Miami Area Residential & Commercial Real Estate

BOTTOMED OUT

2009-07-28T07:26:00.000-07:00

ORLANDO, Fla. – July 23, 2009 – Florida’s existing home sales rose in June – the 10th Fla. existing home, condo sales upJune's sales surpassed May's. For 2nd month in a row, the existing home median price was higher than previous month's172,900, down 16.1 percent from a year earlier, according to NAR. In Massachusetts, the statewide median resales price was $284,000 in May; in California, it was $267,570; in Maryland, it was $265,724; and in New York, it was $189,000.NAR’s latest housing industry outlook notes the $8,000 tax credit for first-time homebuyers is boosting the sector. “Strong activity by entry level buyers is helping to absorb inventory and allow some existing owners to make a trade,” said NAR Chief Economist Lawrence Yun. “However, the increase in sales is less than expected because poor appraisals are stalling transactions. The big question is how much the appraisal issue will impact the ability of contracts to go to closing.”In Florida’s year-to-year comparison for condos, 5,241 units sold statewide compared to 3,771 units in June 2008 for a 39 percent increase. The statewide existing condo median sales price last month was $112,900; in June 2008 it was $180,400 for a 37 percent decrease. The national median existing condo price was $173,800 in May 2009, according to NAR.Interest rates for a 30-year fixed-rate mortgage averaged 5.42 percent last month, down significantly from the average rate of 6.32 percent in June 2008, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written. Among the state’s smaller markets, the Punta Gorda MSA reported a total of 216 homes sold in June compared to 196 homes a year ago for a 10 percent increase. The existing home median sales price was $145,600; a year ago, it was $141,000 for a 3 percent increase. The market’s existing condo median price last month was $140,000; a year earlier, it was $160,000 for a 13 percent decrease.© 2009 FLORIDA ASSOCIATION OF REALTORS

2009-03-23T07:43:00.000-07:00

MORE GOOD NEWS
The National Association of Realtors says pending U.S. home sales rose 5.1 percent in February to rate of 4.72 million units. Economists had expected sales would fall. That's the second bit of good housing news over the past week -- last Tuesday, the government issued a better-than-expected housing starts report.

2009-03-17T11:53:00.000-07:00

UP UP AND AWAY??????
HOUSING STARTS: The U.S. Commerce Department reported Tuesday that construction of new homes and apartments in February jumped 22.2 percent from January to a seasonally adjusted annual rate of 583,000 units, defying economists' forecasts for a drop in activity. Applications for building permits, considered a reliable sign of future activity, also rose in February by 3 percent.Read the full story:http://click.email.floridarealtors.org/?ju=fe271575736d077f761374&ls=fdf515707c62077b7714767c&m=feff1070756103&l=fecc177274660379&s=fe2b15767767027c771279&jb=ffcf14&t=

TIME TO GET OFF THE FENCE

2009-02-26T07:14:00.000-08:00

It has been said that you will only know that the housing market has hit the bottom after it begins to rise again. Sales in January were up 50% in Florida as compared to a year ago. Sales of foreclosed properties and short sales, plus sales of all "existing Homes" continued to shrink the inventory of properties listed for sale. The median prices of existing single-family homes sold in January, 2009 were at 2002 levels. In Miami-Dade County this level in January, 2009 was $208,100. Those in the know say that it was after 2002 that prices began to soar to unsustainable levels. The above data was reported by the Florida Association Of Realtors. The numbers are County and Florida specific with no allowances being made for individual neighborhoods that may be either ahead, or behind the trends.

ANOTHER MONTH OF INCREASED SALES

2008-12-24T05:43:00.000-08:00

It has been said by some experts that the bottom will be reached when home prices reach 2002-2003 levels. That level was reached in November when the "median" price of single family homes in Miami-Dade County was $224,700 as opposed to $359,300 in November 2007. This is a 37% drop from the same month a year ago. According to The Florida Association Of Realtors this is slightly below 2003 numbers. Sales of homes actually rose 39% in November 2008 over sales for November 2007!

2008-12-03T10:24:00.000-08:00

ONLY GOOD NEWS-AGAIN
FAR (Florida Association Of Realtors) has just released its data for the period ending October 31, 2008. Housing prices are the lowest in four years. Compared to October, 2007 prices in Miami-Dade County have dropped thirty percent (30%)!!!! October was the third month in a row where falling prices led to increased (23%) sales of existing single family homes. The median price of a single family home was $246,800 in October.The President of the area's largest brokerage said that "People are seeing prices they will never see again...." 63% of all listings have an asking price under $300,000.

Talk of funding not being available is nonsense. Ditech is advertising all over the television. We can get 95% financing for qualified buyers. It is true that 100% financing to unqualified buyers and or buyers who refuse to substantiate income is not likely. However, a good to excellent credit rating and cash availability for the down payment and closing costs will get you the home of your dreams. Don't forget that the only time you will know that the market has hit bottom is after it starts to climb again..

2008-11-19T14:08:00.000-08:00

IS THE BOTTOM A MONTH AWAY?
A study released on Wednesday by Mt. Pleasant-based Default Research finds that, while foreclosures in South Florida were up 325 percent from the same time last year, the area saw a decline from September to October.
“Our statistics show that foreclosures are beginning to level off in the region,” Research founder Serdar Bankaci said. “Inventories in the region have been falling for the past few months, and that should result in home prices starting to stabilize by the New Year.”

2008-10-26T07:18:00.000-07:00

IS THIS IT? ARE WE THERE?

Has the South Florida housing market reached the bottom? Based upon numbers just released, some experts think it has. September "existing"- home sales rose for the second straight month compared to a year ago. Better yet, sales of existing-homes in September rose a whopping 5.5% nationwide, and 14% in Miami-Dade over August sales. This is the highest increase since 2004.

The report repeated what is already a fact of life. Banks are unloading properties and neighbors are lowering prices to compete.

The report also stated that the median price for homes in Miami-Dade was now at the 2004 level which was at least three years before the peak prices were reached. Note that none of the above comments apply to condos which are a completely different tale.

Remember our comments of several blogs ago to the effect that you will never know when the bottom has been reached until prices begin to rise again.

2008-10-10T05:44:00.000-07:00

It was Said Here Before.......
In the face of words of doom from the media we have said in prior posts that the housing market is ready, and that money for financing is available at reasonable rates. The interest rate on a 30 year fixed mortgage is now below 6%!!!! Points charged by lending banks are now below 1.0.

Florida Governor Charlie Crist has just assured potential borrowers that money is available "despite the National credit crunch." Crist also urged people to buy now "..because they should be able to get great bargains due to the glut of residential property."

Bank Of America has agreed to restructure loans to more than 80,000 sub-prime and other troubled mortgages in Florida to avoid foreclosure.

No Loans-No Liquidity????????

2008-09-29T13:11:00.000-07:00

4:12 P.M. on September 29th, 2008

The so-called "bailout" package has failed to pass the house. The stock market has closed down more than 700 points. This is the largest point drop ever. The sky is falling? Credit markets have dried up? No money available for mortgage loans? Not true. Below is an e-mail just received from a mortgage broker that I refer to:

"As of today, I can do 95% financing for Residential so long as the loan amount is at or less than 417,000. I don’t know how long that will continue. Condos are limited to 80% LTV."

Homes may be purchased now at 2004 prices, and maybe even 2002-2003 levels!

2008-09-25T05:54:00.000-07:00

MIAMI SALES UP 22%
FAR (Florida Association Of Realtors) has reported Miami-Dade County sales of single family homes sales were up 22% in August 2008 versus August 2007 according to The Miami Herald. Buyers are returning to the market because of the lower prices according to the article. This was the first month since June 2004 that sales have not declined. The median price of a single family home in Miami-Dade fell 30% to $276,000 in August 2006 versus $392,900 in August 2007. Experts disagreed as to whether or not this indicated that the market has hit the bottom because the inventory of unsold homes actually increased. According to the article the inventory of unsold homes across the Country actually did drop. There is one indisputable fact; i.e., that we will never know what/where/when the bottom is, or was until prices begin to rise!u

The Market Is Ready

2008-08-27T07:34:00.000-07:00

August 27, 2008
Almost all reports show that the real estate markets in SE Florida have stabilized. Affordability, taking into account taxes and insurance, are no longer an issue. Property insurance rates have decreased for the past two years. Because of the decline in home prices the property taxes for 2008 have also declined, and will continue to decline as prices fall. The only way you will know for certain that the markets have reached bottom would be after the fact; i.e., after prices begin to rise!!!

The only issue standing in the way of you owning your home today is financing, and your ability to find the appropriate "deal." Interest rates are reasonably low, and certainly competitive with what they have been for the past several years. Some commercial properties may be purchased with as little as 5%-10% down; however, lenders for residential financing "may" require 20%-30% down. Note the use of the word "may" in the previous sentence. Applications will most likely be pointless if you do not have better than decent credit, verifiable income, and sufficient funds for the DP and closing costs.

This blog is NOT saying that current asking prices are what you should pay. Prices continue to decline; however, now is certainly the time to contact a real estate professional, like us, to discuss what you might expect were you to enter the market today! You may well be able to obtain a home well below the current asking price. You will most likely be able to purchase property at 2002 market levels.

It is worth your time to contact us to discuss your present situation. This is especially true if you are renting, living with family, have an expanding family, etc. A discussion costs nothing. Staying in your present circumstances may cost something.

Please contact us @ analar@analar.com, or www.analar.com

Existing home sales edge up 2 percent in May

2008-06-26T11:41:00.000-07:00

Thursday June 26, 10:25 am ET
By Martin Crutsinger, AP Economics Writer
WASHINGTON (AP)
Sales of existing homes edged up slightly in May although median home prices continued to fall.
The National Association of Realtors reported that sales of existing single-family homes and condominiums rose by 2 percent to 4.99 million units last month. It was only the second sales increase in the past 10 months, but it was not viewed as a sustained rebound. Many economists believe that prices will have to decline more before the housing industry can mount a sustained recovery. The median price of an existing home sold in May dropped to $208,600, a fall of 6.3 percent from a year go. That was the fifth biggest year-over-year price decline on records that go back to 1999.

The strength in sales reflected gains in all parts of the country except the South, where sales dropped by 0.5 percent. Sales were up 5.5 percent in the Midwest, 4.6 percent in the Northeast and 2 percent in the West. Paul Bishop, senior economist for the Realtors, said that for the past few months sales have been rebounding in parts of the country that had been hardest-hit by the housing bust, while sales have weakened in some areas that formerly had been immune from the overall downturn. Distressed areas that now are seeing sales gains included Sacramento, the San Fernando Valley and Monterey in California; Sarasota, Fla.; and Battle Creek, Mich.

The inventory of unsold homes dropped by 1.4 percent to 4.49 million units, which represents a 10.8-month supply at the May sales pace, down from a 11.2-month supply in April. That's still about double the inventory level that existed during the five-year housing boom.
"Stabilization in home prices can only occur with buyers returning to the market, so we are encouraged by rising home sales, particularly in distressed markets," said Lawrence Yun, the Realtors' chief economist. However, rising mortgage foreclosures are dumping even more homes onto the already glutted housing market. Many economists predict sales will keep falling through the summer and prices will not start to rebound until the spring of next year.

Wait For Market To Bottom Out?

2008-06-24T12:43:00.000-07:00

WHY?????

Who or what has the super secret insight and knowledge to know, or predict, when the real estate market will bottom out? And ask this question in full awareness that there are different bottom lines by region and type of property.

For example, the commercial warehouse market has remained strong in the Greater Miami area while the housing market has plummeted. The South Florida condo market is a disaster in more ways than you can imagine, but other areas of the country are doing quite well. Some areas of Miami have fallen somewhat while others have totally disintegrated. So where does this leave you? It's really quite simple.

If you want to buy a home, and if you have the cash for the down payment and closing costs, and the credit for financing, then you should be in the market --NOW!!! You should get pre-approved, not pre-qualified, and enter the market -NOW!!! If you are a serious buyer there is absolutely not one reason for you not to get pre-approved. It costs nothing, takes but a few days, and tells you how much a lender will lend, what your monthly payments will be, etc. All of this is information that is useful to you, and it puts you in a strong position when you do enter the market.

So, armed with your pre-approval letter you enter the market and begin your search. You must understand that some properties are already listed at inflated prices which no reasonable seller has a right to expect, and that no lender will ever lend on. However, there are many other properties that have already been discounted, and which are offered at a reasonable price. Even these prices may be inflated and negotiating is called for. The objective is to find a product that you can purchase at roughly 2002 prices plus appreciation to now. It costs you nothing to make an offer, and you will be surprised at what you can do to be enjoying your own home instead of paying rent. We have the patience to help. Please contact us @ www.analar.com.

We Have More Than 300 Miami Area Residential and Commercial Listings For Your Review

2008-06-24T12:31:00.000-07:00

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Visit us @ www.analar.com, or write analar@analar.com, or call us @ 305-386-8042

Short Sales and Foreclosures

2008-06-24T08:45:00.000-07:00

In spite of the current excitement over the supposed opportunities offered by short sales & foreclosures the buyer should beware and carefully consider the downside of moving in this direction. You are advised in the strongest possible words to get an attorney before moving into this area. Short sale and foreclosures must be approved by the bank. This can take time. The banks often use their own contract forms, and they always add addendums to standard contracts. These are not familiar to the typical real estate broker. Additionally, the unsuspecting may incur additional expenses from title issues to serious repair issues since most houses in foreclosure or available at a short sale have been vacant and/or in a serious state of disrepair.

And why take the above risks? If you and your broker work diligently you can purchase a property in the standard manner at the same price as you would get in a foreclosed or short sale property, and without the headaches.