South Florida's once-hot condo market is cooling rapidly, with more units sitting unsold and sellers slashing prices to stay competitive.

Condo owners like Michael Leccese are feeling the pressure. His one-bedroom, two-bathroom unit at the Sian on South Ocean Drive has been on the market for over a year and he's dropped the price four times, now listing it at $414,000.

"I'm definitely taking a hit economically to support these types of expenses," Leccese said. He's been forced to rent the unit while waiting for a buyer, but rent no longer covers his costs.

Rising fees and assessments add to seller woes

The challenge isn't just falling sale prices, it's rising costs. Peter Zalewski, who tracks the condo market on his site Condo Vultures, says owners are being hit by a double whammy: higher maintenance fees and special assessments.

"There's a rise in maintenance fees plus a special assessment," Zalewski said. "Once condo prices start to fall, we go into a doom loop, think of a plane that's lost power and is circling. I think that's where we're headed."

Condo Vultures reports that South Florida had 25,000 condo units on the market in January. That number has since grown to about 28,000, a surge in inventory that's only expected to push prices further down.

Future uncertainty as new towers near completion

Even with the current glut, more condo towers are on the way. Many were planned years ago, when the market looked very different.

"So many of the towers under contract today went under contract three years ago," Zalewski said. "The question is, what happens when these towers come online? Are people going to close on these units? That's yet to be determined."

Opportunities for smart buyers, bargaining power for renters

While it may be a tough time to sell, experts say it's not necessarily a bad time to buy, if you're informed.

State law now requires structural integrity reserve studies to ensure buildings have adequate funding for long-term maintenance.

Real estate broker Julia Ray of Raydiant Realty advises buyers to look beyond the listing price. "Be very careful when choosing the building. Look at the history of the building and the last four board meetings," she said.

Leccese agrees that today's buyers need to be sharp.

"It's a great opportunity, but you have to be an educated buyer," he said. "You have to know that the work has been done and the money has been spent on a building."

Meanwhile, renters are benefiting from the saturated market. With owners under financial pressure and units sitting vacant, renters are finding more negotiating power on monthly leases, making now a prime time to rent in South Florida.