The Real Estate Mango

Archive for the 'Market Trends' Category

Short Sales Drive You Crazy? Help Is On The Way…HAFA is coming to a bank near you..April 5

Due to the urginf of the National Association of Realtors (NAR), the Treasury Department is going to imrove the short sales process.

So, if you are trying to sell your house because it is worth less than your mortgage, or if you are trying to buy a property that is in this position…on April 5, new rules will make both of these desires EASIER>>>

HAFA which means Home Affordable Foreclosure Alternatives Program will help in the following ways:

• Standard procedures for documents and deadlines
• Provides incentives : $1500 for borrower relocation assistance, $1000 for servicers to cover administrative costs, up to $3000 in short sales proceeds to be distributed to subordinate lien holders
• Program requires deadlines for SHORT SALES….withing 3 business days of receiving an executed purchase offer, the borrower (or agent) must submit a completed Request for Approval of Short Sale to the servicer (bank)
• WITHIN 10 BUSINESS DAYS after the bank receives the RASS and all required attachments, the bank must APPROVE or DENY the request and advise the borrower.

We will see much faster action and more transparancy on Short Sales which have been a bain on our existance.  Banks will have to make quick decisions so we can move on the sale of properties before they are foreclosed.

Both buyers and sellers should welcome this new development.  Call me for further information.  Call me if you want to sell your home or want to buy a great deal.

 

 

 

Beautiful, Great Price, Townhouse in Luxurious Golden Pointe, Aventura $390K

Golden Pointe is a great development at the tip of the Waterways Harbor.  It is bound on two sides by water and consists of only 78 townhomes.  It is an exceptionally exclusive area, so quiet, serene and really lovely.

It has been six years since Golden Pointe has offered a home at this price.  This is a truly great buy!!!

The home has 1900 square feet, a large front courtyard, a one car garage, and a balcony and a patio, three bedrooms, two and a half baths.

Being Offered aat $390,000

Golden Pointe is the only development in the Waterways that has the exclusive right to use the gorgeous amenities at the world class spa at The Point Of Aventura, an adjacent property including tennis.

Please  call me today to see this home.  Lee Heuer  305 607 1943 

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Modifications Can Have Major Perils….Read small print before signing….

Under the Home Affordable Modification Program called HAMP some very dangerous events can occur.

The banks have the ability to modify a loan with a three month trial period, during which time, the interest rate is adjusted to a low rate and is calculated on a fixed 30 year basis.   So far, so good…..then the banks say if you do well, make all the payments on time during the trial period, they will make the loan permanent.

EXCEPT…when you read the small print, you will find that you have waived important notification rights.  The bank can decide to auction the house during this period without notifying the owner.  This is a major problem in this program!

There have been 759,000 loan modifications begun  and only 31,382 have been converted to permanent new loans.

The homeowners see this loan modification program as a social assistance program.  NOT TRUE!!  The banks see it as a stall until they decide whether it is more profitable for them to sell the house rather than perpetuate the relationship with the current owner. 

Banks see the situation from a different vantage point.  The longer the owner makes a full payment, even if he is in pain, the more time passes until the bank can sell for a higher price in the marketplace when they foreclose.  Banks know that real estate is cyclical.  Prices go up in time.  Owners don’t always have that luxury.  They need help quickly expecially since unemployment changes their ability to pay.

Before you accept loan modification terms, read everything, ask every important question.  Until this program is revisited by the government to correct its’ pitfalls, you have to look out for your own interests.

Please call me anytime for more information.

Aventura Inventory Of Single Family Homes and Condos Is Steadily Declining…this is Good News!!

This is the latest graph showing the real decline in inventory in Aventura.  In November of 2008 there were 1890 properties for sale in Aventura.  As of October of 2009 there are 1404 properties for sale and in the month of October there were 110 sales as compared to November of 2008 when there were only 68 properties sold during that month.

 

This is progress and due to more  realistic pricing by sellers and a general interest in the market place in real estate.  However, if banks would be more inclined to lend the situation would be far better.  It takes a longer time than usual to close a loan.  More documents are required and greater qualifications to borrow are in place.  This adds up to long delays and in  some cases denials.  Even though mortgage rates are incredibly low, what difference does it make when a buyer cannot get a loan.

 

Also, the rates of foreclosures (also the banks fault because they refuse to modify loans or accomodate short sales in a timely manner) are still very high.  Every foreclosure, affects the prices in the neighbor where they occur.  More must be done by banks in coordination with the government to avoid the huge glut of foreclosures that are waiting to get on the market.

 

So..before we can see real change, the banks have to play ball.  Banks are the most integral part of the housing industry. Meanwhile, we are still enjoying the uptick. 

Prices are lowest they have been in 10 years.  It is the best time buy in a generation!!  Interest rates are low!    Interest Rates are 4.63% today.  See my chart, below!

 Call me today, to start looking for that home of your dreams. 

Sales Improved Turnberry On The Green In Aventura And Gave It Life

 

Please notice that in July of 2008, there were 73 units for sale in the beautiful Turnberry on the Green high rise in Aventura.  Many of these sales were foreclosures and short sales.

In the past year, 50% of these apartments were sold and now there are only 35 units on the market and the prices have improved, as well.

A year ago, it took 251 days for an apartment in Turnberry on the Green to sell, now it takes 177 days to sell.  These are averages.  Naturally, the better priced units sell quicker than overpriced ones.

The price per square foot has declined.   In 2008, the average price per square foot was $228 and now it is $215.  This reflects the change in prices throughout Dade County. 

However, as the market stabilizes and inventories shrink, prices should start their climb upward.

It is a good time to buy and a good time to sell.  Check out my property  search.  Call me to obtain an opinion of value for your home, as well.

 

 

 

Europeans Again Looking And Buying In The South Florida Real Estate Market

Just when we thought we would never hear a foreign voice, again, Norwegians, Brits, and Canadians, and Germans can be heard in the streets of  South Florida cities.

Our prices are very attractive.   It has been years since it has been so affordable to live here.  The Europeans always liked our warm, sunny climate and this week the British pound was worth $1.58 and the Euro was worth $1.45.  The economies domestically and abroad have improved,which has made the U.S. lenders offer mortgages to foreign nationals, again.  Bank of America is offering mortgages to foreign investors much more readily than a few months ago, although the documentation is more strict.

Another reason for more sales is the EB-5 Visa Program.  This visa was created by the Immigration Act of 1990 and it allows foreigners to obtain a green card by making a business investment in the United States.

This is a good time to put your home or condo on the market because there is a much greater chance of  selling now than it has been for the past two years.  This is really good news!  If you are thinking of selling, please call me for an in depth review of your property and advice on pricing.

 

Miami Dade County Shows A Significant Drop of 35.4% In Inventory In The Last 15 Months!!

This Is A Big Change!   It shows that people are buying because the prices reflect an understanding by the sellers of what the public will pay.  During this period properties sold increased by 24.8%.  Prices have met the market.

A decline in inventory of properties for sale combined with an increase in properties sold will force fresh inventory to fill the gap.

This is a better time to sell than it has been in two years. 

The average price per square foot sold in AVENTURA  went up from 282 a square foot to 323 a square foot.  Good News.  AVENTURA  inventories are declining as well.

Look through my Home Search.  This is the best time to get a really good buy.  Prices will start to stabilize soon, and opportunities to buy at the bottom will disappear.