Home and condo sales in South Florida have been on a downward trend for several months, with price growth slowing across the region. The current market conditions are leading to what some see as a shift toward a buyer’s market in parts of Miami and other nearby areas.
There has been an increase in price reductions for both modest homes and high-end properties, with some listings seeing cuts of $70,000 or even millions for more expensive residences. Despite these changes, not all sellers are incurring losses based on their initial purchase prices; many are instead adjusting expectations as properties remain on the market longer.
“Make an offer, you never know what could happen,” a listing agent said after a house received a $10,000 price cut.
Homebuyers appear to be taking advantage of increased options by backing out of purchases at higher rates. According to a Redfin report released this summer, home purchases in Texas and Florida were among the most likely to fall through nationwide. In July, over 21 percent of pending home sales in Fort Lauderdale were canceled, ranking it among major U.S. cities with the highest share of collapsed deals. Miami saw about 17 percent of signed contracts canceled that month—the same rate as last year.
Condo buyers have even more choices as many sellers seek to offload units. Special assessments from condo associations aimed at funding repairs and boosting financial reserves are leading to higher monthly fees or concerns about unexpected costs. These factors are discouraging some potential buyers from entering certain buildings.
On the residential side, Dr. Nicole Martin—a former “Real Housewives of Miami” star—and her fiancé Anthony Lopez purchased a seven-bedroom home at 33 Arvida Parkway for $34 million. This figure is 28 percent below its original asking price of $47 million. The seller was real estate investor Rafael Perez.
In commercial transactions, Chicago-based Waterton Residential sold District West Gables—a 427-unit apartment complex located at 2001 and 2101 Ludlam Road/Southwest 67th Avenue in West Miami—for $111 million to Federal Capital Partners.
Pedro Adrian, founder of Adrian Homes, and his wife Adria Adrian have listed their waterfront mansion on Palm Island in Miami Beach for $59 million. The property includes an adjacent lot with a tennis court and is being marketed as a teardown by Compass agent Chad Carroll. The Adrians originally bought the main property for $240,000 in 1984 and the neighboring lot for $200,000 two years later.
Meanwhile, public school enrollment is declining throughout Florida. Miami-Dade County reported a decrease of 13,000 students; Broward County saw about 11,000 fewer students; Orange County planners projected a drop of around 7,000 students. Miami-Dade County Public Schools superintendent Jose Dotres attributed these declines to fewer immigrant students enrolling, lower birth rates, and rising living costs.
“What we’re thinking about: What are the weakest links in West Palm Beach’s new development condo pipeline? Send me a note at kk@therealdeal.com.”
— Research by Mary Diduch
