South Florida condos are still a relative bargain — and it’s likely to remain that way
South Florida condo buyers remain in the driver’s seat, despite a rise in the number of condo sales.
The number of sales rose 20% between the second quarter — when the region was just emerging from lockdown — and the third. Still, prices are likely to remain flat, thanks to an oversupply.
Those findings come from the Related ISG Miami Q3 report release Wednesday.
“It’s still a buyer’s market for condos and it’s going to stay that way for another six months,” said Craig Studnicky, president of Related ISG. “Single-family homes are closing at the listing price or above. Eventually, that’s going to influence buyers to look at condos.”
In Miami-Dade, the median price of a condo was $265,000 in August, according to the Miami Association of Realtors — a price that has remained flat throughout the summer. In Broward, the median was $199,000. In both counties, the median price for a single-family home is far higher — $416,000.
Buyers include local empty nesters and baby boomers, and buyers from Puerto Rico, Mexico, Colombia and the Dominican Republic, Studnicky said.
Condo sales constituted 35% of all residential transactions in Miami-Dade, Broward, and Palm Beach during the third quarter 2020 — up from 15% of total transactions during the second quarter. Both quarters showed a marked decrease from the first quarter of 2020, when they constituted 50% of all sales.
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Related ISG researchers compiled data from the Multiple Listing Service for existing single-family homes and condos at all price points in the Tri-County area.
Social distancing is still driving more interest to the single-family home market, Studnicky said, especially for those relocating from the northeast. Single-family homes constituted 85% of all transactions during the second quarter and 65% in the third quarter, according to the report.
“It makes common sense that if you are concerned about social distancing and you want to decide who comes in and out of your home, a house is the easiest product,” Studnicky said.
