View of Miami River, Downtown, Miami Beach and Brickell
August 18, 2012
MIAMI SHIFTS SELLER'S MARKET ON CONDO FRONT
There's been a marked shift in Miami's condo market. Withforeclosed properties nearly bought up and inventory low, it's officially a Seller's Market. Prices are becoming competitive once again. Inventory in MLS is down from the first half of 2012 compared to 2011-down by more than 20%, Prices are up by approximately 15% in one year.
Furthermore, the days on the market are significantly down from an average of 134 days from a listing to a sale in 2011 to 49 days from a listing to a sale in 2012. Unsold inventory is declining at a much faster pace than any real estate professional expected this year. It's expected that the second half of this year will continue to decline in listing inventory from MLS as well as continued increases in prices. That's because while about 32,000 condos were built in South Florida from 2005 through 2010, no new supply has hit the market since then. According to the Miami Association of Realtors,"Miami experienced a 54% increase year over year in condo sales in the month of June 2012 alone". Typically it takes approximately two years before new condos are ready for occupancy from the beginning to end of construction. With over eleven new pre-construction buildings solely in Miami Dade County to be delivered 2013-2015, and a gap in between, and the continued decrease in inventory; Miami Condo Boom has shift into a Seller's Market.
