In South Fla., There’s a Buyer’s Market – for Condos

According to an analysis of MLS data by Condo Vultures Realty, Greater Downtown Miami has more than 30 months of condo supply and 100 months of supply of luxury units. Most economists consider a six-month supply to be balanced between buyers and sellers, with few months indicating a sellers’ market and months higher than six representing a buyer’s market.

Both downtown condo figures are based on sales during the first six months of the year in the area between Edgewater and Brickell, east of I-95, and generally do not include preconstruction sales. The roughly 30 months of supply of all condos in the area is based on 711 sales that closed between January and June, for an average of about 119 sales per month.

As of Aug. 18, there were 3,579 condo listings in Greater Downtown Miami asking an average price of about $758,000; the average closing price for the first half of the year was $511,000.

In the luxury market, only 36 units asking at least $1 million were sold between January and June, for an average of just six units sold a month. Currently, about 600 luxury condos are on the market, asking an average price of $2.05 million, and 26 luxury condo sales are pending.

The single-family home market has continued to flourish during the pandemic, though sales are concentrated in the high-end.

Analysts say shadow rental inventory is also growing – homes not actively marketed. There are nearly six months of supply of shadow rental units listed on the MLS, based on an average of 541 leases signed in the first six months of this year. During that six-month period, a total of 3,245 leases were signed in Greater Downtown Miami, and about 3,167 units are currently on the market for rent as of this week.

One analyst predicts that investors will continue to sell their condos at deep discounts.

Source: The Real Deal (08/21/20) Kallergis, Katherine

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