The Continuum condo in South of Fifth – Is it time to sell your unit?
Increasing inventory and stagnating prices – After a few tremendously prosperous years, the Continuum tower seems to have reached its peak!
This blog was updated on January 7th, 2016
Besides living in the Continuum condo, I follow this building very closely for many of my clients and I’ve seen some signs of stagnation.
The Average Sales Prices at Continuum South of Fifth in the Last Years
As can be seen from the table below, Continuum prices have increased significantly over the years with the South tower growing faster than the North tower.
Looking at 2015, the South Tower at Continuum showed a very moderate growth of 2%, compared to 43% in 2014 and 16.6% in 2013. The North Tower has been more stable over the years with a 8.3% increase in value in 2015 compared to 12.9% in 2014 and 8,4% in 2013.
The sales prices vs. the sales prices per Sq.Ft in the North and the South tower of Continuum.
When we consider the months of inventory, which basically tells us the status of the demand vs. supply of a certain market we see that the inventory moved up from a neutral or balanced market in 2014 to a buyer’s market in 2015. A buyer’s market indicated that there is more supply than demand, which gives a competitive advantage to buyers.
Rules of thumb for the months of inventory
♦ 6 Months or less – A seller’s market
♦ 6- 9 Months – A balanced market
♦ 9 Months or more – A buyer’s market
As mentioned before, there is a large amount of pre-construction condos entering the Miami market. Not just in the South of Fifth area, but also in the rest of Miami Beach and other exclusive waterfront neighborhoods such as Sunny Isles (Turnberry Ocean Club, Armani Residences, Porsche Design Tower), Miami Beach (Eighty Seven Park) and Fisher Island (Palazzo del Sol). These new condos increase the market’s supply and generally speaking attract more attention because the building and the units are newer, often more luxurious and offer the latest in amenities.
Although the acreage of amenities at Continuum is rather unique, the maintenance costs have increased significantly. The increase on a 1,600 Sq.Ft, 2-bedroom unit has been 25%. That is a rather significant change.
There is a large amount of inventory at this moment and some units have been listed for quite some time. With an oversupply of units, prices need to come down in order to be sold. Even though prices are not increasing like they did before, there is still growth and South of Fifth still is one of the most desirable places to live in Miami. As in all markets, there is always a good deal to be found and great investment opportunities can be seen in all markets.
We cannot foresee the future but sales prices have shown us that the market is slowing down. It did not stop growing, but it definitely sees more moderate rates of growth than a few years ago. For those who are thinking to sell, this might be a good time as prices seem to have peaked and inventory levels are increasing, which is normally a strong indicator for decreasing prices in the future (more supply than demand).
Better safe than sorry
We believe it’s very important to be conscious of these type of trends earlier rather than later to maximize the profit in the actual market conditions. Many investors do not monitor the market and are not aware of market peaks. Rather than letting your unit sit on the market for a long time, we like to advise our clients on the right timing whether this might be to sell, to buy or to hold on to a property.
This is how we will market and sell your property
Would you consider selling your Continuum unit?
Contact me today for a more personalized approach and/or a free comparative market research
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