Luxury living inventory: too much, too soon?
Soaring quantities of luxury inventory are entering the market at rising prices, slowing South Florida’s residential real estate recovery, according to Condo Vultures principal Peter Zalewski in an op-ed in the Miami Herald.
At the current 2013 sales pace of about 235 monthly luxury property transactions, South Florida now has about 20 months of high-end inventory available at a median price of more than $540 per square foot, Zalewksi reported, citing an analysis of Southeast Florida MLXchange data.
Industry observers say healthy residential real estate markets typically have about six months of inventory available, Zalewski said.
As the resale activity has slowed in South Florida in 2013, the number of luxury residences on the market has grown to more than 4,550 properties priced of at least $1 million each.
As of April 15, more than 3,950 luxury residences — about 87 percent of the available luxury inventory — are on the market in South Florida with an asking price of between $1 million and $5 million each, according to the data. [Miami Herald] –Emily Schmall