T
he Treasure Coast condominium and townhome market is experiencing a surge in inventory, with new listings outpacing sales. Despite this, condo owners are struggling to sell their units due to rising ownership costs. Experts attribute this to the "condo crisis," which includes increasing insurance rates, market uncertainty, and new state inspection regulations.
According to data from local Realtors, the total number of Treasure Coast condominium and townhome units listed on the market is about 64% higher than five years ago. Jonathan Lickstein, president of Broward, Palm Beaches & St. Lucie Realtors, notes that condos are selling slowly, with inventory levels roughly half as bad as they were during the 2008 recession.
While the surge in listings suggests a buyer's market, Lickstein cautions that it's not quite there yet. The benchmark for a balanced market is 5½ months of inventory, and all three Treasure Coast counties - Martin, St. Lucie, and Indian River - have seen significant increases in inventory levels since last year.
Martin County has 9.8 months of inventory, up from 6.4 in April 2024; St. Lucie County has 11.8 months, up from 7.6; and Indian River County has 14.1 months, up from 8.9. In contrast, the latter half of 2021 was a seller's market for condos on the Treasure Coast.
Median sale prices for condos and townhomes have increased since the pandemic, with Martin County at $280,000 in April (up from $176,000 in April 2020), St. Lucie County at $339,900 (up from $238,500), and Indian River County at $286,298 (up from $143,500). However, buyers are becoming increasingly hesitant to purchase older condos due to concerns about their age and financial condition.
The collapse of Champlain Tower South in Surfside has led to more stringent state regulations for condominium associations, including mandatory inspection reports for buildings 30 years or older. This has resulted in substantial structural deterioration being documented in at least 18 condominium communities on the Treasure Coast, with repair bills passed down to condo owners as special assessments.
