Condo Vultures: Cash still king in condo buys.
Cash continues to be king when it comes to buying condos. A new report by Condo Vultures LLC finds that buyers paid cash for nearly 600 units in 29 projects in the greater downtown Miami area from January through March. Fewer than 120 units in 19 projects were financed, according to the Bal Harbour-based real estate consultancy.
“Even though the U.S. government is encouraging lenders to once again finance condo purchases, the results have not been impressive in South Florida,” said Peter Zalewski, a principal with Condo Vultures. “Many lenders claim to be willing to consider writing loans for buyers of condominiums, but the end results simply do not support that.”
The report found buyers obtained nearly three-dozen mortgages – the greatest number in the downtown market – in Icon Brickell. Earlier this month, about half of the 1,800 units in the three-tower complex were handed back to the lender.
The next-highest concentration of financed mortgages was at 500 Brickell, across the street from Icon Brickell, according to the report.
The Ivy condominium, on the north bank of the Miami River, rounded out the top three.
Fannie Mae has been working to easing certification guidelines and has created a special team to review applications for new Florida projects seeking approval.
Fannie Mae approved 70 Florida condominiums in the first four months of the year, after approving 146 projects in the state in 2009. That’s significantly better than in 2008 when no Florida condo projects were granted Fannie Mae approval, according to the report.
