More than 25 percent of the 1,050 new condo units created in the Boca Raton / Deerfield Beach coastal market during the last South Florida boom-and-bust cycle are unsold as of June 30, 2013, according to a new report from CondoVultures.com. 

In the second quarter of 2013, buyers purchased nine developer units at an average price of about $867 per square foot for an overall total of $28.3 million, and in the process reduced the unsold developer inventory to about 265 units in the Boca Raton / Deerfield Beach coastal market, according to an analysis of Palm Beach County records.

With the latest transactions, buyers in the Boca Raton / Deerfield Beach market have acquired about 770 new condos created during the South Florida real estate boom that began in 2003 for a combined $692 million as of June 30, 2013, according to Palm Beach County Property Appraiser records.

"The Boca Raton / Deerfield Beach condo market is saddled with a sizable percentage of unsold units from the last South Florida boom-and-bust cycle," said Peter Zalewski, a principal with the Greater Downtown Miami-based real estate consultancy Condo Vultures® LLC. "Even as the South Florida real estate market has gained momentum, the Boca Raton / Deerfield Beach market for developer units has not kept pace with the resale activity occurring in the tricounty region of Miami-Dade, Broward, and Palm Beach. Pricing appears to be a contributing factor to the transaction pace of developer condos in the Boca Raton / Deerfield Beach market."

CondoVultures.com has been profiling condo trends in the second quarter of 2013 in the 10 largest coastal markets in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach counties since the week of July 15, 2013.

Of the condos being marketed for resale in the Boca Raton / Deerfield Beach coastal market, some 19 percent of the units were created since 2003. The average resale asking price for the condo units created since 2003 is more than $505 per square foot, according to Florida Realtors association data.

In the second quarter of 2013, buyers purchased more than 150 condo resale units in the Boca Raton / Deerfield Beach coastal market at an average price of more than $310 per square foot. Of the condo resales in the second quarter of 2013, about 15 percent of the units were created since 2003 and transacted at an average price of about $416 per square foot, according to the data.

Overall, the Boca Raton / Deerfield Beach coastal market has 114 condo projects - with a minimum of 15 units - for a combined 9,500 units, according to the report.

Based on developers selling less than 75 percent of the units created during the boom as of June 30, 2013, the Boca Raton / Deerfield Beach coastal market ranks tops for remaining unsold inventory - in percentage terms - among South Florida’s seven largest condo markets east of Interstate 95 through the end of of the second quarter of 2013, according to the report.

On the preconstruction front, developers have proposed one new condo tower - dubbed the Tower One Fifty Five project - with 209 units in the Boca Raton / Deerfield Beach coastal market as of September 14, 2013, according to the Preconstruction Condo Projects Database™ compiled by the licensed Florida brokerage CVR Realty™.

Overall, at least 161 condo towers with more than 21,850 units have been proposed for the tricounty South Florida region of coastal Miami-Dade, Broward, and Palm Beach as of September 14, 2013, according to the report.

It is important to note there are various stages to a residential real estate transaction in South Florida.

A transaction begins when a property is made available for sale and ends when a title is conveyed from one party to another party as a result of the recording of a deed with the local government. 

As part of the process, a property typically goes under contract and into a due diligence phase by which a deal can be canceled.

The CondoVultures.com new condo sales report is based on completed transactions where a deed is recorded and taxes paid as a result of the sale.   

Condo Vultures® LLC is a real estate consultancy and marketing company based in the 225 Midtown Building at 225 NE 34th St., Suite 209B, Downtown Miami, Florida, 33137. Condo Vultures® LLC can be reached at 800-750-0517.

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