We are already aware that South Florida and the Miami condos market is in a slump, but some buildings are managing worse than others.
Prices in some complexes have fallen by at least 75% since peaking, bringing on huge financial losses for some owners and lenders.
According to a new analysis of first-quarter sales from Miami condos research firm CondoReports.com in a ranking of the 10 worst-performing projects, Keystone Towers in North Miami topped the list, with unit prices dropping 81 percent since peaking in 2007.
Sales in Keystone Towers which was converted to condominiums during the boom peaked in 2007 with 20 units selling for an average of $334 per square foot. The price had fallen to $62 per square foot, at the end of March.
That means an owner who bought a 1,000-square-foot unit for $334,000 would have seen a similar unit go for $62,000. The loss in value: $272,000.
This was not the same for every building. Three projects located in what generally are considered desirable submarkets actually saw sale prices increase, supporting analysts' claims that the recovery of the housing market will be submarket specific and even building specific.
However, seven of the top 10 best performers still saw values drop.
The analysis looked at closed sales in 2,000 Miami condos and town-home complexes in Miami-Dade County built before 2008. Projects making the list had at least three sales in the first quarter.
''The fact that a fraction of 1 percent of the buildings in the study experienced increased pricing is indicative of a market where prices have decreased nearly across the board with few exceptions. The major difference, of course, is the degree of the price declines,'' Adam Cappel, president of CondoReports.com, said in a statement.
Contributed by MLR Realty
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