What is 2018 bringing to Continuum South Beach?
The 2018 Condo Forecast for Continuum South Beach
The David Siddons Group is known for his constant and up-to-date market analysis and Miami real estate market reports. We spend as much time selling real estate as we spend analyzing the different markets, identifying trends and forecasting performances, all of it with the purpose to give our audience a good overview of whatever investment, sale or purchase they are considering.
In our most recent blog we have analyzed the South of Fifth condo market in detail, looking at trends for the whole neighborhood and nailed it down to specific buildings. In this article our focus is one of the most desired condos in SoFi; Continuum South Beach. (Continuum North Tower and Continuum South Tower)
Even after the latest completion of some of the most exclusive and top priced boutique condos in the neighborhood, there is no doubt that Continuum stands as a real estate cornerstone. No other complex offers the beach resort lifestyle with full amenities and a tremendous location.
Prices and Price Changes at Continuum, South of Fifth
It seems that the Continuum market is picking up again after the necessary price corrections in the condo. The graph above shows you the average sales prices per SF and we can see the downward curve for both the North and South Tower since the peak of the market in 2015. For us, who carefully look at each and every sale in the building (and oftentimes know about the negotiation behind many of those) it is not just the average sales price that has dropped. Nowadays, buyers are far more conscious of market performances and not as willing to pay over market price. In 2018, the new price levels are creating a bigger pool of demand, which resulted in more activity in the condo. We see more deals happening again as the market has stabilized.
Comparing Continuum Prices with other South of Fifth Condos
Months of Inventory at Continuum
What is even more important is the increase in the months of inventory, which is a crucial indicator to forecast this year’s performance. Months of inventory looks at how fast the market will absorb current inventory under current market conditions.
Inflated prices as well as the new construction of exclusive condos like 321 Ocean, Glass, One Ocean, Louver House and 300 Collins, has definitely contributed to offset the sales of Continuum. However we want to add that, while the buyer in pre-construction can be sold the mystery of the unknown when buying on paper, now that everything is built and tangible in the neighborhood, the strong buildings like Continuum are likely to win the competition on several points.
What does sellers or buyers market mean?
- A sellers market (12 or less months in the Luxury $1M+ market) means that there is more demand than supply, mostly leading to an increase in prices and providing sellers with an advantage.
- A buyers market (8 or less months in the Luxury $1M+ market) means that there is more supply than demand. Prices are likely to decrease in order to absorb the supply.
- A neutral market provides for a perfect balance in which neither party has an advantage and prices are likely to remain stable
The Continuum Condo Market in 2018
Our conclusion is that we are seeing more stability in the market again. Inventory is lower and we have noticed more movement in 2018. There has always been a large demand for condos like Continuum just not at the inflated prices we saw in the last few years. It seems that after a year of price adjustments we are seeing the buyers come in again with more confidence. The most realistic sellers are adjusting the price of their units, and that is why we keep on having a good pace of sales compared to other buildings that have had almost no sales in the last 12 months.