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Because of many factors, real estate prices have gone up in South Florida. Therefore, condo sellers can expect some price increases by the end of 2021. This is because there is a dwindling inventory of units for sale. Despite many newcomers, the condo market in South Florida had remained flat for the past couple of years. However, the average sale price for condos has risen, and it is expected to get stronger for sellers towards the end of the year.
In the condo market in South Florida, the inventory is dwindling. There were 19,465 condos that were recently completed or under construction in eastern Miami Dade (plus Hallandale, Hollywood, and Fort Lauderdale). Out of those, only 881 (4.5%) remained unsold as of July. This is a lot less than the 1,324 units that were unsold in December of 2020. In addition, market trends project that the inventory will continue its downward trend.
Furthermore, although there are a lot of new constructions, units are selling fast. In some cases, new constructions such as Elysee in Edgewater, the Estates at Acqualina, etc, are more than 90% pre-sold. Unlike in other times, these numbers have been largely driven by domestic buyers. Due to travel restrictions due to Covid19, international buyers did not make as big of an impact within this market compared to other booms in the past.
As far as new inventory, there are seven projects due for completion this year. Furthermore, there are four more projected by 2022, and one for 2023. However, these projects are selling out fast, and inventory on existing units is also falling. Therefore, the condo market in South Florida is likely to also become a strong seller’s market.
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