The Real Estate Mango

Archive for December, 2008

The Facts About Refinancing

Wells Fargo announed last week that interest rates are at their lowest since 1971.  This is an historic moment in the history of mortgage rates.  They dropped last week to 5.19% fom 5.47%.

Want to refinance?  Check this out:

• If your closing costs are $3000 and your payment goes from $1200 a month to $1075 a month, it would take three years to break even. So it’s only worth it, if you plan on living in that house longer than that.
• The difference between a loan modification and a refinance is that the loan modification is only for the borrower who is behind in his payments. The refinance is a totally new loan with a length of 15 or 30 years.
• If your existing loan has a prepayment penalty, can you still refinance?  Yes, if the lender will waive that penalty.  Ask before you start any application.

Have any questions, email me or comment below.

What is really selling in Aventura?

I thought everyone would be interested in what is really selling, since October, in the Aventura real estate market and here are some interesting facts:

1. Number of active condo units                     995     
2. Number of units closed                                22
3. Average list price                                      $316
4. Average sale price                                     $279
5. Average days on the market                         251
6. Typical unit sold                                         2 bedrooms and 2 baths

I noticed that when the property was priced right it sold in less than one week.  When it was not, it took more than a year, sometimes two years.

The big message in all this is, PRICE IS EVERYTHING!

If you are interested in getting an opinion of value of your condo or home, please email me or comment on this blog. I look forward to hearing from you.

Are Real Estate Prices Still Dropping in Aventura?

Every day, I speak with someone who will ask me:

“When will the market go back to what it was before the bubble burst”?

or

“Should I wait until I can get the price that properties in my development were selling for in 2004″?

The answer is…

“We are not going back.  We are going ahead with the trajectory that we now are on.” The condos and townhouses and single family homes are selling at today’s prices, which means the price that a buyer is willing to spend at this particular time.  Everytime a foreclosure sells at a low price, it brings down all the prices in that building or subdisiion.  There are many foreclosures, now and many more coming down the pipe.

Prices are still on the way DOWN.  When they bottom out, we will be on the bottom for some time before they start to climb, again.

If you are thinking about selling at this time, look at the sales in that past three months (life comes at you fast) see how your home compares.

When Selling Your Home Consider…

• Make your home look as wonderful, as possible.
• Paint if it needs it, rearrange furniture to make it more appealing, take away personal items.
• Hire a home stager, if need be and then when you put it on the market, give it the smartest price, not the highest price.

Let me hear from you.  Tell me your particular situation with your property.  Leave a comment below on this post or email me and I will be glad to help.

Good News for Renters

There has been a real problem, lately, with renting that beautiful condo or house and then have the property go into foreclosure, and there you are, no place to live.

Not any more.  Fannie Mae (the Federal National Mortgage Association) is going to renew leases or create new leases with tenants already in the foreclosed properties so they are not thrown out when the property goes into foreclosure.

I read in the New York Times today, that this will be a major program to help ease all the unsettling problems of the real estate industry.

This is good news, today and I appreciate it’s ramifications.  What do you think.  Will it help you to decide to rent a condo, this coming year?  Let me hear from you and tell me what other questions you have in this volatile market.

Beauty…alas…beauty –Aventura Mall

I couldn’t wait to tell you about a new and luxurious spa at the Aventura Mall.  All kinds of wonderful treatments in a most beautiful setting…right near Bloomingdales…. Sleekmedspa Aventura Mall.  There are so many new events coming up this year in Aventura and as I hear about them, I will pass it on.  Meanwhile, I am heading out to the spa.

Fountainbleau Hotel … Better…than…ever!!

It wouldn’t be Miami Beach without the Fountainbleau Hotel.  I actually went there on my honeymoon, many moons ago.  Now after multimillion dollar facelift it will be a gorgeous, luxury hotel beyond any luxury hotel in Miami Beach.  The New York Times says the Fountainbleau has all the newest and most exciting features, pools, rooms, restaurants and is ready to lure tourists from all over the world.

It’s great to go there, even if you live here.  Live in luxury, spend the weekend.

New Hotel Coming To Aventura

Just what Aventura needs, a NEW HOTEL, and it is being build in a wonderful location N.E. 185 Street, east of Biscayne Boulevard, near Loehmans Plaza, restaurants, and shopping, close to Wm Lehman Causeway.

The new Hotel is called Aloft, 8 stories, 215 rooms with 3500 sq. feet of space on the first floor for retail stores.  It is slated for completion in November 2009.

Aventura Has Lowest Tax Rate

Another reason why is a great to live in Aventura.  Not only does this “city of excellence” have beautiful streets, green lush landscaping everywhere, parks for people, parks for dogs, and a fabulous world class golf course, it also has the LOWEST TAX RATE in Miami Dade County.

By adopting last year’s tax rate of 1.725%, most residents with a homestead exemption will see a reduction in their City’s taxes.

THe best part about this news is that the city will still maintain the service levels and programs that residents and businesses currenty enjoy

Market Information

The news for the month of October has not been encouraging for sellers.

In the single family home market, ten homes with an average price of $829k were on the market and there was only one sale.  The average price per square foot for this sale was $261.  There were no sales during July, August or September.

The condo market is more deeply affected by the recession in Aventura.  There were 1033 condos for sale in October, 40 were sold and the average days on the market were 165 up from 130 the month before.  Sales were 93% ofthe asking price and the average price sold was $306K

The important lesson to be learned from these statistics is that properties must be priced right when they first go on the market.  The lowest price you can ask will get the attention of the market and it is wise to come out with that best price as soon as you go on the market then start too high and lower it as the months pass by.

On the other hand, this market should be encouraging for buyers.  Interest rates are down to 5.5 for a 30 year fixed and with so much inventory on the market, offers will be well received.

Art Basel is a Success!!

In a year when everyone said that nothing would sell, Art Basel, the exciting art festival, held yearly in Miami Beach, was so beautiful and dazzling that sales were much better than expected.

Art Basel has proven to be a wonderful, cultural event for Miami Beach.  Tourists arrange their vacations around these exhibits and this is one of the most important attractions in South Florida, drawing people from around the world. New and varied styles filled the Miami Beach Convention Center. Some of the most astounding installations are seen at Art Basel.

Another wonderful fabulous reason for living here!!