Higher mortgage rates have done little to slow South Florida's housing market.
Miami-Dade home sales increased for the ninth consecutive month in May, with total transactions rising 7.9% year over year to 2,064, led by double-digit growth in single-family home sales and continued strength in the luxury segment.
The strongest gains came at the upper end of the market. Sales of homes priced at $1 million and above increased 14.7% from a year earlier, while luxury single-family home transactions jumped 26.7%.
"The story of Miami real estate has always been long-term growth and resilience," said Alfredo Pujol, chairman of the board for MIAMI REALTORS®. "Miami and South Florida continue to be one of the nation's top-performing housing markets, delivering homeowner equity gains that are nearly twice the national average."
Miami remains one of the country's most cash-heavy housing markets, with cash purchases accounting for 38.7% of all sales in May. Nearly half of all condominium transactions were completed with cash.
The region's luxury market has emerged as a key source of transaction volume. South Florida continues to lead the nation in ultra-luxury sales activity, averaging roughly one $10 million home sale per day, according to MIAMI REALTORS® research.
Condo Financing Remains A Headwind
Despite rising sales activity, financing challenges continue to weigh on Florida's condominium market.
According to MIAMI REALTORS®, only 21 condominium buildings across Miami-Dade, Broward, and Palm Beach counties currently hold Federal Housing Administration approval, representing less than 1% of the region's condominium inventory.
Industry participants are also preparing for additional changes as Fannie Mae and Freddie Mac eliminate certain limited review options for condo loans beginning Aug. 3. The updated standards are expected to increase transparency around building financial health, but could also create additional hurdles for some borrowers and associations.
Condo prices have softened modestly, while inventory remains elevated relative to the single-family market. The median condominium sale price declined 2.4% year over year to $415,000 in May, though prices remain up 265% since 2011.
Single-family home values continued to edge higher. The median single-family sales price increased 0.7% year over year to $680,000, extending a streak in which prices have risen or remained flat in 171 of the past 174 months.
Inventory Tightens
Supply conditions improved for sellers during May.
Total active inventory declined 11.9% year over year, marking the fourth consecutive monthly decline. Single-family inventory fell 19.1%, while condominium inventory decreased 8.9%.
The tightening supply has pushed the single-family market back into seller's market territory, with 5.2 months of inventory available. Condominiums remain a buyer's market with 12.9 months of supply.
"South Florida's housing market has remained remarkably robust despite rising mortgage rates that could hit 6.7% by year-end," said Gay Cororaton, chief economist for MIAMI REALTORS®. "This year is shaping up to be the strongest yet since 2021 due to the phenomenal surge in million-dollar sales."
The latest data suggests South Florida continues to stand apart from many U.S. housing markets. Strong cash activity, international demand, tightening inventory, and sustained luxury sales have helped support transaction volume even as mortgage rates remain above 6%.
For originators operating in Florida, the market's continued strength may present opportunities in purchase lending, jumbo products, and affluent-borrower segments, while condominium financing remains one of the region's most significant challenges.
