MiamiFlorida.com

Given that is this my first blog of 2012, what better way to start the new year than with an overview of current real estate market conditions for Miami-Dade County.

I have prepared a short presentation entitled “Miami-Dade JAN12” which I hope you will enjoyed.

For more information on the above or if you have any questions or comments, please feel free to send me an e-mail to: michael@miamiflorida.com, text or call me at my mobile number 305.450.0036

The Associated Press AP reports that the “Rate on 30-year mortgage falls to lowest on record”  dating to 1971.

The rate on the most popular mortgage dipped to 4.15 percent from 4.32 percent a week ago, Freddie Mac said Thursday. Its previous low of 4.17 percent was reached in November. The last time long-term rates were lower was in the 1950s, when 30-year loans weren’t widely available. Most long-term home loans lasted 20 or 25 years.

“Real Estate: It’s time to buy again” is the headline of a recent article published by CNNMoney.com The article focuses on real estate as an asset class that has underperformed for the past 4 years. However, in the face of much lower inventory levels today, investing in real estate has become attractive again.

Mike Castleman, founder and CEO of Metrostudy, which tracks real-time data of the country’s inventory of new homes, says a housing shortage is looming that will soon create a huge surge in demand for new homes. As such, now is the time to buy, he says.

In the 41 cities Metrostudy covers, 78,000 houses are either vacant and for sale, or under construction – that is less than a quarter of the new homes that fell in that category during the housing boom in 2006 and way below the level of a decade ago.

For more information or if you have any questions or comments, please send me an e-mail to: michael@miamiflorida.com or text or call me at my mobile number 305.450.0036

According to a Bloomberg news article published last 29th of March 2011 and titled “Cash-Paying Vultures Pick Bones of U.S. Housing Market as Mortgages Dry Up”, for the past month of February 2011, 33% of all existing-home sales in the US were cash transactions. And for the same month, South Florida registered close 70% cash transactions in sales of existing-home.

This numbers are amazing and certainly unheard of.

Notwithstanding the historical low rates available for financing today, the difficulties and extensive requirements imposed by lenders motivate buyers to consider paying in cash. Another motivation comes from the Sellers themselves who are so discourage by the lengthy credit approval processes, that are willing to discount asking prices a few additonal percentage points if the buyer buys cash and is willing to close withing weeks.

For more information or if you have any questions or comments, please send me an e-mail to: michael@miamiflorida.com or text or call me at my mobile number 305.450.0036

The Miami real estate market is certainly picking up activity. That has been the case for the past 12 to 18 months. And what is most assuring is that the pace is gaining momentum.

The analogy is the heading on this blog. Those with a strong appetite for risk boarded the train 18 to 24 months ago or so, and for a while they had to sit and wait at the station until others – also patient investors – boarded as well.

Since last year we have begun to observe price appreciation in certain areas of Miami and particularly in specific buildings in the Brickell-Downtown area. With this in mind, you can argue that is time for the more conservative investors to also board the train. Traditioanlly, these investors prefer to see a real estate market that is showing steady signs of improvement before they invest.

But what you want to avoid is a train like the one on this picture. Because if you are an investor and by any chance you could see your face in the photo shown here, then is too late to jump in and buy. You might fall and get hurt, because the train is already moving at full speed. WE ARE NOT THERE, NOT YET!

As the title implies. “The train has left the station, but you can still jog to catch it… no need to run… not yet!” WE BELIEVE IS TIME TO INVEST and DEALS are still in abundance, get on board before the masses do!

For more information or if you have any questions or comments, please send me an e-mail to: michael@miamiflorida.com or call me at my mobile number 305.450.0036

As you read the numbers below, one KEY number to pay attention too, is PENDING SALES. This number represents those properties that have executed contracts and are pending to close. You might refer to this number as a leading indicator of the health of the real estate market. A positive high percentage number tells you that sales are picking up and inventory is moving at a good pace. Lower inventories eventually lead to higher prices!

The following table shows you a year-end vs year-end comparison (December 2010 vs December 2009 and so on) for the residential real estate market in Miami-Dade County.

For example:

- The number of NEW LISTINGS increased 5.0% in December 2010 versus December 2009.

- The number of properties LISTED FOR SALE decreased 4.8% in December 2010 versus December 2009.

- The number of properties SOLD increased 7.3% in December 2010 versus December 2009.

- The number of properties UNDER CONTRACT increased 34.2% in December 2010 versus December 2009.

and so on …..

For more information or if you have any questions or comments, please send me an e-mail to: michael@miamiflorida.com or call me at my mobile number 305.450.0036

De acuerdo con un reciente articulo publicado por El Nuevo Herald y titulado “Extranjeros Dominan Mercado de Propiedades”, extranjeros desde Canadá a la Argentina y muchos Europeos se están aprovechándose de los precios bajos disponibles hoy día en Condos en las áreas de Brickell, Downtown Miami, Biscayne Blvd., Miami Beach, Sunny Isles y Aventura, áreas donde donde todavía se consiguen excelentes precios de compra en nuevos y espectaculares Condos.

De las 23,000 unidades que se construyeron desde el 2003 al 2009, apenas el 74% están ocupadas. De modo que el restante 26% o aproximadamente unas 5,980 quedan disponibles. Estas cifras y mas información la pueden obtener en el siguiente reporte “Residential CLosing and Occupancy Study, March 2010 Update”, publicado por el “Downtown Development Authority”.

Para mas información sobre este articulo o si tiene preguntas o sugerencias, se puede comunicar con nosotros a: michael@miamiflorida.com o me puede llamar al 305.450.0036

A lot has been written about “Shadow Inventory” but a recent Bloomberg news article “Shadow Inventory of U.S. Homes Climbs, Report Says” summarizes it the best.

The term “Shadow Inventory” is used in different ways, but it applies to all of the following:

1. Developer Units – These are properties (Condos, Single Family Homes or Townhouses) listed for sale by the Developer. With very few exceptions, these properties are not listed in your local Multiple Listing Service (MLS) which is not only used by Real Estate Agents, but also serves as the normal source of real estate statistics. Developer units are moving faster than you might think or read about.
2. Foreclosures in Process – These are properties that are in the process of foreclosure and seriously delinquent loans. Keep in mind that some loans may be in the modification process.Foreclosures in Process are a concern today! given the poor visibility/reading we are getting from Lenders. But wishful thinking suggest that the administration and their respective agencies involved in the lending process could surprise us favorably. More favorable news to come.
3. REO’s (Real Estate Owned) in process - Are bank owned properties that have not been put on the market yet.REO’s (Real Estate Owned) in process is a double side sword for Lenders. The speed of growth in REO portfolios has slow down substantially. Lenders are understandably more apprehensive take over properties and then selling them at below market prices. It is a snow ball effect they are trying to minimize.
   
4. Previously Listed for Sale in the MLS – These are homeowners who had their property listed for sale and for one reason or another did not sell. The primary reason being that owners had expectations of getting a higher price for the property. These owners are now waiting for comparable properties that are listed as Short Sale or REO to sell so they so that they may have a better chance at selling their own property at a higher price.Previously Listed for Sale in the MLS is a phenomenon that has always been present. It simply has increase with the current market conditions and will go back to a normal trend as economic conditions improve.
   
5. Undecided Homeowners – These are homeowners who are also entertaining the possibility of selling but are also waiting to list for sale for the same reasons as those owners who previously listed the property for sale on the MLS.Undecided Homeowners is also a common fact of life in the real estate business. Guessing this number is like guessing the lottery!

Does Ben Bernanke, Chairman of the US Federal Reserve, know something about interest rates that the rest of us do not?

Maybe, but the likelihood of higher interest rates in 2010 and beyond is not much of a secret!

In a recent TIME Magazine interview, Chairman Bernanke says he refinanced his own mortgage a couple of months ago at 5%, and switched from a floating rate, which the Fed chairman said “exploded” in cost, to a 30-year fixed.

TIME: Do you have a mortgage?
Bernanke: Oh, yes, we refinanced.
TIME: Oh, perfect. When?
Bernanke: About 5%. A couple of months ago.
TIME: Good time.
Bernanke: Yes. We had to do it because we had an adjustable rate mortgage and it exploded, so we had to.
TIME: So, did you get a fixed rate at 5%? I think this might be the most valuable piece of information. (Laughter.)
Bernanke: Thirty years fixed rate at a little over 5%.

Although the motivations to refinance your home or finance a new purchase may vary from one family to another, it is clear that the low interest rates available today and the strong possibility of higher interest rates into 2010 and for several years to come is a strong motivation.

And for Buyers, lets not forget that low real estate prices will not last forever either.

If you are buying real estate or are considering refinancing your existing property, we can help! Give us a call at 305.450.0036

For more information or if you have any questions or comments, please send me an e-mail to: michael@miamiflorida.com or call me at my mobile 305.450.0036

This article states the U.S. Treasury has finally set the guidelines for their “short sale” plan.  Although there is nothing posted on the U.S. Treasury’s website yet, we are expecting the details to be released shortly at www.financialstability.gov.  Please reference this website for the full details of the plan.

If you have any questions or comments, please send me an e-mail to: michael@miamiflorida.com or call me at my mobile 305.450.0036