South Florida Real Estate News

 

Dec. 6, 2019

Rich Home Sales in Miami went up twice digits in October; Total Sales, Average Prices Also went up

Miami-Dade County luxury $1-million-and-up home sales, total home transactions, single-family home purchases, median sale prices and dollar volume went up year after year in October 2019, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.

Miami single-family home sales increased up to 2.3% year-to-date versus the first 10 months of previous year; condo sales are up 0.5% year-to date. 

“Miami’s rise as a global city, a new federal tax law limiting deductions on state and local taxes and low mortgage rates continue boosting home sales,” MIAMI Chairman of the Board José María Serrano said. “Northerners and other homebuyers are not just purchasing second homes; they are bringing businesses and moving here full time.”

Miami Luxury Home Sales, Total Sales Rise in October

Total luxury ($1-million-and-up) home sales surged 13.8% year-over-year in October 2019, from 123 to 140. Single-family home luxury sales jumped 16.7% to 77 transactions last month. Condo luxury sales went up to 10.5% to 63 transactions.

Total Miami-Dade County home sales went up 3.1% year after year, from 2,285 to 2,355. With loyal consumers, low unemployment rate, high job vacancies and increased migration to Florida, Miami real estate has a promising growth.

Miami single-family home sales increased 6.8%, from 1,073 to 1,146. Miami existing condo sales decreased a negligible 0.2%, from 1,212 to 1,209. Single-family home dollar volume rose 7.7%, from $522.9 million to $563.1 million. Condo dollar volume jumped 8.1%, from $426.2 million to $460.7 million.

According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased to 3.69% in October, up from 3.61% in September. The average commitment rate across all of 2018 was 4.54%.

Lack of access to mortgage loans continues to restrain further growth of the existing condominium market. Of the 9,307 condominium buildings in Miami-Dade and Broward counties, only 13 are approved for Federal Housing Administration loans, down from 29 last year, according to Florida Department of Business and Professional Regulation and FHA.

Almost Eight Consecutive Years of Price increased in Miami - Miami-Dade County single-family home prices increased 6.8% in October 2019, increasing from $350,000 to $365,000. Miami single-family home prices have risen for 95 consecutive months, a streak of 7.92 years. Existing condo prices increased 5.1%, from $235,000 to $247,000. Condo prices have increased or stayed even in 97 of the last 101 months.

Despite the price increase, Miami, where the average price is still comparable to 2006 figures, remains a bargain compared to other global cities. In Miami, $1 million can net homebuyers 93 square meters of prime property, according to Knight Frank’s 2019 The Wealth Report. Monaco (16 square meters), Hong Kong (22), New York (31), Los Angeles (36) and others offer significantly less prime land for $1 million.

Miami Distressed Sales Stay Low, Reflecting Healthy Market

Only 6.4% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 6.6% in October 2019. In 2009, distressed sales comprised 70% of Miami sales.

Total Miami distressed sales stayed even at 150 in October 2018 and October 2019.

Short sales and REOs accounted for 1.2% and 5.1%, respectively, of total Miami sales in October 2019. Short sale transactions increased 3.6% year-over-year while REOs decreased 0.82% percent. Nationally, distressed sales represented 2% of sales in October, unchanged from September but down from 3% in October 2018.

The median number of days between listing and contract dates for Miami single-family home sales was 50 days, a 16.3% increase from 43 days last year. The median number of days between the listing date and closing date for single-family homes was 95 days, a 6.7% percent increase from 89 days. The median time to contract for condos was 71 days, a 1.4% increase from 70 days last year. The median number of days between listing date and closing date stayed even at 113 days. The median percent of original list price received for single-family homes was 95.9 percent. The median percent of original list price received for existing condominiums was 93.7 percent.

Miami cash transactions comprised 32.6% of October 2019 total closed sales, compared to 37.2% last year. Miami cash transactions are almost double the national figure (19%).

Miami’s high percentage of cash sales reflects South Florida’s ability to attract a diverse number of international homebuyers, who tend to purchase properties in all cash.

Condominiums comprise a large portion of Miami’s cash purchases as 43.9% of condo closings were made in cash in October compared to 20.7% of single-family home sales.

Seller’s Market for Single-Family Homes, Buyer’s Market for Condos

Inventory of single-family homes decreased 4.6% in October from 6,864 active listings last year to 6,548 last month. Condominium inventory decreased 4% to 15,295 from 15,928 listings during the same period in 2018.

 

Posted in News
Nov. 20, 2019

Approximately 30 percent of Millennial Renters from Miami are only saving enough money to buy a property

In South Florida, a study concluded that only less than half of the millennial renters can afford to buy a property.

As per a study made by Apartment List, an online rental listing website, renters from 23-38 over the past five years within 16 U.S. metro areas. Researchers considered what percentage of millennial renters in a given metro area could afford a down payment of 20 percent, 10 percent or 5 percent within the next five years.

Only a few millennial renters in Broward, Miami-Dade and Palm Beach counties could afford an average priced condo of $202,500. While only 13 percent of millennial renters could afford a 20 percent down payment, 30 percent could afford a 10 percent down payment and 43 percent could afford a 5 percent down payment.

In spite of less than half of millennial renters being able to buy, Miami is still included in the five metro areas with the highest share of millennial renters on track to put 10 percent down on their first home within the next five years: Minneapolis (34), Houston (34), Philadelphia (33) and New York (31).

But as per George Jalil, broker and president of First Service Realty ERA Powered, the lack of state and city income taxes compared to other cities like New York may be allowing renters to save more.

The study also reckoned the portion of millennial renters that expect to rent for the rest of their lives: Miami and Philadelphia were the only cities that had the highest percentage of millennial renters on track to buy a home within the next year with the most positive attitude about buying for the first time. About 8 percent of millennial renters in Miami and about 9 percent in Philly believed they would never be able to purchase a home and just continue on renting.

Renters in Miami may be more positive about buying since they may be looking to relocate elsewhere in the state to buy, said Popov. He found Miami renters are looking to relocate to Tampa, Jacksonville and Orlando.

Millennial renters in San Francisco (17 percent), New York (15), Los Angeles (15) and Chicago (13) believed they would rent for the rest of their lives.

 

Millennial renters are looking at town houses in Cutler Bay and Miami Gardens in Miami-Dade County for their first home property. In Broward, millennial renters often consider Pembroke Pines, Hollywood, Tamarac, Coral Springs and Cooper City.

The Miami metro area is included in the least affordable rental markets in the country, according to a 2018 study by Apartment List. As much as millennial renters wanted to get a property, since they are not getting a wage increase, they are unable to do so.

Posted in Real Estate News
Nov. 20, 2019

Loan applications for New Homes went up since sales get to seven-year high

Mortgage applications to purchase new homes last October went up by almost one third year after year as sales came up to their highest annual rate since the Mortgage Bankers Association first track the data.

 As per MBA's Builder Application Survey, consumers are looking to exclude a secured mortgage for a new home went up by 31.5% from last year. In contrast with September, the applications went up by 9%. Joel Khan, the MBA's associate vice president of economic and industry forecasting, said that "At an annual pace of 791,000 units, our estimate of new sales has reached its highest level since the inception of our survey in 2012."

 "Homebuilder point of view remains close to 18-month highs, and housing starts and permits have went up for four straight months. These are favorable signs for the housing market, as the rise in new and existing housing supply has led to slower home-price growth and improving affordability."

 October's sales grew for new homes at  9.1% from September's pace of 725,000 units.

Also, an estimated 61,000 new homes sold in October, compared with 56,000 in September and 53,000 during October 2018.

The normal loan size went up to a six-month high of $335,235 from $330,807 for September. The normal loan size last year was $331,732. Even with the growth in loan value, some borrowers went after conventional mortgages, 67.8% in October, compared with 69.2% the prior month.

 The share of Federal Housing Administration-insured mortgages increased to 19.2% from 18.4%, while Veterans Affairs-guaranteed mortgages took a 12.3% share, versus 11.6% the prior month. The share of U.S. Department of Agriculture Rural Housing Service loans fell to 0.7% from 0.9%.

 Individually, the number of single-family construction authorizations went up on a year-over-year basis in October for the first time since September 2018, according to BuildFax.

 On the other hand, current home maintenance activity continued its upswing, rising 6.08% over October 2018.

 Jonathan Kanarek, BuildFax's managing director said, "Last November, housing activity experienced the first instance of blanket declines since 2011, when the economy was still recovering from the 2008 recession," 

 "Almost after a year following November's decrease , we're now seeing blanket increases. In light of the recent upswing in housing activity, it's likely the 2019 housing slide was a stabilization of a white-hot market. This is, of course, further bolstered by a strengthening economy that recently experienced interest rate cuts, steady wage growth and a reversion in the yield curve," said Kanarek.

 

Posted in Real Estate News
Oct. 9, 2019

FHA RELEASES A NEW CONDOMINIUM APPROVAL REGULATION

- Present a new single-unit approval process to make it easier for individual condominium units to be eligible for FHA-insured financing;

- Expand the recertification requirement for approved condominium projects from two to three years;

- Authorized more mixed-use projects to be eligible for FHA insurance.

Single-Unit Agreement

As of October 15, FHA will insure mortgages for selected condominium units in projects that are not currently approved.  An individual unit may be eligible for Single-Unit Approval under the following conditions:

- The individual condominium unit is located in a completed project that is not approved;

- For condominium projects with 10 or more units, no more than 10 percent of individual condo units can be FHA-insured; and projects with:

Minimum Owner-Occupancy Requirements

- FHA will require that approved condominium projects have a minimum of 50 percent of the units occupied by owners for most projects.

- fewer than 10 units may have no more than two FHA-insured units.

 

FHA Insurance Concentration in Condominium Projects

- FHA will only insure up to 50 percent of the total number of units in an approved condominium project.

Posted in Real Estate News
Oct. 3, 2019

The Battle for a Perfect Home

Two generations are in a competition in finding their perfect home. The first group are the boomers, as being born between 1946 and 1964, these are the people who survived wars and atomic bombs, and the second group are the Millennials or Generation Y, who are great with new and advanced technologies and are social media experts. They may have a huge age gap and a lot other differences but they have one thing in common --- they are both in search of a perfect home. 

Millenials / Generation Y -- the quest to find their first home.

As observed, millenials are likely not in a hurry to get their first home. Almost 23% of these generation are still dependent to their parents. Instead on renting their own space, they save their money to pay off their student debt and save more money to buy their own space in the near future. But once they decided to move out and get the space of their own, it is expected that they wont settle for anything less. They would rather not spend in getting married but rather invest it on their ideal home.

Boomers - The Left Out

Once their kids moved out or start their own family, these boomers are free to choose the lifestyle that they want. Either buy a home that suits their lifestyle or buy a property out of town where they can relax and settle whenever they want to. 

But before getting your ideal home, regardless if you're a Millennial or a Boomer, here are some tips that you can follow:

*Get an Agent - they are the experts in getting you the perfect home that suits your needs. 

*Choose the best Loan option - balance and think carefully about the different loan options that is available for you.

*An Extended Contract Means More Solidity - The best and popular option is the 30-year contract. There is an assurance that the payment is not going to change at any point and you can still decide if you want to sell it after a few years or not.  

But nevertheless, Boomer or not, Millenial or not, we all dreamed of getting our ideal home. Happy house hunting!

 

  

Posted in News
Sept. 20, 2019

The Best Time of The Year for Homebuying

The best time to buy a new home is the first week of fall, which in this year falls on the week of September 22. This time of the year, shoppers have less competitions, more price reductions and more properties to choose from. This is according to  a data gathered last 2016-2018, it was agreed that there's a special week in September where US buyers face 26 percent less competition in getting a new and there's 6.1 percent more properties on the market to choose from, compared to any other normal week of the year. Nearly 6 percent of on the market offers discounted price than their usual price that's why this week in September is considered and tagged as "Black Friday" for homebuyers. 

George Ratiu, a senior economist for realtor.com also agreed.  He said that once school year started, many homebuyers pause in getting a new home and wait until the next season to search again. It is undeniable to homebuyers that the month of September is the best time to buy a property, with the discounts that they could get and less competition in the market.  These effects are more undeniable in the West where buyers have at least 30 percent less competition compared to a regular week. On a market basis, Seattle leads the country, with a 41.3 percent drop in competition compared to a regular week of the year, followed by Portland, Oregon which is 35.5 percent, Buffalo NY with 34.8 percent, Milwaukee with 32.8 percent and Minneapolis with 32.6 percent. 

This particular week also offers a large price reduction for homebuyers. Nationally, almost 6 percent of listed homes reduced their prices to attract buyers. This is evident in Denver with 11 percent of their listing prices were reduced. Followed by Salt lake City with a 10.8 percent, Seattle 10.2 percent, Austin Texas 9.9 percent and Portland Oregon with 9.9 percent. Additional new listings of at least 116,000 this year added to the  national inventory also contributes in making this week the best time of the year to buy a home. With 6.1 percent more listings than a regular week and 76 percent more than the beginning of the year. Seattle with 41 percent more listings than a regular week of the year, followed by Portland Oregon with 30.9 percent, San Jose California with 28.6 percent, Denver 27.2 percent and Dan Francisco with 25.7 percent. 

Posted in Real Estate News
Sept. 9, 2019

Broward County Total Home Sales Surge in July 2019

Broward County total home sales jumped nearly double digits as median price, dollar volume and luxury transactions rose for all properties, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS)  system. Broward total home sales went up by 9.7% year-over-year, from 2,900 to 3,181. Broward single family home sales increased to 11.9%, from 1,460 to 1,634. Broward condos increased 7.4%, from 1,440 to 1,547. Broward total home sales increased 9.7% every year, from 2,900 to 3,181. Broward single family home sales increased 11.9%, from 1,460 to 1,634. Broward condos rose 7.4%, from 1,440 to 1,547. Single family home dollar volume rose 20.3% from $644.7 million to $775.8 million. Condo dollar volume rose 13.8% percent from $302.3 million to $344.1 million. New listings of Broward single-family homes decreased 5.5% from 1,994 to 1,884. New listings of condominiums decreased 2.3%, from 1,972 to 1,926. Nationally, total housing inventory at the end of July decreased to 1.89 million, down from 1.92 million existing-homes available for sale in June, and a 1.6% decrease from 1.92 million one year ago. Unsold inventory is at a 4.2-month supply at the current sales pace, down from the 4.4 month-supply recorded in June and down from the 4.3-month supply recorded in July of 2018.

 

Posted in Real Estate News
Sept. 9, 2019

Broward County Median Home Prices Continue to Rise in 2Q 2019

Broward single-family home sales rose 2.7% year-over-year in 2Q 2019, it increased from 4,544 to 4,666. Condo transactions downgraded 5.9%, from 5,104 to 4,805. Second quarter mid-market sales increased for all types in Broward. Single-family home sales in the $250,000 to $600,000 range increased 7.2%, while condo sales in the $150,000 to $400,000 range increased 6.7%. Lack of supply in certain price ranges and neighborhoods coupled with lack of FHA loans for Condos in Florida is negatively impacting local sales activity. The median price for single-family homes in Broward County increased to $365,000 in 2Q 2019, a 1.6% jump from $359,238 in the same period last year. The median price for existing condominiums increased 3.2.6% year-over-year from $170,500 to $175,000. At the current sales pace, the number of active listings represents 4.3 months of inventory for single family homes and 5.9 for condominiums. A balanced market between buyers and sellers offers between six and nine months of supply inventory. Cash sales accounted for 50.9% of all Miami existing condo sales and 17.8% of single-family transactions. Nationwide existing single-family home sales increased 4.3% to a seasonally adjusted annual rate of 279.6 million in the second quarter, up from 268.0 million in the second quarter of 2018, according to NAR. Condo sales nationwide increased 3.6% to a seasonally adjusted annual rate of 255.04 million in the second quarter. Statistics in this news release may vary depending on reporting dates. MIAMI reports exact statistics directly from its MLS system. 

Posted in Real Estate News
Nov. 8, 2018

Natural Beauty Surrounds Davie Property

Davie property overflows with the scenic touch of Mother Nature. The Flamingo Gardens provide a place for locals and visitors to South Florida to experience the vitality of the landscape. Well over 50 acres boast both an impressive botanical garden, museum and wildlife sanctuary. The roots here are deep with the venue first created in 1929.

Inside the botanical garden guests find an array of smaller, themed areas. Inspiration is often gathered in the hummingbird and butterfly gardens. Here residents learn how to recreate similar plots in the backyards of Davie homes. Both the Croton and Bromeliad gardens are also favorite spots to linger. The pride of the Flamingo Gardens is an extraordinary canopy of live oaks hundreds of years old. Intermixed among the trees are colorful orchids and epiphytes. Wanderers often wonder at the sites and sounds that have moved amongst these plants throughout the decades. Families spend much of their visit in the Children’s Garden. Youngsters can dig in and get hands on in this interactive space.

Get to Know the Wildlife Calling Davie Home

Those wanting to really explore the grounds partake of a narrated tram tour. Folks travel into the depths of the Davie property through jungle growth, rainforest and wetlands. Riders wanting to stretch their legs can leave the tram, stroll about the Pioneer Walkway, and hop back on at a later time.

Flamingo Gardens is home to a variety of South Florida wildlife. Many of the animals finding sanctuary here cannot survive on their own. Almost 100 species flourish under expert care. South Florida bird watchers are in absolute heaven when observing in the Free-flight Aviary. Hundreds of wading birds fluff their feathers and call out a hello. Nearby sits the Bird of Prey Center which has been declared as “the largest raptor collection in the United States.” Other magnificent animals in the wildlife sanctuary include otters, alligators, bobcats and panthers. Wildlife shows engage audiences teaching them all about these amazing animals and the importance to protect their habitats.

Get to know the South Florida landscape. Plan a visit to the Flamingo Gardens today. It will truly take your breath away.

 

Posted in News
Nov. 8, 2018

Experience the Wonder of Children Living in Miami

Children living in Miami learn through play. The fun is never ending at the Miami Children’s Museum. Located at 980 Macarthur Causeway a variety of educational, interactive exhibits await youngsters. The museum abides by a mission “dedicated to enriching the lives of children by fostering a love of learning through play and enabling children to realize their highest potential." Established in 1983, this critically acclaimed institute has been putting smiles on youngsters faces on a daily basis.

Creativity abounds in the halls and beyond. Numerous exhibits have been carefully crafted to stimulate imagination. Colorful backgrounds encourage lively adventures. Plenty of places to play slip learning in under the radar. Kids living in Miami focus only on having a good time.

High spirits are embraced throughout the venue. Board the Cruise Ship and learn all about travel on the sea. Point the ship in the right direction when in the navigational control station. Find the perfect spot for a vacation after studying the destination wall and check out artifacts from cruise ships along the way. The Pirate Island continues the fun above deck. Buccaneers learn how to tie sail worthy knots, work with ropes and speak pirate lingo. Some will end up walking the plank but all in fun.

Creativity Abounds on Miami Property

Art is in the eye of the beholder and viewed all around. Elements of art are taught in All About Art. Here different mediums are introduced as well as the concepts of texture, form, shape and color. Sketch Aquarium provides a virtual experience where the work of budding artists becomes digitized in an animated aquarium.

The Miami Children’s Museum teaches young residents all about their South Florida home. Kids get hands on in the Port of Miami where they are taught about exports and imports, how to work a crane and maneuver through the waterways. The South Florida and Me space introduces the state’s delicate ecosystem. Species that thrive in the Everglades are spotlighted here.

There is so much to do at the Miami Children’s Museum. The Miami property doors are open seven days a week so plan a trip today and experience the wonder.

 

Posted in News