Sales increase in Home and Condo Market

March 23, 2009 – Florida’s existing home sales rose in February, making it the sixth consecutive month that sales activity showed increases in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR). February’s statewide sales also increased over January’s figures in both the existing home and existing condo markets.

FIRST TIME HOMEBUYER CREDIT

$8,000 TAX CREDIT

Important note for homebuyers, especially those shopping late in the year: Initial reports on the $8,000 tax credit for first-time homebuyers reported a Dec. 31 deadline to buy property. However, that's incorrect. The home closing must occur before Dec. 1, 2009

NEW STIMULUS PACKAGE - WHAT IT MEANS

Dear Fellow REALTOR®, Here's our take on the Stimulis Bill and Treasury announcements made this week. We look at the Stimulis package AND the Treasury's package holistically, in compliment with each other - mostly because that's how the Obama team is looking at it. Your representatives, the NAR Board of Directors, asked us in November to do 4 things (with an unspoken but clearly understood mandate to PRESERVE what we already have). Here they are: 1) get loan limits raised for high cost areas, 2) make the $7,500 tax credit NOT a loan, 3) try to find ways to push interest rates down (which are higher than they should be due to systemic risk right now) by 200 basis points, and 4) help provide solutions to the foreclosure/short sale problem.So here's what we have achieved: 1) the loan limits will be raised to $727,000 in high cost areas, 2) the tax credit will be raised to $8,000 with NO payback [a true credit], 3) interest rates have come down 125-150 basis points, and 4) the bill has over $50 billion in it for foreclosure mitigation, with Geitners Treasury plan signaling that the second half of TARP and TALF will be used to mitigate foreclosures through a government guarantee, drive down interest rates by buying another $200-300 billion of mortgage paper from the GSES's thereby freeing them up to do the same with new mortgages, and Fannie has just agreed to lift the cap of 4 investment properties eligible for loans and raise it to 10. In addition, we preserved what we have - which some tend to forget is always on the table when these negotiations start up again - mortgage interest deductability, real estate tax deductability, and the $250,000/$500,000 cap gains exclusion (an overall package worth more than $100 billion and for some a very attractive funding source for their pet projects). We did make a run at the $15,000 credit -- and we would have loved to have gotten that or the Homebuilders $22,000 credit idea as well as their 5 year loss carryback deal, but they were considered too rich for this program. What it did do though is totally take the debate off of whether a tax credit should be reinstated at all (it expired last year) and whether it was a true credit or a repayable loan, and kept the conversation on how much it should be. It also kept the debate off of 'what we are willing to give up to get a $15,000 tax credit' and kept the debate again, on how much it should be. It's pretty hard to complain when they give you what you ask for and you lose something you never had.
While we study the Treasury specifics on their major role in providing the rest of the housing solution -- there is much more to come and we are working diligently with the Administration to help 'unclog the pipeline' and get capital flowing into housing again.Sincerely,Charles McMillan, CIPS, GRI2009 NAR President

Opportunity still Available in South Florida!

Philadelphia investor has paid $8 million for 19 units in the 562-unit Flamingo South Beach condominium tower; paying about $313 per square foot for the condos. The transaction has not yet appeared in Miami-Dade County public records. The buyer was interested in acquiring properties with income potential and has already rented out 15 of the units at around $2.25 per square foot in the complex that overlooks Biscayne Bay. Many of the renters are young professionals who work in South Beach, downtown Miami or near Jackson Memorial Hospital, “The deal made a lot of sense for them. The beautiful brand-new buildings downtown are renting aggressively, but we have been able to rent at a higher rate and still get the renters,” a spokesman said.

Mortgage Rates Take a Big Dip This Week!

For the week ended Dec. 3, Freddie Mac reported the lowest interest on 30-year fixed home loans since late January. The rate came in at an average of 5.53 percent, down from 5.97 percent the previous week and 5.96 percent a year ago; while 15-year fixed mortgages settled at 5.33 percent compared to 5.74 percent last week and 5.65 percent in the year-earlier period. Borrowing costs for short-term loans also were lower, with one-year adjustable-rate mortgages dipping to 5.02 percent from 5.18 percent a week ago and 5.46 percent a year ago. Five-year hybrid ARMs, meanwhile, fell to 5.77 percent from 5.86 percent last week and 5.75 percent during the same period of last year. ...............Source: Realty Times (12/05/08)

UPSET WITH THE ECONOMIC CLIMATE? DIVERSIFY!!

Ok. We have all heard the old adage when it comes to safe investing, "diversify". Historically Real Estate has been an excellent investment. NOW that South Florida is a buyer's market and the stock market is not exactly sky rocketing.... its time to take advantage of these low prices and buy South Florida real estate.

Why buy in Florida?

Look on the bright side
January 31, 2008 by Nancy Batchelor
Sure, everywhere you look these days, someone is reminding us of the problems with the real estate market.  Not enough qualified buyers, too much housing inventory, home prices are overvalued and the list goes on.  While many of these things are happening and while Miami-Dade County is ranking among the most overvalued markets in the country, there is a reason why those selling a condominium in Miami-Dade County should not pay too much attention to the hype.  I have just read an article in RisMedia entitled, “10 Reasons the South Florida Condominium Market is Hot” which helps to put things in better perspective.This article helps to understand what it is about south Florida that makes it an irresistible place to buy a condominium.
• 1) The weather. Half of the country is freezing cold right now while south Florida residents can languish on beautiful sand beaches.
• 2) Water, water everywhere. Many condos in Miami-Dade County offer spectacular views of the water, be they of the Atlantic ocean or of the yachts and mansions on the Intracoastal waterway
• 3) Stimulates family and friends into visiting you more often. You will become a very popular family member or friend to visit around vacation time.
• 4) Great value. Oceanfront and waterfront properties are highly sought after and rarely decrease in value.
• 5) Beaches all year ‘round. While half of the country is under snow and suffering harsh colds, south Florida residents are enjoying the beach.
• 6) Great for entertaining. Miami-Dade condominiums offer a stunning backdrop for entertaining family, friends or colleagues.
• 7) Low stress. Living by the beach gives you the opportunity to take afternoon walks after a hard day at work or just relax and watch the sunset.
•  Catch up on your reading. There is something to be said about sitting down at the water’s edge and reading a good book.
• 9) It always feels like vacation in south Florida. With palm trees, beaches, ocean and sun all around it feels like vacation time all the time.
• 10) Dining, entertainment and shopping. Not far from any of the wonderful beaches in Miami-Dade County, you will find excellent restaurants serving fare from the world over, art galleries, art boutiques and other cultural venues.
• 11) University of Miami Hospital offering world class medical care in South Florida
• 12) Miami International Airport
• 13) South Florida’s Exchange Rate
If you own, or are thinking of buying a Miami-Dade County condominium, I recommend that you read this article.