While the condos in South Florida are still selling, some say they haven’t been selling quite as fast as many sellers would like. This is due to the slight slowdown that the residential market has been experiencing. Currently around 77% of the units in the preconstruction market have sold, but some see this as being too slow. However, it is important to realize that the units are still moving. They are still being sold, but it’s happening a bit slower than the developers want.
Loss in Buyers
The sales of both currently built and preconstruction condos have dropped over the past several years by several percentage points. The slowdown varied based on the building, location, popularity, brand, marketing, etc. Some have only dropped by a single percent, while others are down around 10%.
Brickell and Miami River condos are reporting that around 85% of the area’s units have sold. Condos In Downtown Miami have sold around 70%. In North Miami, Key Biscayne, and Coconut Grove the number is reaching 90%.
The buyers that developers have counted on in the past, namely those from the northeast and those from Latin American, are not buying as much as they were. Those in Latin America are contending with a stronger American dollar now, and many countries in that region have internal problems. Even though they aren’t buying as much as they once were, they are still buying and renting more often.
Experts believe things are going to be changing though over the course of the next year. They see the Brazilian real as getting stronger against the dollar. They predict that they will start to see a larger number of Brazilian buyers when that happens. Another one of the reasons that professionals believe more purchases will be coming soon is because of the cost of the rents. In some cases, the rent can be as high as $75,000 a month. The renters will quickly see that it makes far more sense to buy one of these properties rather than to continue renting.
What About the Remaining Buyers?
For the buyers, this appears to be some very good news. It means there will be more of a surplus in units available, which means they will have more choice available to them, and they should also be able to negotiate for better prices. While the prices certainly aren’t dropping like a rock, they are starting to come down a bit. The sellers should still be able to make a decent amount when they sell a home, but the buyers should start to see some better deals coming to the market.
This is especially true of the condos that are already on the market and that are for sale by owners. The preconstruction condos that are for sale in Miami, while they are suffering from a slowdown, will likely not see any drastic price drops, at least not unless the market takes a deeper dive.
Whether buying or selling, always keep a lookout on the market to know when the best time to make a move will be. It’s the smart thing to do.
Call our office today to consult with Leon Bell – one of the top realtors in Miami, vice president of One Sotheby’s International Realty Sunny Isles Beach branch.