As we all know, Florida has seen some of the most dramatic falls in real estate prices and the total number of homes sold since the housing market collapsed. Although things are bad in much of the state, it seems that the real estate market in Florida may be on the mend.
Some of the most hard hit areas such as the Orlando, Miami, and Fort Myers areas have seen nice rebounds in the number of homes sold over the last several months, raising hope that prices will soon follow. Fort Myers, located in Southwest Florida, has seen the number of home sales rise from about 850 sales in February of 2008, to well over 1,700 in October of this year. Miami has seen even bigger gains in that time period, with approximately 2,000 sales in February of 2008, compared with over 5,100 last month.
As inventory reduces, prices should begin to rise, not only in hardly hit Florida, but in real estate markets nationwide. The one variable that is still an unknown is what affect remaining foreclosures may have on this market. As long as foreclosures trickle in, instead of all hitting at once, inventory reductions should hopefully leave us with a stronger market come the end of 2011, and 2012.
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.
Showing posts with label florida. Show all posts
Showing posts with label florida. Show all posts
Wednesday, November 3, 2010
Tuesday, September 7, 2010
Florida the favorite of foreign home buyers
International buyers have helped buttress Florida's real estate market with 22 percent of all foreign clients nationally choosing property in the Sunshine State.
That makes Florida tops for attracting foreign interest, according to a summer report by the National Association of Realtors. California came in a far second with 12 percent of the international market.
While Florida's share of foreign clients has slipped from a recent high of more than 26 percent in 2008, bargain basement prices and a weakened dollar have continued to lure Canadian and overseas buyers.
The study, which looked at sales between March 2009 and March 2010, found that buyers with permanent residences outside the United States spent an estimated $41 billion on residential property nationally during the period of the study. That's 4 percent of the total residential market during the same time.
"I had an open house in the mid-$500,000s and a man from Canada came and bought it the same day," said Palm Beach Gardens Realtor Jeff Lichtenstein, who has a page on his website dedicated to foreign buyers. "Once they're here, they tend to bring friends."
And family.
Amsterdam native Annette Aalberts bought two Jupiter area homes for herself and her daughter over the past few years. Combined, the homes are worth about $4.5 million.
But most international buyers don't aim that high. According to the study, the median price foreign buyers paid nationally is $219,400.
"International buyers are hugely important in absorbing inventory," said Jenny Huertas, international sales director for the Miami-based consultant firm Condo Vultures.
Huertas estimates 30 percent of sales in Palm Beach, Broward and Miami-Dade counties are to international buyers.
It's unclear how a recent dip in the euro may temper overseas purchases. It's worth $1.28, compared with a high of $1.60 in 2008. That means to buy a $500,000 house, it would cost about 388,709 euros.
But the Canadian dollar, which traditionally has been weaker than U.S. currency, is near parity at 95 cents.
Toronto resident Domenic Triumbari bought two properties in the Palm Beach Grande condominium complex in March. The suburban West Palm Beach homes sold for $164,990 and $179,990 in 2006.
Triumbari picked them up for $60,000 each, paying in cash, and without ever seeing them in person.
"I know they're in West Palm Beach, but not exactly sure where," said Triumbari, who is renting the homes. "The numbers make sense right now. You can make money on your investment."
Triumbari also is searching for a South Florida home for himself.
"I've seen a lot of the Caribbean, been all over the islands, but I like Florida," he said. "We speak the same language, eat the same foods."
While the Realtors Association of the Palm Beaches does not keep statistics on international buyers in local markets, statewide statistics the national association gathered showed 31 percent of Florida's international buyers are Canadian, compared with 24 percent nationally.
Nationally, about 55 percent of foreign buyers pay with cash, possibly because it can be harder for international clients to get financing here. In Florida, about 82 percent of international buyers paid in cash.
Realtor Craig Fialkowski, of Herman Group Real Estate in Palm Beach Gardens, said nearly all of his international clients buy with cash and sight unseen.
Typically, they're looking for deals on homes they can rent.
"Buyers want a decent return on investment," Fialkowski said. "The cash flow can be really good."
Source: http://www.palmbeachpost.com/money/real-estate/florida-the-favorite-of-foreign-home-buyers-900349.html
By Kimberly Miller Palm Beach Post Staff Writer
That makes Florida tops for attracting foreign interest, according to a summer report by the National Association of Realtors. California came in a far second with 12 percent of the international market.
While Florida's share of foreign clients has slipped from a recent high of more than 26 percent in 2008, bargain basement prices and a weakened dollar have continued to lure Canadian and overseas buyers.
The study, which looked at sales between March 2009 and March 2010, found that buyers with permanent residences outside the United States spent an estimated $41 billion on residential property nationally during the period of the study. That's 4 percent of the total residential market during the same time.
"I had an open house in the mid-$500,000s and a man from Canada came and bought it the same day," said Palm Beach Gardens Realtor Jeff Lichtenstein, who has a page on his website dedicated to foreign buyers. "Once they're here, they tend to bring friends."
And family.
Amsterdam native Annette Aalberts bought two Jupiter area homes for herself and her daughter over the past few years. Combined, the homes are worth about $4.5 million.
But most international buyers don't aim that high. According to the study, the median price foreign buyers paid nationally is $219,400.
"International buyers are hugely important in absorbing inventory," said Jenny Huertas, international sales director for the Miami-based consultant firm Condo Vultures.
Huertas estimates 30 percent of sales in Palm Beach, Broward and Miami-Dade counties are to international buyers.
It's unclear how a recent dip in the euro may temper overseas purchases. It's worth $1.28, compared with a high of $1.60 in 2008. That means to buy a $500,000 house, it would cost about 388,709 euros.
But the Canadian dollar, which traditionally has been weaker than U.S. currency, is near parity at 95 cents.
Toronto resident Domenic Triumbari bought two properties in the Palm Beach Grande condominium complex in March. The suburban West Palm Beach homes sold for $164,990 and $179,990 in 2006.
Triumbari picked them up for $60,000 each, paying in cash, and without ever seeing them in person.
"I know they're in West Palm Beach, but not exactly sure where," said Triumbari, who is renting the homes. "The numbers make sense right now. You can make money on your investment."
Triumbari also is searching for a South Florida home for himself.
"I've seen a lot of the Caribbean, been all over the islands, but I like Florida," he said. "We speak the same language, eat the same foods."
While the Realtors Association of the Palm Beaches does not keep statistics on international buyers in local markets, statewide statistics the national association gathered showed 31 percent of Florida's international buyers are Canadian, compared with 24 percent nationally.
Nationally, about 55 percent of foreign buyers pay with cash, possibly because it can be harder for international clients to get financing here. In Florida, about 82 percent of international buyers paid in cash.
Realtor Craig Fialkowski, of Herman Group Real Estate in Palm Beach Gardens, said nearly all of his international clients buy with cash and sight unseen.
Typically, they're looking for deals on homes they can rent.
"Buyers want a decent return on investment," Fialkowski said. "The cash flow can be really good."
Source: http://www.palmbeachpost.com/money/real-estate/florida-the-favorite-of-foreign-home-buyers-900349.html
By Kimberly Miller Palm Beach Post Staff Writer
Monday, August 23, 2010
Miami Design District: Fashion, food and art
The several-block stretch of Miami that houses art galleries, mouth-watering eateries, high-end fashion and furniture showrooms got its start in sofas.
``From the beginning, the Design District was an international destination,'' said Craig Robins, CEO of real estate company Dacra, the primary landlord. ``The bad news was that furniture design doesn't attract a lot of foot traffic.''
While the neighborhood still doesn't get the general traffic of, say, Aventura Mall or Lincoln Road in South Beach, its reputation has gone from near-deserted trade district to Mecca of chic.
Within the last couple years, high-end retailers like Marni, Tomas Maier and Christian Louboutin have opened, and restaurants like Michael's Genuine Food & Drink and Sra. Martinez have established the district as a culinary destination.
Dacra spends about $2 million to promote the area, in large part through nontraditional methods like investing in public art or supporting exhibitions.
The strategy has focused on digital content, social media and online activity in recent years; print advertising is modest and mostly local, for example. Robins said he wants to get attention from sophisticated, creative visitors once they are already here rather than try to lure them to hop on a plane.
``If you start trying to advertise all over the world for something that's very localized, I think it's a mistake,'' he said.
Closer to home, the efforts also include putting on a monthly gallery walk and introducing $3 valet parking throughout the district.
For now, the neighborhood cannot pitch itself as a place to stay; there are no hotels. Robins said he has been approached by many, but wants to hold out for something unique.
Positioned on the west end of the Julia Tuttle Causeway, the district draws much of its traffic from Miami Beach -- and lost its flagship event, Design Miami, to the beach.
It was a decision Robins, majority owner of the event, made to give Design Miami more space and place it closer to Art Basel, the art world's annual descent on Miami Beach.
Robins was key to the redevelopment of South Beach two decades ago and then started buying property in the nearly deserted Design District in the mid-1990s. The 2002 arrival of Art Basel Miami Beach -- which Robins supported -- helped earn it widespread attention.
Though no clear numbers are availble, Robins said he believes the efforts to promote the locale as a destination is working.
``What we noticed this year was a very significant jump in retail sales to foreigners or tourists,'' he said. ``It was the first time the Design District broke from kind of being a local oasis to also attracting a lot of out of town guests.''
Eyeglass and clothing boutique owner Irina Chovkovy said she gets customers from around the world. They come to I on the District for the same reason she chose the Design District: because it is artsy, unusual and design-oriented.
Sloan Schaffer, owner of the commercial art gallery 101/exhibit, said he loves the area but thinks more work needs to be done to draw visitors. He works on committees trying to enhance amenities and draw more events to the area.
``It's this little niche that I think is really vital for Miami and it's a vibrant little area that has really defined its own mission and its own identity within the past couple of years,'' Schaffer said.
Source: http://www.miamiherald.com/2010/08/22/1785468/miami-design-district-fashion.html
-- HANNAH SAMPSON
DESIGN DISTRICT
Population: Not residential, but an estimated 65,000 in nearby Wynwood and Little Haiti.
The draw: Furniture, fashion, food and art
The pitch: Miami's creative laboratory
Budget: $2 million.
Who pays: Dacra, the real estate firm that owns much of the district
Challenge: No hotels
Website: miamidesigndistrict.net
``From the beginning, the Design District was an international destination,'' said Craig Robins, CEO of real estate company Dacra, the primary landlord. ``The bad news was that furniture design doesn't attract a lot of foot traffic.''
While the neighborhood still doesn't get the general traffic of, say, Aventura Mall or Lincoln Road in South Beach, its reputation has gone from near-deserted trade district to Mecca of chic.
Within the last couple years, high-end retailers like Marni, Tomas Maier and Christian Louboutin have opened, and restaurants like Michael's Genuine Food & Drink and Sra. Martinez have established the district as a culinary destination.
Dacra spends about $2 million to promote the area, in large part through nontraditional methods like investing in public art or supporting exhibitions.
The strategy has focused on digital content, social media and online activity in recent years; print advertising is modest and mostly local, for example. Robins said he wants to get attention from sophisticated, creative visitors once they are already here rather than try to lure them to hop on a plane.
``If you start trying to advertise all over the world for something that's very localized, I think it's a mistake,'' he said.
Closer to home, the efforts also include putting on a monthly gallery walk and introducing $3 valet parking throughout the district.
For now, the neighborhood cannot pitch itself as a place to stay; there are no hotels. Robins said he has been approached by many, but wants to hold out for something unique.
Positioned on the west end of the Julia Tuttle Causeway, the district draws much of its traffic from Miami Beach -- and lost its flagship event, Design Miami, to the beach.
It was a decision Robins, majority owner of the event, made to give Design Miami more space and place it closer to Art Basel, the art world's annual descent on Miami Beach.
Robins was key to the redevelopment of South Beach two decades ago and then started buying property in the nearly deserted Design District in the mid-1990s. The 2002 arrival of Art Basel Miami Beach -- which Robins supported -- helped earn it widespread attention.
Though no clear numbers are availble, Robins said he believes the efforts to promote the locale as a destination is working.
``What we noticed this year was a very significant jump in retail sales to foreigners or tourists,'' he said. ``It was the first time the Design District broke from kind of being a local oasis to also attracting a lot of out of town guests.''
Eyeglass and clothing boutique owner Irina Chovkovy said she gets customers from around the world. They come to I on the District for the same reason she chose the Design District: because it is artsy, unusual and design-oriented.
Sloan Schaffer, owner of the commercial art gallery 101/exhibit, said he loves the area but thinks more work needs to be done to draw visitors. He works on committees trying to enhance amenities and draw more events to the area.
``It's this little niche that I think is really vital for Miami and it's a vibrant little area that has really defined its own mission and its own identity within the past couple of years,'' Schaffer said.
Source: http://www.miamiherald.com/2010/08/22/1785468/miami-design-district-fashion.html
-- HANNAH SAMPSON
DESIGN DISTRICT
Population: Not residential, but an estimated 65,000 in nearby Wynwood and Little Haiti.
The draw: Furniture, fashion, food and art
The pitch: Miami's creative laboratory
Budget: $2 million.
Who pays: Dacra, the real estate firm that owns much of the district
Challenge: No hotels
Website: miamidesigndistrict.net
Wednesday, August 4, 2010
Miami home prices rise slightly
Miami home prices rose 0.9 percent in May, according to the latest Standard & Poor's/Case Shiller Home Price Index, after a 0.8 percent drop in April. Year-over-year, home prices in Miami were up 1.2 percent, while the 10-city nationwide composite was up 5.4 percent. Last week, Florida Realtors reported that sales of existing single-family homes were up 15 percent statewide in June -- the 22nd consecutive month that sales activity went up. The median existing home price in Florida was $143,000 in June, a 2.1 percent jump over May's price of $140,400
Source: http://therealdeal.com/miami/articles/31054/elert
Source: http://therealdeal.com/miami/articles/31054/elert
Monday, August 2, 2010
The Merger is Final - Congratulations to Us!
Congratulations to Us - The Merger is Final
We are now THE largest association in the U.S.
The REALTOR® Association of Greater Miami and the Beaches (RAMB) and the REALTOR® Association of Miami-Dade County (RAMDC) have joined forces and are now the nation's largest REALTOR® Association. This historic merger brings together two of NAR's largest REALTOR®
associations, creating a combined association positioned to lead in an increasingly competitive and global real estate marketplace. Superior service to you, our members, expanded access to unparalleled marketing tools, a global network of more than 60 partner organizations around the world and educational programming for your profitability will provide long-term value for you and our more than 23,000 members. The new association will be named MIAMI Association of REALTORS® (MIAMI) upon approval from NAR on August 31st.
Jack H. Levine, Levine Realty, is the new Chairman of the Board through December 31, 2011. Oliver Ruiz, Managing Broker for Fortune International Realty serves as President of the Residential Board of Governors, President-Elect is Patricia Delinois, Broker-Owner, Century 21 Premier Elite Realty. Ronald Kohn, Kohn Commercial, is President of the Commercial Board of Governors and Betty Gonzalez, Keyes Company REALTORS®, is President-Elect. The Broward Board of Governors will be led by President Terri Bersach, Managing Broker, Coldwell Banker, Weston and President-Elect Natascha Tello, Broker-Owner, Keller Williams Realty Partners SW. Teresa King Kinney, CAE is the Chief Executive Officer.
5 locations will include the MIAMI headquarters at 700 S. Royal Poinciana Boulevard, Coral Gables, North Miami, Aventura Area, and Plantation, providing enhanced association services where our members live, work and play. The association website for both members and consumers is www.Miamire.com.
Once again, congratulations to us - the merger is final and we are NOW the largest REALTOR® association in the nation.
Thank you for your loyalty, support and most of all...for being our members.
We are MIAMI
We are now THE largest association in the U.S.
The REALTOR® Association of Greater Miami and the Beaches (RAMB) and the REALTOR® Association of Miami-Dade County (RAMDC) have joined forces and are now the nation's largest REALTOR® Association. This historic merger brings together two of NAR's largest REALTOR®
associations, creating a combined association positioned to lead in an increasingly competitive and global real estate marketplace. Superior service to you, our members, expanded access to unparalleled marketing tools, a global network of more than 60 partner organizations around the world and educational programming for your profitability will provide long-term value for you and our more than 23,000 members. The new association will be named MIAMI Association of REALTORS® (MIAMI) upon approval from NAR on August 31st.
Jack H. Levine, Levine Realty, is the new Chairman of the Board through December 31, 2011. Oliver Ruiz, Managing Broker for Fortune International Realty serves as President of the Residential Board of Governors, President-Elect is Patricia Delinois, Broker-Owner, Century 21 Premier Elite Realty. Ronald Kohn, Kohn Commercial, is President of the Commercial Board of Governors and Betty Gonzalez, Keyes Company REALTORS®, is President-Elect. The Broward Board of Governors will be led by President Terri Bersach, Managing Broker, Coldwell Banker, Weston and President-Elect Natascha Tello, Broker-Owner, Keller Williams Realty Partners SW. Teresa King Kinney, CAE is the Chief Executive Officer.
5 locations will include the MIAMI headquarters at 700 S. Royal Poinciana Boulevard, Coral Gables, North Miami, Aventura Area, and Plantation, providing enhanced association services where our members live, work and play. The association website for both members and consumers is www.Miamire.com.
Once again, congratulations to us - the merger is final and we are NOW the largest REALTOR® association in the nation.
Thank you for your loyalty, support and most of all...for being our members.
We are MIAMI
Friday, July 9, 2010
Miami Beach Luxury Real Estate Gets Cheaper as Short Sales Abound
Finding a "cheap" mansion on Miami Beach has become easier in the last few years due to the yo-yo-ing real estate market. That is, if you consider $3 million to be cheap. A few years ago, many of the properties on millionaire-row streets like North Bay Road and Palm Avenue were untouchable by many well-to-do buyers. Now those priced at $12 million and $13 million have dropped to $9 million, while those at $6 million are now priced at $3 million.
Ironically, wealthy all-cash buyers may ultimately rescue the deeply depressed local housing market.
"We definitely see affordable mansions happening all over, but especially in our waterfront properties, where the most desirable mansions are located," says Esther Percal, a Realtor with Esslinger, Wooten, Maxwell who has made a career of selling luxury real estate on Miami Beach.
She's referring specifically to North Bay Road where unobstructed, bay-front homes range near 14,000 square feet, with 80 feet of waterfront.
These lower prices are a 40 percent reduction from what these homes cost when the market was booming. Taking advantage of the affordability are interested buyers who had been hovering around Miami Beach looking for a home, but were unable to purchase. Now is their time. In the centrally located Venetian Islands, which are walking distance to South Beach, homes can be bought for between $1 million and $1.5 million, an affordable price considering that most are 10,500 square feet with 65 feet of waterfront.
Celebrities are not immune to these lower prices, with NBA Star Shaquille O'Neal taking a hit on his two-story Star Island home. He originally purchased the 20,000-square-foot, eight-bed, nine-and-half-bath house for $18.8 million in 2004 and sold it to a Russian buyer in June of 2009 for $16 million. He had originally put the two-acre parcel at 26 Star Island Drive on the market for $32 million, and he got a higher offer at first. But O'Neal ended up with a loss while the European got a sweet deal.
With Miami being a playground for the rich, most of the buyers -- some 60 percent of them -- are part-time residents (mostly Europeans and Northerners) and they're buying with all cash. "These folks have wanted a piece of the beach for a while but a few years ago even non-waterfront property was $1 million and now that's down to $500,000, meaning we are no longer untouchable as we once were," Percal says. Besides, dealing with the banks and any kind of financing is a nightmare, since everything is down in appraisals and banks. The all-cash deals are not subject to financing.
All these facts and figures are indicators of a possible slight turnaround in the market. Sales have been so strong in the past two years that good deals are getting harder to find. "Turning the market around is a matter of absorption and we're seeing that. Where once we had an 18-month inventory it's now down to a 14-month inventory, so there's market absorption," she said.
So it may be that, in the long run, these cash buyers will be partly responsible for rescuing the housing market.
Wouldn't that be something?
Source: http://www.housingwatch.com/2010/07/08/miami-beach-luxury-real-estate-gets-cheaper-as-short-sales-aboun/
By Josie Gulliksen
Ironically, wealthy all-cash buyers may ultimately rescue the deeply depressed local housing market.
"We definitely see affordable mansions happening all over, but especially in our waterfront properties, where the most desirable mansions are located," says Esther Percal, a Realtor with Esslinger, Wooten, Maxwell who has made a career of selling luxury real estate on Miami Beach.
She's referring specifically to North Bay Road where unobstructed, bay-front homes range near 14,000 square feet, with 80 feet of waterfront.
These lower prices are a 40 percent reduction from what these homes cost when the market was booming. Taking advantage of the affordability are interested buyers who had been hovering around Miami Beach looking for a home, but were unable to purchase. Now is their time. In the centrally located Venetian Islands, which are walking distance to South Beach, homes can be bought for between $1 million and $1.5 million, an affordable price considering that most are 10,500 square feet with 65 feet of waterfront.
Celebrities are not immune to these lower prices, with NBA Star Shaquille O'Neal taking a hit on his two-story Star Island home. He originally purchased the 20,000-square-foot, eight-bed, nine-and-half-bath house for $18.8 million in 2004 and sold it to a Russian buyer in June of 2009 for $16 million. He had originally put the two-acre parcel at 26 Star Island Drive on the market for $32 million, and he got a higher offer at first. But O'Neal ended up with a loss while the European got a sweet deal.
With Miami being a playground for the rich, most of the buyers -- some 60 percent of them -- are part-time residents (mostly Europeans and Northerners) and they're buying with all cash. "These folks have wanted a piece of the beach for a while but a few years ago even non-waterfront property was $1 million and now that's down to $500,000, meaning we are no longer untouchable as we once were," Percal says. Besides, dealing with the banks and any kind of financing is a nightmare, since everything is down in appraisals and banks. The all-cash deals are not subject to financing.
All these facts and figures are indicators of a possible slight turnaround in the market. Sales have been so strong in the past two years that good deals are getting harder to find. "Turning the market around is a matter of absorption and we're seeing that. Where once we had an 18-month inventory it's now down to a 14-month inventory, so there's market absorption," she said.
So it may be that, in the long run, these cash buyers will be partly responsible for rescuing the housing market.
Wouldn't that be something?
Source: http://www.housingwatch.com/2010/07/08/miami-beach-luxury-real-estate-gets-cheaper-as-short-sales-aboun/
By Josie Gulliksen
Tuesday, July 6, 2010
South Florida Foreclosure Filings Drop 49% in Q-2
According to a new report by Condo Vultures, lenders filed 49 percent fewer foreclosure actions against borrowers in the tricounty South Florida region in the second quarter of 2010 compared to a year earlier.
Banks initiated about 14,500 foreclosure actions in Miami-Dade, Broward, and Palm Beach counties between April and June of 2010 compared to about 28,400 foreclosure actions initiated during the same three-month span of 2009, according to the report based on the Condo Vultures.
For the year, South Florida foreclosure filings are down 34 percent to 34,500 in the first six months of 2010 compared to about 52,200 actions in 2009, 37,800 actions in 2008, and 8,000 actions in 2007, according to the report based on Clerk of the Court records in Miami-Dade, Broward, and Palm Beach counties.
"Lenders filed an average of 190 foreclosure actions per calendar day in the first half of 2010," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based Condo Vultures LLC. "As high as the current number seems, the pace is down significantly from recent years when a daily average of 288 actions were filed in 2009 and 209 actions in 2008. Prior to the real estate crash, lenders filed fewer than 50 foreclosure actions per calendar day."
Peter Zalewski
Since 2007, lenders have filed more than 240,000 foreclosures actions in the tricounty South Florida region. Lenders normally file a foreclosure action - also known as a Lis Pendens or notice of default - when borrowers fall 90 days behind on their monthly mortgage payments.
At the current pace, South Florida would experience less than 70,000 foreclosure actions in all of 2010. South Florida's foreclosure filings jumped from 33,000 actions in 2007 to 76,000 in 2008 before reaching 97,000 in 2009, according to the Condo Vultures.
In Miami-Dade County, where Aventura, Key Biscayne, and Miami Beach are located, the number of foreclosure filings is down 48 percent to 8,000 in the first half of 2010. In previous years for the same period, the county experienced 15,300 filings in 2009, 10,300 filings in 2008, and 3,700 filings in 2007.
In Broward County, where Fort Lauderdale, Hollywood, and Pompano Beach are located, foreclosure filings are down 33 percent to about 15,700 actions in the first half of 2010 compared to about 23,300 actions in 2009 and 16,700 actions in 2008. Back in 2007, there were about 2,800 foreclosure filings in Broward in the first six months of that year.
In Palm Beach County, where Boca Raton, Delray Beach, and West Palm Beach are located, the number of foreclosure actions is down 21 percent to 10,800 in the first half of this year. By comparison, foreclosure actions totaled more than 13,500 in 2009, about 10,800 in 2008, and nearly 1,500 in 2007, according to Condo Vultures.
Economics and new government directives are having a slowing effect on South Florida foreclosures.
At the start of the housing crash in 2007, lenders estimated the typical foreclosure would take about six months to repossess a property at a cost of about $40,000 in the loss of debt service, damage, court courts, and attorney's fees. By 2009 as the foreclosure filings were spiking, the process extended out to an average of 18 months with an estimated cost of at least $100,000 per repossession, industry watchers said.
The additional costs and length of time necessary to repossess a property resulted from a variety of reasons, including new legislation and directives requiring lenders to work with borrowers to attempt to modify mortgages in hopes of keeping primary users in their homes. The government directors were prompted by the devastating economic downturn that impacted many borrowers who lost jobs as unemployment rate topped 10 percent and home values dropped dramatically.
Another contributing factor to the decrease in the foreclosure filings is simply the cost involved with repossessing a property compared to completing a short sale, where a borrower unloads a property with a bank's approval at a price below the outstanding loan amount. Lenders have found that once a property is finally repossessed, the bank-owned residence often times sells at the same price as a short sale.
A series of new Florida laws pertaining to condominium units are expected to encourage even more short sales instead of foreclosures.
As of July 2010, lenders are now responsible for paying 12 months - twice as long as previously - of past due condo association fees upon repossessing a property. Under the old legislation, only six months of past due association fees were required to be paid by the lender of a repossessed property.
"The South Florida real estate market is really at a crossroads right now," Zalewski said. "The unknown is whether another wave of foreclosures is coming down the pike given that a number of exotic mortgages are in the process of resetting this year."
Source: http://www.realestatechannel.com/us-markets/residential-real-estate-1/real-estate-news-south-florida-foreclosure-filings-condo-vultures-miami-home-foreclosures-miami-condo-foreclosures-ft-lauderdale-condo-foreclosures-2804.php
Banks initiated about 14,500 foreclosure actions in Miami-Dade, Broward, and Palm Beach counties between April and June of 2010 compared to about 28,400 foreclosure actions initiated during the same three-month span of 2009, according to the report based on the Condo Vultures.
For the year, South Florida foreclosure filings are down 34 percent to 34,500 in the first six months of 2010 compared to about 52,200 actions in 2009, 37,800 actions in 2008, and 8,000 actions in 2007, according to the report based on Clerk of the Court records in Miami-Dade, Broward, and Palm Beach counties.
"Lenders filed an average of 190 foreclosure actions per calendar day in the first half of 2010," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based Condo Vultures LLC. "As high as the current number seems, the pace is down significantly from recent years when a daily average of 288 actions were filed in 2009 and 209 actions in 2008. Prior to the real estate crash, lenders filed fewer than 50 foreclosure actions per calendar day."
Peter Zalewski
Since 2007, lenders have filed more than 240,000 foreclosures actions in the tricounty South Florida region. Lenders normally file a foreclosure action - also known as a Lis Pendens or notice of default - when borrowers fall 90 days behind on their monthly mortgage payments.
At the current pace, South Florida would experience less than 70,000 foreclosure actions in all of 2010. South Florida's foreclosure filings jumped from 33,000 actions in 2007 to 76,000 in 2008 before reaching 97,000 in 2009, according to the Condo Vultures.
In Miami-Dade County, where Aventura, Key Biscayne, and Miami Beach are located, the number of foreclosure filings is down 48 percent to 8,000 in the first half of 2010. In previous years for the same period, the county experienced 15,300 filings in 2009, 10,300 filings in 2008, and 3,700 filings in 2007.
In Broward County, where Fort Lauderdale, Hollywood, and Pompano Beach are located, foreclosure filings are down 33 percent to about 15,700 actions in the first half of 2010 compared to about 23,300 actions in 2009 and 16,700 actions in 2008. Back in 2007, there were about 2,800 foreclosure filings in Broward in the first six months of that year.
In Palm Beach County, where Boca Raton, Delray Beach, and West Palm Beach are located, the number of foreclosure actions is down 21 percent to 10,800 in the first half of this year. By comparison, foreclosure actions totaled more than 13,500 in 2009, about 10,800 in 2008, and nearly 1,500 in 2007, according to Condo Vultures.
Economics and new government directives are having a slowing effect on South Florida foreclosures.
At the start of the housing crash in 2007, lenders estimated the typical foreclosure would take about six months to repossess a property at a cost of about $40,000 in the loss of debt service, damage, court courts, and attorney's fees. By 2009 as the foreclosure filings were spiking, the process extended out to an average of 18 months with an estimated cost of at least $100,000 per repossession, industry watchers said.
The additional costs and length of time necessary to repossess a property resulted from a variety of reasons, including new legislation and directives requiring lenders to work with borrowers to attempt to modify mortgages in hopes of keeping primary users in their homes. The government directors were prompted by the devastating economic downturn that impacted many borrowers who lost jobs as unemployment rate topped 10 percent and home values dropped dramatically.
Another contributing factor to the decrease in the foreclosure filings is simply the cost involved with repossessing a property compared to completing a short sale, where a borrower unloads a property with a bank's approval at a price below the outstanding loan amount. Lenders have found that once a property is finally repossessed, the bank-owned residence often times sells at the same price as a short sale.
A series of new Florida laws pertaining to condominium units are expected to encourage even more short sales instead of foreclosures.
As of July 2010, lenders are now responsible for paying 12 months - twice as long as previously - of past due condo association fees upon repossessing a property. Under the old legislation, only six months of past due association fees were required to be paid by the lender of a repossessed property.
"The South Florida real estate market is really at a crossroads right now," Zalewski said. "The unknown is whether another wave of foreclosures is coming down the pike given that a number of exotic mortgages are in the process of resetting this year."
Source: http://www.realestatechannel.com/us-markets/residential-real-estate-1/real-estate-news-south-florida-foreclosure-filings-condo-vultures-miami-home-foreclosures-miami-condo-foreclosures-ft-lauderdale-condo-foreclosures-2804.php
Monday, May 10, 2010
Pending home sales in South Florida jump
Propelled by low prices, attractive interest rates and federal incentives to lock in offers by the month's end, the number of new contracts on South Florida homes soared in April.
Compared with March, pending sales of single-family homes and condominiums increased last month in both Miami-Dade and Broward, mirroring the national upward trend in contracts signed, according to data released Tuesday by the Realtor Association of Greater Miami and the Beaches. Compared with last April, the number skyrocketed.
Pending home sales track signed contracts that haven't yet closed -- a figure that may have been unusually high for April because buyers had to sign contracts by April 30 to qualify for federal tax credits. To finalize the credit -- $8,000 for first-timers, $6,500 for repeat buyers -- they must close by June 30.
The number of pending home sales overall ticked up by 6.6 percent in Miami-Dade in April, with 10,392 compared with 9,751 in March. In Broward, pending home sales increased from 8,173 in March to 8,525 in April, up 4.3 percent.
Those increases represent huge leaps over last year's numbers. In Miami-Dade, pending sales increased 71 percent year over year; the jump was 64 percent in Broward, figures that point to a recovering market, real estate agents and analysts say.
Sales have increased for the past few months as home prices have fallen.
NEARING BOTTOM?
Independent housing analyst Jack McCabe said the market is likely nearing the bottom, but still must deal with foreclosures and short sales, which keep prices low.
``I think we're going to see a pretty decent year as far as sales numbers, but I don't see prices going up,'' he said.
``The state of paralysis, I think, is pretty much over,'' said Terri Bersach, chairman of the association, which released the data with the Southeast Florida Multiple Listing Service.
Nationally, pending home sales increased in March. The index of sales contracts by the National Association of Realtors rose 5.3 percent from February and 21 percent over last March.
DROP PREDICTED
The national association's chief economist, Lawrence Yun, predicted a drop in sales in the near future.
But South Florida agents say they aren't too concerned about the expired credit.
Jo-Ann Forster, a broker associate with Esslinger Wooten Maxwell, said the tax credit was attractive to buyers looking at less expensive properties.
``If you're going to take all of Miami-Dade into consideration, you're going to see a drop-off,'' Forster said. ``If you take our niche markets, I don't think it's going to have a cataclysmic reaction.''
Anthony Askowitz, a broker and owner of two Re/Max offices, said the timing is good because May and June are typically busy sales months.
``If Miami had a season, this is definitely the big season,'' he said.
Source: http://www.miamiherald.com/2010/05/05/1613443/pending-home-sales-jump.html
By HANNAH SAMPSON
hsampson@MiamiHerald.com
Compared with March, pending sales of single-family homes and condominiums increased last month in both Miami-Dade and Broward, mirroring the national upward trend in contracts signed, according to data released Tuesday by the Realtor Association of Greater Miami and the Beaches. Compared with last April, the number skyrocketed.
Pending home sales track signed contracts that haven't yet closed -- a figure that may have been unusually high for April because buyers had to sign contracts by April 30 to qualify for federal tax credits. To finalize the credit -- $8,000 for first-timers, $6,500 for repeat buyers -- they must close by June 30.
The number of pending home sales overall ticked up by 6.6 percent in Miami-Dade in April, with 10,392 compared with 9,751 in March. In Broward, pending home sales increased from 8,173 in March to 8,525 in April, up 4.3 percent.
Those increases represent huge leaps over last year's numbers. In Miami-Dade, pending sales increased 71 percent year over year; the jump was 64 percent in Broward, figures that point to a recovering market, real estate agents and analysts say.
Sales have increased for the past few months as home prices have fallen.
NEARING BOTTOM?
Independent housing analyst Jack McCabe said the market is likely nearing the bottom, but still must deal with foreclosures and short sales, which keep prices low.
``I think we're going to see a pretty decent year as far as sales numbers, but I don't see prices going up,'' he said.
``The state of paralysis, I think, is pretty much over,'' said Terri Bersach, chairman of the association, which released the data with the Southeast Florida Multiple Listing Service.
Nationally, pending home sales increased in March. The index of sales contracts by the National Association of Realtors rose 5.3 percent from February and 21 percent over last March.
DROP PREDICTED
The national association's chief economist, Lawrence Yun, predicted a drop in sales in the near future.
But South Florida agents say they aren't too concerned about the expired credit.
Jo-Ann Forster, a broker associate with Esslinger Wooten Maxwell, said the tax credit was attractive to buyers looking at less expensive properties.
``If you're going to take all of Miami-Dade into consideration, you're going to see a drop-off,'' Forster said. ``If you take our niche markets, I don't think it's going to have a cataclysmic reaction.''
Anthony Askowitz, a broker and owner of two Re/Max offices, said the timing is good because May and June are typically busy sales months.
``If Miami had a season, this is definitely the big season,'' he said.
Source: http://www.miamiherald.com/2010/05/05/1613443/pending-home-sales-jump.html
By HANNAH SAMPSON
hsampson@MiamiHerald.com
Tuesday, September 8, 2009
Caribbean Miami Beach gets new owner
A New York City investor is the new owner of the Caribbean Miami Beach condominium.
The buyer, an affiliate of New York City-based Melohn Properties, bought the mortgage from ailing Corus Bank.
The Chicago-based bank (NASDAQ: CORS) had given Caribbean Group Owners a $127.7 million mortgage to renovate the hotel into a 103-unit oceanfront condominium at 3737 Collins Ave., in Miami Beach. The developer, a partnership between Christa Development and Bluerock Real Estate, had sold just 13 units since July 2008.
Corus Bank, which faces a risk of failure under the weight of delinquent condo construction loans, sold its mortgage on Aug. 19 to 3737 Caribbean Partners. A source familiar with the deal said that Corus Bank had previously offered the note for sale at between $50 million and $55 million.
Christa Development VP Frank Christa said the developers have voluntarily turned over the Caribbean Miami Beach to the new lender.
“The new lender is in charge of it,” said Christa, who noted that no foreclosure lawsuit was filed.
Marcela Catapano Criscito, a real estate agent hired by the owner of the Caribbean Miami Beach to sell units, concurred.
The Caribbean Miami Beach was designed by architect Kobi Karp, with interiors designed by Christopher Ciccone, the brother of pop star Madonna. It has a heated infinity-edge swimming pool, spa, sun deck, billiard lounge, fitness center, wine vault, cigar humidor and 24-hour concierge service.
Units were priced from $500,000 to $8 million. They are divided between the renovated six-story building, with 35 units, and a new 19-story tower, with 68 units.
Condo VulturesCEO Peter Zalewski called the Caribbean Miami Beach the crown jewel of Corus Bank’s loan portfolio. With its strong location and quality design, it can probably have its units sell for between $450 and $550 a square foot, he said. He added that the 13 sales that were closed at Caribbean Miami Beach by the developer went for an average of $848 per square foot. Those sales generated $21.4 million in revenue.
For more information check the website http://www.buymiami.net/
“The owner will flip these units immediately,” Zalewski said. “They probably have the ability to burn through most of them during the tourism season.”
Zalewski, who has looked at the project on behalf of potential buyers, said Corus Bank could not have made this deal without the Federal Deposit Insurance Corp. signing off on it. At least six groups were competing to take it over, he said.
“The Caribbean was the most desirable bulk play in South Beach because so few projects there were in distress,” Zalewski said.
A Melohn Properties official was not immediately available for comment.
For more information check the website http://www.buymiami.net/
Source: http://www.bizjournals.com/southflorida/stories/2009/08/31/daily66.html
Brian Bandell
Labels: condominiums, houses, miami beach, south beach
The buyer, an affiliate of New York City-based Melohn Properties, bought the mortgage from ailing Corus Bank.
The Chicago-based bank (NASDAQ: CORS) had given Caribbean Group Owners a $127.7 million mortgage to renovate the hotel into a 103-unit oceanfront condominium at 3737 Collins Ave., in Miami Beach. The developer, a partnership between Christa Development and Bluerock Real Estate, had sold just 13 units since July 2008.
Corus Bank, which faces a risk of failure under the weight of delinquent condo construction loans, sold its mortgage on Aug. 19 to 3737 Caribbean Partners. A source familiar with the deal said that Corus Bank had previously offered the note for sale at between $50 million and $55 million.
Christa Development VP Frank Christa said the developers have voluntarily turned over the Caribbean Miami Beach to the new lender.
“The new lender is in charge of it,” said Christa, who noted that no foreclosure lawsuit was filed.
Marcela Catapano Criscito, a real estate agent hired by the owner of the Caribbean Miami Beach to sell units, concurred.
The Caribbean Miami Beach was designed by architect Kobi Karp, with interiors designed by Christopher Ciccone, the brother of pop star Madonna. It has a heated infinity-edge swimming pool, spa, sun deck, billiard lounge, fitness center, wine vault, cigar humidor and 24-hour concierge service.
Units were priced from $500,000 to $8 million. They are divided between the renovated six-story building, with 35 units, and a new 19-story tower, with 68 units.
Condo VulturesCEO Peter Zalewski called the Caribbean Miami Beach the crown jewel of Corus Bank’s loan portfolio. With its strong location and quality design, it can probably have its units sell for between $450 and $550 a square foot, he said. He added that the 13 sales that were closed at Caribbean Miami Beach by the developer went for an average of $848 per square foot. Those sales generated $21.4 million in revenue.
For more information check the website http://www.buymiami.net/
“The owner will flip these units immediately,” Zalewski said. “They probably have the ability to burn through most of them during the tourism season.”
Zalewski, who has looked at the project on behalf of potential buyers, said Corus Bank could not have made this deal without the Federal Deposit Insurance Corp. signing off on it. At least six groups were competing to take it over, he said.
“The Caribbean was the most desirable bulk play in South Beach because so few projects there were in distress,” Zalewski said.
A Melohn Properties official was not immediately available for comment.
For more information check the website http://www.buymiami.net/
Source: http://www.bizjournals.com/southflorida/stories/2009/08/31/daily66.html
Brian Bandell
Labels: condominiums, houses, miami beach, south beach
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