Miami-Dade County Luxury Condos In Buyers Market With 14 Months Of Supply

Miami-Dade County has nearly 14 months of luxury condo supply – a minimum price of $1 million per unit – available for purchase at the start of the South Florida Winter Buying Season that generally stretches from November through April, according to an analysis by CondoVulturesRealty.com.

In the first nine months of 2023, buyers purchased an average of nearly 150 units per month for a total of about 1,347 units between January and September.

Based on the active listings in the Multiple Listing Service – a database used by Realtors to market condos – the market is currently in a buyers market based on the supply available for purchase.

Generally, six months of supply is considered equilibrium for the housing market. Less months indicates a sellers market and more months points to a buyers market from a negotiating perspective.

Currently, the average asking price for a condo is more than $3.7 million per unit compared to an average sales price of nearly $2.6 million per unit. Pending sales went under contract at an average asking price of nearly $2.8 million per unit.

On a price per square foot basis, the average asking price for a condo is $1,415 psf compared to an average sales price of $1,110 psf. Pending sales went under contract at an average asking price of $1,184 psf.

To gauge buyer sentiment, it is important to focus on the Days On Market (DOM) category to better understand how purchasers are proceeding. If buyers are optimistic, the number of days an active listing is on the market should be similar or less than the average period of time for deals to date. If buyers are bearish, the DOM category will show active listings sitting on the market longer.

To gauge seller sentiment, we focus on the spread between the average asking price and the average transaction price on a per unit and per square foot basis. Generally, a spread of up to 20 percent suggests that a seller is willing to negotiate to complete a deal. Anything greater than 20 percent suggests that sellers are overly bullish on their prospects of selling their units at a premium.

This information is believed to be accurate and complete but cannot be guaranteed or warranted. For more information, please call 305.865.5859 or visit CondoVulturesRealty.com

For more information, please visit CondoVultures.com and sign up for our Substack newsletter