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South Florida Real Estate
Pinecrest Open House 6-27-2010
Miami Open House Weekend 6-27-2010
Wealthy Still Moving to Florida
Forbes’ article Where America’s Money is Moving states that 8 of the top 20 counties where the wealthiest residents are moving are in Florida. In addition to the weather, beaches, lifestyle, drastically reduced real estate, the fact that Florida does not have income taxes continues to make the state one of the top destinations for high income earners.
The number one destination was Collier County. Though most of the people moving there were from other parts of Florida, many also came from northern cities.
Mortgage Applications Decline to Lowest Level Since April, 1997
Despite the decrease in interest rates since April 30 of this year, mortgage applications for home purchase are down to the lowest rates since April 11, 1997. The decrease is largely due to the expiration of the First Time Home Buyers Tax Credit.
National Flood Insurance Program Set to Expire — Again
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.
Are Real Estate Sales Really Up in Miami?
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.
National Flood Insurance Program Expired
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.
Is Miami Real Estate Undervalued?
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.
Home Buyers Tax Credit Ends April 30
If you are planning on using the Home Buyers Tax Credit to purchase your home, time is running out.
Sales of High Priced Multifamily and Hospitality Properties Increase
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