T
he Miami housing market is on the brink of collapse as a surge in cancelled deals threatens to send prices plummeting. According to Redfin, 18% of pending home sales in Miami fell through in March, making it one of the top 20 cities for cancellations nationwide. Real estate analyst Nick Gerli warns that demand has collapsed, with sales down 50% from pandemic peaks and 30% below long-term averages.

    Local realtor Jeff Lichtenstein says the market's downturn is due to uncertainty caused by President Trump's tariffs, which are raising fears of a recession. "It really started about two weeks ago with all the jitters and up-and-down Wall Street every day," he explains. "Uncertainty is an issue."

    To attract buyers, sellers must be more flexible and prepared, Lichtenstein advises. This includes pre-inspections to avoid costly surprises during the inspection process. Sellers also need to make decisions quickly, within 24 hours, as buyers are increasingly bailing on deals.

    Long inspection periods, drawn-out closing times, and weekslong mortgage approvals are also causing buyers to get cold feet. Lichtenstein recommends streamlining these processes to keep deals on track. "Inspections should be done in 5-7 days, closings within 30 days, and mortgage approvals within 15 days," he says.

    The median sale price of a home in Miami is $650,000, but condos are becoming increasingly problematic due to higher assessments and insurance premiums. The market saw a nearly 50% uptick in listings from March 2024 to March 2025, with homes sitting on the market longer and being priced too high.

    Homeowner association (HOA) fees and insurance premiums are also turning buyers off, while natural disasters are scaring people away from the area. To attract buyers, the Florida markets need to undergo a price correction, Lichtenstein says. "On the other hand, we've had some buyers still want money in real estate," he notes. "Tariffs are the wildcard."