With a new luxury home in the works and plans to open two more in 2018, condo-dwellers can rest easy: It’s still a good time to be in Miami.
In the past year, condo sales have jumped by more than 30 per cent.
A whopping 73,000 condo units have been sold, making it the second-most-sold market in North America after Toronto.
But condo buyers can be left wondering whether their condo is ready to compete with more high-end properties in the city.
For condo-holders, who are increasingly renting, condo living is still a big gamble.
The average price of a condo in Miami is now more than $1.4-million, according to the Real Estate Board of Greater Miami.
But buyers are looking for a longer-term investment in condos, even though condo sales in the United States have been steadily dropping since the mid-2000s.
There is also a long list of condo-related regulations that can make it difficult to sell condos in the Sunshine State.
Condo buyers in Toronto are required to live in their units for five years, but condo buyers in Miami are not required to do so.
A condo is not considered a home, even if it is equipped with a fireplace, and the sale of a home requires a mortgage.
In addition, condo owners can be required to sell at least 20 per cent of their units, which can reduce the value of a unit.
And because condos are typically located in areas with limited housing options, they are often harder to sell in condos.
Mortgage rates are also high, meaning condo-buying is still an expensive proposition.
“Condo prices are not as affordable as homes.
They are higher, and you’re still paying for the land,” said Paul Meeuwis, a Toronto real estate broker.
“It’s a good thing that condo prices are going up.
But they are not going to be as expensive as homes.”
According to Meeo, condo prices have been rising steadily over the past decade.
But the recent surge is due to condo developers and condo associations building more condos, he said.
If the condo market continues to slow down, the market could shrink even further, which could mean condos are losing their appeal to condo owners.
“We could see a lot more condo-only housing, especially if condo development picks up,” Meeeuwiss said.
“The condo market will have to get back on its feet in order to compete.”
The condo industry is facing a shortage of housing options.
A shortage of condos could make it harder for condo buyers to afford them.
More: What to know about the condo boom, including what you need to know to buy a condo, condo sale rules, condo financing and more.
Miami condo sales are on track to reach a record high for 2018, according a report by RealtyTrac.
Realtors surveyed 3,500 condo buyers and found the average sale price was $2.2 million, with the average price per unit in 2018 surpassing $1 million.
A total of 4,839 condominium units have already sold in Miami, a 30 per-cent increase from the same time last year.
In 2018, condos accounted for about 20 per- cent of all sales, up from 12 per cent in 2017.
The condo market has been growing at a rapid pace in recent years, and is now worth more than half of the total residential property market.
The average condo is valued at $1,800,000 in Miami at the end of the year, according the report.
In Toronto, condo market is up to 29 per cent over 2017, up 10 per cent from last year and up 15 per cent compared to the same period last year, Realtytrac found.
The average price is now $1-million higher than last year at $2-million.
Sales in Toronto peaked in the second quarter of 2018 at 1,622 condominiums sold, and have been trending higher ever since.