The latest signs point
to a slowdown in
The convergence of dwindling foreign capital and a bountiful inventory of luxury condominiums is grinding down South Florida’s once-robust residential real estate market. Gone are the days when buyers ran each other over to be among the first to purchase an ultra-luxurious residence in a building designed by Zaha Hadid, Norman Foster, Richard Meier and other starchitects. Listings for multi-million dollar condos are staying up longer, while price points are dropping from downtown Miami to Golden Beach.
“We currently have an oversaturation of units priced $1 million and up,” said Jack McCabe, a real estate analyst based in Broward. “Coupled with a significant drop in sales last quarter, it raises questions about the market’s strength.”
The slowdown is affecting every type of condo — whether it’s a two-bedroom rental investment or an expansive penthouse with oceanfront views. Using multiple listing service (MLS) data and real estate reports, The Real Deal analyzed the market under $10 million, breaking it into three price brackets: $500,000 to $1 million, $1 million to $5 million and $5 million to $10 million. Sales of properties in the first two price brackets have gradually declined, while sales of …
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