According to a new report from Condo Vultures LLC, Miami real estate property prices have fallen significantly from their peak five years ago. More than two-thirds of the 41,000 condos for sale in Miami and townhomes for resale are listed below $250,000.
Of the 27,000 Miami homes for sale, Broward and Palm Beach counties, 40 % are priced below $250,000.
According to Condo Vultures, the median sales price for a residence in Miami was $351,000 in 2005, $361,000 in Fort Lauderdale and $390,000 in Boca Raton-West Palm Beach.
Peter Zalewski, with the Bal Harbour-based real estate consultancy says, "The challenge for many buyers is the under-$250,000 properties are increasingly located west of Interstate 95, in the suburban areas of South Florida. Prices east of Interstate 95, in the coastal areas, have continuously crept up as buyers have associated the proximity of water with quality."
According to the report, Broward has the most properties (13,655) available for resale below $250,000. Condos and townhouses account for 73% of Broward's overall inventory priced below $250,000, while single family homes account for the remaining 27%.
With 13,185 Miami homes for sale priced below $250,000, Miami isn’t far behind. Condos for sale in Miami and townhouses account for 72%, or 9,437 units, of the residential resale inventory available at prices below $250,000.
There are 11,176 residences for resale below $250,000, in Palm Beach County. Condos and townhouses represent 72%, or 7,996 units, of the available inventory priced under $250,000.
According to the report, nearly 80% of the 20,000 residences under contract in South Florida are priced below $250,000.
Some 82% of the pending contracts are on properties listed for resale at a price below $250,000, In Broward. According to the report, in Miami-Dade, 78% of the contracts are on properties priced under $250,000 and in Palm Beach, 74% of the contracts are on resales listed below $250,000.
Because of this there is an increase of cash investors who are buying Miami real estate properties cheap and then turning around and renting them for more than the monthly expense.
Contributed by MLR Realty
