With the homebuying market still struggling, real estate agencies are trying to lure potential homeowners into moving to their area by slashing home prices.
In a soon to be released report from the real estate website Trulia.com, home sellers have cut more than $24 billion in potential home equity over the past year and trimmed the cost of properties approximately 79 days after posting the initial asking price. What's more, according to the website, 35 percent of sellers will cut their prices again.
Trulia.com reports that the average home seller dropped their asking price by an average of 8 percent, but that rate is even higher in certain parts of the country, such as Detroit and Cleveland, where the average first-time price cut is 19 percent and 11 percent, respectively.
In a statement obtained by the Miami Herald, Tara-Nicholle Nelson of Trulia.com said home sellers often need to make a second cut to lure buyers, and this usually happens to people who underestimate how deeply they should cut their asking price the first time around.
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 realtors. Show all posts
Showing posts with label realtors. Show all posts
Friday, April 15, 2011
Tuesday, March 8, 2011
Miami New-Condo Sales Revive As Biggest Markets Fall
The new-condo boom struck louder in Miami than it did in other markets and fell hardest there when the thunder stopped.
Now the area stands out again. Its new-condo market is coming back stronger in sales and pricing, though it's a fraction of its old self.
Thank all-cash buyers from Venezuela, Argentina, Brazil, Canada, Europe and other locales. They see Miami's luxury condos at discounted prices as safe havens for investment money.
Positive sales trends continue.
"These people are parking their cash," said Peter Zalewski, principal of real estate consultancy Condo Vultures. "In Venezuela, they're fearful they're going to lose it (under President Hugo Chavez's strong-arm rule). Canadians are saying their currency is on par with the U.S. dollar, so in their minds they are getting a 25% discount."
Of the top eight U.S. metro areas, Miami was the only one in 2010 to show volume gains in attached-home closings, mainly condos, according to data gathered by Hanley Wood Market Intelligence.
The other seven fell 5% to 37% as Miami rose 8%. New York dropped 13%, Los Angeles 20% and San Francisco 37%. Unit sales totaled 4,120 in Miami — above L.A.'s 3,935 — but that still pales vs. pre-crash years 2005-07, when 20,000 to 30,000 units sold each year.
The Miami metro figures cited by Hanley Wood include Miami-Dade, Broward and Palm Beach counties. Miami-Dade is almost 70% of the total, at 2,842 closings.
"Miami is a happening place; it's really become a dynamic marketplace," said Jay Massirman, managing director of Asentus Real Estate, a real estate investment and merchant banking firm in Miami Beach.
All About Inventory
L.A. and other spots that dropped off in new-condo sales hadn't seen as big a spike in construction as the Miami area. Some 85,000 new condo units were built in the area from 2003-10, with 49,000 in coastal areas east of I-95, says Condo Vultures. Greater downtown Miami accounted for 22,250 units.
Bulk sales have figured in Miami's condo recovery, as investors bet that South Florida's cachet will continue. Last year 3,700 units in downtown Miami sold, up 57% from 2,300 in 2009, says Condo Vultures. Some 1,600 units sold in 10 bulk deals, Zalewski says. The rest were to individual all-cash buyers, mostly from overseas.
New construction has virtually halted as the market works through new inventory from prior years that hasn't sold yet. As prices rise, the pace of bulk buying seems to be slowing, at least in the coastal and downtown urban cores, leaving those markets to all-cash individual buyers, local watchers say.
Meanwhile, in Miami-Dade County the median price of an attached home — a condo, for the most part — rose 11% to $288,614 last year, says Hanley Wood. The median price was higher than the peak year of 2006, when 17,400 closings were recorded. But many low-price condos have been converted to rentals, skewing inventory to luxury units.
"A lot of the inventory has been absorbed fairly rapidly and it is continuing to be absorbed," Massirman said. Where blocks of brand-new condo towers on Brickell Avenue near downtown stood dark, "lights are on, people are jogging on the street and dining in restaurants."
Buying In Landlord Land
Most new occupants are renters.
"The number of buyers we see who are end users is a very tiny minority," Zalewski said. "The family of four with a dog doesn't have a chance in this (new-construction) market because there's no financing. If you can find a lender, you have to put down 50%."
Even so, the sales rebound is welcome relief to condo associations that have struggled to keep up services at empty or half-empty buildings. At least new owners pay monthly association fees, as their tenants live the high life, enjoying amenities such as sleek kitchens and rooftop pools.
"A lot of these association issues are working themselves out," Massirman said.
Falling prices had a lot to do with the rebound. "In 2009, prices started to bottom," Massirman said, noting that new condos on Brickell fell to as low as $200 a square foot from $600 three years earlier. In late 2009, investors "started piling in."
Bulk buyers and other investors are starting to turn their sights to suburban neighborhoods away from the coast, where prices are still falling, observers say.
"East of I-95 is well past the bottom," Zalewski said. "West of I-95 is a market that doesn't have any kind of safety stop. The 10% local unemployment rate has a drastic effect on the suburban market."
The median price of an existing single-family home in the Miami metro area, which includes condos, fell 18.3% in January from a year ago, to $165,800, says the National Association of Realtors. As prices fell, sales rose 32.9%.
Investors scouting the western suburbs of Miami are looking to pick up multiple units in garden-style condo conversions for $25,000 to $50,000 each, Zalewski says.
"The new-condo market is starting to slow. The resale condo market is starting to heat up," he said.
New construction has virtually halted as the market works through new inventory from prior years that hasn't sold yet. As prices rise, the pace of bulk buying seems to be slowing, at least in the coastal and downtown urban cores, leaving those markets to all-cash individual buyers, local watchers say.
Meanwhile, in Miami-Dade County the median price of an attached home — a condo, for the most part — rose 11% to $288,614 last year from 2009, says Hanley Wood. Both years showed higher median prices than the peak year of 2006, when 17,400 closings were recorded.
"A lot of the inventory has been absorbed fairly rapidly and it is continuing to be absorbed," Massirman said. Where blocks of brand-new condo towers on Brickell Avenue near downtown stood dark, "lights are on, people are jogging on the street and dining in restaurants."
Buying In Landlord Land
Most new occupants are renters.
"The number of buyers we see who are end users is a very tiny minority," Zalewski said. "The family of four with a dog doesn't have a chance in this (new-construction) market because there's no financing. If you can find a lender, you have to put down 50%."
Even so, the sales rebound is welcome relief to condo associations that have struggled to keep up services at empty or half-empty buildings. At least new owners pay monthly association fees, as their tenants live the high life, enjoying amenities such as sleek kitchens and rooftop pools.
"A lot of these association issues are working themselves out," Massirman said.
Falling prices had a lot to do with the rebound. "In 2009, prices started to bottom," Massirman said, noting that new condos on Brickell fell to as low as $200 a square foot from $600 three years earlier. In late 2009, investors "started piling in."
Bulk buyers and other investors are starting to turn their sights to suburban neighborhoods away from the coast, where prices are still falling, observers say.
"East of I-95 is well past the bottom," Zalewski said. "West of I-95 is a market that doesn't have any kind of safety stop. The 10% local unemployment rate has a drastic effect on the suburban market."
The median price of an existing single-family home in the Miami metro area, which includes condos, fell 18.3% in January from a year ago, to $165,800, says the National Association of Realtors. As prices fell, sales rose 32.9%.
Investors scouting the western suburbs of Miami are looking to pick up multiple units in garden-style condo conversions for $25,000 to $50,000 each, Zalewski says.
"The new-condo market is starting to slow. The resale condo market is starting to heat up," he said.
Source: http://www.investors.com/NewsAndAnalysis/Article/564849/201103031443/Miami-New-Condo-Sales-Revive-As-Biggest-Markets-Fall.aspx
By MARILYN ALVA, INVESTOR'S BUSINESS DAILY
Now the area stands out again. Its new-condo market is coming back stronger in sales and pricing, though it's a fraction of its old self.
Thank all-cash buyers from Venezuela, Argentina, Brazil, Canada, Europe and other locales. They see Miami's luxury condos at discounted prices as safe havens for investment money.
Positive sales trends continue.
"These people are parking their cash," said Peter Zalewski, principal of real estate consultancy Condo Vultures. "In Venezuela, they're fearful they're going to lose it (under President Hugo Chavez's strong-arm rule). Canadians are saying their currency is on par with the U.S. dollar, so in their minds they are getting a 25% discount."
Of the top eight U.S. metro areas, Miami was the only one in 2010 to show volume gains in attached-home closings, mainly condos, according to data gathered by Hanley Wood Market Intelligence.
The other seven fell 5% to 37% as Miami rose 8%. New York dropped 13%, Los Angeles 20% and San Francisco 37%. Unit sales totaled 4,120 in Miami — above L.A.'s 3,935 — but that still pales vs. pre-crash years 2005-07, when 20,000 to 30,000 units sold each year.
The Miami metro figures cited by Hanley Wood include Miami-Dade, Broward and Palm Beach counties. Miami-Dade is almost 70% of the total, at 2,842 closings.
"Miami is a happening place; it's really become a dynamic marketplace," said Jay Massirman, managing director of Asentus Real Estate, a real estate investment and merchant banking firm in Miami Beach.
All About Inventory
L.A. and other spots that dropped off in new-condo sales hadn't seen as big a spike in construction as the Miami area. Some 85,000 new condo units were built in the area from 2003-10, with 49,000 in coastal areas east of I-95, says Condo Vultures. Greater downtown Miami accounted for 22,250 units.
Bulk sales have figured in Miami's condo recovery, as investors bet that South Florida's cachet will continue. Last year 3,700 units in downtown Miami sold, up 57% from 2,300 in 2009, says Condo Vultures. Some 1,600 units sold in 10 bulk deals, Zalewski says. The rest were to individual all-cash buyers, mostly from overseas.
New construction has virtually halted as the market works through new inventory from prior years that hasn't sold yet. As prices rise, the pace of bulk buying seems to be slowing, at least in the coastal and downtown urban cores, leaving those markets to all-cash individual buyers, local watchers say.
Meanwhile, in Miami-Dade County the median price of an attached home — a condo, for the most part — rose 11% to $288,614 last year, says Hanley Wood. The median price was higher than the peak year of 2006, when 17,400 closings were recorded. But many low-price condos have been converted to rentals, skewing inventory to luxury units.
"A lot of the inventory has been absorbed fairly rapidly and it is continuing to be absorbed," Massirman said. Where blocks of brand-new condo towers on Brickell Avenue near downtown stood dark, "lights are on, people are jogging on the street and dining in restaurants."
Buying In Landlord Land
Most new occupants are renters.
"The number of buyers we see who are end users is a very tiny minority," Zalewski said. "The family of four with a dog doesn't have a chance in this (new-construction) market because there's no financing. If you can find a lender, you have to put down 50%."
Even so, the sales rebound is welcome relief to condo associations that have struggled to keep up services at empty or half-empty buildings. At least new owners pay monthly association fees, as their tenants live the high life, enjoying amenities such as sleek kitchens and rooftop pools.
"A lot of these association issues are working themselves out," Massirman said.
Falling prices had a lot to do with the rebound. "In 2009, prices started to bottom," Massirman said, noting that new condos on Brickell fell to as low as $200 a square foot from $600 three years earlier. In late 2009, investors "started piling in."
Bulk buyers and other investors are starting to turn their sights to suburban neighborhoods away from the coast, where prices are still falling, observers say.
"East of I-95 is well past the bottom," Zalewski said. "West of I-95 is a market that doesn't have any kind of safety stop. The 10% local unemployment rate has a drastic effect on the suburban market."
The median price of an existing single-family home in the Miami metro area, which includes condos, fell 18.3% in January from a year ago, to $165,800, says the National Association of Realtors. As prices fell, sales rose 32.9%.
Investors scouting the western suburbs of Miami are looking to pick up multiple units in garden-style condo conversions for $25,000 to $50,000 each, Zalewski says.
"The new-condo market is starting to slow. The resale condo market is starting to heat up," he said.
New construction has virtually halted as the market works through new inventory from prior years that hasn't sold yet. As prices rise, the pace of bulk buying seems to be slowing, at least in the coastal and downtown urban cores, leaving those markets to all-cash individual buyers, local watchers say.
Meanwhile, in Miami-Dade County the median price of an attached home — a condo, for the most part — rose 11% to $288,614 last year from 2009, says Hanley Wood. Both years showed higher median prices than the peak year of 2006, when 17,400 closings were recorded.
"A lot of the inventory has been absorbed fairly rapidly and it is continuing to be absorbed," Massirman said. Where blocks of brand-new condo towers on Brickell Avenue near downtown stood dark, "lights are on, people are jogging on the street and dining in restaurants."
Buying In Landlord Land
Most new occupants are renters.
"The number of buyers we see who are end users is a very tiny minority," Zalewski said. "The family of four with a dog doesn't have a chance in this (new-construction) market because there's no financing. If you can find a lender, you have to put down 50%."
Even so, the sales rebound is welcome relief to condo associations that have struggled to keep up services at empty or half-empty buildings. At least new owners pay monthly association fees, as their tenants live the high life, enjoying amenities such as sleek kitchens and rooftop pools.
"A lot of these association issues are working themselves out," Massirman said.
Falling prices had a lot to do with the rebound. "In 2009, prices started to bottom," Massirman said, noting that new condos on Brickell fell to as low as $200 a square foot from $600 three years earlier. In late 2009, investors "started piling in."
Bulk buyers and other investors are starting to turn their sights to suburban neighborhoods away from the coast, where prices are still falling, observers say.
"East of I-95 is well past the bottom," Zalewski said. "West of I-95 is a market that doesn't have any kind of safety stop. The 10% local unemployment rate has a drastic effect on the suburban market."
The median price of an existing single-family home in the Miami metro area, which includes condos, fell 18.3% in January from a year ago, to $165,800, says the National Association of Realtors. As prices fell, sales rose 32.9%.
Investors scouting the western suburbs of Miami are looking to pick up multiple units in garden-style condo conversions for $25,000 to $50,000 each, Zalewski says.
"The new-condo market is starting to slow. The resale condo market is starting to heat up," he said.
Source: http://www.investors.com/NewsAndAnalysis/Article/564849/201103031443/Miami-New-Condo-Sales-Revive-As-Biggest-Markets-Fall.aspx
By MARILYN ALVA, INVESTOR'S BUSINESS DAILY
Tuesday, March 1, 2011
Pending home sales up in Miami-Dade, Broward
Pending home sales in Miami-Dade and Broward counties rose in February, according to the Miami Association of Realtors.
Miami-Dade saw the biggest boost, with total pending sales – including single-family homes and condominiums – rising 22 percent, year-over-year, in February – to 11,182 from 9,164.
An increase in pending sales is an indication of future market conditions. A sale is listed as pending when a contract is signed, but the transaction has not closed.
Pending condo deals in Miami-Dade County saw the biggest year-over-year gains in February, increasing 26.9 percent to 6,497 from 5,122.
Sales of single-family homes in Miami-Dade rose 16 percent, to 4,685 from 4,042.
In Broward County, total pending sales increased 7.7 percent in February, to 8,391 from 7,791 contracts signed.
The county’s pending condo sales outperformed single-family home selling, rising 12.3 percent, year-over-year, to 4,878 from 4,343 contracts.
Pending sales of single-family homes increased 2 percent, to 3,513 from 3,448.
“Current statistics for pending sales reflect the positive performance of the South Florida real estate market over the last few months,” said Jack H. Levine, chairman of the Miami Association of Realtors. “We have seen year-over-year increase for pending sales for nearly one year. Pending sales have also increased month-over-month 10 out of the last 13 months.”
Nationwide, pending home sales decreased in January for the second straight month, according to the National Association of Realtors. The Pending Home Sales Index, a national forward-looking indicator, declined 2.8 percent from December to January, and is down 1.5 percent from its January 2010 level.
Source: http://www.bizjournals.com/southflorida/news/2011/02/28/pending-home-sales-up-in-miami-dade.html
Miami-Dade saw the biggest boost, with total pending sales – including single-family homes and condominiums – rising 22 percent, year-over-year, in February – to 11,182 from 9,164.
An increase in pending sales is an indication of future market conditions. A sale is listed as pending when a contract is signed, but the transaction has not closed.
Pending condo deals in Miami-Dade County saw the biggest year-over-year gains in February, increasing 26.9 percent to 6,497 from 5,122.
Sales of single-family homes in Miami-Dade rose 16 percent, to 4,685 from 4,042.
In Broward County, total pending sales increased 7.7 percent in February, to 8,391 from 7,791 contracts signed.
The county’s pending condo sales outperformed single-family home selling, rising 12.3 percent, year-over-year, to 4,878 from 4,343 contracts.
Pending sales of single-family homes increased 2 percent, to 3,513 from 3,448.
“Current statistics for pending sales reflect the positive performance of the South Florida real estate market over the last few months,” said Jack H. Levine, chairman of the Miami Association of Realtors. “We have seen year-over-year increase for pending sales for nearly one year. Pending sales have also increased month-over-month 10 out of the last 13 months.”
Nationwide, pending home sales decreased in January for the second straight month, according to the National Association of Realtors. The Pending Home Sales Index, a national forward-looking indicator, declined 2.8 percent from December to January, and is down 1.5 percent from its January 2010 level.
Source: http://www.bizjournals.com/southflorida/news/2011/02/28/pending-home-sales-up-in-miami-dade.html
Tuesday, February 22, 2011
Cash is King as New Wave of Home Buyers Shuns Loans and Pays Small Bucks for Bargains
It's a new beginning in America's home-buying market. More and more buyers are saying no to expensive and convoluted bank loans and paying cash instead for bargain properties.
The Wall Street Journal reports scores of bargain-basement deals being closed by cash-bidding buyers who feel the bottom has been reached in the market.
Where are they getting the cash from? They are selling other investments like paintings, cars and jewelry.
For example, In Atlanta, 62-year-old piano teacher Virginia Hall-Busch paid cash for a 93-year-old three-bedroom, one-bath bungalow in scenic Stone Mountain, GA.
The property initially listed for $159,000, then dropped to $129,000 and then to $79,900. The piano teacher didn't think her bid of $52,500 would be taken seriously. It was. She is the new owner.
In Miami Beach, Richard Stoker, a 73-year-old retired sales executive, paid cash for two condominiums and soon plans to close on a third. He is paying $1.8 million, $1.2 million and $1 million for properties that were initially listed for double those amounts.
The Stokers have a home in Potomac, Md., but spend most of the year in Florida. Stoker doesn't plan to rent out any of his new properties. He tells the WSJ he and his wife will live in one with two dogs, his son might live in another and the third will house an older dog and guests.
Cash buyers represented more than half of all transactions in the Miami-Fort Lauderdale area last year, according to an analysis from real-estate portal Zillow.com.
In the fourth quarter of 2006, they represented just 13% of deals. Meanwhile, downtown Miami prices rose 15% in 2010 from a year earlier, according to the Miami Downtown Development Authority.
The percentage of buyers in Phoenix paying cash hit 42% in 2010--more than triple the rate in 2008, according to Raymond James's equity research division.
Nationally, 28% of sales were all-cash transactions last year, according to the National Association of Realtors. The rate was 14% in October 2008, when the trade group began tracking the measure.
The Federal Reserve reports that Americans increased their use of credit cards in December 2010 for the first time since August 2008.
Henry Schlangen
"Some of the cash purchases reflect a tight lending environment, where even people with good credit and ample down payments are sometimes turned away for conventional borrowing," reports the WSJ.
"The rates are great but the underwriting is brutal," said Henry Schlangen, an agent with real-estate firm Pacific Union International who buys and sells for clients, mainly in Napa Valley, CA.
Schlangen tells the WSJ, "They (lenders) hang these people upside down and shake them till they see what falls out of their pockets. So people are buying with cash and maybe they'll 'Refi' later."
Schlangen, who deals in higher-end properties such as vineyard estates, estimated that 95% of his deals last year were all-cash, up from about half in previous years.
"The deals that are consummating, these are buyers who feel they got a great deal," he said. He notes the number of buyers from China are increasing.
Mohammed Siddiq
Cash buyers can often command 5% to 10% more off the asking price than a potential buyer using a mortgage, Mohammed Siddiq, a real-estate professional in Fort Lauderdale, FL, tells the WSJ.
Sellers prefer cash deals since they close more quickly and avoid risks such as a buyer's job loss or a bank's changing its mind, he says.
Nationally, it isn't clear whether prices have bottomed.
The Case-Shiller index of housing prices in 20 cities showed a steep decline in prices until 2009, when they appeared to bottom and began to trend upward.
But in the second half of last year, prices began falling again. A Zillow index, meanwhile, never noted the uptick, reports the WSJ.
Source: http://www.realestatechannel.com/us-markets/residential-real-estate-1/raymond-james-zillowcom-national-association-of-realtors-henry-schlangen-pacific-union-international-mohammed-siddiq-stone-mountain-ga-miami-beach-skyline-3915.php
Posted by Alex Finkelstein
The Wall Street Journal reports scores of bargain-basement deals being closed by cash-bidding buyers who feel the bottom has been reached in the market.
Where are they getting the cash from? They are selling other investments like paintings, cars and jewelry.
For example, In Atlanta, 62-year-old piano teacher Virginia Hall-Busch paid cash for a 93-year-old three-bedroom, one-bath bungalow in scenic Stone Mountain, GA.
The property initially listed for $159,000, then dropped to $129,000 and then to $79,900. The piano teacher didn't think her bid of $52,500 would be taken seriously. It was. She is the new owner.
In Miami Beach, Richard Stoker, a 73-year-old retired sales executive, paid cash for two condominiums and soon plans to close on a third. He is paying $1.8 million, $1.2 million and $1 million for properties that were initially listed for double those amounts.
The Stokers have a home in Potomac, Md., but spend most of the year in Florida. Stoker doesn't plan to rent out any of his new properties. He tells the WSJ he and his wife will live in one with two dogs, his son might live in another and the third will house an older dog and guests.
Cash buyers represented more than half of all transactions in the Miami-Fort Lauderdale area last year, according to an analysis from real-estate portal Zillow.com.
In the fourth quarter of 2006, they represented just 13% of deals. Meanwhile, downtown Miami prices rose 15% in 2010 from a year earlier, according to the Miami Downtown Development Authority.
The percentage of buyers in Phoenix paying cash hit 42% in 2010--more than triple the rate in 2008, according to Raymond James's equity research division.
Nationally, 28% of sales were all-cash transactions last year, according to the National Association of Realtors. The rate was 14% in October 2008, when the trade group began tracking the measure.
The Federal Reserve reports that Americans increased their use of credit cards in December 2010 for the first time since August 2008.
Henry Schlangen
"Some of the cash purchases reflect a tight lending environment, where even people with good credit and ample down payments are sometimes turned away for conventional borrowing," reports the WSJ.
"The rates are great but the underwriting is brutal," said Henry Schlangen, an agent with real-estate firm Pacific Union International who buys and sells for clients, mainly in Napa Valley, CA.
Schlangen tells the WSJ, "They (lenders) hang these people upside down and shake them till they see what falls out of their pockets. So people are buying with cash and maybe they'll 'Refi' later."
Schlangen, who deals in higher-end properties such as vineyard estates, estimated that 95% of his deals last year were all-cash, up from about half in previous years.
"The deals that are consummating, these are buyers who feel they got a great deal," he said. He notes the number of buyers from China are increasing.
Mohammed Siddiq
Cash buyers can often command 5% to 10% more off the asking price than a potential buyer using a mortgage, Mohammed Siddiq, a real-estate professional in Fort Lauderdale, FL, tells the WSJ.
Sellers prefer cash deals since they close more quickly and avoid risks such as a buyer's job loss or a bank's changing its mind, he says.
Nationally, it isn't clear whether prices have bottomed.
The Case-Shiller index of housing prices in 20 cities showed a steep decline in prices until 2009, when they appeared to bottom and began to trend upward.
But in the second half of last year, prices began falling again. A Zillow index, meanwhile, never noted the uptick, reports the WSJ.
Source: http://www.realestatechannel.com/us-markets/residential-real-estate-1/raymond-james-zillowcom-national-association-of-realtors-henry-schlangen-pacific-union-international-mohammed-siddiq-stone-mountain-ga-miami-beach-skyline-3915.php
Posted by Alex Finkelstein
Tuesday, February 8, 2011
Cash Buyers Lift Housing
Buyers in markets around the U.S. are snapping up homes in all-cash deals, betting that prices are at or near bottom and breathing life into some of the nation's most battered housing markets.
Cash buyers represented more than half of all transactions in the Miami-Fort Lauderdale area last year, according to an analysis from real-estate portal Zillow.com. In the fourth quarter of 2006, they represented just 13% of deals. Meanwhile, downtown Miami prices rose 15% in 2010 from a year earlier, according to the Miami Downtown Development Authority.
The percentage of buyers in Phoenix paying cash hit 42% in 2010—more than triple the rate in 2008, according to Raymond James's equity research division.
Nationally, 28% of sales were all-cash transactions last year, according to the National Association of Realtors. The rate was 14% in October 2008, when the trade group began tracking the measure.
The jump in real-estate purchases made with cash is another sign of the revival of animal spirits in the U.S. economy.
The Dow Jones Industrial Average rose 69.48 points Monday, or 0.6%, to 12161.63, and the Standard & Poor's 500-stock index rose 8.18 points, or 0.6%, to 1319.05.
Monday's announcements of $13 billion in acquisitions lifted stocks on hopes of more deals, share buybacks and dividends as companies regain momentum in an improving economy.
The two stock indexes have soared more than 80% since early March 2009.
The Federal Reserve reported that Americans increased their use of credit cards in December for the first time since August 2008, showing that consumers are getting less skittish about opening their wallets. Investors also were soothed Monday by encouraging signs in Egypt, including last weekend's reopening of banks.
Residential real estate has been slower to bounce back than stocks, but the presence of apparent bargains is luring in newly confident buyers.
Richard Stoker, a retired sales executive, recently plunked down cash for two condominiums in Miami Beach, and plans to close on one more in coming days. He loves the complex's ocean views, four swimming pools and activities such as yoga and Pilates.
But what also motivated the purchase, said the 73-year-old, was that "the prices were just irresistible. Florida's been hit pretty hard." To pay the $1.8 million, $1.2 million and $1 million prices on the condos, Mr. Stoker and his wife, Jane, cashed out of some financial investments and sold a Roy Lichtenstein painting and an Alexander Calder mobile.
Mr. Stoker could have taken out mortgages, but decided to pay cash. "It was a good time to lighten up in the art market and take on real estate at a favorable price," he said.
The harder a market has been hit, say economists, the higher the percentage of cash deals. Last summer, piano teacher Virginia Hall-Busch told a real-estate agent she met through the Rotary Club to keep her posted on deals on historic houses in Stone Mountain, Ga.
A few days later, Ms. Hall-Busch, 62, got a call about a 1918 bungalow with three bedrooms and one bathroom listed for "short sale," which in the real-estate world means at a price lower than what's owed on it. The home had been on the market for $159,000, then dropped to $129,000 and then to $79,900.
"I offered them 50," she said. "I figured, it wasn't like I needed a place to live. I can afford to be a little cocky here."
Ms. Hall-Busch closed in October for $52,500 and began renovations within weeks.
"When you have a bad economy, it's hard on lots of people," she said. "But right now if you've got the money to put down on a house, long term it's going to be good thing."
Some of the cash purchases reflect a tight lending environment, where even people with good credit and ample down payments are sometimes turned away for conventional borrowing.
"The rates are great but the underwriting is brutal," said Henry Schlangen, an agent with real-estate firm Pacific Union International who buys and sells for clients, mainly in Napa Valley, Calif.
"They hang these people upside down and shake them till they see what falls out of their pockets. So people are buying with cash and maybe they'll 'refi' later."
Mr. Schlangen, who deals in higher-end properties such as vineyard estates, estimated that 95% of his deals last year were all-cash, up from about half in previous years. "The deals that are consummating, these are buyers who feel they got a great deal," he said, noting a surge of buyers from China.
Cash buyers can often command 5% to 10% more off the asking price than a potential buyer using a mortgage, said Mohammed Siddiq, a real-estate professional in Fort Lauderdale, Fla. Sellers prefer cash deals since they close more quickly and avoid risks such as a buyer's job loss or a bank's changing its mind.
And while many buyers making low-ball offers dig their heels, Mr. Siddiq said he has started to see bidding wars and slightly increasing prices.
Nationally, it isn't clear whether prices have bottomed. The Case-Shiller index of housing prices in 20 cities showed a steep decline in prices until 2009, when they appeared to bottom and began to trend upward. But in the second half of last year, prices began falling again. A Zillow index, meanwhile, never noted the uptick.
Since mid-October, Canyon Ranch in Miami Beach, the development Mr. Stoker bought into, has sold 35 units, with a third of the buyers from overseas and many others retiring from the Northeast.
The Stokers have a home in Potomac, Md., but spend most of the year in Florida. Mr. Stoker doesn't plan to rent out any of his new properties, saying he and his wife will live in one with two dogs, his son might live in another and the third will house an older dog and guests.
Source: http://online.wsj.com/article/SB10001424052748704570104576124502975117950.html#articleTabs%3Darticle
Cash buyers represented more than half of all transactions in the Miami-Fort Lauderdale area last year, according to an analysis from real-estate portal Zillow.com. In the fourth quarter of 2006, they represented just 13% of deals. Meanwhile, downtown Miami prices rose 15% in 2010 from a year earlier, according to the Miami Downtown Development Authority.
The percentage of buyers in Phoenix paying cash hit 42% in 2010—more than triple the rate in 2008, according to Raymond James's equity research division.
Nationally, 28% of sales were all-cash transactions last year, according to the National Association of Realtors. The rate was 14% in October 2008, when the trade group began tracking the measure.
The jump in real-estate purchases made with cash is another sign of the revival of animal spirits in the U.S. economy.
The Dow Jones Industrial Average rose 69.48 points Monday, or 0.6%, to 12161.63, and the Standard & Poor's 500-stock index rose 8.18 points, or 0.6%, to 1319.05.
Monday's announcements of $13 billion in acquisitions lifted stocks on hopes of more deals, share buybacks and dividends as companies regain momentum in an improving economy.
The two stock indexes have soared more than 80% since early March 2009.
The Federal Reserve reported that Americans increased their use of credit cards in December for the first time since August 2008, showing that consumers are getting less skittish about opening their wallets. Investors also were soothed Monday by encouraging signs in Egypt, including last weekend's reopening of banks.
Residential real estate has been slower to bounce back than stocks, but the presence of apparent bargains is luring in newly confident buyers.
Richard Stoker, a retired sales executive, recently plunked down cash for two condominiums in Miami Beach, and plans to close on one more in coming days. He loves the complex's ocean views, four swimming pools and activities such as yoga and Pilates.
But what also motivated the purchase, said the 73-year-old, was that "the prices were just irresistible. Florida's been hit pretty hard." To pay the $1.8 million, $1.2 million and $1 million prices on the condos, Mr. Stoker and his wife, Jane, cashed out of some financial investments and sold a Roy Lichtenstein painting and an Alexander Calder mobile.
Mr. Stoker could have taken out mortgages, but decided to pay cash. "It was a good time to lighten up in the art market and take on real estate at a favorable price," he said.
The harder a market has been hit, say economists, the higher the percentage of cash deals. Last summer, piano teacher Virginia Hall-Busch told a real-estate agent she met through the Rotary Club to keep her posted on deals on historic houses in Stone Mountain, Ga.
A few days later, Ms. Hall-Busch, 62, got a call about a 1918 bungalow with three bedrooms and one bathroom listed for "short sale," which in the real-estate world means at a price lower than what's owed on it. The home had been on the market for $159,000, then dropped to $129,000 and then to $79,900.
"I offered them 50," she said. "I figured, it wasn't like I needed a place to live. I can afford to be a little cocky here."
Ms. Hall-Busch closed in October for $52,500 and began renovations within weeks.
"When you have a bad economy, it's hard on lots of people," she said. "But right now if you've got the money to put down on a house, long term it's going to be good thing."
Some of the cash purchases reflect a tight lending environment, where even people with good credit and ample down payments are sometimes turned away for conventional borrowing.
"The rates are great but the underwriting is brutal," said Henry Schlangen, an agent with real-estate firm Pacific Union International who buys and sells for clients, mainly in Napa Valley, Calif.
"They hang these people upside down and shake them till they see what falls out of their pockets. So people are buying with cash and maybe they'll 'refi' later."
Mr. Schlangen, who deals in higher-end properties such as vineyard estates, estimated that 95% of his deals last year were all-cash, up from about half in previous years. "The deals that are consummating, these are buyers who feel they got a great deal," he said, noting a surge of buyers from China.
Cash buyers can often command 5% to 10% more off the asking price than a potential buyer using a mortgage, said Mohammed Siddiq, a real-estate professional in Fort Lauderdale, Fla. Sellers prefer cash deals since they close more quickly and avoid risks such as a buyer's job loss or a bank's changing its mind.
And while many buyers making low-ball offers dig their heels, Mr. Siddiq said he has started to see bidding wars and slightly increasing prices.
Nationally, it isn't clear whether prices have bottomed. The Case-Shiller index of housing prices in 20 cities showed a steep decline in prices until 2009, when they appeared to bottom and began to trend upward. But in the second half of last year, prices began falling again. A Zillow index, meanwhile, never noted the uptick.
Since mid-October, Canyon Ranch in Miami Beach, the development Mr. Stoker bought into, has sold 35 units, with a third of the buyers from overseas and many others retiring from the Northeast.
The Stokers have a home in Potomac, Md., but spend most of the year in Florida. Mr. Stoker doesn't plan to rent out any of his new properties, saying he and his wife will live in one with two dogs, his son might live in another and the third will house an older dog and guests.
Source: http://online.wsj.com/article/SB10001424052748704570104576124502975117950.html#articleTabs%3Darticle
Tuesday, February 1, 2011
Metro-Miami's Pending Home Sales Rise 28% Year-over-year
(MIAMI, FL ) -- According to the Miami Association of Realtors and the Southeast Florida Multiple Listing Service (SEFMLS), total cumulative pending home sales - including single-family homes and condominiums - in Miami-Dade County increased 28 percent in January compared to a year earlier, from 8,388 to 10,698, and 2.5 percent, from 10,437, compared to the previous month.
"Over the last few months, we have seen pending and closed sales gain momentum while inventory levels continue to drop, said Jack H. Levine, 2010 chairman of the board of the Miami Association of Realtors. "This trend in rising sales, particularly for condominiums, coupled with significant reductions in housing inventory, is a very positive sign for the local market. We expect this trend to continue as the job market, economy, and consumer confidence improve."
Pending Condominium Contract Activity on the Rise
Pending sales of condominiums in Miami-Dade County continue to outperform that of single-family homes. In January, condominium pending sales increased a significant 37.2 percent compared to a year ago, from 4,647 to 6,376 and increased 3.3 percent from 6,173 the previous month. Pending sales of single-family homes in January increased 15.531 percent from the previous year, from 3,741 to 4,322, and 1.4 percent from the previous month, when pending single-family home sales totaled 4,264.
Significant Reduction in Housing Inventory
The Miami-Dade real estate market continues to experience drops in housing inventory. Inventory for all housing types has dropped 47 percent since mid-2008 and eight percent compared to a year ago. Just over the last month, inventory in the county dropped six percent, pointing to increased demand for local properties.
"Local buyers are taking advantage of the many opportunities the local market offers, including high affordability that continues to boost contract activity," said 2011 Miami Association of Realtors Residential President Ralph E. De Martino. "International buyers continue to continue to have a significant impact in rising sales and declining inventory in the local market."
Increased pending sales are an indication of increased future sales. A sale is listed as pending when a contract is signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
Source: http://www.realestatechannel.com/us-markets/residential-real-estate-1/miami-pending-home-sales-dade-county-home-sales-miami-association-of-realtors-southeast-florida-multiple-listing-service-sefmls-miami-condo-foreclosures-3826.php
Posted by Michael Gerrity
"Over the last few months, we have seen pending and closed sales gain momentum while inventory levels continue to drop, said Jack H. Levine, 2010 chairman of the board of the Miami Association of Realtors. "This trend in rising sales, particularly for condominiums, coupled with significant reductions in housing inventory, is a very positive sign for the local market. We expect this trend to continue as the job market, economy, and consumer confidence improve."
Pending Condominium Contract Activity on the Rise
Pending sales of condominiums in Miami-Dade County continue to outperform that of single-family homes. In January, condominium pending sales increased a significant 37.2 percent compared to a year ago, from 4,647 to 6,376 and increased 3.3 percent from 6,173 the previous month. Pending sales of single-family homes in January increased 15.531 percent from the previous year, from 3,741 to 4,322, and 1.4 percent from the previous month, when pending single-family home sales totaled 4,264.
Significant Reduction in Housing Inventory
The Miami-Dade real estate market continues to experience drops in housing inventory. Inventory for all housing types has dropped 47 percent since mid-2008 and eight percent compared to a year ago. Just over the last month, inventory in the county dropped six percent, pointing to increased demand for local properties.
"Local buyers are taking advantage of the many opportunities the local market offers, including high affordability that continues to boost contract activity," said 2011 Miami Association of Realtors Residential President Ralph E. De Martino. "International buyers continue to continue to have a significant impact in rising sales and declining inventory in the local market."
Increased pending sales are an indication of increased future sales. A sale is listed as pending when a contract is signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
Source: http://www.realestatechannel.com/us-markets/residential-real-estate-1/miami-pending-home-sales-dade-county-home-sales-miami-association-of-realtors-southeast-florida-multiple-listing-service-sefmls-miami-condo-foreclosures-3826.php
Posted by Michael Gerrity
Tuesday, January 25, 2011
Trulia: It’s cheaper to buy than rent in Miami
Miami tops the list of places in the country where it’s cheaper to own than rent a home, according to Trulia.com’s latest Rent vs. Buy Index.
The San Francisco-based real estate website noted that the foreclosure crisis has pushed many homeowners to become renters, thus jacking up the cost of rentals.
“Following the principles of supply and demand, renting has become relatively more expensive than buying in most markets,” Trulia CEO and co-founder Pete Flint said in a news release.
In fact, Trulia found that it is more affordable to buy than rent a two-bedroom home in 72 percent of America’s 50 largest cities.
Trulia said it calculates the price-to-rent ratio for the 50 largest U.S. cities using the median list price compared with the median rent price on two-bedroom apartments, condos and townhomes listed on its website.
The median sales price for homes in Miami was $185,000. The average list price for homes for sale in Miami on Trulia is $402,603. The median sales price decreased 38.3 percent compared to the prior year based on 4,142 sales, which is up 20.1 percent compared to the prior year.
Other cities where it’s cheaper to buy than rent are:
Las Vegas
Arlington, Texas
Mesa, Ariz.
Phoenix
Jacksonville
Sacramento, Calif.
San Antonio
Fresno, Calif.
El Paso, Texas
On the flip side, Trulia found that renting is only less expensive than buying in four cities: New York, Seattle, Kansas City and San Francisco.
Source: http://www.bizjournals.com/southflorida/news/2011/01/25/trulia-its-cheaper-to-buy-than-rent.html
The San Francisco-based real estate website noted that the foreclosure crisis has pushed many homeowners to become renters, thus jacking up the cost of rentals.
“Following the principles of supply and demand, renting has become relatively more expensive than buying in most markets,” Trulia CEO and co-founder Pete Flint said in a news release.
In fact, Trulia found that it is more affordable to buy than rent a two-bedroom home in 72 percent of America’s 50 largest cities.
Trulia said it calculates the price-to-rent ratio for the 50 largest U.S. cities using the median list price compared with the median rent price on two-bedroom apartments, condos and townhomes listed on its website.
The median sales price for homes in Miami was $185,000. The average list price for homes for sale in Miami on Trulia is $402,603. The median sales price decreased 38.3 percent compared to the prior year based on 4,142 sales, which is up 20.1 percent compared to the prior year.
Other cities where it’s cheaper to buy than rent are:
Las Vegas
Arlington, Texas
Mesa, Ariz.
Phoenix
Jacksonville
Sacramento, Calif.
San Antonio
Fresno, Calif.
El Paso, Texas
On the flip side, Trulia found that renting is only less expensive than buying in four cities: New York, Seattle, Kansas City and San Francisco.
Source: http://www.bizjournals.com/southflorida/news/2011/01/25/trulia-its-cheaper-to-buy-than-rent.html
Thursday, December 16, 2010
Foreigners flock to Florida for real estate bargains
MIAMI -- Foreign tourists who for years have crowded Florida’s shopping malls to buy clothes and electronics, are now flocking to real estate offices to snatch up apartments and homes at bargain-basement prices.
The investors, mainly from Europe and Latin America, are jostling over apartments in Miami’s trendy South Beach neighborhood selling for $70,000-$100,000, and in less exclusive areas to the north where they start at around $50,000.
“The buying opportunities are maybe the best ever. Who knows if we’ll see prices again like today’s in Miami Beach,” Keys Real Estate agent Michelle Iglesias told AFP.
Property prices in Miami have fallen by almost half (47%) since the real estate bubble peaked in 2006, according to Standard & Poor’s Case-Shiller 20-City Home Price index.
Analysts predict that real estate market prices will not increase until the banks get rid of all their foreclosed properties and there are more jobs in the region.
“Unemployment is still high. People are afraid of losing their homes and credit is hard to get,” said Standard & Poor’s vice-president Maureen Maitland.
In and around Miami, banks each month repossess about 5,000 properties, including apartments and commercial real estate, for delinquent mortgage payments, according to real estate brokerage Codovultures Realty, which has 250,000 such properties on its books across southern Florida.
But foreign investors have kept prices from plunging even further, the Miami Association of Realtors said in its November report. “The international buyers continue to fuel market strengthening, we continue to observe positive signs,” said association president Oliver Ruiz.
Beatriz Lamanda from Venezuela bought two apartments north of Miami Beach for a reduced price of $80,000.
“I’d rather put my money in real estate than leave it in the bank. In a few years I’ll make a nice bundle because the prices are going to go up, no question,” she told AFP.
In the “Icon,” a three-building apartment complex by French designer Philippe Stark in Brickell, Miami’s newest financial district, apartments are selling for $250,000, down from $370,000 two years ago.
“We’ve sold 350 units in the last few months. Most of the buyers are international,” Fortune International’s Alejandra Castillo told AFP. -- AFP
Source: http://www.bworldonline.com/main/content.php?id=22914
The investors, mainly from Europe and Latin America, are jostling over apartments in Miami’s trendy South Beach neighborhood selling for $70,000-$100,000, and in less exclusive areas to the north where they start at around $50,000.
“The buying opportunities are maybe the best ever. Who knows if we’ll see prices again like today’s in Miami Beach,” Keys Real Estate agent Michelle Iglesias told AFP.
Property prices in Miami have fallen by almost half (47%) since the real estate bubble peaked in 2006, according to Standard & Poor’s Case-Shiller 20-City Home Price index.
Analysts predict that real estate market prices will not increase until the banks get rid of all their foreclosed properties and there are more jobs in the region.
“Unemployment is still high. People are afraid of losing their homes and credit is hard to get,” said Standard & Poor’s vice-president Maureen Maitland.
In and around Miami, banks each month repossess about 5,000 properties, including apartments and commercial real estate, for delinquent mortgage payments, according to real estate brokerage Codovultures Realty, which has 250,000 such properties on its books across southern Florida.
But foreign investors have kept prices from plunging even further, the Miami Association of Realtors said in its November report. “The international buyers continue to fuel market strengthening, we continue to observe positive signs,” said association president Oliver Ruiz.
Beatriz Lamanda from Venezuela bought two apartments north of Miami Beach for a reduced price of $80,000.
“I’d rather put my money in real estate than leave it in the bank. In a few years I’ll make a nice bundle because the prices are going to go up, no question,” she told AFP.
In the “Icon,” a three-building apartment complex by French designer Philippe Stark in Brickell, Miami’s newest financial district, apartments are selling for $250,000, down from $370,000 two years ago.
“We’ve sold 350 units in the last few months. Most of the buyers are international,” Fortune International’s Alejandra Castillo told AFP. -- AFP
Source: http://www.bworldonline.com/main/content.php?id=22914
Wednesday, December 15, 2010
3 hotels sold in South Beach
A trio of historic buildings in Miami Beach has been purchased by South American real estate and hotel group Lennox Miami Corp.
The $14.7 million sale included the 62-room Peter Miller Hotel at 1900 Collins Ave.; the 12-unit Miller Apartments at 229 19th St. and the 12-unit Peter Miller Apartments at 1915 Liberty Ave.
All of the buildings were designed in the 1930s by architect Russell Pancoast.
The seller was Kabo Realty Corp., based in Miami. M1 Hospitality Group, a division of real estate brokerage and investment firm Metro 1 Properties in Miami, represented both parties.
Plans for the properties have not been announced, but the broker said the new owners could potentially add more rooms as well as a pool and spa to the hotel.
-- HANNAH SAMPSON
• Ex-UBS banker enters plea: A former banker at Switzerland's UBS pleaded not guilty Tuesday in Miami to a tax fraud conspiracy charge that accuses him of helping a wealthy U.S. client hide assets from the Internal Revenue Service.
Renzo Gadola, 44, entered his plea at a brief hearing after court documents were unsealed charging him with the crime.
The documents claim Gadola and an unnamed second Swiss banker helped an unidentified Mississippi man hide an account at UBS and open another secret account at a second Swiss bank.
Prosecutors say he and the other banker tried to prevent the client from disclosing his secret accounts to the IRS. During a November meeting at a Miami hotel, according to court documents, Gadola told the client the likelihood that his new accounts would be discovered was ``practically zero percent.''
• Sheraton hangs shingle: A former Wyndham hotel will open under a new brand Wednesday: Sheraton Miami Airport Hotel & Executive Meeting Center.
The first Sheraton in Miami-Dade, the hotel at 3900 NW 21st St. has undergone $2 million in upgrades over the last four months in preparation for the change. The hotel, with 405 guest rooms and a 20,000-square-foot meeting center, is owned by Maryland-based Thayer Lodging Group.
Sheraton adds the Miami hotel as part of an expansion that will bring 50 new hotels to the brand's portfolio over the next three years.
• Mandarin Oriental shines in guide: Just one spa in Florida received the top rating from Forbes Travel Guide -- and it's in Miami.
The Spa at Mandarin Oriental, Miami was one of only 20 spas worldwide to receive five stars from the guide, formerly Mobil Travel Guide. This was the third year in a row that The Spa received the award.
Forbes Travel Guide rates hotels, restaurants and spas throughout the U.S., Canada, Beijing, Hong Kong and Macau. This year, 54 hotels, 23 restaurants and 20 spas received five stars.
Only three Florida hotels received the five-star award: Four Seasons Resort Palm Beach, The Ritz-Carlton, Palm Beach and The Ritz-Carlton, Naples
Source: http://www.miamiherald.com/2010/12/15/1973903/3-hotels-sold-in-south-beach.html
The $14.7 million sale included the 62-room Peter Miller Hotel at 1900 Collins Ave.; the 12-unit Miller Apartments at 229 19th St. and the 12-unit Peter Miller Apartments at 1915 Liberty Ave.
All of the buildings were designed in the 1930s by architect Russell Pancoast.
The seller was Kabo Realty Corp., based in Miami. M1 Hospitality Group, a division of real estate brokerage and investment firm Metro 1 Properties in Miami, represented both parties.
Plans for the properties have not been announced, but the broker said the new owners could potentially add more rooms as well as a pool and spa to the hotel.
-- HANNAH SAMPSON
• Ex-UBS banker enters plea: A former banker at Switzerland's UBS pleaded not guilty Tuesday in Miami to a tax fraud conspiracy charge that accuses him of helping a wealthy U.S. client hide assets from the Internal Revenue Service.
Renzo Gadola, 44, entered his plea at a brief hearing after court documents were unsealed charging him with the crime.
The documents claim Gadola and an unnamed second Swiss banker helped an unidentified Mississippi man hide an account at UBS and open another secret account at a second Swiss bank.
Prosecutors say he and the other banker tried to prevent the client from disclosing his secret accounts to the IRS. During a November meeting at a Miami hotel, according to court documents, Gadola told the client the likelihood that his new accounts would be discovered was ``practically zero percent.''
• Sheraton hangs shingle: A former Wyndham hotel will open under a new brand Wednesday: Sheraton Miami Airport Hotel & Executive Meeting Center.
The first Sheraton in Miami-Dade, the hotel at 3900 NW 21st St. has undergone $2 million in upgrades over the last four months in preparation for the change. The hotel, with 405 guest rooms and a 20,000-square-foot meeting center, is owned by Maryland-based Thayer Lodging Group.
Sheraton adds the Miami hotel as part of an expansion that will bring 50 new hotels to the brand's portfolio over the next three years.
• Mandarin Oriental shines in guide: Just one spa in Florida received the top rating from Forbes Travel Guide -- and it's in Miami.
The Spa at Mandarin Oriental, Miami was one of only 20 spas worldwide to receive five stars from the guide, formerly Mobil Travel Guide. This was the third year in a row that The Spa received the award.
Forbes Travel Guide rates hotels, restaurants and spas throughout the U.S., Canada, Beijing, Hong Kong and Macau. This year, 54 hotels, 23 restaurants and 20 spas received five stars.
Only three Florida hotels received the five-star award: Four Seasons Resort Palm Beach, The Ritz-Carlton, Palm Beach and The Ritz-Carlton, Naples
Source: http://www.miamiherald.com/2010/12/15/1973903/3-hotels-sold-in-south-beach.html
Friday, December 10, 2010
Documentations For Purchasing Miami Real Estate Buildings
After the long period of waiting, when you finally get to accumulate the funds to afford a Property, you start looking for prospective homes. After some days of consideration, you produce up your mind to purchase a specific Home. Regardless of the fact that that you are experienced or not, the mile long list of essentials for Buying a Property will surely bewilder you. Property sellers, bucks lenders and Miami Real Estate agents have every Correct to stipulate for relevant documents so that they might rightly evaluate your ability to pay them back. When you fail to submit even one of these documents, your preferrred Dwelling will stay a ideal forever. to prevent such a situation, you should be mindful beforehand, of the essentials, so which you may instantly produce them when needed.
Listed here are some of the documents You’ll need before closing the Miami Real Estate deal. The first records you need to show are of income tax, IRS W-2 form, asset statement and other fiscal documents. The lending institute or entity will desire a promissory note to be able to pull out your credit record. If they feel that you might be financially instable, then you might face potential difficulty in sanctioning the loan. Next, you have to show your bank statement, which will establish your ability to pay off the mortgage.
An insurance policy is also very necessary. Your lender will request for this as an assurance, in case of events of damage or deficit of Asset. This guarantees escape from the risk of losing the dollars they lent you. Preparing your payment stubs is an additional compulsory point. this could reflect the payment you receive per payday and your status as a full time employee. If, you have a spouse’s stub to add to, You’ll stand a much better chance to connect up the requirements of the lending company. Apart from a cashier’s check, you should prepare one of your own. Ensure that your Miami Real Estate lawyer or agent updates you about it.
The last, but not the least is your identification card. Carry two such cars along with your a career forms. The HR team of the company you work for will fill it up and authenticate it for you. Before you buy the Property, you can also ask your Miami Real Estate agent to assist you Through.
To purchase Miami Real Estate homes at Excellent price, contact us. Our agents will instruct you Through all the formalities. In case you are searching for Miami Realtors in your location please take a look at our web site today by simply clicking the link.
Source: http://www.favstocks.com/documentations-for-purchasing-miami-real-estate-buildings/0329173/
By Chandler Man
Listed here are some of the documents You’ll need before closing the Miami Real Estate deal. The first records you need to show are of income tax, IRS W-2 form, asset statement and other fiscal documents. The lending institute or entity will desire a promissory note to be able to pull out your credit record. If they feel that you might be financially instable, then you might face potential difficulty in sanctioning the loan. Next, you have to show your bank statement, which will establish your ability to pay off the mortgage.
An insurance policy is also very necessary. Your lender will request for this as an assurance, in case of events of damage or deficit of Asset. This guarantees escape from the risk of losing the dollars they lent you. Preparing your payment stubs is an additional compulsory point. this could reflect the payment you receive per payday and your status as a full time employee. If, you have a spouse’s stub to add to, You’ll stand a much better chance to connect up the requirements of the lending company. Apart from a cashier’s check, you should prepare one of your own. Ensure that your Miami Real Estate lawyer or agent updates you about it.
The last, but not the least is your identification card. Carry two such cars along with your a career forms. The HR team of the company you work for will fill it up and authenticate it for you. Before you buy the Property, you can also ask your Miami Real Estate agent to assist you Through.
To purchase Miami Real Estate homes at Excellent price, contact us. Our agents will instruct you Through all the formalities. In case you are searching for Miami Realtors in your location please take a look at our web site today by simply clicking the link.
Source: http://www.favstocks.com/documentations-for-purchasing-miami-real-estate-buildings/0329173/
By Chandler Man
Thursday, December 9, 2010
Selling A Miami Real Estate Asset: Behind The Scenes
Selling a Miami Real Estate Asset is no mean feat as there is loads of work which needs to be performed in order to produce it a good results. What goes on behind the scenes before the actual selling process is what matters most. Unlike Buying a Property, selling is a very much more difficult job as their needs to be a lot of deliberation and Organizing before one could actually be confident about selling a Property. usually estate sellers employ experienced agents to represent their Property and its advertising campaigns along with all the Dwelling showings. These agents specialize themselves as Asset sellers and are pretty adept at their job.
With the Miami Real Estate market being so saturated, were you can effortlessly locate several Units at the exact rate, one needs to keep his/her Asset in pristine situation to stand a chance of selling it. For which, you need to have to renovate your estate in way which it looks and feels Brand new. This includes all key and insignificant repairs along with the expected cosmetic changes. Most consumers just really don’t look at Property prices; in fact the condition of the estate is what matters most to them. Although preparing the estate to an immaculate condition does involve a lot of Expenditures, but its well worth the gamble.
When selling a Property be it Brand new or old, what purchasers observe at first is the predicament of the landscape just outside your estate. In case the surroundings are messed up then this might easily act against you and sway off Asset buyers. Small little things like maintanence the gutters, preserving the garden, care the pool etc will present a cleaner look besides attracting consumers towards your Miami Real Estate.
Most Miami Real Estate buyers tend to be emotional whilst making their decision. Knowing the preferences and tastes of the buyer can support you sell the Property quite simply. This is where a quality agent may help you out. Deliberating the likes and dislikes of the buyer demands the agent to perform a little bit of study before he/she could prepare the estate accordingly. Although selling an estate is never straightforward, with the Appropriate agent on hand you could readily sell your Asset and times even double up on your earnings margins.
searching for a Miami Real Estate Asset in a posh location, to open a store or organization outlet, then, communication us. The premises we sell are in appropriate locations to fit the purpose.
Source: http://www.favstocks.com/selling-a-miami-real-estate-asset-behind-the-scenes/0529238/
By Chandler Man
With the Miami Real Estate market being so saturated, were you can effortlessly locate several Units at the exact rate, one needs to keep his/her Asset in pristine situation to stand a chance of selling it. For which, you need to have to renovate your estate in way which it looks and feels Brand new. This includes all key and insignificant repairs along with the expected cosmetic changes. Most consumers just really don’t look at Property prices; in fact the condition of the estate is what matters most to them. Although preparing the estate to an immaculate condition does involve a lot of Expenditures, but its well worth the gamble.
When selling a Property be it Brand new or old, what purchasers observe at first is the predicament of the landscape just outside your estate. In case the surroundings are messed up then this might easily act against you and sway off Asset buyers. Small little things like maintanence the gutters, preserving the garden, care the pool etc will present a cleaner look besides attracting consumers towards your Miami Real Estate.
Most Miami Real Estate buyers tend to be emotional whilst making their decision. Knowing the preferences and tastes of the buyer can support you sell the Property quite simply. This is where a quality agent may help you out. Deliberating the likes and dislikes of the buyer demands the agent to perform a little bit of study before he/she could prepare the estate accordingly. Although selling an estate is never straightforward, with the Appropriate agent on hand you could readily sell your Asset and times even double up on your earnings margins.
searching for a Miami Real Estate Asset in a posh location, to open a store or organization outlet, then, communication us. The premises we sell are in appropriate locations to fit the purpose.
Source: http://www.favstocks.com/selling-a-miami-real-estate-asset-behind-the-scenes/0529238/
By Chandler Man
Friday, December 3, 2010
Miami Pending Home Sales Up 26% in November
Miami, FL - Total cumulative pending home sales - including single-family homes and condominiums - in Miami-Dade County increased 26 percent in November compared to a year earlier, from 8,288 to 10,495, and increased 2.3 percent, up from 10,264, compared to the previous month according to the MIAMI Association of REALTORS and the Southeast Florida Multiple Listing Service (SEFMLS).
November marks the fourth consecutive month of increased pending home sales in Miami-Dade County. A sale is listed as pending when a contract is signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. "As an indication of future sales, consistently increasing pending sales is a very positive sign for the South Florida real estate market," said Jack H. Levine, 2010 chairman of the board of the MIAMI Association of REALTORS.
Pending sales of condominiums in Miami-Dade County continue to perform stronger than that of single-family homes. In November, condominium pending sales increased 38 percent compared to the previous year, from 4,414 to 6,094 and increased 3.68 percent, up from 5,878 the previous month.
Pending sales of single-family homes in November increased 14 percent from the previous year, from 3,874 to 4,401, and increased .34 percent from the previous month, when pending single-family home sales totaled 4,386. "The current strengthening Miami real estate market is motivating all types of buyers to act now," said Oliver Ruiz, 2010 residential president of the MIAMI Association of REALTORS.
Source: http://www.thestreet.com/story/10937134/1/miami-pending-home-sales-up-26-in-november.html
By DQNews.com 12/02/10 - 12:12 PM EST
November marks the fourth consecutive month of increased pending home sales in Miami-Dade County. A sale is listed as pending when a contract is signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. "As an indication of future sales, consistently increasing pending sales is a very positive sign for the South Florida real estate market," said Jack H. Levine, 2010 chairman of the board of the MIAMI Association of REALTORS.
Pending sales of condominiums in Miami-Dade County continue to perform stronger than that of single-family homes. In November, condominium pending sales increased 38 percent compared to the previous year, from 4,414 to 6,094 and increased 3.68 percent, up from 5,878 the previous month.
Pending sales of single-family homes in November increased 14 percent from the previous year, from 3,874 to 4,401, and increased .34 percent from the previous month, when pending single-family home sales totaled 4,386. "The current strengthening Miami real estate market is motivating all types of buyers to act now," said Oliver Ruiz, 2010 residential president of the MIAMI Association of REALTORS.
Source: http://www.thestreet.com/story/10937134/1/miami-pending-home-sales-up-26-in-november.html
By DQNews.com 12/02/10 - 12:12 PM EST
Thursday, December 2, 2010
Art of the deal
New Yorkers who regularly visit Miami often talk about how hard it is to get any work done there — how the city's lazy, beautiful people just bounce around to beaches, restaurants, hotel lounges, nightclubs, house parties and boat parties.
But the reality is more complicated. There’s no other American city that works this hard at partying and is full of so many people hustling for business while they’re partying. And this is especially true when it comes to selling real estate during the Miami social season, which kicks off with a big splash this week as Art Basel and dozens of satellite events take over South Beach and beyond.
Miami is always a place where out-of-towners can show up to a random apartment party, mention that they might want to buy a vacation home and find themselves talking to a broker and a salesperson of furniture packages while they’re still drinking their first glass of champagne. And with thousands of New Yorkers and rich foreigners in Miami for Art Basel, developers and brokers all over the city know that this week is an especially good time for marketing their real estate.
“Out of all the different festivals in Miami, Art Basel is the one that brings in the kind of demographic that is really prime for our properties,” says local broker Mark Zilbert, who specializes in luxury condos. “We’re working seven days a week. And people come into town with no intentions of buying, but they get caught up in the moment.”
In October, we visited the site of 3 Indian Creek, a new, listed-for-$60-million house that’s part of a private, extremely exclusive 300-acre community whose homeowners include Carl Icahn, Julio Iglesias and Art Basel chairperson Norman Braman. Designer and co-owner Felix Cohen greeted us wearing frayed jeans and a white shirt with paint stains. He offered a quick tour of the 30,000-square-foot mansion while contractors were hard at work all around us.
There was no time to waste, Cohen said, because he had a serious deadline. The house, which had already been visited by potential buyers, among them Alex Rodriguez, had to be ready for Art Basel week. Cohen admitted that he was “nervous” about the timing, but 3 Indian Creek (which is being marketed in New York by Prudential Douglas Elliman’s Oren Alexander) was indeed unveiled with a party on Tuesday.
That was the same evening the W South Beach Hotel & Residences held the official Art Basel opening party. The W, like many Miami spots, is hosting events all week and hoping that some art collectors also turn into homebuyers.
Other highlights of the week include:
The Icon Brickell condo building downtown has a Scope Art Show film premiere on Friday and just unveiled its new iPhone/iPad app, which offers neighborhood information, floor plans and event locations. In addition, the Fortune International brokerage is having open houses at Icon Brickell and Jade Ocean in Sunny Isles Beach, where brokers and potential buyers can pick up “VIP Basel” bags with passes to various art events.
The $2.3 billion Midtown Miami mixed-use project is hosting several fairs, including Art Miami, Red Dot Fair, Scope and Art Asia, and offering an exhibit from London artist Willard Wigan, who creates ultra-tiny sculptures that can only be seen through a microscope.
The new JW Marriott Marquis, part of the billion-dollar Metropolitan Miami mixed-use project downtown, has partnered with Christie’s on an exhibit with pieces by Andy Warhol, Damien Hirst, Keith Haring, Eduardo Chillida and others.
The tony Golden Beach community (where Ricky Martin has put his mansion on the market and where Basel-participating artist Bruce Weber lives) is offering tours with Mayor Glenn Singer to show off the town’s $30 million renovation.
In Wynwood, an emerging area near the Design District, the Bakehouse Art Complex is offering a tour of local studios while also showcasing its two galleries (the Audrey Love Gallery has an exhibit inspired by the seven deadly sins, while the Swenson Gallery is selling budget-friendly $100 5-by-7-inch pieces) and 33,000 square feet of exhibition space
But the reality is more complicated. There’s no other American city that works this hard at partying and is full of so many people hustling for business while they’re partying. And this is especially true when it comes to selling real estate during the Miami social season, which kicks off with a big splash this week as Art Basel and dozens of satellite events take over South Beach and beyond.
Miami is always a place where out-of-towners can show up to a random apartment party, mention that they might want to buy a vacation home and find themselves talking to a broker and a salesperson of furniture packages while they’re still drinking their first glass of champagne. And with thousands of New Yorkers and rich foreigners in Miami for Art Basel, developers and brokers all over the city know that this week is an especially good time for marketing their real estate.
“Out of all the different festivals in Miami, Art Basel is the one that brings in the kind of demographic that is really prime for our properties,” says local broker Mark Zilbert, who specializes in luxury condos. “We’re working seven days a week. And people come into town with no intentions of buying, but they get caught up in the moment.”
In October, we visited the site of 3 Indian Creek, a new, listed-for-$60-million house that’s part of a private, extremely exclusive 300-acre community whose homeowners include Carl Icahn, Julio Iglesias and Art Basel chairperson Norman Braman. Designer and co-owner Felix Cohen greeted us wearing frayed jeans and a white shirt with paint stains. He offered a quick tour of the 30,000-square-foot mansion while contractors were hard at work all around us.
There was no time to waste, Cohen said, because he had a serious deadline. The house, which had already been visited by potential buyers, among them Alex Rodriguez, had to be ready for Art Basel week. Cohen admitted that he was “nervous” about the timing, but 3 Indian Creek (which is being marketed in New York by Prudential Douglas Elliman’s Oren Alexander) was indeed unveiled with a party on Tuesday.
That was the same evening the W South Beach Hotel & Residences held the official Art Basel opening party. The W, like many Miami spots, is hosting events all week and hoping that some art collectors also turn into homebuyers.
Other highlights of the week include:
The Icon Brickell condo building downtown has a Scope Art Show film premiere on Friday and just unveiled its new iPhone/iPad app, which offers neighborhood information, floor plans and event locations. In addition, the Fortune International brokerage is having open houses at Icon Brickell and Jade Ocean in Sunny Isles Beach, where brokers and potential buyers can pick up “VIP Basel” bags with passes to various art events.
The $2.3 billion Midtown Miami mixed-use project is hosting several fairs, including Art Miami, Red Dot Fair, Scope and Art Asia, and offering an exhibit from London artist Willard Wigan, who creates ultra-tiny sculptures that can only be seen through a microscope.
The new JW Marriott Marquis, part of the billion-dollar Metropolitan Miami mixed-use project downtown, has partnered with Christie’s on an exhibit with pieces by Andy Warhol, Damien Hirst, Keith Haring, Eduardo Chillida and others.
The tony Golden Beach community (where Ricky Martin has put his mansion on the market and where Basel-participating artist Bruce Weber lives) is offering tours with Mayor Glenn Singer to show off the town’s $30 million renovation.
In Wynwood, an emerging area near the Design District, the Bakehouse Art Complex is offering a tour of local studios while also showcasing its two galleries (the Audrey Love Gallery has an exhibit inspired by the seven deadly sins, while the Swenson Gallery is selling budget-friendly $100 5-by-7-inch pieces) and 33,000 square feet of exhibition space
Wednesday, December 1, 2010
Visa deal funding realty, investors get homeland
At a time international investors are drawn to Miami's real estate bargains, the government's EB-5 visa program is an attractive vehicle for them to invest here in exchange for US residency.
Exclusive Visas, an EB-5 consulting firm based in Weston, is advising developers of several projects that would boost the local economy and create jobs while offering participating investors permanent residency for them and their families.
These projects include the University of Miami's Life Science and Technology Park, rising in Miami's health district, and the planned construction of 50 Sonic fast-food restaurants throughout Miami-Dade and Broward counties.
Fred Burgess, president of Exclusive Visas, has been a practicing attorney for 20 years and got involved in the EB-5 program in 2007.
His firm advises clients on how to apply for a regional center and demonstrate the creation of a certain number of jobs to get the federal government to approve the projects.
The EB-5 visa program was created by the government to provide employment-based visas. The government basically requires a foreign national to invest $500,000 to $1 million into a venture that would create 10 sustainable jobs and in exchange, receive a green card.
If the project is in a geographic area of high unemployment, the investor is only required to put in $500,000.
Basically, Mr. Burgess said, "we need to make sure their funds come from credible sources and that they don't have a criminal background."
One project Mr. Burgess has been working on is UM's Life Science and Technology Park.
Under the EB-5 program, developer Wexford Miami is raising $20 million capital from 40 participating investors.
"They are close to selling off," he said. "That EB-5 project will be filled by the end of this year."
He is also advising Miami-based QueensFort Capital Corp., which bought exclusive development rights to build 50 Sonic restaurants in Miami-Dade and Broward in the next four years.
The development firm is acquiring the land where it plans to build the restaurants at discounted prices, which benefits the investors involved. It is seeking six to eight investors per package of two to four restaurants.
Carolina Oliva, QueensFort Capital's senior vice president, said right now most interest in the Sonic project is coming from China, Latin America — particularly Venezuela and Mexico — and the Middle East.
Mr. Burgess and his team travel globally with clients to market their projects, making frequent trips to countries such as China, Korea and Venezuela.
"We travel throughout the world regularly, so we know what the market is looking for and we can advise companies raising capital how to structure their project so it's attractive to the investor," he explained.
Some internationals are drawn to invest in these ventures because they want to come to the US for social, political and even climate reasons.
"We have a big push from Mexico and Venezuela for safety and political reasons," respectively, he said.
More than half of EB-5 visas come from China and Korea, Mr. Burgess noted, adding that when the program first took off it became popular in the United Kingdom.
Although this government-backed visa program has been in place since the 1990s, he said, it got little use until the regional center model was added in 2003.
But the model kept sunsetting every six months, until in October 2009 President Obama extended it three years with a push to make it permanent.
Today, he said, more than 120 projects nationwide are participating under the regional center model.
Source: http://www.miamitodaynews.com/news/101202/story4.shtml
By Yudislaidy Fernandez
Exclusive Visas, an EB-5 consulting firm based in Weston, is advising developers of several projects that would boost the local economy and create jobs while offering participating investors permanent residency for them and their families.
These projects include the University of Miami's Life Science and Technology Park, rising in Miami's health district, and the planned construction of 50 Sonic fast-food restaurants throughout Miami-Dade and Broward counties.
Fred Burgess, president of Exclusive Visas, has been a practicing attorney for 20 years and got involved in the EB-5 program in 2007.
His firm advises clients on how to apply for a regional center and demonstrate the creation of a certain number of jobs to get the federal government to approve the projects.
The EB-5 visa program was created by the government to provide employment-based visas. The government basically requires a foreign national to invest $500,000 to $1 million into a venture that would create 10 sustainable jobs and in exchange, receive a green card.
If the project is in a geographic area of high unemployment, the investor is only required to put in $500,000.
Basically, Mr. Burgess said, "we need to make sure their funds come from credible sources and that they don't have a criminal background."
One project Mr. Burgess has been working on is UM's Life Science and Technology Park.
Under the EB-5 program, developer Wexford Miami is raising $20 million capital from 40 participating investors.
"They are close to selling off," he said. "That EB-5 project will be filled by the end of this year."
He is also advising Miami-based QueensFort Capital Corp., which bought exclusive development rights to build 50 Sonic restaurants in Miami-Dade and Broward in the next four years.
The development firm is acquiring the land where it plans to build the restaurants at discounted prices, which benefits the investors involved. It is seeking six to eight investors per package of two to four restaurants.
Carolina Oliva, QueensFort Capital's senior vice president, said right now most interest in the Sonic project is coming from China, Latin America — particularly Venezuela and Mexico — and the Middle East.
Mr. Burgess and his team travel globally with clients to market their projects, making frequent trips to countries such as China, Korea and Venezuela.
"We travel throughout the world regularly, so we know what the market is looking for and we can advise companies raising capital how to structure their project so it's attractive to the investor," he explained.
Some internationals are drawn to invest in these ventures because they want to come to the US for social, political and even climate reasons.
"We have a big push from Mexico and Venezuela for safety and political reasons," respectively, he said.
More than half of EB-5 visas come from China and Korea, Mr. Burgess noted, adding that when the program first took off it became popular in the United Kingdom.
Although this government-backed visa program has been in place since the 1990s, he said, it got little use until the regional center model was added in 2003.
But the model kept sunsetting every six months, until in October 2009 President Obama extended it three years with a push to make it permanent.
Today, he said, more than 120 projects nationwide are participating under the regional center model.
Source: http://www.miamitodaynews.com/news/101202/story4.shtml
By Yudislaidy Fernandez
Wednesday, November 24, 2010
Homebuyers get creative to close the deal
MIAMI — — When Efrain Hernandez couldn't seal a deal before the first-time home buyer tax credit expired this year, he lost faith that he would ever own a house in this real estate climate.
But the enforced wait got him more than the $8,000 federal tax credit.
Hernandez negotiated a contract on a five-bedroom, three-bath home in a development near Homestead, Fla., talking homebuilder Lennar into $40,000 off the list price, getting it to pay $18,000 in closing costs and scoring a $7,500 no-interest loan from Miami-Dade County to lighten his down payment.
"I was finally able to buy the house of my dreams," Hernandez said.
Though cash is now king, new homeowners such as Hernandez are finding ways to buy homes — well-kept ones with current mortgages.
After a long drought, money is becoming available to buy homes. Take Wells Fargo Home Mortgage. Andre Brooks, vice president and regional sales manager for the bank's Florida operation, said his company has made more than $3 billion in mortgages this year in Florida, nearly 20 percent more than last year.
But lending guidelines remain restrictive, said Terry H. Francisco, spokesman with Bank of America, so making purchases often requires creativity and calculation.
Among the options:
FHA
Loans backed by the Federal Housing Administration can require a down payment of just 3.5 percent compared with 20 percent many banks typically require.
But there are limits. For one, like other loans with a down payment less than 20 percent, the buyer must get mortgage insurance.
FHA loans also have a maximum and are available only to people who don't have an FHA loan and plan to make the property their primary residence.
Private loan
Made by a noninstitutional investor who does not advertise as a mortgage lender, this requires networking and personal relationships.
Grant S. Stern, president of Morningside Mortgage Corp., brokered a loan this summer for a condo buyer.
The borrower had made a preconstruction down payment of $90,000 on a two-bedroom, two-bath $300,000 condo. He had another $65,000 cash to close, but Fannie Mae's approval for the project expired with the the developer on the verge of default. With no time to get a conventional bank loan, so Stern arranged for a real estate investor to fund a five-year, fixed-rate loan.
"They said, 'Close in one week.' We closed in one week," he said.
Non Distressed Properties
Part of real estate agent Gene Mastro's strategy for buyers is avoiding foreclosures and short sales — especially by buyers who intend to live in the home they buy.
Owners of nondistressed properties are "more ready to correct problems, any minor deficiencies," said Mastro, who works for Coldwell Banker.
And they may be willing to pay all or part of closing costs, which can range from 2 to 7 percent of the purchase price.
Short-term loan
Another way to cover closing costs is a fast, short-term loan that doesn't show up on credit reports.
Todd Hills noticed that some users of his company, Boomerang Lending, wanted fast cash to pay closing costs. His Colorado-based business works like a pawn shop for those with pricier assets, including paintings and fine jewelry. A recent borrower offered a 1955 Picasso sketch.
"It's not something we've experienced before the last six months," said Hills, company CEO, but "it makes absolutely perfect sense. This is a way this consumer can get the cash that they need."
Lease to own
"It's a purchase agreement with a very delayed closing — three months or three years," Manausa said.
Tom Nisbet and fiancee, Greta Leber, have just such a contract on their condo. They are living in the 1,600-square-foot unit they hope to buy. It comes with two parking spaces, a pool and a gym, and it's close to the University of Miami, where Leber is working on her Ph.D.
After watching others' experiences with short sales and foreclosures, they steered clear. "This is by far the best place we saw on the market," Nisbet said.
State and local aid
While the federal first-time home buyer's tax credit ended months ago, it's not too late for house hunters to get government home-buying help.
Many city or county governments offer their own home buyer subsidies.
Government agencies with home-buying assistance programs say they are fielding lots of calls.
Source: http://articles.chicagotribune.com/2010-11-23/classified/sc-bizspecial-1123-credative-homebuyi20101123_1_home-buyer-tax-credit-mortgages-condo-buyer
But the enforced wait got him more than the $8,000 federal tax credit.
Hernandez negotiated a contract on a five-bedroom, three-bath home in a development near Homestead, Fla., talking homebuilder Lennar into $40,000 off the list price, getting it to pay $18,000 in closing costs and scoring a $7,500 no-interest loan from Miami-Dade County to lighten his down payment.
"I was finally able to buy the house of my dreams," Hernandez said.
Though cash is now king, new homeowners such as Hernandez are finding ways to buy homes — well-kept ones with current mortgages.
After a long drought, money is becoming available to buy homes. Take Wells Fargo Home Mortgage. Andre Brooks, vice president and regional sales manager for the bank's Florida operation, said his company has made more than $3 billion in mortgages this year in Florida, nearly 20 percent more than last year.
But lending guidelines remain restrictive, said Terry H. Francisco, spokesman with Bank of America, so making purchases often requires creativity and calculation.
Among the options:
FHA
Loans backed by the Federal Housing Administration can require a down payment of just 3.5 percent compared with 20 percent many banks typically require.
But there are limits. For one, like other loans with a down payment less than 20 percent, the buyer must get mortgage insurance.
FHA loans also have a maximum and are available only to people who don't have an FHA loan and plan to make the property their primary residence.
Private loan
Made by a noninstitutional investor who does not advertise as a mortgage lender, this requires networking and personal relationships.
Grant S. Stern, president of Morningside Mortgage Corp., brokered a loan this summer for a condo buyer.
The borrower had made a preconstruction down payment of $90,000 on a two-bedroom, two-bath $300,000 condo. He had another $65,000 cash to close, but Fannie Mae's approval for the project expired with the the developer on the verge of default. With no time to get a conventional bank loan, so Stern arranged for a real estate investor to fund a five-year, fixed-rate loan.
"They said, 'Close in one week.' We closed in one week," he said.
Non Distressed Properties
Part of real estate agent Gene Mastro's strategy for buyers is avoiding foreclosures and short sales — especially by buyers who intend to live in the home they buy.
Owners of nondistressed properties are "more ready to correct problems, any minor deficiencies," said Mastro, who works for Coldwell Banker.
And they may be willing to pay all or part of closing costs, which can range from 2 to 7 percent of the purchase price.
Short-term loan
Another way to cover closing costs is a fast, short-term loan that doesn't show up on credit reports.
Todd Hills noticed that some users of his company, Boomerang Lending, wanted fast cash to pay closing costs. His Colorado-based business works like a pawn shop for those with pricier assets, including paintings and fine jewelry. A recent borrower offered a 1955 Picasso sketch.
"It's not something we've experienced before the last six months," said Hills, company CEO, but "it makes absolutely perfect sense. This is a way this consumer can get the cash that they need."
Lease to own
"It's a purchase agreement with a very delayed closing — three months or three years," Manausa said.
Tom Nisbet and fiancee, Greta Leber, have just such a contract on their condo. They are living in the 1,600-square-foot unit they hope to buy. It comes with two parking spaces, a pool and a gym, and it's close to the University of Miami, where Leber is working on her Ph.D.
After watching others' experiences with short sales and foreclosures, they steered clear. "This is by far the best place we saw on the market," Nisbet said.
State and local aid
While the federal first-time home buyer's tax credit ended months ago, it's not too late for house hunters to get government home-buying help.
Many city or county governments offer their own home buyer subsidies.
Government agencies with home-buying assistance programs say they are fielding lots of calls.
Source: http://articles.chicagotribune.com/2010-11-23/classified/sc-bizspecial-1123-credative-homebuyi20101123_1_home-buyer-tax-credit-mortgages-condo-buyer
Tuesday, November 23, 2010
Miami Home Sales Jumped
Miami, FL -- The median sales price of single-family homes in October in the Miami Metropolitan Statistical Area increased 12 percent to $199,100 from a year earlier, according to the MIAMI Association of REALTORS and the Southeast Florida Multiple Listing Service (SEFMLS).
Miami was one of only three home markets and the only major metropolitan area in Florida posting an increase for median sales price of single-family homes. Compared to the previous month, the median sales price rose six percent. "Rising median sales prices reflect strengthening and stability of the Miami real estate market," said Jack H. Levine, 2010 Chairman of the Board of the MIAMI Association of REALTORS.
On the other hand, the median sales price of condominiums in the Miami MSA dropped 22 percent in October, to $107,700, compared to the same month last year but increased more than eight percent compared to the previous month.
The sales of existing single-family homes in the Miami MSA decreased only four percent to 546 compared to October 2009 but were 21 percent higher than they were in October 2008. The Miami real estate market experienced rising residential sales since August 2008, posting increases for 23 consecutive months.
In the Miami MSA, condominium sales increased 17 percent to 757 compared to October 2009 and a 72 percent increase compared to two years ago, when sales were already rising. This was the highest increase in condominium sales of any major metropolitan area in Florida.
Short sales and foreclosures are continuing to have an impact on median and average sales prices for both single-family homes and condominiums especially in some areas of the county. "We continue to observe positive signs in the Miami market, and international buyers continue to fuel market strengthening," said 2010 MIAMI Association of REALTORS Residential President Oliver Ruiz. "While distressed properties continue to affect home values, especially for condominiums, we expect home values to improve as excess inventory is absorbed.
Miami was one of only three home markets and the only major metropolitan area in Florida posting an increase for median sales price of single-family homes. Compared to the previous month, the median sales price rose six percent. "Rising median sales prices reflect strengthening and stability of the Miami real estate market," said Jack H. Levine, 2010 Chairman of the Board of the MIAMI Association of REALTORS.
On the other hand, the median sales price of condominiums in the Miami MSA dropped 22 percent in October, to $107,700, compared to the same month last year but increased more than eight percent compared to the previous month.
The sales of existing single-family homes in the Miami MSA decreased only four percent to 546 compared to October 2009 but were 21 percent higher than they were in October 2008. The Miami real estate market experienced rising residential sales since August 2008, posting increases for 23 consecutive months.
In the Miami MSA, condominium sales increased 17 percent to 757 compared to October 2009 and a 72 percent increase compared to two years ago, when sales were already rising. This was the highest increase in condominium sales of any major metropolitan area in Florida.
Short sales and foreclosures are continuing to have an impact on median and average sales prices for both single-family homes and condominiums especially in some areas of the county. "We continue to observe positive signs in the Miami market, and international buyers continue to fuel market strengthening," said 2010 MIAMI Association of REALTORS Residential President Oliver Ruiz. "While distressed properties continue to affect home values, especially for condominiums, we expect home values to improve as excess inventory is absorbed.
Monday, November 22, 2010
Add 2.1 million houses to the glut
There's a large number of homes, either already repossessed by lenders or very seriously delinquent, that are poised to be added to the already glutted regular supply of homes on the market.
This "shadow inventory" jumped 10% during the past year, to an eight-month supply at the current rate of home sales, according to a report issued Monday.
According to CoreLogic, a financial information provider, there were 2.1 million homes in this uncounted inventory as of the end of August, up from 1.9 million units 12 months earlier.
Adding the shadow inventory to the visible supply of homes on the market boosted the total housing-market supply to 6.3 million units from 6.1 million in August 2009. At the current sales rate, it would take 23 months to go through the entire visible and shadow inventory of homes -- more than three times the normal rate of six to seven months.
The potential extra supply raises the risk of further home price declines, according to Mark Fleming, CoreLogic's chief economist.
"[Weak demand] is being exacerbated by a significant and growing shadow inventory that is likely to persist for some time," he said.
The shadow inventory has been growing as banks take a long time to process defaults.
Home prices expected to slide another 8%
Many banks have been slowing the foreclosure process because they already own a glut of homes, according to Rick Sharga, spokesman for RealtyTrac, the online marketer of foreclosed properties.
He said the banks are "managing" their inventory and not pushing delinquent borrowers quickly through the foreclosure pipeline so they don't have to repossess homes that will take a long time to sell.
It's better for the banks to allow borrowers to stay in these homes, doing the maintenance and protecting them from vandalism, than leaving them vacant for months in moribund markets.
Foreclosures: Where does your state rank?
The recent "robo-signing" scandal has further lengthened the foreclosure process. Several servicers temporarily froze foreclosure actions amid questions about whether many of the foreclosure documents were signed without proper review, raising questions about the procedure's validity.
Florida, Michigan, and California have the highest ratios of properties 90 days or more late compared with home sales. Texas has the lowest ratio of distressed properties to sales.
This "shadow inventory" jumped 10% during the past year, to an eight-month supply at the current rate of home sales, according to a report issued Monday.
According to CoreLogic, a financial information provider, there were 2.1 million homes in this uncounted inventory as of the end of August, up from 1.9 million units 12 months earlier.
Adding the shadow inventory to the visible supply of homes on the market boosted the total housing-market supply to 6.3 million units from 6.1 million in August 2009. At the current sales rate, it would take 23 months to go through the entire visible and shadow inventory of homes -- more than three times the normal rate of six to seven months.
The potential extra supply raises the risk of further home price declines, according to Mark Fleming, CoreLogic's chief economist.
"[Weak demand] is being exacerbated by a significant and growing shadow inventory that is likely to persist for some time," he said.
The shadow inventory has been growing as banks take a long time to process defaults.
Home prices expected to slide another 8%
Many banks have been slowing the foreclosure process because they already own a glut of homes, according to Rick Sharga, spokesman for RealtyTrac, the online marketer of foreclosed properties.
He said the banks are "managing" their inventory and not pushing delinquent borrowers quickly through the foreclosure pipeline so they don't have to repossess homes that will take a long time to sell.
It's better for the banks to allow borrowers to stay in these homes, doing the maintenance and protecting them from vandalism, than leaving them vacant for months in moribund markets.
Foreclosures: Where does your state rank?
The recent "robo-signing" scandal has further lengthened the foreclosure process. Several servicers temporarily froze foreclosure actions amid questions about whether many of the foreclosure documents were signed without proper review, raising questions about the procedure's validity.
Florida, Michigan, and California have the highest ratios of properties 90 days or more late compared with home sales. Texas has the lowest ratio of distressed properties to sales.
Wednesday, November 17, 2010
Know condo rules before decking the halls
Before you tack, nail or tape holiday decorations outside your condominium or home, consider your governing documents, your right to religious freedom and the story of Laurie Richter Spector.
Richter Spector, of Fort Lauderdale, fought back in court several years ago when her condo association demanded she remove a Jewish mezuzah from her door shortly after the holidays. While the case was eventually dismissed, now all Floridians share a state-supported right to post religiously mandated symbols — albeit small in size — anytime of year, regardless of association rules.
"I had a bad experience," said Richter Spector, about her association's order to remove her mezuzah — a small display case no longer than 6 inches long that encases a scroll with religious messages — from the exterior of her front door.
"But I am glad we went through it," added Spector, who left the condo community after the 2007 incident. "Nobody should be deprived of freedom of religion, especially in their own home."
Spector's experience is especially relevant this time of year, when residents' religious beliefs — and desire to express them publicly through holiday decorations — sometimes run afoul of HOA and condo rules.
Richter Spector argued that her right to religious freedom trumped the authority of the association. She said she was following Jewish religious law by keeping a mezuzah near the entrance of her home, and in letters to the association cited the fact that at least one other owner was allowed to keep a Christmas wreath up months after the holiday.
The association cited rules against exterior modifications and threatened eviction and a $1,000 fine.
Both sides refused to budge and ended up in civil court until the Florida Attorney General's Office intervened on behalf of Richter Spector and ordered the association to allow mezuzahs. The association was also ordered to post a sign in the building to let owners know their right to display mezuzahs.
Now it's a rule of the land. In 2008, the Legislature amended state law to guarantee condo owners a special right to display religious objects outside the door. While the statute does not mention the word "mezuzah," it covers objects with the same dimensions of a traditional mezuzah — 6 inches long, 3 inches wide and 1.5 inches deep.
Richter Spector says her ordeal remains a bittersweet victory. It also serves as a civics lesson about protecting your rights as an owner in a shared community.
But keep this in mind: Your condo or homeowners association may be able to put the kibosh on large religious displays and nonreligious decorations of any size.
Before you decorate this year, give your governing documents a once-over. Some associations limit sizes and locations of holiday displays, some enforce fines for taking too long to remove them post-holiday. Others may have no rules because they were not passed properly or have lapsed.
The state of Florida, which regulates condo communities, allows condo associations to pass rules that keep the community and residents safe. That means if your decorations interfere with that, you could have a problem.
There are not similar regulations for homeowners association per se, but an HOA may ban displays that block common areas, walkways, street intersections or the view of drivers on the road. An outdoor lighting display with poor wiring could be the subject of removal, possibly at the expense of the owner should governing documents provide the association the authority to fine and/or pay to have a display moved.
Source:http://www.sun-sentinel.com/business/realestate/condos/fl-decorations-condocol-1117-20101116,0,7701864.column
Daniel Vasquez can be reached at CondoColumn@Sunsentinel.com or 954-356-4219 or 561-243-6686. His condo column runs Wednesdays in Your Money and at SunSentinel.com/condos. Check out Daniel's Condos & HOAs blog for news, information and tips related to life in community associations at SunSentinel.com/condoblog. You can also read his consumer column Mondays in Your Money and at sunsentinel.com/vasquez.
Richter Spector, of Fort Lauderdale, fought back in court several years ago when her condo association demanded she remove a Jewish mezuzah from her door shortly after the holidays. While the case was eventually dismissed, now all Floridians share a state-supported right to post religiously mandated symbols — albeit small in size — anytime of year, regardless of association rules.
"I had a bad experience," said Richter Spector, about her association's order to remove her mezuzah — a small display case no longer than 6 inches long that encases a scroll with religious messages — from the exterior of her front door.
"But I am glad we went through it," added Spector, who left the condo community after the 2007 incident. "Nobody should be deprived of freedom of religion, especially in their own home."
Spector's experience is especially relevant this time of year, when residents' religious beliefs — and desire to express them publicly through holiday decorations — sometimes run afoul of HOA and condo rules.
Richter Spector argued that her right to religious freedom trumped the authority of the association. She said she was following Jewish religious law by keeping a mezuzah near the entrance of her home, and in letters to the association cited the fact that at least one other owner was allowed to keep a Christmas wreath up months after the holiday.
The association cited rules against exterior modifications and threatened eviction and a $1,000 fine.
Both sides refused to budge and ended up in civil court until the Florida Attorney General's Office intervened on behalf of Richter Spector and ordered the association to allow mezuzahs. The association was also ordered to post a sign in the building to let owners know their right to display mezuzahs.
Now it's a rule of the land. In 2008, the Legislature amended state law to guarantee condo owners a special right to display religious objects outside the door. While the statute does not mention the word "mezuzah," it covers objects with the same dimensions of a traditional mezuzah — 6 inches long, 3 inches wide and 1.5 inches deep.
Richter Spector says her ordeal remains a bittersweet victory. It also serves as a civics lesson about protecting your rights as an owner in a shared community.
But keep this in mind: Your condo or homeowners association may be able to put the kibosh on large religious displays and nonreligious decorations of any size.
Before you decorate this year, give your governing documents a once-over. Some associations limit sizes and locations of holiday displays, some enforce fines for taking too long to remove them post-holiday. Others may have no rules because they were not passed properly or have lapsed.
The state of Florida, which regulates condo communities, allows condo associations to pass rules that keep the community and residents safe. That means if your decorations interfere with that, you could have a problem.
There are not similar regulations for homeowners association per se, but an HOA may ban displays that block common areas, walkways, street intersections or the view of drivers on the road. An outdoor lighting display with poor wiring could be the subject of removal, possibly at the expense of the owner should governing documents provide the association the authority to fine and/or pay to have a display moved.
Source:http://www.sun-sentinel.com/business/realestate/condos/fl-decorations-condocol-1117-20101116,0,7701864.column
Daniel Vasquez can be reached at CondoColumn@Sunsentinel.com or 954-356-4219 or 561-243-6686. His condo column runs Wednesdays in Your Money and at SunSentinel.com/condos. Check out Daniel's Condos & HOAs blog for news, information and tips related to life in community associations at SunSentinel.com/condoblog. You can also read his consumer column Mondays in Your Money and at sunsentinel.com/vasquez.
Monday, November 15, 2010
For the quarter, home prices fall
South Florida home prices continued to drop in the third quarter, spurring an increase in condominium sales, even as single-family sales slumped, a report released Thursday by the Florida Association of Realtors found.
In Miami-Dade County, condo sales jumped to 2,527 in the third quarter, up 43 percent compared to the third quarter of last year. Single-family home sales dipped slightly to 1,812, down 1 percent from last year.
In Broward County, both condo sales and single-family home sales were down in the third quarter. Condo sales totaled 2,459 for an 8 percent drop, and single-family home sales totaled 2,076, an 18 percent drop.
Median prices dropped across the board. Single-family homes in Miami-Dade was $191,100, down 1 percent. Median-priced condos cost $104,600, a decrease of 24 percent.
In Broward, condo prices were $73,100 and single-family home prices stood at $209,600, down 10 and 2 percent, respectively.
Source: http://www.miamiherald.com/2010/11/12/1921731/for-the-quarter-home-prices-fall.html
TOLUSE OLORUNNIPA
In Miami-Dade County, condo sales jumped to 2,527 in the third quarter, up 43 percent compared to the third quarter of last year. Single-family home sales dipped slightly to 1,812, down 1 percent from last year.
In Broward County, both condo sales and single-family home sales were down in the third quarter. Condo sales totaled 2,459 for an 8 percent drop, and single-family home sales totaled 2,076, an 18 percent drop.
Median prices dropped across the board. Single-family homes in Miami-Dade was $191,100, down 1 percent. Median-priced condos cost $104,600, a decrease of 24 percent.
In Broward, condo prices were $73,100 and single-family home prices stood at $209,600, down 10 and 2 percent, respectively.
Source: http://www.miamiherald.com/2010/11/12/1921731/for-the-quarter-home-prices-fall.html
TOLUSE OLORUNNIPA
Wednesday, November 10, 2010
Slide in South Florida home prices continues
South Florida homes continued to shed value, sellers were still slashing prices and distressed sales were still dominating the market in the third quarter of the year-- all signs that the real estate recovery has a long way to go.
A report released Wednesday by real estate firm Zillow found that 45.2 percent of South Florida homes sold between June and September were sold for a loss, up slightly from the previous quarter, but down 2 percent for the month.
``Distressed sales have contributed to that 50 percent decline,'' said David Dabby, president of Coral Gables-based Dabby Group. ``They will continue to put a lid on prices for the foreseeable future.''
The continued slide has added to the ranks of underwater homes in the region. Since the June 2006 peak, home values have fallen 53.5 percent in South Florida, the largest drop among the top 25 markets covered by Zillow. That has left some 42 percent of single-family homeowners underwater, or owing more on their mortgages that their homes are worth.
That's slightly better than the third quarter of last year, when 45.1 percent of homes were underwater, but still much higher than the national average of 25 percent.
A high foreclosure rate and a weak job market continued to influence housing in the third quarter, the report found.
Deborah Katsikas, who recently sold her home in Southwest Miami-Dade County, said she had to cut the price, finally accepting an offer that was considerably less than she originally hoped for.
``The only way to sell is if you're competitive with everything that's out there,'' she said.
Now she's reaping the benefit of a buyer's market as she looks to purchase a new home. She has a contract to buy a short sale in Palmetto Bay, and the price of that home has been slashed multiple times, said her real estate agent, Anthony Askowitz.
According to Zillow, 21 percent of South Florida home sellers reduced prices in the third quarter, with a median reduction of 10 percent. The median selling price for a single-family home was $221,200 in the third quarter, up 1 percent quarter-over-quarter, but down 7.8 percent from last year.
For South Florida condominiums, the median sales price was $109,800, down 4.3 percent over last quarter, and down 14.2 percent from last year.
Askowitz, who owns two Re/Max offices, said price-cutting is the new normal, as home sellers seek to compete with the glut of foreclosures on the market.
According to a sales analysis by Esslinger-Wooten-Maxwell Realty, short sales and foreclosures account for more than 60 percent of South Florida home sales.
Source: http://www.miamiherald.com/2010/11/10/1917884/slide-in-south-florida-home-prices.html
By TOLUSE OLORUNNIPA
tolorunnipa@MiamiHerald.com
A report released Wednesday by real estate firm Zillow found that 45.2 percent of South Florida homes sold between June and September were sold for a loss, up slightly from the previous quarter, but down 2 percent for the month.
``Distressed sales have contributed to that 50 percent decline,'' said David Dabby, president of Coral Gables-based Dabby Group. ``They will continue to put a lid on prices for the foreseeable future.''
The continued slide has added to the ranks of underwater homes in the region. Since the June 2006 peak, home values have fallen 53.5 percent in South Florida, the largest drop among the top 25 markets covered by Zillow. That has left some 42 percent of single-family homeowners underwater, or owing more on their mortgages that their homes are worth.
That's slightly better than the third quarter of last year, when 45.1 percent of homes were underwater, but still much higher than the national average of 25 percent.
A high foreclosure rate and a weak job market continued to influence housing in the third quarter, the report found.
Deborah Katsikas, who recently sold her home in Southwest Miami-Dade County, said she had to cut the price, finally accepting an offer that was considerably less than she originally hoped for.
``The only way to sell is if you're competitive with everything that's out there,'' she said.
Now she's reaping the benefit of a buyer's market as she looks to purchase a new home. She has a contract to buy a short sale in Palmetto Bay, and the price of that home has been slashed multiple times, said her real estate agent, Anthony Askowitz.
According to Zillow, 21 percent of South Florida home sellers reduced prices in the third quarter, with a median reduction of 10 percent. The median selling price for a single-family home was $221,200 in the third quarter, up 1 percent quarter-over-quarter, but down 7.8 percent from last year.
For South Florida condominiums, the median sales price was $109,800, down 4.3 percent over last quarter, and down 14.2 percent from last year.
Askowitz, who owns two Re/Max offices, said price-cutting is the new normal, as home sellers seek to compete with the glut of foreclosures on the market.
According to a sales analysis by Esslinger-Wooten-Maxwell Realty, short sales and foreclosures account for more than 60 percent of South Florida home sales.
Source: http://www.miamiherald.com/2010/11/10/1917884/slide-in-south-florida-home-prices.html
By TOLUSE OLORUNNIPA
tolorunnipa@MiamiHerald.com
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