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Nearly 190 Distressed Miami-Dade County Condos Currently Listed For Sale Amidst COVID-19 Pandemic

Less Than 110 Distressed Condos Traded In Miami-Dade County In Q1 2020

DOWNTOWN MIAMI (May 8, 2020) - Nearly 190 distressed condo units - both shortsales and real estate owned (REO) by lenders - are formally listed for sale in the South Florida county of Miami-Dade amidst the COVID-19 pandemic, according to a new report from Condo Vultures® Realty LLC.

Based on distressed condo sales of less than 36 units monthly in the first three months of 2020, Miami-Dade County now has more than a 5-month supply of REO and shortsale units available for purchase in the tricounty South Florida region of Miami-Dade, Broward and Palm Beach at the traditional start of the 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.

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 until further notice - the Florida economy was thought to be in recession like much of the United States. 

This being said, about 103 distressed condo units are currently under contract - or pending - and waiting to transact in Miami-Dade County. 

On the REO front, the average asking price of the 141 Miami-Dade County REO condos currently listed for sale is nearly $373,730 per unit. This works out to an average asking price of about $260 per square foot, according to the data compiled by CondoVulturesRealty.com.

In the first three months of 2020, the average transaction price of a Miami-Dade County REO condo was more than $203,250 or about $192 per square foot.

This means the current asking price of a Miami-Dade County REO condo listed for sale is nearly 84 percent higher than the average transaction price achieved on a per-unit basis and more than 35 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 lenders that were able to unload their REO units needed about 49 days to transact a Miami-Dade County condo listed for sale. The current Days-On-The-Market average for a Miami-Dade County REO condo listed for sale is about 86, according to the statistics.

On the shortsale front, the average asking price of the 46 Miami-Dade County shortsale condos currently listed for sale is about $584,126 per unit. This works out to an average asking price of about $314 per square foot, according to the data compiled by CondoVulturesRealty.com.

In the first three months of 2020, the average transaction price of a Miami-Dade County shortsale condo was about $206,821 or about $206 per square foot.

This means the current asking price of a Miami-Dade County shortsale condo listed for sale is more than 182 percent higher than the average transaction price achieved on a per-unit basis and more than 52 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 shortsale units needed about 129 days to transact a Miami-Dade County condo listed for sale. The current Days-On-The-Market average for a Miami-Dade County shortsale condo listed for sale is about 136, 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.