Latest Miami Real Estate Trends – May 2025 Miami Housing Market Update

The 2025 Miami Housing Market is showing a widening divide between the ultra-high-end and upper-mid tiers. The top of the market is vibrant and competitive, while the rest is marked by oversupply, longer timelines, and buyer caution. This is not a one-size-fits-all market—performance depends heavily on price point, quality, and location. Here’s what you need to know as a seller or buyer per price range.

Key Data for the 2025 Miami Housing Market

The strongest Market: $10M+

Conclusion: The ultra-luxury segment is seeing a clear resurgence with robust demand, faster sales, and less seller compromise. It’s the most improved and competitive market with high demand.

Weakest Market: Upper-Mid ($6M–$10M)

This is the softest segment—oversupplied, with falling prices and buyer hesitation. Sellers face pressure to cut prices and wait longer. A clear buyer’s market. High inventory and steep discounts reflect reduced demand and longer decision timelines. The influence of stock market corrections and high interest rates start into effect.

Where are listings sitting?
There are currently 206 homes on the market, with the highest concentration in Miami Beach — especially compared to actual sales in the area.

What’s not selling?
35% of listings have been on the market for over 5 months. The hardest homes to sell fall into three categories:

• Older homes needing major renovations
• Tear-downs
• Newer homes in secondary locations like Keystone Islands or west of US-1 in South Miami, where buyers feel the location doesn’t justify the price

Even in prime locations, new builds that feel generic and are priced like custom homes tend to linger — but this is less of an issue.

What’s expiring?
Most expired listings follow the same pattern: gut jobs, dated homes, or newer builds in lower-value areas like Stillwater and Belle Meade.

“Should I buy now or wait?
You can wait a bit longer, but sellers need to understand how challenging the current market is. We’re seeing plenty of showings but fewer serious buyers taking action. That said, highly customized homes are still selling — but they’re increasingly rare. Many homeowners are locked into 4% mortgages and simply aren’t motivated to sell.

Why is this Market the Weakest?
The upper-mid ($6M–$10M) market is struggling due to a mismatch between buyer expectations and available inventory. Buyers are caught between wanting trophy homes that feel unique and secure but often finding properties that need work or are overpriced. With high supply and uneven quality, hesitation and “wait and see” attitudes dominate this segment.

$3M-$6M Market

Conditions favor buyers more in this range; inventory is growing, homes are taking longer to sell and sellers are increasingly negotiating on price. We’re getting calls from buyers actively looking — but they’re after high-end, truly custom homes, and that inventory is scarce. What we do see a lot of are poorly renovated older homes or basic spec builds that don’t meet their expectations. The few homes that are very well updated sell within a week. Examples: Jeronimo Dr and 76th Terrace.

Core Market ($1M–$3M):

This segment is softening slightly with longer selling times and mildly higher inventory, but pricing remains relatively stable. Sales activity is steady across all areas of town. The core luxury ($1M–$3M) market remains steady but slow, as buyers are highly sensitive to interest rates and are often leveraging debt. Motivated by life-stage needs, such as family planning and stability, they are cautious and waiting for favorable conditions, leading to slower decision-making and minimal price growth. While emotionally invested, they seek fair value over inflated prices. We’re also likely to see a significant bump once interest rates come down.

Rental Market Insights

Overall Takeaways:

• The core luxury rental market ($5K–$15K) is stable and reliable.
• The $15K–$30K range is more sluggish, with either flat or declining prices.
• The ultra-luxury ($30K+) segment is booming in both price and activity.

Many $6M+ buyers are opting to rent instead. With low mortgage rates locked in, some sellers are choosing to lease until the market improves.

Has the Top Dollar per SF Softened at the High End?

Not at the very top — but definitely below it.

• In 2025, the ultra-luxury market ($10M+) took off, with a record price of $7,600 per SF, up from $5,350 in 2024. Just one home sold above $5,000/SF in 2024 — this year, there were three. Even more striking: 16 homes sold for $3,000+/SF in 2025 compared to just 4 the year before. Demand at the very top appears stronger than ever.
• By contrast, the $6M–$10M tier cooled, despite a slight increase in peak pricing. The top sale rose to $3,500/SF (from $3,200 in 2024), but the number of homes selling above $2,000/SF dropped from seven to four. Only one home crossed the $3,000/SF mark both years, suggesting buyers in this range are growing more cautious.
• The $3M–$6M segment stayed flat, with top sales remaining in the $1,600–$1,700 per SF range. Around seven homes exceeded $1,500/SF each year, showing no clear shift in pricing momentum.
• In the $1M–$3M range, price sensitivity became more evident. In 2024, several smaller, well-designed homes pushed close to $2,000 per SF. In 2025, the top end mostly hovered around $1,200–$1,300 per SF, indicating that buyers in this bracket are less willing to pay premiums for aesthetics or finishes.

The Effects of the Uncertain Economy on Sales

Recent events haven’t slowed sales, which are tracking in line with the rest of the year.

Connect with David.

If you want to know more about the Miami Real Estate Market and the trends that affect your personal situation please contact me today at 305.508.0899 or schedule a meeting via the application below.