Miami beach is known for its phenomenal white sands, stunning beach, luxury resorts and high-end spas. It’s no wonder it’s a tropical paradise for so many A-list movie stars and top-tier athletes.
But that isn’t enough to get condos sold, according to Candace Taylor for The Wall Street Journal. It’s high end real-estate market has slowed, with condo sales in Miami Beach decreasing by 24$ over the past four years.
The condo craze began in the early 2000s, Taylor reported. The market imploded during the financial crisis, but Latin American buyers – along with buyers from Europe and America – brought it back to life post-recession.
But what were once strong South American economies are now suffering, and Latin American buyers have less buying power in the US, according to Taylor. Their disappearance isn’t the only factor driving the abundance of empty condos – the threat of rising sea levels and the preference for large houses are also shaping the trend, she said.
New-development condos also emerged onto the market as current condo owners began to sell, some encouraged by the strong value of the US dollar – creating the perfect recipe for a surplus. Miami’s Sunny Isles neighborhood is estimated to have about 17 years of inventory of condos priced at $5 million-plus, Taylor reported.
With plenty of options and the advantage of negotiating discounts, buyers aren’t in a rush to close, Taylor said.
And with the Canadian dollar rallying to 76 cents last week, and with TD Securities senior FX strategist Mazen Issa predicting the loonie could hit 80 cents to the greenback, this might be a once in a decade opportunity to pick-up some prime property overlooking one of the United States most desirable beaches.
