Sales and pending contracts declined in Q1. Learn what this means for you.

 

The South Florida real estate market began 2025 on a slower note. Covering data from Miami-Dade, Broward, and Palm Beach counties, the first quarter showed declines in key indicators compared to the same period in 2024. Here's everything you need to know:

Slow start with sales. There were 15,546 overall closed sales in Q1 2025, which is down 5.4% year over year. Cash purchases also decreased by 7.9%, and pending sales fell by 11.3%. Fewer contracts were signed during the first quarter, indicating a slower start to the year. Much of this is due to the delayed start of the seasonal market, which typically begins in January but gained momentum later in February.

Despite the broader market slowdown, the Tricoli team outperformed the region, with a 6.5% decline in pending contracts compared to the market’s 11.3% drop. A total of 85 transactions—encompassing single-family homes, townhomes, and condos—were placed under contract in Q1.

 

"The region is shifting from a seller’s market to a more neutral trend."

 

Days on market. Days on market increased substantially, rising nearly 41%. The number of days homes remained on the market increased by nearly 41%. Condos and townhomes experienced longer market times than single-family homes. Despite the slower pace, the median sales price for single-family homes increased slightly. Prices for condos and townhomes declined, but overall pricing remained steady.

Inventory update. Active inventory rose significantly. As of the end of Q1, there were 37.2% more homes on the market than at the same time last year. Many properties are staying on the market longer, and while the average market time is now around 60 days, some well-marketed homes are still selling within 45 days.

Neutral market. The market currently has 8.8 months of inventory. Single-family homes are approaching a balanced level at about six months of supply. Condos and townhomes have more than 11 months of supply, which reflects a buyer’s market. A six-month supply is typically considered neutral.

After many years of being a strong seller’s market, the region is now moving into a more balanced market for single-family homes and a clear buyer’s market for condos and townhomes. Buyers are negotiating more and requesting additional terms, which means sellers need to be well-prepared and work with experienced agents.

Despite current conditions, homes are still selling. The second quarter is expected to be more active, and future updates will provide a clearer picture of ongoing market changes in South Florida. If you have questions or need guidance, just reach out. You can contact me at (561) 628-0299 or send an email to jeff@tricoliteam.com. I look forward to hearing from you.