The Pooh-Poohed Doom-and-Gloom Scenario for Miami’s Condo Bubble and its Lenders Has Arrived

by Wolf Richter
Wolf Street

“The market could get scary.”

The 374-unit 46-story Brickell House opened in 2014, during the steamiest days of Miami’s condo bubble. Now the dynamics have changed: 77 condos have been listed for resale over the past 6 months. And three have sold at a loss from their preconstruction prices.

A unit sold in February for $525,000, or $4,000 below preconstruction price. After the 6% sales commission, the net sales price was $493,500 or a loss of 7%, according to StatFunding’s new Miami Preconstruction Condo Market Update. A unit sold in March for $350,000 lost 16% after sales commission. And one sold in May for $233,400 lost 38%.

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