The number of South Florida condo and townhouse shortsale transactions increased by more than 12 percent in the 2011 compared to the previous year of 2010, according to a new report from www.CondoVultures.com.

Buyers purchased more than 11,350 condos and townhouses as shortsales – a transaction where the purchase price is less than a seller's outstanding loan amount – in Miami-Dade, Broward, and Palm Beach counties in 2011, according to an analysis by the licensed Florida real estate brokerage Condo Vultures® Realty LLC.

Compare this to previous years when buyers purchased nearly 10,100 condos and townhouses as shortsales in 2010 and nearly 5,550 shortsales in 2009, according to the analysis of Florida Realtors association data.

The number of shortsale transactions in South Florida has increased significantly from 2008 when buyers purchased fewer than 1,250 condos and townhouses in cooperation with resistant lenders, according to the report.

As the number of South Florida shortsale transactions increases, the median resale price for a condo and townhouses shortsale has decreased annually since 2008.

In 2011, buyers paid a median price of $76 per square foot for a condo or townhouse shortsale in South Florida.

A year earlier in 2010, buyers paid a median price of $86 per square foot.

In the previous two years, buyers paid a median price of $99 per square foot in 2009 and $132 per square foot in 2008, according to the report.

As of Jan. 3, 2012, nearly 4,000 condos and townhouses are on the resale market as shortsales in South Florida at a median asking price of $86 per square foot, according to the report.

Shortsales represent about 17 percent of the nearly 23,600 condos and townhouses on the resale market where the median asking price is $161 per square foot.

As for pending deals, 7,150 condos and townhouse shortsales are under contract waiting to transact, according to the report.

Shortsales represent about 60 percent of the nearly 12,000 condos and townhouses that are under contract waiting to transact, according to the report.

Condo and townhouses transactions that were never listed on the Multiple Listing Service are not included in this report.

It is important to note there are various stages to a residential real estate transaction in South Florida.

A transaction begins when a property is made available for sale and ends when a title is conveyed from one party to another party as a result of the recording of a deed with the local government.

As part of the process, a property typically goes under contract and into a due diligence phase by which a deal can be canceled.

Condo Vultures® LLC is a real estate consultancy and marketing company based at 1005 Kane Concourse, Suite 205, Bal Harbour, Florida, 33154. You can reach Condo Vultures® LLC at 800-750-0517.

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