No Florida Mortgage Demand for Condos Leads to No Website

Say goodbye to CondoFlip.com. Due to a lack of Florida mortgage loan activity, the site - created in 2004 to take advantage of investor demand for Miami area residential condos - has closed down.

Mark Zilbert created and built the site as a flipper’s marketplace, a venue where home buyers could post units for resale before the condos were completed.

But the push to invest in pre-construction units has wound down. An over-supply of units has prompted buyers to sit back and see if Florida home prices fall.

In the Miami housing market, there were record numbers of new units. Over 10 years, from 1995 to 2005, fewer than 10,000 residential units were completed, city development data shows. But from September 2005 to September 2006, more than 6,000 units were completed.

The last batch of numbers from the city’s planning department listed more than 22,000 units under construction. Nearly 30,000 more units were approved but had not broken ground.

As posted on the closed site:

“The condo boom was driven by overly ambitious speculators, many of whom had been successful in flipping condos in the past. As condo inventories grew and prices rose, many speculators realized that further purchasing was increasingly risky. So, buyers just stopped buying…. We saw thousands of sellers, and very few buyers. It didn’t make sense for us to maintain a marketplace where there were few buyers.”

Zilbert, president of Miami Beach-based Zilbert Realty Group, couldn’t be immediately reached, but, in a new release, he said buyers “are now taking advantage of the growing inventories of newly completed condos, and they are looking for great deals.”

The hope, therefore, is that Florida mortgage activity picks up in the near future. We’ll keep you updated.