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Apr 7

South Florida Condos - Selling For More

by Mary Teresa Fowler

South Florida Condos

Condo Vultures reports that the average resale asking price of condos and townhouses near the coast in South Florida is almost four times more than similar homes in the suburbs of the tricounty area. This Florida region has about 5.5 million people living from south to north in Miami-Dade, Broward, and Palm Beach counties. Interstate 95 bisects each county with the coast to the east and suburbs to the west.

South Florida Counties

Miami-Dade County

  • Aventura

  • Miami Beach

  • Sunny Isles Beach

Broward County

  • Fort Lauderdale

  • Hollywood

  • Pompano Beach

Palm Beach County

  • Boca Raton

  • Delray Beach

  • West Palm Beach

Distinct Markets

An average condo resale east of Interstate 95 is $523,800. That figure compares to a $118,200 for a unit in suburbia. Basically, South Florida condo resales reflect two distinct markets.

Coastal condos are at least $405,600 more expensive than suburban units. This significant difference can be attributed to South Florida’s double-digit unemployment rate (higher than the national average). In addition, suburban home owners want to hold on to their homes.

Usually, condos west of Interstate 95 are owned by middle-class households and local investors. Wealthy first-timers, second-home buyers, and all-cash investors are driving the resales of coastal condos and townhouses. Investors and buyers who own homes already are better equipped to handle economic uncertainty.

Market History

During the real estate boom beginning in 2003, developers built 185,000 condominiums – 100,000 created in suburban rental projects. The units were converted to condos and purchased by primary owners and local investors. More than half of the remaining 85,000 units were built in the seven expansive coastal markets of Greater Downtown Miami, South Beach, Sunny Isles Beach, Hollywood/Hallandale Beach, Downtown Fort Lauderdale and the Beach, Boca Raton/Deerfield Beach, as well as Downtown West Palm Beach and Palm Beach Island.

By the end of 2010, at least 7,400 new condos in these seven areas were still on the market. Developers and lenders had refused to cut prices to investor-friendly levels. Therefore, investors shied away from new construction and turned to the resale market.

Current Market

Within the tricounty South Florida region near the coast, almost $11 billion in condo and townhouse resales are available for purchase at an average price of $335,000 per unit. Condo and townhouse resales in South Florida's coastal markets make up almost 84% of the total amount for resale. More than 32,600 units are up for resale in Miami-Dade, Broward, and Palm Beach counties.

As of March 26, 2011, coastal units account for almost 54% (17,500 units) of available resales compared to 46% or 15,100 units located west of Interstate 95. More units are available for purchase in Miami-Dade County than Broward and Palm Beach counties. Almost 68% of the 12,600 units on the resale market in Miami-Dade County are located east of Interstate 95. Only 4,100 units are listed for resale in suburbia.

Would You Prefer A Coastal Condo Or Suburban Unit?

Search Miami Condos for Sale and get up to 2% Cashback from Realtors!


WorldPropertyChanel.com; Coastal Condos in South Florida Selling at 400% Premium to Suburban Units; Michael Gerrity; March 30, 2011

Image courtesy of perfect-vacations.com

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