In the South Florida market, a three-year supply of condominiums are vacant and without owners, the National Mortgage News reports.
A Bal Harbour-based real estate consulting firm, CondoVultures, reported that roughly 6,800 condominium apartments off the Atlantic seaboard in South Florida would be bought, but the units still remain unsold, according to CondoVulture’s recent report. These unsold units do not include the condos west of Interstate 95 in the Miami-Dade, Broward and Palm Beach Counties, or the 8,000-plus units that are owned by investors in a mass transaction who will all eventually plan to sell them to individual buyers.
The past 40 years prior to the real estate construction boom in 2003, builders created 700 condo properties, with a total of some 76,500 units in the same seven coastal markets: greater downtown Miami, South Beach, Sunny Isles Beach, downtown Fort Lauderdale and the beach, Hollywood/Hallandale Beach, downtown West Palm Beach and Palm Beach Island, and Boca Raton/Deerfield Beach, according to a report from the National Mortgage News. Since the real estate boom, developers have built close to 250 projects with 49,000 units in the seven largest condo markets east of Interstate 95.
“At the current pace of about 200 new condo sales per month, or 600 units per quarter, the tri-county region has nearly three years of remaining inventory,” said Peter Zalewski, a principal in the CondoVultures consulting firm.