Is 2018 the Golden Year of Continuum?

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September 6th, 2018

The Comeback of Continuum’s Glory – Will this Surge Last?

After several years of price corrections and a moderation in the amount of sales, 2018 seems to be the year of Continuum’s comeback. The North Tower is experiencing its best year so far with the highest sales price per SF in recent years, even higher than during the last market peek in 2015/2016. The South Tower, whose prices really went to extreme levels during the last peek, is now seeing increased average prices per SF, although they have not reached the price levels of the last peek.
The entire South of Fifth market is seeing increased buyer’s confidence, but specifically Continuum seems to be performing extremely well this year.

The Best Performing Continuum Units | Renovated vs Original units

Will this Surge in Prices Last?

The best indicator for future price predictions is the months of inventory. Months of inventory measure how long it will take to sell all current listings, if no other units will enter the market. It is basically the rate at which the market absorbs the inventory.
The North Tower is seeing 24 months of inventory* while the South Tower is seeing 25 months of inventory. These are very healthy numbers for a luxury condo and much lower numbers than many other South of Fifth and Miami Beach luxury towers. The luxury market is in perfect equilibrium between 12 and 18 months of inventory. The Continuum numbers indicate a healthy demand for Continuum units at the right price. The current supply and demand curve indicates that prices will remain stable or grow at a normal healthy rate. Nothing indicates this is a bubble or prices are likely to decrease any time soon.

* Based on the last months of sales (I took 2017 and 2018 until September) we see that the North Tower closed on 18 units and the South Tower on 19 units. This translates in 0.9 units sold per month for the North Tower (18 divided by the 20 months included in the measurement) and 0.95 units sold in the South Tower. The North Tower has currently 22 units for sale and with on average 0.9 units being sold each month we see a 24 month inventory. The South Tower shows 24 active listings leading to 25 months of inventory.

Advice to Buyers of Continuum

With low months of inventory and increasing prices we are bullish on the value of Continuum units. Nonetheless one should keep a close eye at the finishes and quality of a unit in order not to overpay. With rising prices and increased buyer’s confidence we often see over-confident sellers asking for prices that do not match the quality of their unit (often comparing their unit to a far superior unit). Always do your homework, look at good comparables and use an agent who knows what he or she is doing.

Advice for Sellers of Continuum

It is a bullish market and we are seeing increased buyer’s confidence. Selling your unit now will provide you with a better price per SF than what was paid in the last few years. This does not mean that buyers will pay any price for the unit. Remember this is not 2015/2016 anymore and buyers are still very price conscious. The reason that Continuum started moving again is because we saw some serious price corrections. It is essential that you price your unit right and engage with a realtor with the right tools to market your unit across the world. Updating your condo will definitely attract more buyers to the unit as many buyers prefer a modern, more polished look and you can substantially increase your asking price.

For more information about selling or buying at Continuum South Beach please contact the Continuum Experts today.

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David Siddons | Stefania Cambarau
David@siddonsgroup.com
+1.305.508.0899