Miami Real Estate Market Poised for Continued Growth in 2025
Miami-Dade County Single-Family Home Sales Rise Year-over-Year in November
Miami-Dade County's single-family home sales continued their upward trend in November 2024, putting the market on track to surpass last year's annual total. This positive momentum comes despite mortgage rates hovering near 7% throughout the year. Notably, Miami single-family home transactions have increased year-over-year in seven out of the first eleven months of 2024, demonstrating the market's resilience.
Miami Ranked as a Top Housing Market in 2025 by Realtor.com
Miami's real estate market is projected to remain a highly sought-after and competitive landscape in 2025, driven by strong fundamentals and continued in-migration. This promising outlook is supported by Realtor.com's 2025 Top Housing Markets forecast, which ranked Miami-Fort Lauderdale-Pompano Beach as the second-best housing market in the United States. The forecast predicts a 24% year-over-year increase in sales and a 9% increase in median sale prices for 2025. Furthermore, Miami holds the second-highest ranking in the U.S. for home-price appreciation, according to the December 2024 CoreLogic Home Price Index.
Miami Real Estate Market Sees Impressive Price Appreciation
The Miami-Dade real estate market continues to exhibit impressive price appreciation. Existing condo median prices increased by 3.9% year-over-year in November 2024, reaching $436,354. This marks a significant increase of 129.7% since November 2014. Similarly, single-family home median sale prices saw a 5.7% year-over-year increase, reaching $650,000 in November 2024. This consistent price growth underscores the strong demand and limited supply within the Miami real estate market.
Miami Remains a Valuable Option Compared to Other Global Cities
Despite the increase in prices, Miami remains a valuable option compared to other global cities. According to the 2024 Knight Frank The Wealth Report, $1 million can secure at least 60 square meters of prime property in Miami, significantly higher than other major cities such as Sydney, Shanghai, Paris, Los Angeles, New York, Geneva, London, Singapore, Hong Kong, and Monaco.
Miami Real Estate Generates Substantial Economic Impact
The Miami real estate market's robust performance has a substantial economic impact. Each home sale contributes to the local economy through various channels, including income generated from real estate industries, expenditures related to home purchases, and the multiplier effect of housing-related expenditures. The total economic impact of a typical Florida home sale is estimated at $123,000, translating to an estimated $185 million impact for Miami-Dade County in November 2024 based on the number of homes sold.
Miami's Distressed Sales Remain Low, Reflecting Healthy Market
The low percentage of distressed sales in Miami further indicates a healthy market. Only 0.9% of all closed residential sales in Miami were distressed last month, which is significantly lower than the national average.
Miami Sales and Price Appreciation Outperform Nation and State
Miami's real estate market is outperforming both the national and state averages in terms of sales and price appreciation. While closed sales nationwide increased by 4.8% in November 2024, Miami's single-family home sales increased year-over-year in seven out of the first eleven months. Additionally, Miami's median sale prices for single-family homes and existing condominiums have risen significantly compared to the national and state figures.
Miami Real Estate Attracts Cash Buyers
Miami continues to attract a high percentage of cash buyers, reflecting its status as a top market for foreign investors and domestic buyers relocating from high-cost areas. Cash sales represented 37.4% of Miami closed sales in November 2024, compared to the national average of 25%.
Conclusion
The Miami real estate market is poised for continued growth in 2025, driven by strong fundamentals, in-migration, and consistent price appreciation. Despite rising mortgage rates, Miami's real estate market offers a valuable option for domestic and international buyers seeking a vibrant and growing city.
Note: Statistics in this news release may vary depending on reporting dates. MIAMI reports exact statistics directly from its MLS system.