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The Time To Buy A Condo…Is Now!

Aerial View of Sunny Isles Beach Up To Aventura

While the increase in sales of single-family homes during the pandemic has certainly made headlines, there are now excellent opportunities for those looking for high-end condominiums in Miami-Dade. BHHS EWM Realty’s internal studies have revealed that many individuals and families have been on the sidelines waiting for what they perceive as ‘real value’ when it comes to luxury condos – those priced in excess of $1 million.

The Wait Has Paid Off

Well, their wait has definitely paid off! The price reductions we are seeing are creating compelling values, and the buyers who are looking to capitalize on this opportunity are from all walks of life — from professionals to empty nesters, to millennials.

They are seeing a unique window to purchase from a wide selection of high-quality inventory at solid values, and of course, historically low interest rates on mortgages. Local buyers are finding it much easier to ‘move up’ in size and lifestyle — including many current renters who have been waiting for this moment to purchase.

Sprinkled in among our large group of local buyers is a growing number of out-of-towners from the northeast and other urban parts of the country who also see a sound value in our better-priced luxury offerings. The enticement of more realistic pricing, coupled with Florida’s no state income or inheritance tax, is a pretty irresistible combination — drawing many to live in our sunshine year-round.

How Good Are The Values?

That depends on many factors, among them — location, the condominium amenities, and the motivation of the seller, among numerous others.

Nonetheless, generally speaking, another recent BHHS EWM Realty study on the sale of luxury condominiums, those priced $1 million and above, revealed that the average final sale price was 82% of the original listing price. That means, on average, a luxury condominium is selling at an average discount of 18% from the average original sales price.

The oversupply of high-end condos in our market has existed since 2016. That’s when available inventory suddenly began to increase. COVID simply brought the supply imbalance into a much clearer focus. An ideal level of inventory in the luxury space is 12-18 months of remaining supply. At present, there is a 45-months’ supply of available inventory of luxury condos in Miami-Dade priced in excess of $1,000,000.

Where Are The Values?

No doubt that more of the values are found in Miami-Dade, where the supply is greater, although Broward has its share of oversupply, just not as dramatic. The majority of luxury condos are located east of U.S. 1 in Miami-Dade – the downtown Miami corridor, Brickell area, Aventura, etc. We find that Miami Beach and other oceanfront luxury properties, while experiencing softened prices, are not experiencing the level of discounts seen in some of the luxury urban buildings on the mainland. Although, there are certain oceanfront sub-markets, such as Sunny Isles Beach, that are experiencing considerable downward pressure on pricing, which is generating a larger oversupply of inventory than other oceanfront markets.

Not A Large Window of Opportunity.

While we are still clearly in the throes of the impact of COVID on the condominium market, we believe that the window is somewhat limited. As supply begins to slowly diminish, so will many of the greater values. In spite of the COVID challenges, Miami-Dade’s future is extremely bright. We will recover and so will condominium prices, so don’t miss these excellent, arguably once-in-a-lifetime, opportunities.

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Our Associates write often to give you the latest insights on owning a home or property in the Southeast Florida area.