The Real Estate Market Awakens: Sales Surge 14% in South Florida & 2026 Outlook

South Florida home sales jumped 14% in 2026 driven by lower mortgage rates. Discover which cities are leading the boom and read my market forecast.

As a professional living and breathing the South Florida real estate market every day, I have noticed a palpable shift in the atmosphere. The caution that defined much of the last three years is dissipating rapidly. Official numbers have just confirmed this feeling: the market closed December 2025 with unprecedented strength.

We are talking about a 14.4% increase in single-family home sales year-over-year. This is not a minor statistic; it represents the breaking of a three-year downward trend and marks the beginning of an acceleration phase driven, fundamentally, by more attractive mortgage rates.

County Breakdown: Where is the "Boom" Happening?

The most interesting part of this report isn't just the general average, but how each specific zone is behaving. If you are looking to invest or live here, pay attention to these details I've extracted from the report:

Growth is widespread, achieving the fourth consecutive month of increases across all counties, but the leaders are clear:

• Martin County: An impressive +30.1% in sales.
• Palm Beach: A solid +23%.
• St. Lucie: Growing at +16.3%.
• Broward: Increased by +10.6%.
• Miami-Dade: Stable growth of +3.7%.

It's not just that more houses are selling; demand is returning with strength at all price levels, from luxury to the mid-market.

Miguel E. Hernandez

In Miami-Dade, 68% of local markets saw positive numbers. Areas like Cutler Bay (+17%) and Miami Beach (+16%) stand out, demonstrating that both first-time homebuyers and luxury investors are active.

In Broward, cities like Pompano Beach registered an explosive 46% increase in sales, followed by Fort Lauderdale with 34%. This indicates a significant rotation of capital toward areas offering a vibrant coastal and urban lifestyle.

With this level of activity, knowing your real budget is vital to making quick offers.
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The Renaissance of Condos and Buyer Confidence

I know the topic of condos has generated questions due to new regulations regarding reserves and maintenance. However, the market is adapting and responding positively. Sales of condos and townhomes increased by 13.7% in December.

What has changed? Legislation has played a key role. Laws like HB 913, which brings transparency to associations, and HB 393, offering grants for hurricane mitigation, have injected confidence. Buyers now feel there are clear rules and support.

Additionally, the international buyer remains an irreplaceable engine. 52% of new construction sales are to foreign buyers, with 86% of them coming from Latin America.

A curious fact for my investor clients: older condos (over 25 years) are selling faster (78 days on market) than new ones (93 days), driven by more accessible prices. However, the sales volume is higher in modern units, where buyers seek to avoid future special assessments.

Inventory and Prices: The Window of Opportunity

Here is where I must be very clear with you: inventory is shrinking again. In Palm Beach, Martin, and St. Lucie, there are fewer homes for sale today than a year ago. In Miami-Dade and Broward, inventory is slightly higher, but the absorption rate is increasing.

We have a "lock-in effect" scenario: many homeowners have mortgages with historically low rates (average of 4.6% in Florida) and do not want to sell to avoid losing that rate. This limits supply, especially in the price range below $600,000, which today represents only 27% of the inventory in Miami-Dade.

The conclusion? Less supply + higher demand due to lower rates = Pressure on prices. A 3% appreciation in single-family homes is projected for 2026.

If you are waiting for prices to drop drastically, the data suggests otherwise. It is time to explore what is available before competition increases. View Properties For Sale Now

Frequently Asked Questions: 2026 Market

1. Will mortgage rates drop further in 2026?

Projections are optimistic. Miami Realtors® anticipates that rates could reach 5.8% by the end of 2026. Recent federal policies and the goal of revitalizing the economy without spiking inflation are pushing rates down, which increases your purchasing power.

2. Is it safe to buy an older condo in Miami today?

It is safe if done with due diligence. Although condos over 25 years old sell fast due to their price, it is crucial to review reserves and mandatory structural inspections. As your agent, my job is to ensure you don't enter a property with surprise assessments.

3. Which areas offer the best Return on Investment (ROI) currently?

Based on December data, areas like West Palm Beach (+56% in sales) and Pompano Beach are showing incredible dynamism. However, classic markets like Doral and Coral Gables remain safe value havens with consistent high demand.

4. I am an owner, should I sell now?

If you have accumulated equity, it is an excellent time. Inventory shortages play in your favor, allowing you to negotiate better conditions. Additionally, you can leverage your equity to move into a property that better fits your current needs.

Conclusion: Your Strategy for 2026

2026 is not a year to speculate; it is a year to act with information. The combination of falling rates, continuous migration from northern states, and tight inventory creates a competitive but very healthy environment for asset appreciation.

Your home is not just a place to live; it is your most important financial asset. Understanding how to navigate this new cycle will determine the growth of your family wealth.

Do you want to deeply understand how to use real estate to generate wealth this year? Let's discuss your specific case.

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