Vultures Database Average Discount Reaches $357,500 in South Florida

Nearly 900 residences in the Vultures Database™ have closed in the first five months of 2009 at an average discount of $357,500, or nearly 54 percent, a dramatic change from the average price reductions of 44 percent in 2008 and 29 percent in 2007, according to a new report from Condo Vultures® LLC.

Buyers closed 232 single-family houses, condos, and townhouses in the tri-county South Florida region of Miami-Dade, Broward, and Palm Beach counties in May for a daily average of 7.5 transactions. In April, buyers closed an average of 7.0 properties per day. The running average in the first five months of 2009 is 5.9 closings per day on properties in the Vultures Database™, according to the report.

"Discount investors and first-time home buyers are having a noticeable impact on the coastal residential real estate market in South Florida," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures®. "Half of the transactions involving properties in the Vultures Database™ have closed in the last two months. We anticipate the pace will continue at the same level, if not stronger, throughout the summer if conditions remains the same."

In its third year of monitoring South Florida discounts, the Vultures Database™ is comprised of nearly 3,800 condos, townhouses, and single-family houses actively for sale east of Interstate 95 in Miami-Dade, Broward, and Palm Beach counties that have been reduced in price by at least 10 percent and/or $100,000.

Discounts are proving to be the single-most important factor in determining whether a property is sold or not. With conventional financing difficult to obtain, the majority of today's buyers are selectively purchasing with cash or the assistance of government-backed programs, such as the Obama $8,000 tax credit for first-time home buyers.

The average discount on a residence currently for sale in the Vultures Database™ stands at nearly 41 percent, or $275,518, according to the report. Research shows the average residences will trade once an additional 13 percent is shaved off of the asking price.

Condos and townhouses, which account for 71.9 percent of the total inventory, are discounted by an average of 41 percent, or $212,779. Single-family houses, which account for 28.1 percent of the Vultures Database™, have been reduced by an average of 40.8 percent, or $435,694, according to CondoVultures.com.

South Florida Inventory Falls By 1.1% To 81,000 Residences

As transactions are closing, South Florida's residential real estate inventory is decreasing. The total number of single-family houses, condos, and townhouses for resale in Miami-Dade, Broward, and Palm Beach counties dropped by 1.1 percent to 81,159 properties, according to a new report from Condo Vultures® Consulting Services.

Residential resale inventory slipped by 888 properties -- an average decrease of 127 properties per day -- between June 15 and June 22 for . On June 1, there were 83,491 residential resales on the market in the tri-county region. (Read More)

Bulk Condo Deal Closes In Greater Downtown Miami
A Miami entity headed by Carlos Mattos paid $203 per square foot for 31 units at the 1060 Brickell condominium in Miami's financial district, according to the Condo Vultures® Bulk Division. Mattos' newly created 1060 Brickell Apartments LLC paid nearly $6.1 million without financing for four studio units, 22 one-bedroom units, and five two-bedroom units with a combined 29,913 square feet of livable space. (Read More)

First-Time Home Buyers Seminar Scheduled For July
First-time home buyers who are itching to get into one of the deeply discounted South Florida residences before the Obama $8,000 tax credit expires in December are expected to turn out in strong numbers for the upcoming Condo Vultures® seminar. 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 in Greater Downtown Miami. Print copies of Condo Vultures® newly published First-Time Home Buyers Guide To South Florida™ will be available for purchase at the seminar. This 18-page guide features a collection of articles about the process, pointing out the essential dos and don'ts in making a first home purchase.
For more information, please contact John Fakler, executive editor of CondoVultures.com, at 800-750-0517 or by email at JFakler@condovultures.com.

Published by Peter Zawleski/Condo Vultures