Condo inventory skyrockets in South Florida as foreign buyers remain on sidelines: EWM

Miami-Dade is facing a 47-month supply of condos, according to the report

TRD MIAMI /
Feb.February 01, 2017 12:00 PM

An Argentine investor looking to buy luxury real estate in South Florida can expect to pay 403 percent more today than in 2007. That’s how much value the Argentine peso has lost against the dollar, according to a newly released Esslinger Wooten Maxwell report.

A Venezuelan buyer would likely have to pay 365 percent more today than in 2007, and a Russian buyer would have to shell out 149 percent more. The statistics explain why the once robust flow of foreign investors purchasing luxury condos and single family homes has slowed to a trickle.

“These are very real numbers,” EWM Realty International President and CEO Ron Shuffield told a gathering of real estate professionals on Wednesday. “Brazil is looking a little better. Russia is looking a little better. But there is a lot of inventory and very few buyers.”

Shuffield disclosed data in the EWM 2017 South Florida Real Estate Market report during a panel discussion at the Hilton Miami Downtown. According to EWM, the inventory for condos in the $300,000 to $999,999 price range increased by 54 percent in the fourth quarter of last year compared to the same period in 2015. In Broward County, condo inventory increased by 22 percent.

Miami Dade’s luxury condo inventory, defined as $1 million and up, skyrocketed 69 percent from the fourth quarter of 2015 to the fourth quarter 2016, according to EWM. At the same time, $1 million-plus condos only accounted for 4.5 percent of total condo sales in Miami-Dade during the fourth quarter of last year. In Broward, luxury inventory rose 34 percent.

At the end of 2016, condo prices dropped 21 percent, year-over-year. Miami-Dade is facing a 47-month supply, and when it comes to condos priced between $2 million and $4.9 million, Miami-Dade has a 58-month supply of inventory and Broward County has a 76-month supply.

At $5 million and above, Miami-Dade has a 108-month (or nine-year) supply of condos and Broward has an eye-popping 19 years, or 228 months, worth of supply.

Shuffield said the inventory glut and the slower sales pace is putting pressure on sellers to slash their asking prices. “Many of our sellers are coming to that realization,” he said. “We’ve had a lot of success [telling] many of our sellers that they need to reduce prices.”


Related Articles

arrow_forward_ios
A map of condo sales and Setai in Miami Beach (Credit: Google Maps)

Weekly condo sales volume in Miami drops to $50M

Weekly condo sales volume in Miami drops to $50M
A map of Miami condo sales and Ocean Tower Two (Credit: Google Maps)

Miami condo sales decline going into October

Miami condo sales decline going into October
(Google Maps, Realtor)

Miami condo sales and dollar volume both rise at end of September

Miami condo sales and dollar volume both rise at end of September
Four Seasons Residences at the Surf Club in Surfside

Miami condo sales go up, but dollar volume falls

Miami condo sales go up, but dollar volume falls
Map of condo sales and the Surf Club Four Seasons (Credit: Google Maps)

Down again: Miami condo sales declined last week

Down again: Miami condo sales declined last week
From left: Henry Torres, Jorge Perez, Alicia Cervera Lamadrid, Gil Dezer and Joseph Kavana (iStock)

“Anything and everything is negotiable”: Incentives for condo buyers mount in Miami

“Anything and everything is negotiable”: Incentives for condo buyers mount in Miami
Map of condo sales and Grove at Grand Bay at 2675 South Bayshore Drive (Credit: Google Maps)

Miami condo sales rise in first week of September

Miami condo sales rise in first week of September
Map of priciest condo sales and One Bal Harbour (Google Maps)

Condo sales rise, but dollar volume falls again in Miami-Dade

Condo sales rise, but dollar volume falls again in Miami-Dade
arrow_forward_ios

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

Loading...