Thursday, September 1, 2011

Consumer Confidence, A Factor To Follow In The Housing Market: Homes For Sale: Homes For Rent

As we have discussed, one the important factors to follow in the housing market is consumer confidence. The more confident the consumer, the more likely there will be increased demand in the housing market.

The Conference Board, an industry group, said its index of consumer confidence dropped to 44.5 in August 2011 from 59.2 the month before. This is the lowest level in two years.

With consumers being more cautious, we would expect the housing market to show an increased level of softness. Indications are the buyer's market will continue into the near-term, in our opinion. The recent economic data, along with a deterioration in consumer confidence seems to point to sequential price reductions in the housing market, in our view. However, we do not anticipate large drops as was the case during the beginning the of "bubble" deflating.

We think this means those seeking to sell their homes need to price attractively and market aggressively. Qualified buyers should remain in the "driver's seat" for the foreseeable future.

If you are thinking of selling or buying a home, or require more information, please text me or call me at 561-247-3550. Please text or call to give me your name, telephone number and e-mail address for the ability to access home searches.


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

Your Credit Score, Getting A Mortgage, Renting And Buying A Home: Homes For Sale: Homes For Rent

Your credit score is important when looking to lease, rent out or purchase a home. According to CreditKarma.com, the threshold to be approved for a mortgage is a 660 credit score. The 660 score is also the threshold to be approved for unsecured credit, according to CreditKarma.com. I think this is also a good number to use when you are a landlord looking to approve a tenant or a tenant seeking to lease a home.

According to CreditKarma.com, about 40% of consumers have a credit below 660. This means that 4 out of 10 Americans would likely be denied for a mortgage. Obviously this hurts demand and weakens the overall housing market.

If you are thinking of selling or buying a home, or require more information, please text me or call me at 561-247-3550. Please text or call to give me your name, telephone number and e-mail address for the ability to access home searches.


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, August 31, 2011

Case Shiller Index June 2011: Mixed Signals: Homes For Sale: Homes For Rent

On a national basis, the Case Shiller Index showed a sequential improvement in 2Q:11 from the 1Q:11 low, but still posted an annual decline of 5.9% versus 2Q:10. Nationally, home prices are back to levels seen in 2003.

David Blitzer, the chairman of the Index Committe at S & P Indeces implied there are mixed signals on the housing market throughout the country. He suggests that we are in a state of regional housing markets, as opposed to a "national market" where everything rose and fell together.

The South Florida region showed a 0.6% sequential drop home prices in June 2011 over May 2011; this compares with a 1.1% average increase for the nation. On a year-over-year basis, the price of the average home fell 5.1% in June 2011 versus June 2010; and this compares with an average 4.5% year-over-year decrease for the nation.

Some areas of interest were as follows:

June 2011 June/May May/April
Metropolitan Area Level Change (%) Change (%) 1-Year Change (%)

Boston 154.47 2.4% 2.6% -2.1%

Chicago 115.61 3.2% 1.7% -7.4%

Cleveland 100.68 1.5% 1.2% -6.1%

Miami 139.46 0.6% 1.2% -5.1%

Minneapolis 112.31 3.2% 2.7% -10.8%

New York 166.59 0.9% 0.7% -3.6%

Tampa 128.90 1.3% 0.7% -7.0%

Composite-10 154.88 1.1% 1.0% -3.8%

Composite-20 141.30 1.1% 1.0% -4.5%

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.

If you are thinking of selling or buying a home, or require more information, please text me or call me at 561-247-3550. Please text or call to give me your name, telephone number and e-mail address for the ability to access home searches.


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, August 13, 2011

Is Now A Good Time To Buy A Home?: Homes For Sale: Homes For Rent

Is now a good time to buy a home? I think the answer is yes IF: you have a stable job and expect to live in the home for 10 years or more. Yes, interest rates could fall a bit more and prices as well-- but if you plan to live in your new home for 10 years or more, I think the benefits of buying near-term would outweigh the costs at this time.

Let's look at some of the factors in making such a decision:

Interest rates: Now is a good time to buy on interest rates alone. As mortgage interest rates rise, purchasing power falls. Rates are near historic lows right now.

The Federal Reserve will eventually raise some benchmark rates and it also has a large portfolio of mortgage securities to sell off in the future-- this will put upward pressure on rates.

Also, inflation is beginning to rise and some analysts think it will continue to creep upward. As inflation increases, lenders will want to hedge against the US Dollar being worth less-- and will raise interest rates as a means to that end.

Home Prices: The banks are trying to keep home prices from plummeting by slowly releasing distressed properties into the market. The predictions on home prices vary from a minimal decline from here to another 25% decrease. But, this is a very local issue that needs to be looked at carefully in the area of interest.

When the market does hit a bottom, it will most likely not rally like we had seen in the "bubble" period. The real annual return on a home is approximately the rate of inflation. Therefore, homebuyers should not be investors looking to "flip" homes for a profit, in my view.

Lastly, even if prices were to decline further a rising interest rate might wipe away as much purchasing power if you wait.

Mortgages: Banks have tightened their lending requirements post-bubble. A bigger downpayment is required and your credit history is very important. Currently the government guarantees over 90% of the mortgages in the market. The government will most likely begin backing away from this practice and when it does will most likely require about 20% as a downpayment.

Financial Situation: The housing market will most likely continue to be soft in the coming years. The sale of a home will not be quick or easy, most likely. It is important to purchase a home you feel you will be able to afford for a while and you should not stretch your budget to afford it.

Also, the buy versus rent argument goes that rents may rise while your fixed mortgage costs will not. A fixed interest rate mortgage is a good hedge for inflation because inflation will cause wage increases; this coupled with your fixed costs will help make it easier to afford the payments.

Again, if you are economically stable and plan to live in the home for 10 years or more, I think now is a good time to take advantage of the current advantageous affordability levels of homeownership.

If you are thinking of selling or buying a home, or require more information, please text me or call me at 561-247-3550. Also, text me your name and e-mail address if you would like home search capabilities.


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

Case Shiller Predictions For Home Prices In The US, Miami-Area And Fort Lauderdale Area: Homes For Sale: Homes For Rent

Case Shiller now predicts the US housing market will continue to see price declines into 2013. Case Shiller believes US home prices will be on par with prices in 1Q:11 in 1Q:13.

Case Shiller expects median home prices in the US to fall by an average of 3.1% between March 31, 2011 and March 31, 2012. After that, it expects to see prices increase by 2.7% until 1Q:13.

The reasons for this prediction is the weak job market and expectation for an economic recovery in the US. They point out the percentage of Americans who have jobs reached a 28-year low in July 2011. As a result, they argue despite attractive housing affordability, too few people can take advantage because of tightened lending standards.

With respect to two markets of interest: Miami metro area and the Fort Lauderdale metro area:

Case Shiller forecasts a further 22.8% decline over the next 24 months ending in March 30, 2013 in the Miami metro area(this is after prices fell 54% from the peak).

Case Shiller forecasts another 18.9% decline in home prices in the Fort Lauderdale area over the next 24 months ending in March 30, 2013.

If you are thinking of selling or buying a home, or require more information, please text me or call me at 561-247-3550. Also, text me your name and e-mail address if you would like home search capabilities.


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

Banks Have A New Weapon In Dealing With Homes On Which It Has Foreclosed-- Bulldozers: Homes For Sale: Homes For Rent

With nearly 1.7 million homes in the US in some state of foreclosure and more coming on the horizon, some economists worry home prices will be depressed for years to come. How do we reduce the supply-- one way is with a bulldozer.

Some of the least valuable homes are being demolished. For instance, Bank of America recently announced plans to demolish 100 foreclosed homes in Cleveland; the land will be donated to local municipalities. JP Morgan Chase has beeen donating homes it could not sell or were not repairable.

Why would the banks do this? Once the property is donated no more tax or upkeep expenses are required. The lender may also be able to write-off the donation. Municipalities like it becasue they get free land to develop or leave as open space. The market may have a chance to stablize quicker because there is less inventory keeping prices depressed.

The fact that the banks are attempting to do something might be a good sign for the future. With undesireable, distressed homes lingering on the market, it is taking 9 1/2 months for the current number of homes on the market to sell at the end of June 2011; a healthy supply is six months of sales, according to many experts.

If you are thinking of selling or buying a home, or require more information, please text me or call me at 561-247-3550. Also, text me your name and e-mail address if you would like home search capabilities.


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

Number Of Contracts On Homes Increased And So Did Cancellations: Homes For Sale: Homes For Rent

More potential home buyers signed contracts in May 2011 on both a sequential and year-over-year basis, according to the National Association of Realtors (NAR). Pending home sales rose 2.4% in May over April 2011 and an increase of 30% over June 2010, according to NAR.

However, NAR also noted a huge jump in cancellations of pending home sale contracts. In May 2011 about 16% of contracts did not make it to a closing, which compares with the normal rate of about 4%, according to NAR.

Some reasons why: uncertainty about job security and the US economy; increased time needed to obtain financing; tighter underwriting restrictions; longer time to get appraisals completed; and the increased popularity of short-sales, which take longer than normal sales-- which causes some potential buyers to cancel as well.

The positive is potential homeowners are being more active. However, some of the same issues still remain: economy, financing and the patience required for distressed property sales.

If the potential homebuyer is aware of some of these potential issues, it will be easier for them to make a more firm commitment from the outset. That is why I try to educate my clients looking to purchase a home from the beginning of our journey of finding a suitable new home.

It is also important for my clients who are selling their homes to be aware of these issues as well. We try to mitigate the potential for problems later on in the process by bringing to light these same issues with the prospective buyer at the first sign of interest.

If you are thinking of selling or buying a home, or require more information, please text me or call me at 561-247-3550. Also, text me your name and e-mail address if you would like home search capabilities.


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