Condo Market Cools Off
Dozens Of Projects Canceled As Sales Slow Down
MIAMI — The real estate market that was so hot for the last couple of years in South Florida has cooled down considerably.
Even though construction cranes still dot the South Florida skyline and work continues on high-end, high-rise condos, real estate data shows that sales are slumping.
Real estate analyst Michael Cannon said that some of the projects currently under construction are “destined to fail.”
Experienced developers, like Tibor Hollo of Florida East Coast Realty, said their projects are doing well. Hollo’s Opera Tower sold out before construction began and Hollo remains optimistic.
But, he said that 29 condominiums planned for just north of downtown Miami have been canceled. When projects are canceled, there can be real-life consequences.
For example, dozens of renters were forced to move out of Cameo Apartments when a high-rise condominium was planned at the location. But the condominium project never happened, and with thousands of other condominium units under construction, Local 10’s Michael Putney said that Cameo Apartments have turned into a squalid home for squatters.
Many condominiums remain financially out of reach for a large percentage of South Florida’s population. A fact that is being reflected in sales: in Broward County sales in September of single-family homes were off by 24 percent and condos were down 46 percent. In Miami-Dade, home sales were down 12 percent and condo sales were off by 40 percent.
Cannon said that the real estate market is in a period of adjustment, so though the bubble may not have burst, it certainly has deflated.