Everywhere I go people ask, “what’s going on with the condo market in South Beach?” Here’s the numbers followed with a bit of analysis for September, and check out the data from the above link.
16 Condo sales were reported through the multiple listing service from September 1 through 30; 11 units went pending during this timeframe (meaning they have ratified contracts, not simply offers); and 41 units went on the market during this month.
The pending number is followed closely in conjuction with the new actives since pendings measure just how quickly the market is currently absorbing units. With 11 pendings in September that means the 41 new units coming on market represent almost 4 months of inventory.
Looking back year over year for September of 2005 there were 22 condo sales in the area, double the sales in September 2006, and there were also 22 sales in October 2005.
These trends reflect the slowing sales of existing housing. New buildings are not reflected in these numbers so the new construction sales at The Lansing, The Watermark, The Beacon and Signature Properties buildings don’t impact these tallies. On my last visit to The Watermark almost two weeks ago they had 12 units left and the developer was offering a higher commission to brokers now and was “flexible” on pricing which speaks of a slowing market in the price range of their last units.
Price reductions were the name of the game among the sold condos in September, with 6 reported selling below listing price. Interestingly the 2 lofts sold in September sold quickly (16 days and 23 days) and for asking.
Price range is another story among the numbers. Let’s look at properties over $1 million: 3 sold in September, 1 is pending, and there are 17 new actives (5 of these in The Brannan complex) with 3 of them at $2 million. 4 solds were in the $600,000 range and 5 in the $700,000 range. In September 2005 9 of the solds were between $1 million and $1.525 million.
I’ll be looking at specific buildings over the next week.