The Miami, FL metro area housing market is experiencing a notable shift as of January 2025. The Median Sales Price has decreased by 2.3% year-over-year, settling at $560,000. In contrast, the Median List Price has risen by 4.2% to $599,000, indicating a potential gap between seller expectations and buyer willingness.

Price Per Square Foot metrics further illustrate this trend. The median Price Per Square Foot has increased by 4.3% to $390.69, while the Median List Price per square foot has risen by 5.1% to $431.77. This suggests that while sellers are optimistic about pricing, buyers are more cautious, leading to a divergence in market dynamics.

Sales activity has slowed, with Homes Sold decreasing by 9.3% year-over-year to 1,439 units. Pending Sales have also seen a significant drop of 18.1%, totaling 2,070. This decline in sales activity is juxtaposed with an increase in New Listings, which have risen by 4.6% to 4,234, and a substantial 22.8% increase in inventory, now at 16,448 units. The Months of Supply have surged by 300% to 11.4 months, indicating a shift towards a buyer's market.

The Median Days on Market have increased by 20% to 89 days, reflecting a slower pace in the market. The average sale to list ratio has slightly decreased by 0.7% to 95.2%, suggesting that homes are selling for less than the asking price. Additionally, the percentage of Homes Sold above list price has dropped by 4.0% to 7.4%, further emphasizing the cooling market conditions.

Price Drops have become more common, with a 2.9% increase, now affecting 21.2% of listings. The percentage of homes going off the market within two weeks has decreased by 7.5% to 12.8%, indicating that properties are taking longer to sell.

Overall, the Miami housing market is undergoing a transition, with increased inventory and slower sales activity contributing to a more balanced market. Buyers may find more opportunities as sellers adjust their expectations in response to these evolving conditions.