Hot Real Estate News: Florida's Pre-Construction Condo Market Is Back In Business | Virtual-Strategy Magazine

 

It's been a few years but the Florida condo pre-construction industry is back in business in much of the Sunshine State. After years of stalled projects and almost nothing new while developers and banks liquidated the 2008-12 condo glut, the green shoots of a number of planned projects and even construction cranes have reappeared in some parts of Florida. Pre-construction is attractive to buyers and investors who are usually getting in at the lowest possible price, the price is locked in, and there will be a couple years of appreciation before the building is complete. Developers frequently increase prices as much as 25 percent between the project's launch and completion.

The condo business in Miami has been strong for several years with READ MORE

Hot Real Estate News: Florida's Pre-Construction Condo Market Is Back In Business | Virtual-Strategy Magazine

Sales in Miami soared last month due to increased demand | North America | News

 

Sales in Miami soared last month due to increased demand

Friday, 21 November 2014

Sales in the Miami real estate market, one of the most popular US locations with overseas buyers, soared in October, exceeding record activity recorded in 2013.

Single family home sales increased by 13.6% compared to October 2013 condominium sales increased 6.5% while combined, residential real estate sales increased 9.5% compared to a year ago.

‘Miami continues to experience population growth, interest from foreign and domestic second home buyers, and economic expansion,’ said Liza Mendez, chairman of the Board of the Miami Association of Realtors.

‘The Miami real estate market continues to strengthen due to demand for local properties, as evidenced by sales that exceed record activity in 2013,’she added.

Overall the data shows that single family home prices, which again increased in October, remain at affordable 2004 levels despite 35 months of consistent year on year growth. Condo prices also increased in October, marking 40 months of growth in the last 41months. Condo prices declined in August for the first time in more than three years but rebounded in September.

The median sale price for single family homes increased 9.1% to $240,000 but the average sale price decreased 6.6% to $393,515 last month.

Compared to October 2013, the median sale price for condominiums increased by 8.8% to $185,000 and the average sale price for condominiums increased 22.3% to $362,657.

The association monthly report points out that Miami properties continue to sell rapidly and at nearly asking price, reflecting strong demand. The median number of days on the market for single family homes sold in October was 43 days, an increase of 7.5% from October 2013. The average percent of original list price received was 95.3%, down a negligible 1% from a year earlier.

The median number of days on the market for condominiums sold in October was 58 days, an increase of 31.8% compared to the same period in 2013. The average sales price was 93.7% of the asking price, a decrease of 3.9%.
Cash sales in Miami continue to decline as more financing becomes available. Still, access to mortgage loans for condominium buyers remains limited, impeding further market strengthening.

Some 55.8% of total closed sales in October were all cash transactions, compared to 61.7% in October 2013. Cash sales in Miami are still more than double the national figure of 27%. All cash sales accounted for 40.8% of single family home and 67.8% of condominium closings compared to a year earlier.

Since nearly 90% of foreign buyers in Florida purchase properties all cash, this continues to reflect the much stronger presence of international buyers in the Miami real estate market.

After three years of record sales activity that resulted in an inventory shortage, seller confidence continues to result in more properties being listed for sale in Miami. But new listings are now increasing by narrower margins, according to Francisco Angulo, residential president of the Miami Association of Realtors.

‘Seller confidence is resulting in greater inventory becoming available in the Miami real estate market. But strong home sales in Miami continue to yield rapid inventory absorption, resulting in rising prices even if at a more moderate pace,’ he added.

Active listings at the end of October increased 19.5% from 14,893 in 2013 to 17,801 last month but remain 60% below levels in 2008 when sales bottomed. Inventory of single family homes increased 15.6% last month while condominium inventory increased 21.9%.

At the current sales pace, there is a 5.8 month supply of single family homes, an increase of 10.4%, and an 8.2 month supply of condominiums, up from 6.5 months in October 2013, an increase of 26%. A balanced market between buyers and sellers offers between six and nine months supply of inventory.

New listings of single-family homes increased 6.8% while new condominium listings increased 3%.

Sales in Miami soared last month due to increased demand | North America | News

Miami Leads Nation in Home Flipping

 

Miami Leads Nation in Home Flipping

According to RealtyTrac's Q3 2014 U.S. Home Flipping Report, 26,947 single family homes were flipped nationwide in the third quarter of 2014, representing 4.0 percent of all U.S. single family home sales. This was down from 4.6 percent in the second quarter of 2014 and down from 5.6 percent in the third quarter of 2013 to the lowest level since the second quarter of 2009. Flipping is defined as when a home is purchased and subsequently sold again within 12 months
Investors averaged a gross profit of $75,990 per flip on homes flipped in the third quarter of 2014, a 36 percent gross return on the initial investment -- not including rehab costs and other expenses. The average gross return was up from 35 percent in the second quarter but down from 37 percent a year ago.

Miami Leads Nation in Home Flipping - WORLD PROPERTY JOURNAL Global News Center

“Happy Veterans Day”

“Thanksgiving” is a day when we pause to give thanks for what we have.

“Veterans Day” is a day when we pause to give thanks to the people who fought for the things we have!

Buyer beware: Condo ‘reservation’ prices, details can change | The Miami Herald

This is a great article! Good to know reading

Buyer beware: Condo ‘reservation’ prices, details can change | The Miami Herald

Contracts to buy US homes rise in hopeful sign

By JOSH BOAK The Associated Press

WASHINGTON -- More Americans signed contracts to buy homes in July, a sign that buying has improved as mortgage rates have slipped, the number of listings has risen and the rate of price increases has slowed.

The National Association of Realtors said Thursday that its seasonally adjusted pending home sales index rose 3.3 percent to 105.9 last month. Still, the index remains 2.1 percent below its level a year ago.

Ian Shepherdson, chief economist at Pantheon Macroeconomics, called the increase "positive" but stressed that home buying was unlikely to strengthen significantly > MORE WASHINGTON: Contracts to buy US homes rise in hopeful sign - Business Breaking News - MiamiHerald.com

Cash-Buyers of Miami Properties Dip in Q2, Home Sales Still Robust - WORLD PROPERTY CHANNEL Global News Center

 

According to the Miami Association of Realtors, the Miami real estate market continued to experience rising prices in the second quarter of 2014 due to strong demand, particularly for single-family homes priced between $200,000 and $400,000.

Median and Average Sales Prices Continue to Rise
In the second quarter, the median sales price for homes in Miami-Dade County was $245,000, an increase of 8.9 percent compared to last year.  The median sales price for condominiums rose 5.6 percent to $190,000 in the second quarter compared to a year earlier. Second quarter price increases mark ten (10) consecutive quarters of growth for both single-family homes and condominiums.

"The Miami real estate market continues to reflect strength and vitality fueled by demand from both foreign and domestic buyers," said 2014 Chairman of the Board of the Miami Association of Realtors Liza Mendez.  "While supply is growing and creating more balance between buyers and sellers, inventory in certain price points and market segments remains tight, particularly for single-family homes.  Financing for condominiums is still difficult to obtain, a fact that is hurting sales for this property type."

Compared to last year, the average sales prices for single-family homes and condominiums increased 3.5 percent to $460,018 and 6.7 percent to $375,941, respectively.
Nationally, the median sales price of existing single-family homes was $212,400 in the second quarter, up 4.4 percent from the second quarter of 2013.  The national median sales price for condominiums was $211,100, a 5.9 percent increase over the previous year.

The statewide median sales price for single-family existing homes in the second quarter was $180,000, up 5.3 percent from the same quarter a year ago. The median sales price for condominiums in Florida was up 10.1 percent compared to the same quarter last year at $142,000.

Sales Continue to Rise for Properties in Low to Mid-Price Ranges
There were 8,139 homes and condos sold in Miami-Dade County during the second quarter of 2014, a negligible decrease of 0.9 percent compared to the second quarter of 2013, when there was record sales activity.  Sales of single-family homes increased 4.9 percent to 3,650, while condominium sales decreased 5.2 percent to 8,214 compared with the same period in 2013.

Sales of single-family homes priced between $200,000 and $400,000 surged 68 percent in the second quarter of 2014 compared to the same period in 2013.  Sales of condominiums priced between $100,000 and $400,000 increased 35 percent in the second quarter.

"As the Miami real estate market continues to normalize and perform in a healthy manner, there are increased opportunities for all types of buyers," said 2014 Miami Association of Realtors Residential President Francisco Angulo.  "While inventory is still limited depending on the area and price range, buyers generally have more to choose from and prices remain at affordable 2003 levels."

Nationally, total existing-home sales, including single-family and condos, increased 5.8 percent to a seasonally adjusted annual rate of 4.87 million in the second quarter from 4.60 million in the first quarter, but were 4.5 percent below the 5.10 million pace during the second quarter of 2013, according to the National Association of Realtors.

Statewide closed sales of existing single-family homes totaled 67,579 in the second quarter, up 7.3 percent compared to the year-ago figure, according to the latest housing data release by Florida Realtors.  Closed sales of condominiums totaled 30,918, down 3.4 percent compared to 2013.

Home Inventory Moving Rapidly Despite More New Listings
The Miami Association's initiatives to increase inventory and focus on assisting members to get more listings has proven successful along with some additional distressed properties coming on the market.  The fact that sales remain at historically strong levels while inventory is growing points to seller confidence.  Sellers are listing properties for sale because they have confidence in the market.
Home and condominium listings also increased in the second quarter but by narrower margins. There were 8,635 new single-family home listings during the second quarter, a growth of 4.0 percent relative to the same period last year. New condominium listings increased 3.8 percent from 6,025 in the second quarter of 2013 to 6,255 this year.

Second quarter active listings in Miami-Dade County totaled 17,089, representing an increase of 29.9 percent.  This reflects the success of the MIAMI campaign to achieve a more balanced market between buyers and sellers.  At the current sales pace, current inventory represents 5.5 months of inventory for single-family homes and 7.8 for condominiums.  Compared to the second quarter of 2013, months supply of inventory for single-family homes and condominiums increased 13.5 percent and 33.6 percent respectively.  A balanced market between buyers and sellers offers between six and nine months supply of inventory.

The median duration of single-family home listings during the second quarter was 43 days compared to 40 days during the same period last year, a slight increase of 7.5 percent. Similarly, the median days on the market for condominium listings were 56 days compared to 45 last year, an increase of 24.4 percent.

Percentage of Cash Sales Declines
In the second quarter, 57.6 percent of closed sales were all cash compared to 62.6 percent a year earlier.  All cash sales were 43.9 percent of single-family home closings and 68.8 percent of all condominium sales.  Since nearly 90 percent of foreign buyers pay cash, this reflects Miami's position as a top market for foreign buyers.  Miami has a significant percentage of international buyers, generating many more cash transactions than the national average.

Today's Florida Real Estate Market – Boom or Bust? - Press Release - Digital Journal

Florida real estate has always been different than most states - booms and busts, foreclosures and fortunes. On one hand, tiny concrete-block homes with small yards and no garage that originally sold in the 1950s in Key Biscayne for about $10,000 are now selling for well over $1 million. However, Orlando golf resort condos near Disney World that sold like hotcakes in 2006 for close to $1 million are now lucky to fetch $300,000.

Just like politics, real estate is "local" and the home buying situation varies quite a bit in Florida. Are prices going up or down? Is now a good time to buy a home? Are there any condo bust deals left? Prices are very expensive in some areas but a bargain in other parts of the state. Home selling inventory can be high in one city, but very limited in the next town just a few miles down the road.

Most of Florida seems to be in another boom period. According to the National Association of Realtors, Florida's median home sale prices have increased for 31 consecutive months. Florida real estate attracts more international buyers that anywhere else in the United States, accounting for 23 percent of all U.S. foreign buyers, and is also attractive to investors, vacation home buyers and baby boomers who are reaching retirement age. According to the Sarasota Herald-Tribune, the price discounts that were widespread from 2009 to 2012 in Southwest Florida are almost gone. The newspaper points to rising demand and fewer listings causing the price increases.

South Florida is especially hot. Based on the latest Case-Shiller Home Price Index report,    Continue reading>>> Today's Florida Real Estate Market – Boom or Bust? - Press Release - Digital Journal

Downtown Miami Condo Prices Soar 75%

By Jennifer LeClaire | Miami

Prices for resale condo units in Downtown Miami from the last boom have increased 75% over the past two years.

MIAMI—Would you believe Downtown Miami condo prices are nearing pre-recession levels? It’s true, according to a new study from the Miami Downtown Development Authority (DDA).

Prices for resale condo units in Downtown Miami from the last boom have increased 75% over the past two years, rising from an average of $230 per square foot to $400 per square foot. The DDA credits most of appreciation to value recovery stemming from market stabilization and the launch of new projects since 2011.

“Downtown Miami has long been viewed as a business hub, but we are  quickly gaining a reputation for our lifestyle offerings, everything from the Adrienne Arsht Center for the Performing Arts and Pérez Art Museum Miami, to a growing number of high-end hotels and restaurants and the addition of luxury retail,” says Alyce Robertson, executive director of the Miami DDA. “Overseas buyers eyeing U.S. real estate are finding that downtown Miami has all the amenities of a major cosmopolitan city, along with competitive pricing and easy access to Latin America and Europe.”

All told, there were 8,700 condo units for sale or under development through June 2014. Most of this inventory is expected to deliver through 2017, which would indicate the market is in the early stages of mid-cycle development. Second quarter 2014 pre-construction pricing ranges from $550 to $675 per square foot for current unsold inventory.

“Strong buyer demand, appreciating prices, and growing appeal among renters continue to fuel the downtown Miami condo market,” says Anthony M. Graziano, senior managing director for Integra Realty Resources in Miami, whose firm conducted the study. “While we expect price increases to slow with time, downtown is well positioned to absorb the new condo inventory currently under development should present-day buyer trends hold.”

Next: HOW RENTALS ARE BENEFITTING

Downtown Miami Condo Prices Soar 75% - Daily News Article - GlobeSt.com

Miami Home Sales Remain Strong Compared to Record Levels; Prices Continue to Increase at More Moderate Pace - Press Release - Digital Journal

 

Miami real estate sales, particularly for single-family homes, continue to reflect strong demand compared to record sales activity over the last three years, according to the 30,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system.

In June, residential real estate sales in Miami-Dade County increased 2.0 percent to 2,723 compared to 2,669 in June of last year. Single-family home sales increased 9.5 percent relative to June 2013, from 1,169 to 1,280. Compared to June 2013, condominium sales declined 3.8 percent from 1,500 the previous year to 1,443 last month.

"We continue to see strong sales activity in Miami compared to the three previous record sales years," said 2014 Chairman of the Board of the MIAMI Association of REALTORS Liza Mendez. "Activity is mostly declining for transactions in the lowest price points and for short sales. Increased inventory is generating more moderate price growth."

Median Sale Prices Continue to Rise
Median sale prices again increased for both single-family homes and condominiums in June. Prices remain at affordable 2004 levels despite Continued >>> Miami Home Sales Remain Strong Compared to Record Levels; Prices Continue to Increase at More Moderate Pace - Press Release - Digital Journal

Unlocking Trapped Real Estate Value - Daily News Article - GlobeSt.com

 

Unlocking Trapped Real Estate Value

Mesa Real Estate assembled the property of energy portfolios over a period of two and a half years.

MIAMI—If you want an alternate view on sale-leasebacks, ask the attorneys that work out the details. GlobeSt.com caught up with Joseph M. Marger, a partner at the law firm Reed Smith, to get his thoughts on the state of the sale-leaseback market in part one of this two-part interview. Be sure to come back this afternoon, when Marger will discuss when sale-leasebacks work best and the challenge involved in getting these deals done.

GlobeSt.com: Did strategies for sale-lease back change through the downturn? Are they changing in the recovery?  

Marger: Although capital was tight, companies were not expanding so demand was somewhat flat. At the same time, more players entered the sale-leaseback lending market in search of better returns, creating more competition for quality transactions. Sale-leaseback finance companies had to be more creative to unlock value for potential tenants.

GlobeSt.com: For corporations, is monetizing real estate through sale-leasebacks still a useful option? How can it unlock value?

Marger: Yes. Now that corporate borrowing rates are moving up, sale-leaseback financing will be a more viable option. The sale-leaseback allows companies to unlock 100% of the trapped value of their real estate as opposed to the lower LTVs of a mortgage financing. It can provide cash for expansion or operations without tying up a company’s line of credit.       

GlobeSt.com: Can you give me an example of how a sale-lease back unlocked value for a corporate real estate owner? 

Marger: We’ve done numerous transactions where the sale-leaseback was a key component of a larger acquisition, or was the best way to finance an expansion of a plant or key facility, or was combined with TI financing to refurbish an aging headquarters. Additionally, as mentioned, the company can utilize the rent from the lease for more favorable accounting treatment.

Be sure to check out GlobeSt.com's NEW PropertyALERT which provides owners and brokers a dynamic new marketing platform in which to showcase properties and initiate deals. This economical marketing tool will create increased awareness for your property for a minimal investment.

Unlocking Trapped Real Estate Value - Daily News Article - GlobeSt.com

Facebook Calculator Drives Auto Loans for Chicago Credit Union - American Banker Article

Facebook Calculator Drives Auto Loans for Chicago Credit Union

by Mary Wisniewski
JUL 17, 2014 4:20pm ET

As financial institutions struggle to find revenue-generating social media strategies, a Chicago credit union has achieved a surprising level of success from a simple tool: a loan calculator app on its Facebook page. Calcubot, the name of the calculator tool that connects to one running on its website, has helped generate nearly $1 million of auto loans for Alliant Credit Union since its November debut.

The tool, which lets people determine their monthly loan payments and optionally share them with friends and family, drove 478 prospects to Alliant's online auto loan application within the first four months, when the credit union actively promoted the tool on its website's homepage and through posts written on its social media channels. The credit union plans to prominently feature Calcubot again in coming months to grow sales leads.

"We are looking to increase engagement with social media and to drive more traffic to loan applications," says George Balchev, manager of digital channels for Alliant, an $8.1 billion-asset financial institution.

Alliant Credit Union, which has more than 270,000 members, created its Facebook page in 2009 and now counts more than 13,000 page likes.

Calcubot, created by a Berkeley, Calif.- based company called Shastic, estimates loan payments once a person enters in information like the selling price and down payment. It directs those interested to websites where they can apply for a loan.

Research shows the majority of U.S. car buyers use Facebook in their research.

Read Complete Story >>Facebook Calculator Drives Auto Loans for Chicago Credit Union - American Banker Article

Miami Dade announces ordinance to eliminate unregulated animal breeding | News - Home

 

MIAMI DADE, Fla. -

On Wednesday, Miami-Dade County commissioners voted unanimously for an ordinance that will eliminate unregulated animal breeding.

"Let me be clear," Miami Dade County Commission Vice Chair Lynda Bell states, "We’re not making it illegal to breed animals. We are establishing new standards of care. We are protecting female dogs and cats by allowing them to be bred no more than once every 12 months."

In Miami, breeding animals for sale has been an unregulated industry.

Often times, abandoned cats and dogs are forced to live in inhumane and unsanitary conditions in breeding facilities. Many of those animals are sold to pet shops and eventually develop health problems. It becomes a never-ending cycle triggered by roadside breeders that only increases the pet population.

Under this new ordinance, anyone who sells a dog or a cat, regardless the number, will be considered a pet dealer and will have to register with the county.

Many pet organizations have expressed approval of this ordinance. However, the American Kennel Club believes that these new provisions alienates breeders and limits choices of potential pet owners.

The ordinance will become final in September if it receives one additional commission vote.

Miami Dade announces ordinance to eliminate unregulated animal breeding | News - Home

Average Rate on 30-Year Mortgages Dips This Week :: EDGE on the Net

 

Average U.S. mortgage rates are near historically low levels.
Mortgage company Freddie Mac said Thursday that the nationwide average rate for a 30-year loan dipped to 4.12 percent, down from 4.14 last week. The average for the 15-year mortgage, which had taken a big dip the previous week, was unchanged this week at 3.22 percent.
Rates on one-year adjustable mortgages averaged 2.38 percent this week, down from 2.40 percent last week.
Mortgage rates are slightly lower than they were at the same time last year, having fallen recently after climbing last summer when the Federal Reserve began talking about trimming back the monthly bond purchases it has been using to keep long-term rates low.
At 4.12 percent, the rate on 30-year mortgages is down from 4.53 percent at the beginning of this year. Rates have fallen modestly this year as Fed officials have sent strong signals that while they are trimming their monthly bond purchases, they are in no rush to start boosting a key short-term rate the Fed controls.
To calculate average mortgage rate, Freddie Mac surveys lenders across the country between Monday and Wednesday each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year mortgage was 0.5 point this week, the same as last week. The fee for a 15-year loan, popular in refinancing, was also 0.5 point, unchanged from last week.
The fee on a one-year adjustable rate mortgage was 0.4 point, unchanged from last week.
The average rate on a five-year adjustable rate mortgage was 2.98 percent, unchanged from last week. The fee was 0.4 point, up from 0.3 point last week.

Average Rate on 30-Year Mortgages Dips This Week :: EDGE on the Net

Miami’s Condo Boom REDUX

By Martha Brannigan The Miami Herald
A Metromover passes by Reach, a condominium under construction at Brickell City Centre.

mbrannigan@MiamiHerald.com

The grand opening of the pre-construction sales center for the SLS Lux Brickell condominium drew hundreds of real estate agents on a sultry June evening. With the imposing bronze sculpture Male Torso by Fernando Botero looming above, Related Group chairman and CEO Jorge Pérez made the rounds as the crowd tipped stemmed glasses of bubbly and nibbled hors d’oeuvres. Pérez was in high spirits. And why not? SLS Lux Brickell already had reservations from buyers to purchase $200 million in units — half the project’s total sales — before the formal launch of the sales center June 11, according to Related, which is jointly developing the prime site with real estate baron W. Allen Morris, who owns the land. “Miami is the sweetheart of the world,” said Pérez, who is leading a new boom in condominium construction six years after the last one ended in a spectacular crash. Back then, thousands of buyers reneged on contracts for newly built Miami condos amid nosediving values. Now, he said, “Everyone wants a place here.” Along with the reliable stream of investors from Brazil, Argentina, Venezuela and Mexico, Miami keeps attracting buyers from Russia, England, France and Canada, among other places. All eyes are on the Chinese to see if they will join the fray in any significant way.  Continued>>> Miami’s condo boom redux - Business Monday - MiamiHerald.com