Sunday, December 02, 2012
Friday, November 23, 2012
Wednesday, October 10, 2012
Sales Started at Costa Hollywood
The units are delivered fully furnished and may be used by the owners, as well as being rented particularly or by the hotel company.
Do not miss this investment opportunity.
The Apogee Beach will be completed soon south of this building. The apogee started selling a year and a half ago at about $390 per square feet and is now at about $640, without even the furniture and still in construction.
Tuesday, September 25, 2012
Monday, September 24, 2012
Real estate investors plan to buy more
MEMPHIS, Tenn. – Sept. 21, 2012 – Despite rising prices and shrinking foreclosure inventories, 65 percent of active real estate investors plan to buy as many homes over the next 12 months as they bought in the previous 12 months, according to a survey conducted by ORC International for BiggerPockets.com and Memphis Invest.
Founded in 1938, ORC International has conducted the CNN|ORC International poll since 2007.
Future activity
The survey found that 39 percent of active investors intend to increase their purchases over the next twelve months, while 26 percent plan to buy as many in the upcoming year to come as they did in the past year. Added together, the two groups equal about 4.5 million investors. Only 30 percent of survey respondents planned to buy fewer properties.
Last year, investors purchased 1.23 million homes, a 64.5 percent increase over 749,000 in 2010, according to the National Association of Realtors®.
Who are the investors?
Some 3 percent of American adults – 7 million people – consider themselves to be real estate investors. An additional 9 percent of all Americans own investment property today but have no current plans to buy more. Thus, one out of eight – 28.1 million Americans – either consider themselves to be residential real estate investors or own residential investment properties today, according the survey.
“Hundreds of thousands of foreclosures and short sales are coming to market and rents are continuing to improve in most markets, creating a positive environment for the nation’s 28.1 million residential real estate investors,” says Joshua Dorkin, founder and CEO of BiggerPockets.com. “We’re talking about a group of Americans that is about the same in number as the number of Americans who own Roth IRAs (28.5 million) or the total number of money market fund shareholders (29 million). They have significant buying power.”
Housing repair
At a median expenditure of $7,500 per property, investors are spending a total of $9.2 billion per year to repair the damage caused by foreclosures and rehabilitate the nation’s housing stock – about four times more than the federal Neighborhood Stabilization Program.
“This survey puts some hard numbers behind the contribution that investors are making towards … driving the economy,” says Chris Clothier, a partner with Memphis Invest. “Those investors are driving their local economies by spending billions in repair costs with local electricians, plumbers, flooring companies and laborers.”
Promoting real estate investment
The survey found that lower interest rates and removing financing access limits would provide incentives to investors. Survey respondents said lower interest rates would make active investors more willing to invest in additional properties (70 percent). A distant second was additional tax incentives for capital spent to purchase, rehab or renovate investment properties (54 percent).
Third place went to elimination of limits imposed by lenders on the amount they will lend an investor (46 percent) and fourth to easing of rules on section 1031 Exchanges (44 percent).
Only 30 percent said that the easing of securities laws limiting the pooling of capital by investors for purchases would encourage them to buy more.
© 2012 Florida Realtors®
Founded in 1938, ORC International has conducted the CNN|ORC International poll since 2007.
Future activity
The survey found that 39 percent of active investors intend to increase their purchases over the next twelve months, while 26 percent plan to buy as many in the upcoming year to come as they did in the past year. Added together, the two groups equal about 4.5 million investors. Only 30 percent of survey respondents planned to buy fewer properties.
Last year, investors purchased 1.23 million homes, a 64.5 percent increase over 749,000 in 2010, according to the National Association of Realtors®.
Who are the investors?
Some 3 percent of American adults – 7 million people – consider themselves to be real estate investors. An additional 9 percent of all Americans own investment property today but have no current plans to buy more. Thus, one out of eight – 28.1 million Americans – either consider themselves to be residential real estate investors or own residential investment properties today, according the survey.
“Hundreds of thousands of foreclosures and short sales are coming to market and rents are continuing to improve in most markets, creating a positive environment for the nation’s 28.1 million residential real estate investors,” says Joshua Dorkin, founder and CEO of BiggerPockets.com. “We’re talking about a group of Americans that is about the same in number as the number of Americans who own Roth IRAs (28.5 million) or the total number of money market fund shareholders (29 million). They have significant buying power.”
Housing repair
At a median expenditure of $7,500 per property, investors are spending a total of $9.2 billion per year to repair the damage caused by foreclosures and rehabilitate the nation’s housing stock – about four times more than the federal Neighborhood Stabilization Program.
“This survey puts some hard numbers behind the contribution that investors are making towards … driving the economy,” says Chris Clothier, a partner with Memphis Invest. “Those investors are driving their local economies by spending billions in repair costs with local electricians, plumbers, flooring companies and laborers.”
Promoting real estate investment
The survey found that lower interest rates and removing financing access limits would provide incentives to investors. Survey respondents said lower interest rates would make active investors more willing to invest in additional properties (70 percent). A distant second was additional tax incentives for capital spent to purchase, rehab or renovate investment properties (54 percent).
Third place went to elimination of limits imposed by lenders on the amount they will lend an investor (46 percent) and fourth to easing of rules on section 1031 Exchanges (44 percent).
Only 30 percent said that the easing of securities laws limiting the pooling of capital by investors for purchases would encourage them to buy more.
© 2012 Florida Realtors®
Wednesday, September 19, 2012
August Existing-Home Sales and Prices Rise
WASHINGTON (September 19, 2012) - Existing-home sales continued to improve in August and the national median price rose on a year-over-year basis for the sixth straight month, according to the National Association of Realtors®.
Total existing-home sales 1 , which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 7.8 percent to a seasonally adjusted annual rate of 4.82 million in August from 4.47 million in July, and are 9.3 percent higher than the 4.41 million-unit level in August 2011.
Lawrence Yun , NAR chief economist, said favorable buying conditions get the credit. "The housing market is steadily recovering with consistent increases in both home sales and median prices. More buyers are taking advantage of excellent housing affordability conditions," he said. "Inventories in many parts of the country are broadly balanced, favoring neither sellers nor buyers. However, the West and Florida markets are experiencing inventory shortages, which are placing pressure on prices."
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 3.60 percent in August from a record low 3.55 percent in July; the rate was 4.27 percent in August 2011.
"The strengthening housing market is occurring even with difficult mortgage qualifying conditions, which is testament to the sizable stored-up housing demand that accumulated in the past five years," Yun added.
The national median existing-home price2 for all housing types was $187,400 in August, up 9.5 percent from a year ago. The last time there were six back-to-back monthly price increases from a year earlier was from December 2005 to May 2006. The August increase was the strongest since January 2006 when the median price rose 10.2 percent from a year earlier.
Distressed homes3 - foreclosures and short sales sold at deep discounts - accounted for 22 percent of August sales (12 percent were foreclosures and 10 percent were short sales), down from 24 percent in July and 31 percent in August 2011. Foreclosures sold for an average discount of 19 percent below market value in August, while short sales were discounted 13 percent.
Total housing inventory at the end August rose 2.9 percent to 2.47 million existing homes available for sale, which represents a 6.1-month supply 4 at the current sales pace, down from a 6.4-month supply in July. Listed inventory is 18.2 percent below a year ago when there was an 8.2-month supply.
The median time on market was 70 days in August, consistent with 69 days in July but down 23.9 percent from 92 days in August 2011. Thirty-two percent of homes sold in August were on the market for less than a month, while 19 percent were on the market for six months or longer.
NAR President Moe Veissi , broker-owner of Veissi & Associates Inc., in Miami, said some buyers are involuntarily sidelined. "Total sales this year will be 8 to 10 percent above 2011, but some buyers are frustrated with mortgage availability. If most of the financially qualified buyers could obtain financing, home sales would be about 10 to 15 percent stronger, and the related economic activity would create several hundred thousand jobs over the period of a year."
First-time buyers accounted for 31 percent of purchasers in August, down from 34 percent in July; they were 32 percent in August 2011.
All-cash sales were unchanged at 27 percent of transactions in August; they were 29 percent in August 2011. Investors, who account for most cash sales, purchased 18 percent of homes in August, up from 16 percent in July; they were 22 percent in August 2011.
Single-family home sales rose 8.0 percent to a seasonally adjusted annual rate of 4.30 million in August from 3.98 million in July, and are 10.0 percent above the 3.91 million-unit pace in August 2011. The median existing single-family home price was $188,700 in August, up 10.2 percent from a year ago.
Existing condominium and co-op sales increased 6.1 percent to a seasonally adjusted annual rate of 520,000 in August from 490,000 in July, and are 4.0 percent above the 500,000-unit level a year ago. The median existing condo price was $176,700 in August, which is 3.3 percent higher than August 2011.
Regionally, existing-home sales in the Northeast rose 8.6 percent to an annual pace of 630,000 in August and are also 8.6 percent above August 2011. The median price in the Northeast was $245,200, up 0.6 percent from a year ago.
Existing-home sales in the Midwest increased 7.7 percent in August to a level of 1.12 million and are 17.9 percent higher than a year ago. The median price in the Midwest was $152,400, up 7.8 percent from August 2011.
In the South, existing-home sales rose 7.3 percent to an annual pace of 1.90 million in August and are 11.1 percent above August 2011. The median price in the region was $160,100, up 6.5 percent from a year ago.
Existing-home sales in the West increased 8.3 percent to an annual level of 1.17 million in August but are unchanged from a year ago. With ongoing inventory shortages, the median price in the West was $242,000, which is 16.3 percent higher than August 2011.
The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
# # #
NOTE: For local information, please contact the local association of Realtors® for data from local multiple listing services. Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology.
1 Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from multiple listing services. Changes in sales trends outside of MLSs are not captured in the monthly series. A rebenchmarking of home sales is done periodically using other sources to assess the overall home sales trend, including sales not reported by MLSs.
Existing-home sales differ from the U.S. Census Bureau's series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90 percent of total home sales, are based on a much larger sample - about 40 percent of multiple listing service data each month - and typically are not subject to large prior-month revisions.
The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.
2 The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed higher by a relatively small share of upper-end transactions. The only valid comparisons for median prices are with the same period a year earlier due to a seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.
3 Distressed sales (foreclosures and short sales), days on market, credit scores, all-cash transactions, investors and first-time buyers and are from a monthly survey for the Realtors® Confidence Index, posted at Realtor.org.
4 Total inventory and month's supply data are available back through 1999, while single-family inventory and month's supply are available back to 1982 (prior to 1999, condos were measured quarterly while single-family sales accounted for more than 90 percent of transactions).
The Pending Home Sales Index for August will be released September 27 and existing-home sales for September is scheduled for October 19; release times are 10:00 a.m. EDT.
Saturday, September 15, 2012
Wealthy Latin Americans desperate to buy in Miami
Miami’s housing market has long benefited from Latin America interest, especially of the Brazilian, Argentinian and Venezuelan varieties. But with Latin American governments cracking down on capital flight, wealthy South Americans are becoming desperate to pump their money into Miami and Manhattan properties, the New York Times reported.
Despite rising condo prices, rich Latin American’s still view Miami and New York as safe places to store their wealth. Political and economic uncertainty within the region’s governments has driven many locals to try and illegally smuggle hundreds of thousands of dollars’ worth of currency into more favorable tax climates. If they can, they are buying sight unseen and, of course, in all cash, according to Jorge Sanchez, a broker with Douglas Elliman that recently flew to Argentina and returned with four sales contracts in Miami’s 60-story Opera Tower.
“They wanted to act fast and get their money out [of Argentina],” Maria Velazquez, a Prudential Douglas Elliman broker, told the Times. “Whoever buys in New York already has four or five apartments in Miami.” [NYT] – Christopher Cameron
Thursday, September 13, 2012
Wealthier homeowners get government-backed loans
Government attempts to stimulate lending have meant that loans to the wealthy are being backed by Fannie Mae and Freddie Mac nearly as often as they are for their working-class counterparts, according to a Reuters report cited by NBC News.
Since the housing crisis, the limit on loans guaranteed by Fannie Mae and Freddie Mac has been bumped by Congress to $729,750 from $417,000, meaning that some homeowners are paying very low interest rates on large amounts of cash.
Critics argue that Fannie and Freddie should only back mortgages for low and middle-income buyers. “Nobody I know buys a house for $600,000 or $700,000 who isn’t affluent,” John Taylor, of the National Community Reinvestment Coalition, said.
But others argue that wealthy investors have come to expect government-backed loans and that it would be unfair and damaging to the economy to change that now. “We’ve had government support for housing finance for 75 years. You can’t just pull the rug out from under that,” John Campbell, a Republican congressman, said. [NBC News] – Christopher Cameron
South Beach hotel lists for $5.5 million
South Florida initial foreclosure filings hit 22-month high in August
The summer foreclosure processing lull appears to be over, as foreclosure filings in South Florida rose 49 percent from July to August, and 12 percent over the same period in 2011, according to a new report from foreclosure analytics firm RealtyTrac.
The biggest jump came for initial filings, the first step in the foreclosure process, which saw a 110 percent jump from July to August — and the single-highest initial filings total since November 2010, just before the robo-signing scandal that brought foreclosures to a halt.
There were 5,276 initial filings last month, up from 2,515 in July.
“It was a pretty substantial monthly increase in the tri-county area,” said Daren Blomquist, vice president at RealtyTrac. “There were a couple of months where the numbers had decreased, but now we’re seeing that that may not have been a long-term trend.”
There were an overall total of 9,238 properties with foreclosure filings in South Florida in August, after just 6,207 in July.
That was compared to a total of 8,193 filings in August 2011.
Nationally, foreclosure filings increased by 1 percent from July but fell by 15 percent from August 2011.
The sudden surge will not likely bring the region back to 2010 levels, however, when South Florida saw individual months with some 20,000 foreclosure filings.
“Banks are more constrained now,” Blomquist said. “I don’t think we’re going to see a return to the numbers we were seeing in 2009 and 2010. I think this trend will continue for the rest of this year, and then we will see a big increase in properties being taken back by the banks and REOs sometime next year.”
Terranova brokers sale of Ludlam Point apartment community in Miami
The Ludlam Point garden townhome apartment community in Miami has been sold, according to Terranova’s Brett Chwick and David Loewy, who handled the transaction. The 205-unit property is located at 6880 SW 44th Street in Miami. The buyer was Grand Peaks, which is based in Colorado. It is the third multi-family purchase by the firm in South Florida since 2010, following two multi-family buys in Broward County in 2010 and 2011. The seller was Ludlam Apartments, a limited liability company managed by Interdevco. Terms were not disclosed. — Alexander Britell
Ocean House condominium unit in South Beach sells for $6 million
Demand heats up for Broward office properties
Favorable replacement costs are driving up demand for Broward County office properties, according to a third-quarter report from Marcus & Millichap. While leasing vacancy continues to vacillate in the county, the county has an “active” investment market. That hasn’t yet manifested itself in the numbers, but the numbers of properties selling from $1 million to $10 million did rise slightly in the third quarter. The report further projects vacancy to fall by 40 basis points in 2012, as new tenants move in and expand in the market. That should mean a year-end level of 19.7 percent, according to the report. The vacancy rate in Broward County fell 60 basis points in 2011. — Alexander Britell
Wednesday, September 12, 2012
Monday, September 10, 2012
Dizengoff flips Palm Beach units to Jeff Greene affiliate for $13 million
A group of 71 units at the 2560 South Ocean apartment building in Palm Beach has been sold to a company affiliated with developer Jeff Greene for $12.78 million, according to a deed filed last week in Palm Beach County Circuit Court.
The buyer was listed as 2560 S. Ocean, a limited liability company based in Palm Beach. Edward Leevan is listed as the LLC’s managing member. The address for 2560 South Ocean is listed as 95 North County Road in Palm Beach.
That address is the historic Palm Beach post office, which Greene, a onetime Senate candidate, purchased in February 2011. It is also the office of Greene’s Florida Sunshine Investments.
The aforementioned Leevan is a co-manager in 2842 S. Ocean, a limited liability company through which Greene purchased the Omphoy Ocean Resort in Palm Beach in May.
The seller was Israel-based Dizengoff, which paid $6.9 million for the remaining 65 units at the building from MCNA Properties in a bulk deal at the end of 2010. That bulk buyrepresented an $11 million discount off the property’s mortgage.
The 2010 purchase was made through a limited liability company called Dizengoff-Palm Beach. Dizengoff has since purchased several more units in the building.
The property has a total of 94 units.
Continuum South Beach condominium unit sells for $6.6 million
Fannie sells interest in 699 Florida properties
San Diego-based Pacifica Companies has purchased a managing interest in 699 Fannie Mae-owned residential properties throughout Florida, near or at market value, according to an announcement made today by the Federal Housing Finance Agency. The deal closed Sept. 6 when Fannie Mae sold the equity cashflows of a newly created LLC, which held the 699 single-family units, to Pacifica and made it the managing member. Pacifica paid more than $12 million for the managing member interest, representing a rough transaction valuation of $78 million for Fannie Mae and a third party valuation of $81.5 million.
However, Fannie Mae will retain an interest in the LLC’s equity cashflows. Its stake entitles it to receive 90 percent of distributions until approximately $50 million is received, at which point Fannie Mae will split distributions with Pacifica evenly at 50 percent. Pacifica will also receive 20 percent of gross rental income collected from the properties as a management fee. – Christopher Cameron
Friday, September 07, 2012
Rockefeller Group exiting Miami
Miami judge rules against Chinese drywall manufacturer Taishan
Victims of defective Chinese drywall have won another victory, now that a Miami-Dade Circuit Court judge has ruled against drywall manufacturer Taishan, according to the Miami Herald. In combination with its competitor, Knauf Plasterboard Tianjin –which has already agreed to a $200 million settlement – nearly 4,500 homes were contaminated with drywall containing high levels of sulfur in Florida and its surrounding states.
The case was filed by Miami-Dade-based home building firm Lennar who purchased and used large amounts of the bad drywall. Taishan claimed that it was too far removed from the American market to be liable but Judge Joseph Farina ultimately ruled in Lennar’s favor. “We expect this ruling will set a favorable precedent for other homebuilders and victims across the country,” Hilarie Bass, the Greenberg Traurig lawyer representing Lennar, said.[Miami Herald] -– Christopher Cameron
Developer eyes former Miami Arena land: report
Development firm Falcone Group is reportedly in talks to acquire the former site of the Miami Arena, which once housed the Miami Heat and Florida Panthers, according to the Miami Herald. The Herald’s Jose Lambiet reported that developer Glenn Straub has put the site, which is currently a park, on the block. “We know it’s become an important place for residents of Overtown and the downtown neighborhood,” a source told the Herald. “But the property is zoned for 1,400 condos.” The arena was razed in 2008. [Miami Herald] —Alexander Britell
Sawgrass Mills adds two new tenants
LNR and Lynd close on development rights for Mary Brickell project
Developers LNR Property and Lynd have closed on the acquisition of the development rights to Skyline Equities Realty’s former SkyPalace project. The new project, EnV Brickell, will begin construction in September after acquiring equity financing from BlackRock Realty Advisors and a construction loan from Wells Fargo. The 35-story tower is set for completion in 2014. Last week, it was announced that Plaza Construction would build the tower. Skyline will be refunding existing condo deposits for the SkyPalace project at 100 percent. “We continue to identify development opportunities throughout the region,” said Evangeline Gouletas, chairman and CEO of Skyline Equities Realty. — Alexander Britell
South Florida foreclosures up 50 percent in August, year-over-year
There were 4,823 foreclosures filed in South Florida in August this year, according to Condo Vultures, a 43.5 percent increase from the same month a year ago. A majority of the foreclosures, or 2,048 of them, came in Miami-Dade, which has recently over take Broward County to lead South Florida in foreclosure filings. Broward County came in second with 1,511 foreclosures, compared to 1,043 in August of 2011. Palm Beach County ranked third with 1,264, not quite twice as many as the 797 foreclosures it saw in the same month the previous year.
Overall, 31,378 foreclosures were filed in South Florida through the end of August, a 53.2 percent increase from the same period a year ago. Broward accounts for 43.8 percent of all those foreclosure, while Palm Beach and Miami-Dade counties split the remaining foreclosures at 25 and 31.2 percent. — Christopher Cameron
Kendall tract sells for $7 million
Developer plans new pair of Sunny Isles Beach condominium towers
Sunny Isles Beach’s condominium boom is continuing, with two new towers planned by a developer, according to a report from brokerage and consultancy Condo Vultures. The St. Tropez on the Bay IV and V towers bring the total number of South Florida condo towers currently in the works to 59 since the beginning of the real estate downturn. A total of 400 condo units were still unsold from the post-2003 construction boom in Sunny Isles Beach at the end of June. — Alexander Britell
Palm Beach condominium and co-op sales jump 38 percent: report
Saturday, September 01, 2012
REO inventory posts big drop from a year ago
WASHINGTON – Aug. 31, 2012 – The amount of foreclosed homes on banks’ books has dropped by 18 percent in the last year, the Federal Deposit Insurance Corp. reports. The FDIC also says that levels have been dropping since the third quarter of 2010.
As of June 30, banks held $41.7 billion in REO properties – that’s down from $51.2 billion one year prior.
But more foreclosures are likely on the way, a recent report by CoreLogic warns. About 1.3 million homes are in the foreclosure process. While that’s down from 1.5 million reported a year ago, the numbers are still elevated.
Still, while “levels of troubled assets and troubled institutions remain high … they are continuing to improve,” says Martin Gruenberg, FDIC acting chairman.
The improvements are leading more banks to post greater profits and even start to lend more. Lending rose 15 percent compared to last year, according to the FDIC report.
Source: “Bank REO Down 18% From One Year Ago,” HousingWire (Aug. 28, 2012)
© Copyright 2012 INFORMATION, INC. Bethesda, MD (301) 215-4688
As of June 30, banks held $41.7 billion in REO properties – that’s down from $51.2 billion one year prior.
But more foreclosures are likely on the way, a recent report by CoreLogic warns. About 1.3 million homes are in the foreclosure process. While that’s down from 1.5 million reported a year ago, the numbers are still elevated.
Still, while “levels of troubled assets and troubled institutions remain high … they are continuing to improve,” says Martin Gruenberg, FDIC acting chairman.
The improvements are leading more banks to post greater profits and even start to lend more. Lending rose 15 percent compared to last year, according to the FDIC report.
Source: “Bank REO Down 18% From One Year Ago,” HousingWire (Aug. 28, 2012)
© Copyright 2012 INFORMATION, INC. Bethesda, MD (301) 215-4688
Friday, August 31, 2012
Reforms to put more short sales in play
If you’re underwater and facing financial distress, what might Fannie Mae’s and Freddie Mac’s new short sale reform policies mean for you? Potentially a lot — even if you are current on your mortgage payments and never imagined that a short sale and principal reduction could be in the cards.
Here’s what’s involved. Starting Nov. 1, owners whose loans have been purchased or guaranteed by Fannie or Freddie may qualify for a short sale if they fit key hardship criteria including: unemployment; divorce; long-term disability; a change of employment that is more than 50 miles from the current home; a business failure; death of the primary or secondary wage earner; or a natural or man-made disaster.
Short sales allow borrowers and lenders to avoid the crushing costs of foreclosure by bringing in a new purchaser for the house at what is normally a price well below the amount owed to the lender. In a successful sale, the distressed owner receives a write-down of the portion of the principal not covered by the new buyer’s price.
In what could be a far-reaching change, Fannie and Freddie will allow borrowers who are current on their mortgage payments — not seriously delinquent as traditionally required — to qualify for short sales, provided they fit the “hardship” criteria. Borrowers who are considered “most in need,” that is, they are far behind on payments, have depressed credit scores and are facing financial stress, will be eligible for streamlined processing of short sales, involving reduced documentation and much speedier resolutions than usual.
Under rules that took effect in June, loan servicers already are required to operate on fast timelines for short sale requests. They are supposed to respond to borrower requests for short sales within 30 days of receipt of an offer by a purchaser, and must give applicants a final decision within 60 days of receipt of a completed short sale package.
In the past, short sales often have been drawn out and contentious, sometimes taking nine months or more to close. They have also had a high rate of failure and cancellations, when buyers get frustrated and bail out of the transaction after waiting for banks and loan servicers to make decisions and process paperwork. Banks that hold second mortgages or credit lines secured by the house have been another choke point. As lien holders, they can block the entire transaction if they feel they are not being properly compensated along with the first mortgage holder, and have frequently blown up deals with their demands. Under the new Fannie-Freddie rules, second lien holders will be entitled to a maximum of $6,000 out of the proceeds of the sale.
The broadening of short sales to those who are current on their mortgage payments but encountering serious hardships could help huge numbers of underwater homeowners. Though the Federal Housing Finance Agency has no estimates of how many borrowers might be assisted by the change, its acting director, Edward DeMarco, has said that 4.6 million loans in Fannie’s and Freddie’s combined portfolios are underwater, and that approximately four-fifths of these are current on payments.
To Alexis Eldorrado, managing broker of Eldorrado Chicago Real Estate, a firm that specializes in short sales, opening up the market to people who have continued to make on-time payments despite having negative equity “is a very big deal.” Elizabeth Weintraub, a short sale expert and author based in Sacramento, Calif., said she “was blown away” by the revised policies. She added that the new rules won’t solve all the problems, however. For example, banks owed large sums on second mortgages may not be satisfied with the $6,000 maximum payoff to release their liens, even though they know that in a foreclosure their second liens likely would be worthless, as the first lien holder must be paid first.
Among other key changes in Fannie and Freddie short sales:
• Members of the armed forces who receive permanent change-of-status orders and are underwater will be automatically eligible for short sales, even if they are current on their loan payments.
• In states where Fannie and Freddie have the legal right to pursue “deficiencies” when short sale proceeds do not pay off the existing debt, they will waive that right and instead ask borrowers who have sufficient assets or income to make “cash contributions” or execute promissory notes to cover part of the shortfall.
To find out whether your loan is owned by Fannie or Freddie, visit either FannieMae.com/loanlookup or FreddieMac.com/corporate.
Kenneth R. Harney is a syndicated real estate columnist
Wellington draws Miami sized asking prices
Homes with farm-sized lots in Wellington are beginning to command prices similar to those of Miami’s waterfront estates, according to the South Florida Business Journal. A 10,000-square-foot residence, at 13281 South 52nd Place in Wellington, recently listed for $8.9 million. But instead of a yacht dock, this 10-acre property includes a 14-stall barn, staff quarters and an additional six-stall stable. Another 10-acre Wellington property, at 13401 South 55th Street, is asking $9.8 million. The nine-bedroom, 12-bath 20,000-square-foot house includes a guest apartment with an elevator and a tennis court.
The luxury trend will likely to continue in Wellington because of the influence of the nearby Palm Beach Polo Club, according to Martha Jolicoeur, of Illustrated Properties in Wellington. “Eventually anyone who is interested in horses will end up in Wellington.” [SFBJ] –Christopher Cameron
More retail arriving near Lincoln Road
Downtown Miami waterfront condo market sees 20 percent price increase
The waterfront condominium market in downtown Miami saw a 15 percent increase in average sales prices at the halfway point of 2012, according to a new report from One Sotheby’s International Realty. There were a total of 314 waterfront condo transactions in the first six months of 2012, down 12 percent from 356 in the same timeframe in 2011. The average sales price rose to $485,256 from $420,216, with the median sales price rising 20 percent in the same period. The non-waterfront market saw a 26 percent increase in median sales prices in the same period. — Alexander Britell
Miami pending sales rise 31 percent
The total number of single-family and condominium listings that pended in July rose 31 percent compared to the same period in 2011, according to a new report from the Miami Association of Realtors. There were at total of 3,393 listings that pended last month, up from 2,593 in July 2011. The total represented a 2 percent increase compared to June. “Despite very low levels of housing inventory in Miami, pending sales activity continues to increase, a sign that demand will continue to yield strong price appreciation,” said Martha Pomares, 2012 chairman of the board of the Miami Association of Realtors. “We are at a point where we’re seeing a shortage of housing inventory in Miami. We need more supply to satisfy demand.” — Alexander Britell
Hialeah’s Okeechobee Villas apartment complex sells for $8.1 million
The 109-unit Okeechobee Villas in Hialeah has been sold for $8.1 million, according to Marcus & Millichap’s Gregory Matus, vice president and regional manager of the firm’s Fort Lauderdale office. The price represented an average of $74,311 per unit. Marcus & Millichap’s Joseph Thomas and Felipe Echarte represented the seller, a Miami Lakes-based limited liability company. Okeechobee Villas, which is currently 97 percent occupied, is located at 1350 West 6th Avenue in Hialeah. — Alexander Britell
Zilbert International Realty lists 100 Miami Beach’s 100 Palm Avenue for $23.4 million
U.S. foreclosure sales prices gain 6 percent
The average sales price of bank-owned homes or homes in the process of foreclosure in the second quarter rose 6 percent quarter-over-quarter and 7 percent from the second quarter of 2011, according to a report released today by RealtyTrac. The average price comes in at $170,040 and marks the first year-over-year increase in average price since the second quarter of 2010, as well as the biggest year-over-year increase since the fourth quarter of 2006.
“There is a limited supply of available foreclosure inventory to choose from in many markets,” Daren Blomquist, the vice president of RealtyTrac, said in the release. “Given this shortage of supply and the seasonally strong buyer demand in the second quarter, it’s no surprise that the average foreclosure-related sales price increased on both a quarterly and annual basis.”
The amount of foreclosure-related sales dropped in the second quarter to a total of 224,429 — a 12 percent decrease quarter-over-quarter and a 22 percent fall from the second quarter of last year.
Homes in the process of foreclosure or ones that were already bank-owned sold at an average price 32 percent lower than a home not in foreclosure, the study found. This figure is up from a 30 percent discount quarter-over-quarter, as well as a 30 percent discount from the second quarter of 2011.
Pre-foreclosure homes — homes in default or homes scheduled for an auction that are often sold through short sales — traded for an average price of $185,062 in the second quarter. This price shows a 5 percent increase quarter-over-quarter and a 1 percent decline from the same period last year.
In total, sales of homes in some stage of foreclosure marked 23 percent of all residential sales across the nation in the second quarter — up slightly from the first quarter’s 22 percent and up from the 19 percent at the same period last year. — Zachary Kussin
Thursday, August 30, 2012
home sales, housing, re/max
Home sales in the United States have risen for 12 consecutive months on a year-to-year basis, according to the June RE/MAX National Housing Report. Prices have also inched higher for the last five months in a row, according to the report, which covered 53 metropolitan areas. Transaction volume rose 5 percent in the same period, while sales prices jumped 3.7 percent nationally. Available homes for sale also fell 5 percent from May and 27.4 percent from June 2011, creating what the firm called a “seller’s market” in many areas. “Although the housing market has a long way to go to make a full recovery, all signs now show that it’s on the right path and has improved every month so far this year,” RE/MAX CEO Margaret Kelly said. “This selling season is the best in years.” — Alexander Britell
Wednesday, June 13, 2012
Commercial foreclosures increase in Miami-Dade and Broward counties
Miami-Dade and Broward counties showed a surge in commercial real estate foreclosure activity in March and April, with a total of 39 foreclosure filings of $250,000 or more, according to data from Off-Market Radar. There were 24 filings alone in March, seven of which were worth $2 million or more. “While the number of foreclosures has not drastically increased in Miami-Dade and Broward County, the number and percentage of larger deals is accelerating,” said Brian McCarthy, vice president of Off-Market Radar. — Christopher Cameron
Tuesday, June 12, 2012
Canadians are cashing in on the Miami condo market
Former Versace home lists for $125M
Friday, June 08, 2012
Setai condo sells for $7.2 million, almost $3,000 per square foot
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