For the first time in at least five years, the number of condominium units in the development pipeline in South Florida has outnumbered listings for resale units, according to a new report from Condo Vultures.
More than 18,500 new condos were planned as of May 20 (they have not yet started presales). Meanwhile, 18,400 units are listed on the MLXchange multiple listing service in counties such as Miami-Dade, Broward and Palm Beach, said Condo Vultures citing Florida brokerage firm CVR Realty’s data.
Condos and townhouse resale inventory in the region has dropped by nearly 70 percent since the Thanksgiving holiday week of 2008, according to the Florida Realtors Association data cited in the report. Prices for new development condo units in South Florida start at more than $400 per square foot compared to an average price of nearly $275 per square foot for units on the resale market, the report said.
Nearly 20 condo high-rises, including 1100 Millecento Residences and Aventura’s Bellini at Williams Island, are under construction in South Florida in the wake of the regional real estate market crash in 2007, Condo Vultures said.
“The recent surge in newly proposed condo towers combined with the shrinking inventory of resale units has flipped the direction of the South Florida condo market,” said Peter Zalewski of Condo Vultures. “Unless something changes, condo buyers could increasingly be faced with stiff competition for existing resale units and rising prices for condos in proposed towers.” [Condo Vultures] –Mark Maurer