By DARRELL A. HUGHES
The U.S. Treasury Department said Wednesday it had approved five states' plans to aid homeowners in the hope of thwarting foreclosures in communities hit hard by the recession.
State housing agencies in Arizona, California, Florida, Michigan and Nevada will receive a total of $1.5 billion from the Obama administration's "Hardest Hit Fund."
"These states have identified a number of innovative programs that will make a real difference in the lives of many homeowners facing foreclosure," said Herbert Allison Jr., Treasury assistant secretary for financial stability.
Proposals approved Wednesday include programs to help struggling homeowners who owe more than their homes are worth by reducing the principal owed on their loans; to help unemployed or underemployed homeowners make mortgage payments; to facilitate the settlement of second liens, short sales or deeds in lieu of foreclosure; and help with payments in arrears.
The fund—dubbed the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets—was established in February. It aims to provide assistance to states with the highest shares of their populations living in counties in which the unemployment rate exceeded 12% in 2009.
According to Treasury, the states approved to receive aid experienced a 20% or greater decline in average housing prices.
Arizona is set to receive $125.1 million, California $699.6 million, Florida $418 million, Michigan $154.5 million and Nevada $102.8 million.
Five other hard-hit states have plans that are pending. If the plans are approved, those states could get a total of $600 million: North Carolina ($159 million), Ohio ($172 million), Oregon ($88 million), Rhode Island ($43 million) and South Carolina ($138 million).
Treasury officials said they hoped to have decisions on those states' plans by August.
Source: http://online.wsj.com/article/SB10001424052748704629804575325101835373456.html?mod=WSJ_RealEstate_LeftTopNews
—Nathan Becker contributed to this article.
Write to Darrell A. Hughes at darrell.hughes@dowjones.com
The Criscitos has been selling South Florida luxury and commercial real estate for over a decade and has sold over $1 billion dollars of property. They work as a multi-lingual team speaking english, Spanish, Italian and Portuguese. They carved out a niche as a leading boutique real estate company with two distinct divisions -residential and commercial- both personally overseeing by Marcela and Anthony Criscito.
Monday, June 28, 2010
Thursday, June 24, 2010
Bulk buyers target condo market for future profit
Miami-Dade's existing condo sales in May were up more than 70 percent compared with the same month last year. Backed by a multibillion-dollar private equity firm in New York, a team of Miami investors and strategists launched Lionheart Capital this year looking to scoop up choice South Florida condos at rock-bottom prices.
In its first deal, the firm plunked down $120 million this month to buy up 146 units at the 2700 North Ocean Drive towers on Singer Island in Palm Beach County.
It marked the 50th bulk condo purchase in South Florida in the last two years, according to analysis by Peter Zalewski, a principal of the real estate consultancy Condo Vultures.
New figures released Tuesday by the trade group Florida Realtors indicate that investors like Lionheart may be getting into South Florida's fragile condo market at an opportune time -- but they also could be in for a long wait before condo prices return to pre-recession levels.
Single-family homes prices may have already begun to rise, with prices increasing for the second month in a row in Miami-Dade and Broward counties, the Florida Realtors' report found.
Miami-Dade's existing condo sales in May were up more than 70 percent compared with the same month last year, with 972 units sold. That's an increase of 34 percent over April. But with plenty of inventory still on the market, condo prices were still down, dipping 10 percent to $126,100, the trade group's report found.
In Broward, median condo prices increased for the first time in more than three years, rising 1 percent to $81,500 in May. Year-over-year sales were up 21 percent to 965.
``We've seen a decline in inventory and increase in sales, and when you've got those two graphs going in a positive direction, it's a good sign,'' said Ron Shuffield, president of Esslinger-Wooten-Maxwell Realtors.
With signs of improvement trickling in for South Florida's beleaguered housing market, investors that have large piles of cash at their disposal are seeking bulk deals, with plans to flip condo units for a profit post-rebound.
Options are limited for prime downtown Miami and Miami Beach locations, so many bulk buyers are being pushed to consider deals farther north, with Palm Beach County in the spotlight, Zalewski said.
Ophir Sternberg, managing partner of Lionheart Capital, said the choice to buy units at 2700 North Ocean in bulk allowed the investors to get a competitive price while the market was still down. The company is looking at other bulk deal options in South Floria, Sternberg said.
``We've been intensively searching the South Florida market for about a year for a high-quality oceanfront deal,'' he said. ``When we found this one, there was nothing better in terms of quality and location.''
Lionheart paid about $250 per square foot in the bulk purchase, about $803,500 per unit.
While only 96 of the 342 units in the luxury towers have sold in the past two years, current condo owners at 2700 North Ocean paid an average of $1.47 million per unit, or $520 per square foot, the Condo Vultures report found.
Sternberg said he planned to take some time to study the property, then begin a new marketing campaign in the fall to start filling the units.
In the last two years, bulk buyers have bought up more than 4,800 units in South Florida, paying a total of about about $1.5 billion, the Condo Vultures report shows.
These bulk purchases tend to boost sales numbers but keep median prices down, since they are often bought at a discount.
In Miami-Dade, year-over-year home sales were up 22 percent at 727, and the median home price increased by 1 percent to $196,700.
In Broward, sales were down 6 percent compared to May 2009, but prices rose to $216,400, a 14 percent increase compared to last year.
Florida's single-family home sales also showed some positive signs in May, increasing 18 percent over the same month last year. Median prices, however, dipped 2 percent to $140,400.
Nationally, single-family home sales increased 19 percent over the year, and median price was $179,600 in May, up 2.7 percent from May 2009.
But Zalewski, who monitors local transactions on a weekly basis, says there is reason to be cautious about the state and national numbers, which are lagging indicators.
More recent reports by his team found that the inventory of single-family homes, town houses and condos on the market has been increasing in South Florida for the past three weeks, a strange turn after nearly two years of steadily decreasing numbers of homes for sale.
It could be a signal that homeowners who are not in foreclosure but have been waiting patiently for a rebound, may be beginning to put their homes back on the market. If inventory continues to increase over the next few weeks, it would be an ominous sign that the industry is headed for a stalled recovery, Zalewski said, emphasizing that additional inventory could keep home prices down in the months ahead.
``If we have six weeks in a row of [increasing inventory], we could be in trouble,'' he said. ``This might be a sign of a double dip.''
Source: http://www.sun-sentinel.com/business/sfl-condos-bulk-buying,0,1020170.story
By TOLUSE OLORUNNIPA
The Miami Herald
In its first deal, the firm plunked down $120 million this month to buy up 146 units at the 2700 North Ocean Drive towers on Singer Island in Palm Beach County.
It marked the 50th bulk condo purchase in South Florida in the last two years, according to analysis by Peter Zalewski, a principal of the real estate consultancy Condo Vultures.
New figures released Tuesday by the trade group Florida Realtors indicate that investors like Lionheart may be getting into South Florida's fragile condo market at an opportune time -- but they also could be in for a long wait before condo prices return to pre-recession levels.
Single-family homes prices may have already begun to rise, with prices increasing for the second month in a row in Miami-Dade and Broward counties, the Florida Realtors' report found.
Miami-Dade's existing condo sales in May were up more than 70 percent compared with the same month last year, with 972 units sold. That's an increase of 34 percent over April. But with plenty of inventory still on the market, condo prices were still down, dipping 10 percent to $126,100, the trade group's report found.
In Broward, median condo prices increased for the first time in more than three years, rising 1 percent to $81,500 in May. Year-over-year sales were up 21 percent to 965.
``We've seen a decline in inventory and increase in sales, and when you've got those two graphs going in a positive direction, it's a good sign,'' said Ron Shuffield, president of Esslinger-Wooten-Maxwell Realtors.
With signs of improvement trickling in for South Florida's beleaguered housing market, investors that have large piles of cash at their disposal are seeking bulk deals, with plans to flip condo units for a profit post-rebound.
Options are limited for prime downtown Miami and Miami Beach locations, so many bulk buyers are being pushed to consider deals farther north, with Palm Beach County in the spotlight, Zalewski said.
Ophir Sternberg, managing partner of Lionheart Capital, said the choice to buy units at 2700 North Ocean in bulk allowed the investors to get a competitive price while the market was still down. The company is looking at other bulk deal options in South Floria, Sternberg said.
``We've been intensively searching the South Florida market for about a year for a high-quality oceanfront deal,'' he said. ``When we found this one, there was nothing better in terms of quality and location.''
Lionheart paid about $250 per square foot in the bulk purchase, about $803,500 per unit.
While only 96 of the 342 units in the luxury towers have sold in the past two years, current condo owners at 2700 North Ocean paid an average of $1.47 million per unit, or $520 per square foot, the Condo Vultures report found.
Sternberg said he planned to take some time to study the property, then begin a new marketing campaign in the fall to start filling the units.
In the last two years, bulk buyers have bought up more than 4,800 units in South Florida, paying a total of about about $1.5 billion, the Condo Vultures report shows.
These bulk purchases tend to boost sales numbers but keep median prices down, since they are often bought at a discount.
In Miami-Dade, year-over-year home sales were up 22 percent at 727, and the median home price increased by 1 percent to $196,700.
In Broward, sales were down 6 percent compared to May 2009, but prices rose to $216,400, a 14 percent increase compared to last year.
Florida's single-family home sales also showed some positive signs in May, increasing 18 percent over the same month last year. Median prices, however, dipped 2 percent to $140,400.
Nationally, single-family home sales increased 19 percent over the year, and median price was $179,600 in May, up 2.7 percent from May 2009.
But Zalewski, who monitors local transactions on a weekly basis, says there is reason to be cautious about the state and national numbers, which are lagging indicators.
More recent reports by his team found that the inventory of single-family homes, town houses and condos on the market has been increasing in South Florida for the past three weeks, a strange turn after nearly two years of steadily decreasing numbers of homes for sale.
It could be a signal that homeowners who are not in foreclosure but have been waiting patiently for a rebound, may be beginning to put their homes back on the market. If inventory continues to increase over the next few weeks, it would be an ominous sign that the industry is headed for a stalled recovery, Zalewski said, emphasizing that additional inventory could keep home prices down in the months ahead.
``If we have six weeks in a row of [increasing inventory], we could be in trouble,'' he said. ``This might be a sign of a double dip.''
Source: http://www.sun-sentinel.com/business/sfl-condos-bulk-buying,0,1020170.story
By TOLUSE OLORUNNIPA
The Miami Herald
Wednesday, June 23, 2010
Greater Miami real estate soars
Condo sales soared by 70% in May 2010 compared to May 2009. Sales of existing single-family homes rose 22%.
Sales in the Greater Miami area beat national sales of existing single-family homes, which increased 19.2 percent from May 2009, according to the Realtor Association of Greater Miami and the Beaches (RAMB). Compared to May 2008, condominium sales in Miami increased 131% and sales of single-family homes rose 115%. Median sales prices posted a month-to-month gain, and both residential inventory and the time a home stays on the market decreased. "International buyers continue to fuel the current market resurgence," said Oliver Ruiz, 2010 RAMB Residential President. "Sixty percent of sales happening now involve international buyers and mostly cash transactions ... This is resulting in over bidding and multiple offers even in the high-end sector."
Source: http://www.poder360.com/dailynews_detail.php?blurbid=7876
Sales in the Greater Miami area beat national sales of existing single-family homes, which increased 19.2 percent from May 2009, according to the Realtor Association of Greater Miami and the Beaches (RAMB). Compared to May 2008, condominium sales in Miami increased 131% and sales of single-family homes rose 115%. Median sales prices posted a month-to-month gain, and both residential inventory and the time a home stays on the market decreased. "International buyers continue to fuel the current market resurgence," said Oliver Ruiz, 2010 RAMB Residential President. "Sixty percent of sales happening now involve international buyers and mostly cash transactions ... This is resulting in over bidding and multiple offers even in the high-end sector."
Source: http://www.poder360.com/dailynews_detail.php?blurbid=7876
Monday, June 21, 2010
LUXE SALES BUZZING
Cristina Miranda never wanted to live in a condominium but after she walked into one at the Gables Club with sweeping views of the sparkling Biscayne Bay, Fisher Island and the Miami skyline, she changed her mind.
With no regrets, Miranda sold her Coral Gables house of 30 years that she had shared with her now late husband, and bought the nearby condominium for $2.5 million in March.
``I always said I was going to die in my house,'' Miranda said, taking in her new view from the 5,200-square-foot condo. ``But when I saw this, I fell in love with it.''
Miranda's purchase is part of what some real estate experts are calling a ``miniboom'' in high-end condo sales in Miami-Dade County this year.
Countywide, 135 condos priced at $1 million or more sold during March, April and May this year, almost doubling the number of units in that price range that sold during the same period in 2009, according to Esslinger-Wooten-Maxwell, one of the largest real estate brokerages in Miami-Dade and Broward. In Broward, 17 $1 million-plus units sold during that time period this year compared to 12 last year.
The superluxury condo market is taking off too: in the past month there were four sales breaking the $7.5 million mark. Units sold for $8.7 million at One Bal Harbour; $9 million at the Fountainebleau; $11 million at the Santa Maria Brickell; and $15 million at the Setai.
Those four sales alone have the real estate industry abuzz, considering that there was only an average of 2.5 sales of condos in that stratospheric price bracket for the past eight years, according to EWM.
``We are selling more units right now because people are sensing we are at the bottom of the market,'' said Ron Shuffield, president of EWM. ``And there aren't that many to choose from, especially in the penthouse range.''
The unit that sold at Santa Maria Brickell for $11 million in foreclosure was priced at $14 million three years ago, Shuffield said. ``I think people are realizing you cannot reproduce any of these buildings for what we're selling them for.''
This month, a penthouse at the Marquis Residences sold for $4.2 million, said Lori Ordover, managing director for sales and leasings at Africa Israel USA, the developer of the building.
The four-story, 7,800-square-foot penthouse topping the 67-story building at 1100 Biscayne Blvd. claims the highest terrace and hot tub in Florida, and is one of seven units that sold for more than $1 million since March.
Ordover said the sales team had not yet priced the unfinished condo, which was sold in raw condition without the finishings (floors, window treatments, etc), and was not yet on the market when a buyer showed up with a ``good price.''
Ordover said most luxury condo buyers are paying in cash and they are buying units to live in, rather than as a pure investment.
``It's like the tide is starting to turn,'' Ordover said. ``I see the energy. I see more people coming to look in the sales office, double the number from last summer.''
For sure a major draw of the luxury condo communities, which began coming on the market in the mid-1990s, is the array of amenities that they offer. Some developments offer glamorous living experiences, with zen gardens, luxury spas, oceanside pools, private butler services, and exclusive club memberships.
At the Marquis Residences, owners can have a chef from its boutique hotel cook them a gourmet meal in their condo. The Setai in Miami Beach, 2001 Collins Ave., offers private plane and yacht charters. At Apogee, 800 South Pointe Dr. in Miami Beach, each unit has a privately-enclosed two-car garage on the parking levels.
Real estate experts say the luxury condo market should only get stronger because condominium living is an increasingly popular lifestyle choice for the wealthy.
In fact, according to Shuffield at EWM, this past quarter is now the third quarter of the last eight quarters where there have been condo sales exceeding single-family home sales for properties priced greater than $1 million.
Though the numbers for that price range are still close -- an average of 39 single family homes per month sold during the first quarter of 2010 vs. an average of 45 condos during the same time period -- Shuffield thinks the trend is here to stay.
``When I was growing up we didn't have these choices,'' said Shuffield, who is 59. ``There were only apartments. Today every one of these buildings is like a little country club. ``If you don't need a yard and space, it's a great lifestyle.''
At the Gables Club where residents in the two towers on Edgewater Drive, have access to a heated swimming pool, sauna and club, Cristina Miranda has already decorated her new condo with the eclectic paintings and furniture she collected while traveling the world with her husband of 36 years, Guillermo, who ran an athletic footwear company, Gator Industries.
``I like the area, and the amenities are all here,'' Miranda said. ``They wash your car for you downstairs, they will send up a chef to cook a meal. You name it, they do it.''
Source: http://www.miamiherald.com/2010/06/19/1689097/luxe-sales-buzzing.html
BY ANA MARIA LIMA
anaalaya@yahoo.com
With no regrets, Miranda sold her Coral Gables house of 30 years that she had shared with her now late husband, and bought the nearby condominium for $2.5 million in March.
``I always said I was going to die in my house,'' Miranda said, taking in her new view from the 5,200-square-foot condo. ``But when I saw this, I fell in love with it.''
Miranda's purchase is part of what some real estate experts are calling a ``miniboom'' in high-end condo sales in Miami-Dade County this year.
Countywide, 135 condos priced at $1 million or more sold during March, April and May this year, almost doubling the number of units in that price range that sold during the same period in 2009, according to Esslinger-Wooten-Maxwell, one of the largest real estate brokerages in Miami-Dade and Broward. In Broward, 17 $1 million-plus units sold during that time period this year compared to 12 last year.
The superluxury condo market is taking off too: in the past month there were four sales breaking the $7.5 million mark. Units sold for $8.7 million at One Bal Harbour; $9 million at the Fountainebleau; $11 million at the Santa Maria Brickell; and $15 million at the Setai.
Those four sales alone have the real estate industry abuzz, considering that there was only an average of 2.5 sales of condos in that stratospheric price bracket for the past eight years, according to EWM.
``We are selling more units right now because people are sensing we are at the bottom of the market,'' said Ron Shuffield, president of EWM. ``And there aren't that many to choose from, especially in the penthouse range.''
The unit that sold at Santa Maria Brickell for $11 million in foreclosure was priced at $14 million three years ago, Shuffield said. ``I think people are realizing you cannot reproduce any of these buildings for what we're selling them for.''
This month, a penthouse at the Marquis Residences sold for $4.2 million, said Lori Ordover, managing director for sales and leasings at Africa Israel USA, the developer of the building.
The four-story, 7,800-square-foot penthouse topping the 67-story building at 1100 Biscayne Blvd. claims the highest terrace and hot tub in Florida, and is one of seven units that sold for more than $1 million since March.
Ordover said the sales team had not yet priced the unfinished condo, which was sold in raw condition without the finishings (floors, window treatments, etc), and was not yet on the market when a buyer showed up with a ``good price.''
Ordover said most luxury condo buyers are paying in cash and they are buying units to live in, rather than as a pure investment.
``It's like the tide is starting to turn,'' Ordover said. ``I see the energy. I see more people coming to look in the sales office, double the number from last summer.''
For sure a major draw of the luxury condo communities, which began coming on the market in the mid-1990s, is the array of amenities that they offer. Some developments offer glamorous living experiences, with zen gardens, luxury spas, oceanside pools, private butler services, and exclusive club memberships.
At the Marquis Residences, owners can have a chef from its boutique hotel cook them a gourmet meal in their condo. The Setai in Miami Beach, 2001 Collins Ave., offers private plane and yacht charters. At Apogee, 800 South Pointe Dr. in Miami Beach, each unit has a privately-enclosed two-car garage on the parking levels.
Real estate experts say the luxury condo market should only get stronger because condominium living is an increasingly popular lifestyle choice for the wealthy.
In fact, according to Shuffield at EWM, this past quarter is now the third quarter of the last eight quarters where there have been condo sales exceeding single-family home sales for properties priced greater than $1 million.
Though the numbers for that price range are still close -- an average of 39 single family homes per month sold during the first quarter of 2010 vs. an average of 45 condos during the same time period -- Shuffield thinks the trend is here to stay.
``When I was growing up we didn't have these choices,'' said Shuffield, who is 59. ``There were only apartments. Today every one of these buildings is like a little country club. ``If you don't need a yard and space, it's a great lifestyle.''
At the Gables Club where residents in the two towers on Edgewater Drive, have access to a heated swimming pool, sauna and club, Cristina Miranda has already decorated her new condo with the eclectic paintings and furniture she collected while traveling the world with her husband of 36 years, Guillermo, who ran an athletic footwear company, Gator Industries.
``I like the area, and the amenities are all here,'' Miranda said. ``They wash your car for you downstairs, they will send up a chef to cook a meal. You name it, they do it.''
Source: http://www.miamiherald.com/2010/06/19/1689097/luxe-sales-buzzing.html
BY ANA MARIA LIMA
anaalaya@yahoo.com
Friday, June 18, 2010
U.S. Senate votes to extend deadline for home buyer's tax credit
The Senate voted 60-37 on Wednesday to extend until the end of September the deadline for completing home sales and still qualifying for a popular home buyer's tax credit.
Only buyers who signed contracts by April 30 could take advantage of the extension. Without it, buyers must close the deal by the end of June to get the $8,000 first-time credit or the $6,500 credit for certain people who already own homes.
The amendment was added to a bill that would extend the law that provides extra unemployment benefits.
Senate leaders had hoped to pass the bill by the end of the week but were struggling to round up enough votes to overcome opposition by Republicans and some Democrats.
The National Association of Realtors estimated 180,000 buyers are at risk of not closing in time to receive the credits because of the crush of contracts and Congress' repeated lapses in renewing federal flood insurance.
Only buyers who signed contracts by April 30 could take advantage of the extension. Without it, buyers must close the deal by the end of June to get the $8,000 first-time credit or the $6,500 credit for certain people who already own homes.
The amendment was added to a bill that would extend the law that provides extra unemployment benefits.
Senate leaders had hoped to pass the bill by the end of the week but were struggling to round up enough votes to overcome opposition by Republicans and some Democrats.
The National Association of Realtors estimated 180,000 buyers are at risk of not closing in time to receive the credits because of the crush of contracts and Congress' repeated lapses in renewing federal flood insurance.
Thursday, June 17, 2010
Miami Real Estate – Make Your Home Buying Fun
In buying a home in Miami real estate, fun and buying are the concepts that come together.
Buying a home is a huge investment that is why instead of having fun, buying a home become so stressful. Buyers tends to find themselves into trouble when purchasing a home in Miami real estate, because of the legal aspects, choosing a home mortgage, dealing with brokers and real estate agents, finding home insurance, and many other buyer concerns.
But there are still some ways to make the buying process with lots of fun, by being prepared, and by adding a little bit of humor and wit if needed.
Now, the first thing one should do is by asking the toughest question, Can you afford the payments for the home that you wanted… Then you have to answer that question honestly. It is wiser to consult a financial adviser to help you in the buying process. This is really important especially if you have some troubles regarding to financial obligations. So it is better to determine that type of home you can afford, considering the monthly payments to be done for a home mortgage.
Next thing one should do is to have valuable information about Miami real estate. There are lots of way to obtain the necessary information, by newspapers, advertisements, referrals, brochures, and also the Internet. It is truly wiser to have all the valuable information when entering into a home buying in Miami real estate.
If you are first time buyer in the Miami real estate, it is advisable to talk to people who recently purchased a home in Miami real estate and learn from their experiences. Learning from others experiences can help you in your buying process.
It will also benefit you, if you talk to your friends and family, who has recently purchased a home in Miami real estate. The world of real estate evolve fast, so things can change quickly, so having a lot of information can help you in your home buying process in Miami real estate.
Another important factor to consider in your buying process, is hiring the service of a real estate agent. But it is also important to take some time to research about the real estate agent, for you to find the most skilled and expert that would fit to your needs. Now, in choosing a real estate agent, choose someone who can represent you and your interests, someone who can lessen you stress in purchasing a home. In searching for a real estate agent, you can look for some referrals.
In buying a home in Miami real estate, a great deal of discussion and paperwork is involved in closing a deal. But if you done the process well then this part will no longer be a stressful one but instead to be an exciting one. After finding the best mortgage rate and terms which you were qualified, then better to finalize the home mortgage company of your choice. And as soon as all goes well, you end up enjoying and relaxing to your home. So finally, you’ll be having fun with you new home in Miami real estate.
Buying a home is a huge investment that is why instead of having fun, buying a home become so stressful. Buyers tends to find themselves into trouble when purchasing a home in Miami real estate, because of the legal aspects, choosing a home mortgage, dealing with brokers and real estate agents, finding home insurance, and many other buyer concerns.
But there are still some ways to make the buying process with lots of fun, by being prepared, and by adding a little bit of humor and wit if needed.
Now, the first thing one should do is by asking the toughest question, Can you afford the payments for the home that you wanted… Then you have to answer that question honestly. It is wiser to consult a financial adviser to help you in the buying process. This is really important especially if you have some troubles regarding to financial obligations. So it is better to determine that type of home you can afford, considering the monthly payments to be done for a home mortgage.
Next thing one should do is to have valuable information about Miami real estate. There are lots of way to obtain the necessary information, by newspapers, advertisements, referrals, brochures, and also the Internet. It is truly wiser to have all the valuable information when entering into a home buying in Miami real estate.
If you are first time buyer in the Miami real estate, it is advisable to talk to people who recently purchased a home in Miami real estate and learn from their experiences. Learning from others experiences can help you in your buying process.
It will also benefit you, if you talk to your friends and family, who has recently purchased a home in Miami real estate. The world of real estate evolve fast, so things can change quickly, so having a lot of information can help you in your home buying process in Miami real estate.
Another important factor to consider in your buying process, is hiring the service of a real estate agent. But it is also important to take some time to research about the real estate agent, for you to find the most skilled and expert that would fit to your needs. Now, in choosing a real estate agent, choose someone who can represent you and your interests, someone who can lessen you stress in purchasing a home. In searching for a real estate agent, you can look for some referrals.
In buying a home in Miami real estate, a great deal of discussion and paperwork is involved in closing a deal. But if you done the process well then this part will no longer be a stressful one but instead to be an exciting one. After finding the best mortgage rate and terms which you were qualified, then better to finalize the home mortgage company of your choice. And as soon as all goes well, you end up enjoying and relaxing to your home. So finally, you’ll be having fun with you new home in Miami real estate.
Wednesday, June 16, 2010
Tax credit extension would help short sale buyers
Frustrated home buyers trying to complete short sales or get flood insurance stand to benefit most from an extension, which has not yet passed Congress, but is being pushed by Senate Majority Leader Harry Reid, D-Nev.
Reid, who is up for re-election, said last week that buyers should have until the end of September to complete their deals because of delays beyond their control. As it is now, buyers who signed contracts by April 30 must close by the end of June to get the $8,000 first-time credit or the $6,500 credit for certain people who already own homes.
Only buyers who signed contracts by April 30 could take advantage of an extension. The Senate is expected to consider Reid's measure this week.
Short sales, in which sellers unload homes for less than they owe on their mortgages, often drag on for weeks or months while lenders consider whether to approve the deals. New federal guidelines introduced in April give lenders a 10-day window to respond to short sale offers, but some banks aren't complying, real estate agents and analysts say.
Reid's proposal would be a major benefit for buyers who need more time to let the process play out.
"I'm just twisting in the wind," said Smith. "I really hope this gets extended. It would take a lot of pressure off me."
His real estate agent, Ryan Love of Coldwell Banker, said they're waiting for a letter of approval from the lender.
"We keep getting the 'Oh, it's coming today or tomorrow' line," Love said.
Even people who aren't buying short sales are hoping for an extension.
Some deals are being delayed because buyers can't get flood insurance. Lawmakers let the National Flood Insurance Program expire three times this year. No new or renewal flood policies can be issued until Congress renews it.
Bill Mei, a loan officer for Element Funding in Pompano Beach, said the lack of flood insurance has killed one of his home sales and postponed two others. He's concerned about a few closings scheduled in the coming weeks.
"It's a big mess," he said.
The crush of buyers trying to complete sales by the end of June "is creating a clog in the system," said Walter Molony, a spokesman for the National Association of Realtors. "It's taking longer to close transactions."
The national Realtors' group estimates that 180,000 buyers are at risk of not closing in time to receive the credits.
Meanwhile, the pending expiration of the tax credits has home builders feeling less confident.
The National Association of Home Builders said Tuesday its index measuring member optimism dropped to 17 in June from 22 in May. The index had risen for two consecutive months.
Source: http://www.sun-sentinel.com/business/fl-homebuyer-credit-extended-20100615,0,7986336.story
Paul Owers can be reached at Powers@SunSentinel.com or 561-243-6529
Reid, who is up for re-election, said last week that buyers should have until the end of September to complete their deals because of delays beyond their control. As it is now, buyers who signed contracts by April 30 must close by the end of June to get the $8,000 first-time credit or the $6,500 credit for certain people who already own homes.
Only buyers who signed contracts by April 30 could take advantage of an extension. The Senate is expected to consider Reid's measure this week.
Short sales, in which sellers unload homes for less than they owe on their mortgages, often drag on for weeks or months while lenders consider whether to approve the deals. New federal guidelines introduced in April give lenders a 10-day window to respond to short sale offers, but some banks aren't complying, real estate agents and analysts say.
Reid's proposal would be a major benefit for buyers who need more time to let the process play out.
"I'm just twisting in the wind," said Smith. "I really hope this gets extended. It would take a lot of pressure off me."
His real estate agent, Ryan Love of Coldwell Banker, said they're waiting for a letter of approval from the lender.
"We keep getting the 'Oh, it's coming today or tomorrow' line," Love said.
Even people who aren't buying short sales are hoping for an extension.
Some deals are being delayed because buyers can't get flood insurance. Lawmakers let the National Flood Insurance Program expire three times this year. No new or renewal flood policies can be issued until Congress renews it.
Bill Mei, a loan officer for Element Funding in Pompano Beach, said the lack of flood insurance has killed one of his home sales and postponed two others. He's concerned about a few closings scheduled in the coming weeks.
"It's a big mess," he said.
The crush of buyers trying to complete sales by the end of June "is creating a clog in the system," said Walter Molony, a spokesman for the National Association of Realtors. "It's taking longer to close transactions."
The national Realtors' group estimates that 180,000 buyers are at risk of not closing in time to receive the credits.
Meanwhile, the pending expiration of the tax credits has home builders feeling less confident.
The National Association of Home Builders said Tuesday its index measuring member optimism dropped to 17 in June from 22 in May. The index had risen for two consecutive months.
Source: http://www.sun-sentinel.com/business/fl-homebuyer-credit-extended-20100615,0,7986336.story
Paul Owers can be reached at Powers@SunSentinel.com or 561-243-6529
Monday, June 14, 2010
Where America's Money Is Moving
Low taxes, warm sunshine and deep discounts on real estate. No wonder IRS data shows the wealthiest among us are headed south.
America's wealthy like warm weather and low taxes. That's the takeaway from IRS data, analyzed by Forbes, on moves between counties. We looked for counties that the rich are moving to in big numbers.
Topping the list: Collier County, Fla., which includes the city of Naples. Tax returns accounting for 15,150 people showed moves to Collier County from other parts of the country in 2008, the latest year for which IRS data is available. Their average reported income: $76,161 per person--equivalent to $304,644 for a family of four. Although slightly more taxpayers moved out of Collier County than into it, the departing residents' average income came out to just $26,128 per person.
Households that moved to Collier County principally came from other parts of Florida, with Lee, Miami Dade, Broward, Palm Beach and Orange counties leading the list. Big northern cities also sent lots of migrants: Cook County, Ill. (home to Chicago); Oakland County, Mich. (near Detroit); and Suffolk County, N.Y. (on Long Island) each sent more than 100 people to Collier County during 2008.
In second place is Greene County, Ga., with a population of just 15,743 at the Census Bureau's last estimate. The IRS data show that in 2008, 788 people moved to the county, about 75 miles east of Atlanta.
Rounding out the top five: Nassau County, Fla., near Jacksonville; Llano County, Texas, 70 miles northwest of Austin; and Walton County, Fla., 80 miles east of Pensacola.
The dominance of the list by Florida and Texas--the former has eight of the top 20 counties, the latter four-- makes sense to Robert Shrum, manager of state affairs at the Tax Foundation in Washington, D.C., since neither state has an income tax. "If you're a high-income earner, then that, from a tax perspective, is going to be a driving decider if you're going to move to one of those two states," Shrum says.
After accounting for property taxes, Shrum's analysis shows that Texas has the fourth-lowest personal tax burden in the country, and Florida has the eighth lowest. Shrum also points to eight states that have targeted wealthy households with extra-high tax brackets: California, New Jersey, New York, Maryland, Hawaii, Oregon, Connecticut and Wisconsin. Six of the top 10 counties the rich are fleeing are located in those states.
Pitkin County, Colo., home to the pricey Aspen ski community, where home listings average more than $3.5 million, saw an exodus of rich people in 2008 as the economy began to contract. The 962 tax filers and dependents who left Pitkin had an average income of $71,473 per capita, while the equivalent figure for those moving to the county was $30,000 lower. Of those leaving Pitkin County, 224 moved to neighboring Garfield County where, according to real estate information service Trulia, homes list for 75% less than those in Pitkin County. IRS data also show movement from the resort area to cities like New York, Chicago and San Francisco.
Behind the NumbersTo find places the rich are moving, Forbes used IRS data on household moves broken down by county and income. We included counties where arriving households are richer than households that didn't move and departing households are poorer than households that didn't move. The final ranking orders counties by the difference in per-capita income between incoming households and those that didn't move.
Our ranking of places the rich are fleeing essentially reverses these criteria, looking for counties where departing households are wealthier than the population as a whole and where incoming households are poorer.
In order to find patterns among the wealthy, we restricted the lists to counties where departing or arriving households had per-capita incomes of $35,000 or more. That figure is equivalent to an annual income of $140,000 for a family of four--a very high income for any large subset of the American population (of 3,142 counties with IRS data, only 130 have average incomes above this level). And in order to avoid statistical anomalies, we only included counties with at least 500 people listed as arriving or departing.
This technique essentially finds new hot spots--places that aren't necessarily wealthy now but where wealthy people are moving. Some upscale places like Westchester County, N.Y., and Teton County, Wy., don't make the list because people moving into those counties aren't as rich as the people who already live there.
The IRS warns that these counts are only approximations; because they don't include households that don't file income tax returns, poor and elderly people are underrepresented. These counts also don't include returns filed after late-September 2009--a small fraction of total returns that tends to include some very rich people with complex returns who file for extensions.
Source: http://www.forbes.com/2010/06/14/where-the-rich-are-moving-business-beltway-rich-migration.html?boxes=businesschannelsections
By Jon Bruner, 06.14.10, 02:30 PM EDT
America's wealthy like warm weather and low taxes. That's the takeaway from IRS data, analyzed by Forbes, on moves between counties. We looked for counties that the rich are moving to in big numbers.
Topping the list: Collier County, Fla., which includes the city of Naples. Tax returns accounting for 15,150 people showed moves to Collier County from other parts of the country in 2008, the latest year for which IRS data is available. Their average reported income: $76,161 per person--equivalent to $304,644 for a family of four. Although slightly more taxpayers moved out of Collier County than into it, the departing residents' average income came out to just $26,128 per person.
Households that moved to Collier County principally came from other parts of Florida, with Lee, Miami Dade, Broward, Palm Beach and Orange counties leading the list. Big northern cities also sent lots of migrants: Cook County, Ill. (home to Chicago); Oakland County, Mich. (near Detroit); and Suffolk County, N.Y. (on Long Island) each sent more than 100 people to Collier County during 2008.
In second place is Greene County, Ga., with a population of just 15,743 at the Census Bureau's last estimate. The IRS data show that in 2008, 788 people moved to the county, about 75 miles east of Atlanta.
Rounding out the top five: Nassau County, Fla., near Jacksonville; Llano County, Texas, 70 miles northwest of Austin; and Walton County, Fla., 80 miles east of Pensacola.
The dominance of the list by Florida and Texas--the former has eight of the top 20 counties, the latter four-- makes sense to Robert Shrum, manager of state affairs at the Tax Foundation in Washington, D.C., since neither state has an income tax. "If you're a high-income earner, then that, from a tax perspective, is going to be a driving decider if you're going to move to one of those two states," Shrum says.
After accounting for property taxes, Shrum's analysis shows that Texas has the fourth-lowest personal tax burden in the country, and Florida has the eighth lowest. Shrum also points to eight states that have targeted wealthy households with extra-high tax brackets: California, New Jersey, New York, Maryland, Hawaii, Oregon, Connecticut and Wisconsin. Six of the top 10 counties the rich are fleeing are located in those states.
Pitkin County, Colo., home to the pricey Aspen ski community, where home listings average more than $3.5 million, saw an exodus of rich people in 2008 as the economy began to contract. The 962 tax filers and dependents who left Pitkin had an average income of $71,473 per capita, while the equivalent figure for those moving to the county was $30,000 lower. Of those leaving Pitkin County, 224 moved to neighboring Garfield County where, according to real estate information service Trulia, homes list for 75% less than those in Pitkin County. IRS data also show movement from the resort area to cities like New York, Chicago and San Francisco.
Behind the NumbersTo find places the rich are moving, Forbes used IRS data on household moves broken down by county and income. We included counties where arriving households are richer than households that didn't move and departing households are poorer than households that didn't move. The final ranking orders counties by the difference in per-capita income between incoming households and those that didn't move.
Our ranking of places the rich are fleeing essentially reverses these criteria, looking for counties where departing households are wealthier than the population as a whole and where incoming households are poorer.
In order to find patterns among the wealthy, we restricted the lists to counties where departing or arriving households had per-capita incomes of $35,000 or more. That figure is equivalent to an annual income of $140,000 for a family of four--a very high income for any large subset of the American population (of 3,142 counties with IRS data, only 130 have average incomes above this level). And in order to avoid statistical anomalies, we only included counties with at least 500 people listed as arriving or departing.
This technique essentially finds new hot spots--places that aren't necessarily wealthy now but where wealthy people are moving. Some upscale places like Westchester County, N.Y., and Teton County, Wy., don't make the list because people moving into those counties aren't as rich as the people who already live there.
The IRS warns that these counts are only approximations; because they don't include households that don't file income tax returns, poor and elderly people are underrepresented. These counts also don't include returns filed after late-September 2009--a small fraction of total returns that tends to include some very rich people with complex returns who file for extensions.
Source: http://www.forbes.com/2010/06/14/where-the-rich-are-moving-business-beltway-rich-migration.html?boxes=businesschannelsections
By Jon Bruner, 06.14.10, 02:30 PM EDT
Friday, June 11, 2010
Asian firms to add jobs, set up hubs
Two Asian firms are setting up in Miami-Dade, creating 70 jobs and investing $2.4 million over three years.
It's unclear how many of those jobs will be filled locally and how many will be staffed from the companies' headquarters.
Crystal Mover Services Inc., a transportation operations and maintenance company from Japan, established its US headquarters here to support two automated trains at Miami International Airport. The first will be at the North Terminal and the second, the MIA Mover, will connect Miami International Airport with the new rental car center.
The company is to create 60 jobs and invest $1 million over three years.
Uni Logistics America LLC, a Chinese freight forwarder specializing in international air and sea transportation, has opened a Miami office that is to create 10 jobs and spur $1.4 million in investment.
The Beacon Council, the county's economic development partnership, helped both set up operations.
The council wasn't able to say how many Miamians may work for either company or the positions' average salary.
"I think Crystal Mover Services, as well as the Chinese company, will bring [in] some people [and] hire some locally," said Beacon Council CEO Frank Nero.
Neither company applied for the state's Qualified Target Industry Tax Refund, which offers a $3,000 refund for jobs created in high-growth sectors paying 115% of average wage.
Yet they could be an indicator of what's to come.
"We're working on a major project from China and we hope this is the first wave," Mr. Nero added. "We're seeing a lot more interest coming from Asia, not only China and Japan but also Taiwan."
The Beacon Council has been asked to visit Taiwan, Mr. Nero added, while 30 Taiwanese companies are due here in September.
Source: http://miamitodaynews.com/news/100610/story2.shtml
By Zachary S. Fagenson
It's unclear how many of those jobs will be filled locally and how many will be staffed from the companies' headquarters.
Crystal Mover Services Inc., a transportation operations and maintenance company from Japan, established its US headquarters here to support two automated trains at Miami International Airport. The first will be at the North Terminal and the second, the MIA Mover, will connect Miami International Airport with the new rental car center.
The company is to create 60 jobs and invest $1 million over three years.
Uni Logistics America LLC, a Chinese freight forwarder specializing in international air and sea transportation, has opened a Miami office that is to create 10 jobs and spur $1.4 million in investment.
The Beacon Council, the county's economic development partnership, helped both set up operations.
The council wasn't able to say how many Miamians may work for either company or the positions' average salary.
"I think Crystal Mover Services, as well as the Chinese company, will bring [in] some people [and] hire some locally," said Beacon Council CEO Frank Nero.
Neither company applied for the state's Qualified Target Industry Tax Refund, which offers a $3,000 refund for jobs created in high-growth sectors paying 115% of average wage.
Yet they could be an indicator of what's to come.
"We're working on a major project from China and we hope this is the first wave," Mr. Nero added. "We're seeing a lot more interest coming from Asia, not only China and Japan but also Taiwan."
The Beacon Council has been asked to visit Taiwan, Mr. Nero added, while 30 Taiwanese companies are due here in September.
Source: http://miamitodaynews.com/news/100610/story2.shtml
By Zachary S. Fagenson
Thursday, June 10, 2010
Fort One completes Miami Beach real estate transactions
Fort One Real Estate Investments, an investment fund with roots in Miami and Washington, D.C., said it has completed transactions in Miami Beach totaling $52 million.
In a news release, Fort One said it has closed on the purchase of the 48 remaining unsold condominium units at the Capri South Beach Condominium ($31 million); the acquisition of the ``Pelican'' parking garage in South Beach ($11 million), plus the two commercial/retail units at The Strand in South Beach ($10 million).
The fund was represented by Adams Gallinar, whose founding partners are Bob Adams and Mike Gallinar. The transaction was structured as a short sale, with I-Star Financial being the successor to the original lender, Fremont.
I-Star Financial provided mortgage financing on the Capri project, and Sabadell United provided mortgages on the Pelican and Strand properties. I-star was represented by the Washington, D.C., firm of Katten Muchen, and Sabadell United was represented by the Miami office of Bilzen Sumberg.
Source: http://www.miamiherald.com/2010/06/10/1672971/fort-one-completes-miami-beach.html
Miami Herald Staff Report
In a news release, Fort One said it has closed on the purchase of the 48 remaining unsold condominium units at the Capri South Beach Condominium ($31 million); the acquisition of the ``Pelican'' parking garage in South Beach ($11 million), plus the two commercial/retail units at The Strand in South Beach ($10 million).
The fund was represented by Adams Gallinar, whose founding partners are Bob Adams and Mike Gallinar. The transaction was structured as a short sale, with I-Star Financial being the successor to the original lender, Fremont.
I-Star Financial provided mortgage financing on the Capri project, and Sabadell United provided mortgages on the Pelican and Strand properties. I-star was represented by the Washington, D.C., firm of Katten Muchen, and Sabadell United was represented by the Miami office of Bilzen Sumberg.
Source: http://www.miamiherald.com/2010/06/10/1672971/fort-one-completes-miami-beach.html
Miami Herald Staff Report
Wednesday, June 9, 2010
Miami Home Resales Reach Four-Year High
Miami-area home sales in April dipped from March and remained well below average, but they shot up over the unusually low year-ago level for the 14th consecutive month as investors, first-time buyers and vacation-home buyers targeted lower-cost condos and other abodes. The median sale price fell slightly from March and was 9.1 percent lower than in April 2009, marking the smallest annual decline in almost two years, a real estate information service reported.
In April 8,257 new and resale houses and condos closed escrow in the metro area encompassing Miami-Dade, Palm Beach and Broward counties. That was down 4.6 percent from March but up 30.5 percent from April 2009, according to MDA DataQuick of San Diego, Calif. The firm tracks real estate trends nationally via public property records.
Total escrow closings were the highest for an April since 2007, but they fell 30.0 percent short of the average for that month since 1997, when DataQuick's complete Miami-area stats begin. On average, sales have increased 0.1 percent between March and April.
Although the federal home buyer tax credit didn't appear to have had a huge impact on April sales, it's difficult to know how much weaker sales might have been without that incentive. Most buyers who rushed last month to meet the April 30 federal tax credit deadline to sign a sales contract wouldn't close escrow until May or June.
Last month's resales (excludes new homes) of single-family detached houses and condos combined were the highest in four years. Resales have risen year-over-year for 17 consecutive months. New-home sales in April were higher than a year ago for the second consecutive month, but they were still the second-lowest for an April since at least 1997.
New-home sales have suffered as builders struggle to compete with distressed sales. New homes made up 6.6 percent of total April sales, far below the decade average of 20 percent of monthly sales.
The 3,979 condos that resold in April marked a 7.7 percent decline from March but a 39.8 percent gain from April 2009. It was the highest number of condo resales for that month since April 2006, when 4,060 condos resold. Condo resales made up 48.2 percent of total Miami-area home sales in April, compared with 45.0 percent a year earlier and a monthly average of 32.6 percent over the past decade.
In the Miami market's high end, the number of houses and condos that sold for $1 million or more dipped to 206 in April, down 6.8 percent from 221 in March but up 56.1 percent percent from 132 in April 2009. Forty percent of the $1 million-plus transactions were for resale condos. The figures are based on an analysis of public property records, where there was a purchase price or loan of $1 million or more. The peak month for $1 million-plus home sales was in June 2005, when 583 sold in the Miami area.
The median price paid for all new and resale houses and condos sold in April was $140,000, down 1.4 percent from $142,000 in March and down 9.1 percent from $154,000 in April 2009. April's median brought the region back to its post-housing-boom low point of $140,000 - the same as in January this year. However, April's 9.1 percent year-over-year decline was the smallest since the median fell 6.8 percent, to $260,000, in May 2008.
The March-to-April decline in the median was in part the result of a shift toward a greater percentage of homes selling below $200,000. In April, 65.1 percent of all sales were under $200,000, compared with 63.8 percent in March.
April's overall median sale price stood 51.7 percent below the peak $290,000 median in June 2007. The Miami area's median price has fallen on a year-over-year basis for 31 consecutive months.
The median price paid for resale condos in April slipped to $91,000, down from $95,000 in March and $103,000 a year ago. April's level was the lowest since the resale condo median was $87,500 in January 2002. Last month the resale condo median stood 58.4 percent below its $219,000 peak in July 2006.
The median paid for resale single-family detached houses fell in April to $180,000, down 1.4 percent from March, down 2.7 percent from a year ago and down 47.1 percent from a June 2007 peak of $340,000. However, it was the lowest year-over-year decline for the resale detached house median since November 2007.
Another price gauge analysts watch, the median paid per square foot for resale single-family detached houses, fell to $104 in April, down from $106 in March and down 1.0 percent from April 2009. It was the smallest annual decline since October 2006. Last month's figure was 50.7 percent below the region's $211 peak in summer 2006. The measure has fallen year-over-year for 43 straight months.
A popular form of financing used by first-time home buyers - government-insured FHA loans - accounted for 47.1 percent of all home purchase loans in April, up from 45.9 percent in March and 41.5 percent a year ago. Two years ago it was 12.6 percent.
Absentee buyers purchased 34.0 percent of all homes sold in the Miami area in April, essentially flat compared with March and up from 31.6 percent a year ago, according to public property records. In April absentee buyers paid a median of $98,000, down from $100,000 in March and down from $116,000 a year earlier. Absentee buyers are often investors, but could include second-home buyers and others who indicated at the time of sale that their property tax bill would be sent to a different address.
About 2.6 percent of the homes sold in April had been "flipped" within a three-week to six-month period, meaning they had been bought on the open market and then re- sold within that window. That was down slightly from a flipping rate of 2.6 percent of all sales in March and up from 2.1 percent a year earlier. Flipping rates were higher before the housing market correction: In April 2005, for example, the Miami-area flipping rate was 5.4 percent.
Source: http://www.nuwireinvestor.com/articles/miami-home-resales-reach-four-year-high-55368.aspx
Published on: Tuesday, June 08, 2010
Written by: DQNews
This article has been republished from DQNews. You can also view this article at DQNews, a real estate research and news site.
In April 8,257 new and resale houses and condos closed escrow in the metro area encompassing Miami-Dade, Palm Beach and Broward counties. That was down 4.6 percent from March but up 30.5 percent from April 2009, according to MDA DataQuick of San Diego, Calif. The firm tracks real estate trends nationally via public property records.
Total escrow closings were the highest for an April since 2007, but they fell 30.0 percent short of the average for that month since 1997, when DataQuick's complete Miami-area stats begin. On average, sales have increased 0.1 percent between March and April.
Although the federal home buyer tax credit didn't appear to have had a huge impact on April sales, it's difficult to know how much weaker sales might have been without that incentive. Most buyers who rushed last month to meet the April 30 federal tax credit deadline to sign a sales contract wouldn't close escrow until May or June.
Last month's resales (excludes new homes) of single-family detached houses and condos combined were the highest in four years. Resales have risen year-over-year for 17 consecutive months. New-home sales in April were higher than a year ago for the second consecutive month, but they were still the second-lowest for an April since at least 1997.
New-home sales have suffered as builders struggle to compete with distressed sales. New homes made up 6.6 percent of total April sales, far below the decade average of 20 percent of monthly sales.
The 3,979 condos that resold in April marked a 7.7 percent decline from March but a 39.8 percent gain from April 2009. It was the highest number of condo resales for that month since April 2006, when 4,060 condos resold. Condo resales made up 48.2 percent of total Miami-area home sales in April, compared with 45.0 percent a year earlier and a monthly average of 32.6 percent over the past decade.
In the Miami market's high end, the number of houses and condos that sold for $1 million or more dipped to 206 in April, down 6.8 percent from 221 in March but up 56.1 percent percent from 132 in April 2009. Forty percent of the $1 million-plus transactions were for resale condos. The figures are based on an analysis of public property records, where there was a purchase price or loan of $1 million or more. The peak month for $1 million-plus home sales was in June 2005, when 583 sold in the Miami area.
The median price paid for all new and resale houses and condos sold in April was $140,000, down 1.4 percent from $142,000 in March and down 9.1 percent from $154,000 in April 2009. April's median brought the region back to its post-housing-boom low point of $140,000 - the same as in January this year. However, April's 9.1 percent year-over-year decline was the smallest since the median fell 6.8 percent, to $260,000, in May 2008.
The March-to-April decline in the median was in part the result of a shift toward a greater percentage of homes selling below $200,000. In April, 65.1 percent of all sales were under $200,000, compared with 63.8 percent in March.
April's overall median sale price stood 51.7 percent below the peak $290,000 median in June 2007. The Miami area's median price has fallen on a year-over-year basis for 31 consecutive months.
The median price paid for resale condos in April slipped to $91,000, down from $95,000 in March and $103,000 a year ago. April's level was the lowest since the resale condo median was $87,500 in January 2002. Last month the resale condo median stood 58.4 percent below its $219,000 peak in July 2006.
The median paid for resale single-family detached houses fell in April to $180,000, down 1.4 percent from March, down 2.7 percent from a year ago and down 47.1 percent from a June 2007 peak of $340,000. However, it was the lowest year-over-year decline for the resale detached house median since November 2007.
Another price gauge analysts watch, the median paid per square foot for resale single-family detached houses, fell to $104 in April, down from $106 in March and down 1.0 percent from April 2009. It was the smallest annual decline since October 2006. Last month's figure was 50.7 percent below the region's $211 peak in summer 2006. The measure has fallen year-over-year for 43 straight months.
A popular form of financing used by first-time home buyers - government-insured FHA loans - accounted for 47.1 percent of all home purchase loans in April, up from 45.9 percent in March and 41.5 percent a year ago. Two years ago it was 12.6 percent.
Absentee buyers purchased 34.0 percent of all homes sold in the Miami area in April, essentially flat compared with March and up from 31.6 percent a year ago, according to public property records. In April absentee buyers paid a median of $98,000, down from $100,000 in March and down from $116,000 a year earlier. Absentee buyers are often investors, but could include second-home buyers and others who indicated at the time of sale that their property tax bill would be sent to a different address.
About 2.6 percent of the homes sold in April had been "flipped" within a three-week to six-month period, meaning they had been bought on the open market and then re- sold within that window. That was down slightly from a flipping rate of 2.6 percent of all sales in March and up from 2.1 percent a year earlier. Flipping rates were higher before the housing market correction: In April 2005, for example, the Miami-area flipping rate was 5.4 percent.
Source: http://www.nuwireinvestor.com/articles/miami-home-resales-reach-four-year-high-55368.aspx
Published on: Tuesday, June 08, 2010
Written by: DQNews
This article has been republished from DQNews. You can also view this article at DQNews, a real estate research and news site.
Thursday, June 3, 2010
Condo Relief Act Shields Bulk Buyers from Liability
MIAMI- On Tuesday, the governor of Florida, Charlie Crist, signed into law the Distressed Condominium Relief Act, which is designed to give assurance to bulk condominium buyers that they won’t be liable for the flaws in a building they did not develop. Theoretically, as bulk buyers are spared this liability, they will buy up more of the excess units built during the boom years. The law will goes into effect on July 1, 2010.
Because the new law takes the element of liability off the table, says Warren Weiser, chairman of Continental Real Estate Companies in Coral Gables, bulk buyers will no longer have to budget for possible litigation.
The new condominium law was written two years ago at the beginning of the real estate crisis, at a time when there were few bulk condominium purchases. But in the last couple of years, the number of these purchases has grown tremendously. According to Condo Vultures, LLC, a real estate brokerage and consulting firm in Miami, in the period from July 1, 2008 to April 30, 2010, there were $976 Million worth of bulk condo sales in South Florida, most of which occurred in 2009, when there were $863 Million worth of these sales.
While there have been a lot of bulk condominium sales in the last year, still, proponents of the new law argue that prices for these units would be higher, if bulk buyers were not worried about being made to pay for the sins of earlier developers.
As the law stands now, says Mark Grant, attorney with Ruden McClosky in Ft. Lauderdale, who helped write the legislation, the way the Division of Florida Condominiums interprets the law, anybody who sells--or leases for five years--more than seven units in a condominium development during a 12-month period, is considered a developer.
The current Florida condominium law hasn’t made a distinction between a “creating developer” and a “successor developer,” even though the Division of Florida Condominium’s regulations do make that distinction, says Grant. “But the courts are not bound to follow the regulations, which are the interpretations of the law by the condominium division,” he says.
Although the law says that developers must give warranties on a building they build, the creating developer doesn’t exist anymore and the bulk buyer is the successor to the developer. Therein lies the rub, and the reason for the new law.
Now that the law has been signed, condominium prices should rise, says Grant, because bulk buyers will no longer insist on a discount for taking on another developer’s risks. Higher prices serve several purposes, he says. First and foremost, they help protect the investments of those who bought into a condominium early, because they are the ones who paid the highest prices, says Grant.
Currently, says Grant, most of the bulk condominium buyers are foreigners who don’t need financing. This new law will, theoretically, have the effect of encouraging more sales and, as more units are sold, that makes the remaining units financeable by Fannie Mae, because the agency won’t approve loans in buildings where more than 15% of the units are in default and not paying assessments. In order words, this new law could end up encouraging more Americans, who might be eligible for loans backed by Fannie Mae, to buy condominiums.
There are a lot of benefits in this law for the residents/owners of the condominium, not just the bulk buyer. If there is an absentee owner collecting rent and not paying assessments, this new law allows the association to collect the rent directly from the tenant or tell the tenant to pay the rent to the association, rather than the landlord, says Weiser.
Before this bill passed, says Grant, lenders who foreclosed on units only had to pay the last six months of assessments before they took title. “If it takes two years to foreclosure, those lenders had to pay only for six months, but the new law will expand that period to 12 months,” says Grant.
The way things stand now, says Grant, many people who are living in the condominium are paying their assessments. But developers who have gone bust aren’t paying assessments for the units they still own. Additionally, the banks which have started to foreclose, but have not taken title to condominiums yet, are not paying, so the building suffers. The new law will help make it easier for condominium associations to collect what they are owed. In short, this law may help to heal once-fractured condominiums.
Source: http://www.globest.com/news/1675_1675/florida/300125-1.html
By Hortense Leon
Because the new law takes the element of liability off the table, says Warren Weiser, chairman of Continental Real Estate Companies in Coral Gables, bulk buyers will no longer have to budget for possible litigation.
The new condominium law was written two years ago at the beginning of the real estate crisis, at a time when there were few bulk condominium purchases. But in the last couple of years, the number of these purchases has grown tremendously. According to Condo Vultures, LLC, a real estate brokerage and consulting firm in Miami, in the period from July 1, 2008 to April 30, 2010, there were $976 Million worth of bulk condo sales in South Florida, most of which occurred in 2009, when there were $863 Million worth of these sales.
While there have been a lot of bulk condominium sales in the last year, still, proponents of the new law argue that prices for these units would be higher, if bulk buyers were not worried about being made to pay for the sins of earlier developers.
As the law stands now, says Mark Grant, attorney with Ruden McClosky in Ft. Lauderdale, who helped write the legislation, the way the Division of Florida Condominiums interprets the law, anybody who sells--or leases for five years--more than seven units in a condominium development during a 12-month period, is considered a developer.
The current Florida condominium law hasn’t made a distinction between a “creating developer” and a “successor developer,” even though the Division of Florida Condominium’s regulations do make that distinction, says Grant. “But the courts are not bound to follow the regulations, which are the interpretations of the law by the condominium division,” he says.
Although the law says that developers must give warranties on a building they build, the creating developer doesn’t exist anymore and the bulk buyer is the successor to the developer. Therein lies the rub, and the reason for the new law.
Now that the law has been signed, condominium prices should rise, says Grant, because bulk buyers will no longer insist on a discount for taking on another developer’s risks. Higher prices serve several purposes, he says. First and foremost, they help protect the investments of those who bought into a condominium early, because they are the ones who paid the highest prices, says Grant.
Currently, says Grant, most of the bulk condominium buyers are foreigners who don’t need financing. This new law will, theoretically, have the effect of encouraging more sales and, as more units are sold, that makes the remaining units financeable by Fannie Mae, because the agency won’t approve loans in buildings where more than 15% of the units are in default and not paying assessments. In order words, this new law could end up encouraging more Americans, who might be eligible for loans backed by Fannie Mae, to buy condominiums.
There are a lot of benefits in this law for the residents/owners of the condominium, not just the bulk buyer. If there is an absentee owner collecting rent and not paying assessments, this new law allows the association to collect the rent directly from the tenant or tell the tenant to pay the rent to the association, rather than the landlord, says Weiser.
Before this bill passed, says Grant, lenders who foreclosed on units only had to pay the last six months of assessments before they took title. “If it takes two years to foreclosure, those lenders had to pay only for six months, but the new law will expand that period to 12 months,” says Grant.
The way things stand now, says Grant, many people who are living in the condominium are paying their assessments. But developers who have gone bust aren’t paying assessments for the units they still own. Additionally, the banks which have started to foreclose, but have not taken title to condominiums yet, are not paying, so the building suffers. The new law will help make it easier for condominium associations to collect what they are owed. In short, this law may help to heal once-fractured condominiums.
Source: http://www.globest.com/news/1675_1675/florida/300125-1.html
By Hortense Leon
Wednesday, June 2, 2010
South Florida pending home sales up dramatically from last year
Providing further evidence of a strengthening market, South Florida home buyers signed contracts at a fast clip in May, catapulting the number of pending home sales up 54 percent in Miami-Dade and 51 percent in Broward, compared to the same month last year.
The figures reflect the surge of international buyers taking advantage of low real estate prices and favorable exchange rates, as well as first-time and existing buyers benefiting from record-setting affordability conditions.
Total pending home sales -- including single-family and condominiums -- in Miami-Dade increased to 10,456 in May, up 0.62 percent from April, according to figures released Wednesday by the Realtor Association of Greater Miami and the Beaches and the Southeast Florida Multiple Listing Service. April figures included a last-minute surge by home buyers taking advantage of a federal tax credit that expired on April 20.
``Current South Florida real estate market statistics are positive signs of a resurgent market,'' Terri Bersach, chairman of the Realtor Association of Greater Miami, said in a statement. ``Pending sales are considerably higher than they were a year ago when the market was already strengthening, and home median prices have begun to increase, while average home prices have been increasing for some time. These figures validate the demand for local residential properties and confirm the local market's recovery.''
In Broward County, pending home sales fell 3.23 percent to 3,719, in May, compared to April, due to the impact of the expiring tax credit.
Source: http://www.miamiherald.com/2010/06/02/1659819/south-florida-pending-home-sales.html
BY INA PAIVA CORDLE
icordle@MiamiHerald.com
The figures reflect the surge of international buyers taking advantage of low real estate prices and favorable exchange rates, as well as first-time and existing buyers benefiting from record-setting affordability conditions.
Total pending home sales -- including single-family and condominiums -- in Miami-Dade increased to 10,456 in May, up 0.62 percent from April, according to figures released Wednesday by the Realtor Association of Greater Miami and the Beaches and the Southeast Florida Multiple Listing Service. April figures included a last-minute surge by home buyers taking advantage of a federal tax credit that expired on April 20.
``Current South Florida real estate market statistics are positive signs of a resurgent market,'' Terri Bersach, chairman of the Realtor Association of Greater Miami, said in a statement. ``Pending sales are considerably higher than they were a year ago when the market was already strengthening, and home median prices have begun to increase, while average home prices have been increasing for some time. These figures validate the demand for local residential properties and confirm the local market's recovery.''
In Broward County, pending home sales fell 3.23 percent to 3,719, in May, compared to April, due to the impact of the expiring tax credit.
Source: http://www.miamiherald.com/2010/06/02/1659819/south-florida-pending-home-sales.html
BY INA PAIVA CORDLE
icordle@MiamiHerald.com
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