Miami Luxury Real Estate Surges in February 2025: Strong Growth Despite National Market Trends

Miami-Dade County’s luxury real estate market continues to lead the way. In February 2025, single-family homes priced $1 million and up and condo median prices both recorded year-over-year increases. The region’s upward momentum places the Miami metro area as the No. 2 housing market in the U.S., according to the latest statistics from the MIAMI Association of Realtors.

Luxury Market Momentum: What the Numbers Say

High-end homes priced at $1 million and above saw a 3.6% increase in sales year-over-year. At the same time, the total dollar volume of all sales climbed 4.48%, and the median condo price jumped 8.3% to $455,000. Despite turbulence in the stock market, Miami’s luxury segment remains strong, backed by a steady influx of international buyers and equity-rich homeowners.

International Demand and Economic Migration

Miami-Dade’s growth is largely fueled by international migration. According to recent Census data, the county leads the nation in net international arrivals—helping fuel demand for luxury properties even during volatile market periods.

Equity and All-Cash Strength

Miami’s real estate market stands out nationally for its financial resilience:

• 38.1% of Miami’s 2024 sales were all-cash, placing it fifth nationally.

• West Palm Beach led the U.S. in all-cash transactions with nearly 50% of sales made without financing.

• Miami-Dade ranks fifth in the nation for equity-rich homes, with 64.4% of homes having low loan-to-value ratios.

  
  

Condo and Single-Family Appreciation

Miami real estate has delivered consistent long-term appreciation:

• Condos: Up 141% over the past 10 years, with median prices increasing from $189,000 to $455,000.

• Single-family homes: Up 167.3% since 2015, rising from $245,000 to $655,000.

• February 2025 marked the 159th consecutive month of price growth for single-family homes—a national record streak.

Rising Inventory, Yet Still Below Pre-Pandemic

While inventory levels have grown year-over-year, the market remains undersupplied:

• Condo inventory is up 42.4% YoY but still 31.9% below pre-pandemic levels.

• Single-family inventory increased 32% from the prior year.

• Overall listings are still 6.5% lower than Miami’s historical average.

Despite more choices, condo inventory remains a buyer’s market (12.6 months of supply), while single-family homes sit in a seller’s market at 5.8 months.

The Economic Impact of Real Estate Sales

With a total dollar volume of $1.5 billion in February 2025, real estate continues to significantly boost the local economy. According to NAR, each Florida home sale contributes $129,000 in economic impact—translating to a $185.8 million boost from February’s 1,440 sales.

FHA Loan Limitations and Affordability Efforts

A key constraint remains the limited FHA loan approvals—only 21 buildings across three counties qualify. Florida’s unique requirement of a 25% down payment (versus 10% in other states) for certain condos restricts affordability and access for many buyers.

Meanwhile, the Live Local Act, passed in 2023 and amended in 2024, is encouraging developers to dedicate up to 40% of new units to affordable housing, granting density bonuses in return.

Outlook for 2025: Momentum with Market Watch

Although total sales dipped 15.5% YoY, largely due to inventory and financing challenges, experts anticipate a resurgence:

• Mortgage rates are forecast to drop below 6.5% by year-end.

• Homebuyers now have more negotiating power with inventory slowly climbing.

• Miami remains a value buy globally—$1 million purchases more space here than in other top cities like London, New York, or Sydney.