MIAMI BEACH, FL-South of Fifth, or SoFi, is one of the trendiest neighborhoods in South Beach. But that’s no longer enough to move condo inventory. Nearly two years of condo resales remain on the condo market, according to a new report from CondoVultures.com.
About 410 condo resales are listed on the market as of Dec. 16. That’s a glut, especially considering only 19 units, on average, have sold each month for the last six months. An additional 53 condos are under contract waiting to transact, according to CVR Realty.
"The South of Fifth neighborhood is flooded with condo resales at the moment," says Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures. "As South Florida prepares for the busy winter tourism season, many sellers are opting to list their properties for resale in hopes of unloading now. It is unclear if the amount of available inventory will drag down pricing in the South of Fifth area, which is one of the most desired areas in South Florida."
Drilling down deeper into Florida Association of Realtors data, there have been 114 sales in SoFi at a median price of $621,500, or $478 per square foot, in the last six months. That’s based on a two-bedroom condo with 1,300 square feet.
The lowest-priced unit to sell in SoFi since June 2010 went for $59,900—less than $300 a square foot. That was for a 200-square-foot studio. By contrast, the highest-price unit sold for $6.75 million, or more than $1,600 per square foot for a three-bedroom unit with about 4,200 square feet.
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