Is 2018 the Golden Year of Continuum?
- loes
- 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.
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.