Sales in Miami-Dade County surged in November 2009, with existing single-family homes increasing by 24 percent and existing Miami-Dade condo sales rising 98 percent. Broward County's numbers were even more impressive, with single-family home sales surging 39 percent and existing condo sales rising a staggering 103 percent.

"Rapid inventory absorption leads inevitably to price stabilization," stated Katerina Brosda, president of Brosda & Bentley Realtors in Sunny Isles Beach, whose company reported earlier the median sales price in Sunny Isles Beach increased 4.1 percent during the period from September 2009 through November 2009.   

Interest rates for a 30-year fixed-rate mortgage averaged 4.88 percent last month, a significant drop from the average rate of 6.09 percent in November 2008, according to Freddie Mac.

The inventory of listings in Miami-Dade County according to the Southeast Florida Multiple Listing Service has dropped more than 41 percent in the last 15 months - from 43,095 to 25,415 – and November 2009 brought a 2.8 percent decrease in just one month. Nationally, total housing inventory at the end of November declined 1.3 percent from the previous month.

The Brosda and Bentley website features more than 50,000 real estate listings. Users can search the MLS for free for the most comprehensive real estate data available

Florida Existing Condo Sales Up 111 Percent

Florida’s existing home sales rose in November, marking 15 months that sales activity has increased in the year-to-year comparison, according to the latest housing data released by Florida Realtors®.

Existing home sales rose 61 percent last month with a total of 14,026 homes sold statewide compared to 8,694 homes sold in November 2008, according to Florida Realtors. Statewide sales of existing condos increased 111 percent last month compared to November 2008’s sales figure.
For the second month in a row, all of Florida’s metropolitan statistical areas (MSAs) reported increased existing home sales and higher condo sales in November. A majority of the state’s MSAs have reported increased sales for 17 consecutive months.

“The extended and expanded federal homebuyer tax credit will continue the positive momentum of the housing sector’s recovery – people will want to take advantage of this incredible, not-to-be-missed opportunity to buy a home of their own in Florida,” says 2009 Florida Realtors President Cynthia Shelton, CCIM, CRE, a broker and director of investment sales with Colliers Arnold in Orlando.

“For 15 months now, statewide sales of existing single-family homes in Florida have increased each month compared to the year-ago figures,” Shelton says. “The continued, gradual absorption of housing inventory will help stabilize home prices. National research notes that housing affordability is at its peak and the highest on record: Along with still-low mortgage rates, it means that the buying power of a typical family has never been better."

Florida’s median sales price for existing homes last month was $139,000; a year ago, it was $158,200 for a 12 percent decrease. Housing industry analysts with the National Association of Realtors® (NAR) note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in October 2009 was $173,100, down 6.8 percent from a year earlier, according to NAR. In California, the statewide median resales price was $297,500 in October; in Massachusetts, it was $287,000; in Maryland, it was $250,210; and in New York, it was $209,900.

According to NAR’s latest industry outlook, home sales are experiencing a pendulum upswing.“Keep in mind that housing had been underperforming over most of the past year,” said NAR Chief Economist Lawrence Yun. “The tax credit is helping unleash pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future. In the second half of 2010, if home values show consistent stabilization or even a modest increase, then home sales could register normal healthy levels."

In Florida’s year-to-year comparison for condos, 4,889 units sold statewide last month compared to 2,320 units in November 2008 for an increase of 111 percent. The statewide existing condo median sales price last month was $104,400; in November 2008 it was $131,400 for a 21 percent decrease. The national median existing condo price was $172,900 in October 2009, according to NAR.

Interest rates for a 30-year fixed-rate mortgage averaged 4.88 percent last month, a significant drop from the average rate of 6.09 percent in November 2008, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s smaller markets, the Tallahassee MSA reported a total of 174 homes sold in November compared to 100 homes a year earlier for a 74 percent increase. The market’s existing home median sales price last month was $162,000; a year ago it was $170,00 for a 5 percent decrease. A total of 5 condos sold in the MSA in November, up 150 percent over the 2 units sold in November 2008. The existing condo median price last month was $110,000; a year earlier, it was $95,000 for an increase of 16 percent.

 

Florida’s Existing Condo Sales Up 77% in September


Florida’s existing home sales rose in September, which marks more than a year (13 months) that sales activity has increased in the year-to-year comparison, according to the latest housing data released by Florida Realtors®. September’s statewide sales also increased over sales activity in August in both the existing home and existing condominium markets.


Existing home sales rose 34 percent last month with a total of 14,419 homes sold statewide compared to 10,778 homes sold in September 2008, according to Florida Realtors. Statewide existing home sales last month increased 4.1 percent over statewide sales activity in August.


Florida Realtors also reported a 77 percent increase in statewide sales of existing condos in September compared to the previous year’s sales figure; statewide existing condo sales last month rose 8.9 percent over the total units sold in August.
All of Florida’s metropolitan statistical areas (MSAs) reported increased existing home sales in September; all but one MSA also showed gains in condo sales. A majority of the state’s MSAs have reported increased sales for 15 consecutive months.
Florida’s median sales price for existing homes last month was $142,000; a year ago, it was $174,900 for a 19 percent decrease.

Housing industry analysts with the National Association of Realtors® (NAR) note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.
The national median sales price for existing single-family homes in August 2009 was $177,500, down 12.1 percent from a year earlier, according to NAR. In Massachusetts, the statewide median resales price was $315,000 in August; in California, it was $292,960; in Maryland, it was $265,862; and in New York, it was $205,000.


NAR’s latest industry outlook notes positive signs in the housing sector, but adds that extension of the federal first-time homebuyer tax credit would help sustain a fragile recovery.“Now that the market is showing some momentum, we have an opportunity to achieve a more rapid and broader stabilization in home prices,” said NAR Chief Economist Lawrence Yun. The outlook for home sales and prices depends on whether the tax credit is extended, he said, describing it as “the best tool in our arsenal to encourage financially qualified buyers to stimulate the economy and help reduce the budget deficit.”


In Florida’s year-to-year comparison for condos, 5,088 units sold statewide last month compared to 2,870 units in September 2008 for a 77 percent increase. The statewide existing condo median sales price last month was $102,500; in September 2008 it was $153,500 for a 33 percent decrease. The national median existing condo price was $179,300 in August 2009, according to NAR.


Interest rates for a 30-year fixed-rate mortgage averaged 5.06 percent last month, a significant drop from the average rate of 6.04 percent in September 2008, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.


Among the state’s smaller markets, the Pensacola MSA reported a total of 275 homes sold in September compared to 267 homes a year earlier for a 3 percent increase. The market’s existing home median sales price last month was $135,000; a year ago it was $146,900 for an 8 percent decrease. A total of 48 condos sold in the MSA in September, up 41 percent over the 34 units sold in September 2008. The existing condo median price last month was $190,000; a year earlier, it was $180,000 for a 6 percent gain.

5Qs interview: CEO of Brosda & Bentley says market is alive

 

 

Katerina Brosda, president and CEO of Brosda & Bentley Realtors in Aventura, says there's plenty of action in the housing market and prices are near the bottom.

 

Katerina Brosda, president and CEO of Brosda & Bentley Realtors in Aventura, has been a leader in pursuing potential buyers to the far corners of the globe. Her firm now has affiliate offices in Dubai, London, Monte Carlo and Paris and she reports her agents are working overtime making high-end deals. She agreed to share her take on the local market with talkofaventura.com:

TOA: Prices keep falling; foreclosures keep rising; but sales are up. Is the Aventura-Sunny Isles Beach market on the rebound?

Brosda: That is truly difficult to predict. There is certainly a huge difference between oceanfront and west of Collins in Sunny Isles Beach and along the beaches. In Aventura, one must differentiate between established community and new development, especially south of 180^th, with so many new condos competing for ever more discerning buyers. 

In Sunny Isles Beach, the Jade Beach and Trump Royal developments recently won Fannie Mae approval, enabling the developers to sell the remainder of units to buyers wanting to apply for financing for a portion of the purchase price. Trump Towers has had over 15 sales in April and many more contracts scheduled to close. The spectacular St. Tropez Towers has arranged for special financing terms for its buyers, but the real action is in short sales, pre-foreclosure sales and heavily discounted properties throughout both cities. Short sales now take only six weeks or less to close, as banks have become more understanding and well versed in the process. 

Are we close to a bottom: Very close indeed! Let me put it this way: You buy an oceanfront property today, you cannot go wrong. May prices come down even further? Perhaps somewhat, but you do not worry too much when you are purchasing today with the intend to hold on to the property for several years. 

As far as mid-priced or lower-end priced properties are concerned, even more buyer-education is necessary, as buyers think that banks will accept the lowest offer or even give properties away, which is not the case at all. There is also a common misconception that banks will treat a property as a liability rather than as an asset and want to get rid of it at any price. That is not true, either. And many buyers think they are the only ones buying. Not true at all. As recently as a few days ago an out-of-state buyer could not make up his mind on his dream condo. He was hesitating and thought he had time to think to make an offer. By the time he did make up his mind other buyers were faster and already made the accepted offer.

TOA: We keep hearing about new oceanfront condo towers with so many non-paying units that the associations are struggling to keep the lights on.  Do you foresee a period when some quality buildings become just no-buy zones? And if so for how long?

Brosda: We keep hearing or reading the same rumors sometimes from rather questionable sources. If there is a developer in town wanting to sell product, we would be the first to learn about it! All new development plans are two, three, four years down the road. There are many approved oceanfront developments on record in Sunny Isles Beach, but they are not happening right now. Some condos are struggling with collecting maintenance assessments. This may remain an issue for as long as the overall economy is stabilizing. At Brosda & Bentley Realtors we have a strict corporate policy to require association boards to provide us with a written statement as to their financial status, reserve accounts and percentage of delinquent owners. If we see the numbers out-of-order, we will advise our clients to reconsider a purchase based on the findings. We do, however, market and sell pre-construction near downtown as there remains demand for specific niche product. 

TOA: Your agency has offices all over the world. How does South Florida real estate look today from, say, a European perspective?

Brosda: Italians love America and especially Florida. Period. With the announcement of Fiat taking over Chrysler, we had entrepreneurs calling from Italy wanting to buy or take over Chrysler dealerships and simultaneously looking for housing, especially in South Beach. The British who were strong buyers up until a year ago have almost vanished as buyers. The French and Germans are still buying selectively. As a matter of fact, we have several scheduled appointments for the summer months from prospects visiting from Europe expressing interest to buy Southeast Florida real estate.  Even with the concerns of the global economic struggles, the U.S. still remains the leading safe-haven for real estate investors from all over the world. Europeans are very demanding in their requirements and know exactly what they want and what not as they do their research online!

TOA: What’s your best advice to prospective buyers?

Brosda: As one of the leading full-service real estate companies in Florida, I would advise any potential buyer to make sure that they are dealing with a Realtor that knows what he/she is talking about. We have an increased number of calls from Realtors who do not even have access to the MLS anymore, inquiring with us as to the availability of condos in a specific building.  This is unacceptable to the profession. Buyers must be clear as to know what they want and Realtors must be able to help to identify properties their prospects desire. I do see home sales gradually stabilizing. The action is in lower price ranges and mid-price ranges. High-end properties are picking up again, but we find those buyers, oversees, in Europe, South America or even India. If you can afford it, time to buy is right now. I don’t believe that this generation will ever see low prices and interest rates like this again.

TOA: What’s your best advice to prospective sellers?

Brosda: If you are in the market to sell, demand a marketing agent not just a real estate agent — someone who is dedicated not just to selling your home, but to selling it for more. Expect your real estate consultant to be an expert negotiator. Negotiations take preparation, strategic thinking and persistence, requiring the agent to devote time throughout the selling process. Find an agent who is a property promoter, not a personal promoter. It’s great for an agent to claim a top ranking and be #1 in some local magazine’s award- giveaway, but it’s meaningless unless that agent is promoting your property and not his own prestige. Insist on an agent with capable information technology skills, including online and database understanding. 

Real estate sales move at the speed of light and you should expect your agent to handle complex Internet searches and manipulate secure databases. 

Last but not least, favor Realtors who are leaders in their communities and who have a record of giving back. Real estate consultants who invest in where they live will use their skills in your favor as they will remain in that community long after you have moved away.

MiamiJustListed.com is your source for up to date real estate information.

http://www.miamijustlisted.com/

New single-family home sales rose to an annual rate of 858,000 units from a revised rate of 836,000 in February, the Commerce Department said.

Analysts polled by Reuters were expecting March sales to rise to 888,000 from the previously reported rate of 848,000 units in February.

In March, the median sales price of a new home rose $2,200 to $254,000 from $251,800 in February.

There were 545,000 new homes for sale in March, slightly more than the 544,000 reported in February. It would take 7.8 months to clear that inventory at the current sales pace, slightly less than the 8.1 months recorded in February.

The Commerce Department's data comes a day after a real estate trade group reported a weaker-than-expected month of existing homes sales.

The sales pace of existing homes dropped 8.4 percent in March, the biggest tumble in more than 18 years, the National Association of Realtors said on Tuesday.

Home resales, which represent 85 percent of the housing market, fell to an annualized 6.12 million units.

Across the regions, the Northeast saw a 50 percent increase in new home sales in March while the Midwest recorded a more modest 9.8 percent increase. The South and West both saw slight decreases in sales of 2.7 percent and 0.9 percent, respectively.

Posted on Tue, Jun. 28, 2005 REAL ESTATE Bubble discounted by officials Regulators at the Federal Deposit Insurance Corp. frowned on the notion that the recent rise in housing prices is a speculative fluke. BY KEVIN G. HALL WASHINGTON - Bubble, what bubble? Top officials at the Federal Deposit Insurance Corp., which regulates national banks, on Monday dismissed fears that rising home prices nationwide reflect a speculative bubble ready to burst. Nationwide home prices grew by more than 12.5 percent in the first quarter of this year, 11 percent last year and 8.4 percent over the past five years. The nation's hottest markets have had price gains exceeding 30 percent in the last three years. Some economists believe that housing prices are being driven by speculative investment based more on faith that prices will rise even further than on economic fundamentals. FDIC officials, however, frowned on the notion that the recent rise in housing prices is a speculative fluke. The banks the FDIC regulates hold 30 percent of the credit risk on outstanding U.S. mortgages. Today the agency will release new state-by-state economic profiles. Taken together, the profiles conclude that most booming U.S. housing markets are sustained by strong growth in new jobs. ''In general, that is where home prices are rising most rapidly,'' said Barbara Ryan, associate director of the FDIC's research division. For example, she said, Nevada recorded a 31.22 percent rise in home prices for the first quarter in 2005 over the same quarter in 2004. In the same period, it posted job growth of 6.7 percent, far higher than the 1.6 percent year-over-year national average. Arizona had the seventh-fastest climb in home prices in this year's first quarter -- and the second-fastest increase in jobs. Florida had the fifth-fastest climb in home prices and jobs. In December 1996, Federal Reserve Chairman Alan Greenspan famously warned of ''irrational exuberance'' when describing a bubble in stock prices that collapsed in 2000. He's using softer language today regarding the housing market, describing excessive home-price jumps in some markets as ``froth.'' Many economists believe that ''froth'' is primarily in California, and statistics suggest as much. California posted the second-fastest growth in first-quarter home prices over the previous year, but ranked 26th in job growth. Even in markets with steep price gains, busts don't necessarily follow booms, cautioned Richard Brown, the FDIC's chief economist. FDIC researchers examined data from 55 metropolitan areas that saw a boom at some time between 1978 and 2004 -- defining a boom as an inflation-adjusted rise in home prices by 30 percent or more over a three-year period. A bust followed the boom in only nine instances -- with a bust defined as a drop in nominal prices by 15 percent or more over a five-year period. The few busts that followed booms came after significant external factors such as the mid-'80s collapse in world oil prices that rocked the Houston market, or the loss of jobs when a huge employer goes out of business. Some pessimistic economists believe that creative financing with interest-only and exotic adjustable-rate loans have enticed many Americans to purchase homes they can't afford. When long-term interest rates finally go up, they predict, many borrowers using such loans -- the fastest-growing segment of the mortgage market -- will be unable to make payments, and foreclosures will soar.   Posted on Mon, Jun. 27, 2005

MIAMI-DADE Millionaire numbers rise Florida's Gold Coast is more than just a name, with a new study finding a sharp increase in the number of millionaire households. BY GREGG FIELDS Who wants to be a millionaire? Who doesn't? In metropolitan Miami, an increasing number of people are reaching that goal. According to a new study commissioned by Merrill Lynch, the number of millionaires in Miami-Dade County climbed to 20,183 last year -- an increase of 6.36 percent. WEALTH DISPARITY Meanwhile, the study projects that the number of millionaire households in greater Miami will grow roughly 10 times faster than the overall population. According to the report, the number of millionaire households will climb 49.4 percent over the next five years, although the total number of households will rise just 5.6 percent. The steep climb in home prices isn't behind the hike. The study actually excluded the primary residence when counting wealth, although other real estate investments were included. What is driving the road to riches? ''What we see in Miami is a lot of small business owners, and they're benefiting from overall economic activity,'' said Maria Arazoza, vice president and wealth management advisor at Merrill Lynch in Miami. Miami is part of a global trend in which it appears the rich are getting richer -- or at least, more people are getting rich. Worldwide, 8.3 million people were millionaires in 2004, which is up 7.3 percent from 2003. The study, by market research firm Claritas, didn't examine Broward County. But two trends that Arazoza said are fueling the wealth explosion in Miami clearly apply to Broward as well: aging affluent baby boomers and unrest in Latin America that is sending the business class northward. ''With boomers we see a lot of demand for resort-type lifestyles, and I don't see that demand lightening up,'' she said. ``Also, in Latin Americans you see a steady influx of people looking to make a home here, many times with their assets already here.'' STOCK DIFFERENCE The Latin American and American millionaires tend to have one significant difference, however. With U.S. citizens, 41 percent of their wealth is in stocks. With Latins, only about 18 percent is. If there's any consolation for the vast majority -- or nonmillionaire segment -- of the population, it's that seven figures doesn't buy the lifestyle it used to. ''A balanced [$1 million] portfolio that yields six to seven percent annually -- that's $60,000 to $70,000 in annual income,'' she said. ``It doesn't truly allow you to live as you would perceive a millionaire historically would.''

Not Your Grandson's Bubble

That said, comparing real estate with other true bubbles -- most especially the tech/telecom/dotcom bubble of the 1990s -- is imperfect, due to several factors.

Homes are illiquid assets that take several months to sell; stock can be liquidated instantly.

The housing market is regional, with an uneven distribution of asset appreciation: Equities are national, and even global.

Lastly, there is an intrinsic value of a house as a place where you can live; Compare this with a company whose only asset was a sock puppet -- the tulip bulb of its day -- and it's clear why a profitless, assetless, publicly traded company can go to zero. Barring an external disaster like Love Canal, houses will not.

When we compare what the key drivers are for price appreciation between these two asset classes, other crucial differences appear.

What Drives Housing Prices

Posted on Fri, Jun. 10, 2005

Glitzy model centers drive condo sales

Posh new residences lure prospective buyers with a fantasy lifestyle created in sales centers that soon fall to demolition

BY LYDIA MARTIN


A trio of sleek towers called Canyon Ranch Living will soon materialize just beyond the surf at Collins Avenue and 68th Street, and people with a penchant for fancy spas will live where they get their hot stone treatments and seaweed scrubs.