Categories
Buying Foreclosures Investment Real Estate Selling

South Florida Real Estate Market: What is Going On?

question_mark2The following were all topics in the news last week and all of them have an effect on our real estate market:

South Florida home sales surge, prices plunge, mortgage rates fall to lowest levels since May, Florida’s unemployment rate is up, Florida foreclosures are up and may be increasing, another condo developer files for bankruptcy, developers selling in downtown Miami for $200 per square foot, the first-time buyer credit is expiring, school starts Monday,  Miami-Ft. Lauderdale real estate market is ready for a rebound, pending sales in Miami-Dade County up over 96% in July over same time last year, Florida loses population for the first time since World War II.

So just what is going on?  In short, there have been a lot of positive signs that our real estate market is at or near its pricing bottom, but that doesn’t mean we are going to see appreciation any time soon.  Closed sales are up and pending sales are up even further.  The fact that housing prices in Miami-Dade are at their most affordable levels in years, coupled with the government’s first-time homebuyer tax credit, has helped move a lot of the lower priced inventory.  The high unemployment rate will result in more foreclosures and our tourism and real estate dependent economy will take longer to recover from the recession than states with more diverse economies.  All this means is that the real estate market will go through up and down spurts from month to month, similar to what the stock market is doing, and that prices will stagnate for a while instead of appreciating.  Some months are going to see more sales than others.  Certain areas are going to continue to see decreasing inventories.  I suspect that with the start of school and the end of the first-time homebuyer credit at the end of November, the rate of sales is going to taper off a bit.  If you are buying, there are going to continue to be deals and you will still be in the driver’s seat.  If you are selling, pricing will be the most important factor.

Categories
Buying Home Improvement Investment Real Estate Selling

Don’t Underestimate the Value of Curb Appeal

In the current real estate market, a lot of attention has been given to staging a home to help it sell.   I am a big fan of staging, but think curb appeal is even more important.  After all, it doesn’t matter how nice your home looks on the inside if buyers drive up, take a look at the outside and drive on.  Here are some simple ideas to create curb appeal for your home:

  • Make sure the outside looks clean and fresh.  Remove cob webs and brush off dirt and bugs from outside walls.
  • Pressure clean walk-ways, pool patios, fences.
  • Paint any exterior that looks drab or dirty.
  • Remove weeds and dead leaves from plant beds.  Fill in bare spots with new plants and lay down a fresh layer of mulch.
  • Re-asphalt driveway
  • Paint or stain front door.
  • Thoroughly clean all outdoor light fixtures and make sure the bulbs are working.

Even if you are not selling your home, these small fixes can make your home inviting to your friends and make you fall in love with it all over again!  If you are a buyer or investor, look at homes that don’t have curb appeal.  Most likely they have been on the market longer than homes in the neighborhood that do and you can get them for less than you would a house that has a pleasing exterior.  Once the house is yours, you can add curb appeal and reap the benefits.  Your cost to create appeal should be minimal compared to the savings you got on the purchase.

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Before
After
After

Categories
Environmental Home Improvement

Composting is Beneficial for South Florida Gardens

Growing plants in South Florida is very easy.  When I first moved here, I remember someone  telling me,  “plant once and cut it forever” .  Well, after successfully growing tomatoes, jalapenos, and a variety of peppers by simply throwing seeds from my kitchen into assorted pots, I am convinced that growing just about anything is pretty easy.  The quality of what is grown, however, requires a little more effort.  I threw papaya seeds in the yard and grew massive papayas, which were disgustingly mealy, and my frangipanis, though flowering, could use a little more something.

Composting is an easy way to improve the quality of your plants while reducing waste.   A friend and neighbor of mine who swears by her composter and my sister, who lives in Italy and thinks composting is a no-brainer, have convinced me that composting is the way to go.   So, after years of procrastinating, I have decided to go more “formal” with my garden and will start composting.  Since the University of Florida has an amazing agricultural extension and an extremely informative website, I will be building vs buying my first compost pile.  I will post my progress on this blog and, hopefully, will be producing compost that looks as good as this person’s.Real_Compost

Categories
Buying Selling

$8000 Homebuyer Tax Credit Set to Expire Soon

taxcreditendsThe government’s first-time homebuyer tax credit is set to expire on December 1, 2009.  That gives buyers a little over 3 months to:

  • qualify for a mortgage
  • find their home
  • negotiate a contract
  • have inspections done
  • get an appraisal
  • get a financing commitment
  • and close on the house by November 30.

Any one of the bullet points above can derail your closing and put you back at the starting gate.   So, how do you maximize the time that is left?  If you are a buyer, make sure you are qualified for a mortgage before you start looking at houses.  If you are a seller, make sure you take advantage of this time by pricing your home appropriately for sale.  In this market, pricing is everything.  Buyers know that prices have come down significantly and aren’t going to over-pay for a house.  They may be willing to pay a little more than market if your home is in superb condition compared to comparable closed sales in your neighborhood, but you will still need your home to appraise.

Categories
Buying Foreclosures Investment Real Estate Selling

Buying Real Estate Needs to Make Sense

Two sentences in today’s Wall Street Journal article by Brett Arends sums up all of the often conflicting real estate news these days.  “A real-estate purchase needs to make sense on its own terms.  And measure it on cash flow today, not the hope for capital gains tomorrow.” This advice makes sense in any real estate market and, if followed, should make real estate a great long-term investment, whether it is your primary residence, or an investment property.

Categories
Florida Life

Fishing in South Florida is a Bargain!

I found another reason to love South Florida, CHEAP fishing licenses!  I  purchased annual fishing licenses for my sons to go out for mini lobster season and thought I had been charged incorrectly.  The cost for an annual license was $17!  I paid $52.70 for an annual license in Pennsylvania so one of my sons could fish for two weeks.  Granted, I paid as a non-resident in PA and the non-resident in Florida is $47, but where do you think you get more bang for the buck?

Large mouth bass in Twin Lakes, PA
Large mouth bass in Twin Lakes, PA
mahi mahi
Mahi Mahi common Florida catch

Categories
Buying Investment Real Estate

Buying Real Estate is a Long-Term Investment

“Long term Miami will outperform the rest of the country.  In 10,20, 30 years, prices will be rising faster in Miami than in the rest of the country,” states Lawrence Yun, Chief Economist of the National Association of Realtors.  The important item in this quote is the time frame.  Brickell 2 resize

Categories
Environmental Home Improvement

6 Reasons to Consider Florida Friendly Landscaping

In a state where water is in short supply and there is a year-round growing season,  Florida friendly landscaping is backyard after resizedimportant and can result in:

  • lower water bills
  • better looking yard during dry season and droughts
  • decreased maintenance requirements
  • increased presence of wildlife
  • shade and lower energy bills
  • minimizing the need for pesticides and fertilizers

For a guide of Florida friendly plants and other tips visit Floridayards.org

Categories
Freebies

Miami Museums Free Events

Free things to do in Miami

Looking for some from free things to do before school starts?  A lot of our local museums have free days each month.  Since today is the first of the month, you will be able to get a lot of these in.  Or spread them out over the next couple of months.

Bass Museum of Art free family day on Sundays 2-5 p.m.

Miami Art Museum free admission on the second Saturday of each month

Miami Museum of Science free planetarium shows and star gazing beginning at 7:30 p.m. on the first Friday of each month

Museum of Contemporary Art free to North Miami residents and free jazz for all at 8:00 p.m. on the last Friday of each month.

Wolfsonian Museum free gallery admission Fridays from 6-9

Categories
Buying Foreclosures Investment Real Estate Selling

Miami Home Prices Continue to Decline, Presenting Buying Opportunities

Although today’s  S&P/Case Schiller Price Home Index  showed a slight 0.5%  increase in home prices between April and May, Miami had a 0.8% decrease.  Nationally, this was the first month to month increase in three years and has many people claiming that the real estate market appears to be stabilizing as price decreases level off.

Overall, this is great news as any stabilization in the housing market will help ease a lot of the economic problems that resulted in the market’s severe free fall.  This does not mean that prices will be going up any time soon, especially in hard hit areas like Miami, but rather that the decreases should not be as significant as they have been.  Home prices in Miami are down 25.2% over last year’s prices and the market in Florida still has a long way to go before we can say we have recovered.  Some facts that will keep our market trudging along slowly:

  • Florida’s real estate market still has a lot of inventory to work through;
  • Spring and early Summer normally have higher sales as families purchase and settle in before a new school year;
  • $8000 first time buyer credit expires at the end of November.  If you are a buyer that qualifies for this credit, hurry;
  • Interest rates, while still low, have started to move up slightly;
  • There are probably many sellers sitting on the sidelines waiting for the inventory to decrease a bit before listing their property
  • The majority of sales and listings are still short sales and foreclosures.

This is not doom and gloom news.  Just a reality check.  There are great deals out there if you are a buyer or investor.  If you are a seller, be realistic with your sales price and your property will sell.