South Florida Luxury Real Estate Market Update – Spring 2025
Over the past few weeks, I’ve noticed an uptick in clients forwarding me headlines and articles suggesting doom and gloom for the real estate market. While I appreciate the dialogue, it’s important to recognize that many of these stories paint with a broad brush and often don’t reflect what’s truly happening in our unique coastal luxury markets here in South Florida — particularly when it comes to single-family homes.
What we’re seeing right now in the luxury segment isn’t a crash — it’s a pause. Call it a deep breath or even a minor reset, but it’s largely driven by broader economic uncertainty and recent developments like the evolving tariff landscape. Despite that, real estate deals are getting done in our prime coastal areas, and we’ve even seen several record-breaking sales in recent weeks.
Yes, activity has slowed, but one critical factor remains: inventory is still extremely low — and that’s not changing anytime soon. Scarcity along our coastline, particularly in sought-after areas like Palm Beach, Hypoluxo Island, Gulf Stream, Manalapan, East Boca Raton, and East Delray Beach, continues to support property values and buyer interest.
Contrast that with the sub-$1M market, where we are seeing a build-up in inventory, longer days on market, and increasingly cautious buyers. In that segment, lowball offers and buyer hesitancy are becoming the norm — but again, this doesn’t reflect the high-end market, which is driven by different motivations and demographics.
A timely example: the New York Post recently ran a front-page story highlighting how $13.8 billion in wealth is moving from New York to Florida. That wealth isn’t heading inland or to starter homes — it’s headed straight to our coastlines. The reasons people are choosing to relocate here — financial benefits, quality of life, lifestyle — remain as strong as ever, and that trend will only continue to grow.
While summer may bring a temporary slowdown, I fully expect a strong resurgence as we head into the fall and next season. South Florida’s luxury real estate market has weathered uncertainty before — and it continues to stand strong.
