Report: Deepest South Florida Discounts In Palm Beach, Broward Cities

Discounts in the Vultures Database^TM fell to an average of -29 percent on condominiums, townhouses, and single-family houses located in coastal South Florida through June 30, representing a -1 percentage point drop from the -28 percent average price reduction the previous month, according to a new report from Condo Vultures® LLC.

As the average price in the Vultures Database^TM Report dropped in percentage terms, average discounts in dollar terms actually strengthened to -$219,907 through June 30 compared to an average reduction of -$223,067 on May 31, according to the Vultures Database^TM Report for July.

As the average discount drops in percentage terms, several cities in Palm Beach and Broward counties are jumping to the top of the rankings for the deepest price reductions by neighborhood or municipality.

Palm Beach and Broward counties now account for the four markets with the deepest average drop in pricing. It is worth nothing though that the total quantity is limited in comparison to Miami-Dade County.

Royal Palm Beach in Palm Beach County leads the list with one property falling -45 percent. Delray Beach in Palm Beach County ranks second with five properties falling an average of -38 percent. Lantana in Palm Beach County and Oakland Park in Broward County are tied for the third deepest average price drop at -37 percent, according to the report.

The first Miami-Dade County community to make the list at the No. 5 position is Biscayne Park, where the average property drop is -36 percent.

Rounding out the top 10 cities for the deepest discounts are Boca Raton and Palm Beach with a -34 percent average price reduction. Boynton Beach, the Hypoluxo area of Palm Beach County, and North Miami are all tied for the No. 8 position with a -33 percent discount.

"The real estate contagion is expanding at a rapid pace beyond Miami-Dade County to the neighboring South Florida counties of Broward and Palm Beach," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based consultancy Condo Vultures® LLC. "Miami-Dade County still dominates in the number of distressed properties and discounts in the Vultures Database^TM, but the discounts we are tracking in the central and northern portion of the South Florida region are beginning to surpass that seen even in the Miami area."

The Vultures Database^TM tracks properties east of Interstate 95 and/or U.S. 1 in the South Florida region of Miami-Dade, Broward, and Palm Beach counties that have decreased in price by at least 10 percent or $100,000.

The Vultures Database^TM is comprised of 4,729 properties that have been reduced by -$1.04
billion and have languished on the market for an average of 598 days. Condos represent 69 percent of the total inventory, and single-family houses and townhouses the remaining 31 percent of the properties in the database.

There are 3,265 condos in the database that have experienced an average price drop of -29 percent or -$172,360. The number of single-family houses and townhouses total 1,464 properties, where the average drop is -30 percent or -$325,944, according to the report.

Miami-Dade is the source of 3,274, or 69 percent, of the properties in the Vultures Database^TM. Broward has 1,316, or 28 percent, of the properties, and Palm Beach 139 properties, or 3 percent.

Miami-Dade's average discount is -$231,767, which should come as no surprise given the amount of speculative buying that occurred there during the real estate boom from 2004 through 2006. Broward's average discount is -$199,712, and Palm Beach has an average price reduction of -$131,729, according to the data.

Even with the deep average discount of -29 percent, properties aren't being purchased until sellers are willing to reduce prices by an additional nine percent, according to the report.

There have been 603 properties in the Vultures Database^TM that have sold in 2008 at an average discount of -38 percent, or $309,438. In 2007, there were 1,213 total sales for the year that closed at an average discount of -29 percent or -$257,675.

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 .

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