The pace of new condo closings in Greater Downtown Miami slowed by half in the second quarter of 2009 to 2.7 sales per day, down from an average of 5.2 per deals day in the first quarter of the year, according to a new report from Condo Vultures® LLC.

Buyers purchased 246 units in the 60-block stretch of Greater Downtown Miami between April and June. In the two previous quarters, buyers closed on 466 new Downtown Miami units between January and March, and 441 units between October and December, respectively, according to the Condo Vultures® report based on the Official Condo Buyers Guide To Miami™. 

"A majority of the second quarter closings occurred in three projects: Marina Blue, 1060 Brickell, and the south tower of Brickell on the River," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures®. "Price reductions were the common denominator triggering the increased closing activity in all three condo projects. With financing difficult to obtain in Downtown Miami, all-cash buyers are proving that they are ready to purchase if the price is right."

With the increased activity, Marina Blue - where a bulk deal occurred in December 2008 - is now 99.4 percent closed with only a handful of units of the 516-unit project still in the name of the developer. The south tower of Brickell on the River is now 70.3 percent closed with less than 100 units in the 327-unit tower available.  At the 1060 Brickell condominium, the developer has closed nearly 350 units - 31 units of which closed in a bulk deal in June - out of 576 units for a sellout rate of 59 percent, according to the Condo Vultures® report.

The recent surge in closing activity at the 1060 Brickell project has earned the developer an extension until April 2010 on his $153.3 million construction financing from New York-based iStar FM Loans in a concerted effort to sell more units to individuals rather than bulk buyers at even lower prices. The extension was recorded with Miami-Dade County on June 2.

Developers currently own 9,418 units, or 41 percent, of the 22,737 new units built or still under construction in the Greater Downtown Miami area, stretching from the Rickenbacker Causeway north to the Julia Tuttle Causeway, Interstate 95 east to Biscayne Bay. An additional 11,500 units were built in Greater Downtown Miami between 1963 and 2002, according to the Condo Vultures® Official Condo Buyers Guide To Miami™.  

A year ago in July 2008, developers owned 12,168 units or about 54 percent of the overall inventory built since 2003, according to the report.

Of the 83 new projects in Greater Downtown Miami, some 61 percent of the projects have sold at least 50 percent of their units. More specifically, 36 projects have closed at least 90 percent of their units, and 15 additional projects have closed between 50 percent and 89 percent of their respective units.

There are 16 projects that have closed less than 10 percent of their units, including the north tower in the ICON Brickell condominium complex which has closed 31 units, according to Miami-Dade County records.

Chinese Drywall Impact 'Huge' On Florida Valuations

Eight months ago, hardly anyone knew or cared about Chinese drywall. Today, the full impact of this imported building material has been blamed for metal corrosion, electrical mishaps and potential health problems, which are still unknown.

Most agree, however, that Chinese drywall will have a huge negative impact on South Florida's already troubled real estate market and any home built with significant amounts of it may be worthless.

The actual number of homes constructed with Chinese drywall remains uncertain but estimates suggest that between 35,000 and 100,000 homes and commercial properties across the United States, Canada and the Bahamas were built using this material. (Read More)

First-Time Home Buyers Seminar Site Announced

First-time home buyers who are itching to get into the South Florida real estate market before the Obama $8,000 tax credit expires in December are invited to the upcoming Condo Vultures® seminar, First-Time Home Buyer Dos and Don'ts.

The free seminar will feature a series of industry experts discussing every aspect of a real estate transaction including the essentials for qualifying for the Obama tax credit. The seminar is scheduled from 5:30 pm to 8 pm July 28 at the Doubletree Grand Hotel just north of Greater Downtown Miami.

For more information, please contact John Fakler, executive editor of CondoVultures.com, at 800-750-0517 or by email at JFakler@condovultures.com

Condo Vultures® Deep Discounts of the Week: Properties Built Since 2004

Here is a list of some of the biggest discounts in the Vultures Database™ on properties built since 2004 in Miami-Dade, Broward, and Palm Beach counties:

Miami-Dade County:
Aventura: Waterfront, distressed condo reduced 57 percent.
Bal Harbour: Oceanfront condo discounted 34 percent.
Coconut Grove: Condo discounted 43 percent.
Coral Gables: Distressed condo reduced 45 percent.
Eastern Shores: Distressed house reduced 56 percent.
Miami: Distressed condo discounted 78 percent.
Miami Beach: Bank-owned condo discounted 71 percent.
North Bay Village: Distressed, waterfront condo discounted 53 percent.
North Miami: Bank-owned condo reduced 36 percent.
N. Miami Beach: Bank-owned condo reduced 70 percent.
South Miami: House reduced 38 percent.
Sunny Isles: Distressed, oceanfront condo discounted 42 percent.
Surfside: Distressed, oceanfront condo reduced 60 percent.

Broward County:
Dania Beach: Distressed condo discounted 28 percent.
Ft. Lauderdale: Distressed house reduced 73 percent.
Hallandale Beach: Distressed condo reduced 57 percent.
Hollywood: Distressed condo discounted 68 percent.
Oakland Park: Distressed condo discounted 69 percent.
Pompano Beach: Distressed condo discounted 57 percent.
Wilton Manors: Distressed condo discounted 50 percent.

Palm Beach County:
Boca Raton: House reduced 28 percent.
Boynton Beach: Distressed condo discounted 52 percent.
Delray Beach: Distressed condo discounted 36 percent.
Highland Beach: Waterfront condo reduced 23 percent.
Palm Beach: Distressed condo discounted 23 percent.
Riviera Beach: Distressed condo reduced 64 percent.
West Palm Beach: Distressed, waterfront condo discounted 62 percent.

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Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Don't forget to sign up for our weekly Market Intelligence Report™ for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ or view our Video Gallery. Our new books, the Official Condo Buyers Guide to Miami™ , Miami's Great Condo Crash: A Chronicle of the Boom and Bust™ , and the First-Time Home Buyers Guide To South Florida™ are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database™. This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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