Miami Real Estate Information Web Blog

ORLANDO, Fla. -- Jan. 24, 2008 -- Florida’s housing market followed the national trend in 2007, as mortgage industry issues and a sluggish economy impacted sales and prices. By year’s end, a total of 130,241 homes sold statewide for a 29 percent decrease compared to the 183,988 homes sold in 2006, according to the Florida Association of Realtors® (FAR). However, 2007 is expected to be the fifth highest sales year on record for existing-home sales, according to the National Association of Realtors® (NAR).

“What we experienced during the five-year boom cycle (2001-2005) was not a normal housing market,” notes 2008 FAR President Chuck Bonfiglio. “It was a market like we have never seen before. Existing-home median prices went up statewide over the past five years by some 60 percent; prices only declined in 2007 from 2006 by 5 percent. People are still experiencing a sizable return on their investment if they have owned their home over the past six years. The outlook for 2008 is that the housing market should start to normalize, that we should see some gains by the end of the year. Continued efforts to resolve Florida’s property insurance and property tax issues will also help revitalize our state’s housing market.”

The latest market outlook from NAR predicts that, as conditions for the mortgage industry continue to improve, existing-home sales should hold fairly steady over the next few months, rise later in the year and continue to improve in 2009. “A meaningful recovery in existing-home sales could occur as early as this spring, or it may be further delayed toward late 2008,” says NAR Senior Economist Lawrence Yun. “Our consumer survey shows buyers today are in it for the long haul, planning to stay in their home for a median of 10 years. This is a wise approach to housing because the data shows the longer you own, the better your investment.”

Florida’s median sales price for existing single-family homes for year-end 2007 was $233,600; a year ago, it was $247,100 for a 5 percent decrease. The median is the midpoint; half the homes sold for more, half for less. At the end of 2002, the statewide median sales price for single-family homes was $137,800, for an increase of 69.5 percent over the five-year-period, according to FAR records.

Sales of existing condominiums in Florida also decreased last year, with a total of 41,478 condos sold statewide compared to 56,877 in 2006 for a 27 percent decline, according to FAR. The statewide median sales price for condos at year-end was $205,100, down 3 percent from the 2006 year-end condo median price of $211,500. NAR reported the national median existing condo price was $223,500 in October 2007.

Interest rates for a 30-year fixed-rate mortgage at the end of 2007 averaged 6.34 percent, according to Freddie Mac, down from the average rate of 6.41 percent at the end of 2006. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s larger markets, the West Palm Beach-Boca Raton Metropolitan Statistical Area (MSA) reported 6,971 existing homes sold last year compared to 8,640 homes sold in 2006 for a 19 percent decrease. The market's median sales price for homes was $369,400; in 2006, it was $384,700 for a 4 percent decrease. A total of 5,674 existing condos changed hands in the MSA last year, down 8 percent from the 6,139 condos sold in 2006. The existing condo median sales price in 2007 was $198,000; in 2006, it was $220,400 for a 10 percent decrease.

“It’s absolutely critical now for people to work with a knowledgeable local Realtor who can help guide them through the process of buying or selling a home,” says John Mike, president of the Realtors Association of the Palm Beaches and a Realtor-sales associate with Prudential Florida WCI Realty. “We’re more than just a technological resource for a real estate transaction: A professional Realtor is a fountain of information and knowledge to have on your side when making one of the biggest financial investments most people will ever make. Just like in the military, you need the right intelligence to make the right decisions. When you go out to do battle in the real estate market, you ought to be armed with the best intelligence on the local housing market and community. That’s what a local Realtor will provide.”

Among the state’s smaller markets, the Gainesville MSA reported a total of 2,644 homes sold in 2007 compared to 3,174 homes the previous year for a 17 percent decrease. The existing home median sales price was $210,400; in 2006, it was $213,200 for a 1 percent decline. A total of 939 existing condos sold in the MSA last year compared to 1,284 condos sold in 2006 for a 27 percent decrease. The market’s existing condo median price was $154,900; in 2006, it was $153,400 for an increase of 1 percent.

J. Parrish, president of the Gainesville Alachua County Association of Realtors and president of Coldwell Banker M.M. Parrish, Realtors, says retirement trends for baby boomers likely will benefit the area. “You hear the research on how boomers are retiring earlier than their parents did, and that they want a more active lifestyle,” he says. “Therefore, they’re retiring to places where they can find the amenities of continued education, sports and cultural activities associated with university towns like Gainesville.”

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Posted by South Florida Realtor at 08:31 AM

January 22, 2008

Aventura Florida Real Estate 305-936-2489 - Virtual Tour Of The Aventura Area. Aventura Homes, Condos and The Aventura Mall. Dean Isenberg Miami Realtor

Visit Aventura-Homes.Com For More Information About The Aventura, Florida Area

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Posted by South Florida Realtor at 03:38 PM

January 19, 2008

305-936-2489 Florida Condo Hotels - Popular Vacation Home Features.

Florida Condo Hotels.

Many answers are available in "Top 10 Vacation Home Features Travelers' Seek" offered by TripHomes.com, a new vacation home rentals website. Still more insight is available from vacation home market experts RealtyTimes.com has interviewed to help you further improve the bottom line of your vacation home rental.

"Travelers increasingly turn to vacation rental homes as a home away from home for their vacation accommodations," says Justin Halloran, general manager of TripHomes, a new vacation rental website under the former WVR Group umbrella of vacation rental listing websites, also known as HomeAway.com.

"Unlike hotels, vacation rental homes offer so many other advantages -- from fully equipped kitchens and plenty of bedrooms to private pools and media rooms," Halloran added.

Along with additional commentary from the experts, here is TripHomes.com's list of most sought after vacation home features.

Location, Location, Caution: Beach front, hillside, ski resort and lake front homes all have appeal. So does everything from urban living "like a local" to rural seclusion. The key is to purchase in a safe and secure location that is also appealing to visitors.
"It must be beautiful and relaxing, but it also needs to be safe -- from man-made or natural disasters. Trying to create an attractive rental from the property you buy that is sitting on an eroding cliff overlooking the ocean just won't fly, no matter how beautiful the view. Ditto if the potential for flooding from high tides or rivers is present," said Amanda Sturges, director of operations at Escape Homes, a San Francisco Bay Area online clearinghouse of vacation rentals and industry services.

"Also, the location needs to be popular, but not that popular. Most people don't want to be inundated with other vacationers, if they can help it," she added.

Rooms With A View: Give visitors a stunning sun setting into the ocean or a bedroom high above the trees. Think "big sky."
"People love to step out on a deck and not see anyone or anything except a great view. Even if the only view is the vast sky, the feeling people get is expansion and relaxation," said Sturges.

Family, Kid Friendliness: Swimming pools, video games, pool tables and big-screen televisions. Pack it in for families on the go. Bunk beds are in for snoozing kids, breakables are out for kids who are wide awake.
"Furnish the property to accommodate kids with not a lot of breakable knickknacks. Buy a property in a community that caters to families, meaning there are swimming pools with lifeguards, (even at ocean sites, because the ocean is often too rough for little ones), playgrounds and an abundant supply of babysitters," said Sturges.

Watch for, say, retirement properties that restrict younger visitors. Conversely, if you seek to rent to couples, play up quiet, seclusion and the romantic aspects of the property and location itself, Sturges added.

"The next thing to look at is the demographics of the local visitors. Check out the Chamber of Commerce website to see who they are targeting. If it is primarily conventions, then a 1-bedroom property might be a good rental. If they are targeting families, you want two or more bedrooms," said Christine Karpinski, a real estate investor, author and director of Owner Advocacy for HomeAway.com, formerly WVR Group, a network of vacation rental listing websites.

Budget Travel: Sometimes travelers just need a getaway with a roof over their heads and choose a vacation rental instead of a hotel or motel to save cash on eating out or even going out.
"Sometimes, this takes a bit more digging to determine what vacationers want. For instance, I have found that cabins in the Smoky Mountains have a difficult time renting if they do not have a pool table. Colorado visitors like a hot tub and like to be on the trolley line for the ski slopes. Some vacationers want off-street parking where parking is tough," said Karpinski.

"Knowing who will want to rent your vacation home and then buying based on their demands, rather than just your own family's demands, will make it much easier in the long haul when you want to rent that property out," Karpinski added.

Dining In: Eating out can break a vacationer's budget and disrupt their gastrointestinal tract. Gathering in the kitchen and around the table for a family dinner while on vacation provides a warm fuzzy feeling for the heart and for the stomach. Eating what and how you are accustomed while away helps eliminate the "nervous stomach" feeling some travelers experience. Cater to travelers who like eating-in as a romantic experience or as a family event. Adding restaurant quality cooking appliances, equipment, swank dining furnishings, cozy decor and adequate lighting can make for quite an eating-in experience.

Welcome Mat For Groups: Vacation homes are a great option for family reunions, wedding parties, and family vacations, provided the facilities are adequate, including lots of bedrooms and bathrooms.
"A nice option is to own a few closely connected condos where individual households can stay. Groups also usually need a gathering place of some sort, like a reception room or clubhouse that can be reserved for a function," said Sturges.

Tech Habitats: Many of today's travelers don't leave home without their electronic gear. For them, disconnection is not a good thing. Look for homes built with high-speed and wireless Internet connections, plenty of phone outlets and perhaps even computer stations for guests' use.

"Many people are working part of the time they are away. It allows them to extend their vacation without having to take as many vacation days. WiFi and broadband Internet is one of the hottest net trends for rentals" said Marvin Floyd, general manager of Vacation Rentals By Owner a do-it-yourself vacation rental website.

Activities: Many travelers leave home to partake in activities they enjoy but can't, don't or won't do when they are home.
"One of the important issues of renting a vacation home in a private golf, tennis or equestrian community is to know, beforehand, the additional club fees that renters need to pay for access to the club's facilities. Also, renters need to know the limitations of facility use, which typically is far less than for property owners," said Elisabeth Miller-Fox president of PrivateCommunities.com, a portal for renting and buying homes in private and gated communities.

Sturges says to buy a property with well-defined recreation activities and advertise it with your listing.

"It is a boon to include perks with the rental -- lift-tickets, golf fees, tennis rackets, snorkel equipment, etc.," she suggested.

Let The Dogs In: To be or not to be pet-friendly is a good question. Some visitors are allergic to pet hair, others can't leave home without them. Because many hotels and motels don't allow pets you can attract a big portion of the traveling pet owner crowd if you offer liberal pet policies. Cleaning up after the creatures, however, can be a different story.
"I think this is really an overrated 'want' as most people don't travel with their pets," said Floyd.

Sturges says when pets are permitted, part of the rental has to include a substantial cleaning allowance.

"A property that is pet-friendly is usually on the ground floor, not on a busy street, and perhaps with a good fenced yard. If you are planning on buying a pet-friendly property, it is a good idea to have wood floors rather than carpeting," said Sturges.

Special Touches: Chalets, mansions, villas and a beautifully designed and decorated home are all popular draws.
"Something I experienced for the first time was a vacation home with a car and guide available. I just returned from Beijing and the condo's owners provided a new Hyundai Elantra with driver and guide during the entire trip. I realize few owners will be interested in providing this, but it was fantastic and made the trip so simple and pleasurable. If you want to really set your place apart, do something like that. Upscale travelers will be willing to pay for it," said Floyd.

Floyd also said vacation rental owners should make available local travel guides, maps, discount coupons and information books about the vacation rental home or condo and the surrounding area.

"It's great to know the location of the Italian or Chinese restaurant. These guides are very cheap and easy to assemble and it goes a long way creating a positive impression with renters," said Floyd.

For more information regarding the above web blog, please call Dean or Bonnie Isenberg at 305-936-2489 / 800-819-5466 or visit us on-line at A-Realtor.Com

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Posted by South Florida Realtor at 11:50 AM

January 17, 2008

Real Estate Outlook: Mortgage Rates Down to the Low Levels. 305-936-2489

Equally important: Federal Reserve chairman Ben Bernanke has strongly hinted that the Fed will lower short-term rates by at least a half percentage point at the end of January, and might lower rates again at its next meeting if needed.

Mortgage rates last week hit 5.73 percent on average nationwide for 30 year fixed rate conforming loans and 5.21 percent for 15-year fixed, and about the same for 5-year hybrid adjustables, according to the Mortgage Bankers Association of America.

You may recall that rates topped 6.8 percent briefly late last summer, so the cost of money for real estate purchases and refinancings is now more than a full percentage point cheaper than it was barely five months ago!

Low mortgage rates like these normally are a powerful stimulus for home sales, but there's a sobering underside to the current declines: They are being caused in part by bond market investors' fears of a U.S. recession.

Investors are putting their money into ultra-safe Treasury bonds, lowering the benchmark 10-year Treasury rates that affect the pricing of long-term mortgage money.

Let's not pull any punches about this: There does appear to be a growing possibility of recession. Consumers have begun pulling back on purchases, borrowing less, even using their credit cards less. Unemployment is up.

The White House and Congress are rushing to put together economic stimulus packages -- and some of the details could be beneficial to residential real estate.

For example, one proposal would allow millions of homeowners who do not itemize on their federal tax filings to write off their mortgage interest payments for the first time ever. Look for job stimulation plans, more help for troubled homeowners, and a lot more to be floated publicly in the next couple of weeks.

The idea is to ward off any recession, or at least keep it short and shallow.

Nobody can tell you with certainty how this will play out, but we'll be monitoring it for you on a daily basis.

In the meantime, here's a smart strategy: Make the most of what we've got -- the lowest interest rates and home prices we've seen in years in most markets.

Recession or no recession, that should be a winning combination if you are serious about real estate.

For more information regarding the above web blog, please call Dean or Bonnie Isenberg at 305-936-2489 / 800-819-5466 or visit us on-line at A-Realtor.Com

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Posted by South Florida Realtor at 10:52 PM

Allstate suspended from writing new auto policies in Florida in dispute over subpoena

Aventura-Homes.Com

TALLAHASSEE, Fla. (AP) – Jan. 17, 2008 – Florida Insurance Commissioner Kevin McCarty on Wednesday suspended Allstate companies from writing new automobile insurance policies in Florida for refusing to comply fully with a subpoena from the state.

McCarty abruptly ended a scheduled two-day meeting Tuesday after just two hours. He was angered that Allstate officials failed to turn over some information the state requested on property coverage rates. Company officials had described the state’s request as “irrelevant.”

Allstate was to have provided documents relating to its reinsurance program and its relationship with risk modeling companies, insurance trade associations and insurance rating organizations, but instead returned a 51-page letter of objections to the state’s subpoena.

Aventura-Homes.Com

“In view of Allstate’s ongoing, blatant disregard of our subpoenas, I have little choice,” McCarty said Wednesday. “Suspending their certificate of authority to write new business in our state should make my point.”

He said the suspension would be lifted when the company complied with the state subpoena.

Messages left for Allstate executives to comment on the suspension were not immediately returned. The Florida Insurance Council, an industry trade association, referred calls to Allstate.

McCarty said existing policyholders will not be affected. Allstate must continue to service their clients and its companies must make all required statutory filings, including annual and quarterly financial statements and rate filings.

The suspension applies to Allstate Insurance Co., Allstate Indemnity Co. and Allstate Property and Casualty Co., and it only suspends the companies from writing new business in Florida.

Aventura-Homes.Com

Gov. Charlie Crist, who has long criticized the insurance industry for its resistance to lowering property insurance rates, praised McCarty’s action against the Illinois-based carrier.

The Allstate Corp. is based in Northbrook, Ill.

For more information regarding the above web blog, please call Dean or Bonnie Isenberg at 305-936-2489 / 800-819-5466 or visit us on-line at A-Realtor.Com

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