Coconut Grove, Coral Gables & South Miami Real Estate

Archive for the 'Market Updates' Category

South Miami Sales through April 2010

So far this year there have been 15 single family home sales in South Miami.  Of those, 2 were short sales and 3 foreclosures.   Average price per sq. ft., approximately $172.00.

This is down, 21%, from last years 19 sales for the same time period.  There were no short sales last year but 6 of the 19 were foreclosures.  Average price per sq. ft., approximately $190.00. 

Click here for a list of sold single family homes in South Miami for Jan –  April 30, 2010

Click here for a list of sold single family homes in South Miami for Jan - April 30, 2009

If you or someone you know is looking for a real estate professional who specializes in Coconut Grove, Coral Gables or South Miami real estate, give me a call at 305-987-2644 or send me a note here.

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NY Times names South Florida as area where “Buying a home appears to be a Bargain”

The NY Times reported last week that in some areas “prices have fallen so far that buying a home appears to be a bargain”.  Luckily for us, South Florida was named as one of those areas.

The Times analysis was based on the costs of buying versus renting a home of comparative value.  The article also provides three very informative, interactive tables.   All three are geared towards helping you decide if it is better for you, personally, to buy or rent.

Read the full article here.

If you or someone you know is looking for a real estate professional who specializes in Coconut Grove, Coral Gables or South Miami real estate, give me a call at 305-987-2644 or send me a note here.

Or, just subscribe here if you would like these blogs sent directly to your inbox.  After subscribing, you will recieve an email requesting activation.

New HAFA Program – Could it be a Short Sale Savior?

 

“Short sales”, just the words evoke controversy.  If your not familiar with the term, it is used when a home is what we call upside-down on the mortgage.  When the market value of the home is less than the actual mortgage amount due and the homeowner needs to sell.

Like many Realtors here in Miami, I have been trying to avoid short sales like the plague.  You may have heard the stories.  Buyer finds a great home at a great price.  Offers full price on short sale property.  Offer is accepted by the homeowner and submitted to the bank for review.  Buyer waits and waits, months and months, and finds out that the list price is no where near what the bank will accept.  Deal dies.  Frustrated buyer, frustrated seller, no one wins. 

Now it looks like there may be some relief in sight and short sales may become the new best deals in town. 

The Treasury Department has introduced a new program, Home Affordability Foreclosure Alternatives Program (HAFA).  This program is designed as an option for homeowners that are unable to keep there homes through the original Home Affordable Modification Program (HAMP). 

The HAFA Program took effect on April 5, 2010 and offers significant modifications to the short sale process.  Additionally, it provides financial incentives for the homeowners and the lenders, in connection with a short sale.  It was designed to expedite the short sale process significantly thereby getting the homes sold prior to foreclosure.  

Here are some key points:

• Allows sellers to receive pre-approved short sales terms, including the minimal acceptable net proceeds (sales price). 
• Uses standard processes, documents and time frames/deadlines.  This in itself can change the short sale climate drastically.
• Provides financial incentives:
  • $3,000. for Sellers relocation assistance.
  • $1,500. for lenders administrative and processing costs.
• Best of all, the lender may not require a cash contribution or promissory note from the borrower and must forfeit the ability to pursue a deficiency judgment against the borrower.  This is HUGE.

Click here to find a list of participating lenders/servicers.

The HAFA Program has the potential to revolutionize short sales, but it’s success will depend on committed implementation by the lenders and recognition that the loss will be less with a short sale than a foreclosure, not just for the lender, but for everyone!

I look forward to seeing how this will affect short sales in the near future and the market in general.  I will keep you informed as to how it goes.

If you or someone you know is looking for a real estate professional who specializes in Coconut Grove, Coral Gables or South Miami real estate, give me a call at 305-987-2644 or send me a note here. 

Or, just subscribe here if you would like these blogs sent directly to your inbox.  After subscribing, you will recieve an email requesting activation.

Market Update – Tri-City 1st Qtr 2010 – Coconut Grove, Coral Gables and South Miami

Great news, the first quarter results for the tri-city area are in and it’s looking good.  I have broken down this information into three categories, single family under $1MM, single family over $1MM and condominium/townhomes.  We, as Realtors here in Miami, have felt the increase in activity so we knew things were moving forward but the graphs below provide the evidence to support this.

Single Family Under $1MM

In the under $1MM category, home sales are up 27.5% with inventory of homes dropping 34% over last year.  This means less homes available and more people buying.  Additionally, the homes pended are significantly higher over last year which hopefully will translate to higher closed sales in the next few months. 

 

Single Family Over $1MM

In the over $1MM single family market we are seeing the same trends, just not as drastic.  The closed sales are the same as this time last year but inventory of homes for sale did show a 15.6% decrease.  So basically, the higher end sales have not picked up as of yet.  

 

Condominium/Townhomes

Condos and townhomes have been the hardest hit in this market with the vast amount of inventory and the difficulties with financing.  The good news is that we are seeing improvements in this area too.  The inventory of units is leveling off with a 15% decrease over this time last year and and a 36.4% increase in closed sales.  There even appears to be a spike in pended sales in March.  We will see if this translates into an increase in sales over the next few months.

I love these graphs because, being a visual person, it makes interpretation of the data much easier for me to understand and provides a snapshot of a significant period of time.  I hope it does the same for you.

For more concise market information, just click on Coconut Grove, Coral Gables or South Miami to see the market data specific to each city/area.

If you or someone you know is looking for a real estate professional who specializes in Coconut Grove, Coral Gables and the South Miami areas, or if you would like a trends report tailored to your neighborhood, give me a call at 305-987-2644 or send me a note here.

Or, just subscribe here if you would like these blogs sent directly to your inbox.  After subscribing, you will recieve an email requesting activation.

3 Reasons Why Waiting to Buy a Home May Cost You Thousands

If you or anyone you know are  waiting to see where the market is going before buying a home, here are three reasons why you may want to re-think the decision to wait.

• Mortgage Rates -     There is a very good chance that interest rates will increase this year.  Two years ago, the Washington Post reported that home loan rates shot up to nearly 7% from 6% in less than a week. The volatility demonstrated that week resulted from turmoil in the financial markets and a lack of buyers for mortgage backed securities (MBS).  That volatility continued through November 2008 when the Federal Reserve announced a program designed to lower rates and provide stability to housing. That program has been incredibly successful, driving rates to the lowest levels of all time. However, as this program will end March 31st, people want to know: Where are rates going now?  Read more….
• Tax Credits – As most of you are aware, the Worker, Homeownership and Business Assistance Act of 2009 provided tax credits to first time and long-time homebuyers that purchase a home in either 2009 or 2010.  To qualify for this credit, buyers must be in contract on a home by April 30, 2010 with the home purchase completed by June 30,2010.  For additional information…
• FHA Changes – Coming just weeks before the April 30 deadline for the Home Buyer Tax Credit and just days after the March 31 expiration of the Federal Reserve Board’s mortgage backed securities purchase program, FHA will be increasing increasing the costs of required mortgage insurance and reducing the amount allowable for Seller contributions.  Read more….

If you or someone you know has questions regarding the above or any real estate matters I can be reached at 305-987-2644 or email me here.

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January 2010 – Tri-City Market Update – Coconut Grove, Coral Gables and South Miami

Here we are at the beginning of a New Year and a New Decade and the South Florida real estate market continues heading in the right direction.  

The two below graphs represent the movement of single family homes in Coconut Grove, Coral Gables and South Miami areas for the last 15 months.  As you can see, the supply of homes remains steady in January with just a slight dip in sales for the month.  This is likely due to the slow down in buying during the holiday season.  The good news is that there is an increase in the pended homes (under contract) which should reflect an increase in closed sales in February and March.

The first chart shows the numbers for homes listed under $1MM and the second is the over $1MM numbers.

  

Interested in this information for your neighborhood?  Give me a call at 305-987-2644 or send me a note via email and I can develop a report to your specifications.

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Good News for Home Buyers – Lender Response Time Reduced for Short Sales

The US Treasury has announced new guidelines requiring certain lenders to respond to short sale offers within 10 days.  If this comes to pass, it could drastically change the short sale environment for not only South Florida but the entire country.

As you may or may not know, in a short sale, the homeowner sells the property for less than what’s owed on the mortgage.  While most buyers shy away from these deals because of the length of the transaction and the uncertainty, this change could be just what it takes to jump start these sales.

In addition, the new rule includes a financial incentive for both the Seller and Lender.  Sellers may be able to receive $1,500 in moving allowances without having to repay the debt while lenders can recieve $1,000 to cover administrative and processing costs. 

For more information, read the full Miami Herald article. 

If you or someone you know is looking for a real estate professional who specializes in Coconut Grove, Coral Gables and South Miami real estate, give me a call at 305-987-2644 or send me a note here.

Or, just subscribe here if you would like these blogs sent directly to your inbox.  After subscribing, you will recieve an email requesting activation.

New Fannie Mae Progam – Big Break for Florida Condo Sales

Fannie Mae just announced new “special approval” program to make more Florida condominiums eligible for financing. 

As most of you are aware, Fannie Mae is a government sponsored enterprise (GSE) chartered by Congress with a mission to provide liquidity, stability and affordability to the U.S. housing and mortgage markets.  Currently, they are reviewing hundreds of condominium projects in Florida to make units eligible for Fannie Mae-backed loans.

Depending on the outcome of their review, this could make a huge impact on the Miami Condo market. 

Read the full Miami Herald article for additional information and a current list of Fannie Mae approved condominiums.

If you or someone you know is looking for a real estate professional who specializes in the Miami area, give me a call at 305-987-2644 or send me a note here.

It Passed!! Home Buyer Tax Credit of 2009

Great news on the real estate front.  On Friday, November 6th, the Worker, Homeownership and Business Assistance Act of 2009 was signed into law by President Obama.

What can this mean to you?  Well it includes all the features of the previous plan but has been “extended and expanded!”

 The three main revisions are:

• Extends deadline for purchasing and closing on a home.  An eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. 
• In addition to the $8,000 first time home buying credit, long-time homeowners buying a replacement principal residence  may also claim a homebuyer credit of up to $6,500.
• Raises the income limitations for homeowners claiming the credit.  

For additional information, visit the IRS webpage.

If you or someone you know is looking for a real estate professional who specializes in the Miami area, give me a call at 305-987-2644 or send me a note here.

Or, just subscribe here if you would like these blogs sent directly to your inbox.  After subscribing, you will recieve an email requesting activation.