By: Ismael Rodriguez
In Miami-Dade County, the ample 57-month supply of luxury condos—defined as those priced at more than $1 million— continued to steadily grow, standing at 2,549 by the end of last year, according to a new market report from EWM Realty International.
The firm introduced its report at a 2017 Real Estate Market Outlook conference at the Hilton in downtown Miami, where it spoke on the luxury market in Miami-Dade and Broward counties, plus gave insight on the current economy and transportation.
“We have a pretty good indication of what is going to happen in pricing down the road,” Ron Shuffield, CEO of EWM Realty International, told the press. “There will be pressure to reduce asking prices. We have had a lot of success in the last six months or so with sellers coming to the realization that they need to reduce prices.”
The indicating factors based on inventory and oversupply in condos only applies to the high-end market, though, while homes priced under $300,000 are rapidly selling in both counties, limiting its supply, according to what Shuffield told the press.
And yet, many developers continue to build new condos in Miami-Dade with a main focus on the luxury market, pushing the prices per square foot in high-end areas like Brickell, Miami Beach, Edgewater and Sunny Isles Beach.
As a result, the continuance of luxury construction will further increase the inventory and affect prices on neighborhoods like Brickell, for example, which already has a 36-month supply, according to Shuffield.
The report also added that a major factor for the luxury sales decline is the exchange rate of the U.S. dollar, reducing the buying power for investors from major foreign countries like Brazil, Argentina, Russia and Venezuela.
The good news is that a current growth in the U.S. economy has also led to an influx in domestic migration to Florida, bringing more buyers than before, according to what J. Antonio Villamil, principal of the Washington Economics Group, told the press.