Signs of a distressed preconstruction condo resale market in Miami are continuing, with StatFunding Founder Andrew Stearns’ January market report indicating “the number of condos with unsold developer units is increasing.”
Over the last three months, sales have fluttered as inventory swells and we should expect resale losses to continue with thousands of new units hitting the market in the coming quarters.
Stearns also took a snapshot of one specific condo in the 299-unit Icon Bay in Edgewater, which was completed in Summer 2015 and currently has 68 units for sale.
All resales in that development profited from July 2015 to April 2016 but all nine of the most recent sales dating back to May 2016 have incurred losses, including one unit selling for 28 percent ($190,300) under the original sale price.
“The Miami preconstruction condo resale market appears to be distressed,” Stearns writes. “As an additional 10,000+ units are completed and subsets of those units are then listed for resale over the next 24 months, the preconstruction condo resale market will likely continue to weaken.
“Unless something extremely positive and unexpected occurs which completely changes market conditions, Miami condo flippers should expect further losses on resale in the immediate future.”