Applied Analysis principal Brian Gordon says land owners and developers are dealing with conservative reactions by the investment community and potential buyers in response to recent reports that a supply-demand imbalance is inevitable. "The vast majority of units in the (construction) pipeline have been sold and their total is exponentially higher than the present market inventory," he says. "While it would have been an unreasonable expectation to believe that all of the projects in the development pipeline would enter the market as planned, it would be equally questionable to conclude that resort and residential condominiums are a passing fad."

One thing slowing pre-sales of new projects are re-sales of recently completed units. As of the end of March, an estimated 754 existing (resale) luxury units were on the market. Those units have an average asking price of $803,900, or $622 per sf. The average price of those that have sold is $764,500, or $537 per sf.