Author: jenniferwollmann
Both on a national and local South Florida level, home sales have been improving and in some areas median prices have actually been increasing. Although we have been seeing a trend in increasing sales and decreasing inventories in Miami-Dade County, Moody’s Investor Services estimates there will be an additional 8% decrease in home prices in 2010 due to an increased number of foreclosures, short-sales, and deeds in lieu of foreclosure sales that will be coming on the market. Moody’s estimates are based on loans that are currently in some form of modification process but that will not be eligible for permanent modification.
Sellers and buyers of real estate often fixate on what the price of a property is and in doing so, lose sight of the more important factor, cost. Price is what you get for the property if you are a seller and what you pay for it if you are a buyer. However, what affects both seller and buyer on a monthly basis is the cost. In addition to principal, interest, taxes and insurance costs, there are maintenance costs and maybe association fees.
If you are a seller, consider how much it is costing you to carry that property each month you don’t sell it. Based on the inventory of similar properties in your area vs the number of sales, you can calculate how much it is going to cost you to continue carrying that property for the average number of months it is taking to sell properties in your area. I suggest you cut your sales price and take the loss upfront vs slowly cash out each month.
If you are a buyer, realize that there has never been a better time to buy than right now. You have a large number of options, the interest rates are the lowest they have been in decades and there is the government tax credit that expires at the end of April 2010. If you are waiting for prices to go down lower, consider the cost of owning if the prices go down but the interest rates go up. If prices come down 10% more, but interest rates inch up only 1% your monthly payments are going to be roughly the same.
I just attended a wine tasting at a friend’s home that was put on by AB Fine Wines. We tasted a champagne and several wines from France. In addition to having some very nice wines at extremely reasonable prices, Alex is knowledgeable about a wide variety of wines from all over the world and can work with just about any budget to either help you build your wine cellar or put on a nice evening event.
The days of the McMansions have been put on hold for now. What is selling in Miami are the smaller homes on smaller lots in neighborhoods that are close to shopping and transportation. Most of the homes fitting this description are under $500,000 and many are under $300,000 and are therefore perfect for first-time homebuyers.
If you have a home that fits this description, now is a good time to sell since inventories in these price ranges are low and buyers are often bidding above asking. Many of these buyers want to be under contract prior to the end of April in order to qualify for the First Time Homebuyers Tax Credit.
There was a meeting tonight to discuss ideas about potential improvements and uses of the Banyan Bowl at Pinecrest Gardens. Several arts groups, schools and residents have shown a significant interest in having the Village of Pinecrest upgrade and improve the Banyan Bowl so that it can be used for a variety of performances. The Village has hired consultants to do a feasibility study. What do you think? What types of performances would get you to attend?
Well, its Ground Hog Day and P. Phil has predicted 6 more weeks of winter. Thank goodness, I guess. It is supposed to get up into the 80’s today here in beautiful South Florida.
This low-rise garden condominium is located on the Coral Gables Waterway. It is ideally situated between Coconut Grove, South Miami, and downtown Coral Gables, making it popular with young professionals, students and retirees alike. The units are spacious and feature ample closet space. Rentals range from $900-$1100 for one bedrooms and $1500-$1800 for two bedrooms. One bedrooms list for sale in the mid to high $100,000 and the two bedrooms are in the $200,000. Low maintenance fees and a stable association are additional benefits. 
The real estate market in Miami continues to be driven by properties priced under $300,000. I listed a home this week in this price range and had 8 offers within the first 5 days, all at or above asking. Many of the would be buyers expressed frustration at losing out to cash buyers or having banks stall the process if the property was a short sale or foreclosure. If you are thinking of selling your home and have a home in this price range, chances are if you price it right you will get multiple offers, even above asking!