Southeast Florida Housing Market Update: May 2025

Overview of Southeast Florida Real Estate Trends

In May 2025, Southeast Florida’s housing market experienced a notable downturn in single-family home sales. High mortgage rates and limited affordable housing options contributed to this decline. However, there are signs of potential improvement in the market as conditions evolve.

Key Highlights

• Single-family home sales across Southeast Florida decreased amidst elevated mortgage rates.
• The inventory of million-dollar homes is increasing, yet remains below levels seen prior to the pandemic.
• Median sales prices rose in Miami-Dade County, Palm Beach County, and Martin County, while remaining stable in Broward County.

Declining Sales Amid High Mortgage Rates

The Southeast Florida housing market faced challenges in May 2025, with single-family home sales plummeting due to mortgage rates nearing 7%. Here are some noteworthy statistics:

• Closed sales fell across all counties compared to the previous year:
  • Miami-Dade County: -14.9%
  • Broward County: -11.1%
  • Palm Beach County: -7.3%
  • Martin County: -8.7%
  • St. Lucie County: -5.0%

The tough climate for buyers is exemplified by the active inventory of homes priced below $400,000, which accounted for only 3% of total listings in Miami-Dade County.

Supply and Demand Dynamics

Despite weakened sales, the market for entry-level homes remains competitive. Inventory levels for single-family homes priced at $400,000 and below are less than 6 months’ supply in most counties:

• Miami-Dade County: 3.5 months
• Broward County: 4.0 months
• Palm Beach County: 4.1 months
• Martin County: 3.9 months
• St. Lucie County: 4.6 months

Conversely, the supply of million-dollar homes is on the rise. Million-dollar properties now make up a significant share of active listings, with corresponding monthly supplies indicating a seller’s market across various counties:

• Miami-Dade County: 11.4 months
• Broward County: 9.9 months
• Palm Beach County: 8.4 months
• Martin County: 9.9 months
• St. Lucie County: 19.2 months

Rising Home Prices in Southeast Florida

In Miami-Dade County, the median sales price for single-family homes has steadily increased, achieving a 3.8% rise year-over-year, marking the 162nd consecutive month of price appreciation since December 2011. Some notable price movements are:

• Median sales price in Miami-Dade: $675,000
• Broward County held steady at $625,000.
• Palm Beach County saw a slight decline of 0.8%, with a median price of $640,000.

Notable Municipalities with Rising Prices

Among various local markets, several areas in Miami-Dade County exhibited significant price increases, including:

• Coral Gables: +21%
• Kendall: +13%
• Hialeah: +5%

Hot Markets to Watch

Identifying “hot markets” is crucial for investors and buyers. These areas demonstrate higher closed sales, increasing median prices, and limited inventory. Currently, the top hot markets include:

Miami-Dade County

• Hialeah
• Richmond West
• Leisure City
• Miami Lakes (condo market)

Broward County

• Pembroke Pines
• West Park

Palm Beach County

• North Palm Beach (noted as the only million-dollar hot market)
• Jupiter Farms

Martin County

• Jensen Beach

St. Lucie County

• Indian River Estates

Conclusion: A Forecast Into the Future

The future of Southeast Florida’s housing market will likely depend on mortgage rates and buyer confidence. As rates are expected to decrease in the latter half of 2025, a modest uptick in sales may ensue. However, prospective buyers could remain cautious during the first half of 2026, awaiting further drops in mortgage rates.

For more detailed insights, you can view the full Southeast Florida Housing Market Report.

For real estate investors and potential homebuyers, keeping an eye on emerging trends and local market dynamics will be essential in navigating the Southeast Florida real estate landscape successfully.