By Gay Cororaton, MIAMI REALTORS Chief Economist
Key Takeaways
- The median single-family sales price in Miami-Dade County rose 0.8% in February 2025 from one year ago, with prices up in 72% of areas, with the fastest increase in million-dollar markets.
- The median condominium/townhome sales price in Miami-Dade County rose 8%, with prices up in 41% of areas, with the highest price increase in upper price-tier markets.
- Prices are likely to continue to increase at a modest pace given current supply conditions and with a modest uptick in demand as mortgage rates fall to the low 6% by the end of 2025.
Read the February 2025 Southeast Florida Housing Market Report HERE.
Single-family median sales price rose 0.8% as prices rose in 72% of markets
The median single-family sales price rose 0.8% in February from one year ago in Miami-Dade County. This is a phenomenal record of 185 consecutive months of year-over-year increases since December 2011. Over the past 10 years, the median single-family sales price increased 167%.
High-price tier buyers continue to drive the market. The number of homes sold at $600,000 to $999,999 rose 4.9% from one year ago and homes $1 million and over rose 3.4%. Meanwhile, the number of homes that sold for $600,000 and below fell at a double-digit pace. In the first two months of the year, million-dollar sales accounted for 25% of sales, nearly triple the 8% share in 2019.
MIAMI Realtors 2024 Luxury Market Report revealed that the luxury home threshold in Miami-Dade County (top 5% of sales) rose to $3.3 million in 2024 from $1.4 million in 2019. The uber luxury (top 1% threshold) rose $10.0 million from $3.5 million in 2019[1].
Condominium/townhome median sales price rose 8% as prices rose in 41% of markets
In the condominium/townhome market, the median sales price rose 8% in February from one year ago. Over the past 10 years since February 2015, the median condominium home sales price has increased 141%.
The median condominium sales prices rose in 41% of markets, with prices declining in most markets with high levels of inventory such as Surfside (30 months’ supply, -65%), Sunny Isles (22 months’ supply, -40%), Bal Harbour (20 months’ supply, -44%), and Aventura (19 months’ supply, -20% ).
However, there were also markets with high levels of inventory that had rising prices such as Miami (16 months’ supply, +7%), North Miami Beach (23 months’ supply, +15%), and North Bay Village (17 months’ supply, +41%).
Hot Markets as of February 2025
Based on the year-to-date sales as of February and the median sales prices and months’ supply for the current month, there were nine hot markets in Miami-Dade County, a mix of high-priced and lower-priced markets. In the order of the largest market size, Miami-Dade County’s hot markets are:
- Miami Gardens, $520,000
- Homestead, $499,500
- Kendall, $1.36 million
- Richmond West, $655,000
- Tamiami , $690,000
- Leisure City , $491,500
- Golden Glades, $590,000
- Richmond Heights, $540,000
- Westchester, $791,500
Prices are likely to continue to increase at a modest pace
Prices are likely to continue to increase at a modest pace as sellers adjust their price expectations given the level of supply on the market. In areas that are more affordable where there is little supply relative to demand, prices are likely to continue to rise faster. However, in high price tier markets where inventory continues to build up, sellers will likely adjust their price expectations. Given the years of price accumulation, sellers are not likely to have negative equity. In fact, distressed sales are at their lowest level in years, hovering at 1% in the Tri-County area. Mortgage rates could fall to the low 6% by the end of 2025 with the Fed prepared to lower the federal funds rate by a total of 0.5 percentage points (50 basis points). Lower mortgage rates will likely perk up demand but only modestly as buyers are likely to remain cautious in making big financial decisions amid increased economic risks and uncertainty of their financial condition.
