Lower Prices = Increased Sales

July 28, 2009 11:43pm by Barry Ritholtz

Go figure:

If you cut prices in half, sales improve.

“Despite a vast oversupply of new condos in downtown Miami, sales have been brisk lately at 1060 Brickell Avenue, a twin-tower development with 570 units in the heart of the upscale Brickell neighborhood. The reason? Prices have been cut in half, to about $200 a square foot . . .

Since 2003, nearly 23,000 new condo units have been added to the downtown skyline, from Brickell Avenue up through the more modest Biscayne Corridor — far more than this city of 400,000 people could absorb. About 9,400 remained unsold at the end of June, according to Peter Zalewski, the owner of Condo Vultures Realty, a local brokerage.”

Surprise!

Source:
As Prices Plummet, Condo Sales in Miami Perk Up
TERRY PRISTIN
NYT, July 28, 2009
http://www.nytimes.com/2009/07/29/business/29miami.html

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