Syndicated post from InmanNews.
Source link
Luxury prices in the region have continued to rise, as have sales in select hot markets, while the market at large is simultaneously seeing a contraction in prices.
Home prices in South Florida’s luxury market continued an upwards trajectory during the second quarter of 2025, even as prices in the non-luxury market took a hit throughout the state, according to recent reports.
In Miami-Dade, Broward, Palm Beach counties, the Treasure Coast and Southwest Florida, the average luxury single-family sales price increased 9.3 percent on an annual basis to $2.91 million in the second quarter, according to The Keyes Company and Illustrated Properties’ second-quarter Luxury Market Report. Meanwhile, the average luxury condo price rose 4.8 percent year over year to $2.54 million.
As luxury prices have climbed, home sales have gone in the opposite direction, with South Florida’s number of $1 million and up single-family transactions down by 10.9 percent year over year to 3,151. Luxury condo sales were also down 12.8 percent year over year to 1,209.
Keyes Company President Christina Pappas said in a press statement that this movement in the market represented a normalization.
“We are settled into what we would call a ‘normal‘ luxury market, especially when compared with the unsustainable peak experienced at the beginning of the decade. Domestic migration demand drivers remain strong, which is maintaining the upward pricing trend.”
Palm Beach County saw the greatest price growth during the quarter, with a 10.6 percent increase in average single-family sales price to $3.23 million and a 13.2 percent increase in average luxury condo sales price to $2.7 million. The number of luxury single-family sales in the county dropped 7.1 percent year over year as the number of condo sales declined by 11.5 percent year over year.
Miami-Dade County also saw a decline in luxury transactions, with luxury single-family home sales down 11 percent year over year and luxury condo sales down 10.9 percent year over year. Unlike most other South Florida markets, Miami-Dade also saw a decline in luxury single-family prices, which were down 3.4 percent year over year to $2.95 million. The average luxury condo price was up 6.1 percent year over year, however, to $2.85 million.
Meanwhile, Broward County saw a 25.8 percent spike in sales of single-family homes priced at $1 million and up between the first and second quarters of 2025, as luxury condo sales rose 2.5 percent during the same period. The luxury single-family sales price was up 9.3 percent year over year to $2.15 million and the average luxury condo sales price was down 3.1 percent year over year to $1.73 million.
The Treasure Coast also experienced a positive quarter with luxury single-family home prices up 6.6 percent year over year to $3.58 million as sales rose 3.2 percent year over year. Luxury condo sales in the area spiked 42.9 percent year over year as the average sales price increased 40.1 percent year over year to $2.14 million.
Gains made in the region’s luxury market prices represent a stark contrast to South Florida’s market overall, however, where some key cities have seen significant price declines lately.
As of June 2025, the price of a typical home in Tampa was down 6 percent year over year, according to data Axios drew on from Zillow. The typical home price in Miami was also down 3.8 percent year over year, and in Jacksonville, it was down 3 percent year over year. The state’s overall average home price was down 4.3 percent year over year to $384,811 as of the end of June, according to Zillow.
Redfin Head of Economics Research Chen Zhao told Axios that some of the overall market declines can be attributed to residents leaving due to the number of natural disasters.
“In places like Florida and Texas, they’re kind of tired of hurricanes,” Zhao said.
However, these regions also saw significant gains in new construction in recent years, which is also contributing to falling prices.
But The Keyes Company and Illustrated Properties CEO Mike Pappas asserted in the companies’ report that those individuals seeking a tax refuge are likely to continue to see the state as an attractive place to invest.
“As long as South Florida’s luxury market remains a value proposition for buyers from high tax states, our region’s outlook will remain extremely positive,” the CEO said. “Abundant opportunities exist for both buyers and sellers in the high-end sector.”
Get Inman’s Luxury Lens Newsletter delivered right to your inbox. A weekly deep dive into the biggest news in the world of high-end real estate delivered every Friday. Click here to subscribe.
