As 2025 approaches, now is the perfect time to reflect on the questions that could shape the real estate market in the year ahead. Whether you're buying, selling, or investing, these topics might just redefine the way we navigate real estate in Miami-Dade and Broward County.

Here are five key questions—and my predictions—that could impact the market in 2025:

1. Will Taxes Stay the Same, Increase, or Decrease? While property taxes in our area have been on a steady incline, there’s talk of changes on the federal level that could make waves. The SALT deduction limit may increase—possibly doubling to $20,000—but its benefits might not extend to everyone. Locally, real estate taxes are likely to remain on an upward trajectory as demand for services and infrastructure grows. For homeowners and investors, this underscores the importance of understanding how taxes influence long-term costs.

2. Will Inflation Keep Rising? Inflation remains a hot topic, with many factors in play. A strong economy often fuels higher consumer spending, which can drive up prices. Add to that potential shifts in tariffs, labor disruptions, and generational wealth transfers, and inflation could hover around 3% or even tick higher. For real estate, this impacts everything from construction costs to affordability. The key will be watching how local prices respond to national trends.

3. Will Interest Rates Finally Come Down? Interest rates have been on a rollercoaster ride. While 2024 saw a downward trend, the aftermath of the election and shifts in the bond market have created uncertainty. That said, I’m optimistic that rates could stabilize at healthier levels—likely higher than the ultra-low 3% rates we saw during the pandemic, but lower than recent highs. For Miami and Broward buyers, even a modest rate drop could significantly improve affordability and expand options.

4. Will We See More Affordable Housing Options? The lack of affordable housing remains a pressing issue in South Florida. While reduced regulations and potential tax incentives might encourage more diverse development, challenges like labor shortages, rising material costs, and neighborhood opposition persist. Developers are often drawn to higher-profit luxury projects, leaving a gap in affordable options. In 2025, the hope is for more creative solutions to meet the needs of middle-income families and first-time buyers.

5. Will Wage Growth Outpace Rising Home Prices? Wage growth in Miami and Broward has been encouraging, but it’s a race against rising home prices. If inflation stabilizes around 2-3%, wages could keep pace, helping more people achieve homeownership. However, the growing impact of generational wealth transfers—estimated at $3-4 trillion annually—means some buyers will rely less on wages and more on inherited resources. This trend could further divide the market between cash buyers and those financing their homes.

Why Local Data Matters More Than Ever While national trends provide a helpful backdrop, real estate is always local. In Miami-Dade and Broward, hyper-focused insights into specific neighborhoods and communities are what truly guide smart decisions. From tax policies to construction trends, every market has its own story—and I’m here to help you uncover it.

As we enter 2025, let’s stay informed, adaptable, and ready to seize opportunities in this ever-evolving market. Whether you’re planning to buy, sell, or invest, reach out for personalized guidance tailored to your goals.

Here’s to a successful and prosperous 2025!

For more insights and updates, visit MoreThanTheSale.com.