South Florida Properties Plummet By -$1.05 Billion From Historical Highs

As the global markets tumble, nearly 4,500 coastal residential properties in Miami-Dade, Broward, and Palm Beach counties have fallen by a combined value of -$1.05 billion, or an average of -33 percent, off of their historical highs, according to a new Vultures Database™ report from Condo Vultures® LLC.

The average asking price in the Vultures Database™ was down by -$234,547 per property on Sept. 30 compared to a discount of -$227,330, or -32 percent, per property a month earlier on Aug. 31, according to the report by the Bal Harbour, Fla.-based consultancy.

As the discounts have deepened for coastal South Florida properties, the inventory has steadily decreased due to increased buying activity.

For September, there were 4,456 residences being tracked in the Vultures Database™, compared to 4,647 properties in August, according to the report.

“The stock market uncertainty and the strengthening U.S. dollar are prompting an increasing number of people to look more closely at brick-and-mortar investments," said Peter Zalewski, a principal with Condo Vultures® LLC that released the report . "If someone is adopting that strategy, the fundamentals – population, weather, product quality, and land constraints – of South Florida make the region a viable option for many.”

Condominiums, townhouses, and single-family houses located east of Interstate 95 in Miami-Dade, Broward, and Palm Beach counties are added to the Vultures Database™ once the asking prices are reduced by at least 10 percent or $100,000.

Condominiums represent 69.4 percent of the total inventory, with 3,093 units in the Vultures Database™. Houses and townhouses make up the remaining 30.6 percent of the inventory, or 1,363 properties, according to the report.

For August, condominiums accounted for 68.8 percent, or 3,196 units, of the total inventory in the Vultures Database™. Single-family houses and townhouses represented 31.2 percent, or 1,451 residences, of the total inventory, according to the report.

Palm Beach County is increasingly offering the deepest discounts in condominiums in the Vultures Database™, with Royal Palm Beach ranking No. 1 with an average reduction of -52 percent. Delray Beach is second with an average price drop of -51 percent.

Rounding out the top five rankings are the cities of Boca Raton in Palm Beach County, Oakland Park in Broward County, and North Miami in Miami-Dade County, which are all tied for the No. 3 ranking with an average discount of -40 percent, according to the report.

The cities with the deepest discounts in single-family houses and townhouses are scattered throughout South Florida's three counties.

Palm Beach ranks No. 1 with a -56 percent discount. Boynton Beach ranks second with a discount of -52 percent. Oakland Park is No. 3 with a -44 percent drop. Rounding out the top five rankings are Hallandale Beach in Broward County with a -39 percent drop for the No. 4 spot, and in fifth position are the cities of Bay Harbor Islands in Miami-Dade County and Lantana in Palm Beach County with an average discount of -38 percent each, according to the report.

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™ .


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