Wednesday, April 20, 2011

New Condo Sales Prices Rise 14% In Greater Downtown Miami In Q1

MIAMI, FL--Buyers paid an average of 14 percent more for new units in Greater Downtown Miami -  the epicenter of Florida's condo crash - in the first 90 days of 2011 on a year-over-year basis compared to the same three-month span in 2010, according to a new report from

As the prices for new developer units increased to $348 per square foot in 2011, the average number of sales dropped by 54 percent to 111 transactions per month in the first quarter, according to the report based on the Condo Vultures® Official Condo Buyers Guide To Miami™.

A year earlier in the first quarter of 2010, buyers purchased an average of 239 new condos per month when prices averaged $306 per square foot, according to the report based on an analysis of Miami-Dade County records.

"Bulk buyers, lenders, and those few developers still involved with Greater Downtown Miami's unsold condo inventory have been working - and marketing - diligently for the last six months to increase the average market price to about $350 per square foot," said Peter Zalewski (lower right photo), a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.

"As Greater Downtown Miami heads into the humid summer months after a busy winter tourism season, the question is whether sellers will stand firm on their sales price objectives or roll back prices to generate more transaction velocity given the 29-month supply of unsold condo inventory."

Besides the unsold developer inventory in Greater Downtown Miami, there are more than 1,300 condos built during the boom currently on the resale market and more than 1,000 units being marketed by bulk buyers attempting to resell condos at a premium to individuals investors, according to the licensed Florida buyer brokerage Condo Vultures® Realty LLC. 

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at

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