Timing the Turn: Edgewater’s Condo Market Pivot | Edgewater Q1 & Q2 2023 Market Summary

Edgewater Q1 & Q2 2023 Market Summary. Edgewater Miami’s real estate landscape is experiencing dynamic shifts, offering buyers and sellers an intricate market to explore. Although the inventory levels are balanced, currently holding 6.18 months of supply, it is crucial to understand how the new construction pipeline will impact these supply levels.  The current average price per square foot is $632, a 5% decrease from 2022. A standout trend is the significant surge in transaction volume in Edgewater. This growth, exceeding 90% from the previous year, is largely attributed to new construction projects like Missoni Baia, which have recently closed. As the MLS transaction volume mirrors last year’s activity, with the slightest uptick of 2%, combined with a reduction in value, suggests the market’s is reaching a plateau.

Edgewater will be home to many new construction condos in the upcoming years, and Missoni Baia is the latest addition to the neighborhood (249 units). It is crucial to understand that Edgewater has a planned pipeline of more than 6,000 apartments and condos that will be delivered in the next few years. This surge in inventory is a pivotal factor contributing to elevated inventory levels, directly affecting the leverage sellers currently hold in the market. A significant portion of the imminent wave of new construction condos is concentrated around the $1 to $3 million range, introducing a new challenge. This surge in supply has the potential to reshape the market dynamics and potentially saturate the condos falling within this price range. It’s crucial to consider seizing the current opportunity before the competition sways in favor of these new offerings, potentially overshadowing the demand for the existing resale condos.

The more expansive floor plans are gaining traction, particularly among families who are newcomers to the neighborhood. Edgewater has evolved from renters to full-time residents, and the new construction inventory is tailored around satisfying their demand.

Condo owners with compact floor plans should consider this emerging trend. The neighborhood’s new construction projects present expansive options, including generous one-bedroom plus den floor plans spanning over 1,900 square feet. As buyers increasingly gravitate toward more spacious layouts and modern amenities, the appeal of a traditional two-bedroom unit with only 1,000 square feet may diminish.

ADVICE FOR SELLERS

Seizing the moment is crucial, as Edgewater’s current balanced supply level presents a prime opportunity for you to capitalize on your investments. As demand grows and potential oversupply looms, strategic timing becomes pivotal. The current market remains robust for selling, particularly when considering the potential landscape in the next few years with the introduction of new inventory.

ADVICE FOR BUYERS

For buyers seeking value, new construction condos are a great option as they align with the economics of the neighborhood and can still offer you bayfront views, larger floor plans, and more amenities. Avoid purchasing in condo buildings saturated with investor owners because it can create volatility in value and leverage.

Read our other neighborhood and luxury reports

If you would like to get perspective on other specific neighborhoods or luxury reports. Please click here to go to our main database of reports. We update these every 6 months.

Schedule Time with David Siddons and Shakira Sanchez