The Miami condo market was a fiasco when the housing industry bottomed out in 2007, but it didn't take developers long to get right back to it in 2011 when global markets picked up. Now, it's starting to look like th market has come full circle, with condo inventory piling up and investors looking to sell again.
According to Prashant Gobal in a piece for Bloomberg Businessweek, South American buyers who entered the Miami condo market after the crash are looking to sell, adding inventory to a market with nine new towers completed since 2013 and another 8,000 units under construction.
Investors have much more at stake than the speculators who walked away from deals in last decade’s crash and left the market with thousands of unsold homes. In the latest construction boom, projects required cash deposits of as much as 60 percent, and contracts had stiff cancellation penalties.
Because owners of condos in new towers signed contracts over the course of a couple years, it’s difficult to know how many made purchases at prices above today’s values.
Of 14 new Miami towers from downtown to Sunny Isles, the share of resale listings ranged from about 7 percent at MyBrickell tower to about 40 percent at 400 Sunny Isles, according to a report this month by Andrew Stearns, founder of StatFunding.com, which provides residential mortgages for foreign nationals. A healthy building should have no more than about 10 percent of its units up for resale at any given time