The Greater Downtown Miami area is facing five years of excess luxury condo supply, according to a new report by Condo Vultures Realty.
Nearly 560 luxury units are on the market now for $1 million or more in Brickell, Edgewater, and Downtown Miami altogether. About eight of these high-end units sold per month in the first half of 2018; at this rate, about 70 months of inventory remain. (One year ago, there were 434 luxury units on the market, with 55.5 months of excess inventory and sales at the same rate of eight per month.)
Average asking prices have risen from $600 to $641 per square foot from 2017 to 2018, and the average number of days luxury condo units spend on the market has risen from 150 in August 2017 to 187 days in August 2018.
The jump in pricing and inventory is due in part to new projects coming online, says Condo Vultures’ Peter Zalewski. 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.
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