The South Florida real estate market is showing signs of a cooling trend, with sales increasing and prices declining in key areas like Miami-Dade and Broward counties. This shift, attributed to factors such as lower mortgage rates and a correction after pandemic-era price surges, is creating a more favorable environment for buyers.
Key Takeaways
- Residential sales, including both condos and single-family homes, saw year-over-year increases in Miami-Dade and Broward counties in December.
- Median prices for both condos and single-family homes have decreased in these counties compared to the previous year.
- Inventory levels suggest a buyer’s market, particularly for condos in Miami-Dade.
- High-end home sales ($10 million and up) remain strong, nearing all-time highs.
- Sellers are increasingly pulling homes from the market, leading South Florida to top national rates in this trend.
Shifting Market Dynamics
In December, Miami-Dade County experienced a 5.9% rise in total residential sales compared to the previous year. Single-family home sales increased by 3.7%, while existing condo sales saw a 7.9% jump. Broward County reported even stronger growth, with total home sales up 7.9%, single-family homes up 10.6%, and condos up 5.2%.
Sophia Allen, president of the Miami Association of Realtors’ Broward chapter, cited lower mortgage rates and an influx of wealthy individuals to South Florida as primary drivers for these trends. Despite the increase in sales volume, prices have continued to adjust downwards. Miami-Dade saw median prices for single-family homes and existing condos decrease by just over 2% year-over-year. In Broward, median existing condo prices dropped by 9.3%, and single-family home prices fell by nearly 1%.
Buyer’s Market Emerges
The inventory data further supports the notion of a cooling market. Miami-Dade’s condo market had approximately 13 months of supply in December, indicating a strong buyer’s market. The single-family home market in the same county is more balanced, with about six months of supply.
High-End Market Resilience
While the broader market cools, the luxury segment remains robust. South Florida saw 361 home sales of $10 million or more in 2025, nearing the record set during the pandemic-fueled buying surge of 2021. In Miami-Dade, sales of homes priced at $1 million and above also increased, with condo sales up 2.45% and single-family home sales up 12%.
Sellers Hesitate, Pulling Listings
Adding another layer to the market’s evolution, South Florida is leading the nation in sellers removing their homes from the market. According to Realtor.com, 59 out of every 100 homes listed in the Miami-Fort Lauderdale-West Palm Beach metro were removed in July, with listings spending an average of 88 days on the market – significantly longer than the national average. Real estate expert Bryan Gorrita attributes this trend to rising ownership costs, including insurance and property taxes, and sellers holding out for prices that reflect pandemic-era highs, rather than current market realities.
Interest Rates and Future Outlook
Falling mortgage rates, influenced by the Federal Reserve’s interest rate decisions, are expected to continue supporting the housing market. While cash buyers form a significant portion of the South Florida market, lower rates are crucial for first-time buyers and those sensitive to borrowing costs. The market is anticipating continued stabilization and potential growth in 2026, buoyed by lower rates, a stabilizing condo market, and ongoing migration.
Sources
- Home prices are falling as sales are rising in South Florida, Miami Herald.
- Prediction for South Florida real estate future – NBC 6 South Florida, NBC 6 South Florida.
- South Florida homes are being pulled from the market at highest rate in nation – NBC 6 South Florida, NBC 6 South Florida.
- Fed’s interest rate decision matters to South Florida’s housing market, WLRN.
- Has the Florida housing market bottomed out?, WLRN.