Vulture Opportunities Spike in Fort Lauderdale

By Peter Zalewski
CondoVultures.com

Fort Lauderdale now accounts for nearly 13 percent of the vulnerable properties being tracked in the Vultures™ Database, which is more than double the amount from last month, according to the August report from Condo Vultures™ LLC.

As Miami’s real estate downturn has been a focal point internationally, Fort Lauderdale has quietly experienced a spike in the number of vulnerable sellers looking to liquidate their properties, according to report.

As of July 31, there were 428 condominiums, townhouses and single-family houses for sale in Fort Lauderdale east of Interstate-95 that have dropped in asking price by at least 10 percent or $100,000 or have sat on the market for at least 100 days. On June 30, there were 104 Fort Lauderdale properties in the Vultures™ Database, which represented 6.1 percent of the total inventory at that time.

“The pressure is on,” said Peter Zalewski, a principal with Condo Vultures™ LLC and a licensed real estate broker. “Unlike Miami, the bulk of Fort Lauderdale’s new residential product has already been delivered. Speculators who had hoped to resell their new units for attractive profits are quickly realizing that it is probably not going to happen without a steep discount.

“The only product moving right now is the quality units priced below the comparables.”

The owners who are able to sell their South Florida properties seem to do so once they slash prices by an average of 27 percent, or $278,317, according to the Vultures™ Database closed sales report. For single-family houses and townhouses, the average cut necessary to trigger a sale is 27 percent or $348,850. For condos, the price cut needed is 26 percent or $207,784.

Condo Vultures™ LLC is a Bal Harbour, Fla.-based consulting and analytical company that uses public and private research including the Vultures™ Database to assess the South Florida condominium market. Sister company Condo Vultures™ Realty LLC is a licensed Florida real estate brokerage that works exclusively with buyers to acquire residential properties at attractive prices.

The Vultures™ Database is currently tracking 2,246 residential properties, up 32 percent from the 1,700 units on June 30. Condos account for 62 percent of the Vultures™ Database inventory. Single-family houses and townhouses account for 34 percent. The remaining four percent of the database's total of 2,347 entries comes from a combined 101 properties that are either developable lots or docks.

The average price drop for a condo in the Vultures™ Database in Miami-Dade and Broward counties is 23 percent, or $183,295, while single-family houses and townhouses have fallen by an average of 21 percent, or $291,766. The typical condo in the database has been on the market an average of 463 days, while the single-family houses and townhouses have been offered for 414 days.

Fort Lauderdale properties in the Vultures™ Database have slashed their asking price by an average 23 percent, or $234,109. The dollar amount ranks as the ninth largest price cut in Miami-Dade and Broward counties. The biggest price drops occurred in the posh areas of Key Biscayne (-$439,345), Fisher Island (-$357,000), and Coconut Grove (-$305,464).

“We anticipate continued price cuts in the upcoming months before the market begins to stabilize with the winter tourism season,” Zalewski said. “Sellers who can hold on long enough are likely to realize an influx of prospective buyers from North America and Europe who are coming to Miami to buy at a discount.”

It’s unclear if the North American visitors searching for deals will be able to buy in any quantity given the current U.S. liquidity crisis. The Europeans who are armed with their rich currencies, however, are likely to accumulate in a significant way.

Peter Zalewski, a principal with Condo Vultures™ LLC and the broker of Condo Vultures™ Realty LLC, can be reached at 305-865-5629 or by email at peter@condovultures.com.

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