MIAMI, FL--New condo units in the trendy South Beach neighborhood of Miami Beach sold for an average of 39 percent less in the first 90 days of 2011 on a year-over-year basis compared to the same time span in 2010, according to a new report from CondoVultures.com.
The drop in the average price per square foot for a new South Beach condo generated a surge in transactions in the first quarter of 2011, according to the report based on the Condo Vultures® Official Condo Buyers Guide To South Beach™.
If a bulk deal in February at the troubled South of Fifth project (top left photo) is excluded from the new condo sales activity for the quarter, the South Beach market registered 34 sales at an average price of more than $1,125 per square foot in the first 90 days of 2011, according to the report based on an analysis of Miami-Dade County records.
The non-bulk deal pricing in the first 90 days of 2011 represents a decrease of 26 percent compared to the average new condo sales price in the first quarter of 2010, according to the report.
“The South Beach new condo market may not be as price insulated as some sellers had originally thought,” said Peter Zalewski, (middle right photo) a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC
. “Price cuts are typically introduced quietly in the hot and humid summer months, not in the busy winter tourism season when South Beach is at its peak. The unknown is whether the new condo unit prices were cut to stimulate sales momentum or in response to dwindling patience by the sellers.”
Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com
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