As noted in Anthony’s Predictions for 2026, 2025 was “a year riddled with industry headlines surrounding tariffs, the new Trump Administration, and major national economic and trade shifts—yet one that was met with remarkable market resilience. Despite the noise, 2025 will be remembered as the pivot year where the real estate market began moving back in the right direction.” That resilience was evident across South Florida, even as the market adjusted to slower transaction volume and persistently rising prices.
Throughout 2025, the South Florida housing market reflected a recalibration rather than a reversal. While home prices continued to climb, sales activity, new listings, and pending sales all declined year over year – especially for condos. Buyer demand remained present but more selective amid affordability pressures and elevated borrowing costs. At the same time, inventory constraints, driven largely by single family homeowners holding onto ultra-low pandemic-era mortgage rates, continued to limit options and support price growth. New, high-end construction sales as well as the higher average prices in Miami-Dade County also propped up average prices for South Florida.
Many would-be sellers remained hesitant to trade in their favorable rates, resulting in fewer homes coming to market and softer overall activity. However, life changes and shifting financial priorities still brought a steady flow of motivated sellers forward. With fewer transactions, especially with condos, and more price sensitivity among buyers, accurate pricing and strong positioning became increasingly important. Buyers who remained active approached the market with a longer-term mindset, weighing higher prices against South Florida’s continued appeal, lifestyle benefits, and long-term investment potential. Even in a higher-rate environment, homeownership continued to stand out for its stability, equity-building opportunity, and predictable monthly payments compared to renting.
This report breaks down sales, average prices, the number of active listings, and how many listings went under contract for 2025 compared to 2024, and discusses what is predicted to unfold in 2026.
2025 Real Estate Performance Highlights:
- The number of homes sold decreased by -3.8%
- Average prices for closed sales increased by 6.2%
- The number of homes listed decreased by -2.2%
- The number of homes placed under contract (pending) decreased by -3.2%
- Inventory overall has risen year over year, to levels not seen since before the pandemic, giving buyers more selection, and could indicate that prices may not rise as steadily in 2026
Sales Decline by 7.6%
Sales in South Florida decreased for both single family as well as condo/townhomes in 2025 when compared to 2024, reflecting a more cautious buyer pool. Single families experienced just a slight decrease, while condo/townhomes saw a larger drop.
Sales were down in both categories:
- Single family sales down by -0.3%: 36,235 in 2024 to 36,126 in 2025
- Condo/townhome sales down by -7.5%: 34,700 in 2024 to 32,107 in 2025
Below is a graph that illustrates home sales per year since 2008, with single families in blue and condos/townhomes in green. Elevated mortgage rates for much of the year weighed on affordability, particularly for first-time and payment-sensitive buyers. While rates moved more favorably toward the end of the year, the improvement came late in the cycle and was not enough to fully offset earlier softness in activity.
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Monthly sales were down in the first two-thirds of the year and then increased from September to December. Despite the slowdown, buyer interest did not disappear; it became more deliberate. Well-priced, well-located homes continued to attract attention, while overpriced listings faced longer market times.
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Both Broward and Miami-Dade counties exhibited declines in sales while Palm Beach increased slightly- indicating the luxury market wasn’t as impacted by rates and affordability challenges.
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Average Prices Increase by 11%
Prices overall in 2025 increased over 2024 by $48,737, with 2024 at $786,636 compared to $835,373 in 2025. Even as sales volume slowed, average home prices in South Florida continued to move higher in 2025. Limited inventory, strong demand from out-of-state buyers, and South Florida’s ongoing appeal as both a primary and secondary home market kept upward pressure on prices.
Prices increased in both categories:
- Single family prices increased by 5.3%: $1,025,676 in 2024 to $1,079,600 in 2025
- Condo/townhome prices increased by 4.5%: $537,206 in 2024 to $561,594 in 2025
The bar chart below highlights that 2025 recorded the highest average home prices since 2008 for both categories—and indeed, the highest on record. Affordability challenges persisted, but competition for desirable properties, single families in particular (see blue line), frequently resulted in multiple-offer scenarios and strong sale prices.
Condo prices haven’t increased to the same extent of single families due to the rising costs associated with condo living and regulations in place to ensure up to date inspections and repairs as a result of legislative changes due to the Surfside Collapse.
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Monthly prices overall in 2025 consistently exceeded those of 2024, except for June. The growth since COVID is evident when comparing the 2020 green line to the 2025 purple line, highlighting the substantial price increases over time.
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Average prices increased across all South Florida counties in 2025. South Florida has seen a steady rise in home value over the years due to demand and higher-priced sales, inflating average prices. The drop in sales hasn’t impacted the market enough for prices to decline.
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2025 Listings Decline Overall
Single family listings increased slightly, while condo/townhome listings dropped more significantly, bringing the overall down year over year. Although some sellers moved forward due to life changes, overall listing activity remained below long-term norms, limiting buyer choice and reinforcing price strength.
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Pending Sales Decreased by 9.8%
Pending sales also trended lower in 2025, reflecting the combined impact of affordability pressures, limited inventory, and a more selective buyer pool. Buyers who did move forward tended to be well-qualified and strategic, often prioritizing long-term value over short-term rate movements.
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South Florida Housing Inventory is on the Rise
Inventory in South Florida has maintained its pre-pandemic level since late 2024. The decline in new listings, pending sales, and closed sales has helped inventory gain its growth momentum in 2025. Usually, this indicates that prices may continue to soften with more buyer negotiating power, so 2026 may see less of an increase in prices.
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Will the 2026 Real Estate Market Improve?
As 2025 came to a close, signs of stabilization emerged. Mortgage rates showed improvement toward the end of the year and dipped further early in 2026, helping restore confidence among both buyers and sellers. While high prices remain a hurdle, slower price growth and improving rate conditions are expected to support increased activity moving forward in South Florida.
Inventory remains tight by historical standards, but any meaningful increase in listings could help unlock pent-up demand. Sellers will need to remain mindful of pricing and presentation, while buyers may find more opportunities as market conditions gradually normalize.
As Anthony noted in his 2026 Predictions, “2025 was certainly an adjustment year that set the stage for a healthy 2026. We are on the other side of this down cycle and are on our way back to a steady and active real estate market in the years to come.”
The post South Florida 2025 Year in Review first appeared on Lamacchia Realty.