South Florida Real Estate
With prices still on a downward slide in South Florida, the number of sales are up as buyers realize the buying opportunity these price decreases represent. And although 30-year mortgage rates inched up slightly this week, they are still under 5% and near historic lows.
These interest rates will help first time buyers, but may not play much of a difference in Miami’s high end market: 2 out of 3 sales in the $1,000,000 and over market are cash sales.
The Panama Canal is undergoing a massive expansion to allow bigger vessels to pass through. Since the Port of Miami is the closest U.S. Port to the Panama Canal, Miami is in a strategic position to benefit from the increase in America/East Asia trade.
The Port of Miami is building a tunnel to the Port, so truck traffic can bypass downtown Miami, and is seeking federal funds to dredge the harbor to minus 50-feet, which would make it one of only three ports that can handle the new, larger container vessels.
This increase in trade at the port will mean there will be new demand for warehouse space and housing for the estimated 33,000 new trade-related jobs that are expected.
How can it be both the right time to sell and the right time to buy? Usually, if it is a seller’s market, prices are high and inventory is low. If it is a buyer’s market, it is the other way around. We currently have enough overall inventory of single family and condos in South Florida to make it a buyers market so, if you are a seller, you may think of holding off until the inventory decreases. If you have the holding power, you are right. If you need to sell, but were thinking of holding off for the Spring, read Steve Harney’s blog, Oswald Acted Alone and We Did Land on the Moon.
If you are a buyer and read the blog, you will be tempted to hold off, figuring prices will fall further and you could get a better deal. The difference is that with a home buyer, unless you are purchasing with cash, the cost of the home is often more important than the price. Another great Harney blog, 3 Questions You Must Answer Before Buying a Home, can help you determine if you would be better off waiting until the end of 2011 or purchasing now.
Remember, real estate is hyper-local and your specifications for a home or investment property, may be completely different from what is going on in a city, county, state or nationally. Some areas experienced less price decreases, short sales, and foreclosures than others.
The inventory for single family homes in Miami-Dade County has inched up in the first few weeks of 2011. There were 971 single family homes that closed in the month of December, but 723 new listings have increased our inventory from 7591 at the end of December to 8314 as of today.
This increase is not unexpected as foreclosures were put on hold while being investigated, and many homeowners don’t want to deal with showing their home during the holidays.
It is amazing to me that so many commercial real estate agents like to keep their listings a secret. Instead of posting their listings on the MLS, or having their own commercial MLS if they want to keep it separate from residential real estate, they post their listings on their own sites. If they do post them on a site, they post them under the “private” or “premium” listing, which requires a monthly membership in order to view.
In this age of information, when everything is on the internet and the majority of people searching for anything start their search there, wouldn’t you want your commercial listing to get the most eyes possible? The more eyes, the more likely you will get an offer.
I applaud the commercial realtors who use the most media possible to market their listings. I post my listings everywhere, blog about them, put up signs, put them on Facebook and do everything else possible to get the most people to look at my listings.
As of December 2010
REO Homes were 12% of Total Inventory and 41% of Total Sales
Single family home Short Sales were 32% of Total Inventory and 19% of Total Sales
REO Condos were 9% of Total Inventory and 46% of Total Sales
Condo Short Sales were 32% of Total Inventory 22% of Total Sales
For single family homes as of December 2010:
- Median Price $172,000 vs $400,000 peak in May of 2007
- 8156 single family homes listed on the MLS vs a peak inventory of 17,070 in July of 2008
- Currently there is a 10 month supply. A 6-9 month supply is a stable market, so we are getting closer.
For condos as of December 2010:December 2010
- Median Price $101,000 vs $215,000 peak in January of 2008
- 15,116 condos listed on MLS vs 24,905 at peak in May of 2008
- Currently there is a 12 month supply, so we still have a ways to go to stabilize the condo market.
Even though several large banks froze their foreclosure process in September, there are still plenty of foreclosures coming on the market in Miami.
There are currently 827 single family homes that are listed as REO on the MLS. 423 of them were listed since October 1.
There are 1116 condos listed as REO. 640 of those have been added since October 1.
October’s median home sale price increased 12% to $199,100 compared to same time last year.
CNN came out with their most recent ranking of most (and least) affordable cities to buy a home. The good news is that no city in Florida made the least affordable list. The bad news is that no city in Florida made the most affordable either.