South Florida’s condo market is under mounting pressure, especially for aging buildings. A 1,358-square-foot (126 m²) Palm Beach unit in a 60-year-old building was recently cut from $849,000 to $649,000—symbolic of a broader slowdown. While showings remain high, actual buyers are scarce.

The causes are structural. Nearly 87% of the 25,000+ condos for sale are over 30 years old, and since the Surfside collapse, new laws require costly repairs and full reserves—making financing difficult. Many owners struggle to afford special assessments.

International demand, once a key stabilizer, has faded. Foreign buyers made up 50% of sales in 2018; between August 2023 and July 2024, just 10%. From Latin America to Europe, investors face higher rates, strong dollar, and stricter U.S. immigration. They’re no longer stepping in to rescue the market.

Still, the market isn’t crashing. New construction moves forward, luxury deals close in cash—74% of $1M+ sales in Q1 had no mortgage. It’s a correction, not a collapse. For some, it may even be an opportunity.

(source: The Real Deal, New York Times, picture: Kian Lem)