Peter Zalewski: Miami Beach is overheating

Miami /
May.May 28, 2013 11:00 AM

At the onset of summer, Miami Beach real estate is showing signs of overheating, Condo Vultures Realty principal Peter Zalewski said in a Miami Herald opinion piece. Bullish agents are asking for prices higher that surpass the peak of the last cycle in 2006, Zalewski said.

Real estate sticker prices continue to climb even amid rising inventories of resale properties, but prices are “poised to potentially weaken” as activity slackens over the summer months.

Nearly 600 South Beach condos built during the last real estate boom went unsold for a third consecutive quarter even as 17 new towers with nearly 1,100 condo units have been proposed at prices that exceed $3,000 per square foot, Zalewski said, citing Miami-Dade County records and marketing materials.

Rental inventory is rising as more tenants go to brand new units in mainland Miami, he said.

Industry observers generally deem a residential market healthy if it has about six months of resale inventory, with anything higher as advantageous to buyers and any less inventory a benefit to sellers.

Miami Beach has 190 days, or just over six months, of condo resale inventory, and nearly nine months of single-family home inventory. [Miami Herald]Emily Schmall


Related Articles

arrow_forward_ios
Pierre Pomerleau and Eighty Seven Park (8701 Collins Avenue, Miami Beach)

Canadian construction mogul buys another condo at Eighty Seven Park

Canadian construction mogul buys another condo at Eighty Seven Park
Billionaire hedge fund manager Dan Loeb and renderings of 6440 North Bay. (Third Point, To Better Days Development)

Billionaire hedge funder Dan Loeb buys waterfront Miami Beach estate: sources

Billionaire hedge funder Dan Loeb buys waterfront Miami Beach estate: sources
Phil Collins is in contract to sell his waterfront Miami Beach mansion amid a legal battle with his ex-wife, Orianne Bates. (Getty, Coldwell Banker Realty)

Phil Collins finds buyer for waterfront Miami Beach estate listed for $40M

Phil Collins finds buyer for waterfront Miami Beach estate listed for $40M
International Inn at 2301 Normandy Isle, Miami Beach (Google Maps)

Miami Beach approves 8-story addition for International Inn

Miami Beach approves 8-story addition for International Inn
Jorge Perez and Jon Paul Perez with Terminal Island (Getty, iStock)

Related gets height increase needed for Terminal Island office project in Miami Beach

Related gets height increase needed for Terminal Island office project in Miami Beach
(Google Maps)

Miami-Dade condo sales and closed dollar volume take a dive at start of year

Miami-Dade condo sales and closed dollar volume take a dive at start of year
An exterior of 1835 West 27th Street, Miami Beach (Douglas Elliman)

Venezuelan oil tycoon sells Sunset Islands waterfront mansion for $17M

Venezuelan oil tycoon sells Sunset Islands waterfront mansion for $17M
 Jeff Blau and One Ocean (Getty)

Related Cos. CEO Jeff Blau sells Miami Beach condo

Related Cos. CEO Jeff Blau sells Miami Beach condo
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...