MiamiFlorida.com

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

Have you asked yourself what is the best deal out there. Is it on:

a) Bank Owned Property (REO’s)

b) Short-Sale (SSL’s)

c) none of the above

Most BUYERS have focused on REO’s and SSL’s, and failed to recognize that SELLERS of Non-REO’s and Non-SSL’s have increasingly become very competitive in their pricing and/or willingness to negotiate offers.

After all, if SELLERS do otherwise, they will not be able to sell until the inventory of REO’s and SSL’s is reduced substantially from the current levels. The following chart summarizes the current market.

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

If you are considering buying/selling a home or if you are an investor looking into expanding your real estate asset allocation, look no further that the following presentation; miami-real-estate-31aug09.

This presentation provides you with a general summary of Miami’s real estate market conditions as of 31 August 2009. It covers;

• Inventory
• Historical Prices/SqFt
• Trends in Closed Sales and Pending Sales
• Areas of Opportunities.

Miami’s supply of Condos for sale continues to drop as indicated by statistics published by “Facts & Trends” Trendgraphics.com

CONDO INVENTORY

At of the end of May 2009, Miami-Dade County had 19,923 Condos listed for sale. This represents the lowest number of Condos for sale since the inventory peaked at 24,905 in May 2008. The May number of 19,923 also represents a drop of 5.5% from April 2009.

Lower inventory levels is good news for Sellers and Developers and a strong warning to undecided Buyers who seem to be waiting for X price before they decide to buy.

CONDO SALES

As of the end of May 2009, Miami-Dade County recorded 757 sales of Condos which represents a 99.7% increase in sales from the lowest monthly sales number recorded which was December 2007.

This is another welcome sign for Sellers and Developers who are unloading inventory at fire-sale prices.

AVERAGE PRICE PER SQ FT

Average Price per square foot (SF)  is a better indicator of the state of Miami’s real estate market.

As of the end of May 2009, Miami-Dade County recorded an average price of $205/SF. Although this number is 15.8% higher than the April 2009 number, it is still 44.7% lower than the highest number recorded on May 2007.

SUMMARY

The above Inventory and Sales figures, combined with the attractive average price/sf numbers – certainly an improved picture from several months ago – continues to attract buyers to the unique deals available today.

And although some argue that an increased number of foreclosures could temporarily derailed this recovery – a possibility more evident in properties valued under $300,000.00 – the real estate sales outlook for the remainder of 2009 and into 2010 still favors a Buyers market.

Finally, smart money continues to chase investment opportunities with Developers, its Lenders and their respective unsold Condo inventory.

Don’t miss out on 2009 buying opportunities!

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

Miami parece ser el centro del universo en lo que se refiere a las oportunidades de inversión disponibles hoy día en bienes raíces, al menos para aquellos que residen en el Caribe, Centro y Sur América.

Si usted ha estado siguiendo las noticias de la caída de los precios de las propiedades en Miami y se inclina a invertir en el mercado residencial de Miami, pero por una razón u otra todavía no se decide, le sugiero que lea detenidamente nuestro breve y mas reciente estudio titulado “Oportunidades de Compra en el Mercado Residencial de Miami“. Los datos están actualizados al 31 de marzo del 2009.

Si usted esta interesado en identificar que oportunidades existen de acuerdo a sus intereses particulares, envienos un e-mail a: michael@miamiflorida.com y/o ana@miamiflorida.com

También nos puede llamar al 305.450.0036 cel de Michael P. Schnabel o al 786.210.6578 cel de Ana M. Schnabel (Margare Báez).

Our “Miami Real Estate Market as of June 2008″ presentations is now available.

The goods news is that residential sales have increase an average 4.9% every month since Jan. 2008 as inventories of unsold properties have also increase – but at a smaller pace – 1.5% monthly since Jan. 2008.

Although inventory keeps rising every month, the monthly percentage increase is a far cry from the double digit percentages experienced two years ago.

Clearly we are seeing more and more bargain hunters asking for bank owned properties (REO’s) like there is no tomorrow.

Traditional sellers are not staying behind either. Those sellers who truly need to sell, are forced to discount somewhat aggressively if they intend to sell in this market.

Take a good look at our “Miami Real Estate Market as of June 2008″ presentation and if you have any questions or comments, please send me an e-mail to: michael.schnabel@mac.com or call me at 305.450.0036

The following presentation was prepared from information gathered from the Multiple Listing Service (MLS) for Miami-Dade County and from Trendgraphix.

Miami Real Estate Market Presentation as of April 2008

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

For the past six months, the rising trend in inventory (all listed residential properties for sale – condos and single family homes) is showing early signs of stabilizing. If so, it could be one of two possibilities:

a) a pause in a rising trend which is expected to continue.
or
b) a volume consolidation which could lead to a downtrend in inventory.

We welcome your thoughts!

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