According to Zillow, US home values fell faster in 1Q:11 than they have in any quarter since 2008. Zillow's Home Value Index fell 3.0% sequentially from 4Q:10 to 1Q:11 and declined 8.2% on a year-over-year basis. The average home in the United States now costs $169,600, according to Zillow, and values have fallen 29.5% from the market's peak in June 2006.
Zillow estimates more than one in four homes in the United States is underwater. Zillow pegs 28.4% of single-family homes with mortgages were underwater at the end of 1Q:11, this is up from 27.0% in 4Q:10. A homeowner is underwater when they owe more on their mortgage than their home is worth.
The increase in underwater homes are fueling foreclosures. In March 2011, one out of every 1,000 homes in the country was foreclosed upon by the lender, according to Zillow. With the increase in distressed properties, I think short sales will pick up as well. As a Certified Distressed Property Expert (CDPE) and a Realtor, I am uniquely qualified to help home sellers in this unusual housing market.
To receive more information, feel free to text me or call me at the number below.
If you are thinking of selling or buying a home, or require more information, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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
Showing posts with label Market Housing. Show all posts
Showing posts with label Market Housing. Show all posts
Saturday, May 14, 2011
Tuesday, April 26, 2011
Homes For Sale: Homes For Rent: Case-Shiller Index Update February 2011
United States residential home prices have dropped during the 12 months to February 2011, according to the Case-Shiller Index. The Case-Shiller Index of property values in 20 cities fell 3.3% from February 2010.
The continuation of distressed properties (e.g., foreclosures) are weighing on the prices of homes in the US. “There is very little, if any, good news about housing,” David Blitzer, chairman of the Case-Shiller index committee at S&P, said in a statement. “The 20-city composite is within a hair’s breadth of a double-dip.”
The Miami component of the index saw prices fall 6.2% on a year-over-year basis in February 2011 and Tampa was down 6.0%. On a sequential basis the two segments fell 2.0% and 1.2%, respectively.
Some areas of interest are as follows:
February 2011 February/January January '11/ December '10
Metropolitan Area Level Change (%) Change (%) 1-Year Change (%)
Boston 149.86 -1.5% -0.2% -1.0%
Chicago 113.26 -2.2% -1.8% -7.6%
Miami 138.44 -2.0% -1.3% -6.2%
Minneapolis 109.93 -3.1% -3.3% -8.3%
New York 165.19 -0.5% -1.0% -3.1%
Tampa 128.38 -1.2% -0.5% -6.0%
Composite-10 152.70 -1.1% -1.0% -2.6%
Composite-20 139.27 -1.1% -1.1% -3.3%
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.
To receive more information on properties in the area, feel free to text me or call me at the number below.
If you are thinking of selling or buying a home, or require more information, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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
The continuation of distressed properties (e.g., foreclosures) are weighing on the prices of homes in the US. “There is very little, if any, good news about housing,” David Blitzer, chairman of the Case-Shiller index committee at S&P, said in a statement. “The 20-city composite is within a hair’s breadth of a double-dip.”
The Miami component of the index saw prices fall 6.2% on a year-over-year basis in February 2011 and Tampa was down 6.0%. On a sequential basis the two segments fell 2.0% and 1.2%, respectively.
Some areas of interest are as follows:
February 2011 February/January January '11/ December '10
Metropolitan Area Level Change (%) Change (%) 1-Year Change (%)
Boston 149.86 -1.5% -0.2% -1.0%
Chicago 113.26 -2.2% -1.8% -7.6%
Miami 138.44 -2.0% -1.3% -6.2%
Minneapolis 109.93 -3.1% -3.3% -8.3%
New York 165.19 -0.5% -1.0% -3.1%
Tampa 128.38 -1.2% -0.5% -6.0%
Composite-10 152.70 -1.1% -1.0% -2.6%
Composite-20 139.27 -1.1% -1.1% -3.3%
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.
To receive more information on properties in the area, feel free to text me or call me at the number below.
If you are thinking of selling or buying a home, or require more information, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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, April 14, 2011
Homes For Sale: Reasons To Be Optimistic About US Housing Market: Part III
Some experts expect a rise in non-distressed markets when compared with the distressed markets because they do not need to work through a big inventory overhang.
In non-distressed markets the existing home inventory is lower, with some studies putting it at seven months worth of inventory. The theory holds that moderate increase in demand will translate into strong gains in both prices and new construction.
Moody's Analytics expects prices will rise three to four points faster than inflation for the next few years in virtually every non-distressed US home market. Moody's believes prices will increase in line with rents, which are now growing quickly because of a tightening of supply.
Please see our previous posts on individual US housing markets. Also, we argue that even in distressed markets there are strong sub-markets that have not had as big of an impact. We think these areas are also ripe for a rebound in line with the non-distressed markets.
If you are thinking of selling or buying a home, or require more information, please feel free to contact me. Please text me your name, phone number and e-mail address to the number below and I will provide information requested.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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
In non-distressed markets the existing home inventory is lower, with some studies putting it at seven months worth of inventory. The theory holds that moderate increase in demand will translate into strong gains in both prices and new construction.
Moody's Analytics expects prices will rise three to four points faster than inflation for the next few years in virtually every non-distressed US home market. Moody's believes prices will increase in line with rents, which are now growing quickly because of a tightening of supply.
Please see our previous posts on individual US housing markets. Also, we argue that even in distressed markets there are strong sub-markets that have not had as big of an impact. We think these areas are also ripe for a rebound in line with the non-distressed markets.
If you are thinking of selling or buying a home, or require more information, please feel free to contact me. Please text me your name, phone number and e-mail address to the number below and I will provide information requested.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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, April 13, 2011
Homes For Sale: Reasons To Be Optimistic About US Housing Market: Part II
Another reason to be more optimistic about the US Housing market is affordability of purchasing a home. The theory is as buying a home becomes more affordable when compared with renting, Americans will be lured back to the real estate market.
Home prices declined about 30% nationwide since 2006 and some of the hardest hit markets fell as much as 55%. The dramatic price reduction logically assumes homes are more "affordable" then they were a few years ago.
A recent study by Deutche Bank measures affordability in two ways: share of income Americans pay to own a home; and the cost of owning versus renting.
The analysis shows homeowners now pay 9.8% of thier income in after-tax mortgage, tax and insurance; this compares with 17.2% at the peak in 2007.
Also, the study found that in 28 out of 54 major housing markets it's now cheaper to pay a mortgage and other major costs than to rent the same home. In the distressed US markets, the study found owning a home costs less than renting by a wide margin. For example, it is 34% less to own a home than renting in Atlanta, according to Deutche Bank. In Miami, the study states, the average rent is $1,031 per month versus $856 per month it costs to carry a ranch house or stucco cottage as an owner.
The recent increase in investors that I am working with seems to indicate there is a spread between rents and the cost to own.
If you are thinking of selling or buying a home, or require more information, please feel free to contact me. Please text me your e-mail address to the number below and I will provide information requested.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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
Home prices declined about 30% nationwide since 2006 and some of the hardest hit markets fell as much as 55%. The dramatic price reduction logically assumes homes are more "affordable" then they were a few years ago.
A recent study by Deutche Bank measures affordability in two ways: share of income Americans pay to own a home; and the cost of owning versus renting.
The analysis shows homeowners now pay 9.8% of thier income in after-tax mortgage, tax and insurance; this compares with 17.2% at the peak in 2007.
Also, the study found that in 28 out of 54 major housing markets it's now cheaper to pay a mortgage and other major costs than to rent the same home. In the distressed US markets, the study found owning a home costs less than renting by a wide margin. For example, it is 34% less to own a home than renting in Atlanta, according to Deutche Bank. In Miami, the study states, the average rent is $1,031 per month versus $856 per month it costs to carry a ranch house or stucco cottage as an owner.
The recent increase in investors that I am working with seems to indicate there is a spread between rents and the cost to own.
If you are thinking of selling or buying a home, or require more information, please feel free to contact me. Please text me your e-mail address to the number below and I will provide information requested.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
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, March 22, 2011
Homes For Sale: 1Q:2011: Vacant US Homes and Vacant Florida Homes
The US housing recovery will most likely be on hold for years. There are many reasons as to why, however, one that is becoming more glaring is the amount of vacant homes in the United States. The oversupply of homes should depress new home builds and take a while for the market to return to an equilibrium between supply and demand.
In March 2011, the US Census Bureau revealed that 1.6 million homes in Florida are vacant-- that is 18% of the total. The number of vacant homes increased 63% during the past 10 years.
Florida is the worst state in the nation for vacant homes; Arizona sits at 16%; Nevada is 14% and California is only 8%.
The worst hit county in the state of Florida is Collier, the home of Naples, which stands at 32% of the total homes being empty. Palm Beach comes in at 18%; Broward is 16%; and Miami-Dade is 12%.
The median home in Florida sold for $122,000 in January 2011, which is down 7% from 12 months earlier; this is less than half the price reached at the market peak. The oversupply and reduced influx of people to Florida are reasons to be cautious about the market. During the decade of 2000, the state saw just 5.7% population growth in the second half; the decade had a nearly 18% increase of population during the decade.
The aforementioned statistics are why some real estate experts think it will take a while for the Sunshine State's housing market to appreciate in price. One expert is quoted as saying it taking eight years for the vacancy numbers to reach single digits.
Ingo Winzer, a market analyst for Local Market Monitor is quoted as saying prices will drop another 5% in 2011 and an additional 3% in 2012. Celia Chen, a market analyst for Moody's Analytics says prices will fall another 11% and the bottom won't hit until mid-2012 for Florida; she predicts a market bottom for the United States during mid-2011.
If you are thinking of selling or buying a home, or require more information, 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>
In March 2011, the US Census Bureau revealed that 1.6 million homes in Florida are vacant-- that is 18% of the total. The number of vacant homes increased 63% during the past 10 years.
Florida is the worst state in the nation for vacant homes; Arizona sits at 16%; Nevada is 14% and California is only 8%.
The worst hit county in the state of Florida is Collier, the home of Naples, which stands at 32% of the total homes being empty. Palm Beach comes in at 18%; Broward is 16%; and Miami-Dade is 12%.
The median home in Florida sold for $122,000 in January 2011, which is down 7% from 12 months earlier; this is less than half the price reached at the market peak. The oversupply and reduced influx of people to Florida are reasons to be cautious about the market. During the decade of 2000, the state saw just 5.7% population growth in the second half; the decade had a nearly 18% increase of population during the decade.
The aforementioned statistics are why some real estate experts think it will take a while for the Sunshine State's housing market to appreciate in price. One expert is quoted as saying it taking eight years for the vacancy numbers to reach single digits.
Ingo Winzer, a market analyst for Local Market Monitor is quoted as saying prices will drop another 5% in 2011 and an additional 3% in 2012. Celia Chen, a market analyst for Moody's Analytics says prices will fall another 11% and the bottom won't hit until mid-2012 for Florida; she predicts a market bottom for the United States during mid-2011.
If you are thinking of selling or buying a home, or require more information, 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>
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
Sunday, January 30, 2011
Homes For Sale: Case-Shiller Index: November 2010; US Real Estate Market Continues Weakness as Does Florida
According to the Case-Shiller Index, for the most-part, US housing prices are not appreciating. Home prices in the Florida markets reported on continue to slide. We think general economic conditions are largely to blame-- such as increased levels of unemployment and lack of income growth prospects.
Looking at the United States as a whole, the Case-Shiller Index report states: “Looking at the monthly statistics, 19 of 20 MSAs and both Composites were down in November over October. Fourteen MSAs and both composites have posted at least four consecutive months of decline with November’s report." Therefore, on a sequential basis, the market as a whole remains soft and in decline.
When focusing on the Florida market, two of the nine overall markets hitting their lowest levels since home prices peaked were in Florida: Miami and Tampa. The others were: Atlanta, Charlotte, Chicago, Detroit, Las Vegas,Portland (OR), and Seattle and Tampa. These markets hit their lowest levels since home prices peaked in 2006 and 2007, meaning that average home prices in those markets have fallen even further than the lows set in the spring of 2009. Again, we see the state of Florida continuing to show a weak real estate market.
Looking at markets of interest:
November 2010 November/October October/September
Metropolitan Area Level Change (%) Change (%) 1-Year Change (%)
Boston 152.76 -1.0% -1.2% -0.8%
Miami 143.81 -0.2% -1.1% -3.5%
New York 169.75 -1.0% -1.6% -1.7%
Tampa 134.05 -0.8% -1.0% -4.0%
Composite-10 157.68 -0.8% -1.3% -0.4%
Composite-20 143.85 -1.0% -1.3% -1.6%
With the economy not showing signs of job growth, continued uncertainty and tight credit markets, we suspect a tough slog for the US housing market as a whole.
When focusing on the South Florida market, the trends seem to be worse when compared with the nation as a whole. This is exacerbated by the higher level of distressed properties in the market as well as an economy largely based on construction and discretionary income spending.
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
561-989-2100
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
Looking at the United States as a whole, the Case-Shiller Index report states: “Looking at the monthly statistics, 19 of 20 MSAs and both Composites were down in November over October. Fourteen MSAs and both composites have posted at least four consecutive months of decline with November’s report." Therefore, on a sequential basis, the market as a whole remains soft and in decline.
When focusing on the Florida market, two of the nine overall markets hitting their lowest levels since home prices peaked were in Florida: Miami and Tampa. The others were: Atlanta, Charlotte, Chicago, Detroit, Las Vegas,Portland (OR), and Seattle and Tampa. These markets hit their lowest levels since home prices peaked in 2006 and 2007, meaning that average home prices in those markets have fallen even further than the lows set in the spring of 2009. Again, we see the state of Florida continuing to show a weak real estate market.
Looking at markets of interest:
November 2010 November/October October/September
Metropolitan Area Level Change (%) Change (%) 1-Year Change (%)
Boston 152.76 -1.0% -1.2% -0.8%
Miami 143.81 -0.2% -1.1% -3.5%
New York 169.75 -1.0% -1.6% -1.7%
Tampa 134.05 -0.8% -1.0% -4.0%
Composite-10 157.68 -0.8% -1.3% -0.4%
Composite-20 143.85 -1.0% -1.3% -1.6%
With the economy not showing signs of job growth, continued uncertainty and tight credit markets, we suspect a tough slog for the US housing market as a whole.
When focusing on the South Florida market, the trends seem to be worse when compared with the nation as a whole. This is exacerbated by the higher level of distressed properties in the market as well as an economy largely based on construction and discretionary income spending.
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
561-989-2100
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
Sunday, January 9, 2011
Case-Shiller Index For October 2010: US Real Estate Market Showing Signs of a "Double Dip"?
The Case-Shiller Index for October 2010 showed some ominous signs for the US real estate market.
US home prices have shown a deceleration in annual growth rates for 18 of the 20 City Composites when comparing October 2010 with September 2010.
The news for the Florida market is showing sustained weakness when compared with the overall United States market. The Miami and Tampa composite housing prices have hit their lowest levels since 2006, which seems to indicate these markets have been weaker than the US composite as a whole.
On a year-over-year basis, home sales are down about 25% and the months' supply of unsold homes is up more than 50%. The US economy continued to be in a malaise during October 2010 and the unemployment rate continued to hover close to 10%.
Some data of interest:
October 2010 October/September September/August 1-Year Change (%)
Boston -1.2% -1.3% -0.2%
Miami -1.1% -1.2% -3.4%
New York -1.6% -0.5% -1.7%
Tampa -0.9% -0.8% -3.6%
Composite-10 -1.2% -0.6% 0.2%
Composite-20 -1.3% -0.8% -0.8%
With the economy not showing signs of job growth, continued uncertainty and tight credit markets, we suspect a tough slog for the US housing market as a whole.
When focusing on the South Florida market, the trends seem to be worse when compared with the nation as a whole. This is exacerbated by the higher level of distressed properties in the market as well as an economy largely based on construction and discretionary income spending.
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
561-989-2100
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
US home prices have shown a deceleration in annual growth rates for 18 of the 20 City Composites when comparing October 2010 with September 2010.
The news for the Florida market is showing sustained weakness when compared with the overall United States market. The Miami and Tampa composite housing prices have hit their lowest levels since 2006, which seems to indicate these markets have been weaker than the US composite as a whole.
On a year-over-year basis, home sales are down about 25% and the months' supply of unsold homes is up more than 50%. The US economy continued to be in a malaise during October 2010 and the unemployment rate continued to hover close to 10%.
Some data of interest:
October 2010 October/September September/August 1-Year Change (%)
Boston -1.2% -1.3% -0.2%
Miami -1.1% -1.2% -3.4%
New York -1.6% -0.5% -1.7%
Tampa -0.9% -0.8% -3.6%
Composite-10 -1.2% -0.6% 0.2%
Composite-20 -1.3% -0.8% -0.8%
With the economy not showing signs of job growth, continued uncertainty and tight credit markets, we suspect a tough slog for the US housing market as a whole.
When focusing on the South Florida market, the trends seem to be worse when compared with the nation as a whole. This is exacerbated by the higher level of distressed properties in the market as well as an economy largely based on construction and discretionary income spending.
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
561-989-2100
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
Monday, December 6, 2010
US / South Florida Real Estate Market To Rebound in 2011?
Sales of existing homes in the US sequentially increased 10.4% during October 2010, according to the National Association of Realtors. This is the biggest gain in the nine-year history of the measurement.
Does this mean the worst is behind us and houses will begin selling at a more robust pace and at higher prices? Or is this a positive number that is being taken out of context?
The positive thinker will point to what seems to be an improving US economy (although slow growth), coupled with low mortgage rates are spurring those on the sidelines to enter the market. With the Federal Reserve recently indicating it will continue its monetary easing, it is likely mortgage rates will remain low. The low rates and many distressed properties offer the perception that now might be offering a once in a lifetime opportunity to purchase a home.
The more pessimistic view is that the number is one data point, and when compared with several years ago, is still not an indication of strong demand. With the supply of houses in the market, a sustained recovery in prices is far in the future, according to a more dampened view of the data.
With the recent increase in US unemployment to 9.8%, from 9.6%, we think the more pessimistic view is more realistic. The economy may be more stable when compared with a year ago; but, there are not enough jobs being created to substantially increase demand, in our view. In addition, the believed oversupply of homes in the market means there should not be much in the way of robust price increases during the 12 months, in our view.
If you are buying or selling a home, please feel free to contact me.
I have provided a link to a property search engine below where you can find and view listings. Contact me for more details on those listings and/or information in the area.
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
Does this mean the worst is behind us and houses will begin selling at a more robust pace and at higher prices? Or is this a positive number that is being taken out of context?
The positive thinker will point to what seems to be an improving US economy (although slow growth), coupled with low mortgage rates are spurring those on the sidelines to enter the market. With the Federal Reserve recently indicating it will continue its monetary easing, it is likely mortgage rates will remain low. The low rates and many distressed properties offer the perception that now might be offering a once in a lifetime opportunity to purchase a home.
The more pessimistic view is that the number is one data point, and when compared with several years ago, is still not an indication of strong demand. With the supply of houses in the market, a sustained recovery in prices is far in the future, according to a more dampened view of the data.
With the recent increase in US unemployment to 9.8%, from 9.6%, we think the more pessimistic view is more realistic. The economy may be more stable when compared with a year ago; but, there are not enough jobs being created to substantially increase demand, in our view. In addition, the believed oversupply of homes in the market means there should not be much in the way of robust price increases during the 12 months, in our view.
If you are buying or selling a home, please feel free to contact me.
I have provided a link to a property search engine below where you can find and view listings. Contact me for more details on those listings and/or information in the area.
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
Sunday, October 31, 2010
August 2010: US Property Values Continue To Fall; Florida In Top Five States
According to CoreLogic, a company that analyzes the real estate market, 78 of 100 metropolitan areas experienced year-over-year price declines in August 2010; this compares with 58 in July 2010.
Some states actually showed a price increase.
The five states with the highest price increase in August 2010 was as follows:
Maine up 5.8%
New York up 3.7%
Connecticut up 2.5%
Virginia up 2.4%
South Dakota up 2.1%
The majority of the states encountered a price decrease.
The five states with the biggest price decline in August 2010 was as follows:
Idaho down 14.0%
Alabama down 10.4%
Utah down 7.3%
Oregon down 6.3%
Florida down 6.2%
The decline in home prices in the United States from the peak in April 2006 until August 2010 was 28.2%. If distressed properties were not included in the calculation then home prices were down 19.6%, according to CoreLogic.
Please feel free to post an opinion or question and we will try to address them in future posts.
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
Some states actually showed a price increase.
The five states with the highest price increase in August 2010 was as follows:
Maine up 5.8%
New York up 3.7%
Connecticut up 2.5%
Virginia up 2.4%
South Dakota up 2.1%
The majority of the states encountered a price decrease.
The five states with the biggest price decline in August 2010 was as follows:
Idaho down 14.0%
Alabama down 10.4%
Utah down 7.3%
Oregon down 6.3%
Florida down 6.2%
The decline in home prices in the United States from the peak in April 2006 until August 2010 was 28.2%. If distressed properties were not included in the calculation then home prices were down 19.6%, according to CoreLogic.
Please feel free to post an opinion or question and we will try to address them in future posts.
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
Thursday, October 28, 2010
The US Foreclosure Fiasco And What It Means For The Market
The recent stalling of foreclosure actions stems from procedural problems.
Affidavits lenders file in regards to summary judgment foreclosures states certain facts that the signer indicates personal knowledge of. An example would be the amount owed on the mortgage. The affidavits are submitted as fact with respect to the summary judgment process.
The problem arose when depositions taken by lawyers for homeowners showed GMAC and Chase Bank did not have adequate time to review and certify all the facts. A review by these attorneys showed the lenders signed more than 10,000 affidavits in regards to foreclosure action in one month.
The issue will most likely slow down the eviction process just when lenders started to make progress in getting through their respective "distressed property" backlog. In August 2010 lenders started 283,000 foreclosures, which is up from 220,000 in April 2010.
Karl Case of the famed Case-Shiller Housing Index is quoted as saying the foreclosure document flaws might, "actually get the lenders to the table and encourage them to work out deals that are to the benefit of everybody." The theory is that if foreclosures are delayed or never happen, the housing market might hit a floor.
We think the uncertainty this might have would make the US housing market more unstable. The stock market, for instance, does not like uncertainty-- I doubt those looking to make a large investment in a home would like additional confusion.
The US housing market will reach a bottom when the majority of "distressed properties" have been flushed out of the market, in our view. Whether through natural sales and/or with the assistance of investors, the housing supply and demand must come back to an equilibrium in order to acheive balance, in our view.
As a Certified Distressed Property Expert (CDPE), I can help both distressed homeowners navigate the process of a short sale. In addition, my expertise will help those who are seeking to take advantage of distressed properties that are currently in the marketplace.
Please feel free to post an opinion or question and we will try to address them in future posts.
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
Affidavits lenders file in regards to summary judgment foreclosures states certain facts that the signer indicates personal knowledge of. An example would be the amount owed on the mortgage. The affidavits are submitted as fact with respect to the summary judgment process.
The problem arose when depositions taken by lawyers for homeowners showed GMAC and Chase Bank did not have adequate time to review and certify all the facts. A review by these attorneys showed the lenders signed more than 10,000 affidavits in regards to foreclosure action in one month.
The issue will most likely slow down the eviction process just when lenders started to make progress in getting through their respective "distressed property" backlog. In August 2010 lenders started 283,000 foreclosures, which is up from 220,000 in April 2010.
Karl Case of the famed Case-Shiller Housing Index is quoted as saying the foreclosure document flaws might, "actually get the lenders to the table and encourage them to work out deals that are to the benefit of everybody." The theory is that if foreclosures are delayed or never happen, the housing market might hit a floor.
We think the uncertainty this might have would make the US housing market more unstable. The stock market, for instance, does not like uncertainty-- I doubt those looking to make a large investment in a home would like additional confusion.
The US housing market will reach a bottom when the majority of "distressed properties" have been flushed out of the market, in our view. Whether through natural sales and/or with the assistance of investors, the housing supply and demand must come back to an equilibrium in order to acheive balance, in our view.
As a Certified Distressed Property Expert (CDPE), I can help both distressed homeowners navigate the process of a short sale. In addition, my expertise will help those who are seeking to take advantage of distressed properties that are currently in the marketplace.
Please feel free to post an opinion or question and we will try to address them in future posts.
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
Sunday, October 10, 2010
Is The US Housing Market Recovering Or Not?
The fundamental issues of this article is: 1) is the US housing market recovering and 2) why or why not?
As can be surmised from some of our recent postings, the US housing market seems to be stabilizing, at best. In certain regions of the country we are seeing more improvement than in others. However, in my opinion, the US housing market is not in a sustained recovery as of yet. Overall sales of homes are lower now than they have been at any point in the past ten years.
The question then becomes: with all of the avenues taken by government agencies in order to stimulate the housing market, why is there no recovery, yet?
The primary reason is obvious, the economy is still on unsettled grounds. In my view, the small business owners, self-employed and real estate investors have been severely damaged during this prolonged recession. Small businesses have been an engine of job growth and investors have helped to expedite getting housing supply and demand in balance in previous downturns.
One of the main things the government agencies have tried to do in order to help heal the housing market is lower borrowing costs. Reduced rates lowered the cost of owning a home and helped spur borrowing to grow businesses; this in turn helped spur job growth and economic development.
The Federal Reserve has pushed interest rates to extremely low levels and mortgage rates are near historic lows. Why is this not working? and why should those interested in buying, selling or investing in real estate care?
Let's take the second question first: we should care because tracking the trends is important to understanding the market.
Why has lowering the interest rates not worked so far? Here's my opinion:
1) rates are near historic lows for the "prime" customers. Essentially those that do not need a loan and are low credit risks are getting the advantageous loans. I have had several clients start out as cash buyers and then turn into taking a mortgage-- why? lenders are offering very advantagous rates-- to those with good credit.
2) Private mortgage backed security market imploded. Only those guaranteed by the quasi-government Fannie Mae and Freddie Mac are able to sell its mortgages into the market. With "Fannie" and "Freddie" essential bankrupt if not for government intervention, the agencies are guaranteeing only the better creditworthy loans.
3) Underwriting requirements have become much stricter. Full documentation and much less discretion by lenders in borderline cases.
4) Prospective homeowners need loan-to-value ratios that are more in the 70% range. Lower credit scores means more downpayment and increases to the mortgage rates. People need more cash down and the low rates for the most creditworthy do not apply to folks with FICO scores of mid-700s and below.
5) Appraisals are much more cautious in the comparables and the psychology seems to be an expectation of further deterioration. Therefore, the appraisals are conservative; this leaves the lender feeling as though it has less collateral-- means higher rate and more of a downpayment required.
6) Consumer psychology is such that those that might have taken a risk and bought a home in the past are holding back. Not sure of their future earnings and delaying large purchases. Why buy a large ticket item when you are not sure you will be able to afford it or if you think the value may decline in the next six months-- why not just wait.
7) Many homeowners are stuck-- they are underwater on their homes, meaning they owe more on the mortgage than the home could be sold for in the current market. Many of these people want to downsize and move on. However, the reality is they are stuck until values increase-- assuming they can hold the home during that period of time. If not, it becomes another distressed home on the market (i.e., short sale or foreclosure).
8) Lenders are not offering loans to investors-- they need to come up with all cash needed. The days of securitizing and selling investment paper is a thing of the past, for now. That means, even savvy investors-- those that could take advantage of the excess supply are less likely to soak up some of the excess supply. This continues to leave the supply and demand curve out of equilibrium-- for now.
We will continue to monitor these issues going forward. We think these are some of the key issues for those who are involved in the real estate market. Please feel free to post an opinion or question and we will try to address them in future posts.
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
As can be surmised from some of our recent postings, the US housing market seems to be stabilizing, at best. In certain regions of the country we are seeing more improvement than in others. However, in my opinion, the US housing market is not in a sustained recovery as of yet. Overall sales of homes are lower now than they have been at any point in the past ten years.
The question then becomes: with all of the avenues taken by government agencies in order to stimulate the housing market, why is there no recovery, yet?
The primary reason is obvious, the economy is still on unsettled grounds. In my view, the small business owners, self-employed and real estate investors have been severely damaged during this prolonged recession. Small businesses have been an engine of job growth and investors have helped to expedite getting housing supply and demand in balance in previous downturns.
One of the main things the government agencies have tried to do in order to help heal the housing market is lower borrowing costs. Reduced rates lowered the cost of owning a home and helped spur borrowing to grow businesses; this in turn helped spur job growth and economic development.
The Federal Reserve has pushed interest rates to extremely low levels and mortgage rates are near historic lows. Why is this not working? and why should those interested in buying, selling or investing in real estate care?
Let's take the second question first: we should care because tracking the trends is important to understanding the market.
Why has lowering the interest rates not worked so far? Here's my opinion:
1) rates are near historic lows for the "prime" customers. Essentially those that do not need a loan and are low credit risks are getting the advantageous loans. I have had several clients start out as cash buyers and then turn into taking a mortgage-- why? lenders are offering very advantagous rates-- to those with good credit.
2) Private mortgage backed security market imploded. Only those guaranteed by the quasi-government Fannie Mae and Freddie Mac are able to sell its mortgages into the market. With "Fannie" and "Freddie" essential bankrupt if not for government intervention, the agencies are guaranteeing only the better creditworthy loans.
3) Underwriting requirements have become much stricter. Full documentation and much less discretion by lenders in borderline cases.
4) Prospective homeowners need loan-to-value ratios that are more in the 70% range. Lower credit scores means more downpayment and increases to the mortgage rates. People need more cash down and the low rates for the most creditworthy do not apply to folks with FICO scores of mid-700s and below.
5) Appraisals are much more cautious in the comparables and the psychology seems to be an expectation of further deterioration. Therefore, the appraisals are conservative; this leaves the lender feeling as though it has less collateral-- means higher rate and more of a downpayment required.
6) Consumer psychology is such that those that might have taken a risk and bought a home in the past are holding back. Not sure of their future earnings and delaying large purchases. Why buy a large ticket item when you are not sure you will be able to afford it or if you think the value may decline in the next six months-- why not just wait.
7) Many homeowners are stuck-- they are underwater on their homes, meaning they owe more on the mortgage than the home could be sold for in the current market. Many of these people want to downsize and move on. However, the reality is they are stuck until values increase-- assuming they can hold the home during that period of time. If not, it becomes another distressed home on the market (i.e., short sale or foreclosure).
8) Lenders are not offering loans to investors-- they need to come up with all cash needed. The days of securitizing and selling investment paper is a thing of the past, for now. That means, even savvy investors-- those that could take advantage of the excess supply are less likely to soak up some of the excess supply. This continues to leave the supply and demand curve out of equilibrium-- for now.
We will continue to monitor these issues going forward. We think these are some of the key issues for those who are involved in the real estate market. Please feel free to post an opinion or question and we will try to address them in future posts.
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
Sunday, October 3, 2010
2Q 2010: Florida Housing Foreclosure Snapshot
After commenting on the foreclosure market in the US, now let's tackle the Florida foreclosure market during 2Q 2010 (please see previous piece on US foreclosures). Florida's foreclosure situation is not good, but not the worst in the country.
From April 2010 to June 2010 the highest share of foreclosure sales were as follows:
Nevada: 56% of all sales were foreclosed homes
Arizona: 47%
California: 43%
Rhode Island: 37%
Massachusetts: 35%
Florida: 34%
Michigan: 33%
Georgia: 27%
Idaho: 27%
Oregon: 25%
As we analyzed in greater depth in our previous article, the US had nearly 25% foreclosed homes sold in total during 2Q 2010.
Distressed homes, those that are short sales or foreclosures accounted for 34% of all existing houses sold in August 2010, from 32% in July 2010 and 31% when compared with August 2009; this is according to the National Association of Realtors.
Florida was not among the biggest discounts to market in regards to foreclosure prices versus traditional home sales during 2Q 2010. The price discount for foreclosure sales and market sales are as follows:
Ohio: 43%
Kentucky: 43%
California: 43%
Michigan: 35%
Tennessee: 35%
Pennsylvania: 35%
Georgia: 35%
Illinois: 35%
District of Columbia: 35%
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
From April 2010 to June 2010 the highest share of foreclosure sales were as follows:
Nevada: 56% of all sales were foreclosed homes
Arizona: 47%
California: 43%
Rhode Island: 37%
Massachusetts: 35%
Florida: 34%
Michigan: 33%
Georgia: 27%
Idaho: 27%
Oregon: 25%
As we analyzed in greater depth in our previous article, the US had nearly 25% foreclosed homes sold in total during 2Q 2010.
Distressed homes, those that are short sales or foreclosures accounted for 34% of all existing houses sold in August 2010, from 32% in July 2010 and 31% when compared with August 2009; this is according to the National Association of Realtors.
Florida was not among the biggest discounts to market in regards to foreclosure prices versus traditional home sales during 2Q 2010. The price discount for foreclosure sales and market sales are as follows:
Ohio: 43%
Kentucky: 43%
California: 43%
Michigan: 35%
Tennessee: 35%
Pennsylvania: 35%
Georgia: 35%
Illinois: 35%
District of Columbia: 35%
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
Monday, August 2, 2010
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
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
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