Monday, August 25, 2014
Existing condos challenged by new condo competition
MIAMI – Aug. 25, 2014 Three years into South Florida's impressive housing recovery, demand for existing condos is showing signs of sputtering, even as single-family home sales chalk up new highs.
Blame the condo headwinds on stiff competition from a wave of glittering new-condo construction that is remaking the skyline and cementing South Florida's place as a magnet for foreign money.
Meanwhile, prices on existing condos have skyrocketed, making them less attractive to investors. And traditional home hunters face tough mortgage guidelines even more stringent for condos than for houses.
In Miami-Dade County, the volume of existing condo sales fell 8.8 percent in July to 1,403 units from 1,538 a year earlier; and they were down 2.8 percent from June, the Miami Association of Realtors said.
Year-over-year sales of existing condos in Miami-Dade have declined every month since February, though sometimes by small amounts.
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