Miami condos are finding their buyers – lots of them!
Miami's latest building boom is creating 22,000 condominium units in the city's urban core, more than double the number built in the past 40 years. But a long-standing question remains: How long will it take for all the condos to actually sell?
The answer is astounding: 70 percent have found a buyer, according to a new official study by a local real estate consulting firm. So far, 17,299 condos have been delivered with 12,169 closed at an average price of $405,966 per unit, states the report. It amounts to a sales total of nearly $5 billion.
By year's end, 3,999 units are set to hit the market. Another 1,439 is expected to follow early next year.
The sales have been better than many observers expected for a downtown area held out by some as ground zero for speculation and excess. And it underlines Miami's ongoing urban revitalization, fueled by people, builders and investors.
South Florida developers have to be excited by the fact that more than two out of three downtown condo units have closed successfully.
Additional condos hitting the market in the coming months are facing still tighter credit conditions, and consumers are increasingly cash-strapped. Existing home prices came down due to an outsized inventory of unsold homes throughout South Florida - sales, however, have picked up in recent months – as a matter of fact by as much as 24% in September and the average condo is still worth more than just only 5 years ago.