In Greater Downtown Miami, it’s a true buyer’s market.
The area is facing a glut of luxury condo inventory, with about five years of excess supply, according to a new report from Condo Vultures Realty. Nearly 560 luxury units asking at least $1 million are on the market.
During the first half of 2018, about eight high-end units sold each month in Greater Downtown Miami. That means that there are about 70 months of inventory.
Six months of supply generally makes for a balanced market, while anything over that suggests a buyer’s market.
The report covers condo units listed for sale on the Southeast Florida MLS Matrix, east of I-95 from the Rickenbacker Causeway north to I-195. That area includes Brickell, Downtown Miami and Edgewater.
Inventory is growing in Greater Downtown Miami. A year ago, there were 434 luxury units on the market in the area with about 8 units selling per month. That came out to 55.5 months of supply, or over four years of excess inventory, according to Peter Zalewski, whose firm created the report.
Asking prices are also still rising, from nearly $600 a foot to $641 a foot. The jump in pricing and inventory is due in part to new projects coming online, Zalewski said. It’s not uncommon for buyers of new condos to list their units shortly after closing on them in the hopes of flipping them for a quick profit.
Within the last year, developers have completed projects like Echo Brickell, 1010 Brickell and the Paraiso District in Edgewater.
And because of the increase in supply, luxury units are spending more time on the market. In Greater Downtown Miami, luxury condos spent an average of 187 days on the market before selling, compared to 150 days in August 2017, Zalewski said.
During the first half of the year, luxury units sold for an average of $1.6 million, or $641 a foot.
About 14 luxury units are now under contract to sell for an average price of less than $2 million or $844 per square foot, according to the report. The average asking price for units on the market is $2.1 million, or $848 per foot.
Earlier this year, a Condo Vultures analysis found that there were about four years of luxury condo inventory countywide.