Condos "Spiraling Down" In South Florida

Median Prices Keep Falling, Lending Standards Keep Rising

Believe it or not, Paul Owers of the Sun-Sentinel says there are some interested condo buyers in Broward and Palm Beach Counties where median prices have tumbled below $100,000. But even those contemplating a new purchase are described as "determined not to inherit (the) headaches" of "thousands of empty condos" where "condo boards are raising fees and imposing special charges on the owners who remain." Compounding matters is the fact that Fannie Mae continues to raise the bar for potential buyers with prerequisites like new buildings needing to be 70% pre-sold (up from 51%) before financing is even an option. Examples of 50-70% price reductions include The Whitney in West Palm Beach and The Plaza at Oceanside in Pompano Beach. The high-end units at The Whitney sold in the $600k range a few years ago, but a penthouse unit is currently listed at $301,940. And Owers says units in The Plaza "are listed for sale for about $400,000, less than half of the $900,000 or more they were selling for a few years ago." A local realtor is quoted in the article steering her client away from The Plaza, "afraid that her client would make a deal she'd later regret."