72% of 41,000 Condos Currently for Sale in South Florida Now Priced Under $250,000

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(MIAMI, FL) -- According to a new report by Condo Vultures, more than two-thirds of the 41,000 condominium units and townhouses available for resale in the tricounty South Florida region have an asking price below $250,000.

By comparison, only 40 percent of the nearly 27,000 single-family houses for resale in Miami-Dade, Broward, and Palm Beach counties have an asking price below $250,000, according to the report based on Florida Association of Realtors data.

Overall, 56 percent of the residential properties for resale in South Florida are priced below $250,000, which is a dramatic difference from the peak of the market. In 2005, the median sales price for a residence was $351,000 in Miami, $361,000 in Fort Lauderdale, and $390,000 in Boca Raton-West Palm Beach, according to Condo Vultures.

"Residential real estate prices have tumbled significantly since the peak of the market in the fourth quarter of 2005," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based Condo Vultures, LLC. "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."

Broward County, where Fort Lauderdale, Hollywood, and Pompano Beach are located, has the greatest number of residential properties - 13,655 - available for resale at a price below $250,000. Condos and townhouses account for 73 percent of Broward's overall inventory priced below $250,000 while single-family houses account for the remaining 27 percent in the county, according to the report.

Miami-Dade County, where Aventura, Key Biscayne, and Miami Beach are located, has the second highest number of residential properties - 13,185 - priced below $250,000. Condos and townhouses account for 72 percent, or 9,437 units, of the Miami-Dade residential resale inventory available at prices below $250,000.

In Palm Beach County, where Boca Raton, Delray Beach, and West Palm Beach are located, there are 11,176 residences for resale below $250,000. Condos and townhouses represent 72 percent, or 7,996 units, of the available inventory priced under $250,000.

As the concentration of residences priced under $250,000 have increased so have the number of transactions in that price range.

Nearly 80 percent of the 20,000 residences currently under contract in South Florida are priced below $250,000, according to the report.

In Broward, some 82 percent of the pending contracts are on properties listed for resale at a price below $250,000. In Miami-Dade, 78 percent of the contracts are on properties priced under $250,000. In Palm Beach, 74 percent of the contracts are on resales listed below $250,000, according to the report.

"The irony is, many of the primary users who are looking to take advantage of the downturn in the under-$250,000 price range are struggling to obtain financing to close their deals," Zalewski said. "As many people know, financing a residence in South Florida is a real challenge in today's market, hence the high concentration of lower-priced resales available in South Florida."

The struggles of the primary users to secure their own homes is spurring a growing wave of all-cash investors who are buying up places cheap and immediately renting out their newly acquired residences for more than the monthly expense.

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