The Miami residential real estate market is experiencing significant shifts as inventory levels rise and prices stabilize. Single-family home inventory jumped 26% year-over-year to 5,041 units in December 2024, while condominium availability surged 48% to 10,425 units.

Despite increased inventory, transaction volumes declined. Single-family home sales dropped 9.1% in Q4 2024, while condo sales fell 24%. The median single-family home price held relatively steady at $660,000 in November, down slightly from July’s peak of $670,000. Condo prices saw a more substantial decline, falling 7.6% from $449,000 in March to $415,000 in November.

The market currently shows eight months of single-family home supply, indicating equilibrium. However, the condo market’s 18-month supply suggests oversaturation, potentially driven by investor-heavy ownership – only 35-40% of condo owners occupy their units.

Berkshire Hathaway President Ron Shuffield emphasizes the long-term value proposition, noting that Miami’s median single-family home prices have quadrupled since 2011, rising from $150,000 to $650,000. The increased inventory offers more choices for buyers while helping stabilize prices after the pandemic-era surge that saw monthly supply drop to 1-3 months.

Recent changes in condominium association regulations across South Florida have impacted buyer interest in multi-unit properties, contributing to the sector’s softening sales despite increased availability.