Miami, FL – In the Miami metropolitan statistical area (MSA), there was a 7 percent increase of existing single-family home sales in January 2010 compared to January 2009 and 60 percent compared to January 2008, according to the Realtor Association of Greater Miami and the Beaches and the Southeast Florida Multiple Listing Service (SEFMLS). The sales of existing condominiums in the Miami MSA increased 42 percent in January 2010 compared to the same month the previous year. The Miami real estate market has experienced a surge in sales since August 2008, posting increases each of the last 18 months.
“Home sales in the Miami-Dade County area continue to increase year-over-year while prices stabilize significantly, a clear indication that the local market has rebounded and is strengthening,” said Terri Bersach, 2010 Chairman of the Realtor Association of Greater Miami and the Beaches.
Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops dropped 7.2 percent from the previous month but increased 11.5 percent from January 2009.
The median sales price for single-family homes reported in Miami-Dade in January 2009 was $183,400, down 12 percent from the previous year. The median sales price for condominiums was $141,700, down only 5 percent from the previous year.
Average Sales Prices Increasing
According to the SEFMLS, the average sales price for residential properties that sold in Miami-Dade County in January actually increased 21.3 percent to $309,773 for single-family homes and decreased 16.7 percent to $223,746 for condominiums.
“These current statistics are very positive news for the South Florida real estate market,” said Oliver Ruiz, RAMB 2010 Residential President. “As the top area in the country for foreign real estate buying activity, Miami is expected to outperform other markets throughout the U.S. International buyers in addition to those taking advantage of the current tax credits continue to play a key role in the improvement of the local market.”
Days on the Market and Inventory Levels
Inventory levels continue to decrease substantially, another indicator that supports the local market’s recovery. The inventory of listings in Miami-Dade County according to the Southeast Florida Multiple Listing Service has dropped more than 42 percent in the last 18 months - from 43,095 to 24,918 – and January 2009 brought a .04 percent decrease in just one month. Nationally, total housing inventory at the end of December declined 0.5 percent from the previous month.
Friday, February 26, 2010
Monday, February 15, 2010
Vacant lots become hot property
TALLAHASSEE, Fla. – Feb. 15, 2010 – Vacant residential lots are looking better and better to real estate investors.
The cost of a finished, ready to build lot, can cost a developer about 25 percent of the finished home price. There are a number of these ready-to-go lots on the market at about half what they actually cost to prepare. Investor groups are snapping them up, figuring that the time will come soon when they will be in demand.
“The country needs 1.2 million new units for the next 10 years just because of population growth,” says Scott Clark, president of American Development Partners, which has bought thousands of vacant lots all over the West. “[U.S. builders] built about 500,000 units in 2009 and 600,000 units in 2008, so there eventually will be pent-up demand. We want to get as many of those finished lots as we can because as demand begins to rise, the need for housing will become painfully obvious. The delta (ratio of change to value of underlying asset) in this investment will be significant.”
Source: Inman News, Steve Bergsman (02/12/2010)
The cost of a finished, ready to build lot, can cost a developer about 25 percent of the finished home price. There are a number of these ready-to-go lots on the market at about half what they actually cost to prepare. Investor groups are snapping them up, figuring that the time will come soon when they will be in demand.
“The country needs 1.2 million new units for the next 10 years just because of population growth,” says Scott Clark, president of American Development Partners, which has bought thousands of vacant lots all over the West. “[U.S. builders] built about 500,000 units in 2009 and 600,000 units in 2008, so there eventually will be pent-up demand. We want to get as many of those finished lots as we can because as demand begins to rise, the need for housing will become painfully obvious. The delta (ratio of change to value of underlying asset) in this investment will be significant.”
Source: Inman News, Steve Bergsman (02/12/2010)
Thursday, February 11, 2010
NAR: 4Q existing-home sales surge in most states
WASHINGTON – Feb. 11, 2010 – Strong gains in existing-home sales were the predominant pattern in most states during the fourth quarter, with many more metro areas seeing prices rise from a year earlier, according to the latest survey by the National Association of Realtors® (NAR).
Sales increased from the third quarter in 48 states and the District of Columbia; 32 states saw double-digit gains. Year-over-year sales were higher in 49 states and D.C.; all but three states had double-digit annual increases.
Total state existing-home sales, including single-family and condo, jumped 13.9 percent to a seasonally adjusted annual rate of 6.03 million in the fourth quarter from 5.29 million in the third quarter, and are 27.2 percent above the 4.74 million-unit level in the fourth quarter of 2008. Distressed property accounted for 32 percent of fourth quarter transactions, down from 37 percent a year earlier.
Lawrence Yun, NAR chief economist, says the first-time homebuyer tax credit was the dominant factor. “The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates,” he says. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices.”
According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage fell to a record low 4.92 percent in the fourth quarter from 5.16 percent in the third quarter; it was 5.86 percent in the fourth quarter of 2008.
In the fourth quarter, 67 out of 151 metropolitan statistical areas reported higher median existing single-family home prices in comparison with the fourth quarter of 2008, including 16 with double-digit increases; one was unchanged and 84 metros had price declines. In the third quarter only 30 MSAs showed annual price increases and 123 areas were down.
The national median existing single-family price was $172,900, which is 4.1 percent below the fourth quarter of 2008; the median is where half sold for more and half sold for less. “This is the smallest price decline in over two years, with the most recent monthly data showing a broad stabilization in home prices,” Yun says.
“Because buyers are taking on long-term fixed rate mortgages, avoiding adjustable-rate products, and trying to stay well within their budgets, the price recovery process appears durable,” Yun says.
NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., says near-term market conditions remain favorable. “Mortgage interest rates are expected to trend up later this year, but right now we have very good conditions with steadying home prices and favorable inventory in most areas, especially in the higher price ranges,” she says. The biggest issue is for repeat buyers who will have to accelerate their buying plans if they want the expanded tax credit. Since you must have a contract in place by the end of April, the best advice is to consult a Realtor® now about qualification criteria and options in your area.”
Repeat buyers do not have to sell their existing home, but all buyers must occupy the property they purchase as a primary residence to qualify for the tax credit. Buyers who have a contract in place by April 30, 2010, have until June 30, 2010, to finalize the transaction to get a credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.
In the condo sector, metro area condominium and cooperative prices – covering changes in 54 metro areas – showed the national median existing-condo price was $177,300 in the fourth quarter, down 4.8 percent from the fourth quarter of 2008. Eleven metros showed increases in the median condo price from a year earlier and 43 areas had declines; in the third quarter only four metros experienced annual price gains.
Regionally, existing-home sales in the Northeast rose 11.1 percent in the fourth quarter to a pace of 1.03 million and are 33.6 percent higher than a year ago. The median existing single-family home price in the Northeast declined 5.6 percent to $234,900 in the fourth quarter from the same quarter in 2008, but with widely varying conditions.
“In the Northeast, markets with lower median prices that have avoided wide swings, such as Buffalo, are generally showing consistent price gains,” Yun says. “Even so, some of the higher cost areas are showing signs of stabilization, such as Nassau-Suffolk, N.Y., and Boston.”
In the Midwest, existing-home sales jumped 14.5 percent in the fourth quarter to a pace of 1.38 million and are 29.9 percent above a year ago. The median existing single-family home price in the Midwest rose 1.1 percent to $141,100 in the fourth quarter from the same period in 2008, with the region accounting for the majority of metro areas experiencing double-digit gains.
Yun says markets with high unemployment rates in Ohio and Michigan experienced large price swings. “Big price gains in many Midwestern areas are due to a more normal range of home sales in contrast with predominately foreclosed sales a year ago,” he says.
In the South, existing-home sales rose 13.8 percent in the fourth quarter to an annual rate of 2.23 million and are 28.2 percent higher than the fourth quarter of 2008. The median existing single-family home price in the South was $153,000 in the fourth quarter, down 2.4 percent from a year earlier.
“Affordable markets in the South that have relatively better local economies are seeing healthy price gains, such as Houston, Oklahoma City and Shreveport, La.,” Yun says.
Existing-home sales in the West jumped 16.2 percent in the fourth quarter to an annual rate of 1.38 million and are 18.2 percent above a year ago. The median existing single-family home price in the West was $227,200 in the fourth quarter, which is 8.9 percent below the fourth quarter of 2008, but with many areas showing notable gains.
“Markets in the West such as San Francisco, San Jose and Denver are showing double-digit price increases, and other markets like San Diego and Anaheim have begun to firm up,” Yun says.
© 2010 Florida Realtors®
Sales increased from the third quarter in 48 states and the District of Columbia; 32 states saw double-digit gains. Year-over-year sales were higher in 49 states and D.C.; all but three states had double-digit annual increases.
Total state existing-home sales, including single-family and condo, jumped 13.9 percent to a seasonally adjusted annual rate of 6.03 million in the fourth quarter from 5.29 million in the third quarter, and are 27.2 percent above the 4.74 million-unit level in the fourth quarter of 2008. Distressed property accounted for 32 percent of fourth quarter transactions, down from 37 percent a year earlier.
Lawrence Yun, NAR chief economist, says the first-time homebuyer tax credit was the dominant factor. “The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates,” he says. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices.”
According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage fell to a record low 4.92 percent in the fourth quarter from 5.16 percent in the third quarter; it was 5.86 percent in the fourth quarter of 2008.
In the fourth quarter, 67 out of 151 metropolitan statistical areas reported higher median existing single-family home prices in comparison with the fourth quarter of 2008, including 16 with double-digit increases; one was unchanged and 84 metros had price declines. In the third quarter only 30 MSAs showed annual price increases and 123 areas were down.
The national median existing single-family price was $172,900, which is 4.1 percent below the fourth quarter of 2008; the median is where half sold for more and half sold for less. “This is the smallest price decline in over two years, with the most recent monthly data showing a broad stabilization in home prices,” Yun says.
“Because buyers are taking on long-term fixed rate mortgages, avoiding adjustable-rate products, and trying to stay well within their budgets, the price recovery process appears durable,” Yun says.
NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., says near-term market conditions remain favorable. “Mortgage interest rates are expected to trend up later this year, but right now we have very good conditions with steadying home prices and favorable inventory in most areas, especially in the higher price ranges,” she says. The biggest issue is for repeat buyers who will have to accelerate their buying plans if they want the expanded tax credit. Since you must have a contract in place by the end of April, the best advice is to consult a Realtor® now about qualification criteria and options in your area.”
Repeat buyers do not have to sell their existing home, but all buyers must occupy the property they purchase as a primary residence to qualify for the tax credit. Buyers who have a contract in place by April 30, 2010, have until June 30, 2010, to finalize the transaction to get a credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.
In the condo sector, metro area condominium and cooperative prices – covering changes in 54 metro areas – showed the national median existing-condo price was $177,300 in the fourth quarter, down 4.8 percent from the fourth quarter of 2008. Eleven metros showed increases in the median condo price from a year earlier and 43 areas had declines; in the third quarter only four metros experienced annual price gains.
Regionally, existing-home sales in the Northeast rose 11.1 percent in the fourth quarter to a pace of 1.03 million and are 33.6 percent higher than a year ago. The median existing single-family home price in the Northeast declined 5.6 percent to $234,900 in the fourth quarter from the same quarter in 2008, but with widely varying conditions.
“In the Northeast, markets with lower median prices that have avoided wide swings, such as Buffalo, are generally showing consistent price gains,” Yun says. “Even so, some of the higher cost areas are showing signs of stabilization, such as Nassau-Suffolk, N.Y., and Boston.”
In the Midwest, existing-home sales jumped 14.5 percent in the fourth quarter to a pace of 1.38 million and are 29.9 percent above a year ago. The median existing single-family home price in the Midwest rose 1.1 percent to $141,100 in the fourth quarter from the same period in 2008, with the region accounting for the majority of metro areas experiencing double-digit gains.
Yun says markets with high unemployment rates in Ohio and Michigan experienced large price swings. “Big price gains in many Midwestern areas are due to a more normal range of home sales in contrast with predominately foreclosed sales a year ago,” he says.
In the South, existing-home sales rose 13.8 percent in the fourth quarter to an annual rate of 2.23 million and are 28.2 percent higher than the fourth quarter of 2008. The median existing single-family home price in the South was $153,000 in the fourth quarter, down 2.4 percent from a year earlier.
“Affordable markets in the South that have relatively better local economies are seeing healthy price gains, such as Houston, Oklahoma City and Shreveport, La.,” Yun says.
Existing-home sales in the West jumped 16.2 percent in the fourth quarter to an annual rate of 1.38 million and are 18.2 percent above a year ago. The median existing single-family home price in the West was $227,200 in the fourth quarter, which is 8.9 percent below the fourth quarter of 2008, but with many areas showing notable gains.
“Markets in the West such as San Francisco, San Jose and Denver are showing double-digit price increases, and other markets like San Diego and Anaheim have begun to firm up,” Yun says.
© 2010 Florida Realtors®
Clients access MLS through iPhone app
KEY WEST, Fla. – Feb. 10, 2010 – Realtor.com offers an iPhone app that allows mobile users to access home listings nearby, thanks, in part, to the iPhone’s built-in GPS. One Florida broker, however, says that he has taken the iPhone application (app) a step further by allowing users to tap into the local MLS.
The National Association of Realtors spent a number of years developing its Virtual Office Website (VOW) (http://www.realtor.org/law_and_policy/doj/nar_doj) policy, based in part on a lawsuit filed against it by the U.S. Department of Justice. The issue raised a number of legal questions as existing MLS rules clashed with emerging technology. Now that websites are engrained in the fabric of daily business, the introduction of an MLS iPhone app represents newer technology, and a new way to access MLS listings.
The Florida broker’s iPhone app is free to download. Once loaded into an iPhone, the broker claims users can review his featured listings and access his website in addition to searching the entire MLS (Multiple Listing Service). Searches can be personalized based on price range, area, number of bedrooms and other criteria, including foreclosures and short sales. Users can save listings and review them later on their personal computer.
The app includes information about local architecture, tourism, travel and relocation. Users can contact the broker directly about all listings by using the app.
© 2010 Florida Realtors®
The National Association of Realtors spent a number of years developing its Virtual Office Website (VOW) (http://www.realtor.org/law_and_policy/doj/nar_doj) policy, based in part on a lawsuit filed against it by the U.S. Department of Justice. The issue raised a number of legal questions as existing MLS rules clashed with emerging technology. Now that websites are engrained in the fabric of daily business, the introduction of an MLS iPhone app represents newer technology, and a new way to access MLS listings.
The Florida broker’s iPhone app is free to download. Once loaded into an iPhone, the broker claims users can review his featured listings and access his website in addition to searching the entire MLS (Multiple Listing Service). Searches can be personalized based on price range, area, number of bedrooms and other criteria, including foreclosures and short sales. Users can save listings and review them later on their personal computer.
The app includes information about local architecture, tourism, travel and relocation. Users can contact the broker directly about all listings by using the app.
© 2010 Florida Realtors®
Tuesday, February 2, 2010
Pending home sales rise in South Florida
Pending home sales rise in South Florida
Pending home sales rose in Miami-Dade and Broward counties during January compared to December, according to data released Tuesday by the Realtor Association of Greater Miami and the Beaches and the Southeast Florida Multiple Listing Service.
In Miami-Dade, pending sales of single-family homes increased 0.81 percent to 3,741. Sales of condominiums rose 3.5 percent to 4,647.
In Broward, pending sales of condominiums rose 9.4 percent to 4,137. Pending sales of single-family homes rose 6.2 percent to 3,310.
A sale is listed as pending when the contract has been signed but the transaction has not yet closed. Increased pending sales are an indication of increased future sales.
``Approximately six months after the South Florida real estate market touched bottom according to most economists, we continue to observe the recovery of the local market,'' Terri Bersach, chairman of the RAMB board said in a news release.
Nationwide, the National Association of Realtors said Tuesday that its seasonally adjusted index of sales agreements rose 1 percent from November to December to a reading of 96.6. That was a little lower than the 97.1 level analysts expected, according to Thomson Reuters.
The index has risen for nine out of the past 10 months as buyers scrambled to take advantage of an $8,000 first-time home buyer tax credit before its scheduled expiration Nov. 30.
Congress extended the tax credit to April 30 and added a $6,500 credit for current homeowners.
Pending home sales rose in Miami-Dade and Broward counties during January compared to December, according to data released Tuesday by the Realtor Association of Greater Miami and the Beaches and the Southeast Florida Multiple Listing Service.
In Miami-Dade, pending sales of single-family homes increased 0.81 percent to 3,741. Sales of condominiums rose 3.5 percent to 4,647.
In Broward, pending sales of condominiums rose 9.4 percent to 4,137. Pending sales of single-family homes rose 6.2 percent to 3,310.
A sale is listed as pending when the contract has been signed but the transaction has not yet closed. Increased pending sales are an indication of increased future sales.
``Approximately six months after the South Florida real estate market touched bottom according to most economists, we continue to observe the recovery of the local market,'' Terri Bersach, chairman of the RAMB board said in a news release.
Nationwide, the National Association of Realtors said Tuesday that its seasonally adjusted index of sales agreements rose 1 percent from November to December to a reading of 96.6. That was a little lower than the 97.1 level analysts expected, according to Thomson Reuters.
The index has risen for nine out of the past 10 months as buyers scrambled to take advantage of an $8,000 first-time home buyer tax credit before its scheduled expiration Nov. 30.
Congress extended the tax credit to April 30 and added a $6,500 credit for current homeowners.
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