Full Year 2024 - Miami Real Estate Market - And 5 Key Points for 2025
We are here today to share with you our Miami Real Estate Market Update for 2024, and we will share with you 5 Key Topics for 2025. Single Family Homes - We cover the neighborhoods of Coconut Grove, Coral Gables, Pinecrest and Miami Beach specifically South Beach.
The bottom row shows the % change from 2023 to 2024. Across the board we see green which means prices and sales increased, with one exception Pinecrest where the # of sales decreased 12%. We can tell you that has more to do with low levels of good inventory. Overall home sales and prices are slightly higher than in 2023 which shows the strength of the market for these areas.
Condos - We cover South of Fifth, Downtown Miami, Brickell and Coconut Grove and if we jump to the bottom row we clearly see more Red here with the # of Sales decreasing: 21% in South of Fifth, 18% in Downtown Miami, 29% in Brickell, and 3% in Coconut Grove. While sales dropped, Prices surprisingly held steady.
In summary - the market for single family homes performed well in 2024 and is stronger than condos and we expect this to continue into 2025. As we look forward into 2025, we have a 5 key points we want to highlight for you that we will be watching closely:
1) Condos in Older Buildings - If you are trying to sell your condo in an older building you have to understand the market today. With forced Special Assessments, higher Maintenance Fees, etc. right now there is a lot of negative press about older buildings so it will require some patience to get it sold and more than likely at a price that will be less than what you expect.
2) Mortgage Rates - For most of 2024 we saw interest rates between 6.5 - to a little over 7%. It wasn't until August when rates started to go down, and go below 6.5% for a few weeks, before spiking back up to over 6.5 -7.0%. The strange thing about this is it happened as the Federal Reserve met in late September and they finally lowered interest rates for the first time in a couple of years by half a point, and then also lowered rates by a quarter point in November and December, but oddly enough mortgage rates were climbing. We see interest rates in 2025 staying in the similar 6-7% range, and we might see some movements take rates to 6% but we do not see rates going below 6% and we also don't see them going much higher than 7% or a little over. Watch out for these downard swings as it may be a great time to jump in.
3) Insurance Market. While we saw insurance premiums skyrocket from 2020 to 2023, in 2024 we started to see rates stabilize and some slightly decrease which was a great sign as it started to affect sales in homes and condos. Then unfortunately, here in Florida we had 2 major hurricanes back to back starting with Helene at the end of September and 2 weeks later we had Milton both hitting the west coast of Florida and causing major damage and destruction. More recently we are watching these unprecedented fires in California in Los Angeles County which just adds to the pressure that insurance companies are going through which of course will translate to some companies going out of business, while others not wanting to issue policies in these states which of course will force those companies that stay to increase rates.
4) Pricing - We saw prices for the most part holding steady and slightly increasing from 2023 to 2024. As we have mentioned before we are in a correction, and we are correcting off of 2 record historic years where prices in some areas doubled or even tripled so we are still trying to see where things level off. That being said, if you price your home correctly it should sell in about 30 days. If you do not price it correctly it will sit on the market with hardly any activity and may not even sell. We want to point out that as you start to see a lot of price reductions in listings you may think the market is going down, but if you dive deeper into the numbers, it is that they priced the property too high to begin with, and now they are chasing the market.
5) Demand. Demand for Miami Real Estate is still strong, but we have to point out it is not what it was during those 2 years of 2021 and 2022. You may see a home listed now for 3-6 months maybe even longer, this is what a normal market looks like. As demand has slowed across the board, these popular areas are still in demand but it takes a bit longer to sell, while the neighborhoods outside of these areas have less demand which we noticed is starting to negatively impact prices in these areas.
This is normal in a correction when demand retreats. As I start my 19th year in Miami Real Estate I can proudly say our goal is to provide value and help as many people as we can by providing you with real market data to give you a deeper insight into the local market.
If you ever have any questions or need any help, I am always available.
Thank you for watching and stay tuned.