Another Bubble Has Burst: The Miami Luxury Condo Market Is A “Ticking Timebomb”
Last year we warned that the luxury condo market in Miami was cooling down, and we also noted that one of the mail culprits was the fact that foreign buyers (especially Brazilians) were seeing their buying power crushed by the appreciating dollar.
Today, the bubble has officially burst and the Miami luxury condo market is a complete trainwreck. There are 3,397 condominiums available in the downtown Miami area, and at current prices it is estimated that it would take 29 months to sell those. A strong US Dollar has continued to force South American investors to unload recently built condos, adding inventory to an area where 8,000 units are under construction and nine towers have already been completed since 2013.
There was a similar real estate downturn in Florida prior to the 1929 equity crash. The wealthy are getting pinched. Price per square foot doubled over the past few years but now the party is over. Half of those gains could dissapear in a few months time. Hmmmm, interesting.