Miami, South Florida Residential Sales Jump 17% As Prices Tumble

Sales of South Florida condominium units and single-family houses jumped on a year-over-year basis by nearly 17 percent in the month of November as buyers picked off bank-owned properties, foreclosures, and deeply discounted residences.

Buyers closed on 1,623 condos and houses in Miami-Dade and Broward counties in November 2008 compared to 1,391 transactions in November 2007, according to the Florida Association of Realtors.

In Miami-Dade, there were 674 sales in November of this year compared to 560 transactions in 2007 for an increase of more than 20 percent. In Broward, there were 949 transactions recorded in November 2008 for a 14 percent increase compared to the 831 transactions a year earlier, according to the data.

“We have been predicting for some time that the number of South Florida residential transactions in November would surprise most people,” said Peter Zalewski, a principal with the Bal Harbour, Fla.-based consultancy Condo Vultures® LLC. “The early indications are that the December closed sales numbers will be just as strong as November's if not stronger. We are getting reports that many all-cash buyers are moving into the market.”

Dropping prices and shrinking residential inventory are two factors that prompting the increased buying.

The average sales price for a South Florida residential property in November was $183,950, down -35 percent compared to $284,700 in November 2007.

Prices in Miami-Dade were down -36 percent to $198,650 in November 2008 from $312,000 a year earlier. In Broward, sales prices have tumbled -34 percent to $169,250 from $257,400 in November 2007, according to the data.

As prices are tumbling, the inventory is decreasing. In November 2008, there were 76,799 properties on the market in Miami-Dade and Broward compared to 82,299 properties in November 2007. The year-over-year drop represents a -6.7 percent decrease, according to the data.

Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ .

Copyright © 2008, Condo Vultures® LLC

South Florida Houses, Not Condos, Offer Deepest Discounts

Single-family houses in coastal South Florida have dropped more in asking price than condominiums and townhouses through the first 11 months of the year, according to the new Vultures Database™ Report for November from Condo Vultures® LLC.

Single-family houses in Miami-Dade, Broward, and Palm Beach counties are down an average of -39 percent, or -$350,874 each, for a total discount of -$523 million through Nov. 30.

Condominiums and townhouses, by comparison, are down an average of -37 percent, or -$202,385 each, for a total discount of -$669 million.

The average discount for all residential product in the Vultures Database™ is -38 percent, or -$248,526 per property, for a total discount of -$1.192 billion through the first 11 months of the year, according to the Bal Harbour, Fla.-based consultancy that produced the report.

“South Florida’s real estate crash isn’t limited only to condominiums and townhouses,” said Peter Zalewski, a principal with Condo Vultures® LLC. “Steep discounts are available on single-family houses, but the choices are much more limited as condominiums account for a majority of the distressed residential properties in the Vultures Database™.”

Single-family houses account for 31 percent, or 1,490 homes, of the total inventory of 4,795 residential properties in the Vultures Database™. Condominiums and townhouses account for the remaining 3,305 properties, or 69 percent, being tracked by Condo Vultures®.

Houses, condominiums, and townhouses are added to the Vultures Database™ when a property is located east of Interstate 95 in the tri-county South Florida area and has fallen in asking price by at least 10 percent or $100,000.

For the year, there have been 1,457 residential properties, including 86 in November, in the Vultures Database™ that have sold at an average discount of -42 percent, or -$321,652 each, according to the report.

Miami-Dade County, where the cities of Aventura, Sunny Isles Beach, and Coral Gables are located, is experiencing the deepest discount in the tri-county area on single-family home prices in the Vultures Database™. Prices in Miami-Dade have dropped a combined -$372 million, or -$358,404 per residence.

Broward County, where the cities of Fort Lauderdale, Hollywood, and Pompano Beach are located, has realized a combined decrease in prices of -$140 million, or -$358,997 per house.

In Palm Beach County, the total discount on single-family houses in the Vultures Database™ is only -$10 million, or -$170,683 per home.

Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ .

Copyright © 2008, Condo Vultures® LLC

Ritz-Carlton Condo Project Cancelled in South Beach

The developers of the proposed Ritz-Carlton Club condominium resort and timeshare in Miami Beach's South Beach neighborhood have cancelled the three-tower luxury oceanfront project, blaming the decision on a lack of available financing, according to the Miami Herald.

A Miami-based entity called 2901 Beach Ventures LLLP, which includes the Lowenstein family's Lionstone Development that already operates the Ritz-Carlton South Beach and luxury condo developer Edgardo Defortuna, planned to develop the high-end residence and timeshare resort.

"If a South Beach project on the ocean with a Ritz-Carlton flag cannot obtain competitive financing, one has to wonder what if anything is financeable today some two months after the Trouble Assets Relief Program bailout was passed," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based consultancy Condo Vultures®  LLC.

Preconstruction prices for the condominiums were starting at $900,000.

The project, which would have been the fifth Ritz-Carlton property to operate in South Florida, planned to incorporate the 12-story Seville oceanfront hotel built in 1955 into the complex. Plans called for the Seville Hotel to be restored with 45 units, and two new towers with a total of 86 units were to be built on the property.

The project called for the Ritz-Carlton Club to stand on 5 acres of land situated on the east and west sides of Collins Avenue at 29th Street, just north of Lincoln Road and south of the newly renovated Fontainebleau resort.

The project's developer paid $25 million for the property in May 2005, and began presales the following year with a schedule to open the first units in late 2009.

Before the construction could begin, the South Florida real estate market came to a halt that was exacerbated by a complete pullback in financing by financial institutions and private lenders.

''There's no debt for development,'' Diego Lowenstein, a partner in the deal, is quoted in the Miami Herald. ``Lenders across the board are not doing anything.''

The Ritz-Carlton Club is not the first high-end condo-hotel project to run into construction financing challenges. The proposed St. Regis Bal Habour Resort & Residences obtained a $30 million loan from the Starwood Vacation Ownership Inc., which has ties to the development company, according to Miami-Dade County records.

In August, the St. Regis Bal Harbour Resort & Residences condominium and hotel began construction of a three-tower complex proposed to have 268 condominium units, 36 condo-hotel units, and 24 fractional units for sale to the public plus 182 hotel rooms and a presidential suite that will be owned by the developer, 9701 Collins Avenue LLC.

The development entity - 9701 Collins Avenue LLC - building the St. Regis Bal Harbour on an 8.9-acre site is a partnership between Starwood Resorts & Hotels Worldwide Inc. - which besides St. Regis also owns the brands Westin, W Hotels, Sheraton, Le Meridien and Four Points - and the nation's largest condominium developer The Related Group .

The loan is secured by the waterfront land that had been long owned by the Sheraton Bal Harbour Joint Venture before the deed was transferred to 9701 Collins Avenue LLC in July 2007. Miami-Dade County's Property Appraiser assessed the value of the land at $125.6 million, or $325 per square foot for the dirt, in 2007.

Prices start at more than $1,000 per square foot. An unknown number of units are under contract.

The development schedule calls for topping off the trio of 27-story glass towers in autumn 2009, and delivery in late 2010.

Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ .

Copyright © 2008, Condo Vultures® LLC

$190 Million Downtown Miami Land Deal May Not Close

Concerns are rising about whether a $190 million land deal for 10 acres in Greater Downtown Miami near the Adrienne Arsht Center For The Performing Arts will close before the end of the year contract deadline.

The Terra Group, the Miami condo developer that built the nearby Quantum on the Bay and 900 Biscayne towers, is under pressure to close by Dec. 31 on the undeveloped land east of Biscayne Boulevard and west of the Miami Herald newspaper headquarters. The land deal does not include the Herald's headquarters, which fronts Biscayne Bay.

McClatchy Co., the owner of the Miami Herald, is the seller under a contract originated in 2005 by the newspaper's former owner Knight Ridder.

"If the deal doesn't go through, we have a valuable piece of land we can sell to someone else," Elaine Lintecum, treasurer of California-based McClatchy, is quoted saying in the Miami Herald.

Terra Group secured the land contract at the height of the condo boom with plans for a mixed-use development that included residential, office and retail space. The Greater Downtown Miami market has since plummeted as residential financing dried up and about 21,500 new condo units have come onto the market.

Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter's blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM .

Copyright © 2008, Condo Vultures® LLC

South Florida Residential Inventory Drops Below 106,000 Properties

For the second week in a row, the number of available residential properties in South Florida has dropped by several hundred units as the number of new pending sales has increased by a smaller amount, according to a new report by Condo Vultures® LLC.

The number of condos, townhouses, and single-family houses actively for sale fell by -0.5 percent on a week-over-week basis to 105,873 properties on Dec. 8, compared to 106,420 properties on Dec. 1. A week prior on Nov. 24, there were 107,527 properties on the market in Miami-Dade, Broward, and Palm Beach counties, according to the report compiled using active listings in the Multiple Listing Service.

As the inventory continues to decrease, the number of pending sales keeps rising. There are now 9,445 condos, townhouses, and single-family houses under contract and preparing to close in South Florida. Compare that to 9,393 residences on Dec. 1 and 9,302 on Nov. 24, according to the report.

“We are experiencing a change in mood in the South Florida real estate market,” said Peter Zalewski, a principal with the Bal Harbour, Fla.-based consultancy Condo Vultures® LLC that produces the weekly inventory report every Monday. “This is not to say that we won’t experience additional inventory increases in the future but at this point the amount of product is showing signs of a steadily decreasing.”

Miami-Dade has the greatest inventory with 40,272 residences, down from 40,475 on Dec. 1 and 40,994 on Nov. 24. Broward has the second highest number of available properties with 36,278, down from 36,364 on Dec. 1 and 36,926 on Nov. 24. In Palm Beach, there are 29,323 residential properties for sale, down -0.9 percent from the 29,581 properties for sale on Dec. 1 and the 29,607 residences on Nov. 24, according to the report.

On a product basis, the number of condos and townhouses slipped -0.4 percent to 60,160 units on Dec. 8 compared to 60,405 units on Dec. 1 and 60,928 units on Nov. 24. The number of single-family houses available slipped -0.7 percent to 45,713 homes on Dec. 8 compared to 46,015 on Dec. 1 and 46,599 homes on Nov. 24, according to the report.

Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ .

Copyright © 2008, Condo Vultures® LLC

Trump Condo Tries Rent-To-Own Program In South Florida

The developer of the newly delivered 384-unit Trump Royale oceanfront condo in Sunny Isles Beach, Fla., has established a leasing program where individuals can rent to own a new luxury unit for a fraction of the carrying costs.

“Rent with an option to buy and apply your rental towards your purchase” is the pitch of a new campaign by Trump Dezer Development to fill up vacant units.

Trump Dezer Development has set aside eight 914-square-foot units with one bedroom and 1.5 bathrooms facing west in the 57-story skyscraper for the rent-to-own program, according to a developer representative.

The rent being sought is $2,500 per month on units with an asking price of $550,000 from the developer. Rental units that had been priced at $2,000 per month have already been leased.

Trump Royale is part of a three-building complex in northern Sunny Isles Beach that features the Trump International Beach Resort hotel and condo-hotel, and the Trump Palace condominium.

This program does not currently apply to Trump Towers I, II, and III, which are located in southern portion of the city of Sunny Isles Beach.

The first buyer to close on a unit (and have the deed recorded) in the Trump Royale condominium paid $2.8 million on Nov. 21, according to government records.

Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ .

Copyright © 2008, Condo Vultures® LLC

New Miami Condo Tower Being Foreclosed By Construction Lender

Construction lender Wachovia Bank has filed a foreclosure lawsuit on the remaining 285 units in the new 42-story Wind by Neo condominium tower in Greater Downtown Miami, according to Miami-Dade County records.

The suit names as defendants the condo tower’s developer, Neo Epoch 2 and its members Lissette M. Calderon, Maria T. Calderon, and Frank Guerra, along with nearly two dozen contractors who are or were working on the project, according to the South Florida Business Journal.

Wachovia seeks “damages for breach of a loan agreement; damages for breach of Notes; [and] to foreclose a mortgage, as recorded in Public Records of Miami-Dade County, Florida,” according to the suit.

Wachovia Bank, the troubled lender that was purchased by Wells Fargo Bank in October, filed the Lis Pendens action, or notice of default, at 2:51 pm Nov. 26, 2008, which was the Wednesday before the Thanksgiving holiday, according to the government records.

Neo Epoch 2, an entity specifically created to build the Wind project by the same individuals from the successful Neo Lofts and Neo Vertika condo towers, obtained a $115 million construction loan from Wachovia Bank in October 2005, according to government records.

Construction on the 489-unit project began in January 2006, and the developer filed the final condominium documents with Miami-Dade County in February 2008. The first closing occurred shortly thereafter on March 5, 2008.

Neo Epoch 2 has closed 204 residential units and four commercial units through Nov. 21, 2008, according to Condo Vultures® LLC’s Official Condo Buyers Guide To Miami.

“We are surprised by the foreclosure action given that the Wind has closed about 42 percent of its total units in a nine-month span,” said Peter Zalewski, a principal with the Bal Harbour, Fla.-based consultancy Condo Vultures® LLC. “Given the current state of the South Florida condo market, any developer who can close an average of 23 units a month really isn’t doing all that bad.”

Greater Downtown Miami is what many consider the epicenter of Florida's condo crash. Between 1963 and 2002, developers built 11,500 units in a 60-block stretch of Greater Downtown Miami. Since 2003, developers have completed or are constructing nearly 23,000 units, pushing the area's total inventory of high-priced units to nearly 34,500.

To date, 17,300 units have been completed with a 70.3 percent closing rate. An additional 4,000 units are coming online early in 2009, and the remaining 1,500 units bill be delivered by 2010.

The Wind is one of three towers (six towers are approved) standing on a 13.5 acre tract on the north bank of the Miami River and immediately west of South Miami Avenue. The site at one time was considered for a possible location for a new Florida Marlins baseball stadium, which instead is being developed in Miami’s Little Havana area.

Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ .

Copyright © 2008, Condo Vultures® LLC

Greater Orlando Has 156,000 Vacant Residential Lots

Greater Orlando has nearly 156,000 vacant residential lots sitting idle in central Florida due to the state’s dramatic housing crash.

Many of the 155,835 vacant lots are located in partially completed new subdivisions in the Central Florida counties of Orange, Osceola, Seminole, Volusia and Lake, according to the Orlando Sentinel.

“The backlog of vacant lots is especially evident in more rural counties, such as Lake and Osceola, where developers rushed in during the housing boom and secured approvals to build on huge tracts of inexpensive land,” according to the Orlando Sentinel.

In Lake County, developers have constructed only 7 percent of the 5,398 new homes that were approved to be built. In neighboring Osecola County, there are 30,806 undeveloped lots ready to be built upon but with no takers.

A chunk of those undeveloped Osceola County lots are in the highly promoted subdivision of Reunion, where only 33 percent of the 1,626 lots have been built upon, according to the Orlando Sentinel.

Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ .

Copyright © 2008, Condo Vultures® LLC

It's Official: Florida Banks Halt All Foreclosures For 45 Days

All foreclosures initiated by Florida banks have been halted for the next 45 days under an agreement reached between the state’s financial industry and the state’s Gov. Charlie Crist.

The statewide initiative will pertain to new foreclosure actions, not the 444,000 property owners who already are in the process of losing their properties to Florida-based banks, according to the Miami Herald.

''This is to help people in a time of need,'' Crist told the Miami Herald. ``This is not for somebody who went and bought a bunch of condos in South Florida on the spec market.''

Greater Downtown Miami, considered the epicenter of the state’s condo crash, has seen inventory grow from 11,500 units built between 1963 and 2002, to an astonishing 34,500 units since 2003, according to Condo Vultures® LLC, a Bal Harbour, Fla.-based consultancy that specializes in distressed South Florida properties.

Alex Sanchez, president of the Florida Bankers Association, said borrowers who want to participate in the program should contact their lender to initiate the process. To qualify, a borrower must have “no involvement with mortgage fraud and be willing to enter into a re-payment plan,” according to the Miami Herald.

Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ .

Copyright © 2008, Condo Vultures® LLC

South Florida Residential Inventory Drops, Pending Sales Rise

South Florida’s number of active residential listings decreased by -1 percent on a week-over-week basis to 106,420 condos, townhouses, and single-family houses, while the number of pending sales increased 1 percent to 9,393 properties on Dec. 1, according to a new report from Condo Vultures® Realty LLC.

A week earlier on Nov. 24, there were 107,527 active listings in Miami-Dade, Broward, and Palm Beach counties, and 9,302 pending sales. In the last week, the number of properties for sale shrunk by 1,107, and the number of pending sales expanded by 91.

"The numbers are reflecting the activity that we are seeing on the street," said Peter Zalewski, the broker-owner of Bal Harbour, Fla.-based Condo Vultures® Realty LLC. "We anticipate today's activity to be reflected in closed sales data announced in January and February."

On a product basis, the amount of single-family house inventory decreased by -1.3 percent to a current total of 46,015 compared to 46,599 a week earlier. The condo and townhouse inventory decreased by -0.9 percent to a current total of 60,405 compared to 60,928 a week earlier.

On a county-by-county basis, Broward had the biggest decrease in inventory falling -1.5 percent to 36,364 from last week’s total of 36,926. Miami-Dade experienced a -1.3 percent drop in inventory, falling to present total of 40,475 from 40,994 a week earlier. Palm Beach had minimal movement, slipping -0.1 percent to 29,581 actively available properties from a total of 29,607 a week earlier.

Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ .

Copyright © 2008, Condo Vultures® LLC