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South Florida’s Real Estate Market Is Cooling Down—And Fast

For years, South Florida was one of the hottest real estate markets in the U.S.—especially during the pandemic. But now, signs of a slowdown are starting to show.

According to a recent report by Miller Samuel and Douglas Elliman, home sales across Miami Beach and the barrier islands dropped sharply in the first quarter of 2025. We’re talking double-digit declines in sales, along with a noticeable rise in housing inventory.

What’s Behind the Drop?

It’s a combination of things. Property insurance premiums are rising, property taxes are climbing, and many buyers are just being more cautious. That dream of sun-soaked living is coming with a higher price tag—literally

National builder KB Home recently told investors they’re cutting prices in Florida by over $30,000 to keep sales moving, especially in slower markets.

In Miami-Dade County, newly signed contracts for both condos and single-family homes fell for the third straight month in March. And that’s despite a rise in new listings.

A Different Story in Palm Beach

Not all of South Florida is cooling. Palm Beach is holding steady—and even heating up in some areas.

New contracts for single-family homes there have been rising year-over-year. Luxury sales are also strong, with some agents referring to the recent boom as the “Trump Bump,” sparked by December momentum in high-end deals.

Still, Palm Beach sellers need to adjust their expectations. According to Simon Isaacs, CEO of Simon Isaacs Real Estate, buyers are becoming more price-sensitive. “There’s more inventory now, and many sellers or developers had unrealistic ideas about what their properties were worth,” he said.

What Buyers Are Thinking

Today’s home shoppers aren’t rushing in blindly. They’re paying close attention to interest rates, insurance costs, and property taxes. And with mortgage rates still relatively high, buyers are asking tougher questions and taking their time.

Simon Isaacs summed it up well: “South Florida isn’t crashing—it’s just becoming a more balanced market.”

Condo Sales Hit the Brakes

Condos are taking a particular hit. Inventory levels are at an all-time high, especially across the barrier island communities like Sunny Isles Beach, Key Biscayne, and Surfside. New developments are outpacing demand, and recent natural disasters have pushed insurance premiums higher than ever.

Add in new statewide building safety rules, and many condo buildings are facing skyrocketing HOA fees—another red flag for buyers.

Even Luxury Properties Are Feeling It

While Palm Beach’s luxury market is strong, high-end listings in Miami-Dade and Broward County have dropped. Contracts for homes over $1 million are down, showing that even wealthy buyers are being more selective.

Bottom Line

South Florida’s market is cooling—but it’s not collapsing. Rising costs, cautious buyers, and increased inventory are bringing things back to reality after years of red-hot growth. Sellers who adjust their prices and expectations will still find opportunities, while buyers now have a bit more breathing room to shop smart.