Miami's Luxury Real Estate Market Shows Signs of Cooling as High-End Properties Linger

Miami's Luxury Market Experiences Continued Slowdown

The ultra-luxury segment of Miami-Dade County's residential real estate market is showing clear signs of deceleration as we move through the first quarter of 2025. According to the latest Eklund-Gomes report, which tracks properties listed at $4 million and above in the Multiple Listing Service, only 11 luxury contracts were signed during the week of March 10-16, marking the second consecutive weekly decline in high-end transactions.

Perhaps more telling than the raw numbers is the growing timeline to secure buyers. These premium properties now spend an average of 175 days on the market before securing a contract - nearly six months of marketing time for Miami's most coveted addresses. While slower absorption rates aren't unusual in the ultra-luxury segment, the extended market time signals a potential shift in buyer sentiment despite Miami's reputation as a prime destination for wealth migration.

The total asking volume for properties entering into contract reached $83.3 million, consisting of six single-family homes and five condominium units. This represents a notable decrease from the previous week's performance when 12 properties with a combined asking price of $137.4 million found buyers - a week-over-week decline of approximately 39% in dollar volume.

Single-Family Luxury Homes Outpace Condo Market

Single-family homes in Miami's luxury sector continue to demonstrate stronger performance metrics than their condominium counterparts. The report indicates that luxury houses spent an average of 117 days on market before securing buyers, significantly less than the 244-day average for condominiums in the same price bracket.

The six single-family homes under contract represented $46.5 million in asking dollar volume, with an average price point of $7.7 million. Leading this segment was a stunning waterfront estate located at 136 Paloma Drive in the exclusive Cocoplum enclave of Coral Gables. Listed by Douglas Elliman's Darin Tansey and William Seltzer, this 7,113-square-foot residence features six bedrooms and seven-and-a-half bathrooms on a 0.4-acre lot. With an asking price approaching $12 million, it represents the premium tier of Miami's luxury residential offerings.

Luxury Condominium Market Shows Resilience Despite Longer Sell Times

While spending more than eight months on market on average, Miami's luxury condominium segment still commanded impressive price points. The five units that entered into contract last week averaged $7.4 million each, totaling $36.9 million in asking dollar volume. This translates to approximately $1,733 per square foot - a figure that remains competitive on the global luxury real estate stage.

The most notable condominium transaction was a 6,122-square-foot residence at the highly anticipated Indian Creek Residences and Yacht Club development in Bay Harbor Islands. Listed for $11.3 million by One Sotheby's International Realty agents Vanessa Frank and David Pullman, this five-bedroom, six-bathroom unit is part of an exclusive nine-unit project being developed by Jonathan Landau's Landau Properties. The boutique nature of this development highlights the continued demand for limited-edition luxury offerings despite the overall market deceleration.

Inventory Levels Signal Buyer's Market Conditions

Despite the slower absorption rate, Miami's luxury inventory continues to expand. The Eklund-Gomes report identified 53 new luxury listings entering the market during the week of March 10-16, bringing the total available luxury inventory to 1,356 properties. This growing selection provides prospective buyers with extensive options and potentially stronger negotiating leverage as properties spend longer periods on the market.

When compared to other premier luxury markets, Miami still demonstrates relative velocity. New York's luxury market, while generating higher transaction volumes with 36 homes entering into contract during the same period (according to the Olshan report), shows substantially longer marketing periods. The typical luxury residence in New York spent 1,026 days on market - nearly three years - before securing a buyer, compared to Miami's 175-day average.

Market Insights: Expert Perspectives on Miami's Luxury Real Estate Sector

Is Miami's luxury real estate market heading for a correction?

While recent data shows a slowdown in transaction volume, this appears to be a normalization rather than a correction. The market is transitioning from the unprecedented post-pandemic boom to more sustainable levels. Properties are still selling, albeit with longer marketing periods, indicating price discovery rather than market failure.

How does waterfront property performance compare to non-waterfront luxury homes?

Waterfront properties continue to command premium prices and typically sell faster than non-waterfront luxury homes. The Cocoplum estate that topped last week's report exemplifies this trend. Waterfront parcels represent a finite resource in Miami-Dade County, creating a value floor that tends to insulate these properties from broader market fluctuations.

What factors are contributing to the extended days on market for luxury condominiums?

The 244-day average marketing period for luxury condominiums reflects several factors: increasing inventory from new development completions, rising insurance costs affecting monthly carrying charges, and more selective buyer preferences. Additionally, ultra-high-net-worth buyers typically conduct extensive due diligence before committing to multi-million dollar vertical living environments.

How does Miami's luxury market compare to pre-pandemic performance metrics?

While current transaction velocity has slowed from the 2021-2023 peak, Miami's luxury market remains substantially more active than pre-pandemic levels. The region has benefited from corporate relocations, favorable tax policies, and international wealth migration that have fundamentally altered the buyer demographic and absorption rates compared to 2019 benchmarks.

What strategies are sellers employing to attract buyers in the current market?

Successful sellers are focusing on presentation quality, strategic pricing, and offering unique value propositions. Properties that demonstrate thoughtful design, premium finishes, and turnkey readiness continue to outperform the broader market. Additionally, sellers willing to embrace innovative marketing approaches and realistic pricing strategies are securing contracts more quickly than those holding firm to aspirational valuations.