The Quarterly Downtown Miami Condo Market Update

The 90-day Downtown Miami Condo Market Update

Downtown Miami Condo Market Update for September 2022. Welcome to our 90-Day Downtown Condo Market Update. We will update this information every quarter so you can follow the market and discover trends.

Miami Downtown Statistics and Specific Sales

A Buyer’s Market

Throughout the entire Urban Core, Downtown Miami is the neighborhood that has the highest saturation of inventory. In the last three months, this sub-market stacked up over twenty-five months of inventory, which is a 258% increase compared to where the market was a year ago. Typically, we refer to this inventory level as a Buyer’s Market. Anything below six months is a Seller’s Market, and if it’s more than nine months, it is a Buyer’s Market.

The Different Price Brackets

Condos priced between $1M to $3M were most affected. This price bracket currently holds about twenty months of inventory, a 246% increase from where it was a year ago. The total sales fell by 66%, while the number of new listings has increased by 131% since last year. If the number of new listings continues to increase as the absorption rate decreases, this will saturate the market and diminish the leverage condo owners previously held.

Condos priced below $1M experienced a 174% increase in inventory levels yet had a healthy absorption rate. Downtown condos priced below 1M only have 6.3 months of supply. This example shows that if inventory increases and the absorption rate increases, we have a balanced market. A balanced market has six to nine months of supply.

What does this mean for Sellers?

Other neighborhoods in the Urban Core, such as Edgewater and Midtown, also had a healthy absorption rate for condos priced below $1M. This market trend means that if you have a condo valued below 1M, you can still price it relatively aggressively, as we experienced in previous months. If you have a condo valued around $1M to $3M, you will want to price accordingly and strategically so that it does not sit on the market.

Downtown has more than 7,000+ condo and apartment units in the new-construction pipeline. If the absorption rate does not keep up with the increase in supply, it will continue to saturate the market and affect prices.