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Miami and Broward, prices still 15 percent below 2006 peak

Miami and Broward, prices still 15 percent below 2006 peak 

Despite a strong resurgence in condo and townhouse resale activity starting from 2011, the average price for a South Florida unit east of I-95 is currently selling at about 15 percent less than at the peak previously reached in the real estate cycle of 2006.

According to the data collected between January and June 2014 by the Southeast Florida MLXchange, buyers have acquired about 1,911 condos and townhouses per month at an average price of  $298 per sq. ft. in Miami-Dade, Broward and Palm Beach counties.

This figure is still far from the average price of $352 per sq. ft. paid by buyers in 2006 and appears to leave space for further price growth. Thanks to the extraordinary influx of international capitals, the overall condo and townhouse resale market in coastal South Florida has turned around by 180° 

The high rental prices landlords were able to obtain from leasing out their units has by no means contributed to the strong interest shown by investors. 

The Miami-Dade County — always the center of international real estate activity in South Florida — has witnessed the greatest rebound in condo and townhouse resale prices among the tricounties. Here, the average condo and townhouse resale price has gone from $375 per sq. ft. in 2006 down to $209 in 2009 and then all the way up to $351 per sq. ft. in 2014.

This means there’s still room for growth, being this number 6% lower than the previous market peak and in a much healthier investment environment.

During the same period, condo and townhouse resales in coastal Broward and Palm Beach County’s condo were, still 35 to 38% down in respect to 2006.

A special mention goes to about Miami Beach, the only one of the seven largest coastal South Florida markets to have a higher average resale price in 2014 than at the peak in 2006. Its universal appeal keeps attracting investors from all over the country and from all over the world and this trend shows still no sign of slowing down.

In 2014, the average investor had paid about $512 per sq. ft. for a condo and townhouse resale at the Beach. This price represents a 7% increase from the $480 per sq. ft. registered in 2006.

Greater Downtown Miami and Sunny Isles Beach are both second among the best performing markets, with a current average resale price down only 2 % from the peak levels.

SPECIAL THANKS TO PETER ZALEWSKI AND TO THE MIAMI HERALD

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