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Reuters published an article earlier today saying that “the Obama administration is trying to push a settlement that could force the largest U.S. banks to pay for reductions in loan principal worth billions of dollars following breakdowns in mortgage servicing, The Wall Street Journal said.” Although still to early to speculate on the ramifications is such a settlement occurs, is this kind of news that reinforced our believe that government will continue to play a key roll in the real estate recovery we have experienced since since 2009.

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 the Wall Street Journal, the Obama administration is pushing for a minimum of 10% for the down payment of your new home.  Not to bad if you consider that for 2010 the average down payment was 22%. But a far cry from those 100% financing we saw 4 and 5 years ago. However, if the property you plan to purchase qualifies for an FHA loan, then your down payment requirement is only 3.5%.

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 recent article publish by trulia.com, three big lenders; Wells Fargo, Bank of America and Chase originated 56 percent of last year’s business.

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

Many argue that the real estate market has bottomed and moreover that in some areas we have experience a price recovery for the past year or so. If treasury yields move higher, this fragile recovery could come to halt!

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 an article published by The Miami Herald, the average rate on a 30-year mortgage rose to 5.05% this week, the highest level since April 2010 and almost 100 basis point higher that the lowest level touched last November.

If rates continue to rise, this is not welcome news for the housing recovery we are experiencing since early 2010.

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 an article published by the Wall Street Journal, cash buyers are increasingly becoming a key component of the real estate turn-around story.

Cash Buyers clearly believed that real estate prices are in a bottoming process. So firm is their believe that for 2010 Cash Buyers in Miami accounted for 54.2% of all sales while the national number is a respectable 28% (statistics provided by the National Assoc of Realtors). The rate was 14% in October 2008, when the The rate was 14% in October 2008, when the National Assoc of Realtors began tracking the measure.

Note that Cash buyers are for the most part wealthy and very well informed investors which tend to lead a trend rather than follow one. Judging by their buying interest, this is another argument why the Miami real estate market is still a screaming buy.

Also keep in mind that Cash Buyers on average request and normally get at lest a 5% to 10% discount to asking price over those Buyers who are financing the purchase of a similar property.

Cities with the most cash deals

The following cities had the highest percentage of homes purchased through all-cash deals in December 2010:

Miami: 54.2 percent
Las Vegas: 45.9 percent
Tampa, Fla.: 44.6 percent
Phoenix: 35.6 percent
Stockton, Calif.: 29.1 percent
Chicago: 23.4 percent
San Diego: 23.1 percent

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

If you own a “rental property”, you need to be aware of a new law in effect for the 2011 tax year.

For the 2011 tax year, the IRS requires you to issue a 1099 form to those individuals that you pay for services related to your rental property. For example the handyman and other vendors. Starting in 2011, its imperative that all vendors that doing at least $600.00 worth of work for you and issue an IRS 1099 to each one. This requirement isn’t new; larger rental property owners already do it. However, last year the Small Business Jobs Act of 2010 expanded the requirement to all property owners who are doing rentals as a sideline. For more information click here.

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

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