High Mortgage Rates and Lean Inventory Cool the Market
According to the Miami Association of Realtors, Broward County’s housing market cooled in August 2025 as elevated mortgage rates and a shortage of listings at key price points weighed on demand, even as indicators suggest the market is moving toward a healthier balance after years of pandemic-era frenzy.
Total residential sales fell 12.4% year-over-year to 1,989 transactions, down from 2,270 a year earlier, according to local market data. Single-family home sales dropped 12.6% to 1,015, while condominium closings declined 12.2% to 974.
Despite the pullback in closed deals, new pending sales — a forward-looking gauge of market activity — rose 2.7% from a year earlier, signaling that buyer demand remains resilient in select segments.
Pricing and Inventory Trends Diverge
The median single-family home price climbed 3.1% year-over-year to $625,000, while the median existing condo price fell nearly 10% to $247,700 amid affordability pressures and tighter financing conditions.
Just 0.9% of South Florida condo buildings are approved for FHA loans, limiting access for entry-level buyers. Florida also requires buyers to put down 25% for a limited review when condo reserves are insufficient — more than double the 10% threshold in most other states.
Inventory levels rose but remained well below pre-pandemic norms. Active listings at month’s end totaled 16,559, up 20% year-over-year, while new listings fell 16.9% to 3,091, suggesting that many potential sellers remain on the sidelines.
Single-family inventory increased 19.2% to 5,489 homes, and condo inventory jumped 20.5% to 11,070 units. Even so, the market remains split: single-family homes held 5.7 months of supply, indicating a seller’s market, while condos reached 11.9 months, firmly favoring buyers. A balanced market typically ranges between six and nine months of supply.
Foreign and Cash Buyers Keep Broward Competitive
Foreign investment continues to underpin demand. International buyers accounted for 49% of all new South Florida construction, pre-construction, and condo conversion sales over the 18 months ending June 2025.
Cash sales represented 37.2% of all Broward closings in August — well above the 20% national average, per the National Association of Realtors. Among property types, 51.9% of condo transactions and 22.9% of single-family deals were all-cash.
Analysts attribute the strength of cash purchases to affluent out-of-state and overseas buyers less affected by rising mortgage costs.
Mortgage Rates and Market Pace
Mortgage costs remain a headwind. The average 30-year fixed-rate mortgage stood at 6.26% as of Sept. 18, according to Freddie Mac.
Homes are taking longer to sell: single-family properties averaged 47 days to contract, up from 32 days last year, while condos averaged 74 days, up from 56.
The median percent of list price received fell slightly, to 95% for single-family homes and 91% for condos — reflecting greater room for negotiation as buyers gain leverage.
Sales Volume and Distress Remain Low
Total dollar volume across all Broward residential sales dropped 3.8% to $859 million. Condo volume declined 15% to $315 million, while single-family transactions dipped by a similar margin.
Distressed sales remained rare, representing just 1.2% of all transactions — below the 2% national average.
Outlook
While activity has cooled from the breakneck pace of 2021-22, economists say the slowdown is steering the market toward sustainability.
“Broward is transitioning from a hyperactive, pandemic-driven market to a more balanced environment,” said one local analyst. “Buyers are gaining time to shop, and sellers are learning to price realistically.”
With mortgage rates steady above 6%, new listings subdued, and inventory still rebuilding, Broward’s housing market appears poised for a steadier, more predictable phase heading into 2026.
