(To read more on the multifamily market, click here.)
MIAMI-Although residential condominium prices have dipped in Miami-Dade County compared to a year ago, city officials confirm they have approved the construction of 29,558 new condo units and are reviewing another 30,674 units proposed by developers.
Currently, 22,254 condos are under construction. That's compared to a total 15,525 condos constructed since 1995, the Miami Planning Department confirms.
The surge in new condo construction plans comes as the Florida Association of Realtors reports the median price for condos in Miami-Dade county is now $250,000, a 4% drop from a year ago. Since January 2006, prices have dipped 3.5%. At the same time, condos in nearby Broward County are up 8% from October 2005 with the median price at $210,000.
The total number of sales in Miami-Dade are down 6% compared to November 2005. Broward sales are down 21%. "There is a correction now taking place with prices expected to level off," Paul Hancock, a real estate lawyer in the Miami offices of Kirkpatrick, Lockhart, Nicholson, Graham LLP, tells GlobeSt.com.
Hancock says demand for the product is still strong but "clearly there is an oversupply" now. The big question is when the frozen condo sales market will thaw, Hancock says. "Nobody knows that right now," he adds.
Miami commercial real estate brokers tell GlobeSt.com they are even seeing some developers switching approved condo construction plans and redesigning blueprints to offices and retail instead.
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