The Real Deal Miami

Miami-Dade condo sales fall 15%

Condo inventory is piling up amid slow sales

December 01, 2015 11:15AM

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A 2009 photo of Miami's skyline (Credit: Nigel Morris)

A 2009 photo of Miami’s skyline (Credit: Nigel Morris)

Miami-Dade County saw a small uptick in luxury home sales during the third quarter, but the county’s condo market suffered a heavy hit.

There were 258 luxury single-family home sales during the third quarter, representing a 5.3 percent increase in transactions compared to the same quarter in 2014.

Meanwhile, 237 existing luxury condos were sold in that same time frame. That’s nearly a 15 percent decrease year-over-year.

These numbers come from a new Miami Association of Realtors report, which looked at the amount of homes that sold for $1 million or more during the months of July, August and September and compared them to last year.

The report said Miami-Dade’s drop in existing condo sales could be caused by competition with pre-construction units.

And for single-family homes, the strengthening dollar is bringing in domestic buyers to replace wealthy South Americans whose weakening currencies made it less attractive to buy in South Florida.

Chris Zoller

Chris Zoller, the Miami Association of Realtor’s 2015 residential president of Miami

Christopher Zoller, the association’s 2015 Residential President of Miami, said the strong dollar is bringing more wealthy executives and hedge-funders to Miami, where they’re picking up ritzy homes.

While fewer luxe condos are being sold, a wave of existing units are hitting the market. There were 871 luxury condos listed for sale during the third quarter, up 23 percent from last year.

Meanwhile, single-family homes saw a similar rise in inventory: there were 1,331 listed for sale last quarter, up a whopping 27.5 percent from last year’s total of 1,044.

The association’s report shows sales are up for homes during the third quarter, but The Real Deal took a look at the broader numbers for its October magazine: Miami-Dade’s residential market has hit a slowdown, largely thanks to the drop in South American buyers perusing the local market.

And while price appreciation hitting a speed bump could actually help the market, a buildup of inventory has begun — especially for condos throughout the county. — Sean Stewart-Muniz