South Florida’s real estate market is experiencing a tale of two cities, with ultra-luxury homes commanding high prices and seeing robust sales, while the condominium sector grapples with declining sales and rising costs. This divergence highlights a shifting market dynamic driven by the preferences of high-net-worth individuals and the ongoing challenges faced by the broader condo market.
Key Takeaways
- Ultra-luxury home sales ($10 million and over) are driving the high-end market in Miami-Dade, Broward, and Palm Beach counties.
- Condo sales have seen a significant drop in Miami-Dade and Broward counties compared to the previous year.
- Median sale prices for both condos and single-family homes have seen a slight decrease year-over-year.
- Housing inventory for condos has increased significantly, indicating a buyer’s market in that segment.
- New condo safety regulations, while aiming for long-term safety, continue to place financial burdens on unit owners.
Luxury Market Dominance
In July, the market for high-end properties in Miami-Dade, Broward, and Palm Beach counties was exceptionally strong. Year-to-date, there have been 262 home sales exceeding $10 million. Projections suggest this pace could lead to 426 ultra-luxury sales by the end of the year, nearing the record set in 2022. Miami is increasingly becoming a preferred location for ultra-high-net-worth individuals, according to the Miami Association of Realtors.
Condo Market Struggles
Conversely, the condominium market is facing significant challenges. In Miami-Dade County, condo sales plummeted by over 17% in July compared to the same period in 2024. Broward County also saw a 7.5% decrease in condo sales year-over-year. While Broward experienced a slight increase in the number of condo properties sold, this was accompanied by a dip in median prices.
Price and Sales Trends
Across the board, median sale prices for both condos and single-family homes have seen a slight decline from the previous year.
- Miami-Dade County: The median condo sale price in July was $406,000, down from $424,950 a year ago. Single-family homes saw a median price of $660,000, down from $670,000.
- Broward County: The median condo sale price was $265,000, down from $272,500. Single-family homes had a median price of $620,000, down from $625,000.
Sales volume for single-family homes also decreased in Miami-Dade compared to both June and the previous year. While Broward saw a slight increase in single-family home sales from June, it was still down year-over-year.
Inventory and Regulations
Housing inventory has expanded significantly in South Florida, particularly for condos. Miami-Dade now has 14.1 months of condo inventory, up from 9 months a year ago, and Broward has 12 months, up from 8 months. This increase suggests a market favoring buyers in the condo segment.
New condo safety regulations, implemented after the Surfside tragedy, continue to impact associations and owners. While a recent reform offers some relief regarding reserve funding, the core requirements for major repairs and assessments remain, placing financial pressure on unit owners.
Sources
- South Florida real estate July trends: luxury leads, Miami Herald.