Bad News Mounts For Miami Condo Market
There's more bad news for Miami's collapsing condo market: Deposited buyers are already trying to unload units before they even move into the crop of new towers sprouting up on our skyline.
"A third of the units in some newly built high-rises are back on the market, though most are listed for more than their owners paid in a pre-construction phase," Bloomberg reports, noting condo purchases fell 25% through April of this year, and pricing fell 6% on a price per-SF basis (based on data provided by CraneSpotters.com).
For now, the strong rental market is helping new owners cover costs. But that may only happen for so long: "The ticking time bomb is based on rental rates. When some of the foreign investors sitting on the sidelines have to dig into their pockets and subsidize renters, that's the fuse that will lead to a correction," CraneSpotters' Peter Zalewski tells Bloomberg. [Bloomberg]