Some Encouraging News on Real Estate (Finally)

The S&P Case-Schiller home-price index for June 2010 may show the real estate market is beginning to recover. Karl Case, the co-creator of the index, said he sees, "a lot of positive stuff" in the report on home prices in June 2010.

The Case-Schiller index indicated property values increased 4.2% in June 2010 over June 2009. Mr. Case said the trend has been positive for almost a year.

In a radio interview, Mr. Case said that depending on the economy, he expected the US housing market to stabilize or possibly weaken a little during the next year.

“It generally takes four or five years to stabilize the whole market,” Case said. “We’re into about four now.” If Mr. Case is correct, now might in fact be a good time to purchase a home.

The Index looks at the US market as a whole and there may be sub-pockets that may not move in tandem with the overall market. Nonetheless, the Florida real estate market has been hurt more than other areas of the country as a result of swift price increases during the housing boom years. As such, the long-term value proposition of the Florida real estate market seems promising at current price levels.

I work with buyers, sellers, renters, landlords, investors, etc. Please contact me for all of your South Florida real estate needs.

Michael Friedman

Realtor, Certified Distressed Property Expert (CDPE)

Lang Realty

561-989-2100

Florida's Existing Condo Sales Rise In July 2010

Housing sales in July 2010 plunged 25.5% from the year-ago level. The volume of single family home sales in the United States declined to the lowest level since 1995. No particular region of the U.S. was immune as the Northeast dropped 30%, the Midwest was down 33%, the West was off 23% and the South was down 20%.

Nonetheless there are some areas of activity. The data released by the Florida Realtors showed sales of existing condominiums in Florida rose by 11% in July 2010 over July 2009. The increase in sales did come at a reduced price. The median sales price of condominiums in July 2010 was 20% lower than the $108,500 in July 2009.

As the Florida condominium sales data indicates, there is still real estate sales activity throughout the state. The combination of mortgage rates being at the lowest levels in a very long time and steep price declines in many areas, makes real estate affordability in the state of Florida at the highest level in decades. Those buyers who can afford to purchase a home, now is a good time.

Please feel free to contact me for all of your real estate needs in South Florida.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

New Act Expected To Help Bulk Distressed Condominium Buyers in Florida

The large amounts of housing inventory needs to be reduced in order to prices for begin rising, in my opinion. The increased number of distressed properties has been a major reason for the enlarged inventory of properties. Investors with large amounts of pooled funds can help balance the housing inventory level back towards a normal equilibrium.


The Distressed Condominium Relief Act that took effect on July 1, 2010 should help increase the number of sold distressed condominiums throughout Florida. The new Act is primarily focused on condominium investors, as it pertains to bulk condominium buyers, which is defined as seven or more units within the same condominium project.


Below are some of the features of the new Act:



- Condominium purchasers as defined by the Act will no longer assume liabilities of the original developer. For those buyers who qualify, there is no need to set aside reserves for potential litigation.


- The new Act makes foreclosing lenders liable for 12 months of delinquent association fees when they take possession of the condominium; previously the lender was only responsible for six months.



- Condominium Associations will also be able to collect rent revenue from tenants where owners are not paying association fees. In addition, delinquent home owners could have their use of common area suspended subject to notice and a hearing.


The new Act should help both buyers and sellers. Despite the expectation of slightly increased prices due to the elimination of potential litigation reserves, buyers still have the opportunity to purchase condos at historically low prices. Current owners should get help with the burdens of association fees through the added collection of fees. This should allow for better up keep and improve pricing.


I am and working with and have worked with investors in the past. My Certified Distressed Property Expert (CDPE) designation should help in the buying and selling process. Those seeking to buy or sell bulk distressed condominiums please feel free to contact me.


Michael Friedman

Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty

561-989-2100

Short Sales and Foreclosures Affecting All Housing Segments

The troubled housing loan crisis seemed to begin with the weaker financial borrowers (i.e., sub prime loans). As the sluggish housing market continues, the distressed homeowner seems to fall in every financial category.

To illustrate, in the months after the crash of Lehman Brothers, most of the short sale listings in New York City were outside of the borough of Manhattan. The first step of the foreclosure process is to file a lis pendens. In 2008 there were 334 filings, 724 in 2009 and there have been 382 filed by the end of June 2010.

I am seeing similar trends in the South Florida market as well. The majority of the foreclosure actions are not in what I describe as the "prime" areas. However, there seem to be more short sale listings in the more desirable locations throughout South Florida.

For those seeking to sell their homes in a short sale process, it is best to list the home not too far below the fair market value, provide solid comparables and local market data as support and not submit lowball offers that will most likely waste the lender's time.

As a real estate professional with a Certified Distressed Property Expert and Realtor designation, I can list the home and provide the required back up information. Lenders require listing with a real estate agent for short sales and the homeowner generally does not pay any broker fees (these are most likely being picked up by the lender).

Buyers of short sales should be aware the process may take many months. Therefore, it is adviseable to put a clause in the contact that allows them to nullify the deal after a set amount of time in case the lender drag its heels on a decision.

The short sale process has requirements that need to be met in order for the homeowner to qualify. I have represented both buyers and sellers in regards to distressed properties. Please feel free to contact me for a free consultation.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100

Important Housing Market Factors To Follow

Some of the major issues affecting the housing market are similar around the country. However, real estate is "local." To be most effective, consumers should be working with real estate professionals that are following the local trends.

Among the macro-economic issues for most housing markets are the "bigger picture" items such as the global economic turmoil and the directional swings of the stock market. These factors affect consumer thinking and give indications of the overall economy.

People that are looking to buy, sell, lease, rent or invest in real estate will give great consideration to the following:

1) local labor market
2) demand for property in the area
3) the current inventory of real estate
4) amount of distressed property in the target zone
5) whether or not sellers are realistic

The desirability of the neighborhood and ability of the consumer to afford the home will help determine demand for the subject property. Government statistics can give us some idea of the labor side and information such as days property has been on the market can help determine demand for real estate in a given region.

Inventory level trends can help in figuring out the direction of the overall local market. Rising inventory could mean it's more of a "buyer's market" and low levels of inventory might mean it's a "seller's market" in that area.

The potential influx of distressed properties should mean more potential inventory in the future. Prices in these areas might show deterioration for reasons beyond increasing number of properties for sale.

Homeowners that are "under water" on their mortgage may not list their homes at "realistic" prices in hopes of not "losing money." Some homeowners just can't afford the extra money they would need to fund any potential short fall and/or transactional costs. Other sellers are "unrealistic" in their thinking, whether postive or negative and could affect inventory levels. If sellers believe the market will rebound and "price it into the list price" then it could affect the sales figures in a particular market.

Working with a real estate professional can help in understanding important factors in a local real estate market. An informed consumer can make the best determination for their individual needs.

Please feel free to contact me in regards to real estate in the South Florida market.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100