Offshore investors snapping up Fla. real estate
MIAMI (AP) – Aug. 8, 2011 – Offshore investors are flocking to Florida’s distressed real estate prices as major companies with ties to Hong Kong, Spain, Argentina and Malaysia are snapping up properties sensing the local market has bottomed.
International companies can park their investment and position themselves for the next development cycle, said Tere Blanca, president and chief executive officer of Miami-based Blanca Commercial Real Estate.
“Acquiring prime properties at discount prices in the height of the market was not achievable. Whomever has deep liquidity and can be nimble and act when opportunities arise can acquire properties at what we consider to be solid pricing,” he said, according to the Daily Business Review.
Stephan Gietl of Austria and his partner Fernando Levy-Hara, of Argentina, have purchased 307 South Florida condo units for $40 million since 2009. The duo has sold most of the units, mainly to international investors. Levy-Hara says the units yield between 5 and 6 percent profit per year after maintenance fees and property taxes.
“With the potential appreciation, if you’re buying at half the price of the bubble, you have the potential to go up 60 to 70 percent in the next five years,” he said
Fewer homes for sale, inventories fall sharply
WASHINGTON – Aug. 5, 2011 – High inventories of homes for sale have plagued many markets, but in a recent analysis of metro areas, inventories were found to be shrinking sharply during the second quarter, The Wall Street Journal reports.
About 2.34 million homes were listed for sale on the multiple-listing service by the end of June, the lowest level for that time of year since at least 2007, according to Realtor.com. What’s more, some inventory levels even reached their lowest levels since the housing crisis began five years ago, which has prompted some markets to even say their facing a shortage of homes on the market.
In its analysis, The Wall Street Journal found that of the 28 major metro areas evaluated, inventory levels had dropped in all 28 – except for three. What’s more, they found that inventories had dropped by double digits in 16 of those markets during the second quarter when compared to a year ago. For example, inventories dropped in Miami by 43 percent from a year ago; 30 percent in Washington, D.C., and more than 20 percent in cities like Charlotte, N.C., Seattle, and San Francisco.
Foreclosure activity down in most U.S. metro areas
LOS ANGELES – July 28, 2011 – Most of the nation’s largest metropolitan areas are seeing a sharp drop in foreclosure activity as banks take longer to move against homeowners who are behind on their mortgage payments.
In the first half of this year, 84 percent of metropolitan areas with a population of at least 200,000 saw their foreclosure rate drop versus the same period last year, foreclosure listing firm RealtyTrac Inc. said Thursday.
State forecasts property value increases
TALLAHASSEE, Fla. – Aug. 4, 2011 – In a sign that Florida’s housing market may be on the road to recovery, the state’s top economist expects an increase in school property tax rolls next year of 1.3 percent.
Vacation homes: Why it might be time to buy
WASHINGTON – Aug. 2, 2011 – Home price declines remain the norm in many areas, but experts say certain luxury markets are picking up steam and attracting affluent vacation-home buyers.
The median second-home price fell 11 percent to $150,000 in 2010 from the prior year, according to the National Association of Realtors® (NAR). And the price dropped 25 percent since 2006, compared to a 22 percent decrease for the overall housing market.
Experts say sales activity depends on geography, with buyers more interested in prime vacation spots
NAR: Pending home sales rise in June
WASHINGTON – July 28, 2011 – Pending home sales increased in June following a wide swing down in April and then up in May, according to the National Association of Realtors® (NAR). Month-to-month activity increased in the West and South but declined in the Midwest and Northeast. However, all regions show strong double-digit gains from a year earlier.
The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 2.4 percent to 90.9 in June from 88.8 in May, and is 19.8 percent above the 75.9 reading in June 2010, which was the low point immediately following expiration of the homebuyer tax credit. The data reflects contracts but not closings.
Wednesday, August 10, 2011
Monday, August 1, 2011
Inventory continues to Drop - Median Sales Price is Up
Blog posts
Kiplinger letter dated 7-8-2011
One bright spot in the housing market: an influx of buyers from China. Chinese buyers will account for 9% of foreigners purchasing US homes this year, second only to Canadian buyers, who make up 23% of foreign home purchases. They’re snapping up bargains in California, Nevada, Florida and New York, typically shelling out more that the average home price in any given locale. Foreign buyers see US homes as good investments opportunities over the long run. Beijing is helping drive investors abroad. In a bid to slow inflation at home, it has banned multiple purchases of properties around 30 major cities in China.
Home building spikes in June
WASHINGTON AP. Builders broke ground on 14.6% more single-family homes and apartments; building permits increased 2.5%.
Housing expected to improve over last year
WASHINGTON – July 19, 2011 – The U.S. housing market, aided by a recovering rental sector, is unlikely to experience a “double-dip” setback, Freddie Mac said Monday.
In its U.S. Economic and Housing Market Outlook for July, the Federal Home Loan Mortgage Corp. said housing likely will follow the performance of the overall economy for the rest of 2011. Additionally, home sales are projected to be above last year’s numbers by 3- to 5 percent.
In its U.S. Economic and Housing Market Outlook for July, the Federal Home Loan Mortgage Corp. said housing likely will follow the performance of the overall economy for the rest of 2011. Additionally, home sales are projected to be above last year’s numbers by 3- to 5 percent.
What does the future hold for jumbo loans?
NEW YORK – July 18, 2011 – The private market is ready to fill the void when conforming limits on government-backed mortgages at Fannie Mae, Freddie Mac, and the Federal Housing Administration expire at the end of September 2011, Federal Reserve Chairman Ben Bernanke told the House Financial Services Committee on Wednesday.
On Oct. 1, the maximum mortgage amount in high-cost areas is set to drop from $729,750 to $625,500.
On Oct. 1, the maximum mortgage amount in high-cost areas is set to drop from $729,750 to $625,500.
More buyers purchasing multimillion-dollar homes
- By LAURA LAYDEN
- Posted July 15, 2011 at 2:30 p.m., updated July 15, 2011 at 3:40 p.m.
NAPLES — Buyers are showing more interest in multimillion-dollar mansions in Naples.
From April to June of this year, sales for homes and condos priced at $2 million and up increased 20 percent, when compared to the same months a year ago. There were 91 sales, up from 76 a year ago in this market, according to report by the Naples Area Board of Realtors (NABOR).
Wealthy Americans upgrade to pricier primary homes
NEW YORK – July 13, 2011 – Amid still-depressed housing numbers that dominate headlines, a new survey by the independent New York City-based Luxury Institute and the Institute for Luxury Home Marketing finds that high net-worth U.S. homeowners are taking advantage of the downturn and trading up into higher-priced primary residences.
Lured by lower prices, one in four U.S. consumers with an annual income of $150,000 or more have bought a residential property since 2008 at a median purchase price of $509,000 – an increase of 3.2 percent from the 2005 to 2007 period.
Most new residences (83 percent) are single-family homes and two-thirds of those are in suburban settings. Seventeen percent plan to purchase additional property this year, while 23 percent of those younger than 50 plan to buy in 2011.
More than one-third (37 percent) of the wealthy value their homes at $1 million or higher, while 32 percent assess their primary residence to be worth $500,000 or less.
Seventy percent of wealthy homebuyers used a real estate agent to help with their property purchase, and two-thirds of that group says they would work with the same agent again.
“Luxury is the good news story in real estate,” says Laurie Moore-Moore, CEO of The Institute for Luxury Home Marketing. “The number of wealthy households has jumped back to pre-recession levels and affluent home buyers are actively purchasing. The National Association of Realtors’ statistics show that national home sales at $1 million and above were up more than 18 percent year-over-year in 2010. Strong activity continues this year as well.”
Lured by lower prices, one in four U.S. consumers with an annual income of $150,000 or more have bought a residential property since 2008 at a median purchase price of $509,000 – an increase of 3.2 percent from the 2005 to 2007 period.
Most new residences (83 percent) are single-family homes and two-thirds of those are in suburban settings. Seventeen percent plan to purchase additional property this year, while 23 percent of those younger than 50 plan to buy in 2011.
More than one-third (37 percent) of the wealthy value their homes at $1 million or higher, while 32 percent assess their primary residence to be worth $500,000 or less.
Seventy percent of wealthy homebuyers used a real estate agent to help with their property purchase, and two-thirds of that group says they would work with the same agent again.
“Luxury is the good news story in real estate,” says Laurie Moore-Moore, CEO of The Institute for Luxury Home Marketing. “The number of wealthy households has jumped back to pre-recession levels and affluent home buyers are actively purchasing. The National Association of Realtors’ statistics show that national home sales at $1 million and above were up more than 18 percent year-over-year in 2010. Strong activity continues this year as well.”
Dottie Babcock COO John R. Wood Realtors 7/18/2011 reports
Data taken from the Naples/Estero and Bonita MLS
Closed Sales
Closed sales year-to-date are at the highest level since 2005.
Closed sales are up over prior year in all price segments with the exception of properties priced above $5,000,000,
which remains approximately even with the same period 2010 (17 closed year-to-date 2011 vs 16 in 2010).
Closed sales between $1,000,000 and $5,000,000 are up 15% over first six months 2010.
Median sales price has increased 18% since January
Pended SA LES
Pended sales above $1,000,000 posted a 25% increase for the month over June 2010.
Year-to-date pended sales are approximately even with the same period 2010, and the third highest on record for the period.
NEW LISTINGS
The number of new listings placed on the market in June was the lowest for the month since 2004.
Available inventory in the Naples, Bonita Springs, Estero market stands at 7,589 units (4,027 condominiums and 3,562 single
family homes). This represents a 22% decrease from July 1, 2010.
Overall inventory continues to fall and currently stands at approximately a nine month supply.
End of blog
Market activity continued at an active pace during the month of June, as buyers began returning for the summer “buying season”. Inventory continued to drop and the median sales price is up substantially since the beginning of the year. Now is the time to begin focusing on building a listing inventory for the winter season. With some segments already experiencing a shortage of product, it is increasingly important to remain the company with the widest selection of well-priced properties in order to meet buyer needs.
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