South Florida condominium prices in the Vultures™ Database strengthened for the second consecutive month in September, raising speculation that the individual sales market could be headed for a bottom - possibly a false one - this winter, according to a new report from Condo Vultures™ LLC.
The average price drop in the Vultures™ Database for a condo unit was 19 percent in September compared to a 20 percent discount in August and a 23 percent drop in July. In dollars, the average asking price drop was $142,612 in September compared to $153,662 in August and $183,295 in July, according to the Vultures™ Database Report for October.
“The steady influx of discount buyers looking for deals appears to be creating optimism with sellers who seem to have conveniently forgotten about this summer’s credit crisis,” said Peter Zalewski, a principal with the Bal Harbour, Fla.-based consulting firm that publishes the monthly reports. “All of these condo buyers who are in town, especially the foreign purchasers with rich currencies, are giving sellers the confidence to hold out for their price. We are waiting to see who will flinch first this winter tourism season.”
Condo Vultures™ uses the Vultures™ Database to better identify areas and/or condominium towers where sellers are more likely to negotiate on price given the amount of time on the market or the price reduction.
The Vultures™ Database is comprised of condominium units, townhouses, and single-family houses that have been cut in price by a minimum of 10 percent or $100,000, or have been for sale for at least 100 days. The database tracks properties east of Interstate 95 and/or U.S. 1 from Pinecrest north to Pompano Beach.
Unlike the strengthening condo market, prices on single-family houses and townhouses continue to soften as fewer of the discount buyers in today's market are focused on homes. The asking price on single-family houses and townhouses in the Vultures™ Database slipped to 21 percent in September compared to a 20 percent drop in August. House prices were discounted by 21 percent in July.
"Single-family houses tend to be a challenge for the out-of-town buyers who are in today's market," Zalewski said. "It's much easier to pay the monthly condo maintenance fee and let the condo association take care of the property than it is to do it yourself from out of town."
Taken together, condos, townhouses and single-family houses in the Vultures™ Database were reduced in asking price by an average of 20 percent in September. This is the second consecutive month that the overall average price drop is 20 percent.
Between March and June, the average price drop for all residential product in the database was 21 percent. In July, the average price drop was 22 percent.
Even though Broward County accounts for seven of the 31 markets tracked in the database, Broward now accounts for four of the five markets with the biggest price drops overall.
Oakland Park’s 28 percent price drop ranks it as the softest market in the Vultures™ Database and Broward County, respectively, for condos, townhouses, and single-family houses. Biscayne Park is the softest market in Miami-Dade and second overall based on an average price drop of 27 percent.
Wilton Manors in Broward is tied with Pinecrest in Miami-Dade for third place with an average price drop of 26 percent. Hallandale Beach and Pompano Beach in Broward are tied with the Miami-Dade city of Miami Gardens for fourth place with a 24 percent price drop.
The price reductions are even deeper for closed sales. In September, 78 of the properties being tracked in the Vultures™ Database closed at an average price drop of 28 percent, or $269,486, compared to the original price. A month earlier in August, there were 110 properties in the database that closed at an average price drop of 29 percent, or $252,845, compared to the original price.
Since January, 786 units that at one time were tracked in the Vultures™ Database have sold at an average of 25 percent, or $249,034, below the original asking price.
Peter Zalewski is a principal with the consulting firm Condo Vultures™ LLC and the qualifying licensed Florida real estate broker of Condo Vultures™ Realty LLC. Peter can be reached at 800-750-0517 or by email at peter@condovultures.com.
Copyright © 2007, Condo Vultures™ LLC
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment