Big changes are happening in real estate in South Florida. South Florida Agent Magazine revealed that home sales in the Miami area declined year-over-year through the end of 2024, real estate analyst Peter Zalewski told the South Florida Business Journal earlier this week. He said condo prices in eastern South Florida are expected to return to pre-2020 levels. level. Zalewski suggests prices could fall as much as 38% over the next few years, falling from $379 per square foot in late 2024 to about $231 per square foot in 2019.
Home prices in South Florida have soared since the pandemic as high-income families moved to the region for better deals and to avoid COVID-19 restrictions elsewhere. Today, many people continue to move to South Florida for the climate, no state income tax, and business-friendly environment.
However, condo and townhouse sales in November were down 19.6% from a year earlier, the lowest since the 2008 financial crisis. The decline is due to a new law requiring stricter inspections of older condominiums, which has increased the valuations of many older condominiums and depressed prices. Zalewski also predicts that prices for new luxury condominiums will be discounted due to market uncertainty.
A University of Miami study found that 35 condo and hotel towers in areas such as Sunny Isles Beach and Miami Beach are rapidly sinking, raising market concerns. Additionally, the influx of highly paid technology professionals is expected to be limited as companies are required to bring remote workers back to the office.
Craig Studnicki, CEO of ISG Group, points out that condominiums older than 30 years have fallen significantly in value, losing 21% of their value due to concerns about special assessments. did. By contrast, condominiums less than 30 years old have increased in value by 10%, and Studnicki expects prices for new units to continue rising as demand outstrips supply.
“We’re talking about the law of supply and demand, and we don’t have enough supply.” [of new condos]” Stadnicki said.
When South Florida Agent Magazine asked Anthony Lamacchia
Condominiums were an area that broker, owner and founder LaMacchia Realty cited as special challenges in his 2025 South Florida real estate forecast.
“The market as a whole, and condos in particular, is very different than it was three or four years ago, when everything that was listed sold quickly,” LaMacchia said. “This market requires more skill and more planning when working with sellers.”
