family homes on pace to set records. This stands in contrast to some other segments of the market, which are seeing declines due to factors like elevated mortgage rates and inventory shortages. Meanwhile, older, more affordable condominium units are demonstrating resilience, maintaining their value and offering entry points for first-time homebuyers.
Key Takeaways
- Luxury Surge: Sales of Miami-Dade condos priced at $1 million and up increased by 10.8% year-over-year in August 2025.
- Ultra-Luxury Momentum: South Florida is projected to have 426 ultra-luxury home sales (over $10 million) by the end of 2025, nearing record levels.
- Affordable Condos Stable: 30-year-old and older condo units in Miami-Dade maintained a median price around $280,000, offering affordability.
- Market Dynamics: Overall sales declined due to mortgage rates and low inventory, but the market is moving towards a healthier balance.
- International Influence: International buyers are significant players, particularly in new construction sales.
Luxury Segment Dominance
Miami-Dade’s luxury real estate market is a significant driver of its economic activity. In August 2025, sales of condominiums priced at $1 million and above saw a notable increase of 10.8% compared to the previous year. This surge, from 120 to 133 units, underscores a continued demand from affluent buyers. Furthermore, the ultra-luxury segment, particularly single-family homes, is performing exceptionally well. South Florida is on track to achieve its second-highest year for $10 million-plus home sales, with projections indicating 426 such transactions by the end of 2025, a figure that closely approaches the record set in 2021.
Resilience in Affordable Housing
Amidst the boom in high-end properties, older condominium units, typically 30 years or more in age, are proving to be a stable segment of the market. In August 2025, these units held a median price of approximately $280,000, showing minimal fluctuation from the previous year. These properties are crucial for first-time homebuyers and are often located in prime areas. New state regulations implemented in 2025, requiring inspections and adequate reserves for older buildings, are expected to enhance their long-term viability and financeability, further supporting buyer affordability.
Broader Market Conditions
Despite the strength in luxury and affordable condo segments, overall sales in Miami experienced a 10.7% year-over-year decline in August 2025, with 1,788 units sold. This dip is attributed to elevated mortgage rates and a general lack of inventory in certain price points. However, this slowdown is viewed as a move towards a more balanced market after the frenzied activity of the pandemic era. Single-family home sales also saw a decrease of 8.2% in the same period. The market is characterized by a significant percentage of cash sales, with 35.6% of transactions in August 2025 being cash-based, reflecting the strong presence of foreign buyers and those relocating from more expensive markets.
Economic Impact and Future Outlook
The real estate sector continues to be a substantial contributor to Miami-Dade’s economy, generating an estimated $230.6 million in local economic impact from the 1,788 homes sold in August 2025. With the Federal Reserve signaling potential interest rate cuts, the market anticipates further positive momentum, especially in high-demand areas like South Florida. The ongoing influx of wealth and the unique value proposition of Miami real estate compared to other global cities suggest a continued strong performance, particularly in its luxury and established condominium sectors.
Sources
- Miami-Dade $1M & Up Condo Sales Surge Affordable 30-Year Condo Units Holding Value, PR Newswire.
- Ultra-luxury single-family home sales soar in Miami-Dade, The Business Journals.
- Miami-Dade Ultra-Luxury Sales on Pace to Set Records; Affordable 30-Year Condo Units Holding Value, PR Newswire.
- prices 174% above national average, HousingWire.