Home and condo sales in South Florida have been declining for several months, with slower price growth than seen previously. These trends are leading some observers to suggest that parts of the region are moving toward a buyer’s market. While ultra-high-end properties are not immune, most of the activity is concentrated outside that segment.
Price reductions are now common, ranging from $10,000 to $70,000 for typical homes and up to $5 million or $6 million for more expensive listings. Price increases are rare by comparison. Sellers may not always be losing money relative to their original purchase prices but are lowering expectations as properties spend more time on the market.
One listing agent commented: “Make an offer, you never know what could happen,” after a property received a $10,000 price cut when it was deemed out of reach by a potential buyer.
According to a Redfin report released this summer, homebuyers in some markets have been increasingly backing out of purchases due to greater availability of options. The report found that over 21 percent of pending home purchases were canceled in July in Fort Lauderdale—one of the highest rates among major U.S. cities—and about 17 percent of signed contracts were canceled in Miami during the same month, matching last year’s figure.
The condo market offers buyers even more choices as sellers look to offload units amid concerns about special assessments for repairs and maintenance. Many condo associations have increased dues or instituted new fees to build financial reserves. High monthly costs or uncertainty about future expenses have deterred some buyers from certain buildings.
In recent residential transactions, Dr. Nicole Martin—a former “Real Housewives of Miami” star—and her fiancé Anthony Lopez purchased a seven-bedroom home at 33 Arvida Parkway for $34 million, representing a 28 percent discount from its initial asking price of $47 million. The seller was real estate investor Rafael Perez.
On the commercial side, Waterton Residential sold District West Gables—a 427-unit apartment complex located at 2001 and 2101 Ludlam Road/Southwest 67th Avenue in West Miami—for $111 million to Federal Capital Partners.
Pedro Adrian, founder of Adrian Homes, and his wife Adria Adrian listed their waterfront mansion on Palm Island in Miami Beach for $59 million. The five-bedroom house at 145 Palm Avenue sits on a 1.4-acre lot with an adjacent tennis court property at 149 Palm Avenue; both parcels were acquired by the Adrians decades ago for much lower sums.
Public school enrollment is also down across Florida’s largest counties: Miami-Dade County saw student numbers drop by approximately 13,000; Broward lost around 11,000 students; and Orange County anticipated a decline of about 7,000 students according to budget planners. Jose Dotres—Miami-Dade County Public Schools superintendent—attributed these declines primarily to fewer immigrant students entering schools, lower birth rates and higher living costs.
“What we’re thinking about: What are the weakest links in West Palm Beach’s new development condo pipeline? Send me a note at kk@therealdeal.com.”
— Research by Mary Diduch
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