Miami, FL Housing Market Report

The Miami-Fort Lauderdale-Pompano Beach housing market is currently undergoing a significant transition toward a buyer-friendly environment as of December 2025. With active inventory rising to 51,735 units and the average time on market stretching to 111 days—a notable 23-day increase over the previous year—buyers now have more leverage and selection than they have seen in several years. The sale-to-list ratio of 0.96 indicates that properties are typically selling for 4% below their initial asking price, suggesting that sellers are becoming increasingly willing to negotiate to close deals.

Price trends over the last six months show a period of stabilization following a minor correction. After hitting a low of $570,991 in September 2025, the median home value has seen three consecutive months of modest recovery, reaching $572,304 in December. Despite this recent uptick, values remain 2.67% lower than they were a year ago. This cooling is largely driven by the surge in inventory and the increased cost of homeownership, which has tempered the frenetic bidding wars that characterized the South Florida market in previous cycles.

The outlook for the Miami metro area suggests a balanced but cautious market heading into 2026. While the rental market remains remarkably resilient with a median rent of $2,939, the slow pace of home sales indicates that high interest rates or insurance costs may be weighing on prospective purchasers. Sellers should prepare for longer holding periods and ensure competitive pricing from the start, while buyers should view the current climate as an opportunity to secure properties with contingencies and price concessions that were unavailable during the post-pandemic boom.