The South Florida condominium market may be ripe for investors given the current conditions of the market. The large number of foreclosures should be advantageous to those looking to invest in the South Florida market.
As we discussed in a previous article, there are new Acts in place to help the large scale investors. However, there are still deals for smaller investors and homebuyers looking for a favorable price.
Median condo prices fell as follows:
Broward County: 14% year-over-year slide in August 2010 to $73,000
Palm Beach County: 24% year-over-year decrease in August 2010 to $84,900.
Where do we go from here?
Some analysts expect prices to fall another 5% to 10% before reaching a stage of price stabilization. These analysts believe it will take a year or more before prices increase consistently.
Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Wednesday, September 29, 2010
Florida's Palm Beach County's Home Prices Continue To Fall In August 2010
Florida's Palm Beach County has seen median prices fall in August 2010 and some analysts think the trend could continue through the end of 2010.
Florida's Palm Beach County posted 793 sales of existing homes in August 2010, down slightly on a sequential basis and up 5% from August 2009.
The median single-family home price was $227,800 or 7% below August 2009.
The median price of a single-family home dropped 46% since the peak of $421,500 in November 2005.
What has been the main causes?
The high unemployment rate in Florida at double-digit rates, and an excess supply of homes with many foreclosures in the market.
Where do we go from here?
Zillow.com's chief economist said he'd be surprised if the South Florida region's home prices did not hit "bottom" in 2011.
I think it is important to watch the factors we have previously discussed in an article to get a sense of any particular real estate market (i.e., South Florida or Broward County).
Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Florida's Palm Beach County posted 793 sales of existing homes in August 2010, down slightly on a sequential basis and up 5% from August 2009.
The median single-family home price was $227,800 or 7% below August 2009.
The median price of a single-family home dropped 46% since the peak of $421,500 in November 2005.
What has been the main causes?
The high unemployment rate in Florida at double-digit rates, and an excess supply of homes with many foreclosures in the market.
Where do we go from here?
Zillow.com's chief economist said he'd be surprised if the South Florida region's home prices did not hit "bottom" in 2011.
I think it is important to watch the factors we have previously discussed in an article to get a sense of any particular real estate market (i.e., South Florida or Broward County).
Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Florida's Broward County Median Home Prices Fall in August 2010
Florida's Broward County has seen median prices fall in August 2010 and some analysts think the trend could continue through the end of 2010.
Florida's Broward County posted 683 sales of existing homes in August 2010, down 5% on a sequential basis and 16% from August 2009.
The median single-family home price was $206,000 or 5% below August 2009.
The median price of a single-family home dropped 47% since the peak of $391,100 in November 2005.
What has been the main causes?
The high unemployment rate in Florida at double-digit rates, and an excess supply of homes with many foreclosures in the market.
Where do we go from here?
Zillow.com's chief economist said he'd be surprised if the South Florida region's home prices did not hit "bottom" in 2011.
I think it is important to watch the factors we have previously discussed in an article to get a sense of any particular real estate market (i.e., South Florida or Broward County).
Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Florida's Broward County posted 683 sales of existing homes in August 2010, down 5% on a sequential basis and 16% from August 2009.
The median single-family home price was $206,000 or 5% below August 2009.
The median price of a single-family home dropped 47% since the peak of $391,100 in November 2005.
What has been the main causes?
The high unemployment rate in Florida at double-digit rates, and an excess supply of homes with many foreclosures in the market.
Where do we go from here?
Zillow.com's chief economist said he'd be surprised if the South Florida region's home prices did not hit "bottom" in 2011.
I think it is important to watch the factors we have previously discussed in an article to get a sense of any particular real estate market (i.e., South Florida or Broward County).
Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Tuesday, September 28, 2010
July 2010 Case-Shiller Report: US Home Prices Rise 0.6%
The Case-Shiller home price index tracks single-family homes in 20 major US cities. The index showed a 0.6% rise in prices during July 2010 from June 2010. Prices increased 3.2% on a year-over-year basis.
Prices rose in 12 of the 20 markets on a year-over-year comparison during July 2010. The only South Florida market included in the index is Miami; the market was up 0.4% in July 2010 over the previous year, according to the Case-Shiller home price index.
The 3.2% year-over-year increase for July 2010 compares with 4.2% for June 2010. This poses a question for the direction of the US home market:
Are we seeing continued growth or a trend toward slowing year-over-year growth-- thus, leading towards another downturn?
Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Prices rose in 12 of the 20 markets on a year-over-year comparison during July 2010. The only South Florida market included in the index is Miami; the market was up 0.4% in July 2010 over the previous year, according to the Case-Shiller home price index.
The 3.2% year-over-year increase for July 2010 compares with 4.2% for June 2010. This poses a question for the direction of the US home market:
Are we seeing continued growth or a trend toward slowing year-over-year growth-- thus, leading towards another downturn?
Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Saturday, September 25, 2010
August New Homes Sales Still Slow In US
Annual sales of new homes in the United States were only 288,000 in August 2010. Sales were down 29% from a year earlier and were relatively unchanged on a sequential basis. This was the second lowest sales amount for the month of August on record. The median sales price of $204,700 was down 1.2% from August 2009 and the lowest amount since December 2003.
Sales of new homes increased by 54% in the Western portion of the US and they were up 15% in the Northeastern US during August 2010. However, this was offset by a 26% drop in the Midwest and an 11% decline in the South.
Foreclosures and other distressed properties (i.e., short sales), have been putting a damper on pricing and unit sales of new homes. As a result, builders are cutting back on adding new inventory to the market. Although home construction is up 25% from the bottom in April 2009, it is 75% below the peak new construction that took place in January 2006.
The number of unsold new homes in the US was 206,000 in the US as of August 2010. Experts believe this is about 8.6 months worth of supply. Therefore, it seems unlikely that construction will ramp up during the next six to nine months.
What does this mean to those looking to buy a home now?
It is still a buyer's market. Those looking for a new home have many options and can be choosy. However, for the best deals, home buyers should be focused on distressed properties.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Sales of new homes increased by 54% in the Western portion of the US and they were up 15% in the Northeastern US during August 2010. However, this was offset by a 26% drop in the Midwest and an 11% decline in the South.
Foreclosures and other distressed properties (i.e., short sales), have been putting a damper on pricing and unit sales of new homes. As a result, builders are cutting back on adding new inventory to the market. Although home construction is up 25% from the bottom in April 2009, it is 75% below the peak new construction that took place in January 2006.
The number of unsold new homes in the US was 206,000 in the US as of August 2010. Experts believe this is about 8.6 months worth of supply. Therefore, it seems unlikely that construction will ramp up during the next six to nine months.
What does this mean to those looking to buy a home now?
It is still a buyer's market. Those looking for a new home have many options and can be choosy. However, for the best deals, home buyers should be focused on distressed properties.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Wednesday, September 22, 2010
More International Home Buyers In South Florida
I market my properties to a worldwide audience as well as work with international buyers. Non-US clients have become a bigger source of home buyers in the South Florida market recently. I believe the weak US Dollar is among other reasons for the increase in foreign home purchases in South Florida.
Our friends from Canada have been frequent buyers of South Florida homes and we are seeing more Latin and European buyers. I recently spoke with a prospective home buyer from England. We work over the phone and via e-mail in an attempt to narrow down the search for an in person visit. This happens frequently with out of town US buyers, such as those in the New York tri-state area.
A recent survey by the National Association of Realtors brought forth this trend.
The survey stated 65% of Florida Realtors have dealt with an international client in the last 12 months.
Florida Realtors in the survey stated international clients have become a larger part of their business in the past two years (33%). Half of the respondents stated international clients accounted for 25% of their business or less.
Almost 40% of the international client based comes from Canada, according to the survey with 15% from the UK and another 14% from Western Europe. Latin America accounted for another 16% and other countries included Germany, Venezuela, Brazil and France.
Marketing properties to international clients is important, as well as working directly with international buyers. Investors from outside the US have focused on the South Florida real estate market. I am working with some and continue to focus on this important customer segment.
If you are seeking to buy, sell, rent or lease your home, please contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Our friends from Canada have been frequent buyers of South Florida homes and we are seeing more Latin and European buyers. I recently spoke with a prospective home buyer from England. We work over the phone and via e-mail in an attempt to narrow down the search for an in person visit. This happens frequently with out of town US buyers, such as those in the New York tri-state area.
A recent survey by the National Association of Realtors brought forth this trend.
The survey stated 65% of Florida Realtors have dealt with an international client in the last 12 months.
Florida Realtors in the survey stated international clients have become a larger part of their business in the past two years (33%). Half of the respondents stated international clients accounted for 25% of their business or less.
Almost 40% of the international client based comes from Canada, according to the survey with 15% from the UK and another 14% from Western Europe. Latin America accounted for another 16% and other countries included Germany, Venezuela, Brazil and France.
Marketing properties to international clients is important, as well as working directly with international buyers. Investors from outside the US have focused on the South Florida real estate market. I am working with some and continue to focus on this important customer segment.
If you are seeking to buy, sell, rent or lease your home, please contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
A Delray Beach Rental Listing; Real Estate Search Engine
http://bit.ly/9gpQ67 <--please copy and paste into your Web browser
http://www.viewmylisting.com/property-for-sale/fl/delray-beach/3122-palm-dr/2670399/
Above is a link that will bring you to a listing in Delray Beach, Florida.
Two bedroom, two bathroom single family home offered to be rented on an annual basis-- click link above for pictures and more details.
If the home is not what you are looking for, but you are in the market to buy, sell, rent or lease a home:
The link below will bring you to a Webpage where you can search for listings.
http://bit.ly/aSVDo3 <--please copy and paste into Web browser
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217
Please contact me for futher information
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
http://www.viewmylisting.com/property-for-sale/fl/delray-beach/3122-palm-dr/2670399/
Above is a link that will bring you to a listing in Delray Beach, Florida.
Two bedroom, two bathroom single family home offered to be rented on an annual basis-- click link above for pictures and more details.
If the home is not what you are looking for, but you are in the market to buy, sell, rent or lease a home:
The link below will bring you to a Webpage where you can search for listings.
http://bit.ly/aSVDo3 <--please copy and paste into Web browser
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217
Please contact me for futher information
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Sunday, September 19, 2010
Housing Market- A Look At Income And Valuations
There has been so much written and talked about concerning when the housing market will reach the bottom. One way of valuing real estate is to compare it with income.
Ned Davis research and CNBC published a chart recently that looked at valuation ratios of home prices to median income from 11/30/1976 to 3/31/2010. The chart showed a high of about 5.2 times in 2005 and a low of about 3.5 times on during the 1983 recession.
The mean valuation multiple was 4.1 times during the period described above. As of March 2010, the ratio stood at 4.3 times. The recent stabilization can be attributed to the recent federal government intervention.
Does this mean we are near the bottom as we approach the mean valuation multiple?
Well, a few factors should be discussed. One is the federal government has let some of its incentive programs expire, such as the first time homebuyer credit.
Another factor is psychology of the consumer. With unemployement holding steady in the mid-9% range and continued increases in distressed properties could damage consumer sentiment. The most recent US Consumer Sentiment Index hit 66.6 in September from 68.9 in August; this was the lowest level in a year.
With the housing bubble continuing to deflate, unemployment being at sustained high historic levels and tougher lending requirements, it's not unlikely that we will see the valuation multiple dip below the average in the near-term.
Nonetheless, if you are a first time homebuyer and plan to live in the home for a sustained period of time, now might be a good time to purchase a home. If interested, please see our post on the advantages of homeownership versus renting. Mortgage rates are near historical lows and it is still a buyer's market.
Please feel free to contact me about South Florida real estate. I represent buyers, sellers, renters and landlords. I also work with distressed homeowners and investors.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
Ned Davis research and CNBC published a chart recently that looked at valuation ratios of home prices to median income from 11/30/1976 to 3/31/2010. The chart showed a high of about 5.2 times in 2005 and a low of about 3.5 times on during the 1983 recession.
The mean valuation multiple was 4.1 times during the period described above. As of March 2010, the ratio stood at 4.3 times. The recent stabilization can be attributed to the recent federal government intervention.
Does this mean we are near the bottom as we approach the mean valuation multiple?
Well, a few factors should be discussed. One is the federal government has let some of its incentive programs expire, such as the first time homebuyer credit.
Another factor is psychology of the consumer. With unemployement holding steady in the mid-9% range and continued increases in distressed properties could damage consumer sentiment. The most recent US Consumer Sentiment Index hit 66.6 in September from 68.9 in August; this was the lowest level in a year.
With the housing bubble continuing to deflate, unemployment being at sustained high historic levels and tougher lending requirements, it's not unlikely that we will see the valuation multiple dip below the average in the near-term.
Nonetheless, if you are a first time homebuyer and plan to live in the home for a sustained period of time, now might be a good time to purchase a home. If interested, please see our post on the advantages of homeownership versus renting. Mortgage rates are near historical lows and it is still a buyer's market.
Please feel free to contact me about South Florida real estate. I represent buyers, sellers, renters and landlords. I also work with distressed homeowners and investors.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
Tuesday, September 14, 2010
A Few Words On Real Estate Investments
With some signs the South Florida real estate market may be "bottoming out", we take a look at real estate investing. Having experience with investments and learning from the past, we look at a few ideas to keep in mind going forward.
As with most business ventures, one must think about an exit strategy. Seek out properties that will have some sort of utility regardless of market conditions. This will give you options in the future and mitigate downside risk. For instance, does the property have good re-sale features. Could the property be leased quickly or are there lease restrictions.
Do not count on price appreciation as a reason to purchase. Investors should pay close attention to cash flows and not so much on price speculation. Those who build new homes build "on spec" prior to the downturn can attest.
Try to aim for an adequate return on investment. Some have quoted a "rule of thumb" to pay no more than 1.5% to 3.0% of the annual rent. One must also be aware of other factors as discussed in earlier pieces.
Try to limit your use of leverage (i.e., borrowing). The property's purchase price should not exceed 70% of the value of the home in an adequate state of repair. Many investors purchased homes during the past several years and then put in even more money to fix and remodel. The additional costs beyond the purchase price exacerbated a bad situation in what has become a declining market.
I work with owners looking to sell, those buying a first or second home, investors, landlords and those seeking rentals. Please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
As with most business ventures, one must think about an exit strategy. Seek out properties that will have some sort of utility regardless of market conditions. This will give you options in the future and mitigate downside risk. For instance, does the property have good re-sale features. Could the property be leased quickly or are there lease restrictions.
Do not count on price appreciation as a reason to purchase. Investors should pay close attention to cash flows and not so much on price speculation. Those who build new homes build "on spec" prior to the downturn can attest.
Try to aim for an adequate return on investment. Some have quoted a "rule of thumb" to pay no more than 1.5% to 3.0% of the annual rent. One must also be aware of other factors as discussed in earlier pieces.
Try to limit your use of leverage (i.e., borrowing). The property's purchase price should not exceed 70% of the value of the home in an adequate state of repair. Many investors purchased homes during the past several years and then put in even more money to fix and remodel. The additional costs beyond the purchase price exacerbated a bad situation in what has become a declining market.
I work with owners looking to sell, those buying a first or second home, investors, landlords and those seeking rentals. Please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
Sunday, September 12, 2010
8/2 Post: Factors To Follow: An Update
In our 8/2 Housing Factors to Follow article, we mentioned housing demand as a metric to track. With more people entering a particular area, there should be more demand for housing.
According to US Census Bureau figures, South Florida's population rose between 2000 and 2009. More recent data is encouraging. A report by the University of Florida found 56,000 people left Florida during 2008 and 2009. However, during the past year, Florida's population grew by 21,000. The largest gains were seen in Miami-Dade and Broward counties.
The 2010 US census data is scheduled to be released next year. If we continue to see an influx of population to South Florida, along with an improving economy, we should start to see an improvement in the housing market.
For those thinking of buying, selling or renting a home in South Florida, feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
According to US Census Bureau figures, South Florida's population rose between 2000 and 2009. More recent data is encouraging. A report by the University of Florida found 56,000 people left Florida during 2008 and 2009. However, during the past year, Florida's population grew by 21,000. The largest gains were seen in Miami-Dade and Broward counties.
The 2010 US census data is scheduled to be released next year. If we continue to see an influx of population to South Florida, along with an improving economy, we should start to see an improvement in the housing market.
For those thinking of buying, selling or renting a home in South Florida, feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
Friday, September 3, 2010
Some Inexpensive Ideas For Labor Day Weekend 2010 In South Florida
Beyond South Florida's wonderful beaches is great food, museums, night life and recreational facilities.
Visitors and locals can enjoy the lifestyle of South Florida without blowing the budget.
Below are a few of links that have some inexpensive ideas for Labor Day weekend 2010 in South Florida.
http://bit.ly/cMUEzH
http://bit.ly/bGbh9k
http://bit.ly/972qOP
Safe and happy long weekend.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
Visitors and locals can enjoy the lifestyle of South Florida without blowing the budget.
Below are a few of links that have some inexpensive ideas for Labor Day weekend 2010 in South Florida.
http://bit.ly/cMUEzH
http://bit.ly/bGbh9k
http://bit.ly/972qOP
Safe and happy long weekend.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
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