South Florida home prices continued its five month sequential slide during December 2010, according to the Case-Shiller Home Price Index. Compared with December 2009, homes prices were down 3.7% in December 2010; this is the lowest level since the real estate market crash begain in 2006.
The national home price index fell 2.4% from December of last year; this is a proxy for the US housing market, in our view. On a quarterly basis, the Case-Shiller national home index was dwon 4.1% in 4Q:10 versus 4Q:09.
Also hitting new lows in December 2010 since their respective peaks in 2006/2007 were the following markets: Atlanta, Charlotte, Chicago, Detroit, Las Vegas, Miami, New York, Phoenix, Portland (OR), Seattle and Tampa.
Level Change (%) Change (%) 1-Year Change (%)
U.S. National Index 130.38 -3.9% -1.9% -4.1%
Boston 152.54 -0.1% -1.0% -0.8%
Miami 143.11 -0.5% -0.2% -3.7%
Minneapolis 117.09 -1.3% -2.2% -5.3%
New York 167.86 -0.9% -1.2% -2.3%
Tampa 130.23 -2.6% -0.9% -6.2%
Composite-10 156.26 -0.9% -0.8% -1.2%
Composite-20 142.42 -1.0% -1.0% -2.4%
As a local Relator, I am aware of the trends in the US market as well as in many of the communities in which I specialize. If you are thinking of selling or buying a home, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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, February 26, 2011
Tuesday, February 22, 2011
Homes For Sale: Robert Shiller Thinks US Home Prices Could Drop Significantly
Robert Shiller, of the Case-Shiller Index believes "there's a substantial risk of home prices falling another 15%, 20% or 25% more." Mr. Karl Case, the other person of the famed Case-Shiller Index is quoted as saying, "I see [the market] bouncing along the bottom with a slight negative trend."
What gives these men such pessimistic views? Mr. Shiller referenced the government's expected reduced presence of Fannie Mae and Freddie Mac. We read this as a dearth of funding as these agencies currently provide loan guarantees for about 2/3 of mortgages. The expectation is private mortgage lenders will fill the void at a higher borrowing cost-- this will most likely lead to reduced prices in order to obtain a level of affordability.
The possibility of ending the mortgage tax deduction for many homeowners is another reason for the pessimism. This has been a consistent incentive for home ownership and a factor that has driven demand, in our view.
Another issue is the fragility of the current economic situation in the United States and indeed worldwide. The uncertainty related to current events in the Middle East (e.g., Egypt) and the price stability of oil are of immediate concern in regards to sustained economic growth.
Brad Hunter, chief economist for Metrostudy, a housing market research firm, expects home prices to decline gradually throughout 2011, with markets picking up only when hiring increases substantially.
If you are looking to buy or sell a home, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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
What gives these men such pessimistic views? Mr. Shiller referenced the government's expected reduced presence of Fannie Mae and Freddie Mac. We read this as a dearth of funding as these agencies currently provide loan guarantees for about 2/3 of mortgages. The expectation is private mortgage lenders will fill the void at a higher borrowing cost-- this will most likely lead to reduced prices in order to obtain a level of affordability.
The possibility of ending the mortgage tax deduction for many homeowners is another reason for the pessimism. This has been a consistent incentive for home ownership and a factor that has driven demand, in our view.
Another issue is the fragility of the current economic situation in the United States and indeed worldwide. The uncertainty related to current events in the Middle East (e.g., Egypt) and the price stability of oil are of immediate concern in regards to sustained economic growth.
Brad Hunter, chief economist for Metrostudy, a housing market research firm, expects home prices to decline gradually throughout 2011, with markets picking up only when hiring increases substantially.
If you are looking to buy or sell a home, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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
Monday, February 21, 2011
Homes For Sale: Lenders Require A Bigger Downpayment To Qualify For A Mortgage
Among the many reasons for the slowdown in home sales in the US is lender requirements for a bigger downpayment in order to qualify for a mortgage, in our view. Under "normal" circumstances it is difficult to come up with a downpayment for a home. Given the current economic situation, it becomes even more difficult.
As of the fourth quarter 2010, conventional mortgages required a median downpayment of 22% in nine major US cities, according to the Wall Street Journal and Zillow. These sources state this is the highest it has been since records were kept since 1997 and is up from 20% in 2001. In 2001, banks and lenders began a crawl downward on the downpayment requirement and there was little or no money down payments during the "housing bubble."
With more invest initially, banks and lenders believe their risk is minimized should prices continue to fall. In addition, the increase in downpayment means they have more invested, and thus, less likely to default on the loan.
Borrowers who are having a hard time qualifying for the downpayment are turning to loans for veterans or those backed by the Federal Housing Administration (FHA) that requires a 3.5% downpayment.
Being pre-approved for a mortgage will go a long way in bidding on a home. If you are looking to buy or sell a home, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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
As of the fourth quarter 2010, conventional mortgages required a median downpayment of 22% in nine major US cities, according to the Wall Street Journal and Zillow. These sources state this is the highest it has been since records were kept since 1997 and is up from 20% in 2001. In 2001, banks and lenders began a crawl downward on the downpayment requirement and there was little or no money down payments during the "housing bubble."
With more invest initially, banks and lenders believe their risk is minimized should prices continue to fall. In addition, the increase in downpayment means they have more invested, and thus, less likely to default on the loan.
Borrowers who are having a hard time qualifying for the downpayment are turning to loans for veterans or those backed by the Federal Housing Administration (FHA) that requires a 3.5% downpayment.
Being pre-approved for a mortgage will go a long way in bidding on a home. If you are looking to buy or sell a home, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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
Sunday, February 20, 2011
Homes For Sale: Florida Has The Highest Inventory of Distressed Homes in US; Could Mean a Good Deal for Buyers
This past weekend I was out with clients to view a short sale. In our travels, we came across a home with a sign out front that indicated it was a foreclosure. The client said he was interested "in one of those" as he pointed at the sign. The short sale listing was fine also, he said. He indicated the bank knows it would be a foreclosure soon. His rationale was the lender would be willing to negotiate as though it was indeed already in foreclosure.
With nearly one out of evey four foreclosed properties in the nation, Florida has the nation’s highest inventory of homes in distress, according to data recently released by the Mortgage Bankers Association. “More than 20 percent of all loans in Florida are somewhere past due or somewhere in foreclosure,” said Mike Fratantoni, vice president of the MBA.
What does that mean for those looking to get a "good deal"? I guess, there's no need to look beyond Florida. With the "Baby Boomers" nearing retirement age and the current "buyer's market," we think those seeking a second home or a retirement home will be attracted to Florida.
As a Realtor and Certified Distressed Property Expert, I am uniquely qualified in distressed properties (i.e., short sales and foreclosures). If you are thinking of selling or buying a home, 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
With nearly one out of evey four foreclosed properties in the nation, Florida has the nation’s highest inventory of homes in distress, according to data recently released by the Mortgage Bankers Association. “More than 20 percent of all loans in Florida are somewhere past due or somewhere in foreclosure,” said Mike Fratantoni, vice president of the MBA.
What does that mean for those looking to get a "good deal"? I guess, there's no need to look beyond Florida. With the "Baby Boomers" nearing retirement age and the current "buyer's market," we think those seeking a second home or a retirement home will be attracted to Florida.
As a Realtor and Certified Distressed Property Expert, I am uniquely qualified in distressed properties (i.e., short sales and foreclosures). If you are thinking of selling or buying a home, 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
Thursday, February 10, 2011
Home For Sale: US Housing Back To Pre-Boom Affordability Levels, According To Moody's Analytics
According to Moody's Analytics, home affordability returned to pre-bubble levels in a growing number of U.S. markets over the past year as price declines laid the groundwork for a housing recovery.
By a measure of median home prices to annual household incomes, housing affordability at the end of September 2010 returned or surpassed the average reached in the 1989-2003 period in 47 of 74 markets analyzed. This is significant as most economists believe the rise in housing prices begain in 2003.
According to Moody's, the ratio of home prices to annual household income reached a peak of 2.3 in late 2005. By September 2010 the ratio hit 1.6, matching the lowest level in the 35 years. Moody's pegs the average ratio at 1.9 between 1989 and 2003.
We are not "out of the woods" yet. Many housing analysts expect an additional decline of 5% to 10% in the US housing market before prices reach bottom later this year or early next year. Demand continues to be a problem as potential buyers are worried about the economy as well as lending standards that are tightening.
The real estate market remains dynamic as a whole and individual subsections, such as pockets of South Florida, always seem to be in flux. I am following the market as a whole as well as participating in the South Florida real estate market. Please feel free to contact me in regards to purchasing, selling, renting, leasing or investing in real estate.
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
By a measure of median home prices to annual household incomes, housing affordability at the end of September 2010 returned or surpassed the average reached in the 1989-2003 period in 47 of 74 markets analyzed. This is significant as most economists believe the rise in housing prices begain in 2003.
According to Moody's, the ratio of home prices to annual household income reached a peak of 2.3 in late 2005. By September 2010 the ratio hit 1.6, matching the lowest level in the 35 years. Moody's pegs the average ratio at 1.9 between 1989 and 2003.
We are not "out of the woods" yet. Many housing analysts expect an additional decline of 5% to 10% in the US housing market before prices reach bottom later this year or early next year. Demand continues to be a problem as potential buyers are worried about the economy as well as lending standards that are tightening.
The real estate market remains dynamic as a whole and individual subsections, such as pockets of South Florida, always seem to be in flux. I am following the market as a whole as well as participating in the South Florida real estate market. Please feel free to contact me in regards to purchasing, selling, renting, leasing or investing in real estate.
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, February 9, 2011
Homes For Sale: Is Real Estate A Good Hedge Against Inflation?
The Federal Reserve Chairman was queried by Congress today, with many of the questions surrounding inflation. Many fear the recent "quantitative easing" (i.e., QE) in response to the recession by the Federal Reserve, among other measures by other federal government agencies, will cause inflation. Conventional wisdom holds that real estate is a good way to "beat" inflation as prices tend to rise under inflationary pressure.
An analysis by Andrew Jeffrey of Minyanville, a Website-based investment magazine, seems to indicate home prices have outpaced inflation. He references home prices outpacing the Consumer Price Index (i.e., CPI) during inflationary periods since 1963.
He concludes the 1970's and 1980's showed real estate provided an excellent hedge against inflation. Mr. Jeffrey states real estate investment has been a good inflation hedge, especially during periods of high inflation when other market growth stagnates.
Another interesting point for home buyers and sellers made by Mr. Jeffrey in his article is he says real estate values are not likely to be pushed down in any material way by inflationary pressures.
Home buyers and sellers should be aware of potential changes in the United States real estate market in order to make an educated decision. I am well versed in the South Florida real estate market. Please feel free to contact me in regards to purchasing, selling, renting, leasing or investing in real estate.
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
An analysis by Andrew Jeffrey of Minyanville, a Website-based investment magazine, seems to indicate home prices have outpaced inflation. He references home prices outpacing the Consumer Price Index (i.e., CPI) during inflationary periods since 1963.
He concludes the 1970's and 1980's showed real estate provided an excellent hedge against inflation. Mr. Jeffrey states real estate investment has been a good inflation hedge, especially during periods of high inflation when other market growth stagnates.
Another interesting point for home buyers and sellers made by Mr. Jeffrey in his article is he says real estate values are not likely to be pushed down in any material way by inflationary pressures.
Home buyers and sellers should be aware of potential changes in the United States real estate market in order to make an educated decision. I am well versed in the South Florida real estate market. Please feel free to contact me in regards to purchasing, selling, renting, leasing or investing in real estate.
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
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