Want to compare the real estate market in your area to living on the beach in Florida? We have a tool that will help you with the comparison. Check this link that compares Clearwater Beach, Florida to Jersey City, NJ.

Want to compare the real estate market in your area to living on the beach in Florida?  We have a tool that will help you with the comparison.  Check this link that compares Clearwater Beach, Florida to Jersey City, NJ. or visit our website ClearwaterBeachFLRealty.com and create your own comparison to where you live.

 

Homes for Sale Declining Across South Florida

Homes For Sale Declining Across South Florida

FORT LAUDERDALE, Fla. – Oct. 5, 2011 – The number of homes and condominiums for sale has steadily declined across South Florida in 2011, frustrating buyers and leading to bidding wars in some cases, real estate agents say.

An October update from Chip Rowand of the Keyes Co. in Weston shows that Broward County has 13,480 single-family homes and condos for sale. In Palm Beach County, there are 15,782 homes and condos on the market.

Those figures are less than half of what they were a few years ago, Rowand said.

“We’re seeing multiple showings and multiple offers if the homes are priced right,” he said. “We need more inventory.”

Analysts expect that’ll happen soon enough as a new wave of foreclosures hits the market.

The foreclosure pipeline slowed considerably last year as banks investigated possible paperwork errors as part of the “robo-signer” controversy. Now lenders are starting to process foreclosures more quickly.

Last week, research firm CoreLogic reported that the so-called shadow inventory of homes for sale declined to 1.6 million in July from 1.9 million a year ago.

Shadow inventory is a hidden supply of homes that are likely to come on the market as a result of foreclosures.

“The steady improvement in the shadow inventory is a positive development for the housing market,” Mark Fleming, chief economist for CoreLogic, said in a statement. “However, continued price declines, high levels of (underwater mortgages) and a sluggish labor market will keep the shadow supply elevated for an extended period of time.”

© 2011 Sun Sentinel (Fort Lauderdale, Fla.), Paul Owers. Distributed by MCT Information Services

 

Florida’s Existing Home, Condo Sales Up in 2Q 2011

Florida’s Existing Home, Condo Sales Up in 2Q 2011

ORLANDO, Fla. – Aug. 10, 2011 – Florida’s existing home and existing condo sales experienced an upswing in the second quarter of 2011 compared to the same period a year earlier, according to the latest housing statistics from Florida Realtors®.  Existing home sales rose 1 percent in 2Q 2011 with a total of 52,421 homes sold statewide; during the same period the year before, a total of 51,973 homes changed hands according to Florida Realtors.  Statewide sales of existing condos in the second quarter rose 14 percent compared to the year-ago sales figure.

Statewide home and condo sales in the second quarter also increased over 1Q 2011’s sales figures, Florida Realtors’ records show. For 2Q 2011, statewide sales of existing homes rose 17.7 percent over the previous quarter’s activity; statewide existing condo sales increased 8.1 percent over the 1Q 2011 level.

The statewide existing-home median sales price was $134,600 for the three-month period; in 2Q 2010, it was $141,500 for a decrease of 5 percent. However, the 2Q 2011 statewide existing-home median sales price was 8.9 percent higher than the 1Q 2011 figure. The median is a typical market price where half the homes sold for more, half for less.

Looking at Florida’s housing sector in the second quarter of 2011, Dr. Sean Snaith, director of the University of Central Florida’s Institute for Economic Competitiveness, noted positive signs for a strengthening recovery. “Florida Realtors second quarter housing data shows that momentum in sales of both single family homes and condominiums continues to build, while median sales prices have also increased from first quarter to the second,” Snaith said.

“The fate of the housing market in Florida is tightly bound to that of the labor market,” he said. “They are like economic conjoined twins – improvement in one will invariably help the other. More jobs and lower unemployment will slow foreclosures as well as build the pool of potential buyers; both of these will work to help support prices. As single-family home and condo prices stabilize, the wealth effect of this will make owners more willing to spend, which in turn could boost hiring.”

Snaith added, “This may sound like a classic ‘chicken and the egg’ scenario, but as far as Florida’s economy is concerned, it doesn’t matter which comes first.”

In the year-to-year quarterly comparison for existing condo sales, 25,263 units sold statewide in the second quarter compared to 22,137 units in 2Q 2010 for a 14 percent gain. The statewide existing-condo median sales price was $94,700 in the second quarter; a year earlier, it was $96,400 for a 2 percent decrease. However, the 2Q 2011 statewide existing-condo median sales price was 17.3 percent higher than the 1Q 2011 figure.

Low mortgage rates were another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 4.66 percent in 2Q 2011; one year earlier, it averaged 4.91 percent.

© 2011 Florida Realtors®

 

Offshore Investors Snapping up Fla. Real Estate

Offshore Investors Snapping up Fla. Real Estate

 

MIAMI (AP) – Aug. 8, 2011 – Offshore investors are flocking to Florida’s distressed real estate prices as major companies with ties to Hong Kong, Spain, Argentina and Malaysia are snapping up properties sensing the local market has bottomed.

International companies can park their investment and position themselves for the next development cycle, said Tere Blanca, president and chief executive officer of Miami-based Blanca Commercial Real Estate.

“Acquiring prime properties at discount prices in the height of the market was not achievable. Whomever has deep liquidity and can be nimble and act when opportunities arise can acquire properties at what we consider to be solid pricing,” he said, according to the Daily Business Review.

Stephan Gietl of Austria and his partner Fernando Levy-Hara, of Argentina, have purchased 307 South Florida condo units for $40 million since 2009. The duo has sold most of the units, mainly to international investors. Levy-Hara says the units yield between 5 and 6 percent profit per year after maintenance fees and property taxes.

“With the potential appreciation, if you’re buying at half the price of the bubble, you have the potential to go up 60 to 70 percent in the next five years,” he said.

As Americans worry about the economy and debt ceiling, international investors still perceive the U.S. as “the most reliable country in the world,” said Andrew Hellinger, chief executive of Coral Gables-based Hellinger & Penabad.

“We are a country where you can place your money for investment and know it’s safe.”

South Florida’s most notable recent deals have ties to investors with connections to major international companies.

Swire Properties, part of Hong Kong-based real estate and airline owner Swire Pacific, bought 2.15 acres in Miami at $14 million, along with the $13.1 million acquisition of Eastern Bank’s headquarters.

In May, Malaysia-based Genting Group paid $236 million for the Miami Herald’s headquarters. Genting, which also owns 50 percent of Norwegian Cruise Lines, plans to build nearly 7 million square feet of hotel, convention and restaurant space. Genting executives cited Florida’s growing population, budding Miami tourism and a likely nonstop flight from Asia to Miami International Airport as motivating the deal.

Agave Holdings, with ties to the owner of Jose Cuervo tequila, paid First Bank Puerto Rico $30.55 million for a project in Coral Gables.

Espacio USA, the American arm of Spanish real estate company Inmobiliaria Espacio, is about to close on its second office building. The company paid $31.52 million for another office building last year, with renovations running more than $1 million.

Brazilians have led the Miami condo market resurgence, accounting for 9 percent of unit purchases among international buyers of Miami single-family homes and condos, according to the Miami Association of Realtors.

“The feeling in Brazil is certain aspects of their real estate and economy make U.S. real property a relative bargain,” said Richard Goldstein, of Bilzin Sumberg. “In other countries like Venezuela, the currency is not as much of a factor. Political instability is a factor; they want a safe haven for their money.”
Copyright © 2011 The Associated Press. Information from: Daily Business Review, http://www.dailybusinessreview.com

 

Fewer Homes For Sale, Inventories Fall Sharply

Fewer Homes For Sale, Inventories Fall Sharply

WASHINGTON – Aug. 5, 2011 – High inventories of homes for sale have plagued many markets, but in a recent analysis of metro areas, inventories were found to be shrinking sharply during the second quarter, The Wall Street Journal reports.

About 2.34 million homes were listed for sale on the multiple-listing service by the end of June, the lowest level for that time of year since at least 2007, according to Realtor.com. What’s more, some inventory levels even reached their lowest levels since the housing crisis began five years ago, which has prompted some markets to even say their facing a shortage of homes on the market.

While a drop in inventories can often signal more demand – and ultimately a boost to home prices – some analysts aren’t so sure this signals a complete turnaround for the real estate market yet.

“While sales are picking up in some cities, analysts say the sharp decline in inventory also reflects the slow pace at which banks are processing foreclosures,” The Wall Street Journal reports. (The number of homes in foreclosure – a backlog of 2.1 million – is near a high.) Also, some sellers are taking their homes off the market due to low offers and waiting to put it back on the market.

In its analysis, The Wall Street Journal found that of the 28 major metro areas evaluated, inventory levels had dropped in all 28 – except for three. What’s more, they found that inventories had dropped by double digits in 16 of those markets during the second quarter when compared to a year ago. For example, inventories dropped in Miami by 43 percent from a year ago; 30 percent in Washington, D.C., and more than 20 percent in cities like Charlotte, N.C., Seattle, and San Francisco.

“We’re in a shortage situation,” Brett Barry, a real estate professional in Phoenix, said. Phoenix has a four-month supply of homes listed for sale at its current pace. “It’s a very artificial, ‘Twilight Zone’ kind of feeling, because we know there’s a lot of homes out there.”

Source: “Home Listings Fall But Woes Persist,” The Wall Street Journal (Aug. 3, 2011)

© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688

 

Housing Expected To Improve Over Last Year

Housing Expected To Improve Over Last Year

WASHINGTON – July 19, 2011 – The U.S. housing market, aided by a recovering rental sector, is unlikely to experience a “double-dip” setback, Freddie Mac said Monday.

In its U.S. Economic and Housing Market Outlook for July, the Federal Home Loan Mortgage Corp. said housing likely will follow the performance of the overall economy for the rest of 2011. Additionally, home sales are projected to be above last year’s numbers by 3- to 5 percent.

The report also indicated that despite record levels of homebuyer affordability and historically low mortgage rates, households were concerned about their financial futures and were holding off making major purchases, notably homes.

The rental housing market showed the clearest signs of a turnaround with the apartment property price index showing a 15.2 percent gain over the year through the first quarter of 2011.

“Following June’s labor market report, households are naturally concerned about their financial futures, which is being reflected in the housing market,” said Frank Nothaft, Freddie Mac’s vice president and chief economist. “Yet, the single-family market will likely improve over the balance of 2011, in keeping with positive [gross domestic product] forecasts for the United States.”

Copyright © 2011 United Press International Inc.

 

Foreign Buyers Help Housing Market

Foreign Buyers Help Housing Market

MIAMI – July 6, 2011 – Foreign buyers are helping to stoke home sales in U.S. vacation hot spots decimated by the real estate crash, especially in southern Florida.

For the 12 months ending in March, 31 percent of Florida’s home sales were to foreign buyers, up from 10 percent in 2007, according to a survey by the National Association of Realtors.

In Arizona, 6 percent of sales in the same period were to foreigners. That was down from 11 percent last year but still up from 5 percent in 2007, the data show.

Foreign buyers are being enticed by low U.S. home prices, down 30 percent nationwide since peaking in 2006, and the weakened dollar, which makes their money go further. Since the start of 2006, the Canadian dollar has soared 18 percent against the U.S. dollar, while the euro has gained 22 percent, says data tracker Oanda.

U.S. home prices, meanwhile, have fallen far more than the national average in some places, down 55 percent from their peaks in Miami-Fort Lauderdale and Phoenix, and 36 percent in Los Angeles, says Zillow.com. Those are three of the most popular areas for foreigners searching for real estate on Trulia’s website, that company says.

Sales are so brisk in the Miami region now that more houses and condominiums could sell this year than in 2005, the peak year, says Ronald Shuffield, president of Esslinger-Wooten-Maxwell Realtors in Coral Gables, Fla.

“International buyers have been the fuel for the Miami recovery,” Shuffield says.

About 40 percent of buyers are international vs. less than 35 percent before the bust, he estimates. Many buyers are South American investors snapping up condominiums to rent out, says Peter Zalewski of market researcher Condo Vultures.

In the Phoenix region, there are at least 20 percent more foreigners in the market now than usual, says Don Hammer, manager of Realty Executives in Paradise Valley, Ariz.

One of those shoppers is retired hedge fund manager Peter Duerr of Austria. He’s planning to buy a home in Scottsdale, having sold one there in 2005. “The U.S. is a great buy right now,” Duerr says.

The largest share of foreign buyers, 23 percent, come from Canada, the Realtors’ survey found. China followed at 9 percent. The survey includes foreigners living abroad, those in the U.S. with long-term visas and new immigrants.

© Copyright 2011 USA TODAY, a division of Gannett Co. Inc., Julie Schmit.

 

Market’s Slump Not Too Troubling

Market’s Slump Not Too Troubling

 NEW YORK – June 24, 2011 – Is the sinking stock market telegraphing another recession?

The question is relevant now for two key reasons. The U.S. economy is suffering through a soft patch. And the stock market is a forward-looking financial-forecasting machine with a reputation for being able to predict economic events well in advance of them actually happening.

But it’s important to point out the market’s predictive ability, despite its penchant for discounting future events, is not perfect. The late Nobel Prize winning economist Paul Samuelson once quipped that the stock market had predicted nine of the last four recessions.

So what does history tell us?

In short, don’t fret the small stuff. It is rare for mild stock market corrections of 10 percent or more to foreshadow recessions, according to a study by Bank of America Merrill Lynch chief investment strategist David Bianco. Since 1928, of the 81 pullbacks of 10 percent or more that occurred when the economy was still in growth mode, only 13, or 16 percent, led to recessions within six months. And the average gain for the Standard & Poor’s 500-stock index after corrections that did not lead to recessions was 7.4 percent.

A more sinister warning signal from the stock market is when the price declines are steeper, Bianco found. Stock losses ranging from 16 percent to 21 percent “tend to predict recessions with a 1-in-2 chance,” he says. More benign corrections of 11 percent to 15 percent are less predictive, with the odds widening to 1-in-5.

The S&P 500 has fallen as much as 7.2 percent since its 2011 peak on April 29. After Thursday’s drop it was 5.9 percent below that peak.

“What’s important is that from a price decline standpoint, the market is not sending a strong signal of recession,” Bianco says.

The market has also sent “false signals” of recession in the past, adds Sam Stovall, chief investment strategist at S&P. It’s “too soon to tell” if it is signaling a recession this time.

Stovall says that since 1945 there have been 54 stock drops of 5 percent to 10 percent. “If a minor decline was all we needed to signal an impending recession, we should have had 54 recessions since World War II, rather than the 12 we actually did have,” he says. “The recessionary warning signals look a lot clearer after the fact.”

And timing the market is still tough. In the past nine recessions since 1953, but not including the Great Recession that ended in June 2009, stocks were higher at the end of the recession than at the start, Vanguard says. “It is notoriously hard to sell before a drop and buy back before a rise,” the mutual fund giant said in a report. “A common mistake people make is to sell after a fall and then miss out on a subsequent recovery.”

Copyright © 2011 USA TODAY, a division of Gannett Co. Inc., Adam Shell.

 

Top Picks for International Buyers

Top Picks for International Buyers

NEW YORK – June 17, 2011 – International buyers are taking advantage of real estate bargains in the United States. Last year, international buyers reportedly spent $41 billion on purchasing homes in the U.S.

So which cities do they most have their eye on?

Ten out of the 24 most popular American cities for international buyers are in Florida, according to Trulia. Last year, Europeans, Canadians and Brazilians reportedly spent about $13 billion on homes in Florida alone.

Here are the most popular Florida cities for international buyers, according to Trulia, in order of demand:

1. Cape Coral, Fla.

2. Miami

3. Fort Lauderdale, Fla.

4. Naples, Fla.

5. Fort Myers, Fla.

6. Miami Beach, Fla.

7. Kissimmee, Fla.

8. Orlando, Fla.

9. Jacksonville, Fla.

10. Tampa, Fla.

© 2011 Florida Realtors®

 

Housing Shortage Likely Coming, Report Says

Housing shortage likely coming, report says

CAMBRIDGE, Mass. – June 13, 2011 – Within the next decade, 16 million new housing units will be needed to meet population growth and shifting demands, according to Harvard University’s Joint Center for Housing Studies in its latest annual “State of the Nation’s Housing” report.

That means household growth, which has dropped drastically in recent years, will need to greatly reverse its trend to meet the forecasted spike in demand. From 2007-2010, household growth averaged about 500,000 per year – less than half the 1.2 million annual pace averaged prior from 2000-2007.

To absorb the current rate of foreclosed and distressed homes plaguing most markets, a more normal rate of household formation is critical, according to the report. However, household growth partially has stalled as young adults have delayed homeownership and immigration has slowed.

As such, in recent years, builders have drastically cut production of new homes.

“With inventories of new homes at historic lows, a turnaround in demand could quickly result in tighter markets,” the report notes. “Over the longer term, the number of younger households is set to rise sharply, supporting growth in the population that fuels growth in both new renters and first-time buyers. The path of the economy and evolution of the mortgage market will determine when and if this increased demand materializes.”

The report predicts a need for greater housing units for several reasons. For example, the report projects demand for 1 million new homes a year is needed to meet population growth in the coming decade. The report also predicts a surge in smaller homes, estimating that 3.8 million baby boomers will be looking to downsize their homes within the next decade. Also immigration growth, the need to replace existing homes, and demand for second homes will contribute to rising demand for housing units, the report notes. Therefore, researchers conclude at least 16 million new housing units will be needed over the next decade.

To download the report, visit Harvard University’s Joint Center for Housing Studies website.

Source: “Harvard: Real Estate Recovery Hinges on Return of Demand,” Inman News (June 6, 2011)

© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688