Nearly 400 South Florida condominiums, townhouses, and single-family houses in the Vultures Database™ have been cut in price to $150,000 or less, with the cheapest residence slashed to $31,000, according to a June study from Condo Vultures® LLC.
The under-$150,000 properties in the Vultures Database™ are comprised of 64 single-family houses and 322 condominiums and townhouses scattered throughout 24 South Florida cities and neighborhoods. Overall, there are 4,356 properties including short sales, foreclosures, Real Estate Owned by the bank in the Vultures Database™, according to the report.
Miami (95 properties), Hallandale Beach (49 properties), and Miami Beach (42 properties) have the greatest concentration of under-$150,000 properties tracked in the Vultures Database™.
Deep discounts also exist on properties in some other popular South Florida cities, such as Aventura (nine properties), Bal Harbour (one property), Fort Lauderdale (22 properties), Sunny Isles Beach (13 properties), and West Palm Beach (15 properties).
“To see properties slashed in price to $150,000 or less in some of the most popular South Florida communities on the barrier island offers a glimpse of just how deep some of the discounting has been,” said Peter Zalewski, a principal with Bal Harbour, Fla.-based consultancy Condo Vultures®, LLC. “The question that remains unanswered is how much more prices will fall on high caliber properties in coastal areas before buyers strike in masses.”
As experts debate where bottom is, discounts in the Vultures Database™ through May 31 have leveled off or strengthened in 22 of the 32 submarkets monitored by Condo Vultures®. The Vultures Database™ tracks condos, townhouses, and single-family houses east of Interstate 95 in Miami-Dade, Broward, and Palm Beach counties that have fallen in price by at least -10 percent or -$100,000.
Of the nearly 4,400 properties in the database, 1,909 residences have been discounted by more than the -28 percent average price drop for the South Florida region. The remaining 2,447 properties have been slashed by -28 percent or less.
The average price drop in dollars in South Florida through May 31 was -$223,067 compared to an average drop of -$225,037 on April 30. On a year-over-year basis, in 2007 the average price drop in South Florida was -$227,619 on May 31 and -$233,495 on April 30, according to the data.
There were 90 properties in the Vultures Database™ that closed in May, pushing the total sales for the year to 507, according to the data. At this pace, there would be 1,217 closings of properties in the Vultures Database™ in 2008, compared to 1,192 in 2007.
As investors scour the market for deal, several unrelated developments this week suggest the time is approaching in some markets.
On the buy side, hedge-fund billionaire Edward S. Lampert has begun to quietly accumulate shares in publicly traded companies in the housing sector, including home builders, home improvement retailers, and mortgage lenders, according to the Wall Street Journal.
NBA center Shaquille O’Neal’s real estate company is launching an enterprise to buy nonperforming residential mortgages in Florida at a discount, according to the Orlando Sentinel.
Former New York Gov. Eliot Spitzer is exploring the creation of his own opportunity fund to buy distressed residential property across the country, including distressed markets such as Florida, according to the New York Sun.
On the sell side, Florida’s largest state-chartered commercial institution is in the midst of selling off nonperforming real estate loans that triggered $80 million in losses. Florida’s largest credit union is preparing to auction off at a deep discount a waterfront site slated for a condominium development in Palm Beach County.
Peter Zalewski is a principal with the consulting company Condo Vultures®LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report.
Copyright © 2008, Condo Vultures® LLC
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