If you’re thinking of snagging a prime waterfront Miami condo, 2017 may be the year to do it.
The cost of Miami’s waterfront condos is set to drop by as much as 8% this year as supply soars and South American buyers—normally the lifeblood of the market—remain scarce, according to a report on the region’s luxury real estate market by ONE Sotheby’s International Realty.
More:U.S. Extends Crackdown on Money Laundering in Luxury Real Estate
Buyers from countries such as Venezuela and Brazil, who helped drive the recovery in South Florida’s real estate market following the global crash in 2008, have been deterred by currency devaluations and falling oil prices over the past year.
"We predict the condo market will remain choppy in 2017. Both waterfront and non-waterfront condo availability is higher, and the short-term prospects for the arrival of a deluge of South American buyers is not likely," the report, out Tuesday, said.
"This international component comprises 50%-70% of the buyer pool in most markets," the report continued. "While not entirely gone, the reduction in the South American buyer pool is enough that pricing will drop another 5%-8% (waterfront), and will probably tick downward 3% for non-waterfront."
As a result, now is a particularly good, and economical, time to buy a resale condo in Miami, the report concluded, as sellers are realizing that they must be more realistic on pricing to find a buyer.
In contrast, the report cautioned that developers will be less likely to lower prices of condos that haven’t been built yet due to the high number of people that have already entered into contracts for these new constructions and their unwillingness to devalue their product.
In fact, some developers are actually raising prices, anticipating that very few new projects are likely to emerge as competition, the report said.
More:Miami Beach Sales Tumble By More than 20%
Last year, 4,959 Miami Dade waterfront condos were sold, compared with 6,078 in 2015 and 7,284 in 2012. A recent report by Miller Samuel on behalf of Douglas Elliman Real Estate found that listing inventory in Miami Beach was up 17.2% in the final three months of last year compared with a year earlier.