By Gay Cororaton, MIAMI REALTORS Chief Economist
Key takeaways:
- Cash buyers accounted for over half of Southeast Florida’s condominium/townhome sales in April 2025. Nationally, 25% of all existing home sales were all-cash sales.
- Cash buyers accounted for over 65% of million-dollar condominium/townhome sales in April 2025 in the Southeast Florida counties.
- Cash buyers accounted for about the same or a higher share of sales compared to 2019 and 2024 levels, an indication that wealthy buyers remain positive about the long-term outlook of Southeast Florida’s condominium market.
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Amid the headwinds facing the condominium market, wealthy buyers remain positive about the long-term outlook of Southeast Florida’s condominium market, attracted by Southeast Florida’s coastal lifestyle and the income and tax advantages of living and purchasing property in Florida. Two indicators suggest this positive outlook: the higher share of cash buyers and the rising share of million-dollar home sales.
In April 2025, cash buyers accounted for over half of condominium/townhome sales in Southeast Forida’s five counties: Miami-Dade (52%), Broward County (57%), Palm Beach County (64%), Martin County (71%), and St. Lucie County (54%).
The share of cash buyers ticked up significantly from 2022 onwards as mortgage rates started to climb up from historic lows of near 3% in 2021 as the Federal Reserve Board started to raise the federal funds rate to bring back inflation down to 2%. All counties have higher cash sales shares in April 2025 compared to April 2019.
Cash buyers are even more dominant in the million-dollar market, accounting for over 65% of sales in April 2025: Miami-Dade County (67%), Broward County (86%), Palm Beach County (88%), and Martin County (83%).
Cash buyers of million-dollar homes accounted for the same or a higher share compared to the shares in 2019. Compared to one year ago, cash sales accounted for a higher share of Broward County and Martin County sales.
Cash buyers are dominant in coastal markets
Southeast Florida’s coastal luxury niche markets continue to attract cash buyers. Cash sales accounted for at least 70% of sales in April 2025 in major coastal markets like Lauderdale-by-the-Sea (86%), the town of Palm Beach (84%), Hallandale Beach (81%), North Palm Beach (78%), Sunny Isles Beach (74%), and Miami Beach (70%).
These areas all have higher cash sales shares in April 2025 compared to one year ago and compared to April 2019 except in the town of Palm Beach although this million-dollar market still has over 80% cash sales.
Cash buyer share is likely to remain stable amid elevated mortgage rates
Cash buyers are likely to continue to be the major source of demand in the condominium/townhomes market as mortgage rates remain volatile and elevated. As of May 24, the 30-year fixed mortgage rate is at near 7% while the 10-year Treasury yield hovers at 4.5%.
Financial markets continue to price in the potential inflationary impact of the recently imposed tariffs (10% universal tariff, 25% tariff on steel and aluminum) and potential higher tariffs on US imports from China (145% but temporarily lowered to 30%) and the European Union (50%) which have been temporarily suspended as the US engages in tariff negotiations with China and the EU. These tariffs are likely to raise the cost of building materials and the cost of a new home by an average of $10,900, according to estimates of the National Association of Home Builders.
