A new report from brokerage Esslinger Wooten Maxwell shows that the number of condos on the market in Miami-Dade County has now more than doubled that of single-family homes.
With this influx of new inventory comes a 3.7 percent decrease in sales volume for condos for the second quarter, compared to the same period of last year. A total of 4,588 condos were sold in the second quarter of 2015, down from 4,764 from the previous year.
Ron Shuffield, CEO of EWM and author of the report, said this trend will continue into the foreseeable future.
While more and more condos are coming online, the market is depleting its stock of single-family homes. Demand is clearly up, as sales volume in June was 6.4 percent higher than the same month last year, but the number of homes for sale has decreased 4.8 percent in that same time frame.
“While we are certainly not heading towards the drastic slowdowns experienced in the mid-2000s, there are clearly ripples in the market of which we need to be aware, and adjust accordingly,” Shuffield wrote in the report.
Interestingly, the supply of homes and condos with price tags over $1 million has notably increased. There is now 11.3 months of inventory for single-family homes in that price bracket, up from 9.3 months the year before, and 17.9 months for condos, up from 11.9 months.
Shuffield’s advice to industry members is to “keep your eye on the ball.” That means prudently evaluating property prices for both sellers and buyers.
“I have started to encourage our EWM associates to begin working with their sellers to truly assess whether their price point, especially with condominiums in the urban corridors, is viable.”
An earlier version of this story incorrectly stated that the total number of condos sold in the second quarter of 2015 and 2014 was 1,529 and 1,588, respectively. The correct figures are 4,588 and 4,764.