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South Florida’s Luxury Condo Market Experiences Growth Amid Sales Slump

Luxury Waterfront Condo in South Florida

News Summary

The South Florida real estate market is seeing significant growth in the luxury condo segment, despite an overall decline in condo sales. A Pennsylvania-based real estate group has made notable acquisitions, taking advantage of this trend. According to the Miami Association of Realtors, luxury condo sales have surged, with prices rising significantly. In contrast, challenges like financing difficulties and increasing ownership costs have resulted in a polarized market. Legislative measures are being introduced to stabilize the market, while developments continue to attract affluent buyers to the region.

Florida – The South Florida real estate market is experiencing notable growth in the luxury segment, even as the overall condo sales slump continues to challenge the region. A Pennsylvania-based real estate group has recently made its third significant acquisition in South Florida within the last six months, capitalizing on the rising trend of luxury condo sales, particularly those priced over $1 million.

According to the Miami Association of Realtors, sales in the luxury condo category have been on the rise, with prices increasing seven times since February 2024. Notably, the most recent upticks were recorded in February and April of this year. This surge in luxury sales contrasts sharply with the general decline in condo transactions across Miami-Dade and Broward counties.

The ongoing sales decline in the condo market is largely attributed to various challenges faced by potential buyers, particularly regarding financing and limited inventory at more affordable price points. Currently, less than 1% of the nearly 2,400 condominiums in Miami-Dade, Broward, and Palm Beach counties qualify for Federal Housing Administration (FHA) loans, an indicator of the challenges low and middle-income buyers face in accessing financing for condo purchases.

Furthermore, rising costs associated with condo ownership, including insurance, monthly association dues, and unexpected repair assessments, have contributed to the slump. As a result, the real estate market has become increasingly polarized, with sales concentrating primarily in either affordable lower-tier markets or high-end cash buyers, which make up over half of the sales in the area.

In April 2025, Miami-Dade recorded 950 condo sales, a decline from 1,065 sales from the previous year. Broward County also experienced a downturn, with sales dropping from 1,196 to 1,054 during the same period. This decline in sales is occurring alongside a notable increase in inventory levels, with Miami-Dade’s market showing a 6.3-month supply of houses and a 13.7-month supply of condos. Such figures indicate a market that is gradually shifting in favor of buyers, offering more options and negotiating power for those seeking properties.

Florida’s median home price in Miami-Dade was reported at $445,450 in April 2025, a slight increase from $444,000 a year earlier. Conversely, Broward’s median price fell from $282,500 to $280,000 in the same time frame. The overall market landscape is evolving, facilitated by rising housing inventory which has propelled listings to over 52,000 in April 2025, a significant increase from the lows recorded during the pandemic.

Legislative measures aimed at alleviating financial pressures on condo owners have recently been passed in Florida. These measures extend inspection deadlines and permit associations to diversify their funding sources, potentially stabilizing the condo market which has been under strain from compliance costs following regulatory changes instigated by the Champlain Towers collapse.

Additionally, the luxury real estate segment in Florida continues to flourish. Recently, a waterfront estate in Naples was sold for a striking $225 million, setting a new record for the state and ranking as the second-highest sale price in U.S. history. In the last six months, a total of 16 homes priced at $40 million or more have found buyers in Florida, hinting at an influx of wealthy individuals relocating to the state. Cities on Florida’s Gulf Coast, such as Naples and St. Petersburg, are attracting affluent buyers priced out of traditionally expensive markets.

Lastly, developments are underway to further enrich the luxury landscape in Florida. The upcoming launch of the Waldorf Astoria Residences in St. Petersburg signifies a significant addition to the skyline, marking the city’s tallest tower upon completion in 2030 and establishing it as the fourth Waldorf Astoria property in the U.S.

In summary, while the single-family home market appears stable or even rising, the condo market remains a buyer’s market ripe for negotiations. The evolving dynamics of South Florida’s real estate sector highlight a continuing shift towards luxury growth, juxtaposed with challenges faced in the general condo selling environment.