The wealthy may be immune to economic downturns but that hasn’t stopped 33 luxury properties valued at between $1 million and $5 million from going into foreclosure in South Florida, according to a new Vultures Database™ report from Condo Vultures® LLC.
Condo Vultures® is currently tracking 14 luxury condominiums and 19 single-family estates in Miami-Dade, Broward, and Palm Beach counties on or near the water that are being foreclosed upon or already owned by the lenders.
These 33 properties are valued today at a combined $58 million, or $509 per square foot, down -33 percent from a historical high of $87 million, or $763 per square foot, according to the Bal Harbour, Fla.-based consultancy that produced the report.
The bulk of the multi-million dollar distressed properties are concentrated in Miami (11), Miami Beach (8), Hollywood (4), and Coral Gables (3).
Aventura, Boca Raton, Coconut Grove, Fisher Island, Fort Lauderdale, Hallandale Beach, and Sunny Isles Beach each have one distressed property priced at $1 million or more that is in foreclosure or already owned by the bank.
“There are about 109,000 residences for sale in South Florida today, and 8,100, or 7 percent, of these residences are priced at $1 million or more,” said Peter Zalewski, a principal with Condo Vultures® LLC that produced the report. “Statistically, to have 33 luxury properties in trouble from a pool of 8,100 residences is not dramatic. Still, it is bit surprising that 33 luxury properties have been or are on the verge of being repossessed.”
Overall, there are 1,706 properties in foreclosure or owned by the bank, also known as Real Estate Owned, in the Vultures Database™, which tracks properties east of Interstate 95 in Miami-Dade, Broward, and Palm Beach counties that have fallen in price by 10 percent or $100,000.
The foreclosure and REO properties in the Vultures Database™ are down a combined -44 percent to a current value of $498 million from a historical high price of $888 million. On a price per square foot basis, the average foreclosure or REO in the Vultures Database™ is $221 compared to a historical high of $394.
The lowest price for a foreclosure or REO in the Vultures Database™ is $24,900 and the highest price is $4.3 million.
The majority of the residences in foreclosure or owned by the bank are priced at $300,000 or less. There are 535 troubled properties priced between $24,900 to $150,000, and 697 distressed properties priced at $151,000 to $300,000.
On the pricier side, there are 251 problem properties priced between $301,000 to $500,000, and 190 troubled residences priced between $501,000 and $999,000, according to the report.
The remaining foreclosure and REO inventory is priced at more than $1 million and located in several of the region's most exclusive areas, including the community of Fisher Island off the coast of Miami Beach.
“The most remarkable aspect of the foreclosure report in my opinion is that a residence in the ultra-exclusive Fisher Island community is in trouble,” said Tommy Barone, a licensed real estate agent with Condo Vultures® Realty LLC who focuses on Fisher Island. "This is not something that we are accustom to seeing on the island."
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. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™.
Copyright © 2008, Condo Vultures® LLC
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