Miami, South Florida Residential Sales Jump 17% As Prices Tumble

Sales of South Florida condominium units and single-family houses jumped on a year-over-year basis by nearly 17 percent in the month of November as buyers picked off bank-owned properties, foreclosures, and deeply discounted residences.

Buyers closed on 1,623 condos and houses in Miami-Dade and Broward counties in November 2008 compared to 1,391 transactions in November 2007, according to the Florida Association of Realtors.

In Miami-Dade, there were 674 sales in November of this year compared to 560 transactions in 2007 for an increase of more than 20 percent. In Broward, there were 949 transactions recorded in November 2008 for a 14 percent increase compared to the 831 transactions a year earlier, according to the data.

“We have been predicting for some time that the number of South Florida residential transactions in November would surprise most people,” said Peter Zalewski, a principal with the Bal Harbour, Fla.-based consultancy Condo Vultures® LLC. “The early indications are that the December closed sales numbers will be just as strong as November's if not stronger. We are getting reports that many all-cash buyers are moving into the market.”

Dropping prices and shrinking residential inventory are two factors that prompting the increased buying.

The average sales price for a South Florida residential property in November was $183,950, down -35 percent compared to $284,700 in November 2007.

Prices in Miami-Dade were down -36 percent to $198,650 in November 2008 from $312,000 a year earlier. In Broward, sales prices have tumbled -34 percent to $169,250 from $257,400 in November 2007, according to the data.

As prices are tumbling, the inventory is decreasing. In November 2008, there were 76,799 properties on the market in Miami-Dade and Broward compared to 82,299 properties in November 2007. The year-over-year drop represents a -6.7 percent decrease, according to the data.

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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