Boynton Beach Real Estate Market Update
Sales remain challenging for many individual Boynton Beach Condo owners Investors are stepping up for bulk purchases,but at prices that are a fraction of that paid and owned by many individual owners. A recent article in The Wall Street Journal told the tale:
The financial clouds hovering over the Monteverde condominium development in Boynton Beach, Fla., were driven away in late spring when an investor bought 118 of the project's 219 units in a "bulk sale," a popular method of moving large numbers of condos in one transaction.
But Dan Berwitz, a sales representative for a computer company who paid $204,000 for a unit in the Monteverde in 2007, has mixed feelings about the deal. He is pleased that the sale will bring financial stability to his building, but he isn't happy that the bulk-sale buyer plans to sell the units far below what he paid, in some cases as low as $100,000. "But unfortunately, right now, there's nothing we can do," he said.
Recent callers to talk shows on Boynton Beach area radio stations echoed this sentiment and frustration as their dreams of home ownership have turned into ghost towns of underfunded condominium communities unable to support club ammenities like pool service or even necessities like landscaping and maintenance.
Bulk sales transactions also occuring San Diego, Phoenix, Las Vegas and other markets in which condo projects mushroomed during the housing boom. It is easy to see the attraction for investors, who are buying units at a sharp discount and in some cases paying less than what it would cost to build. Suggesting eventual recovery, some of the investment firms making these bulk condo purchases believe that over time they can sell them into the market one at a time at substantial profit Moreover, as the result of new law signed in June, bulk owners are no longer classified as developers. Effective July 1, this reduces the iiabilities and warranties investors would have during the re-development phase.
Singer Island Bulk Purchase Made - Toll Brothers has been trying to move condo inventory at their Ocean's Edge at Singer's Island property. Units range from $1.1 million to $3.5 million. They face added competition as last month two out-of-town investment firms entered the market. Lionheart Capital and Elliott Management Corp. of New York paid $120 million a two-thirds empty development at 2700 North Ocean Drive. The units orignally ranged from $1 million to $6 million. On June 8th Zillow showed 28 units for sale and 21 recent sales.
The word from are reattors is that it is an incredible time to be a buyer and the prices that sellers can hope to fetch circa 2002 level prices. Not only is it a buyers' market to choose from, the 30 year fixed conforming mortgage interest rate in the first week of July was at 50 year low level! This makes for exceptional affordability compared to just a few years ago. If you've been fortunate enough to be a renter over the last four years, congratulations and see what your rent payment can now buy! Search for Homes in the Palm Beach MLS
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