Major real estate shifts are occurring in South Florida. South Florida Agent Magazine revealed that Miami area home sales slid year-over-year to close 2024, and real estate analyst Peter Zalewski told the South Florida Business Journal earlier this week that condo prices in eastern South Florida are expected to revert to pre-2020 levels. Zalewski suggests a potential drop of up to 38% over the next few years, decreasing from $379 per square foot in late 2024 to about $231 per square foot in 2019.
Since the pandemic, home prices in South Florida have soared as high-income households moved to the area, seeking better conditions and avoiding COVID-19 restrictions elsewhere. Even now, many continue to migrate to South Florida for its favorable climate, no state income tax, and business-friendly environment.
However, condo and townhouse sales fell by 19.6% year-over-year in November, the lowest recorded since the 2008 financial crisis. This decline is attributed to a new law mandating stricter inspections for older condo buildings, which has driven up assessments and stagnated prices for many older units. Zalewski also predicts price discounts for new luxury condos due to market uncertainty.
A University of Miami study found that 35 condo and hotel towers are sinking rapidly in areas like Sunny Isles Beach and Miami Beach, adding to market concerns. Additionally, corporate mandates for remote workers to return to the office are expected to limit the influx of high-paid tech professionals.
Craig Studnicky, CEO of ISG Group, noted a significant decline in value for condos older than 30 years, which have lost 21% of their value due to fears of special assessments. In contrast, condos younger than 30 years have appreciated by 10%, and Studnicky anticipates continued price increases for newer units as demand outpaces supply.
“We are talking about the laws of supply and demand, and we don’t have enough supply [of new condos],” Studnicky said.
When South Florida Agent Magazine asked Anthony Lamacchia
Broker, Owner and Founder, Lamacchia Realty for his 2025 South Florida real estate predictions, the condo was an area where he mentioned special challenges.
“The market overall, and particularly with condos, is vastly different then it was 3 or 4 years ago when everything that got listed sold immediately.” Lamacchia said. “This market requires more skills and more planning in working with sellers.”
