MIAMI-It feels like 2006 again—maybe not with prices, but with the volume of resales. Indeed, more South Florida residences resold this year than in the finale of the real estate boom in 2006.
That’s because buyers are rushing to market to get in on deep discounts on distressed properties, as well as the Obama-funded $8,000 credit for first-time home buyers. So says a new report from CondoVultures.com.
"Today's South Florida real estate market is strictly a function of price, not emotion," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures. "Nearly 7,400 more residential resale transactions have occurred in the year 2010 than in the year 2006 due in large part to the current prices that are 40 percent less on average. Now, consider the widespread concerns that exist today about a possible double-dip or the lack of available financing, and then compare this mood to the bullish outlook and easy credit of 2006."
With just a week left in 2010, about 75,000 single-family houses, condos, and townhouses—an average of 6,250 per month—had sold in Dade, Broward and Palm Beach counties. That compares to less than 67,600 transactions—5,600 per month—in 2006 in the region, according to a new analysis from the licensed Florida sell-side brokerage CVR Realty.
What’s more, the number of resale transactions in 2010 is up 10.4% year-over-year. That compares to more than 67,800 transactions in 2009, 45,700 in 2008, and 47,600 in 2007, according to the analysis based on Florida Association of Realtors data.
This is good news for buyers, but not so good for sellers. Properties are selling, on average, at a 44% discount over 2006, according to Condo Vultures. In 2010, the total dollar amount of completed transactions were about $16.9 billion compared to about $26.9 billion in 2006. Condos and townhomes suffered even more, with a $47% discount over the average $302,400 in 2006.
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