Canadian buyers not enough to repel bust

"The South Florida real estate market has exhibited remarkable sensitivity to global trends over the past few years, due in no small part to an unremitting dependence on foreign capital to prop up the sector. A recent dearth of overseas investors might upend the current situation, however—and this is not a contingency that even active Canadian buyers can help with, observers said.

Foreign buyers in Miami have traditionally consisted of South Americans, Europeans, Russians, and Canadians, but new figures from Integra Realty Resources showed that activity from Brazil and Argentina has slowed down lately due to a 42 per cent and 40 per cent (respectively) decline in both countries’ purchasing power since 2014.

Integra officials said that a weakening in the South American segment might trigger a crisis in Miami’s condo market, as this slice represents the lion’s share of foreign real estate investment in the city.

“The depth of the Chinese market, or the European or Canadian market, is not enough to make up for the South American buyer,” Integra senior managing director Anthony Graziano told the Wall Street Journal.

According to research conducted by Miller Smauel Inc., the last quarter of 2015 saw a significant 20 per cent drop in Miami condo transactions on a year-over-year basis. This accompanied a 6.6 per cent decline in average sale price, as well as a 33.3 per cent increase in inventory.

Along with numerous cancellations of pending projects by multiple developers, these recent changes have led several experts to warn that the city’s condo sector is now running headlong into a watershed.

 “The condo market has peaked. Sales velocity has slowed down considerably,” Miami-based real estate development lawyer Neisden Kasdin said."



'via Blog this'

Miami's Condo Real-Estate Bubble Is Bursting | Miami New Times

 "For more than a year, signs have been pointing toward a sharp downturn in Miami's condo market, and developers are positioning themselves for the bubble to burst.

Carlos Rosso, president of condominium development at Related Group, tells the Wall Street Journal that this time last year, his company was selling an astonishing 100 units a week in Miami. This year, it's averaging about 20 per week. Condo transactions in Miami Beach were down about 20 percent in the last quarter of 2015 compared to 2014.

Though the median sale price of condos in Miami-Dade has continued to rise slowly, developers don't expect the trend to continue. More than 7,300 new units are in the pipeline, and developers tell WSJ they're preparing to lower prices and offer more perks to move them. "

Read More at: www.miaminewtimes.com/news/miamis-condos-shift-to-a-buyers-market-but-dont-expect-another-2008-bloodbath-8355802 



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Will the Miami Housing Market Flatline in 2016?

January 14, 2016 | By Brandon Cornet

Home prices in South Florida have risen steadily over the last couple of years, with new construction ramping up across the area. Now, some are worried the Miami housing market could be headed for another crash. The dreaded ‘B’ word — bubble — is being tossed around again, as well.

Some economists have forecast that home prices in the area will remain mostly flat in 2016, after many months of steady growth. Here are some notable real estate trends and predictions for the Miami real estate market in 2016.

Miami Real Estate Market to Crash in ‘Next Few Years’

In an interview with The Washington Post, Miami real estate expert Jack McCabe said that the South Florida housing market could be headed toward another bubble-and-bust cycle,

Read more: http://www.homebuyinginstitute.com/news/forecast-will-miami-housing-market-flatline-714/#ixzz3xJUtURJi

Trying to Launder Money through Luxury Real Estate? The Government's Onto You

The U.S. government is cracking down on money laundering in luxury real estate, thanks in part to the investigative prowess of the New York Times.

The Treasury Department's Financial Crimes Enforcement Network (FinCEN) announced Wednesday it had issued "geographic targeting orders" for Manhattan and Miami-Dade County, Florida, that would compel title insurance companies to report on clients who pay for big real estate purchases — think $3 million for Manhattan and $1 million for Miami — in cash. The new measures will take effect on March 1 and remain in place until Aug. 27; if they unveil as much illicit activity as the Times turned up in its 2015 "Towers of Secrecy" series, the government will beef up nationwide tracking efforts.

"We are seeking to understand the risk that corrupt foreign officials, or transnational criminals, may be using premium U.S. real estate to secretly invest millions in dirty money," FinCEN Director Jennifer Shasky Calvery said in the announcement. "These GTOs will produce valuable data that will assist law enforcement and inform our broader efforts to combat money laundering in the real estate sector."

The main target of the fed's effort? The so-called shell company, which is exactly what it sounds like: a legal business, but in name only; a kind of corporate facade that has no operational activity but is used to shuffle money around.

Not every shell company is a front for illegal activity; many start-ups, for example, find it useful to set up a shell before operations are in full swing. For people looking to stash some of their wealth in an untaxable asset like a building or apartment, however, the establishment of a shell corporation is an attractive option — the investor's name won't appear on the bill of sale, but the corporation's will. Shell companies provide a veil of anonymity; the Times reported that backers can build shell companies on top of shell companies to create a big, confusing onion-like disguise. Little surprise, then, that the Economist has called them "the vehicle of choice for money launderers, bribe givers and takers, sanctions busters, tax evaders and financiers of terrorism."

FinCEN says that title insurance companies are implicated in most every real estate sale closed, meaning they're full of information the government would love to know. When a shell company attempts to make an all-cash purchase, the title insurance company will be obligated to dig up and report the name of that shell's owner to FinCEN, which will then log it in a database — a key resource for law enforcement investigating money launderers. 

According to the Times, almost half of all homes purchased across the U.S. valued at $5 million or more were made through transactions with shell corporations. In its "Towers of Secrecy" series, the newspaper profiled a number of shady characters funneling money into U.S. real estate, all of whom occupied one of the most prominent luxury buildings in the New York real estate landscape: the Time Warner building. 

There was the "Mysterious Malaysian Financier," the hard-partying Jho Low, whose shell company financed the purchase and rapid resale of a few multi-million dollar homes to the stepson of Malaysia's Prime Minister, Najib Razak. The Times reported that Low conducted many of his business transactions on behalf of his "friends," and it was his friendly connection to the Malaysian ruling family that looked particularly suspicious, as if he might be involved in laundering the money of a corrupt head of state through the sale and resale of a few pricey New York City and Los Angeles properties.

There were "the Russian Minister and Friends," the "Mexican Power Brokers" and the "Besieged Indian Builder," all with similar stories. Over the course of its investigation, the Times found 200 shell companies with stakes in the Time Warner Center over the past 10 years, and 16 apartment owners who had been investigated by governments the world over, all of whom used shell companies to mask astronomical real estate purchases without anyone batting an eyelash. 

Why? Because money flowing into U.S. markets is good. "We like the money," Raymond Baker, president of the Washington-based nonprofit Global Financial Integrity, told the Times. "It's that simple. We like the money that comes into our accounts, and we are not nearly as judgmental about it as we should be."

What does Global Financial Integrity do? According to the Times, it "tracks the illicit flow of money." 

Which is why the newspaper's investigation was so important: It blew the lid off of staggering sums siphoned into the U.S. by a litany of unsavory characters and drew public attention to the practice in a way the government couldn't ignore. 

Claire Lampen January 13, 2016

2015 Florida Housing Market Predictions - Housing Predictor

 

One area of Florida that forecasters expect to cool off as far as home values is the Miami housing market. Miami is second only to Jacksonville in size. In the past year home values increased by 5.1%, but forecasters see this rate leveling off in the next year. Miami boasts some of the most expensive real estate in the Florida housing market. The median home value in Miami is $284,300 and the median rent price is a staggering $2,350. Median list prices come in at $409,000 and sale prices at $324,000. This differential in pricing is an indicator that the South Florida market has become a buyers market. According to RealtyTrac, South Florida flips were down 25% at the beginning of this year. Flippers can no longer make large profits on homes and because of this the market is turning towards the buyer. The percentage of delinquent on mortgage comes in at 12.6% and 20.4% of Miami homeowners are underwater on their mortgage. Miami is a great buy if you can afford it, but don’t look for a large return on your investment anytime soon.

2015 Florida Housing Market Predictions - Housing Predictor

luxury condos

 

Miami’s luxury residential resale market diverged in the first quarter of the year as single-family home sales increased from last year’s first quarter and sales of existing condos dropped.

The Miami Association of Realtors, classifying luxury sales as those above $1 million, reported that the number of luxury single-family home sales increased 2.3 percent in the first quarter, compared to last year’s first quarter, while luxury condo resale's dropped 3.6 percent.

New condo construction cut into sales of existing condos, but resale prices appear buoyant. The Miami Association of Realtors reported that the median condo resale price was $1.7 million in the first quarter, up 13 percent from $1.5 million in the same period last year.

luxury condos | Miami Association of Realtors |

Miami Cash Buyers Twice National Average - WORLD PROPERTY JOURNAL Global News Center

 

Miami Real Estate Continues Selling Fast, Close to List Price
Miami single-family homes and condominiums continue to sell close to asking price, reflecting a strong consumer demand. The median number of days on the market for single-family homes remained unchanged year over year at 47 days. The average percent of original list price received was 95 percent, an increase of 0.7 percent from a year earlier.
The median number of days on the market for condominiums sold in May 2015 was 57 days, an increase of 7.5 percent from 53 days in May 2014. The average percent of original list price received was 94.1 percent, a 0.2 percent decrease.

Miami Cash Buyers Twice National Average - WORLD PROPERTY JOURNAL Global News Center

Miami Cash Buyers Twice National Average - WORLD PROPERTY JOURNAL Global News Center

 

Miami's Cash Buyers Represent More than Twice the National Average
Cash deals represented 49.5 percent of Miami's total closed sales in May 2015, more than double the national average. Just 24 percent of all national housing sales are made in cash, according to NAR. Cash transactions represented 56 percent of total Miami deals in May 2014. Miami's high percentage of cash sales continues to reflect South Florida's historic ability to attract international home buyers, who tend to purchase properties in all cash.
Condominiums comprise a large portion of Miami's cash purchases as 63.9 percent of condo closings were made in cash in May compared to 33.2 percent of single-family home sales.

Miami Cash Buyers Twice National Average - WORLD PROPERTY JOURNAL Global News Center

Miami Residential Sales Prices Continue Upward Trend in March

 

Sales Rise for Single-family Homes, Condos

Single-family home transactions — which set an all-time Miami annual record in 2014 — increased 10 percent year-over-year in March 2015, from 1,129 to 1,242. Existing condominium sales — which posted the second best year in Miami history last year— rose 4.2 percent from 1,413 in March of last year to 1,472 last month. Combined, Miami-Dade County residential real estate sales increased 6.8 percent to 2,714 last month compared to 2,542 a year ago.

“Miami continues to attract international and domestic home buyers looking to live in a global city with world-class amenities and a diversified economy,” said Christopher Zoller, a 27-year Miami-based Realtor and the 2015 Residential President of the MIAMI Association of REALTORS. “Buyer demand in Miami properties is leading to more sales and higher sale prices.”

Single-family home prices, which again increased in March, remain at affordable 2004 levels despite more than four years of consistent year-over-year increases. Condo prices also increased in March 2015, marking 45 months of growth in the last 46 months. The median sale price for single-family homes increased 10.6 percent, up to $260,000 in March 2015 from $235,000 in March 2014. The average sale price for single-family homes increased 3.2 percent to $473,677 last month from $459,102 during the same time period last year.

The median sale price for condominiums surged 7.5 percent in March to $215,000 from $200,000 a year ago. The average sale price for condos increased 5.8 percent to $398,994 from $377,290 in March 2014.

Miami Real Estate Continues Selling Fast, Close to List Price

Miami single-family homes and condominiums continue to sell close to asking price, reflecting a strong consumer demand. The median number of days on the market for single-family homes sold in March 2015 was 54 days, an increase of 14.9 percent compared to the same period in 2014. The average percent of original list price received was 94.6 percent, down a negligible 0.3 percent from a year earlier.

The median number of days on the market for condominiums sold in March 2015 was 60 days, an increase of 1.7 percent compared to the same period in 2014. The average percent of original list price received was 93.5 percent, a 0.7 percent decrease.

Miami Residential Sales Prices Continue Upward Trend in March

Houses staying on the market longer in Miami | Miami Herald Miami Herald

 

Houses are staying on the market longer in the Miami area than in most other big cities around the country, according to a report by the online real estate company Trulia.

The likely culprits? High prices and a glut of new inventory, said Trulia chief economist Ralph McLaughlin.

“Miami is in this weird stalemate situation where sellers probably don’t want to reduce the price of their units because they don’t want to lose money, but middle-class buyers aren’t able to afford them,” McLaughlin said. “So what we’ll see is homes sitting on the market longer until either sellers decide to lower their sales price or the economy continues to improve and buyers can start to afford them.”

About 65 percent of Miami-Dade County homes listed on Trulia’s website in February were still on the market two months later, the company found.

Related

Of the 100 largest housing markets the company analyzed, only nine cities had a greater percentage of homes on the market after two months. They included Albany, New York; Knoxville, Tennessee; Pittsburgh, Pennsylvania; and Birmingham, Alabama.

The analysis looked at both new sales and resales of single-family homes, condominiums and town houses.

Miami also saw one of the biggest year-over-year jumps in the percentage of homes staying on the market. In April 2014, 56 percent of homes listed on Trulia had been on the market for two months. Only Austin and Atlanta saw bigger annual increases.

An unusual combination of factors is producing a tough market for both buyers and sellers: Miami is one of the least affordable housing markets in the U.S. at a time when new development is happening across the county, which has about 18,000 new units under construction, according to a Census estimate.

“This combination of new supply and waning demand because of affordability would lead to a situation where homes stay on the market longer,” McLaughlin said.

Four Miami-Dade Communities Rank as Top Places to Invest in Florida Real Estate

 

By Christopher Zoller

A budding technological industry, a nationally renowned art scene, and several recent multibillion-dollar retail ventures have played key roles in turning Miami into one of the world’s most attractive and dynamic global cities. Miami’s median single-family home prices – which have registered four years of consistent growth and sit at $245,000 according to the latest MIAMI Association of REALTORS® (MIAMI) report – remain affordable compared to other similar international cities.

The region’s long-term housing appreciation helped four Miami communities – Doral, Bal Harbour, Homestead, and Miami Lakes – finish as the top-four places to invest in real estate in the entire state of Florida, according to a new study from consumer finance site NerdWallet. Miami communities comprised seven of NerdWallet’s top-10 places to invest, and 12 Miami-Dade County locations made the top-25. The San Francisco-based NerdWallet analyzed 227 Florida cities using U.S. Census and Florida Department of Revenue data. Municipalities were scored using Census vacancy rates, affordability, and 10-year home value appreciations.

Doral topped the list because of its relative affordability, low unemployment rate (4.4 percent or more than a full percentage point lower than the statewide rate), and strong population growth, NerdWallet said. The Miami-Dade County city has increased its population by 14 percent, or 6,000, from 2010-13.

Bal Harbour in Miami-Dade finished second mostly because of its speedy residential sales, NerdWallet said. According to NerdWallet’s 0-10 scale for speed of sale, Bal Harbour scored 8.66. Bal Harbour’s percentage of housing value has increased 62.06 percent in the past 10 years, according to NerdWallet.

Homestead in Miami-Dade is the third-best place to invest in real estate in Florida, NerdWallet said. About 56 percent of Homestead’s homes have increased in value over the past 10 years. Homestead prices averaged $79.42 per square foot, the most affordable in NerdWallet’s study.

Miami Lakes was named the fourth-best place to invest in Florida because of it price appreciation the past 10 years, NerdWallet said. About 57 percent of the city’s homes have increased in value the last decade while vacancies have dropped by 3.6 percent. Buyers are paying an average of $152 per square foot for a Miami Lakes home.

NerdWallet’s Florida rankings: 1. Doral, 2. Bal Harbour, 3. Homestead, 4. Miami Lakes, 5. Marianna, 6. Hialeah Gardens, 7. Aventura, 8. Pinecrest, 9. Cape Coral, 10. Winter Garden, 11. Cooper City, 12. Callahan, 13. Miramar, 14. Key Biscayne, 15. Hialeah, 16. Cutler Bay, 17. Lauderdale-by-the-Sea, 18. Surfside, 19. Freeport, 20. Wellington, 21. Weston, 22. Coral Gables, 23. Palm Springs, 24. Parkland, 25. North Miami Beach.

For more information, contact the MIAMI Association of REALTORS® 2015 Residential President Christopher Zoller at zoller.c@ewm.com The MIAMI Association of REALTORS was chartered by the National Association of Realtors in 1920 and is celebrating 95 years of service to Realtors, the buying and selling public, and the communities in South Florida.  Comprised of five organizations, the Residential Association, the Realtors Commercial Alliance, the Broward County Board of Governors, the YPN Council and the award-winning International Council, it represents more than 35,000 real estate professionals in all aspects of real estate sales, marketing, and brokerage.  It is the largest local Realtor association in the U.S., and has official partnerships with more than 125 international organizations worldwide. 

In battle for buyers, developers sell over-the-top luxury | Miami Herald Miami Herald

 

Real estate is war — and for residential developers in Miami, luxury is the weapon of choice.

Today’s condo towers aren’t just offering the high ceilings, rooftop pools and European appliances of building cycles past.

Instead, their amenities are the stuff of whimsy, fantasy and incredible wealth: Cigar lounges, dog walkers and monumental sculptures by Jeff Koons. Glass between the kitchen and living room that turns opaque when you entertain and want to shield your guests from the unseemly commotion of cooking. An elevator for your Bentley.

The trend kicked off as developers coming out of the crash realized one thing: To avoid getting burned in the next bust, they needed to demand that buyers put down more money before closing. To justify the 50 percent deposits that became standard, the new projects would need eye-catching, over-the-top amenities that would make the extra investment seem worth it to the ultra-rich.

Read complete story at;   In battle for buyers, developers sell over-the-top luxury | Miami Herald Miami Herald

Miami Housing Market Singled Out as Top Performer in January

 

Miami, South Florida Housing Market Singled Out as Top Performer

April 3, 2015 | By Brandon Cornett |

The latest update to the Case-Shiller Home Price Index was published earlier this week, and the Denver and Miami housing markets were singled out as top performers. Prices in those two metro areas rose by more than 8% during the last 12-month reporting period, more than any other city tracked by the index.

According to the report, “Denver and Miami reported the highest year-over-year gains, as [home] prices increased by 8.4% and 8.3%, respectively, over the last 12 months.”

Nationally, prices rose by around 4.5% in January 2015, compared to the same month last year. So these two markets have clearly outpaced the nation as a whole. (The report released on March 31 contained data through the end of January, due to a two-month reporting lag.)

Miami Housing Market Singled Out as Top Performer in January

Family home sales in Miami reach all time annual record, latest index shows | North America | News

 

Miami home sales increased again in December with single family home sales setting an all-time annual record in 2014 and median sales prices continuing to increase at a more moderate rate, the latest data shows.

Year-end sales of single family home sales in 2014 set an all-time record, increasing 4.8% and while condominium sales were the second highest in history, they decreased 4.3% compared to the previous year. 

Combined sales for the year decreased a negligible 0.4%, the data from the Miami Association of Realtors shows.

‘The Miami real estate market again reflected great demand in 2014. More single family homes were sold in Miami-Dade County than ever in history, while condominium sales marked their second strongest year ever despite competition from new construction supply,’ said Christopher Zoller, MAR residential president.

Single family home prices, which again increased in December year on year, remain at affordable 2004 levels despite more than three years of consistent year on year increases. Condo prices also increased in December, marking 42 months of growth in the last 43 months.

The median sale price for single family homes increased 3.6% to $255,000 from $246,180 in December 2013. The average sale price for single family homes decreased 1.7% from $414,560 in December 2013 to $393,340 last month.

Compared to December 2013, the median sale price for condominiums increased 9.6% to $195,000 from $175,000 a year prior. The average sale price for condominiums increased 19.9% to $409,707 from $341,687 in December 2013.

The report also shows 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 December was 45 days, an increase of 9.8% from December 2013. The average percent of original list price received was 94.7%, down 1.7% from a year earlier.

The median number of days on the market for condominiums sold in December was 57 days, an increase of 9.6% compared to the same period in 2013. The average sale price was 93.8% of the asking price, a decrease of 3.3%.

The median days on market for properties sold in 2014 were 45 days for single family homes, an increase of 9.8% and 57 days for condominiums, an increase of 23.9%. The average sales price was 95% of the asking price, a decrease of 0.6% for single family homes and 94.7%, a decrease of 1.7%, for condos.

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.

Read Complete Article at; Family home sales in Miami reach all time annual record, latest index shows | North America | News

As More Consumer Shift Online, Real Estate Follows

Thanks to the Internet a lot has changed over the last few years, most notably the real estate industry. Today, more than ninety percent of all home buyers initiate their home search without a traditional commissioned real estate agent by using on line sites that assimilate listings from real-estate mutable listing services nationwide.

Gone are the days of big firms with nationwide advertising and scores of agents controlling the market! The internet has leveled the playing field for agents and independent brokers nationwide.

In my years as a real estate professional, I have seen how the industry has evolved and both seller and consumer attitudes have changed. Sellers and consumers are better informed today than ever before and the expectation is set higher for providing excellent services that are cost-effective and efficient.

The focus of SDR Properties of Dade County Inc. is to achieve these goals for our clients. This is procured through our commitment to understanding the needs and requirements for each individual transaction

Whether it is a luxury residence overlooking Biscayne Bay or an office tower in Coconut Grove all aspects of the transaction is met personally and with digression.

Having dealt with both foreign and domestic clients I am committed to a fiduciary relationship that protects and serves.

Fluent in English and Spanish I am adept at locating, negotiating and executing successful results.