What is the Effect of Covid-19 on Continuum on South Beach Condos for Sale?
April 2nd, 2020
Continuum on South Beach and Covid-19 | What is happening now?
Many readers ask us about the effect of Covid-19 on Continuum condos for sale. Although Continuum on South Beach has many primary residents who use the condo all year round, the building is pre-dominantly an investment condo or a condo for second or third home owners. Unlike primary markets where there is a true need from families to find a suitable home, the investment market is more driven by opportunity and therefore less elastic when it comes to economic change.
Unit 606 in the South Tower represented the highest sale per SF in the last 6 months. This unit sold for $5,550,000 or $2213 per SF
What is the impact of Covid-19 on the Continuum on South Beach Sales Numbers?
The reality is that with the strict regulations around Covid-19, the condo shopping process has slowed down to almost zero activity. Many Miami condos are not allowing open houses or showings anymore and buyers are often hesitant to go and visit properties (specially for foreign and out of state buyers).
While many will postpone their condo investment, others might be affected by the virus or the stock market and therefore put a potential condo purchase on the back burner.
Inventory at Continuum on South Beach is already quite high at the moment after several quarters of low levels of inventory. The summer months at Continuum Miami Beach are always rather slow in terms of sale so we are preparing for an extremely slow year at the condo, which will likely start picking up again around November before the start of South of Fifth’s high season.
Continuum on South Beach Sales in Q1 2020
Looking at Q4 2019 and Q1 of 2020 we see a total of 7 condo sales and no pending deals. This is a decrease from 10 closed sales in the same period the year before (Q4 2018 and Q1 2019).
The average price per SF is higher this year, but that does not really tell the whole story. This year we have not recorded any small 1 bedroom sales, which was the case (3 sales) in Q4 2018 and Q1 2019. Excluding these more affordable 1 bedrooms from the average the prices in this period are actually $100 per SF less than in the previous period.
This last half a year we saw a 11% discount from original list prices and 9% discount from final list prices. While in previous quarters the months of inventory were closer towards the 20 months with around 40 months max, this season we see a much higher inventory.
Advice for sellers of Continuum on South Beach
Sellers of Continuum on South Beach for Sale need to be aware that there is a large inventory at the moment and most of this inventory is listed between $750K and $3M. With this high inventory, the current pandemic and the end of the high season in tow, the market will be cooling down significantly in the months to come.
There will still be a high demand for large units, but it might take a good period of time (almost a year) before the situation stabilizes and buyers from the North East come in strong again. Smaller units and non water facing units will take the stronger hit, due to the high level of inventory available. Well priced, good quality units as always have a better chance of selling fast.
If you are planning to put your condo on the market, be conscious that the market has cooled down and asking prices need to be realistic.
Advice for Continuum on South Beach Buyers
As we are entering the low season with high levels of inventory, there might be some good deals to be made with sellers that need to sell quickly. During the pandemic it will be challenging to show properties so start you search here! You can also ask us for more details of the condo. Maybe the condo has a virtual tour already or we can request/create one for you.
On our master site, we offer the best tools for your search at www.LuxLifeMiamiBlog.com.With our tools, you can search by neighborhood, price range and also get the most updated analysis of your area. Our team is also ready to communicate online or in person and we are still doing private showings depending on client’s urgency and needs.
Contact us for more information about Continuum on South Beach
David Siddons 305.508.0899
Stefania Cambarau 305.965.1232
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