What is happening in the Downtown Miami Condo Market?
First we have a snapshot of where the market stands today for the 3rd Quarter. Look at these #'s 765 Listings, 101 Closed Sales, and 23 Months of Supply, terrible. Next look at where most of the market activity is taking place... under $1 Million you have 75% of the Closed Sales and if you add the $1-3-Million makes up 94% of the market. then and some up to $3-Million, then sales drop off dramatically above $3-Million, definitely shows a slow down at the higher end.
The Highest priced Closed Sale for the 3rd Quarter was at The Aston Martin Building a high-floor corner 5 Bedroom unit for $5.150 or over $1,300/sqft and the only sale for the Quarter above $5-million. We want to point out that out of the 25 Closed Sales at $1-MIllion plus 12 of them were resales in the Aston Martin Building, and we dove deeper and found that of the 19 Closed Sales from $1-$3million, 11 of them were from $1-$2-Million these were in different buildings, while 8 of them were from $2-$3-Million and they all were in the same building, The Aston Martin.
From the $3-$5-Million out of the 5 Sales, 3 were from Aston Martin, and the 1 sale above $5-Million was also Aston Martin, all of these closing at around $1,100-$1,300/sqft . We dove deeper into the #'s as we kept seeing the same building in the higher end. Speaks great for the building, and lets just hope it continues. Now we compare the 3rd Quarter to the previous 2 Quarters to see if we can spot any trends... All key indicators for the first 3 Quarters are in a close range including pricing, seems like the market is stuck. We do need to see sales pick up though in order to bring down Months of Supply which is at 23 Months, almost 2 years of inventory.
If you are a Seller in Downtown Miami, Inventory levels are high and sales activity is slow so your best chance to sell is from Day 1. We suggest to price your condo a bit below the market to be able to attract as much attention as possible right from the start, and also please know that if your condo is not in turnkey condition you will have to discount it even further to get it sold or update it before listing.
For Buyers - the data here points to a Buyers market, however keep in mind that with Condos you have to go building by building as one may have a lot up for sale but the one next door may not. Interest rates just moved below 6.5% which is a great help to you.. In summary, the #'s for the 3rd Quarter in Downtown Miami are not good. Inventory levels remain high, and the # of closed sales is too low, keeping Months of Supply extremely high, however pricing seems to be holding as the market seems stuck.
These are all typical signs of what happens in a correction as the market is trying to find its new base level. One area of concern we see is the market above $3-million, there seems to be a slow down in the condo market as we saw by the #'s so please take note. As we start the 4th Quarter and interest rates have moved to below 6.5% we need to see if this jumpstarts the market to help clear some inventory.
As I start my 20th year in the Miami real estate market I have seen a lot of different markets and can tell you this is not doom and gloom, but this is exactly what happens in a correction, you just have to know how to navigate thru it and be patient, so please make sure to work with a professional that can guide you through.
We thank you for watching, and We'll see you soon.