This Wednesday night, enjoy a free night of music outside as Orchestra Miami presents
Author: jenniferwollmann
According to a CNNMoney.com article all 20 major metro areas saw an increase in sales of million dollar plus condos and single family homes, rising an average of 18.6%.
The increase is largely attributed to the increase in the stock market since 2009 and cheaper financing for jumbo loans.
Market information from the Multiple Listing Service for single family homes for the month of January are as follows:
- Closed sales: 16. 2 short sales 2 REOs. 7 were cash sales, including the one for $3.86 million.
- Price range of closed sales: $3.86 million – $375,000
- Pending sales: 20. 3 short sales, 4 REOs
- Price range of pending sales: $2.950 million – $230,000
- Active listings: 316, 42 of which were listed in February. 18 short sales, 1 REO. 164 are waterfront
- Price range of active listings: $50 million – $199,000
Distressed sales are still making up the larger part of the market in terms of listings going to contract. Based on the number of active listings, distressed sales make up about 8% of the market, but half of the closed sales.
What does this mean if you are a buyer? Based on the number of active listings to closed sales, there is still a lot of inventory to work through, so it is still a buyers market. Once you narrow down your price range and specifications however, there won’t be as much to choose from, so use the statistics and market information to negotiate your price. If the house you like is a regular sale and it is priced right, you won’t have as much room to negotiate as you will on one that is overpriced. If you are going to make an offer on a short sale bring patience and realize that when the bank finally does answer, they may ask for more than what you offered, even if what you offered was the full asking price.
What does this mean if you are a seller? You have a lot of competition so price really does matter. Look at the active sales that most closely match your home in terms of size, location, updates, lot size, amenities. Consider pricing it 10-15% below your closest competition, make sure it has great curb appeal, and de-clutter and freshen up the inside with some elbow grease and a fresh coat of neutral paint. The good news is that if your house is priced right compared to your competition, it will sell.
Market information from the Multiple Listing Service for single family homes for the month of February are as follows:
- Closed sales: 5. None were short sales. 1 REO. 3 were cash sales.
- Price range of closed sales: $670,000 – $340,000
- Pending sales: 19. 3 short sales, 2 REOs
- Price range of pending sales: $3.1 million – $369,000
- Active listings: 183, 36 of which were listed in February. 23 short sales, 2 REOs
- Price range of active listings: $5 million – $300,000
February was a slow month for closings, but cash was king with 3 out of the 5 closings being cash deals. Only 19 homes out of 183 on the market went under contract and new listings were almost double the number of homes going under contract. Strictly looking at the numbers, if you base inventory on the number of closed sales, we have 36.6 months of inventory. If you look at pending sales, then you have a much healthier 9.6 months.
What does this mean if you are a buyer? Based on the number of active listings to closed sales, there is still a lot of inventory to work through, so it is still a buyers market, especially if you are looking at more expensive homes. 57% of the inventory for February is over $1,000,000 but none of the closed sales were that high. Once you narrow down your price range and specifications however, there won’t be as much to choose from, so use the statistics and market information to negotiate your price. If the house you like is a regular sale and it is priced right, you won’t have as much room to negotiate as you will on one that is overpriced. If you are going to make an offer on a short sale bring patience and realize that when the bank finally does answer, they may ask for more than what you offered, even if what you offered was the full asking price.
What does this mean if you are a seller? You have a lot of competition so price really does matter. Look at the active sales that most closely match your home in terms of size, location, updates, lot size, amenities. Consider pricing it 10-15% below your closest competition, make sure it has great curb appeal, and de-clutter and freshen up the inside with some elbow grease and a fresh coat of neutral paint. The good news is that if your house is priced right compared to your competition, it will sell. Inventories will start increasing as we get closer to the summer moving season and time is of the essence once you list your property. The longer it sits on the market, the more likely it is to get a lower price.
What do wealth, power, death, and an elephant have in common? They comprise part of the colorful history of Boca Chita Key, where the Boca Chita Lighthouse is located. Although not a true lighthouse, it is the most popular structure on the small island. It was built by Mark Honeywell, the founder of Honeywell, Inc. and a previous owner of this once private island. Now owned by the U.S. National Parks Service this island in Biscayne Bay is a popular spot with boaters.
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New World Symphony March Wallcasts
Take advantage of these free Wallcasts at Miami Beach Soundscape, the park east of the New World Symphony. Bring a picnic and blankets and enjoy the what could be the last cool, bug free, non-rainy-low humidity days! Classical music performances are marked with a P and movies with an M.
March 5 – “Concerto Showcase” (P)
March 16 – “Avatar” (M)
March 23 – “Fantastic Mr. Fox” (M)
March 26 – “Poetic Portraits” (P)
March 30 – “Grease” (M)
The Ninth Annual Taste of Pinecrest takes place this Sunday at Pinecrest Gardens. This food and art festival is sponsored by the Pinecrest Business Association to benefit the Village’s public schools. In addition to student performances, an art show, rides and games, there are a number of local restaurants selling a “taste” of their menus. It is a great way to spend a day visiting, playing and savoring the many different flavors of Miami.
According to NAR an improvement in the economy, coupled with an increase of liquidity in Commercial Mortgage Backed Securities, is projected to decrease current vacancy rates across the commercial sectors.
Although these are positive indications that the commercial sector didn’t fall as far or for as long as the residential market, it is still a buyer’s market where cash is king.
An article in today’s Wall Street Journal uses Miami as one example as to why 2011 may be the year to buy.
- Affordability, which looks at how many months of income an average family would take to pay for a home, is at the lowest level in 35 years
- Pricing is believed to be at or close to bottom
- Investors are getting back in the market
The article does a good job of differentiating between buying a home and investing in real estate. In terms of buying a home, Michael Larson, a real-estate analyst in Florida, is quoted, “Pricing is down so much in some markets that when you analyze renting versus owning it makes much more sense to own”.
If you are planning to buy for investment, the article returns to the old adage of “buy and hold”. They recommend at least a 10-year hold plan for investment real estate or suggest investing in funds that have real estate in the mix if you want to make real estate a part of your portfolio.
Remember to see what the numbers are in the area you are planning to purchase. While the affordability index was high in most areas, it is low in Washington D.C.
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Where’s JWo?
