Miami Realtor Presents: Downtown Miami Condo Glut Creates Buying Opportunities
In Downtown Miami, more and more condominiums are facing trouble as the number of units constructed ballooned during the last couple of years. It used to be that demand kept up with supply, with
Miami Realtors selling everything that came on to the market. At the current moment there are over 1,200 units in the Downtown Miami are on the market and only 220 units sold during the first 6 months of 2009.
Why so many unsold properties?
Several factors contributed to this unfortunate situation. The Real Estate boom encouraged developers to construct more buildings. Buyers for the most part were not end users that would eventually move in but speculators that were hoping to flip their purchase. Of the 1,200 units on the market, only 18 are Bank Owned condos but a whopping 335 are listed as
Short Sales or Pre-Foreclosure. At the current pace, there are 3 to 4 years worth of supply available with possible a growing number of
Foreclosures or
REO properties available in the future.
Surplus of units means attractive prices for buyers.
But the market will recover sooner or later, and for this to happen, the surplus of
Pre-Foreclosures and Foreclosures must be sold for less than their market value. Condominium prices have dipped enough that eager buyers can get or rent properties at a discount. With Miami’s dynamic economy, it is only a matter of time until the market eventually recovers and
Realtors will see fewer units on
Miami Foreclosure Listings.
