South Florida Real Estate Update – August 14, 2025

Miami & Broward Housing Market Trends, Mortgage Rates, Home Improvement Insights, and More

National Housing Market Overview

Inventory Surge Across the U.S.
Active home listings nationwide jumped 24.8% year-over-year in July 2025 — the highest since the pandemic — but still 13.4% below pre-pandemic levels. More supply is giving buyers new leverage in negotiations.

Buyers Regain Power
In May 2025, 56% of U.S. homes sold below asking price, averaging $45,000 less than list price. The typical time on market increased to 58 days, up from 51 last year.

Cash-Out Refinancing on the Rise
Nearly 60% of all refinances in Q2 2025 were cash-out loans, with homeowners pulling an average of $94,000 in equity — but also increasing monthly payments by about $590.

Higher Rates May Not Be All Bad
While today’s mortgage rates remain elevated, limited inventory, sustained equity growth, and potential modest rate drops later in the year are keeping opportunities alive for both buyers and sellers.

Miami & Broward County Housing Trends

Permits & New Construction

Southeast Florida is defying the national trend of slowing construction:

• Miami-Dade County: Building permits are up 19% in the first half of 2025, annualizing 15,414 units (13.8 units per 1,000 homes) — well above the national rate of 9.9.

• Broward County: Permits rose 27%, but the pace (3,308 units annually) is still less than half the estimated need of 8,200 units.

Sales, Prices & Inventory

Miami-Dade County (July 2025)

• Median sale price: ~$550,000 (–0.9% YoY)

• Single-family median price: $675,000 (+3.85% YoY)

• Average rent: $2,947/month

• Days on market: 86

Broward County (July 2025)

• Median sale price: $447,000 (–0.67% YoY)

• Sales volume: down 10.5% YoY

• Days on market: 92 (up from 71 last year)

Mortgage Rates & Financing Outlook

Florida Rates as of Aug 14, 2025

• 30-year fixed: 6.53%

• 15-year fixed: 5.78%
  National averages are slightly higher (30-year fixed: 6.66%).

Recent Movement
Rates have eased slightly, with Freddie Mac reporting the lowest 30-year fixed average since April (6.63%, down from 6.72%). Experts forecast possible drops to around 6.4% by year-end, depending on inflation and economic signals.

Home Improvements & Repairs

Shift Toward Storm-Ready Upgrades
Miami homeowners are prioritizing new roofs over cosmetic remodels, driven by insurance compliance and hurricane resilience.

Home Improvement Spending
U.S. homeowners spent $513 billion on renovations in Q1 2025, with projections hitting $526 billion by Q1 2026.

Turnkey Homes in Demand
Rising labor and material costs have cooled interest in fixer-uppers. Buyers increasingly prefer move-in-ready properties.

Unexpected Repairs on the Rise
Nearly half of U.S. homeowners report repair costs exceeding $5,000. Popular funding options include home equity loans, HELOCs, insurance claims, and local assistance programs.

Global Buyers & Market Influence

International Demand Boosted by Currency Shift
A 10% drop in the U.S. dollar since January 2025 has made South Florida property more attractive to foreign buyers.

Luxury Sales Making Headlines
Naples set a record for the priciest U.S. home sale of 2025 — a beachfront estate closing at $133 million.

Key Takeaways for Buyers & Sellers

• For Sellers: Miami-Dade’s strong equity position means you may be sitting on significant untapped value, even in a slower sales environment.

• For Buyers: Rising inventory and longer days on market are improving negotiation opportunities, especially for turnkey homes.

• For Investors: International interest and ongoing construction signal sustained long-term demand.