Thursday night was the much anticipated auction for the newly built Miami condominiums, a 22-story, and 199-unit tower in Miami’s Edgewater neighborhood. It was an event that many people expected to be the beginning of a new trend amidst the struggling housing market for Miami real estate. The Marriott hotel ballroom was flooded with over 300 people waiting to bid on 20 units at Platinum Condominium. Potential bidders had to be pre-approved and ready to put down 10 percent.
The crowd gathered at the Marriott hotel ballroom consisted of ranged from buyers wanting a good deal on Miami real estate, a renter looking to buy her new Miami condo and the simply curious.
Even though prices were too steep for investors looking for a bargain, the prices were significantly lower than what the previous buyers paid for their units at Platinum. Prices on Thursday ranged from $181,500 for a one-bedroom to $357,500 for a three-bedroom and eight of the 20 units auctioned were offered with no minimum-bid requirement.
To put it in perspective, a one-bedroom on the 14th floor previously closed for $360,000. However, Thursday night there were two one-bedroom condos on the tower’s 16th and 18th floors that were just slight of $220,000.
Analysts say that the Thursday prices are around what they were in 1999 to 2000 and we can expect even better bargains in 2008 when the market is even softer.
Suddenly, thanks to the auction, the place isn’t worth what they borrowed and it’s safe to say that people who bought condos previously will not be happy about Thursday night’s auction. Give it two or three weeks and we’ll be hearing of pending lawsuits on the building.
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