MiamiFlorida.com

During a recent conversation with a MarketLinx representative on the subject of MLS access and the limitations impose by Internet Explorer, the MarketLinx representative said and I quote “we are developing a solution that will allow native MLS access from virtually any platform or browser, including Mac OSX, Safari, Firefox, Chrome, etc.  The first Beta installation is happening this spring; rollout to the majority of our MLS customers should begin around the end of the year 2010. Depending on where Southeast Florida MLS falls in the installation schedule, you may not see it until late winter or spring 2011.  And that is assuming there are no major hiccups between now and then.  That said, this is a very high priority project for MarketLinx, so we’ll be doing our best to stick to the schedule.”

Once these changes become available, it means that no longer you will need to run Windows in order to access the MLS.

As of today the only way to access the MLS is using Windows Internet Explorer application. If you are using a Mac, you first need to install Parallels or VM Fusion software, which allows you to run the Windows operating system (XP or Windows 7). Then of course you can run Internet Explorer and be able to access the MLS. You can also purchase a copy of Crossover software which allows you to run Internet Explorer 6.0 or 7.0 beta. I have tested all of the above solutions and find that Parallels running Windows XP a reasonable combination. But no as a simple, reliable and efficient as running a native Mac application.

Well, hold tight MAC users, within a year from today or sooner your Windows frustrations will go away… You will have access to the MLS using Safari, Firefox, Chrome or any other browser of your choice.

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

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

According to a recent article published by the Wall Street Journal and a recent study published by Barclays Wealth, 75% of respondents felt residential real estate looks attractive from an investment perspective. And about half of the 2,000 respondents expect an increase in the value of their real estate investments over the next two years. Almost 40% of those with assets of $50 million or more have greater than 50% of their portfolio in real estate.

Miami offers today some of the best investment opportunities available in all price ranges.

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

Fannie Mae just released a new policy named “Deed for Lease Program” under which thousands of homeowners that are facing foreclosure will have the opportunity to remain in their homes as tenants.

Under the ”Deed for Lease” program, borrowers can transfer ownership to Fannie Mae and sign a one-year lease, with month-to-month extensions after that.

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

According to the Wall Street Journal, “Senate negotiators reached a tentative deal to extend a tax credit for first-time home buyers, but its passage remains uncertain.” and a new tax credit of up to $6,500 for existing homeowners is also under consideration.

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

The most recent FOMC statement clearly signals better times ahead for the US Economy, and for that matter, for the US Housing markets.

The Federal Open Market Committee (FOMC) just released the following FOMC statement after their most recent two day meeting which just concluded.

Information received since the Federal Open Market Committee met in August suggests that economic activity has picked up following its severe downturn. Conditions in financial markets have improved further, and activity in the housing sector has increased. Household spending seems to be stabilizing, but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit. Businesses are still cutting back on fixed investment and staffing, though at a slower pace; they continue to make progress in bringing inventory stocks into better alignment with sales. Although economic activity is likely to remain weak for a time, the Committee anticipates that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will support a strengthening of economic growth and a gradual return to higher levels of resource utilization in a context of price stability.

With substantial resource slack likely to continue to dampen cost pressures and with longer-term inflation expectations stable, the Committee expects that inflation will remain subdued for some time.

In these circumstances, the Federal Reserve will continue to employ a wide range of tools to promote economic recovery and to preserve price stability. The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period. To provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve will purchase a total of $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt. The Committee will gradually slow the pace of these purchases in order to promote a smooth transition in markets and anticipates that they will be executed by the end of the first quarter of 2010. As previously announced, the Federal Reserve’s purchases of $300 billion of Treasury securities will be completed by the end of October 2009. The Committee will continue to evaluate the timing and overall amounts of its purchases of securities in light of the evolving economic outlook and conditions in financial markets. The Federal Reserve is monitoring the size and composition of its balance sheet and will make adjustments to its credit and liquidity programs as warranted.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Donald L. Kohn; Jeffrey M. Lacker; Dennis P. Lockhart; Daniel K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.

emphasis added

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

The increased percentage of real estate construction loans in delinquency is another sign of bad news not just for commercial real estate but also for the banking sector.

Many argue that commercial real estate prices – which so far have suffered relatively little downward pressure – are heading for a substantial correction in the months to come. And by the way, the banking sector – one that has enjoyed a substantial 6 month rally in its stock prices in expectations of much better times ahead – could very well experienced a second act in troubled loans in the months ahead, specifically in commercial real estate loans.

WHAT IT MEANS FOR HOUSING INVENTORY

In short, get in before is to late.

With sales increasing, the current levels of inventory will eventually be a thing of the past by 2010.

And with limited financing for developers, don’t expect new building projects for several years ahead.

As of last September 2nd 2009, Miami-Dade county had 27,692 properties for sale. That represents a drop of 36% or 15,496 properties for sale in a period of 15 months. Don’t forget that the number of properties for sale in Miami-Dade county peaked at 43,188 properties for sale in June 2008. The drop in the number of properties for sale is expected to continue well into 2010.

Don’t miss on the buying opportunities available today. Prices are stabilizing and before you notice, prices will start to climb again.

Give us a call!

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

Source:
Construction Loans Falter, a Bad Omen for Banks
FLOYD NORRIS
NYT, September 4, 2009
http://www.nytimes.com/2009/09/05/business/economy/05charts.html

See also:
For Commercial Real Estate, Hard Times Have Just Begun
TERRY PRISTIN
NYT, September 1, 2009
http://www.nytimes.com/2009/09/02/business/economy/02office.html