Buyer's Market for South Florida Condos

By Denise & Melissa  Stewart

Condo Market in South Florida has Shifted

There has been a shift in the Condo Market in South Florida. Whether you are searching for condos in Miami, Fort Lauderdale or Boca Raton, the shift is in favor of Buyers, and it is a real economic shift. No longer are there multiple offers on condos for sale, but rather there seems to be multiple price adjustments. These price adjustments are very beneficial if you are a buyer.

Compared to  2 years ago, prices have slowly increased a little, but the number of units listed and the Days On the Market (DOM) have increased. Additionally, the Sold Price/Original Listing Price % has also slipped to a low of 94% in a lot of areas which means that Sellers are having to wait longer to sell, and they are getting an average of 6% less than the asking price. These are all indications of a  strong Buyer’s Marker.

Buyer's Market means Sellers are Motivated to Sell

What does this mean to you as a Buyer? Basically this means that if you are in the market for a new or used condo in a city like Pompano Beach, you will have choices of several units in your price range, or you will have units with Sellers that are very motivated because their condos have been on the market for extended periods of time. The average Days On Market for condos in the lower price ranges of up to $250,000, have increased slightly since 2014.  The average DOM for high end condos of more than $1 Million has more than doubled since 2014. What this means is that there are a lot of high end sellers that are either very motivated, or they are taking their condos off the market for the foreseeable future.

What does this mean to you as a Seller? The choice is very simple. As a seller in a buyer’s market, you will be faced with the choice of taking less, or sitting on your property. The other alternatives are offering incentives that others are not offering.  These incentives include offering a great deal on the furniture, or possibly offering to finance the sale of the Condo. Another possibility is offering to lease option the condo. This is where you will agree to lease your condo to a potential buyer, and also agree in advance that you will sell the condo at an agreed upon price and terms. There are some risks associated with a lease/option, but you receive income in the interim,  and if you get a large enough up front deposit, it is unlikely that your tenant will not purchase. This type of agreement needs to be prepared, or at least reviewed by your attorney, to insure that you are protected. 

If you have any questions about condos in the South Florida area, please contact Denise Stewart at 954 881 9148 or denise@condo.net.