Miami Real Estate Market Booms Post-Election

A Surge of Buyer Activity

With the recent presidential election concluded, many prospective buyers who had been waiting in the wings are now making significant purchases in the Miami real estate market. Eddie Blanco, the 2025 Chairman of MIAMI, noted:

"Now that the presidential election is over and we have more certainty, buyers who have been waiting on the sidelines are now making moves."

This renewed interest comes as South Florida continues to excel in various real estate metrics, including:

• Price appreciation
• Migration
• Luxury sales
• Global buyer engagement

Despite mortgage rates hovering around 7%, Miami’s total sales experienced a notable surge in December 2024 — a clear indication of strong demand in a low-supply market.

Miami’s Housing Market Rankings

According to Realtor.com, the Miami-Fort Lauderdale-Pompano Beach, FL area has been designated as the No. 2 Top Housing Market in the U.S. for 2025, expecting:

• 24% year-over-year sales increase
• 9% rise in median sale prices

Furthermore, Miami ranks as the second in the nation for home-price appreciation, as reported in the January 2025 CoreLogic U.S. Home Price Insights.

Key Housing Statistics

• Condominium Sale Prices: Median prices surged by 4.9% year-over-year in December 2024, rising from $410,000 to $430,000. Over the past decade, these values have appreciated 126.3%.

• Single-Family Homes: Median sale prices jumped 10.7% year-over-year, from $610,000 to $675,000. This segment has also seen prices rise for 157 consecutive months, marking a record streak.

Economic Impact and Home Equity Growth

Miami’s home equity growth is nearly double the national average, with single-family homes seeing gains of $542,175 compared to the U.S. average of $310,232. The continued demand is fueled by a combination of affluent buyers, migration, and the appeal of the city itself.

Affordable Housing Initiatives

In 2023, Florida enacted the Live Local Act, aimed at increasing affordable housing. Under this law, developers can achieve the highest density allowed in their area if they allocate 40% of units for affordable housing.

Cash Sales and Investment Trends

Cash transactions dominate the Miami market, accounting for 40.4% of total sales in December 2024. This percentage reflects the interest from both foreign investors and local individuals selling properties in higher-priced markets. Miami offers compelling value compared to other global cities:

• Sydney: $1M buys 43 square meters
• Shanghai: $1M buys 42 square meters
• New York: $1M buys 34 square meters
• Miami: $1M buys at least 60 square meters

Inventory and Market Dynamics

Despite rising sales, Miami is still facing inventory challenges:

• Total active listings climbed 39.3% year-over-year to 15,939, but overall inventory remains down 21.5% from historical averages.

• Months’ Supply: Single-family homes have a supply of 5.2 months, indicating a seller’s market, whereas existing condominiums sit at 11.1 months, which suggests a buyer’s market.

Conclusion: Future Projections

As mortgage rates decrease and buyer sentiment improves, experts predict a resurgence in the Miami real estate market:

• Expected sales and price growth in 2025, especially in the latter half of the year, as housing inventory stabilizes.

Overall, Miami’s real estate landscape is robust, characterized by a unique blend of luxury, affordability, and a strong investment outlook. For individuals contemplating a property purchase, the current climate presents a primed opportunity to engage with this thriving market.

For more details on Miami’s current real estate conditions, visit MIAMI Association of Realtors. Keep up to date with statistics and trends to stay informed about this dynamic sector.