If you haven’t seen below article in today’s Miami Herald, I highly recommend reading it.
I have been discussing this issue with my fellow realtors for weeks now and we all believe that there will be more foreclosures hitting our markets and prices will come down again. This however – as any statistic – is a very general statement and of course doesn’t apply to every area or condo building. If you are however in the market for a condo in a building that has had lots of defaults in the past (Flamingo South Beach comes to mind), waiting for the next wave of foreclosures might pay off for you.
If on the other hand, you have been planning to sell your Miami Beach condo or home now might be time to do it. Currently all “cheap” inventory has cleared out, paving the way for seller’s to get top dollar for their properties once again. Keep in mind that once more foreclosures hit your building / neighborhood, prices will likely decrease again.
While I don’t have a crystal ball and definitely can’t say this with absolute certainty (as can nobody else), I firmly believe that NOW IS THE TIME TO SELL YOUR MIAMI BEACH CONDO.
Low inventory, high demand, low interest rates and the beginning of tourist season make this a perfect storm. Don’t miss the boat and be left out in the rain once again ! If you believe that my evaluation of the current market situation makes sense, feel free to contact me. I might just know the right person to sell your Miami Beach condo.
Home prices are on the rebound in South Florida, an unlikely side-effect of the banking industry’s yearlong foreclosure slowdown and documentation problems.
BY TOLUSE OLORUNNIPA
In the year since mortgage lenders discovered employees were systematically cutting corners in the foreclosure court system, banks have slowed their home repossession machines from top-speed to a near-halt. In the meantime, prices for South Florida homes have begun to rise for the first time since the crash, providing a glimpse of what the market might look like in a post-foreclosure world.
Amid soaring sales in August, median prices for existing South Florida homes rose nearly across the board:
• Condos in Miami-Dade County jumped 13 percent to $118,800.
• Condos in Broward County were up 6 percent to $79,500.
• Broward single-family homes rose 5 percent to $191,800.
• Miami-Dade single-family homes were down 1 percent to $180,900.
Even as Wednesday’s housing report by the Miami Association of Realtors showed widespread appreciation, some analysts warned that the rising prices are only a short-term reprieve from what will be an extended period of housing hardship once foreclosures get back going again.
“These foreclosures aren’t going to go away — they’re going to be settled one way or the other,” said Jack McCabe, CEO of McCabe Research and Consulting in Deerfield Beach. “The robo-signing has significantly slowed the foreclosure process, but we’re already seeing a change around the state and the nation. Foreclosures were up nationwide about 33 percent last month.”
With the foreclosure engine no longer spurting out thousands of new cheap properties onto the market each month, inventory has been dropping rapidly. In the last year, the number of homes on the resale market decreased from 25,679 to 15,405 in Miami-Dade, and dropped from 21,143 to 13,476 in Broward.
That sharp decline in supply — which is helping push prices upward — can be attributed, in part, to a surge in sales driven by international buyers.
Condo sales in Miami-Dade jumped 60 percent in August to 1,311, while single-family home sales rose 49 percent to 951. In Broward, condo sales rose 21 percent to 1,398 and single-family sales were up 19 percent to 1,185.
“Already a magnet for international and for second and vacation home buyers, Miami is now attracting domestic and foreign buyers who recognize that the market has bottomed, and prices are on the upswing,” said Ralph E. De Martino, residential president of the Miami Association of Realtors.
But the surge in sales is only half the inventory story. Housing supply would not be declining as quickly if foreclosure proceedings were humming along at a more appropriate pace. Last August, before the robo-signing revelations, banks repossessed about 4,000 homes in South Florida and began readying them to be sold to new buyers. The number of monthly repossessions has since dropped to about 1,500, even though the mortgage delinquency rate has held mostly steady over the last year.
That begs the question: What will happen when banks begin to deal more directly with what has become an unprecedented backlog of delinquent mortgages?
“Sooner or later the problem has to be addressed,” said Jose Fente, a Hialeah real estate broker who sold a region-leading 373 foreclosure properties last year. “There are a ton of defaults out there that are not being dealt with.”
Fente, owner of Tropical Realty, said banks have been giving him far fewer homes to liquidate this year, despite his track record of quickly finding buyers for the properties.