Cash Buyers Acquire 83% Of New Condos In Downtown Miami

MIAMI, FL--Despite the efforts of the U.S.-backed mortgage company Fannie Mae, financing was used in only 17 percent of the more than 700 new condo sales in Greater Downtown Miami in the first quarter of 2010, according to a new report from CondoVultures.com.

Buyers acquired nearly 600 units in 29 projects in Greater Downtown Miami in all-cash transactions between January and March.

By comparison, financing was used to acquire less than 120 units in 19 projects in the 60-block stretch, according to the report based on the Condo Vultures® Official Condo Buyers Guide To Miami ™.

"Even though the U.S. government is encouraging lenders to once again finance condo purchases, the results have not been impressive in South Florida," said Peter Zalewski, (bottom left photo)  a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.

"Many lenders claim to be willing to consider writing loans for buyers of condominiums but the end results simply do not support that.

"The current new condo absorption is being driven by all-cash buyers who are purchasing more than four out of every five units in Greater Downtown Miami."

Condo financing is one of the topics that will be discussed at the upcoming Condo Vultures® seminar entitled "An Insider's Assessment Of Florida Banking" on June 1 featuring the Florida Bankers Association's President and Chief Executive Officer Alex Sanchez.

Contact:  Peter Zalewski of Condo Vultures®, 800-750-0517 or by email at peter@condovultures.com.