There is a common misconception about Miami Beach condos, which is that all the units for sale are either short sales or foreclosures (bank owned).
The reality however might actually surprise you. Only 19% of all miami beach condos for sale (as of today) are either so called distressed properties with 3% being bank owned and 16% being short sales.
When you look at the number of Miami Beach condos that are actually selling however the story is a different one. Last month 36% of all miami beach condos that sold were bank owned foreclosures and 20% were short sales. That means that a total of 56% of all condos sold in Miami Beach last month where distressed properties and 44% were “regular” sales.
What does that mean for me ?
If you are a buyer it means that you have a 56% change of either having to deal with the extremely competitive market of foreclosed miami beach condos or having to be patient enough to go through the lengthy process of a short sale.
If you happen to be trying to sell your miami beach condo, it means that more than half of your competition consists of distressed properties (read: highly motivated sellers) and therefore pricing is everything. Unless you happen to own one of a handful of miami beach trophy properties your chances of selling an overpriced miami beach condo are pretty much zero these days. If you have a property that has been sitting on the market and not attracted any offers or even showing for more than 3 months, do yourself (and the rest of the market) a favor by either adjusting your pricing or taking your property off the market until the time is right for you to sell.