South Florida Faces 11-Month Supply Of Distressed Condo-Hotel Units Listed For Sale At Start Of Winter Buying Season

Condo-Hotel Units Typically Permit Short-Term Rentals For Home-Sharing Serivces Such As AirBNB 

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DOWNTOWN MIAMI (Jan. 15, 2020) - Nearly 10 distressed condo-hotel units - both shortsales and real estate owned (REO) by lenders - are formally listed for sale in the tricounty South Florida region of Miami-Dade, Broward and Palm Beach, according to a new report from Condo Vultures® Realty LLC.

Condo-hotel projects typically permit units to be rented daily, which is suitable for home-sharing services such as AirBNB. 

Based on distressed condo-hotel sales of less than one unit monthly in the first nine months of 2019, South Florida now has more than a 11-month supply of REO and shortsale condo-hotel units available for purchase in the tricounty region at the start of the Winter Buying Season, according to the report based on data from the Southeast Florida MLX 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 that one distressed condo-hotel unit is currently under contract - or pending - and waiting to transact. 

On the REO front, the asking price of the five South Florida REO condo-hotel units currently listed for sale is about $423,780. This works out to an average asking price of about $366 per square foot, according to the data compiled by CondoVulturesRealty.com.

In the first nine months of 2019, the average transaction price of a South Florida REO condo-hotel unit was less than $157,550 or about $285 per square foot.

This means the current asking price of a South Florida REO condo-hotel listed for sale is about 169 percent higher than the average transaction price achieved on a per-unit basis and about 28 percent higher than the average transaction price on a per-square-foot basis between January and September of last year.

In the first nine months of 2019, the lenders that were able to unload their REO units needed about 72 days to transact a South Florida condo-hotel listed for sale. The current Days-On-The-Market average for a South Florida REO condo-hotel unit listed for sale is about 285, according to the statistics.

On the shortsale front, the asking price of the three South Florida shortsale condo-hotels currently listed for sale is more than $458,165. This works out to an average asking price of about $366 per square foot, according to the data compiled by CondoVulturesRealty.com.

In the first nine months of 2019, no South Florida shortsale condo-hotel units transacted.

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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