Active Miami-Dade home-sale market bucking national trend

Since a federal tax break expired June 30, home sales have fallen 20.9 percent in Phoenix, 32.5 percent in Las Vegas, 19.9 percent in San Diego, and even 25 percent in Austin's recession-resistant housing market.

But in Miami-Dade, which continues to battle massive amounts of foreclosures, a bloated inventory of homes and high unemployment, sales have outperformed the national market for the past two months, ignoring the post-tax credit hangover. Since June, Miami-Dade combined sales are flat, according to data from the Florida Association of Realtors.

Miami-Dade's numbers stack up well next to national numbers, an indication that falling prices and international interest in South Florida real estate are sustaining sales.

Nationally, August sales rose slightly from July's 15-year lows, but were still down 19 percent year-over-year and 22.5 percent since June, the National Association of Realtors said.

The federal homebuyer's tax credit expired in April, so most markets saw a bump in sales in May and June, as buyers closed sales before the program's original June 30 deadline.

Miami-Dade sales of existing homes, condos and townhouses increased 31.3 percent in August compared to the same month of 2009, figures released Thursday show.

The picture is not as pretty in Broward County, where year-over-year existing sales slumped 11.6 percent in August for all home types, and sales have slipped 18.7 percent since June.

Comparing South Florida to some of the headline markets in the most troubled states -- Nevada, California and Arizona -- gives a more nuanced picture of the factors that have distinguished the Miami area from the rest of the country.

``Miami hit its peak in the fourth quarter of 2005, the other markets didn't hit their peaks until the fourth quarter of 2007,'' said Peter Zalewski, a principal at Bal Harbour-based consultancy Condo Vultures.

``In Miami, the prices have been cut since 2009. If you go to Southern California, you're not going to see those price cuts yet.''

As home prices rise nationally, South Florida continues to see its prices slashed, fueling the appetite of bargain-hungry international buyers and local investors.

In August, condo prices fell 28 percent to $104,800 in Miami-Dade, and single-family home prices fell 6 percent to $182,900. In a lending environment where many struggle to obtain loans for the discounted properties, cash-wielding investors have ramped up their activity, propping up sales.

Source: http://www.miamiherald.com/2010/09/24/v-fullstory/1839897/active-miami-dade-home-sale-market.html

By TOLUSE OLORUNNIPA
tolorunnipa@MiamiHerald.com

Miami Existing Condominium Sales Spike 50 Percent, Single-Family Home Sales also Rise in August

The Miami real estate market continues to strengthen as a result of increased sales and stabilizing home prices. In the Miami Metropolitan Statistical Area (MSA), there was a 59 percent increase in condominium sales in August compared to August 2009 and a 77 percent increase compared to two years ago, according to the MIAMI Association of REALTORS and the Southeast Florida Multiple Listing Service (SEFMLS).

The sales of existing single-family homes in the Miami MSA increased 12 percent in August compared to August 2009 and were 36 percent higher than they were in August 2008. The Miami real estate market experienced rising residential sales since August 2008, posting increases for 23 consecutive months. After dipping slightly last month, single-family home sales are again reflecting healthy gains, while condominium sales continue to increase significantly.

“We are encouraged by the fact that the sales of both single-family homes and condominiums are increasing,” said Jack H. Levine, 2010 Chairman of the Board of the MIAMI Association of REALTORS. “Home prices continue to stabilize, but the substantial presence of distressed properties in our market is contributing to fluctuations in median sales price levels. Still, the evident demand for South Florida real estate is definitely a positive sign.”

Statewide sales increased 22 percent for condominiums and one percent for single-family homes.
Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops rose 7.6 percent from July, but remain 19 percent below August 2009, according to the National Association of Realtors (NAR).

Home Prices

After posting increases in the last few months, the median sales price of single-family homes in the Miami MSA fell slightly in August.

The median sales price for single-family homes in the Miami MSA in August decreased six percent to $182,900 compared to a year ago. The median sales price for condominiums in August was $104,800, down 28 percent from a year ago. Statewide median sales prices decreased nine percent to $134,000 for single-family homes and 24 percent to $81,600 for condominiums.

Average sales prices, which have increased consistently over the last few months, rose again in August for single-family homes but dropped for condominiums. According to the SEFMLS, the average sales price for residential properties that sold in Miami-Dade County in August increased 9 percent from the previous year to $290,990 for single-family homes and decreased 35.3 percent to $174,470 for condominiums.

Days on the Market and Inventory Levels Decrease

The inventory of residential listings in Miami-Dade County according to the SEFMLS has dropped 5 percent from 27,255 to 25,679 since August 2009. The levels of active single-family home listings and of condominiums have both dropped six percent from a year ago. Compared to last month, the total inventory of homes increased a negligible .08 percent. The average days a property stays on the market decreased 16.7 percent to 92 for single-family homes and 19.3 percent to 103 for condominiums.

Nationally, total housing inventory at the end of August slipped .6 percent from the previous month.

New International Study Confirms Miami’s Global Prominence

Florida is by far the top state in the U.S. for international buying activity, and South Florida consistently ranks as a top market for foreign buyers within the state. Due to the local market’s global prominence, the MIAMI Association of REALTORS partnered with NAR to conduct a study that reveals information about foreign buyers in the Miami area.

“This report communicates key findings about the crucial international buyer that fueled the local market’s recovery and is now playing an important role as the marketplace strengthens,” said 2010 MIAMI Association of REALTORS Residential President Oliver Ruiz. “We continue to see strong demand from international buyers in all price points, including the high-end market. These buyers are willing to outbid competing offers and are 89 percent cash, a factor that automatically expedites their transactions.”

Source: http://www.prweb.com/releases/miami_real_estate/single-family_home_sales/prweb4559224.htm

Miami-Dade Pending Home Sales Continue to Rise

Total pending home sales - including single-family homes and condominiums - in Miami-Dade County increased 33.7 percent in August 2010 compared to August 2009, from 7,570 to 10,119, and increased .06 percent, from 10,113 to 10,119, compared to the previous month according to the MIAMI Association of REALTORS and the Southeast Florida Multiple Listing Service (SEFMLS).

The South Florida real estate market continues to strengthen, primarily due to the highest concentration in the U.S. of international buyers, contrary to national trends, which show near-term home sales noticeably lower since the expiration of the homebuyer tax credit.

Pending sales of condominiums in Miami-Dade County continue to perform better than that of single-family homes.

In August, condominium pending sales increased 49.7 percent compared to the previous year, from 3,848 to 5,759 and increased 0.7 percent, from 5,720 the previous month. Pending sales of single-family homes in August increased 17.1 percent from the previous year, from 3,722 to 4,360, and decreased a slight 0.8 percent from the previous month when pending sales totaled 4,393, showing a preference for condos in August.

Miami High-End Condos Experience a Miniboom

It is past half-time for 2010 Southeast Florida real estate sales. After a rocky 2009, how did 2010 weather so far, is the million dollar question many are asking. Prices started tumbling since September 2008 - and in certain market segments, housing values are still down significantly, but there is also good news to report as to market research provided by Brosda & Bentley Realtors. Especially for new luxury oceanfront condo developments in Sunny Isles Beach, Miami Beach and downtown Miami in particular, sales are booming and prices in some areas are on the rise.

Jade Beach condo tower, in North Miami Beach was nearly sold out during 2009, despite the dramatic economic downturn in the United States. Jade Beach resales are now strong and closed units are setting new retail sales records. Its sister tower Jade Ocean condos, is an oceanfront, ultra-luxurious glass palace, towering 50 stories above the Atlantic Ocean and reporting more than 60 percent of sold condominium units. The Acqualina Resort & condos, a landmark in Sunny Isles Beach, claim the title of highest retail sales price per square foot in the city. During the summer, two units closed at $784 and $714 per square foot respectively. The elite Turnberry Ocean Colony condos boasts six retail sales, with the highest being at $733 per square foot.

Some of the most expensive Miami penthouses sold thus far in 2010 include the Marquis penthouse in downtown Miami. It sold a few days after LeBron James announced his engagement with the Miami Heat. Entrepreneur Russell Wright closed on the 67-story Marquis luxury residential condo, with reportedly the highest terrace and hot tub in Miami. Dwayne Wade of the Miami Heat sold his house in Davie and is now apparently looking for a trophy property in Miami, as is Chris Bosh of the trio. Russell Wright is quoted as saying that the economic force of the three basketball superstars playing in Miami "Is going to have an impact, I probably already made money on the condo."

In June, the 'Imperial Suite' or Penthouse Villa B sold at the über-luxurious Setai Resort & Residences in Miami Beach for a record breaking $15 million or $2,416 per square foot.

Downtown Miami condo sales were up 110 percent with 1,933 units sold in the first 6 months of 2010. Great downtown Miami condos that sell due to drastic price reductions include Met I, Epic and Icon Brickell, which sold 49 units, including at least one with a $100,000 over-the-odds premium, after LeBron James announced his switch to the Miami Heat. The average sales price of a downtown Miami condo in the first two quarters of 2010 was reportedly $356,100 or about 16 percent higher than in 2009.

In March, April and May of 2010, 135 condos sold in Miami-Dade County priced $1 million and above, nearly double the number compared to the same time period in 2009. At the beginning of the summer, impressive sales at One Bal Harbour for $8.7 million, at the Fontainebleau for $9 million and Santa Maria Brickell for $11 million kept Miami luxury real estate brokers abuzz.

A highly anticipated new oceanfront condo development is the St. Regis Resort and condo residences in Bal Harbour, destined to open in 2011. The three glass towers replaced the famous Sheraton in front of the gated entrance to the renowned Bal Harbour Shops. Over $40 million in sales were reported in the first half of 2010.

Brosda & Bentley Realtors features more than 50,000 residential and commercial Southeast Florida property listings on its website BrosdaandBentley.com. The company provides free usage of the database to registered users. Consumers may also opt to receive automatic updates on new listings, pre-foreclosure and short sale properties. Katerina Brosda, Broker and CEO of the company sold the 10 Museum Park penthouse in downtown Miami with its very own rooftop pool. "Most of our clients during 2009 and 2010 were cash buyers, not investing into Miami real estate per se, but actually pursuing to live in the homes they bought. Yes, these may still be third or fourth trophy properties, this goes especially for condos, but our clients invested heavily in upgrades, eclectic designs, electronic SMART Home features, custom fittings and furniture," Katerina Brosda stated. Brosda & Bentley also provides a one stop, turnkey, white-glove home furnishings and design conceptualization service to its clients.

"Miami Condo sales above the $1 million mark will continue to outpace single-family home sales in the same price category for the rest of 2010 and into 2011. Condominium living is the new lifestyle choice of the wealthy," said Katerina Brosda.

Brosda & Bentley Realtors projects luxury Miami condominium sales to remain strong. The average sales price for residential properties that sold in Miami-Dade County increased by 8.3 percent in July. Inventory levels have dropped 11.4 percent compared to July 2009. Condominium listings have dropped 11 percent and the average days a property stays on the market decreased 10.3 percent for single-family homes and 11.9 percent for condominiums or 100 and 114 days respectively.

Source: http://www.prweb.com/releases/MiamiRealEstateMiniboom/082710/prweb4432054.htm

Hopes rise with sales of downtown Miami condos

The idea of a vibrant city center in Miami is bolstered by a Downtown Development Authority finding that condo sales -- and prices -- are going up.

Residents and officials longing to see downtown Miami transformed into the nexus of a bustling, 24-hour city are beginning to see a little cooperation from the market.

Even as home prices have continued to drop across South Florida, downtown Miami -- the hub of the over-development that many believe sparked the housing market collapse -- seems poised for a comeback, a new study released by the Miami Downtown Development Authority shows.

The report found sales of downtown condos have accelerated during the first half of this year, and the inventory of empty new condos on the market is steadily declining. Prices are on the rise as well.

In the first six months of this year, there were 1,933 units sold in Miami's downtown area, which stretches from Brickell north to Midtown and from I-95 east to Biscayne Bay. That's an increase of 110 percent over the first six months of 2009, when 919 units closed.

``Downtown is an exciting place to be right now, with everything going on, and the report shows that people want to live downtown. They want to live in the heart of the city,'' said Leo Zabezhinsky, the DDA's manager of business development, real estate and research. Zabezhinsky moderated a downtown-themed discussion during the Greater Miami Chamber of Commerce's Real Estate Committee meeting on Tuesday.

The average sales price of a downtown home was $356,100 in the first six months of the year, up about 16 percent from the first two quarters of 2009, when the average unit sold for $306,700. For comparison, existing condo prices across Miami-Dade County dropped about 9 percent between June 2009 and June 2010 to $128,800.

The inventory of new, unsold condo units in the downtown area stood at an estimated 5,400 units as of June 30.

About half of the unsold units in the downtown area are in the Brickell area. The Central Business District, bounded by NE Fifth Street on the north and the Miami River on the south, contains nearly a quarter of the remaining new condo units.

At the current sales pace, downtown Miami's glut of new condos could be absorbed within the next 18 months, but there are a couple of caveats.

First, the DDA's numbers do not include the 870 units at the completed Mint at Riverfront and Paramount Bay buildings, currently empty but set to begin sales in the near future. Secondly, much of the sales activity has been generated by investors, who are largely expected to unload these properties back onto the market once prices rise and the housing picture brightens.

``Resale of investor-owned properties could continue for four or five years,'' said Craig Werley, president and owner of Focus Real Estate Advisors and one of the authors of the study.

In the meantime, those hoping that an active rental market can spur the type of downtown renaissance longed for by a growing group of supporters are encouraged by an occupancy rate inching towards 75 percent. The DDA's report shows leasing activity up 14 percent in the first six months of the year compared to 2009, with average rent down about 1 percent, to $1,787.

Another potential economic stimulator for the area, though still untested, is the arrival of the revamped Miami Heat team at downtown's AmericanAirlines Arena. With LeBron James, Chris Bosh and Dwyane Wade promising multiple championships, the effect on AAA's neighborhood could be transformative, said William Talbert III, president and CEO of the Greater Miami Convention and Visitors Bureau.

``Just think about all the restaurants that are going to open up,'' he said. ``You talk about a stimulus package -- that's one.''

But a number of major issues still hinder Miami's downtown from rivaling some of the other metropolitan hubs like Chicago and New York, said Sharon Dresser, co-founder of High Street Retail USA in Midtown.

The lack of flagship shopping destinations, inadequate public transportation between central downtown and areas like Midtown and the Design District and ``real or perceived'' safety issues all need to be addressed, she said.

``If you want to do serious shopping, you have to leave the downtown area,'' she said.

Source: http://www.miamiherald.com/2010/07/28/1749345/hopes-rise-with-sales-of-downtown.html

By TOLUSE OLORUNNIPA
tolorunnipa@MiamiHerald.com

U.S. home sales jumped in June

BY ALAN ZIBEL
Associated Press

New U.S. home sales jumped in June by the largest amount in more than eight years as buyers took advantage of bargain prices, low interest rates and a federal tax credit for first-time homeowners.

While home prices are still falling, the figures released Monday were another sign the housing market is finally bouncing back. Data out last week showed home resales rose 3.6 percent in June, the third straight monthly increase.

Shares of big home builders soared on the news, with Beazer Homes USA up by more than 13 percent and Hovnanian Enterprises rising 8 percent. But with home prices still falling, these companies won't be making much money anytime soon.

The Commerce Department said new home sales rose 11 percent in June to a seasonally adjusted annual rate of 384,000, from an upwardly revised May rate of 346,000.

However, new home sales for the southern region of the country, which includes Florida, fell 5.3 percent.

Brad Hunter, West Palm Beach-based chief economist and national director of consulting for Metrostudy, a housing research firm, said the government's estimate should be taken with a grain of salt since the margin of error is 13.2 percent.

``The trend we are seeing is that the absorption of new home sales or move-ins is basically still falling,'' Hunter said. ``They are not moving at as fast a rate as they were even a few months ago, which is disturbing.''

Metrostudy's most recent analysis of South Florida showed new home sales fell from 1,204 to 668 between the first and second quarter in a six-county region extending from Miami-Dade to Indian River.

Nonetheless, economists said buyers were rushing to take advantage of a federal tax credit that covers 10 percent of the home price or up to $8,000 for first-time buyers. Home sales need to be completed by the end of November for buyers to take advantage.

``The window of opportunity is closing,'' said Bernard Markstein, senior economist for the National Association of Home Builders.

June's results were the strongest sales pace since November 2008 and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 360,000 units. The last time sales rose so dramatically was in December 2000.

Sales have risen for three straight months. The median sales price of $206,200, however, was down 12 percent from $234,300 a year earlier and down nearly 6 percent from $219,000 in May.

``Over the last three or four months there has been a large increase in traffic and you have a larger increase in inquiries as to homes,'' said Fernando Martinez, vice president of sales and marketing with Homestead-based Caribe Homes and president-elect of the Builder Association of South Florida. ``The traffic is ready to buy. They've been looking for a while. They are part of the pent-up demand, Martinez said.

Fallout from the housing crisis has played a central role in the U.S. recession, now the longest since World War II. Foreclosures have spiked, home builders have slashed construction, and financial companies have lost billions.

But it will still be a while before home builders turn into an engine for the economic recovery. Construction levels are still weak because builders still have too many unsold homes sitting vacant.

Miami Herald Business Writer Monica Hatcher contributed to this report.

Source: http://www.miamiherald.com/2009/07/28/1160396/us-new-home-sales-register-a-sharp.html