Are you wondering what's going on with the Miami Housing Market Trends right now? The short answer is: it's a bit of a mixed bag. While luxury home sales are booming and condo prices have appreciated significantly over the last decade, overall sales are down, and buyers are gaining some leverage due to rising inventory. Let's dive into the details to get a clearer picture of what's happening in the Miami Real Estate world.

Miami Housing Market Trends: What's Happening in 2025?

Home Sales

According to the data by the MIAMI Association of Realtors and the MIAMI Southeast Florida Multiple Listing Service, the overall number of homes sold in Miami-Dade County in July 2025 decreased by 16% compared to July 2024. We're talking about a drop from 2,122 to 1,782 sales. This decrease is happening for a couple of reasons, elevated mortgage rates and a lack of homes for sale at prices people can afford, play a big role. It's worth noting that this number doesn't include new construction. When we isolate Single-family homes, the sales dropped 14.6%.

On a brighter note, South Florida is set to see the second highest number of homes being sold at $10M and up.

Home Prices

Here's where things get interesting. The median price of a single-family home in Miami-Dade County saw a slight decrease of 1.5% year-over-year in July 2025, settling at $660,000. Condo prices also saw a small decrease. It's like prices finally took a breather after years of skyrocketing. But when we look at the bigger picture, Miami single-family home prices have increased 138.3% since July 2015. That's a huge jump!

Another aspect is the ultra-luxury home sales. Miami-Dade single-family homes over $3,000 per square foot are up 115% from last year.

Are Home Prices Dropping in Miami?

Not necessarily dropping across the board, but we're definitely seeing a moderation in price growth. Single-family home prices saw a slight decrease of 1.5%, and existing condo prices also experienced a small dip.

Even though median prices for affordable 30-year Miami-Dade condos are consistent, that doesn't mean they are dropping.

This can be due to a number of reasons, but mainly elevated mortgage rates and inventory.

Housing Supply

The number of homes available for sale is finally going up! Total active listings in Miami-Dade County increased by 33.5% compared to last year. This means buyers have more choices than they did a year ago, which is a good thing!

Here's a breakdown:

• Single-family home inventory is up 38.89%.
• Condo inventory is up 31.34%.

However, it's important to remember that overall inventory is still 15.6% below pre-pandemic levels. So, while things are improving, we're not quite back to “normal” yet.

Is Miami a Buyer's or Seller's Housing Market?

This is where it gets a little more nuanced.

• For single-family homes, the “months' supply of inventory” is at 6.6 months. This is considered a balanced market, where neither buyers nor sellers have a significant advantage.
• For condos, the “months' supply of inventory” is at 14.1 months. This indicates a buyer's market, meaning buyers have more negotiating power.

MIAMI REALTORS® Chief Economist Gay Cororaton believes we will see a buyer's market through mid-2026.

Market Trends

Let's break down some key trends shaping the Miami Housing market Trends:

• Luxury is Booming: Despite some overall cooling, the ultra-high-end market is still incredibly strong in Miami. People are willing to pay top dollar for luxury properties.
• Cash is King: A significant portion of sales in Miami are cash transactions (37.1% in July 2025), well above the national average. This is likely due to the high number of international buyers and people relocating from more expensive areas.
• Condo Market Still Faces Challenges: While overall inventory is increasing, the condo market is still facing challenges, including a lack of FHA loan approvals for many buildings. This limits financing options for potential buyers.
• Time on Market is Increasing: Homes are taking longer to sell than they were a year ago. The median time to sale for single-family homes increased from 72 days to 85 days, and for condos, it increased from 92 days to 107 days.

Impact of High Mortgage Rates

Mortgage rates definitely play a part in the Miami Real Estate world. Currently, U.S. weekly averages as of 08/21/2025, the average 30-year fixed mortgage rate is around 6.58% and 15-Yr FRM is about 5.69%, according to Primary Mortgage Market Survey® by Freddie Mac. Mortgage rates are at a 10-month low. As mortgage rates remain elevated, they impact buyer affordability and can slow down sales volume. However, the market seems to be adjusting, and sales are still happening, especially in the luxury segment where cash transactions are common.

Purchase demand continues to rise on the back of lower rates and solid economic growth. Though many potential homebuyers still face affordability challenges, consistently lower rates may provide them with the impetus to enter the market. Continued economic growth, along with moderating house prices and rising inventory, bodes well for buyers and sellers alike. According to various forecast, 30-year FRM rate will end 2025 between 6.0 to 6.5 percent.

Miami Real Estate: Key Market Stats

Category	Data (July 2025)	Year-over-Year Change
Total Sales	1,782	-16%
Single-Family Home Sales	861	-14.6%
Condo Sales	921	-17.3%
SFH Median Price	$660,000	-1.5%
Condo Median Price	$406,000	-4.46%
SFH Inventory (Listings)	5,539	+38.89%
Condo Inventory (Listings)	12,838	+31.34%
Cash Sales	37.1%	Increased

Source: MIAMI Association of Realtors (MIAMI)

Final Thoughts

So, what does all this mean for you? If you're a buyer, you might have a bit more negotiating power than you did a year ago, especially in the condo market. Take your time, shop around, and don't be afraid to make an offer. If you're a seller, it's important to be realistic about pricing and understand that homes may take longer to sell. Work with a knowledgeable real estate agent to develop a smart marketing strategy.

Overall, the Miami Housing Market Trends is still a strong market, but it's definitely shifting. Keep an eye on those mortgage rates, inventory levels, and economic indicators to stay informed and make the best decisions for your situation.

Miami Housing Market Forecast for 2025 and 2026

So, you're wondering about the Miami Housing Market Forecast, right? Are we headed for a boom, a bust, or something in between? Here's the short answer: Experts predict a period of modest growth after a slight dip. While the Miami housing market may experience some short-term fluctuations, overall, the signs point towards a stabilization and a slow market recovery in the coming months and years. Let's dive into the details.

Right now, the average home value in the Miami-Fort Lauderdale-West Palm Beach area is around $476,603, which is down about 3.7% from last year. And homes are sitting on the market for roughly 60 days before going pending. It's a bit of a slowdown compared to the frenzy we saw a couple of years ago.

Miami Real Estate Projections for 2025

Let's look at some specific predictions from Zillow. As of July 2025, forecasts indicate a varied trajectory in the near term:

• August 2025: Prices are expected to decrease slightly, by around 0.5%.
• October 2025: The downward trend continues, with an anticipated drop of around 0.9%.
• One-Year Outlook (July 2025 – July 2026): We could see a slight increase of around 0.5%.

Here's a simplified table:

 

How Does Miami Compare to the National Outlook?

It's always helpful to see what's happening across the country. Lawrence Yun, the Chief Economist at the National Association of Realtors (NAR), believes brighter days are ahead nationwide. Here's what he's predicting:

• Existing Home Sales: Expected to jump 6% in 2025 and another 11% in 2026.
• New Home Sales: Predicted to increase by 10% in 2025 and 5% in 2026. This will help ease the housing inventory shortage.
• Median Home Prices: Expected to continue to rise modestly, with estimated appreciation of around 3% in 2025 and 4% in 2026.
• Mortgage Rates: He anticipates mortgage rates to hang around 6.4% in the second half of 2025 and then dip down to 6.1% in 2026.

So, while Miami might see a little more volatility than the national average, the overall trend seems to be heading in a positive direction

Will Miami Housing Market Crash?

Given these forecasts, a complete housing price crash in Miami seems unlikely. While some adjustments are happening, a crash requires a perfect storm of factors, like massive overbuilding and widespread mortgage defaults. The current situation feels more like a market correction, a rebalancing after a period of rapid growth.

Looking Ahead to 2026

Based on the trends and expert opinions, I'd guess that 2026 will bring a more stable real estate market in Miami. The slight price increases predicted for the nation as a whole should also have an upward push on Miami real estate. While this is just speculation based on current trends, it's possible that we could see a small, but steady, increases in home values as interest rates possibly go down and housing inventory slowly stabilizes.

In Conclusion: The Miami housing market forecast suggests a period of modest growth as well as stability after a slight dip. I think we may be in for a period of recovery.

Should You Invest in the Miami Real Estate Market?

Population Growth and Trends

When considering investment in the Miami real estate market, population growth and trends play a pivotal role. Miami's population has been steadily growing over the years, driven by both domestic and international migration. Here's why this matters for investors:

• Population Growth: Miami's population has been on an upward trajectory, attracting residents from all over the United States and abroad. This influx of people creates a consistent demand for housing, making it an attractive market for real estate investors.
• International Appeal: Miami's international appeal is a significant driver of population growth. The city's vibrant culture, pleasant climate, and international business connections make it a magnet for individuals from around the world. For investors, this diverse population presents opportunities in various real estate sectors, including residential and commercial properties.

Economy and Jobs

Examining the economy and job market is critical for real estate investment decisions:

• Economic Strength: Miami boasts a diverse and robust economy. It's a hub for international trade, tourism, finance, and technology. A strong and diversified economy helps ensure a stable demand for real estate, both for commercial and residential purposes.
• Job Opportunities: The availability of job opportunities in Miami is a key factor for real estate investors. A thriving job market attracts professionals, and this, in turn, leads to higher demand for rental properties, as many newcomers prefer renting initially.

Strong International Market

Miami's real estate market benefits from a strong international presence:

• Global Investment: Miami is a favored destination for international investors. Buyers from South America, Europe, and other regions consider Miami a safe and attractive place to invest in real estate. As an investor, you can tap into this global demand for properties.
• Foreign Investment: Foreign investors often seek properties in Miami for various purposes, including vacation homes, second residences, and income-generating rental properties. This international interest adds stability and growth potential to the local market.

Livability and Other Factors

Livability and lifestyle factors contribute to the city's attractiveness:

• Lifestyle Appeal: Miami's lifestyle, with its beautiful beaches, cultural attractions, and vibrant nightlife, makes it an appealing place to live. This lifestyle appeal increases demand for both residential properties and rental units.
• Weather and Climate: Miami's tropical climate is a major draw for residents and tourists alike. The city's pleasant weather encourages year-round tourism and can contribute to the demand for rental properties.

Big Rental Property Market Size and Its Growth for Investors

Miami offers a thriving rental market:

• Rental Demand: The city's diverse population, strong job market, and international appeal create a substantial demand for rental properties. This is advantageous for real estate investors, as it means a steady stream of potential tenants.
• Rental Income Potential: Miami's rental market has significant income potential. Depending on the neighborhood and property type, investors can generate attractive rental income. High rental rates can translate into favorable cash flow for property owners.