Showing posts with label United States. Show all posts
Showing posts with label United States. Show all posts

Monday, June 27, 2011

Is US Distressed Property Inventory Peaking?: Homes For Sale: Homes For Rent

CoreLogic believes US "shadow inventory" of homes may have peaked recently. The "shadow inventory" refers to homes in the foreclosure process that are headed toward the housing market.

As of April 2011 CoreLogic estimates there were about 1.7 million homes that were in the foreclosure process. The firm says this is about 18% below the peak and represents a five-month supply of homes at the current sales pace.

Those behind on their mortgates has declined 8.3% in the first quarter of 2011, according to the Mortgagte Bankers Association. The National Association of Realtors reported foreclosures and short sales (i.e., distressed properties) accounted for 31% of existing home sales in May 2011 versus 37% in April 2011.

Excess inventory supply needs to be taken out of the market in order to reach a bottom in the market, in my view. The stabiliztion of the US economy is helping to reduce delinquencies on mortgage payments and has spurred some into action to purchase a home, in my view.

I think it is too early to declare the market has hit "rock bottom." The recent signs have shown a "softer" decent, which leads me to believe we are getting closer to the nadir. Much depends on the continued strenghtening of the US economy and the economic situation in your local area.

In the meantime, there are many homeowners who are in a distressed situation. As a Certified Distressed Property Expert (CDPE) and a Realtor, I can help. Please contact me.

Otherwise, if you are thinking of selling or buying a home, renting out or leasing a home, or require more information, please feel free to contact me.

You can text me or call me at the number below.

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

US Housing Market Remains Weak; Some Tidbits on New Home Sales, Which Declined Again in May 2011: Homes For Sale: Homes For Rent

The US housing market continues to be weak as new home sales continued to fall during May 2011.

The sequential number of homes sold in the US was down 2.1% to 319,000 units in May 2011; median home prices increased 2.6% to $222,600 during the same time.

Last year was the worst as far as the number of new homes sold during the past 50 years. New home sales have been decreasing during the past five years. The previous five years saw some record high sales numbers.

Home prices have fallen more during the "Great Recession" when compared with the Great Depression of the 1930's. After the Great Depression, it took 19 years for prices to fully recover.

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

Monday, June 13, 2011

How Much Will I Save In A Foreclosure And Short Sale? Homes For Sale: Homes For Rent

With foreclosures accounting for 28% of all sales in the nation, we focus on distressed homes. In an attempt to stay at the forefront of the distressed market, we discuss the percentage discount for foreclosures and short sales in the US.

In the United States, the average REO (i.e., foreclosure) cost on average about 35% less than comparable properties, according to RealtyTrac.

Nationwide, short sales sold at an average 9% discount, according to CNNMoney.

These figures are as of May 2011. However, there are variations depending on the market.

The Certified Distressed Property Expert (CDPE) designation means I have focused my efforts on foreclosures and short sales. If you are thinking of selling or buying a home, or require more information, please feel free to contact me. You can text me or call me at the number below.

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, June 2, 2011

Case Shiller Housing Index: March 2011: US Home Prices Continue To Slide: Homes For Sale: Homes For Rent

US homes prices are back to the mid-2002 levels, according to the Case-Shiller Index.

On a year-over-year basis, the Case-Shiller Index showed home prices nationally fell 5.1% in 1Q:2011. On a sequential basis, home prices fell 4.2% in the US. The Case-Shiller National Index fell to a new recession low during 1Q:2011.

Locally, the South Florida market saw the price of homes drop 6.1% on a year-over-year basis in March 2011. This compares with a 6.9% decline in prices for the Tampa area during the same time frame.

Looking at some markets of interest:


March 2011 March/February February/January
Metropolitan Area Level Change (%) Change (%) 1-Year Change (%)

Boston 147.36 -1.7% -1.5% -2.7%

Chicago 110.57 -2.4% -2.2% -7.6%

Miami 137.28 -0.8% -2.0% -6.1%

Minneapolis 105.57 -3.7% -3.3% -10.0%

New York 163.50 -0.9% -0.6% -3.4%

Tampa 127.08 -0.7% -0.8% -6.9%

Composite-10 151.66 -0.6% -1.2% -2.9%

Composite-20 138.16 -0.8% -1.1% -3.6%

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

Friday, May 20, 2011

Current Consumer Sentiment And The Housing Market: Homes For Sale: Homes For Rent

Consumer sentiment plays a role in the housing market, in my opinion. With more than half of US homeowners and renters predicting the housing market will not recover until 2014, the US housing market may take a long while to fully rebound.

Trulia and RealtyTrac found that 54% of respondents do not expect a recovery in the housing market for at least three more years. With demand being weak and difficulty in obtaining mortgages, there is not much to kick-start the housing market in the near-term.

Another overhang is the more than 1.8 million properties (according to Core-Logic) that are delinquent or in foreclosure, which will add to the inventory of unsold homes. The CEO of Trulia is quoted as saying he doesn't expect to see signs of price stability in the housing market for another 18 months (that would be around 2013).

With the uncertainty in the current market, it is more imperative than ever to work with a professional when buying or selling a home. If you are thinking of selling or buying a home, or require more information, please feel free to contact me. You can text me or call me at the number below.

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

Saturday, May 14, 2011

Homes For Sale: Homes For Rent: More Homes Underwater, Prices Continue To Slide In US

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

Homes For Sale: Homes For Rent: Banks Stalling Foreclosures, Time To Process Lengthens

RealtyTrac, an industry consulting firm, said the time for a bank to take back foreclosed homes has increased 37% in New York from last year. It now takes about two years for the lender to take back a foreclosed property. Some industry experts believe this is because banks cannot afford to take back the homes.

The banks do not want to have inventory of properties whose values have dropped significantly, according to some experts. The banks would have to write-down the losses and raise more capital to be in line with compliance standards.

In the meantime, without taking possession through foreclosures, the banks collect servicing fees on the bad mortgages and the banks do not have to incur other costs, such as lawn maintenance on these homes.

The increased scrutiny of mortgage documents and faulty paperwork is also prolonging the process of foreclosure. According to Rick Sharga of RealtyTrac, it will take between three and four years in order to get loans into foreclosure at the current pace.

I think this means there will be an increase in short sales for distressed homeowners. 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

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

Saturday, April 23, 2011

Homes For Sale: Homes For Rent: US Monthly House Price Index Declined 1.6% January 2011 to February 2011

US Monthly House Price Index Declined 1.6% January 2011 to February 2011, according to the Federal Housing Finance Agency’s monthly House Price Index. A previously reported 0.3% decrease in January was revised to a 1.0% decrease.

On a year-over-year basis, US house prices declined 5.7% in February 2011. The US Index is about 18.6% below the peak of April 2007 and is about the same level as the February 2004 index level.

With prices continuing to decrease, I think now is a good time for those seeking to purchase a home to begin looking. In my view, the market isslowly decreasing in price and should reach a trough level within the next 12 months-to-18 months; this assumes similar economic trends that we are seeing now.

Each market within the US and each sub-market behave in a slightly different manner. For that reason, I suggest working with a real estate professional that knows respective markets. Although I follow the real estate market on a macro-level, I specialize in the South Florida real estate market.

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

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

Monday, April 4, 2011

Homes For Sale: Reasons To Be Optimistic About US Housing Market: Part I

Mike Castleman is the founder and CEO of Metrostudy, which has been collecting United States housing data for many years. Mr. Castleman predicts there will be a shortage of homes in the US soon, which will lead to rising home prices.

Metrostudy aggregates data on the number of homes that are vacant and for sale and how long it takes to sell all of them in each of the cities on which it collects data. The company supplies the information to its client base in order to try and determine whether a market has a surplus or a shortage of new housing.

In the 41 cities Metrocity covers, about 78,000 houses are either vacant, for sale or under construction. The category reached a peak of 343,000 units in mid-2006. Mr. Castleman says that if we had normal levels of buying the current inventory would sell in 2 1/2 months. If this were to be the case, Mr. Castleman says there would be an "incredible shortage" of homes and he predicts "that's where we are headed."

I have found that the more desireable communities that I serve have continued to have a dearth of "distressed priced" homes; and those that happened to enter the market were snapped up quickly. I think it depends on the area in which you are seeking to buy or sell a home. Certain segments of the South Florida market have a narrow inventory level and have not experienced as big a price drop after the housing "bubble" burst.

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

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, March 5, 2011

Homes For Sale: Reasons To Be Bullish On Real Estate

There are plenty of reasons to be cool to the real estate market; this is not limited to looming shadow inventory, extended high-levels of unemployment and geopolitical instability. However, there are some reasons to be optimistic about the US housing market.

The anecdotal evidence I have received seems to indicate local South Florida real estate offices have seen a pick up in traffic during the past several months. The tide may be finally turning and here are some reasons why:

Jobs: the unemployment rate has shown some improvement during the past several months, with national unemployment finally reaching a level under 9%. Polls have shown that Americans believe the employment situation is improving.

Consumer Confidence: the job situation is giving people a better sense of job security. We have seen improving retail information, and this should further increase confidence. More optimism means more planning for the future, which typcially involves home buying.

Young Adults: planning for the future has been something that has been put on hold for many recent post-college graduates. The economic situation has caused many young adults to live at home-- this has caused pent up demand for this age-group.

Foreclosures: despite many foreclosures, lenders have been judicious at doling out the excess inventory in order to not destroy the value of their inventory. Foreclosures will continue to trickle out into the market-- no flood predicted here; should stabilize housing prices.

Inflation: with the current geopolitical sitution, increased food and fuel prices, inflation is again on the minds of consumers. Historically, real estate has been a good hedge against inflation. The expectation of higher prices should spur action for those who have been sitting on the sidelines.

Higher Rents, Low Rates: It has been a buyer's and landlord's market in recent years. As such, the price of renting has been increasing, especially as it has been more difficult to obtain financing. However, those who can afford to buy a home can take advantage of the historically low interest rates and being in the driver's seat for buying.

Investors Are Engaged: the slow trickle of distressed properties onto the market has allowed the investment community to raise funds and seek out deals. The deals remain and so do the investors. I recently put in an offer for an investor and during the same week had an investor customer call for information-- getting ready to make several offers.

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

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

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

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

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

Saturday, January 15, 2011

Homes for sale: US Home Prices Fall Again During November 2010

The US housing market continues to struggle to find a bottom. Home prices in the United States fell 5.1% in November 2010 when compared with a year earlier, according to real estate analytics firm CoreLogic.

The decline in US home prices in November was steeper than the year-over-year decrease of 3.4% in October. Forty-four of the states experienced an annual decline in November.

Mark Zandi, an economist with Moody's Analytics said the US housing market is "double dipping." He predicts prices will continue to fall from the peak levels in 2006; he seems to indicate an expectation of the bottom hitting in late 2011 and price declines of 35% off the peak in 2006.

According to CoreLogic, the six states that experience a year-over-year increase in housing prices were: Indiana, Vermont, New York, Wyoming, North Dakota and Maine. However, in general, these states did not see as sharp of a rise in prices during the "boom" period.

The consensus of many leading economists that focus on the real estate market seem to think the bottom of the market will not hit until the end of 2011.

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

Thursday, December 23, 2010

Homes For Sale: Forclosure and Short Sales: New Legal Tactic to Help Homeowner and Condo Assoc; More Distressed Home Statistics

There is a new mortgage terminator strategy, which is a legal tactic that forces lenders (e.g., banks) to come current with homeowner association dues on distressed homes. The action is a "quiet title action" that requires a lender to prove it owns a property free and clear by foreclosing or giving up its lien.

According to the Community Associations Institute, more than 70% of bank owned houses and apartments are not making regular assessment payments to the boards that operate the properties.

Why would a lender not take title on a foreclosed home and leave it in a "short sale" situation? The answer is in many situations it makes more financial sense for the banks to let things lie. The new strategy will force banks to make a decision as to whether or not it makes sense to hand over title to the homeowners association or come current on fees. The new strategy has been sanctioned by three courts in Florida recently.

Non-payment of association dues puts a financial strain on the community. When not enough funds are collected to pay the bills related to the community, either residents take up the slack or the association reduces the amount of services it provides.

HOA assessment delinquencies doubled since 2005 from 19% of associations reporting delinquency rates of 5% or above, to 65% in 2010. In 2010, 30% of associations have delinquent assessments exceeding 10%. Moreover, 10% or almost 30,000 associations in the US have rates above 20% delinqencies in 2010.

With the new legal tactic in place, associations can take title and force the primary lien holder to initiate it own foreclosure proceeding or release its mortgage so the association can sell the unit to cover the fees owed. This will allow for better upkeep of the communities, help to stave off falling home prices and not place a bigger burden on homeowners who are current with association dues.

I think it is very important for buyers and sellers to understand what is happening in the local markets. As this post discussed, it is important to understand what is happening in individual communities.

As a local Relator, I am aware of what is happening in many of the communities. 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

Wednesday, December 22, 2010

S FL: Homes For Sale: Foreclosure and Short Sale: South Florida Has Many Distressed Properties; To Pressure Homeowners Looking To Sell

According to Moody's Analytics, there were 15 million underwater homeowners in the United States in the first quarter of 2010. More than half, 7.8 million, owed 25% more than what the home is worth.

Moody's estimates almost one-third of the total (more than 4 million) underwater homeowners owed more than 50% of the homes' value. The worst US markets for underwater homes were 1) California (424,000), 2) Florida (121,000) and 3) Illinois (121,000).

The bottom line is the economy is in a holding pattern until these figures can be reduced, in our opinion. Homeowners cannot sell and move up and home improvements are being delayed. We believe this trickles down throughout the whole US economy.

During previous recessions, the housing industry and consumer spending strengthened the overall economy. To put in perspective the current lull in housing, we turn to the National Homebuilders Association's annual homebuilding estimate of 600,000 for 2010. This compares with the US output in new homes of 1.7 million in more normal times. The National Homebuilders Association's economist, David Crowe, does not expect home building to return to its normal levels for another three years (editor's note: estimated to be 2014)

In regards to home prices returning to a point where their mortgage balance was even with current property values-- estimates have put an estimate of 11 years for that to happen. The assumption behind the 11 year estimate is if prices were to rise at an annual rate of 3% per year. we believe an average of 3% annual price appreciation during the next 11 years to be a likely scenario.

I think it is very important for sellers to understand their respective local markets. This will allow them to competitively price their properties and garner the most interest in what seems like a lengthy buyer's market in South Florida.

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