Pandemic Has Driven Developers To Offer Discounts On Miami Condos
MIAMI (CBSMiami) - The coronavirus impact in the US and Latin America has driven some condo developers east of I-95 to offer discounts as high as 20 percent on existing units.
"You have developers in the mood, they are closing out buildings, they want to close 'em out," said Craig Studnicky, co-founder and CEO of International Sales Group.
The coronavirus has ravaged already shaky Latin American economies. The strong value of the US dollar has made it harder to sell to South Americans who have been a bedrock in the South Florida condo market.
"We are not getting the amount of Latin buyers we used to get," said Studnicky.
Condo investors who buy and them rent them out a short term basis are shying away because tourism has been crippled and no one knows how long it will last. There is also a second factor.
"Condos with short term rentals have no ability to manage social distancing," said Studnicky.
Studnicky's ISG World produces the Miami Report which analyzes the Miami condo market.
"Right now four out of five real estate transactions in Palm Beach, Broward, and Miami-Dade counties have been homes and why? Social distancing. You can maintain social distancing, you can decide who comes in and out," he said. "Right now we are dealing with a seller's market because house sellers are getting close to their list price and it's happening all over the tri-county area."
