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3,400 New Condos Unsold In South Florida As Of Q2 2012 As Deal Pace Slows
3,400 New Condos Unsold In South Florida As Of Q2 2012 As Deal Pace Slows
Published on 9/17/2012 1:49:00 PM

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New condo sales decreased by 19 percent even as the average price per square foot dropped by 10 percent in the second quarter of 2012 in South Florida's seven largest coastal markets compared to the first quarter of 2012, according to a new report from CondoVultures.com.

Even with the decreased sales velocity, the buying activity still reduced the number of unsold developer units from the last South Florida real estate boom to less than 3,400 condos, according to a report based on the Condo Vultures® Buyers Guide™ eBook series.      

In the second quarter of 2012, buyers paid more than $233 million - an average of about $420 per square foot - for nearly 450 condo units in projects built since 2003 east of Interstate 95 in the coastal markets of Greater Downtown MiamiSouth BeachSunny Isles BeachHollywood / Hallandale BeachDowntown Fort Lauderdale and the BeachBoca Raton / Deerfield Beach, and Downtown West Palm Beach and Palm Beach Island.  

"South Florida's new condo sales pace slowed in the second quarter of 2012 despite a drop in the average price per square foot being achieved by developers," said Peter Zalewski, a principal with the Greater Downtown Miami-based real estate consultancy Condo Vultures® LLC. "The slowdown in new condo sales velocity comes as fewer units are available and financing remains a challenge. Another factor that may be contributing to the slowdown in new unit transactions is the number of proposed condo projects that have suddenly come onto the market in recent months."

With the second quarter of 2012 developer sales, buyers have now purchased nearly 45,400 condo units for about $22.4 billion in South Florida's seven largest coast markets between 2003 and the second quarter of 2012, according to an analysis of Clerk of the Court records from Miami-DadeBroward, and Palm Beach counties. 

The total number of unsold new condos does not include any of the more than 8,000 units that were purchased in bulk transactions by investment groups that plan to one day resell the units at a premium, according to the Condo Vultures® Bulk Deals Database™

In anticipation of the eventual sellout of the new condos created during the last boom, developers are already proposing at least 69 new condo towers in South Florida, according to the Proposed Condo Projects list compiled by the licensed Florida brokerage CVR Realty™

As of the third quarter of 2012, one project has already been completed and an additional 11 new condo towers have formally initiated construction, according to a recent CondoVultures.com report

Since the week of July 16, 2012, the Condo Vultures® Market Intelligence Report™ has been publishing a seven-part series analyzing residential real estate trends in the second quarter of 2012 in the seven largest coastal condo markets in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach counties.   

To read the market-specific new condo sales reports for the second quarter of 2012, please visit the Archives or the Market Intelligence Report™ section of CondoVultures.com. 

During the South Florida real estate boom, developers created more than 145 projects with more than 34,000 units in the three Miami-Dade County markets of Greater Downtown Miami, South Beach, and Sunny Isles Beach. 
 
An additional 69 projects with nearly 10,200 units were created in two Broward County markets of Hollywood / Hallandale Beach and Downtown Fort Lauderdale and the Beach.

Developers created more than 25 projects with nearly 4,500 units in the two Palm Beach County markets of Boca Raton / Deerfield Beach and Downtown West Palm Beach / Palm Beach Island.   

In the four decades prior to the boom, developers created nearly 700 condominium projects with more than 76,000 units in the same seven coastal markets in South Florida, according to a comprehensive study undertaken for the report based on the Condo Vultures® Buyers Guide™ eBook series.  
  
On a market-by-market basis, Greater Downtown Miami has the distinction of being the single neighborhood with the greatest number of new condos created during the boom with more than 22,200 units. 
At the end of the second quarter of 2012, nearly 1,300 units remained under the control of the original developers, according to a recent CondoVultures.com report.    

Sunny Isles Beach ranks second with more than 6,300 new units created during the boom. As of June 30, 2012, Sunny Isles Beach has about 400 unsold developer units, according to a recent CondoVultures.com report.  

The popular South Beach neighborhood of Miami Beach ranks third with nearly 5,600 new units created since 2003. At the end of the second quarter of 2012, South Beach had less than 650 unsold developer units, according to a recent CondoVultures.com report

Downtown Fort Lauderdale and the Beach claimed the No. 4 spot with nearly 5,250 new units - including the newly created 171-unit Fort Lauderdale Residences also known as the W Fort Lauderdale - added during the boom. 

As of June 30, 2012, the Downtown Fort Lauderdale and the Beach market has less than 200 developer units unsold, according to a recent CondoVultures.com report.

The Hollywood / Hallandale Beach market ranks fifth with nearly 5,000 new units created since 2003. At the end of the second quarter of 2012, the Hollywood / Hallandale Beach market is statistically sold out with less than five unsold developer units, according to a recent CondoVultures.com report
 
The Downtown West Palm Beach / Palm Beach Island market ranks sixth in South Florida based with more than 3,400 new units created during the boom. As of June 30, 2012, the Downtown West Palm Beach and Palm Beach Island markets has nearly 560 unsold developer units, according to a recent CondoVultures.com report.
 
At the bottom of the list with the fewest number of new units created is the Boca Raton / Deerfield Beach market, where less than 1,050 condos were added during the boom. At the end of the second quarter of 2012, the Boca Raton / Deerfield Beach market has about 300 units unsold, according to a recent CondoVultures.com report
 
Condo Vultures® relied on public records and private research to complete this study over the course of the last three years.
 
The results of this exhaustive researching of deeds, condominium documents, and government files is the basis for a series of seven ebooks titled the Official Condo Buyers Guide™. The guides for Greater Downtown Miami, South Beach, and Sunny Isles Beach are already on available for purchase on Amazon.com.
 
This information is also the foundation for a new Condo Ratings Agency™ service designed to provide guidance on the financial stability of nearly 1,000 condo projects - old and new - with 125,000 units east of Interstate 95 in Miami-Dade, Broward, and Palm Beach counties.

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 2012. Condo Vultures® LLC. All Rights Reserved.   


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