Condo, Townhouse Shortsales Slow By 13% In South Florida In 2012 Published on 1/3/2013 1:51:00 PM
Buyers purchased 13 percent fewer condo and townhouse shortsales in South Florida in 2012 on a year-over-year basis compared to the same January through December period in 2011, according to a new report from CondoVultures.com.
Fewer than 875 condo and townhouse shortsales transacted on average per month in the the year 2012 in Miami-Dade, Broward, and Palm Beach counties compared to an average of nearly 1,000 condo and townhouse shortsale resales monthly during the same 12-month span in 2011, according to an analysis by the licensed Florida real estate brokerage CVR Realty™.
In the year 2010, buyers purchased an average of nearly 850 condo and townhouse shortsales monthly in the tricounty South Florida region, according to the analysis based on Florida Realtors association data.
Even as the number of South Florida condo and townhouse shortsales slows, the median price for distressed units also dropped in the year 2012.
The median transaction price for condo and townhouse shortsales in South Florida slipped to about $72 per square foot in the year 2012 compared to about $76 per square foot between January and December of 2011 and about $86 per square foot in the same 12-month period in 2010, according to the data.
It is unclear what impact the recently signed $25 billion National Mortgage Settlement Agreement reached in February 2012 between the federal and state governments with the nation’s five largest services could have on condo shortsales in South Florida going forward in the upcoming quarters.
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 Jan. 3, 2013, more than 6,600 condo and townhouse shortsales are under contract waiting to transaction at a median asking price of about $72 per square foot, according to the data.
An additional 1,600 condo and townhouse shortsales are actively available for purchase at a median price of more than $80 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 nearly 900 properties as of Jan. 3, 2013. The median asking price is less than $75 per square foot.
Additionally, more than 350 shortsale units available for purchase have three bedrooms at a median price of about $93 per square foot and nearly 325 units have one bedroom available for purchase at a median price of about $95 per square foot, according to the data.
Condo and townhouse shortsale units with at least four bedrooms total about 50 properties available for resale at a median price of less than $70 per square foot. Studio units marketed as shortsales account for less than 20 properties on the resale market at a median price of more than $265 per square foot as of Jan. 3, 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.
CondoVultures.com is scheduled to profile condo trends in the fourth quarter of 2012 in the 10 largest coastal markets in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach counties beginning the week of Jan. 14, 2013.
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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