2,350 New Condos Sell In Downtown Miami In 2009

MIAMI, FL--Buyers purchased 700 new condos from developers in Greater Downtown Miami - the epicenter of South Florida's housing crash - in the fourth quarter, increasing the total number of transactions for the year of 2009 to more than 2,350 units, according to a new White Paper report from CondoVultures.com.

Before any talk of a bottom in Greater Downtown Miami can begin, it is important to consider that the fourth quarter new condo purchases represent a 27 percent decrease on a quarter-over-quarter basis compared to the 955 closings in the third quarter of 2009, according to the CondoVultures.com report.

In the first half of the year, there were 246 new condo closings in the second quarter and 465 new condo closings in the first quarter in Greater Downtown Miami, according to the report.

"Buyers, primarily with cash, purchased an average of 6.5 new condo units per day from developers in 2009," said Peter Zalewski, (top left photo)  a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.

"The buying activity really picked up velocity in the second half of the year once retail condo prices were slashed by lenders from $300 per square foot down to $200 per square foot, which is in many cases below the replacement cost of the finished product.

"The new prices triggered a buying frenzy by foreign nationals with strong currencies and private equity groups that finally began to purchase, completing a dozen condo bulk deals in the Brickell Avenue Area, Downtown Miami, and the Biscayne Boulevard Corridor in 2009."

Zalewski said it is unclear how much of an effect the lack of condo financing in Greater Downtown Miami had on the final transaction totals for 2009.

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