Miami's Condo Market: A Post-Surfside Collapse Reality Check With Peter Zalewski of Condo Vultures - Episode #135
/I highly recommend watching the full interview for a deeper understanding of the Miami condo market and expert advice from Peter Zalewski
Hi everyone, Hal Feldman here, your favorite Miami real estate agent! Recently, I sat down with Peter Zalewski, a true expert on South Florida condos, for the MiamiHal Real Estate Show.
Peter is the founder of Condo Vultures, a real estate consulting and data provider that's been a trusted source of information on the South Florida condo market since 2007. Our conversation was eye-opening, especially in light of the Champlain Towers collapse. We dove deep into how the market has changed, the challenges condo owners face, and what buyers and investors need to know.
Miami Condo Market in Transition
The Miami condo scene is a bit like a teenager – going through many changes and unsure where things are headed! Peter gave me some hard-hitting stats:
Months of supply: We're currently sitting at 8.2 to 8.3 months of condo inventory in Miami-Dade, Broward, and Palm Beach counties. That's a buyer's market, folks! There are plenty of choices.
Days on market: But here's the twist – condos take an average of 151 days to sell. That tells me things are slowing down.
Seller expectations: And get this: sellers are asking around 55-56% more than the average sale price. It seems like a disconnect, right?
This all points to a market in transition. Buyers have more options, but sellers are holding firm on their prices. It's a bit of a standoff!
Not All Condos Are Created Equal
Peter broke down the market into what he calls "new," "used," and "vintage" condos. Think of it like cars:
New: These are your shiny new models, less than 10 years old, with all the latest features. They're in high demand, selling in an average of just 44 days!
Used: These are your reliable 10 to 24-year-old condos. It's still good quality, but maybe not as flashy.
Vintage: Now, these are the ones that need a bit of TLC. We're talking 25 years or older. They might seem like a good deal at first, but watch out for those maintenance fees and special assessments! They can add up.
The "Doom Loop" and Redevelopment Opportunities in Miami
Peter didn't sugarcoat things when it came to these vintage condos. He talked about a "doom loop" – rising maintenance costs, special assessments, and sky-high insurance premiums. It's challenging for many condo owners, especially those on fixed incomes. This is where "condo commandos" – those highly involved and vocal condo owners – often come into play, advocating for their building and demanding accountability from the condo association.
But there's a flip side. Often in prime locations, these older buildings can be ripe for redevelopment. Peter explained how condo owners can vote to terminate their association and sell the property to a developer. This can lead to brand-new buildings and breathe fresh life into the area.
Condo Commandos: Advocates for Change
Speaking of condo commandos, Peter and I discussed how their role has evolved. In the past, they were sometimes seen as just wanting power and control. But now, especially after Champlain Towers, they often push for transparency and accountability. They're the watchdogs, making sure the building is safe and well-maintained. And with the new condo laws in Florida, they have more power than ever to make a difference.
New Florida Condo Law: A Game Changer
These new laws are a game changer for condo owners in Florida. Here are some of the highlights:
Transparency is key: Condo associations now have to hold open meetings every 90 days, and owners have the right to see important records.
No more shady dealings: Board members can't take kickbacks or rig elections.
Property managers under scrutiny: They must to be more transparent about their dealings, too.
Mandatory reserve studies: Starting in 2025, all condo associations will have to conduct regular studies to make sure they have enough money set aside for repairs. No more deferring essential maintenance!
These changes are designed to protect condo owners and prevent another tragedy like Champlain Towers.
What to consider when buying a condo?
So, what does all this mean if you're considering buying a condo in Miami? Here's the bottom line:
Do your research: Understand the new laws and what they mean for condo associations.
Consider the age of the building: Newer condos might offer more peace of mind, but older ones can be a good value if you're prepared for potential assessments.
Factor in all the costs: Don't just look at the purchase price. Consider those monthly maintenance fees, potential special assessments, and insurance costs.
Location, location, location: Just like with any real estate, location is key. Think about your lifestyle and what's important to you.
Need Help Navigating the Market?
The Miami condo market can be complex, especially with all the recent changes. That's where I come in! As a trusted Miami real estate agent, I can help you navigate the market, understand the new laws, and find the perfect condo for your needs and budget.
Be sure to watch Peter Zalewski’s full interview on the MiamiHal Real Estate Show (the video is above) to gain a deeper understanding of these important topics.
Until next time, have a great week in real estate!
Hal Feldman, MiamiHal
Your Miami Real Estate Agent
“The sale of our home was a very emotional decision for us! My first call was to Hal, which I found on Google. We did interview another realtor, but we didn’t have a connection. Hal truly understood our needs and concerns. This home represented everything to us, but we were also facing the reality that we needed to be closer to our 2nd business 5 hours away. He made the process very clear and to us he is one of the most honest realtors we have ever met. Hal works for you and it shows in his work ethic. We would recommend Hal to anyone looking for the best Realtor in Miami.”
