June 2025 Real Estate Market Update: What Buyers and Sellers Should Know

Cain Palmer • June 6, 2025

As of mid-2025, Southeast Florida's housing market is experiencing a complex landscape influenced by elevated mortgage rates, shifting buyer demand, and evolving inventory dynamics. Here's an overview of the current trends and projections: AP News, Counselors of Realtors, Kiplinger, Miami Realtors, WSJ, Miami Realtors

📈 Market Forecast: 2024–2025

  • Home Prices: The Miami Association of Realtors projects that home sales prices will increase by 6.9% in 2024 and 6.5% in 2025. The median single-family sales price is expected to accelerate to 9.7%, while the condominium/townhome median sales price is anticipated to rise modestly by 2.5% due to potential higher fees and assessments affecting demand for this property type. MIAMI REALTORS®
  • Sales Volume: Existing home sales are likely to decline by 5.5% in 2024. However, falling mortgage rates, rising job growth, and improving affordability conditions are expected to expand home sales by 4.0% in 2025. MIAMI REALTORS®
  • Mortgage Rates: Projections indicate that the 30-year fixed mortgage rate will decline to 6.6% by the end of 2024 and 5.7% by the end of 2025, as the Federal Reserve is poised to cut rates multiple times. MIAMI REALTORS® MIAMI REALTORS®

 

🏠 Market Conditions by Property Type

  • Single-Family Homes: The single-family homes market remains a seller’s market, with a 4-month supply across all counties as of May 2024. MIAMI REALTORS®
  • Condominiums/Townhomes: The condominium/townhomes market is experiencing balanced demand-supply conditions, with active inventory equivalent to over a 6-month supply. MIAMI REALTORS® MIAMI REALTORS®

 

🔍 Key Market Dynamics

  • Affordability Challenges: As of December 2024, only 17% of renter households in Southeast Florida could afford a mortgage, down from 41% in 2019. MIAMI REALTORS®, MIAMI REALTORS®, Counselors of Realtors
  • Luxury Market Growth: Homes priced at $1 million or over are gaining market share. Year-to-date through May 2024, the share of million-dollar single-family homes has sharply increased compared to 2019 in Miami-Dade (23% vs. 7%), Broward County (18% vs. 5%), Palm Beach (25% vs. 5%), Martin County (21% vs. 8%), and St. Lucie (2% vs. 0.3%). MIAMI REALTORS®

In summary, while Southeast Florida's housing market faces challenges such as affordability constraints and elevated mortgage rates, it also presents opportunities, particularly in the luxury segment and for buyers prepared to navigate the current conditions.

Recent Developments in the U.S. Housing Market

 

Other Sources:

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