Miami Is Drowning In Luxury Condos. Market Has 4-Year Supply

Real Estate Report Shows Miami Is Drowning In Luxury Condos. Market Has 4-Year Supply Of Luxury Condos.

The bubble has finally popped on the Miami luxury condo market. Condo Vultures is reporting Miami-Dade County has a 4-year supply of luxury condos on the market right now.

Condo Vultures Realty states there are nearly 2,800 units are on the market in Miami asking at least $1 million. Only 681 luxury units sold in the county in 2017 translates as a rate of about 57 units a month.

Six months of supply of units generally makes for a balanced market. Anything over that suggests a buyer’s market. However, a 4-year supply means developers are drowning in inventory.

Condo Vultures sounded alarms to developers and to real estate pros back in August. MFI-Miami has also seen an uptick in foreclosure activity on the South Florida luxury market as well.

Condo Vultures also reports that only about 152 luxury condos are under contract for an average asking price of more than $3.3 million.

The average closing price in 2017 was less than $2.4 million or about $910 per square foot. This is 28% lower than the current average asking price.

There are nearly 47,500 units in the development pipeline in South Florida. This includes projects that have been proposed or are under construction in the three-county metro area east of I-95.

Comments

Post a Comment

Popular posts from this blog

Amateur Home Flippers Get Harsh Wake Up Call

Image
Amateur Home Flippers Get Harsh Wake Up Call As They Learn As It’s Not As Easy As They Show On TV A new generation of amateur home flippers is getting caught with their pants down.  The last generation of amateur home flippers thought they could make millions after watching four or five episodes of  The Apprentice . These clueless and wannabe Donald Trumps made up nearly 50% of the foreclosures in Florida after the crash. This latest generation of amateur home flippers has emerged  thanks to HGTV . However, home flipping isn’t as easy as it appears on TV.  Prashant Gopal at Bloomberg reports: Many newbie investors are encountering their first slowdown and facing losses from houses that take too long to sell. Meanwhile, they face steep payments on a kind of high-interest debt—known as ‘hard money’ loans—that helped power the boom. Property flips made up 6.5% of U.S. sales in the fourth quarter of 2018.  Read more at MFI-Miami
Read more

Deutsche Bank Plans To Foreclose On Trump Real Estate

Image
  Deutsche Bank Plans To Foreclose On Trump Organization Properties If They Can’t Dump Trump’s $340 Million Debt Deutsche Bank plans to end the bank’s relationship with the Trump Organization and Donald Trump after the U.S. elections. The Trump Organization owes the bank about $340 million. The loans are against Trump’s golf course in Miami and hotels in Washington and Chicago. Deutsche Bank gave the Trump Organization loans that have Trump paying only interest on the loans so far. The entire principal is outstanding on two of the three loans. The loans come due in 2023 and 2024. The three loans against Trump’s properties and start coming due in two years. The loan payments are current on payments and personally guaranteed by the president. Read More At MFI-Miami
Read more

Is Mark Stopa Going To Prison? Inquiring Minds Want To Know!

Image
  The FDLE And FBI Are Wrapping Up Their Investigation Into Mark Stopa’s Alleged Equity Skimming Scheme. Is Mark Stopa Going To Prison? Rumors are running rampant in the Tampa/St. Petersburg area about Mark Stopa going to prison. MFI-Miami has learned from multiple sources that the criminal investigation into Mark Stopa’s alleged equity scam is wrapping up. So, the million-dollar question is, is Mark Stopa going to prison and for how long? No one is saying how long he could be going to prison. A jury will have to decide that. It also depends on what federal and state prosecutors put in the indictment(s). Yes, sources are also saying the indictments are coming sooner than later. We can expect to see them by the end of the year.  Read More At MFI-Miami
Read more