In a rare turn of events, South Florida’s home prices took a slight dip in November, signaling a potential shift in a market known for consistent growth. For the first time in months, the median price of single-family homes in Miami-Dade and Palm Beach counties decreased by around 3% compared to October, while Broward County saw a modest rise of less than 1%.
While these changes may appear minor, they mark a pause in the upward trajectory of home prices that the region has experienced for years. The combination of higher mortgage rates, a post-pandemic cooling in sales, and an increase in available inventory may be contributing to slower price growth and even minor declines in some areas.
Single-Family Market: A Return to Summer Levels
In November, median home prices in Miami-Dade and Broward counties returned to levels last seen during the summer months. Palm Beach County’s median price, however, dropped to its lowest point of the year. Despite these declines, the luxury market has remained strong, with single-family homes priced at $1 million or more seeing a 12.6% increase in sales compared to a year earlier. This segment continues to support the overall market, even as more affordable homes experience softer demand.
Condo Market Faces Growing Challenges
The condominium market, however, is facing more pronounced difficulties. Inventory levels have been rising for 11 consecutive months, with over 1,000 additional condos listed in November alone. This surge in availability coincides with the implementation of new regulations for older condo buildings in 2024, including mandatory structural inspections and reserve funding requirements. These reforms, aimed at improving safety following the tragic Champlain Towers South collapse, have led to higher costs for condo owners. Many associations have implemented special assessments and raised monthly fees to comply with the new laws.
The increased costs, paired with a cooling demand, have led to a sharp decline in condo sales. Year-over-year sales have dropped by double digits every month since August, according to data from the Miami Realtors Association. However, median condo prices have largely held steady, buoyed by sales of high-end properties, particularly those exceeding $1 million.
Cash Transactions Cushion the Market
While mortgage rates remain a concern, South Florida’s real estate market has been somewhat insulated thanks to a high volume of cash transactions. Approximately one in three home purchases in the region is made without financing, reducing the impact of borrowing costs. In November, the average 30-year mortgage rate was 6.7%, down from a peak of 7.5% a year earlier, according to Freddie Mac. Even with this slight reprieve, higher rates have slowed the pace of sales overall.
Inventory Levels Climb Back to Normal
Housing inventory in South Florida is steadily approaching pre-pandemic levels. As of November, there were over 42,000 single-family homes and condos available for sale across Miami-Dade, Broward, and Palm Beach counties—the highest number since June 2020. This increase offers potential buyers more choices, a stark contrast to the ultra-competitive market conditions seen during the pandemic.
Looking Ahead: High Demand Persists
Despite these shifts, South Florida remains a top-performing real estate market. The National Association of Realtors recently ranked the region as the second-best housing market for 2025, forecasting a 24% increase in sales volume and a 9% rise in median prices compared to 2024. International demand continues to drive growth, particularly in Miami, even as affordability challenges deter some local buyers.
While the South Florida housing market may no longer be the runaway boom it once was, its enduring appeal—fueled by international buyers, a robust luxury segment, and strong cash transactions—ensures it remains one of the most dynamic markets in the country.
