Buying Foreclosures Selling

More Changes To Affect The Florida Real Estate Market In 2014

On December 20 I wrote a post about some changes to federal laws that may affect Miami’s real estate market in 2014.  I neglected to include two more (well one is a Florida State Law, but I will include it here anyway).  The first one I thought would be extended by now, but since we are coming up on New Year’s eve I thought I should mention it in case Congress lets it lapse.  It may not be that big of an issue since, due to the rising real estate prices, many real estate owners are no longer under water but the tax deduction on forgiven mortgage debt will end on January 1, 2014.  Although there are many benefits to short sell, even without the tax benefit, instead of foreclose the sun-setting of this deduction could decrease the number of short sales sellers participate in.  Should seller’s stop participating in short sales, this will put pressure on already short inventory since the foreclosure process usually takes longer.  Which leads me to the second change.

HB 87, the Fair Foreclosure Act, went into effect on June 7, 2013, but we will really start to see its affects in 2014.  Known as the “Speedy Foreclosure Law”, this law will help speed up the foreclosure process.  Prior to passage of this bill, foreclosing on a mortgage took approximately 853 days, which was more than twice the average.  This should help ease some of the shortages in inventory by getting at least a portion of the 350,000 plus foreclosure cases currently tied up in Florida courts through the process much faster.


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Florida Foreclosure Starts Down 18.02% Month-To-Month

Realty Trac’s November Foreclosure Market Report shows that foreclosure start in Florida dropped 18.02% from the previous month and a whopping 45.9% drop year-over-year; completions were down 2.72% month-to-month and 15.59% from previous year; and overall foreclosure activity was down 15% and 23% respectively.

These decreases show that the foreclosure crisis is almost over, but the Florida still leads the nation in foreclosures, with one in every 392 homes getting a foreclosure filing and Miami is one of the highest cities with foreclosures in Florida.  There are currently 617 Miami-Dade foreclosed homes listed on the MLS.

Pinecrest Foreclosure Listed by Avatar Real Estate Services
Pinecrest Foreclosure Listed by Avatar Real Estate Services

Buying Foreclosures Selling

Miami Real Estate: Inventory Low, Prices Increasing

Further evidence of the improving Miami real estate market can be seen in EWM’s Coral Gables office sales for last week.  The total of sales and leases was $20,484,380.  Residential sales represented 90.5% of those transactions.   The total for all of EWM’s Miami Dade County offices was over $36,000,000.

Today’s Miami Herald article, “South Florida’s real estate market looks hot again” summarizes the market gains.


Buying Market Summary Selling

Investors Taking Advantage of Strong Rental Market

Over the last several months I have written about different signs, see blog links below,  that the real estate market is changing.  Today’s Miami Herald article, Rents rise as overseas buyers invest, talks about some of the reasons why.

More Proof Miami-Dade’s Housing Market is Turning Around

Investors Are Taking A Bite Out Of Inventory

Miami Real Estate – Commercial Construction Also Picking Up

Miami Real Estate: More Signs the Market is Improving

Miami Real Estate: The Market is Changing

Foreclosures Selling

Need To Short Sell Your Home?

Banks Offering Up To $20,000 Incentives

As the economy continues to trudge along, many South Florida homeowners are still struggling with unemployment and mortgage payments.  If you are thinking of short selling your home, you should be aware that several banks have incentives for you to short sell versus going through the lengthy, in Florida it can take close to two years, and extremely credit-damaging foreclosure process.

Wells Fargo and Chase offer up to $20,000 in incentives to qualified homeowners and Bank of America just launched a similar pilot program in Florida.

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Miami Real Estate – Shadow Inventory

Shadow inventory is basically the number of properties that are projected to hit the market due to distressed owners, those who are behind 90 days or more on their mortgage,  or because they will be or already have been taken back by the bank.  There has been a lot of speculation lately about how this background inventory will affect the housing recovery, with many experts saying it will significantly delay it.

A article on Shadow Inventory states: “Of the 20 separate markets S&P analyzed, Miami was the only market of the 20 that S&P analyzed where shadow inventory did not did expand during the first three quarters of 2010.”

What does this mean for buyers?  Record high affordability and a wide selection of properties to choose from.

For sellers, it means a continued suppression of prices, with prices either dropping further or bouncing along the bottom for a while.  If you were thinking of selling your home within the next year or two, you may want to put it on the market now.  Or, if you have equity in your home and have entertained the idea of owning investment property, turn it into a rental and buy your move-up, downsizing, or retirement home at the lowest prices we have seen in a long time.

Buying Foreclosures Selling

Miami Real Estate – Thinking of Selling, Now is the Time. Thinking of Buying? Now is the time.?!

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.

Buying Foreclosures Market Summary

Miami Real Estate – Foreclosures and Shortsales

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

Buying Foreclosures

Miami Real Estate Foreclosures: They Are Still Coming On The 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.

Buying Foreclosures

Miami Real Estate – Will the Miami Heat Lead to an Increase in Sales?

Okay, so the Miami Heat have won two in a row after their disappointing loss in Boston.  With so much fanfare around the  team, condos in the immediate area have decided to latch on to the Heat as a way to increase sales in buildings that are currently mostly occupied by renters.  Other than the Heat, these buildings have a lot to offer location wise.  Although there is still infrastructure in the immediate area missing (shopping and restaurants) outside of Bayside Marketplace, there is a lot the area has to offer.  It is a quick drive to South Beach, located across from the future Museum Park and a stroll under I-395 to the Arsht Center for Perfoming Arts.  So are you enough of a Heat fan to be compelled to buy in one of these new buildings?