Analyzing Price Trends of Property Sold in 2006

Condo Research - A study that follows the following areas: 12,22, 32 ,42 which covers Golden Beach, Sunny Isles, South Beach all the way to North Miami Beach. 8,365 condos were sold, were tracked only transactions that were conducted through realtors.

We segmented the market in 3 different sub markets:

- The low-mid market: up to $799,000

- The luxury market: $800,000-2,000,000

- The super premium market: $2,000,000-10,000,000

Our analysis indicates that:

- 75.4% of units sold were units valued up to $499,000

- 89.9% = $799,000

The largest single segments are units sold up to $300,000, which amounts to 44.2%.

509 condos were sold from $1,000,000 to $2,000,000.

125 condos were sold for more than $2,000,000.

Analysis of condos for sale in June 2006

- There are 10,015 existing condos for sale.

- 60% of units valued up to $499,000

- 80% $ 799,000

- 883 condos valued between $1,000,000 to $2,000,000.

- 433 condos valued for more than $2,000,000.

There is a substantial increase in inventory compared to 2005, with a significant amount of daily additions. We observe also an increase in prices for the units on the market.

Analysis of condos sold in 2006 and projections for 2006

As of June 2006, 2,823 units were sold for the first 6 months, extrapolating on the year, 5,646 will be sold, which constitutes a decline of close to 32% (assuming same trend holds till the end of the year). By projecting sales in every categories we anticipate:

- 90% of existing inventories condos of less than $300,000 to be sold

- 50% existing inventories condos between $300,000- 500,000 to be sold

all existing categories will be left will around 70% of inventory unsold.

Analyzing price trends of property sold in 2006 and its extrapolations for 2006 we expect all segment categories to keep approximately the same percentages as 2005.

-- Published by MLR Realty contributor Eric Harari