MIAMI, FL--A supply of more than 18 years of new condo units created during the South Florida real estate boom remains unsold in the coastal Boca Raton / Deerfield Beach market as of March 31, according to a new report from CondoVultures.com.
Buyers acquired five developer units in the coastal Boca Raton / Deerfield Beach market between January and March of 2011, leaving more than 375 units still unsold from the real estate boom that began in 2003, according to the report based on the Condo Vultures® Official Condo Buyers Guide To Boca Raton / Deerfield Beach™.
The total number of new condo sales in the first quarter of 2011 represents a 72 percent drop in transactions on a year-over-year basis compared to the first 90 days of 2010 when buyers acquired 18 units, according to an analysis of Palm Beach County records.
At the current pace of five developer unit sales per quarter, the coastal Boca Raton / Deerfield Beach market has more than 75 quarters of remaining new condo inventory available, according to the report.
“The coastal Boca Raton / Deerfield Beach condo market has the highest percentage of unsold developer units created during the boom in the seven largest coastal markets,”said Peter Zalewski (bottom left photo), a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.
“More than one-out-of-every-three condos created in the Boca Raton / Deerfield Beach market during the boom have not yet sold. The biggest factor driving this trend is the unwillingness of developers to slash prices.
”Going forward, it will be interesting to see if developers adopt a change in strategy given the new product overhang - and the associated carrying cost with these units - in the coastal Boca Raton / Deerfield Beach market.”
Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com
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