Greater Downtown Miami Luxury Condo Market Swamped With 7-Year Supply Of Units For Sale Amidst COVID-19 Pandemic

Buyers Purchased 7 Greater Downtown Miami Luxury Condos Monthly In Q1 2020

DOWNTOWN MIAMI (May 13, 2020) - Nearly 600 luxury condo units are formally listed for sale at an asking price of least $1 million each in the Greater Downtown Miami market of South Florida amidst the COVID-19 pandemic, according to a new report from Condo Vultures® Realty LLC.

Based on luxury condo sales of about seven units monthly in the first three months of 2020, Greater Downtown Miami now has nearly an 85-month supply of units available for purchase for at least $1 million each in the tricounty South Florida region of Miami-Dade, Broward and Palm Beach at the start of the traditional Summer Buying Season, according to the report based on data from the Southeast Florida MLS Matrix.

A balanced market is generally considered to have about six months of supply. More months of condo supply listed for sale suggests a buyer’s advantage and less months typically indicates a seller’s advantage in the market.

It is worth noting this report only tracks those Greater Downtown Miami condos formally listed for sale. The report does not factor in the nearly 47,750 new condo units currently in the development pipeline east of Interstate 95 in the tricounty South Florida region, according to CraneSpotters.com.

In this new COVID-19 pandemic era, numerous questions exist about how the South Florida residential real estate market will perform going forward, both in the short- and medium-term periods. After a typical start to the new year, the South Florida residential real estate market began to change dramatically at the end of the first quarter of 2020. 

When Florida Gov. Ron DeSantis declared a "state of emergency to create a pathway to obtain funding and resources to stop the spread of COVID-19" on March 9, 2020, the South Florida residential real estate market continued to function, albeit with changes for safety that included social distancing and a push for virtual tours instead of buyer actually visiting properties.  

Nearly a month later on April 3, 2020, DeSantis instituted a 30-day "statewide stay-at-home order" that effectively shut down the Florida economy but in doing so deemed residential and commercial real estate businesses "essential services," according to an industry press report.

Despite the ability to transact real estate during the "stay-at-home order," it is unclear how many buyers have been willing to view properties - either in person or virtually - in hopes of purchasing residences. It is also unclear how many sellers have opened their properties to potential buyers given the contagiousness of the COVID-19 virus. 

Once the "stay-at-home order" was finally lifted on May 4, 2020 for nearly all of the state - excluding the tricounty South Florida region of Miami-Dade, Broward and Palm Beach (which was reopened on May 11, 2020) until further notice - the Florida economy was thought to be in recession like much of the United States. 

This being said, about 12 Greater Downtown Miami luxury condo units are under contract and waiting to transact - or pending - at an average price of less than $2.4 million each or about $800 per square foot, according to the statistics. 

The average asking price of a Greater Downtown Miami luxury condo currently listed for sale is less than $2.1 million per unit. This works out to an average asking price of about $837 per square foot, according to the data compiled by CondoVulturesRealty.com.

In the first three months of 2020, the average transaction price of a Greater Downtown Miami luxury condo was nearly $3.3 million or about $814 per square foot, according to the statistics.

This means the current asking price of a Greater Downtown Miami luxury condo listed for sale is about 36 percent lower than the average transaction price achieved on a per-unit basis and less than three percent higher than the average transaction price on a per-square-foot basis between January and March of this year.

In the first quarter of 2020, the sellers who were able to unload their luxury units needed about 166 days to transact a Greater Downtown Miami luxury condo listed for sale with a minimum price of $1 million. The current Days-On-The-Market average for a Greater Downtown Miami luxury condo listed for sale is about 269, according to the statistics.

The number of Days-On-The-Market for the luxury condo units currently under contract in Greater Downtown Miami is about 138, according to the statistics. 

CondoVulturesRealty.com is a licensed Florida brokerage that specializes in assisting buyers and tenants in value-oriented condo acquisitions and leases in the tricounty region of Miami-Dade, Broward and Palm Beach.

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