Summer Condo Sales Drop To Great Recession Levels In South Florida
Summer Condo Sales Drop To Great Recession Levels In South Florida
In this latest issue of the Miami Condo Market Intelligence Report™, we examine the recently completed South Florida Summer Buying Season for insight into the 2025 market.
Volume 2024, Issue 41 (Subscribe here)
This week’s Miami Condo Market Intelligence Report™ newsletter examines a dramatic slowdown in the South Florida condo market during the recently completed Summer Buying Season.
The Summer Buying Season traditionally extends from May through October when visitors and locals, alike, flee the tricounty South Florida region of Miami-Dade, Broward and Palm Beach to avoid the humidity, hurricane warnings and limited number of events.
As the busier Winter Buying Season - which extends from November through April - begins to ramp up for the hordes of tourists expected to visit, there are lessons to be learned from the summer condo market trends for buyers, sellers and real estate professionals, alike, in South Florida.
The summer trends are especially important this Winter Buying Season as Florida’s condo market is undergoing dramatic changes as a result of the implementation of new requirements in the aftermath of the Surfside condo collapse.
Beginning in January, condo associations in Florida will be required to start collecting money from unit owners to place into reserve accounts - based on the results of Structural Integrity Reserve Studies (SIRS) conducted by experts - that will be used exclusively to fix, maintain and improve the structural integrity of residential buildings that are at least three-stories tall.
People are dubbing this moment as the 2025 Florida Condo Association Financial Cliff as it is expected to result in significantly higher costs for unit owners. News reports are already chronicling condo owners selling their units at deep discounts ahead of the 2025 deadline.
Buyers - who are seeing condo asking prices fall - are probably thinking this might be the time to make a purchase.
Conversely, sellers are probably worrying that they need to unload now as prices could be lower in the future.
For real estate professionals, they are probably wrestling with whether or not it is worth their time and the marketing expense to accept condo listings that are too richly priced and never going to transact.
This is a push-pull scenario that many are facing in early November now that the U.S. elections are over.
We did a deep dive into the statistics to figure out the latest trends for condos, luxury condos, distressed condos and rentals in South Florida.
As part of our research, we pulled the statistics going as far back as 2007 before the symbolic start of the Great Recession with the failure of the investment bank Lehman Brothers.
Here are the key findings:
Condo transactions plummeted by 22 percent to levels not seen since 2009;
Condo prices dropped for the first time since the pandemic, falling by two percent to nearly $521,300 per unit;
Luxury condo transactions have fallen for the third consecutive summer;
Luxury condo prices remained stuck at about $2.4 million per unit for the third straight year;
Leasing activity has flatlined to 0.1 percent growth on a year-over-year basis;
Median rental rates dropped by about 12 percent - or $300 - to $2,300 per month;
Bank-owned condo listings (also known as Real Estate Owned or REO) are limited with only 126 units for sale;
Bank-owned condos traded for about $306,750 per unit;
Shortsale condo listings are rare with only 30 units for sale;
And shortsale condos traded for an average price of $248,825 per unit.
These are the macro points but we would encourage you to check out our reports that each feature five different charts that focus on the number of transactions, the price per unit, the price per square foot, the Days On Market and the overall statistics going back nearly two decades.
If seeing is believing, below you will find links to our reports. Please note, you will not find any reports and accompanying charts on the distressed condo market as we decided the lack of activity did not warrant the effort at this time.
We are certain our research will give you a first-mover advantage in strategizing what to do in the upcoming 2024-25 Winter Buying Season in South Florida.
It is a lot of information but we are confident our reports will assist you to better understand current market conditions in South Florida.
It is worth noting that we are sharing a portion of our research for free with subscribers to our newsletter and readers of MiamiCondo.Club.
If you want access to all of our published information and charts, we would encourage you to join the Miami Condo Investing Club™.
The objective of the Club is to create a community that shares realtime, actionable information on the latest real estate trends, opportunities and service providers in South Florida.
The Club is ideally suited for Do-It-Yourself (DIY) condo buyers who can rely on our latest statistics, expert opinions and access to consulting services.
Additionally, we encourage you to listen or view our podcast wherever you get podcasts. The podcast is available on Apple, Spotify and/or YouTube.
As a reminder, we are always available for consulting, expert witness work and buyside brokerage services just as we have been since 2006.
If you are seeking information on condo resales in South Florida, please visit CondoVulturesRealty.com or call the office at 305.865.5859.
— Peter Zalewski, Founder of the Miami Condo Investing Club™
Story 1
South Florida Condo Sales Plummet 22% In 2024 Summer Buying Season
A review of the South Florida condo statistics shows about 13,542 units traded between May and October of 2024. This is the fewest condo sales since the 2009 season during the Great Recession.
Story 2
Luxury Condo Sales Fall 3rd Straight Summer In South Florida
A review of the South Florida condo sales statistics shows less than 1,380 luxury units traded between May and October 2024 in this last Summer Buying Season.
Story 3
Has South Florida's Residential Rental Market Peaked?
A review of the South Florida rental statistics shows residential leasing activity flatlined on a year-over-year basis during the 2024 Summer Buying Season.
Story 4
Understanding Summer Condo Downturn In South Florida Focus Of Nov. 13 Meeting
Expert Peter Zalewski of the Miami Condo Market Investing Club™ will host a 75-minute online meeting on Wednesday, Nov. 13, 2024, to discuss the 22 percent drop in summer sales.
Story 5
Condo Investing Meetup On Nov. 19 In Greater Downtown Miami
You are invited to the fourth Meetup event of the Miami Condo Investing Club™ at 5.30 pm Tuesday, Nov. 19, in Greater Downtown Miami. This is the first of the 2024-25 South Florida Winter Buying Season.
This information is provided for general informational purposes only, based on research, personal experience and interviews. It should not be considered legal advice, as we are not attorneys. While believed to be accurate and complete, this information is provided "as is" without warranty or guarantee of any kind.
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