South Florida Real Estate
Congress didn’t get around to approving an extension go the National Flood Insurance Program so it will expire for the third time this year. Talk about frustrating! If you have a closing in an area that requires flood insurance before Congress gets around to extending the program, have the seller transfer their existing policy to you. To find out how, visit the FEMA guidelines.
If you read the papers, listens to the news, or talk to friends, neighbors and acquaintences about the real estate market, you could be very confused as to what is “real” about it.
- Foreclosures and short sales are still high.
- Unemployment is still high and actually rose more vs. high and dropping.
- Inventory is still high.
Yet, week after week, our EWM office in Coral Gables is selling more than we are listing. This week alone, we had over $28,000,000 (yes, that is million and it was closer to $29) in sales and leases, the majority in sales. We had 29 sales vs 8 sale listings. What is even more amazing about the sales in our office this week:
- 11 of them (38%) were over $500,000 vs 9 that were under$300,000, which is where most of the market has been this year;
- 7 of them were over $1,000,000 so the high end market is starting to move.
What is especially important in these numbers is that the higher end sales are not relying on the first time home buyers tax credit, since they don’t qualify, and they are buying anyway. This leads me to believe that the real estate market is starting to stabilize, especially in certain areas.
Congress recessed and the flood insurance program expired last night. Lost in a debate over unemployment, COBRA payments and other issues, the National Flood Insurance Program was not extended and expired last night.
This could mean delayed closings if you are purchasing a property where the lender requires flood insurance, since the NFIP is the only one who offers it.
A vote in the Senate is scheduled for April 12.
According to an article in today’s South Florida Business Journal, a report by IHS Global Insight suggests that in grossly overvalued markets, prices dropped an average of 37% from 2005 until the fourth quarter of 2009. In Miami, prices have fallen 35.8% in that time frame. The report suggests that for the country as a whole, the real estate market is now slightly undervalued.
Amazing views from this beautiful apartment at the Verona in Deering Bay. Amenities available include: small and large boat marinas, golf, tennis, restaurant, pools, gym and peace and tranquility. Proximity to downtown Miami, airport, Coral Gables, South Miami, University of Miami, Baptist Hospital, Pinecrest and Dadeland and the Falls shopping centers make this the perfect location to call home.
The main reason the current mortgage market is like the diamond trade is because the Fed’s current policy has been to create the market for mortgage backed securities. The Fed agreed to spend $ 1.25 trillion through the first quarter of 2010 to purchase mortgage bonds, thereby keeping interest rates low and stimulating the housing market.
The video below, How Interest Rates Move, does a great job of explaining interest rates in general and how the Fed’s policy has affected the housing market the up until now.
This house is great for entertaining; it is like having your own country club in your back yard! A North/South tennis court, pool, and large covered patio with electric awning and pass-through to kitchen make this deep acre lot the place to be.
A large kitchen with granite counter tops, spacious living and dining room, and 5 bedrooms provide a wonderful space for relaxing after a day of fun in the sun.