Miami-Dade's Surge in $1M Condo Sales: A Balancing Luxury and Affordability

Miami Condo Market Overview

In August 2025, Miami-Dade County experienced a significant increase in the sales of condominiums priced at $1 million and above, with a year-over-year rise of 10.8%, reaching 133 units sold. This robust growth underscores a continuing demand for both high-end and affordable condo options within the area. Despite economic fluctuations and rising mortgage rates, the market shows resilience, particularly among 30-year-old condominiums, which maintained a stable median price of $280,000 compared to $290,000 the previous year.

MIAMI Board Chairman Eddie Blanco highlighted the value of older condos, stating that they offer affordability and access to prime locations in a city where land is at a premium. He noted that new regulations enacted on January 1, 2025, aimed at ensuring the structural integrity and financial viability of older condominium buildings, will enhance their marketability.

Real Estate Trends

Interestingly, the overall condo sales for the same month dipped by 13%, going from 1,038 to 903 units sold. This decline can largely be attributed to high mortgage rates, decreased inventory, and limited access to Federal Housing Administration (FHA) loans for many existing condo buildings. Statistics reveal that out of 2,397 condominium properties across the tri-county area, only 21 have FHA loan approval, making financing more challenging.

While the market faces these challenges, trends suggest a significant ongoing migration of wealth into South Florida, demonstrated by an 11.8% increase in $5 million and above transactions, rising from 34 to 38 sales year-over-year. This movement towards luxury properties hints at a thriving high-end market amidst fluctuations in more general segments of real estate.

Economic Impact and Future Outlook

Miami’s home values have appreciated remarkably, trending upward by 102% over the past decade. Current median prices for existing condos are relatively stable, showing only a slight 1.2% decrease year-over-year. Amid these trends, single-family homes have seen a 2.3% price increase, establishing a solid footing for homeowners and potential investors alike.

National Association of Realtors (NAR) data indicates that Miami's home equity appreciation nearly doubles the national average. With homebuyers' wealth bolstered by rising equity—averaging $555,900 for single-family homes—residents are finding themselves in a robust financial position during these evolving market conditions.

The Live Local Act, introduced in 2023 to incentivize affordable housing development, may also play a crucial role in shaping Miami's future inventory landscape. As developers gain flexibility on density requirements for allocating units to affordable housing, this can stimulate market engagement and enhance buyer opportunities.

Conclusion

As mortgage rates have recently begun to decline, the Miami real estate scene is poised for further transformation. MIAMI REALTORS® Chief Economist Gay Cororaton anticipates a positive shift in buyer sentiment as prices stabilize and the market moves toward balance. With low inventory levels that are still below pre-pandemic statistics, potential buyers are encouraged to act strategically in this high-demand environment.

As we look ahead, Miami will maintain its status as a dynamic hub for both luxury and affordable residential options, providing unique investment opportunities for buyers at diverse price points. Whether drawing on the rich history of older condos or capitalizing on new developments, Miami’s real estate market remains alive with potential.