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Condo, Townhouse Shortsales Tumble 45% In South Florida In Q3 2013
Condo, Townhouse Shortsales Tumble 45% In South Florida In Q3 2013
Published on 10/1/2013 6:49:00 PM

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Buyers purchased 45 percent fewer condo and townhouse shortsales in South Florida in the third quarter of 2013 on a year-over-year basis compared to the same July through September period in 2012, according to a new report from CondoVultures.com

Fewer than 500 condo and townhouse shortsales transacted on average per month in the third quarter of 2013 in Miami-DadeBroward, and Palm Beach counties compared to an average of nearly 900 condo and townhouse shortsale resales monthly during the same three-month span in 2012, according to an analysis by the licensed Florida real estate brokerage CVR Realty™

In the third quarter of previous years, buyers purchased a monthly average of more than 1,040 condo and townhouse shortsales in 2011, an average of about 885 units in 2010, and an average of nearly 555 units in 2009 in the tricounty South Florida region, according to the analysis based on Florida Realtors association data. 

CondoVultures.com is scheduled to profile condo trends in the third quarter of 2013 in the 10 largest coastal markets in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach counties beginning the week of October 14, 2013.

As the number of South Florida condo and townhouse shortsales has tumbled, the median price for distressed units rose 24 percent in the third quarter of 2013. 

The median transaction price for condo and townhouse shortsales in South Florida increased to about $88 per square foot in the third quarter of 2013 compared to about $71 per square foot between July and September of 2012, according to the data. 

Compare this to the third quarter of previous years when condo and townhouse shortsales sold at a median price of about $75 per square foot in 2011, $86 per square foot in 2010, and nearly $100 per square foot in 2009, according to the data. 

It is unclear what impact the $25 billion National Mortgage Settlement Agreement reached in February 2012 between the federal and state governments with the nation’s five largest services is having on condo shortsales in South Florida. 

The settlement incentivizes the mortgage servicers to consider various options – including principal reductions, mortgage modifications, and shortsales - before filing to foreclose on borrowers who owe more than their residences are worth currently, according to the agreement.

As of October 1, 2013, nearly 4,900 condo and townhouse shortsales are under contract waiting to transact at a median asking price of about $77 per square foot, according to the data. 

An additional 1,380 condo and townhouse shortsales are actively available for purchase at a median asking price of about $90 per square foot on the resale market in South Florida.

The South Florida condo and townhouse shortsale market is dominated by two-bedroom units, which account for more than 750 properties as of October 1, 2013. The median asking price is about $87 per square foot.

Additionally, more than 320 shortsale units available for purchase have three bedrooms at a median price of about $91 per square foot and about 250 units have one bedroom available for purchase at a median price of nearly $95 per square foot, according to the data. 

Condo and townhouse shortsale units with at least four bedrooms total more than 35 properties available for resale at a median price of less than $115 per square foot. Studio units marketed as shortsales account for less than 15 properties on the resale market at a median price of nearly $300 per square foot as of October 1, 2013, according to the report.

The completed resales do not reflect any deals that may have transacted without being marketed on the Southeast Florida MLXchange.

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.  


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