The Real Estate Mango

Archive for January, 2010

Miami Herald Says Real Estate In South Florida Will Improve In 2010

I don’t always agree with the opinions of  the writers of the Miami Herald but after having seen the graphs in my office meeting, this morning, I agree.

We are seeing a steady decline in inventories and an uptick in buyers in the marketplace.

Why is this?  Prices, for one.  Prices have been lower than they have been in ten years and people who are really interested in buying can see that.  Condos and houses that were beyond reach are now very affordable. Government programs, like first time buyer tax credit, are very popular and many are buying to take advantage of this offer.

Townhouses in Aventura that were selling for $500 to $575 in 2005 are now selling for $350 to $375.  Condos in Aventura that were selling for $350k in 2005 are selling for $150.

The Miami Herald predicts a 1.5% increase in sales for 2010 which may not sound like much but before this we were seeing a minus 2.7 % loss each year.  Anything on the plus side is a win.

Latin American economies are doing well.  If tourism from Latin America picks up and from this influx, we can see more sales of properties, that will be a very good outcome.

The only dark note is the forthcoming foreclosures that have not come into the market, yet.  When they do, prices will dip, again but sales will be stimulated by the good prices and once this inventory is depleted, we can see some stabilization  in the market place.

The big message here, is that if you every thought of buying, now is the time.  Nothing stays the same.  The good deals will not last!  Waiting is not an option.  Look through this site for all the properties in Dade, Broward and Palm Beach counties and call me to go out shopping!!!

Online Foreclosure AUCTIONS In Florida For The First Time

To allieviate the backload of foreclosures on the court calendars, Foreclosure Auctions, will start on line!

This new system will replace the traditional courthouse procedure and will save Dade Couinty 750k in costs as well as reduce the tremendous backlog of foreclosed properties.

This system will handle 4x the amount of foreclosures per week and potential buyers can bid from anywhere in the world.  This is the most innovative procedure ever seen in Dade County and if it works as expected, inventories should decline sharply and with less supply, the demand will stabilize the market and eventually bring up prices.

For more details on how to get started, please call or write to me. 

10 Day Limit On Short Sales May Give A Jolt To Aventura Real Estate

Almost 830,000 homeowners in Florida owe more on their mortgages than their home is worth.  The Treasury has a new regulation that requires banks to make decisions about short sales withing 10 days of receiving a fully executed contract.

This new rule can be good if there is only one lien on the property and if all the paperwork is available as soon as the contract comes in.  

Many weeks ago, I submitted a contract on a duplex in North Miami Beach and did not  hear from the bank, in any way, for three months.  At the end of that time, I was told that the bank was sold and that the new bank, Bank of America, would have to start the review all over again.  Needless to say, the buyers were fed up and  backed out.  This is a story I have heard time and again.

The new rule does not apply to FNMA or FREDDIE MAC.  They are working on their own rules.

The banks have abused the short sale concept.  They are really holding on to offers while they hope the market will turn around and they can get more later.  The real outcome that happens is that more properties linger on the market, dragging prices down even further.

Short Sales exist to avoid foreclosures but they exist on paper, only.  Buyers are so wary of short sales, that many refuse to look at the properties.  Even when they are advertised as Approved, it doesn’t mean much.  The bank doesn’t have to abide by this. 

Many realtors don’t know how to accurately and correctly draw up a short sale.  All this is very frustrating for the potential buyer. 

Banks are waiting while the market is still falling and the prices that they refuse today will be even lower tomorrow. 

We will watch and wait to see if this new rule has any teeth and if the banks follow the new guidelines. 

For more information.  Contact me.