Luxury Condo In Miami, Now’s The Time
For the first time since 2009 Miami area condominium prices are on the decline and are declining rapidly. Robert Frank of CNBC states “Prices for luxury condos in Miami falling 47% in the third quarter and 30% year over year that marks one of the biggest declines since the recession”.
CNBC “According to a new report from Douglas Elliman and Miller Samuel, the average sale price for luxury condos in Miami and Miami Beach plunged 30 percent year over year in the third quarter, to $948,700 and $2.6 million respectively.”
Although astonishing to most in the real estate and development field it probably shouldn’t be. Development companies are completing large scale luxury condo projects at a pace that international buyers cannot keep up with. With an extremely strong U.S. Dollar it makes little since for wealthy international buyers to purchase in the United States when compared to the other destinations such as Virgin Islands, Seychelles, or Marseille.
New research from the 3rd quarter 2016 report by Douglas Elliman and Miller Samuel says:
– There is currently a 3 year supply of luxury condos in Miami (luxury meaning $1 million plus).
– Miami sales are down 25%.
– South Beach inventory is up 30% over last year
– Miami Beach are down sales down 17%.
– Miami Beach / South Beach have a 4.5year supply of luxury condos.
The report also states there are currently over 15k condos under construction. Given the extreme margin between buyers and inventory, Miller expects the luxury real estate market in Miami and Dade Counties to get worse before it gets better.