Sunday, February 20, 2011

Homes For Sale: Florida Has The Highest Inventory of Distressed Homes in US; Could Mean a Good Deal for Buyers

This past weekend I was out with clients to view a short sale. In our travels, we came across a home with a sign out front that indicated it was a foreclosure. The client said he was interested "in one of those" as he pointed at the sign. The short sale listing was fine also, he said. He indicated the bank knows it would be a foreclosure soon. His rationale was the lender would be willing to negotiate as though it was indeed already in foreclosure.

With nearly one out of evey four foreclosed properties in the nation, Florida has the nation’s highest inventory of homes in distress, according to data recently released by the Mortgage Bankers Association. “More than 20 percent of all loans in Florida are somewhere past due or somewhere in foreclosure,” said Mike Fratantoni, vice president of the MBA.

What does that mean for those looking to get a "good deal"? I guess, there's no need to look beyond Florida. With the "Baby Boomers" nearing retirement age and the current "buyer's market," we think those seeking a second home or a retirement home will be attracted to Florida.

As a Realtor and Certified Distressed Property Expert, I am uniquely qualified in distressed properties (i.e., short sales and foreclosures). If you are thinking of selling or buying a home, please feel free to contact me.

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

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

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

Monday, January 31, 2011

Home For Sale: Low Tax States, Like Florida, Luring Residents from High Tax States Like New York

There are many tax advantages to living in Florida, such as the Homestead laws. This is one of the reasons that many of my people are relocating from the Northeast of the United States to the southern portion of the country.

According to Reuters News, some of the states with the largest population gains from the 2010 U.S. Census are also known as low-tax states; these states include Florida, Texas and Nevada.

Imagine if you were a family of four with a $150,000 income. According to TurboTax, the family could save $13,368 in state and local income taxes if they moved from New York to Florida. The family could save even more when property taxes and estate taxes are included.

Retirees benefit greatly, as many have money invested in tax-deferred retirement accounts; they would profit if withdrawing the money in a low-tax state.

Florida real estate becoming much more affordable when compared with several years prior when the state was experiencing a "bubble" in pricing. As such, now is a great time to look for a second home and/or a home to retire to in the "Sunshine State".

I am a Realtor who knows the various types of communities 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

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

Monday, January 17, 2011

Homes for Sale: Short Sales Rose Sharply in South Florida During 2010; Recent Drop in Foreclosures

As a Realtor and Certified Distressed Property Expert (CDPE), I am interested in the trends in short sales and other forms of distressed property sales, such as foreclosures, in the South Florida market I serve. The government's guidelines seemed to simplify the process, and as a result, increased the number of short sales in South Florida during 2010.

Other factors are at play for this phenominon as well. They include buyers steering clear of foreclosures recently as a result of the foreclosure freeze that started in the fall of 2010. The idea being that if the purchaser started the process, they might not complete it because of the of possible wrong-doing in obtaining the foreclosed property by the lender.

Lenders are also warming up to short sales as they can expedite the time of property disposal as well as tending to get a higher price when compared with foreclosed homes.

With four-in-ten(about 40%) of South Florida homes owing more on the mortgage than the worth of the home, according to Zillow, short sales seem like they are here to stay for a while. In a short sale, the owner sells the home and the lender forgives the difference between the sales price and mortgage.

As a local Relator and Certified Distressed Property Expert (CDPE), I can help those who are "underwater" and considering a short sale. Please feel free to contact me.

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

http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

Saturday, 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