150 New Condos Unsold In Downtown West Palm Beach From Crash Of 2007 Published on 9/17/2013 3:41:31 PM
Nearly 96 percent of the more than 3,425 condos created in the Downtown West Palm Beach and Palm Beach Island coastal market from the last South Florida real estate boom-and-bust cycle have been sold as of June 30, 2013, according to a new report from CondoVultures.com.
Buyers acquired more than 30 developer units for a combined $13.2 million in the Downtown West Palm beach and Palm Beach Island market between April and June of 2013, according to the analysis based on the Condo Vultures® Official Condo Buyers Guide To Downtown West Palm Beach and Palm Beach Island™.
The unsold developer inventory does not include the several hundred units that were acquired by investment groups in earlier bulk deals but have not yet been resold to individual buyers, according to an analysis of Palm Beach County records.
"The Downtown West Palm Beach condo market is finally nearing the overall sellout of the developer inventory that was built during the last South Florida boom-and-bust cycle that began 2003," said Peter Zalewski, a principal with the Greater Downtown Miami-based real estate consultancy Condo Vultures® LLC. "The approaching sellout has been bolstered by a series of bulk deals in the last year that have significantly reduced the amount of unsold boom-era condo inventory in the Downtown West Palm Beach market. As of late, the key to the developer condo unit transactions has been the deep discounting of prices.
"Going forward, the unanswered question is whether the current condo prices will rise to the extent necessary to warrant the 10 new condo towers that are proposed for the West Palm Beach market as of September 2013."
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.
The Condo Vultures® Market Intelligence Report™ is scheduled to publish a 10-part weekly series that analyzes the markets of Greater Downtown Miami, South Beach, Bal Harbour / Surfside / Bay Harbor Islands, Sunny Isles Beach, Aventura, Hollywood / Hallandale Beach, Downtown Fort Lauderdale and the Beach, Pompano Beach, Boca Raton / Deerfield Beach, and Downtown West Palm Beach and Palm Beach Island.
The Downtown West Palm Beach and Palm Beach Island condo market is defined as Palm Beach Lakes Boulevard south to Southern Boulevard, and the Atlantic Ocean west to Australian Avenue / Interstate 95, according to the analysis based on the Condo Vultures® Official Condo Buyers Guide To Downtown West Palm Beach and Palm Beach Island™.
As of June 30, 2013, less than 150 developer condo units - located in a pair of projects - were unsold in the Downtown West Palm Beach market, according to an analysis of Palm Beach County Property Appraiser records.
Between 2003 and the second quarter of 2013, buyers have purchased more than 3,275 condo units - created since 2003 - for more than $1.25 billion in the Downtown West Palm Beach market, according to the report.
Overall, the Downtown West Palm Beach and Palm Beach Island market has 74 condo projects - with a minimum of 15 units - for a combined 7,300 units, according to the Condo Vultures® Official Condo Buyers Guide To Downtown West Palm Beach And Palm Beach Island™.
On the resale market in Downtown West Palm Beach, more than 275 condos are available at an average asking price of about $216 per square foot as of September 22, 2013. An additional 36 condo resales are under contract waiting to transact at an average price of about $230 per square foot, according to licensed Florida brokerage CVR Realty™.
In the second quarter of 2013, buyers acquired nearly 135 condo units at an average price of less than $270 per square foot in Downtown West Palm Beach, according to data from the Florida Realtors association.
As the developer unit inventory shrinks but resale prices remain soft, at least 10 new condo towers with more than 1,800 units have been proposed in the Downtown West Palm Beach area as of September 22, 2013, according to the Preconstruction Condo Projects Database™ compiled by the licensed Florida brokerage CVR Realty™.
Overall, more than 170 condo towers with nearly 22,500 units have been proposed for the tricounty South Florida region of coastal Miami-Dade, Broward, and Palm Beach as of September 22, 2013, according to the Cranespotters.com.
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.
Don't forget to sign up for our weekly Market Intelligence Report™ for detailed condo reports to stay informed on the latest market trends and to find out about our various Condo Vultures® Seminars. Looking for a property at a deep discount? Take a peek at the Vultures Database™ or view our Video Library. Looking for bulk projects direct from developers or lenders? Visit the Condo Vultures® Bulk Deals Database™. Our new books, the Official Condo Buyers Guide to Miami™, Official Condo Buyers Guide To South Beach™, Official Condo Buyers Guide to Sunny Isles Beach™, Official Condo Buyers Guide to Downtown Fort Lauderdale and the Beach™, Official Condo Buyers Guide to Hollywood / Hallandale Beach™, Official Condo Buyers Guide to Downtown West Palm Beach™, and Official Condo Buyers Guide to Boca Raton / Deerfield Beach™, are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database™.
© Copyright 2013. Condo Vultures® LLC. All Rights Reserved.