SOUTH FLORIDAReal estate crawls back toward normal --
for now• Distressed properties no longer account for most real estate listings in South Florida. A new wave of foreclosures may change that.BY DOUGLAS HANKS dhanks@MiamiHerald.com South Florida’s real estate market is creeping back toward a more normal era. But the trend might not last long.
New figures show bank-owned homes or those facing foreclosure no longer dominate the resale market, and homes for sale under normal circumstances now account for about half of real estate listings. That’s a switch from a year ago, when distressed properties accounted for 70 percent of listings.
“Normal sales are gaining traction,” said David Dabby, a real estate consultant in Coral Gables. “The normal market is separating itself.”
Douglas Elliman, a brokerage based in Miami Beach, issued a report Thursday showing significant price increases in some of the region’s prime real estate markets.
The report estimates the median sales price for a single-family home along the coast in Miami-Dade — generally east of I-95 — increased 26 percent to $176,000 between the start of 2011 and the start of 2012.
Analysts credited the shift with a decline in distressed properties: 65 percent of the market in 2011 to 48 percent in 2012. That’s still a long way from normal — Dabby said distressed real estate typically accounts for only about 7 percent of South Florida’s market.
The Douglas Elliman report highlights a common refrain from the real estate industry as it climbs back from a historic crash in values, brought on by too much faith in the housing market during the boom.
But the figures also capture the dynamics of South Florida real estate, where sales volume has been surging in recent years while prices have been either approaching a plateau or bouncing off the bottom.
Distressed properties tend to go for much less than homes sold under normal circumstances for a number of reason, brokers said. For one, they are often smaller and in less desirable neighborhoods. With a bank involved, buyers often will try to “steal” a distressed home with a low-ball offer — a tactic less likely to work if the owner faces no mortgage woes.
“They know the seller isn’t desperate,” said Vanessa Grout, president of Doug-las Elliman Florida. “Every buyer wants a desperate seller. And every seller wants to make it seem that he doesn’t need to sell.”
The new parity between distressed and non-distressed property was largely expected, and the big question is how long it will last. Banks have been holding off foreclosing on properties in the wake of the so-called “robo-signing” scandal, in which major lenders were accused of shoddy paperwork tied to delinquent loans.
But with a national settlement reached last year, the foreclosure pipeline should become active again in 2012.
Industry watchers expect such a surge of foreclosed properties that Moody’s predicts a 12 percent drop in South Florida property values this year — on top of the nearly 50 percent drop since the market’s peak in 2006.
Condo Vultures, a brokerage that tracks distressed real estate, recently reported a surge in bank repossessions in South Florida: 10,000 in the first three months of 2012.
“This is the first time since 2007 where we have seen at least 10,000 repossessions in the first quarter,” said Peter Zalewski, founder of Condo Vultures. “There is a huge disconnect.”
Zalewski said the repossessions show a wave of distressed properties coming on the market, once banks feel it is a good time to sell. If they can wait, they’re likely to get higher prices.
The crush of distressed properties has helped keep values down.
The Keyes Co. brokerage cited South Florida figures showing the average distressed home this year is selling for $140,000, versus $265,000 for a non-distressed home.
“It’s a tale of two cities,’’ said Keyes President Mike Pappas.
Miami Property Prices UP
ttp://www.propertywire.com/news/north-america/us-miami-property-prices-201201025932.html
Miami Market Pushing UP
http://www.propertywire.com/news/north-america/miami-florida-property-prices-201203266344.html
Downtowns Miami Condo Market Climbs to 93% occupancy
http://southfloridarealestate.citybizlist.com/6/2012/3/13/Downtown-Miamis-Condo-Market-Climbs-to-93-Occupancy.aspx
Fla. ranked first in 2011 home sales to Canada
http://nce.yahoo.com/news/florida-ranked-first-2011-home-120000034.html
Fla. ranked first in 2011 home sales to Canada
SARASOTA, Fla. – March 15, 2012 – The strength of the Canadian dollar, sustained low pricing in the U.S. housing market, and perceptions regarding the general economic outlook continue to encourage Canadians to purchase a home in the Sunbelt states.
According to the National Association of Realtors® (NAR) 2011 Profile of International Buying Activity, Florida and Arizona are top choices because of their favorable winter climate. In fact, 58 percent of all international sales in 2011 came from just four states: Florida at 31 percent, followed by California at a distant 12 percent, Texas accounted for nine percent and Arizona at six percent.
Even for international buyers it’s location, location, location. Forty-three percent of those surveyed report a favorable location as their clients’ most important factor when choosing where to purchase. That was followed by 27 percent who stated their clients’ top reason to buy in the U.S. was that they view U.S. real estate as a profitable investment.
Canadians specifically purchase due to a perceived positive return on their investment. They also showed a strong desire for a lakefront recreational location. In fact, eight percent of Florida re-sales were to Canadians in 2010. Similar culture, closeness to their native homeland and lack of a communication barrier are also factors steering Canadians to the lower 48 U.S. states.
The NAR profile also showed that in the 12-month-period ending March of 2011, Canadians accounted for 23 percent of all foreign buyers – the largest of any country. In a 2010 article, Canada’s largest daily newspaper The Globe and Mail reported that a vast majority of Canadians were paying cash for their purchase.
“There are few lenders who have a mortgage process tailored for Canadians looking to purchase a home in the U.S.,” said Sheila Blom, Florida mortgage market manager for M&I, a part of BMO Financial Group. “Our parent company is based in Toronto, so naturally we have relationship products specifically designed to meet the needs of Canadian customers for purchasing or refinancing their primary residence, second home or investment property in the U.S.”
© 2012 Florida Realtors®
According to the National Association of Realtors® (NAR) 2011 Profile of International Buying Activity, Florida and Arizona are top choices because of their favorable winter climate. In fact, 58 percent of all international sales in 2011 came from just four states: Florida at 31 percent, followed by California at a distant 12 percent, Texas accounted for nine percent and Arizona at six percent.
Even for international buyers it’s location, location, location. Forty-three percent of those surveyed report a favorable location as their clients’ most important factor when choosing where to purchase. That was followed by 27 percent who stated their clients’ top reason to buy in the U.S. was that they view U.S. real estate as a profitable investment.
Canadians specifically purchase due to a perceived positive return on their investment. They also showed a strong desire for a lakefront recreational location. In fact, eight percent of Florida re-sales were to Canadians in 2010. Similar culture, closeness to their native homeland and lack of a communication barrier are also factors steering Canadians to the lower 48 U.S. states.
The NAR profile also showed that in the 12-month-period ending March of 2011, Canadians accounted for 23 percent of all foreign buyers – the largest of any country. In a 2010 article, Canada’s largest daily newspaper The Globe and Mail reported that a vast majority of Canadians were paying cash for their purchase.
“There are few lenders who have a mortgage process tailored for Canadians looking to purchase a home in the U.S.,” said Sheila Blom, Florida mortgage market manager for M&I, a part of BMO Financial Group. “Our parent company is based in Toronto, so naturally we have relationship products specifically designed to meet the needs of Canadian customers for purchasing or refinancing their primary residence, second home or investment property in the U.S.”
© 2012 Florida Realtors®