The South Florida luxury real estate market is entering a new phase as buyers become more selective and informed. After years of rapid price increases and quick sales, the region is settling into a more measured environment where property quality and preparation are critical to closing deals.

From PR to Properties

Kirsten Smith, a realtor associate at Douglas Elliman Real Estate, began her real estate career in an unexpected setting: Gloria Estefan’s Miami recording studios. After graduating from the University of Florida, Smith worked in the entertainment industry before moving into public relations in Palm Beach. When her PR firm started representing large condominium developments, her boss encouraged her to get a real estate license to help sell the units they were promoting.

“I got my license and started 23 years ago, and I’ve just kept going,” Smith says. Her experience in PR, marketing, and journalism has been instrumental in luxury real estate. “My background in PR and marketing really helps me tell the story of the property and why you should want the property or this lifestyle that this property and neighborhood provide.”

Market Reality Check

The current market stands in sharp contrast to the pandemic-era buying rush. Single-family home prices are up 23% year-over-year, but homes are taking longer to sell as buyers proceed more cautiously.

“I tell sellers they had a very good run for many years, and a lot of buyers were just excited to get to Florida and weren’t doing as much due diligence as they are now,” Smith explains. “Now we have more opportunity for buyers, more inventory to search through, so it’s best to come out at a realistic price.”

This environment requires a different approach from sellers who had grown used to multiple offers and fast closings. Smith counsels her clients to price their homes accurately from the start, rather than listing high and risking long periods on the market.

The Condo Conundrum

New regulations for Florida condominiums have caused major disruptions, especially for older buildings. Legislation now requires structural integrity reserves and regular inspections, making buyers wary of potential future assessments and repair costs.

“People are very educated on what is happening in that sector of the market, and buyers are more hesitant to buy, knowing that HOAs could have major assessments coming down the line,” Smith says. Rising insurance costs have added to the hesitancy, making older condominiums less attractive due to financial uncertainties.

As a result, buyers are showing a clear preference for newer buildings or those that have already completed their required inspections and reserve funding. Properties that can demonstrate compliance with new standards are selling more readily, while others linger on the market.

Buyer Profiles and Motivations

Despite headlines about an influx of buyers from high-tax states, Smith observes that the types of buyers entering the South Florida market remain largely consistent. “We’re still getting people from the northeast, from the Midwest, from the West Coast, even from California, that are coming to enjoy the lifestyle and the tax savings of Florida.”

However, buyers are taking more time to evaluate properties. “There’s more information available, and buyers are processing that information and evaluating a little more intently than they would be,” Smith says.

“In the $2–5 million segment, 6% mortgage rates haven’t meaningfully slowed activity. My clients aren’t driven by rate fluctuations. When they’re ready to purchase, they move forward—often using creative structures or, for second- and third-home buyers, leveraging advantageous financing through their private banking institutions.”

The Perfection Premium

Luxury buyers are increasingly unwilling to take on renovation projects, preferring properties that are move-in ready. Smith has seen a clear trend: homes that require work are at a disadvantage, while turnkey properties command higher prices.

“If a home isn’t turnkey, many of my buyers simply won’t take on the project,” she explains. “They’re not interested in remodeling or dealing with the uncertainty that comes with it.”

As a result, Smith will sometimes advise sellers to temporarily step out of the market, complete key improvements, and relist at a stronger position—not necessarily at a higher price, but at a price that makes more sense for the product they’re offering.

“We have taken some homes off the market, improved those homes while they’re off—maybe changing an exterior paint color, or large items such as kitchens, master bathrooms, or floors,” Smith says. This approach targets the growing segment of buyers who prioritize convenience and immediate usability.

Wellness as the New Luxury

A significant trend in South Florida luxury real estate is the increasing demand for wellness features. Buyers are seeking homes with amenities that support health and well-being, moving beyond traditional luxury elements.

“We’re seeing infrared saunas, cold plunges. We want space for meditation and stillness in your home,” Smith says. She expects this trend to continue as more buyers prioritize health-focused living environments.

Smith says the wellness trend is increasingly influencing construction decisions as well. She encourages clients to think in terms of “a clean, safe, healthy home,” and expects growing demand for non-toxic materials, improved ventilation and indoor air quality, and building practices that minimize mold, water intrusion, and off-gassing.

This focus on health and wellness is becoming as important as location or square footage in the luxury segment, influencing both new construction and renovation decisions.

Strategic Market Timing

Despite challenges such as longer days on market and increased buyer scrutiny, Smith sees opportunities for well-prepared buyers. For those looking to spend $2-3 million in Boca Raton, she advises acting now rather than waiting for more competition to enter the market.

“There’s actually more opportunity in the market right now,” she says. “If we see more buyers return next year, competition will tighten. At the moment, buyers have room to negotiate in ways they simply couldn’t before—so it’s an excellent time to make a move.”

Smith observes that sellers, especially those with new construction, are more willing to negotiate after properties have been listed for extended periods. This environment allows buyers to secure favorable terms and potentially better pricing.

Looking Ahead

Smith is optimistic about the coming years, particularly 2026, as she expects increased market activity and a more stable environment. She is preparing to relist properties that have undergone improvements and to launch new construction projects in January, timed to coincide with an anticipated uptick in buyer interest.

“I think everyone’s kind of allowing the holidays to take their course, and then January, I feel like we’re going to have a nice uptick in activity,” she predicts.

For both buyers and sellers, adaptability is now essential. Sellers must present move-in-ready homes at realistic prices, while buyers who act decisively can secure properties before competition intensifies.

As the South Florida luxury market moves beyond its pandemic-driven boom, the focus is shifting to quality, wellness, and pragmatic pricing. This new foundation promises more sustainable growth and rewards for those who understand and anticipate evolving buyer preferences. For industry professionals like Smith, success will depend on guiding clients through a market that is more complex but offers substantial opportunities for those who are prepared.