Resale Inventory Dwindling, Foreseeable Future of Tight Supply

• Q3 performed differently from Q2 and Q1; over last year, inventory dropping at a fast rate
• Single family homes and condos incredibly tight inventory and trading equally
• Inventory hitting historic lows, very little in pipeline to replace in coming years 
• No near-term increases in supply, slight uptick possible; no further reduction in single family homes yet further reduction in condos leading to a tight grip
• Transaction slow in sales due to lack of choices 
• Tight inventory supply will remain for Q4 and some time to come
• Condos seller market for Q4; predicted by Q2 2022 will mirror single family home market in which contracts will be over list price and fewer contingencies 
• Edgewater continuing to grow due to great value, Q3 1 of every 4 condo sales in this neighborhood

Nearly Sold Developer Inventory, Far Out New Cycle

• Only 631 units remain of 19,465 units equaling 97% sold in the last development cycle years 2012 - 2020 which have all delivered
• Pre-construction 1,627 units 80% sold; unlike past, buyers are not investors instead true end-users not intending to resell when building delivers resulting in no predicted ‘shot in the arm’ for future new construction resale inventory
• Current new development condo cycle will deliver earliest 2026
• Pipeline of 5 pre-construction towers coming to Downtown (excluding Brickell) allowing short-term rentals signaling transformation of Downtown, construction beginning next year
• Only 8 projected towers of traditional condos allowing no short-term rentals 
• New construction buildings: 275 years 2000 - 2010 / 123 years 2012 - 2020 / 11 for 2021+

Continued Population/Growth Demand

• Demand not slowing, over last 5 years average of 475 people per day have and continue to move to South Florida due to weather, tax reform, and 70 financial and technology companies relocated headquarters or opened regional offices with more coming and many bringing families; most coming from New York and Illinois
• Need for traditional condos; not a lot of land remains for building in South Florida, although ideal for vertical builds
• Need for single family homes; resurgence of love for privacy of a house is in demand in South Florida and worldwide 
• Nov 8th U.S. reopens borders to vaccinated travelers which is expected to bring Canadian, Brazilian and European buyers back to South Florida market

Rental Stratospheric Increase

• Market tipped to rental driving up exorbitant prices

Additional Market Activity

Miami Herald 
Covid-fueled home buying spree ends in South Florida

Florida Bar post-Surfside report calls for tougher condo rules on reserves and inspections

Realtor.com
Rent Growth Now Outpaces Home Price Growth
Miami/Fort Lauderdale/West Palm Beach Overall Rent $2,432 +27% year-over-year


Contact me to advise on purchase strategy for individual or bulk condos or to discuss your search for single or multi-family