Related ISG expects inventories under $600,000 to be gone in one year's time.

Statistics from Related ISG show that the condominium inventory count in South Florida has been decreasing at a much faster rate this year compared to previous years. The evidence has led analysts to conclude that Americans are once again buying homes.

The following data, from a press release from the Related Group, depicts condos sales in a diverse set of South Florida regions; comparing condos sales in each region between the periods “2005 to January 2011” and “January 2011 to September 30^th, 2011.”  The data suggests a substantial increase in the rate at which condos are being sold in the January to September 30^th, 2011 period as compared to previous years.

In Miami Beach and South Beach, 2,572 condos had been built in 2005. By January 2011, 1,380 (54 percent) had been sold, leaving 1,192 left in inventory. By September 30^th, 2011, 1,898 (74 percent) condos had been sold with 674 remaining in inventory — 20 percent of the original inventory was sold in nine months time whereas between 2005 and January of 2011, sales averaged at 14.8 percent per year.

In Downtown Miami and Brickell, 17,502 condos had been built in 2005. By January 2011, 13,046 (74.5 percent) percent of that inventory had been sold, leaving 4,456 in inventory. As of September 30^th, 2011, 14,605 (83 percent) condos had been sold, leaving 2,897 remaining in inventory.

In Aventura and Sunny Isles, 4,092 condos were built in 2005. By January 2011, 3,106 (76 percent) had been sold, leaving 986 remaining in inventory. As of September 30^th, 2011, 8,825 (93 percent) condos had been sold, leaving 267 condos remaining in inventory.

In Hallandale and Hollywood, 2,238 condos had been built in 2005. By January 2011, 2,013 (90 percent) had been sold, leaving 179 condos left in inventory. As of September 30^th, 2011, 2,142 (96 percent) had been sold, leaving 96 condos left in inventory.

In the greater Ft. Lauderdale area, 5,135 condos were built in 2005. By January 2011, 4,450 (87 percent) condos were sold, leaving 1,114 left in inventory. As of September 30^th, 2011, 4,941 (96 percent) condos had been sold, leaving 194 condos remaining in inventory.

It could be due to mortgage and financing rates being at a record time low, or the 20 percent down available to homebuyers; regardless, the data pinpoints that sales are on the rise – a trend that analysts at Related ISG expect to continue. In fact, Related ISG predicts that in one year, all inventories under $600,000 will be gone.