Miami’s residential real estate market is showing clear signs of deceleration, with overall sales volume down notably in May 2025—even as long-term price growth and global demand continue to support the market’s resilience.
According to the latest data from the MIAMI Association of Realtors and the Southeast Florida MLS, total home and condo sales in Miami-Dade County dropped 20.2% year-over-year, falling from 2,397 transactions in May 2024 to just 1,913 this past month.
The most pronounced decline was in the existing condominium market, where sales fell by 25.1%, dropping from 1,295 to only 970 units. Meanwhile, single-family home sales also contracted, posting a 14.4% decline with just 943 transactions in May.
“Sales have remained weak with mortgage rates hovering near 7%,” said MIAMI Realtors Chief Economist Gay Cororaton. “The good news is that affordability conditions are poised to improve if the Federal Reserve begins cutting interest rates in the second half of the year.”
Prices Hold Steady Amid Volume Weakness
While sales volume is softening, prices remain impressively resilient—a reflection of the strong long-term demand for the Miami lifestyle, especially from international and second-home buyers.
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The median existing condo price in May held flat year-over-year at $425,000. That’s part of a remarkable 14-year streak: 160 monthly price gains or holds in the past 168 months.
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Since 2015, condo prices have risen 103%, up from $209,000.
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Single-family home prices have grown even faster—up 139.4% in the past decade, with the median reaching $675,000 in May 2025.
Miami’s price appreciation continues to outpace broader trends. In comparison:
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Florida condo prices dropped 6.1% year-over-year.
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Nationally, the median home price rose 1.3% to a record $422,800.
Inventory Growth Returns—But Remains Tight vs. Pre-Pandemic
Inventory is beginning to recover, although it’s still constrained compared to pre-2020 levels.
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Total active listings in Miami-Dade jumped 40.8% year-over-year to 18,879.
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That said, inventory remains 17% below May 2019.
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Condo inventory rose 39.5% to 13,192 units, but still trails the pre-pandemic peak of nearly 16,000.
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New condo listings dipped 3.4% from a year ago, suggesting that many sellers are waiting on the sidelines.
Miami's current condo inventory equals 14 months of supply, firmly positioning the segment as a buyer’s market. In contrast, single-family homes have 6.6 months of supply, which is closer to a balanced market.
Luxury Segment and Cash Sales Stay Strong
The upper end of the market continues to perform well.
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Sales of condos priced at $1 million and above rose 78% compared to May 2019—up from 88 to 157 transactions.
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Cash remains dominant, with 37% of all sales in May closing without financing, significantly above the 27% national average.
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Among condo transactions specifically, more than half were cash deals.
Financing Challenges Remain for Entry-Level Buyers
While luxury sales thrive, financing hurdles persist, particularly in the condo sector.
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Only 21 condo buildings in the entire tri-county area are FHA-approved, restricting access for many first-time and moderate-income buyers.
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Florida's strict reserve requirements also make securing financing for condos more challenging than in many other states.
Economic Impact & What’s Next
The slowdown in May translated into a 14.17% decline in total dollar volume, which fell from $2.2 billion in May 2024 to $1.9 billion this year. Breaking it down:
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Condo dollar volume fell 9.5% to $854 million
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Single-family volume dropped 17.5% to $1 billion
Still, the market generated an estimated $246 million in local economic impact, based on National Association of Realtors benchmarks.
Looking forward, the upcoming new construction data report from MIAMI Realtors is expected to offer key insights into pre-construction and shadow inventory—a crucial factor as South Florida sees an influx of developer-driven projects not reflected in MLS statistics.
Final Thoughts
Though sales volume has softened, the fundamentals of Miami’s housing market remain strong, particularly in the luxury and international segments. As mortgage rates stabilize and new inventory reaches the market, the path forward may offer more opportunities—especially for buyers navigating a shifting landscape.
“No other U.S. market can boast the long-term resiliency of the Miami condo market,” said MIAMI Realtors Chairman Eddie Blanco. “People from around the world will always want a piece of the Miami lifestyle.”
Source: https://www.worldpropertyjournal.com/
