South Florida Sells More Residences in 2010 Than 2006 Peak, But at Highly Discount Prices

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According to a new report from Condo Vultures, more South Florida residences resold in 2010 than in the last year of the real estate boom in 2006 as buyers rushed in this year to take advantage of deep discounts on distressed properties and a government-funded $8,000 first-time home buyer tax credit.

With a week left to go in this calendar year, nearly 75,000 single-family houses, condos, and townhouses - an average of 6,250 per month - have already resold in 2010 compared to less than 67,600 transactions - 5,600 per month - in 2006 in the same tricounty region of Miami-Dade, Broward, and Palm Beach counties, according to Condo Vultures.

On a year-over-year basis, the number of resale transactions in 2010 is up 10.4 percent compared to 2009 when more than 67,800 transactions - 5,650 per month - occurred. South Florida resales totaled only 45,700 - 3,800 per month - in 2008 and nearly 47,600 - 4,000 per month - in 2007, according to the analysis based on Florida Association of Realtors data.

"Today's South Florida real estate market is strictly a function of price, not emotion," said Peter Zalewski, principal with the Bal Harbour, Fla.-based 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."

The 2010 resale statistics suggest that investors continue to have an interest in South Florida residential real estate if priced correctly, industry watchers said.

South Florida's residential resales for 2010 totaled nearly $16.6 billion, an increase of about $1billion from 2009.

As positive as the increase is, the news is not good for sellers trying to unload properties.

The 2010 total dollar amount for completed transactions is $10 billion less than in 2006 when gross resales reached nearly $26.9 billion, according to the report.

At the peak of the market, the average South Florida resale transacted at a price of $398,000 in 2006. In 2010, the average South Florida residential property resold for $221,200, representing a 44 percent discount compared to five years earlier.

Single-family houses resold for an average of $297,000 in 2010 compared to $502,000 in 2006. This is a 41 percent decrease in average pricing from the peak.

Condominium units and townhouses resold in 2010 for $160,400, a 47 percent - or more than $140,000 - decrease off of the $302,400 average in 2006, according to the report.

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