Florida’s Luxury Market Surges While Mid-Tier Condos Stall: What’s Driving the Divide?

Written by:

Alejandra Rodriguez

Date:

05 Mar 2026

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Walk into a Miami real estate office in 2024, and you’ll hear a surprising reality: $7 million homes are selling within days, but $600,000 condos can sit on the market for months. Despite high mortgage rates, Florida’s high-end segment is moving rapidly, while mid-tier properties face a slowdown. If you’re not clear on which market you’re in, you could miss the real opportunity.

Uri Sefchovich, a realtor with Coldwell Banker in Miami, says the dynamic is unmistakable. In his first year in the business, he closed a nearly $7 million transaction, and his average sale price last year topped $3 million. “Luxury is growing in Miami,” he says. Meanwhile, condos priced between $500,000 and $700,000 are often listed for 6 months or more with little buyer interest.

Behind the Luxury Boom

The numbers tell the story. Properties above $1 million in Miami-Dade, Aventura, Brickell, and Coral Gables are moving quickly, often with multiple offers. At the same time, mid-tier condos face a backlog, with inventory levels at or above six months in many buildings. Entry-level condos under $300,000 are selling again after price reductions, but the $500,000 to $700,000 range remains slow.

The strength at the top of the market is driven by rising wealth and Miami’s appeal as a destination for affluent buyers. Stock market gains in 2024 — up about 18% — have increased the buying power of high-net-worth individuals. Many of these buyers view Miami as affordable compared to other global cities. Sefchovich notes that “people are making a lot of money in the stock market, and they find Miami cheaper per square foot than London, Paris, or New York.”

Cash deals are common, with roughly half of luxury transactions closing without financing. That means rising mortgage rates have little impact on this segment. Florida’s tax advantages, business-friendly policies, and lifestyle continue to attract wealthy migrants, especially from California and New York. New driver’s license data confirms that out-of-state migration remains strong.

Mid-Tier Condo Challenges

In contrast, the mid-tier condo market faces oversupply and pricing challenges. Many sellers in older buildings ignore current market conditions and list at outdated prices — sometimes $800 per square foot, even though comparable units are selling for $500. “Many sellers don’t listen to their realtor’s advice,” Sefchovich says. “They come up with a high price, and then the property just sits.”

Buyers at this price point are cautious, especially in buildings with high HOA fees or pending assessments. With plenty of options and little urgency, they are willing to wait for better deals or price reductions. As a result, condos in this range often linger on the market, and only those priced aggressively or offering incentives are attracting attention.

Luxury Demand in Action

Sefchovich points to a recent example: he listed a luxury rental at $20,000 per month and received a call from a qualified tenant the next day. “People are willing to pay $20,000 a month just to try Miami,” he says. That kind of immediate demand doesn’t exist for mid-tier condos, where buyers often compare dozens of similar units and negotiate hard on price and terms.

On the other hand, a $650,000 condo in a building with high inventory and expensive fees might sit for months before receiving a single offer. Buyers in this segment are slower to commit, often waiting for sellers to lower their prices or offer concessions.

What Buyers and Sellers Should Do Now

If You’re Buying Luxury:

Act quickly on properties above $1 million, especially in Aventura, Coral Gables, or Miami Beach. These homes attract multiple offers, often from out-of-state or international buyers. Bring your strongest offer and be prepared to close fast, as competition is high.

If You’re Buying Mid-Tier:

Take your time. With six months or more of condo inventory in many buildings, buyers have leverage. Negotiate for price reductions, closing cost credits, or seller-paid HOA fees. There is little urgency, so make sure you’re getting value.

If You’re Selling Luxury:

Price your property competitively and ensure it’s move-in ready. High-end buyers expect turnkey homes and are willing to pay for quality. Staging and marketing to out-of-state and international buyers can help your listing stand out and move quickly.

If You’re Selling Mid-Tier:

Be realistic about pricing from the start. Review recent sales in your building and list at or below market value. Sefchovich warns, “If you overprice, you’ll sit for 200 days.” Offering incentives — such as covering assessments or including appliances — can help attract buyers in a crowded segment.

Looking Ahead

Miami’s real estate market is increasingly divided. Luxury homes above $1 million are seeing strong demand and fast sales, while mid-tier condos are weighed down by excess inventory and sellers’ unrealistic expectations. Buyers in the luxury segment should expect competition and act decisively. Those looking in the $500,000 to $700,000 range have more time and negotiating power, as options outnumber active buyers.

“The luxury segment is behaving completely differently than the rest,” Sefchovich observes. Understanding which market you’re in — and adjusting your strategy accordingly — is critical in 2024. Sellers who cling to old pricing models will be left behind, while buyers who know where the leverage lies can secure better deals.

About the Expert: Uri Sefchovich is a realtor with Coldwell Banker in Miami, specializing in luxury properties in Miami-Dade, Aventura, Brickell, and Coral Gables. He was named Rookie of the Year at The Keyes Company in 2024 and ranks among the top agents in his office.

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.