With the current pace & trend of the real estate market, sellers have come to terms with what it takes to get their property(s) sold in this strong Buyer’s market by slashing their list prices. With the ultimate condo selection rising to ~40 months of inventory, buyers are taking their time to cherry-pick the sweetest deals. Sellers have finally realized the decision & need to buy is based first and foremost on PRICE, then features such as the brand new kitchen and baths used from boom equity. In some cases, prices have dropped 30-40% while supply, time on the market, and motivations rise for today’s sellers. With 2 years of pricing resistance, today’s serious seller is pricing not on smoke & mirrors but on the latest closed & active sales data. The over-speculation of 2003-2005 has caused today’s sellers to be upside down while other sellers have 20% wiggle room to play and test the market.
On the flip side, we find the luxury homes and condos in prime areas of South Beach have held much stronger than those in areas of less demand, such as Broward County. Records are and have been set even in a buyer’s market. In luxury buildings such as Il Villaggio, recent sales show appreciation while supply remains low. In 2007, a 1 bedroom at Il Villaggio closed at $1,049M (110 DOM). There is a lot of foreign wealth coming into Miami. Today’s buyers are taking advantage of the weak dollar, excess supply, and exceptional interest rates…many of them foreign investors from Russia, Europe, and Canada. For further information, contact Ashton Coleman at MiamiDreamRealty.
This post was inspired by Daily Business Review.