Rob Rose Real Estate Blog

Foreclosure Peak Expected in 2013

2011-10-19T12:50:00.001-04:00

The sale of properties repossessed through foreclosure may not peak until 2013, keeping home prices from a meaningful recovery for some time, analysts estimated Monday.

Nearly half of the more than 552,000 REO properties liquidated in the first half of 2011 were held by private banks. In the years ahead, the government — including the Department of Housing and Urban Development, Fannie Mae and Freddie Mac — will begin taking a majority of the activity.

In 2013, REO sales could reach 1.48 million properties, according to estimates from Bank of America Merrill Lynch analysts, a 10% increase from projected amount in 2012.

"We do not expect to see anywhere near the downward pressure on home prices that we had back in 2008, since the expected percent changes in liquidation volumes are so much smaller," BofAML analysts said. "But home prices are starting from a negative point, so the implication is that home prices will continue to decline as the foreclosures transition through the pipeline."

Most of the projected increase will come as the government begins to unload its backlog. The government-sponsored enterprises and HUD, analysts estimate, will liquidate roughly 595,000 properties in 2013 alone.

Total REO liquidations wouldn't drop below 1 million until 2015, according to BofAML.

The Obama administration began work last month developing new strategies for selling this mass of properties, which may involve renting more of them. The Federal Housing Finance Agency is also working on a way to refinance more underwater borrowers to entice them from walking away.

"I would essentially rent the house back to those who are living in them now," said Susan Woodward, an economist with Sand Hill Econometrics. "I don't think it makes a lot of sense to push 4 million people out of their homes when they're victims of a slower economy they had nothing to do with."

Other analysts were skeptical of anyone who could predict accurately what the GSEs or Washington would do, especially after the elections in 2012.

"Do they really think that the government under any administration would let 500,000 homes hit the market and crash prices all over again, six years after the first crash?" said Scott Sambucci, chief analyst at Altos Research.

He said even if unemployment improved by a full percentage point or two — which he said would be a stretch — the market would still struggle to meet such a supply influx.

"It would crash the market, so no, it'll never happen," Sambucci said.

Daren Blomquist at RealtyTrac, which monitors foreclosure filings across the country, said the sale of REO is on track to reach 825,000 by the end of 2011.

"We do expect the REOs to pick back up in 2012 as lenders push through some of the foreclosures delayed by processing and paperwork issues," Blomquist said, adding the inventory needed to be sold could reach well into the millions.

If half of the 800,000 mortgages currently somewhere in the foreclosure process and another half of the 1.5 million loans in serious delinquency end up REO, it could mean an additional, 1.15 million properties that would need to be liquidated — not including new foreclosures that enter the process, according to RealtyTrac.

"That's very possible given continued high unemployment rates and high underwater rates," Blomquist said. RealtyTrac estimates roughly 27% of all outstanding mortgages are worth more than the underlying property.

Woodward said refinancing borrowers, in negative equity or not, down to current market rates could result in a total savings for U.S. households at $250 billion annually. When asked if private investors would return to fund the future mortgage market after such a radical change, she said they would.

"I think the whole world would see this as a one-time fix. We did similar extreme things during the Great Depression," Woodward said.

Investors themselves, though, showed little confidence they would take on such a risk again. In fact, most are trying to keep the government involved in the housing market for the future, to keep risks as low as possible. Otherwise, foreign investors would flee.

While the estimates on how many REO will be sold in the future are extremely difficult to nail down, the size of the best projections share a common and threatening scale. Analysts said major refinancing schemes or new strategies for liquidating REO on a local level would need to be completed soon to rescue house prices from the still increasing pressure of mounting foreclosures.

"The need for policy support would therefore be considered urgent," the BofAML analysts said.

The author of this article is: Jon Prior

Realty Times - The Joys of Homeownership

2011-10-18T08:32:00.000-04:00

Realty Times - The Joys of Homeownership

Real estate gender gap: Men list more homes, women list pricier homes | Inman News

2011-10-18T08:30:00.000-04:00

Real estate gender gap: Men list more homes, women list pricier homes | Inman News

Prices Up, Listings Down, in Many Markets

2011-10-14T13:05:00.000-04:00

National home sales and median price listings in September rose from a year ago with the home inventory down about 20%, according to multiple reports Thursday. These positive signals were offset by a continued slight downward trend in home sales prices, down 3.3% from a year ago. Of the 53 markets surveyed by the company,

17 saw yearly sales price increases, including Detroit (13.4%), Miami (8.4%) and Orlando, Fla. (7.8%). Home sales nationally went up 7.6% from September 2010 with increases in 44 of 53 markets, including Des Moines, Iowa, (31.3%) and Minneapolis (30.1%). Single-family home, condo, townhouse and co-op inventory was down 3.27% from August and down 20.09% from September last year, according to Realtor.com. This year-over-year decrease could mean a return to seasonal patterns and higher prices in the coming months, though markets are still fragile and could weaken in bad economic conditions.

Realtors Should Not Be the Obstacle to Selling Real Estate

2011-10-10T15:54:00.001-04:00

I have spent the better part of two days responding to Realtor requests for showings that get cancelled, or rescheduled, or where the agent doesn’t even show up. Maybe I have just been in real estate too long. Maybe I just have an old fashioned sense of how to behave toward others. Yes, I really do believe that manners- treating others as you would like to be treated, and about making others feel comfortable, is important. I believe in the power of ethical and polite behavior.

Real estate veterans remember well the days when our professional relationships meant something. The pros know that we will deal with each other time and time again, and that has always nurtured camaraderie. For the most part real estate was a gentle business. It was a small community of Realtors that embraced ethics and the power of cooperation through the MLS. While there were still untrustworthy agents, we all knew who they were, and acted accordingly.

Today there are a huge number of new Realtors in the business who lack the basic fundamentals of business behavior. Market knowledge, professionalism, respect for your peers, empathy, ethical behavior and adherence to the Realtor Code of Ethics are keys, if not to success, then certainly to a respectable career that doesn’t abuse the rest of us.

The nature of the business has changed so that the traditional mentoring relationship that a broker had with a new agent doesn’t exist. How can we expect professionalism when franchise offices recruit new agents like mad in pursuit of a profit margin? I am amazed by the number of Realtors who lack respect for the value of other Realtor’s time. Please, let’s not ruin it for everyone. At the very least can you speak clearly on the phone, make appointments in advance during the business day and keep them, get familiar with a map, qualify your buyers and be on time? Is that too much to ask?

Upside Down in Your House?

2011-10-07T17:51:00.001-04:00

Upside down in your house? Owe more than it is worth? Rob can help you turn your house over and get it sold via a short sale. Rob uses a local law firm to handle the short sale negotiations with your lender, at no cost to you. Often they are able to wipe out the debt as part of the negotiated settlement. There are many tricky issues that arise with a short sale. Preparing the buyer for the process, qualifying you with your lender, negotiating a contract price that is likely to be approved by your lender, then negotiating with your lender and the buyer again in the event they don't agree to the contract price, and keeping the buyer from walking away out of frustration are among the tasks unique to selling properties as a short sale. Most short sales fall apart, and properties are often put under contract multiple times before a successful short sale closes. I recently sold a short sale house as the buyers agent where in the 11th hour we were told by the listing agent a foreclosure sale would occur that week. I was able to get the attorney I use to go to court to ask the Judge to delay the sale in order to allow the short sale to go through. A hair-raising ordeal for all concerned but the final outcome was a successful short sale. Not something a novice could accomplish. Please contact me to discuss the finer points of your short sale situation, and give me the opportunity to explain how I can help you get your short sale approved and closed.

Photo - A postcard of The Upside Down House, a developers promotion for houses in Sunrise Gold Village, Sunrise Florida, early 1960's

Have We Reached The Bottom?

2011-10-07T11:45:00.000-04:00

The biggest question my clients seem to have is whether we have reached the bottom of the market. I agree with real estate pundit Barbara Corcoran who says that when we have a consensus that the bottom has been reached, it is long past. I think for the most part the bottom was sometime mid-2010. What has the market in Broward been like so far in 2011? I have worked with a number of out of town buyers and have had hundreds of inquiries from others in the last few months, who have gathered from the news that Florida is having a huge fire sale. A big part of selling real estate has always been reconciling buyer’s expectations with the reality of the market. That is the biggest challenge in today’s market. I worked with four different clients in the last few months who all bid on foreclosure properties. I advised each of them to offer full price, and even more, and they all did. Two succeeded and two lost out to higher offers, one to an offer 50,000 more than the 840,000 list price. Before you think I am nuts to suggest anyone should pay over list during the worst real estate market of my 30-plus year career, let’s look at what the Broward County real estate market of condominiums and houses over 100,000 has done in the last 90 days according to the area MLS data. There are currently 4,206 houses for sale in Broward County over $100,000 that are conventional listings. There are 476 foreclosure listings and 1944 that are short sales. In the last 90 days 1000 conventional sales, 118 foreclosures sales and 443 short sales occurred. In the condominium market priced over $100,000 there are 4106 conventional listings, 291 foreclosures, and 1214 short sale listings. In the last 90 days 721 conventional sales, 330 foreclosure sales and 287 short sales occurred. I looked closer at this data and there are some definite trends that should help buyers understand what is happening in the market. First of all, the number of foreclosure listings is less than most consumers would expect. Foreclosures are the fastest selling category, with most selling within a few weeks of being listed. Most importantly, foreclosure listings are selling in a range from 5% under list to full price, to over list price in many cases. Buyers expecting to get discounts on foreclosure buys were entirely unsuccessful with that strategy, according to the numbers. The sales of short sale properties, that is, homes and condos where the mortgage balance is higher than the market value, had the longest days on market of all. Banks are still not moving with any speed in approving short sales. Short sales are the most frustrating segment of the market where the buyer has little control over the time frame for approval and closing, or if it will happen at all. Pre-approved short sales are the best bet, that is, one where the seller is pre-qualified and a price has been agreed on by the bank. The mortgage company is going to be looking for market value. Some sellers list short sales low to encourage a buyer, but be prepared to agree to a number that aligns with recent comparable sales when the lender responds. Conventional sales have been relatively strong in the last 90 days, pointing to strength in the market coming from the bottoming out of prices. Condos with water views and houses in all price ranges that are priced well, are attracting buyers. Again, the numbers show that properties sell when the price is within ten percent of what they sell for. No huge discounts off list are happening, but the seller has to be realistic in pricing to attract a realistic buyer. It looks like in general Broward County is trending to toward a stronger market. Smart buyers have the largest inventory of available properties to choose from right now. The best deals are in those places where there was the most speculative buying during the boom, such as condos downtown, and infill townhome developments. We don’t have the condo glut that downtown Miami has, or the housing glut of west Florida where overdevelopment was rampant, two areas that have contributed most to the perception of Florida being a real estate disaster. The market in Broward County will continue to be aggravated by the poor economy more than anything. The savvy buyer, however is acting now, and getting some of the best buys Broward County real estate consumers will see for a long, long time.

Symphony Condominium 2/2.5 bath SW Corner Awesome Views!

2011-10-05T16:43:00.001-04:00

Search Fort Lauderdale MLS for Houses

Why I Prefer Being the Second Wife of a Listing

2011-07-20T08:15:00.009-04:00

I have always said I like to be the second wife of a listing. The first wife is the one who struggles through the hard times when the listing is over-priced and the seller overly ambitious. It is during the first marriage of a listing that the sellers start to find fault with their agent. The honeymoon is over after a few months, and even the most reasonable seller starts to look for any reason why the property hasn't sold, and the reason is clearly you.

Then they divorce the first agent, disappointed by the failed relationship, and start dating again, looking in earnest for the trophy wife, the agent who really holds the key to the sale of their property.

What this seller tends to overlook are the price reductions that took place, or that certainly will, once the trophy lister is engaged. Perhaps the seller will do some things to make the property more appealing. Unlike the first go round, now the seller is serious, and listens in earnest to the trophy lister, agreeing to make them happy with price reductions, easier showings, maybe a cleaner appearance overall.

It is during this second relationship that a sale occurs before the honeymoon is over and the seller starts to blame and complain again.

If you have had it with your agent who has failed you, take me on a date. I'll laugh and smile and make you proud, and in the end, I will sell your property, I guarantee!

Ok People, the Bottom is Clearly Here

2011-07-20T08:11:00.005-04:00

Ask anyone who has bought real estate in Broward County this year, or any Realtor currently working in this market. The market has tightened up dramatically as people have come into the market with a determination to buy that we haven't seen since Early 2005. Multiple offers, offers over list price on foreclosures. Today I put a house under contract for a buyer who hasn't even seen it. Earlier this week, a new listing of mine sold in hours for cash, over list, with multiple offers and a back up offer. While we are far from the heady days of 2000-2005, and prices are not increasing, there is now a price that buyers will strike with confidence. If you have been on the sidelines of this market concerned that values are declining, I am confident that that is no longer the case. Well-priced properties are finding eager buyers.

See Fort Lauderdale Real Estate by Boat!

2011-03-21T14:55:00.000-04:00

While Venice is not known as the Fort Lauderdale of Italy, Fort Lauderdale is called the Venice of America, and for good reason. There are over 144 miles of waterways in Broward County. If you are in the market for a waterfront home or condominium, I am happy to show you the area by boat. I have been a boater in the area since I was 15. Whether your interest is a condominium or home with Intracoastal, Ocean, New River, Middle River or canal views, or dockage for a kayak or super yacht, seeing the area from the water gives you a great perspective hard to imagine by land.

A Piece of Florida Sunshine for Canadians

2011-03-14T19:02:00.002-04:00

The cars in a parking lot at Walmart in Hallandale Beach south of Fort Lauderdale tell the tale. About 1 of out every 10 vehicles is from Canada. It's February; the weather is warm in Florida, so many are visiting tourists. But other Canadians are putting down roots.

One recent transplant, Doug Flood says, "If there ever was an 11th [Canadian] province, it probably would be Florida."

Canadians are the largest single group of foreign homebuyers, accounting last year for some 8 percent of total residential sales in Florida.

The maple leaf has long been a familiar symbol in Florida beach communities, on both the Atlantic and Gulf coasts. But over the past several years, Canadian visitors have increasingly become homebuyers.

Canadians are buying property to rent ou to generate cash flow. In most major centers in Canada, you can't buy property and be cash-flow positive. Not even close.
If you're Canadian, you have very low interest rates at home if you want to borrow against your house. You've have a foreign exchange par, dollar-for-dollar. Prices down here that are 40 to 50 percent lower than what they were five at the peak of the boom in 2005.

Canada Avoided The Housing Crash

Canada largely avoided the collapse in housing prices that devastated American homeowners and the U.S. economy.

Because of tighter financial regulations, things like subprime lending and securitized mortgages are unknown in Canada. Foreclosures are rare. So Canadian real estate steadily appreciated while property values in Florida, Arizona and other hard-hit U.S. markets went into the tank.

Brian Ellis, with Florida Home Finders of Canada, a real estate company based near Toronto, says, "It's put a lot of us in a very, very strong position in that we do have a lot of equity in our homes. And now, we can take some of that equity out, pay cash for either an investment property or a second home in the state of Florida."

Ellis holds seminars in Ontario and Quebec for people interested in buying homes in Florida. His company mostly markets new homes in developments where prices are good and where it can assure clients there are no hidden problems, such as underfunded homeowners associations or Chinese drywall.

Most buyers, Ellis says aren't planning on moving to Florida. They're investors, "all looking at buying property to rent out today to generate cash flow." Ellis says you can't do that in most major cities in Canada. "You can't buy property and be cash-flow positive. Not even close," he says.

Who's Buying

There are wealthy Canadians buying multimillion-dollar beachfront homes. And there are people like Dennis Kivlahan, who recently bought a two-bedroom condo in Fort Myers, Fla., sight unseen.

Kivlahan is a high school history teacher from Ajax, Ontario. He used money from a home equity loan to pay $56,000 cash for the property in Florida.

"I liked the price. It was a very straightforward sale," he says. "We went on vacation there myself, my wife and children. And I saw the unit about three months after I purchased it."

Kivlahan is renting it out with the idea of possibly moving to Fort Myers when it's time to retire.

It's not just individual homebuyers taking advantage of low Florida prices. The Minto group, a Canadian homebuilder, recently bought nearly 1,000 lots near Tampa.

For Canadians, it is an investment and something more — a reminder in the depths of winter, they own a place where it's actually warm.

In a recent phone interview from his home in Ajax, Kivlahan said, "You know right now, as we speak, it's about minus 20 with the wind chill, so I wouldn't mind being down there."

That as much as anything explains why, through boom and bust, Florida real estate eventually always bounces back.

Real Estate Taxes in Broward Made Easy

2011-03-14T14:37:00.001-04:00

Real estate taxes in Broward Dade and Palm Beach Counties are often confusing to buyers. Here is a general guideline that will help you determine what your taxes will be on a purchase.

The existing tax bill on a property can vary greatly, depending on how long the sellers have owned it, what they paid, and whether they have homestead exemption, or other types of exemptions that reduce their tax bill. Don’t try to value a property based on the current tax assessment, it won’t make sense.

If you buy a property in 2011, your taxes will be the same as what they were for the seller. In 2012, your property will be re-assessed, and generally your taxes will be about 2.25% of the sales price. To get a more precise estimate of your future property taxes in Broward County, visit http://www.bcpa.net/TaxCalc.asp

There is no penalty charged for out of area property owners, but there are advantages to naming a residential property in Florida as your homestead, or primary residence. To do that you must be able to demonstrate that the property is your primary home. If it is, then you receive a reduction in your tax assessment and your taxes can only go up 3% over the prior year.

If your property is your homestead there is a list of other possible exemptions you may be eligible for. Go to http://www.bcpa.net/TaxCalc.asp to learn more.

For all of your Greater Fort Lauderdale real estate needs, contact:

Rob Rose
R.L. Rose & Co., Realtors
217 NE. 2 Street
Fort Lauderdale, Florida 33301
Office (954) 467-3305
Mobile (954) 328-9700
email robrose@southfloridahome.com
Web www.southfloridahome.com
Facebook www.facebook.com/rlrose
Blog www.robrose.blogspot.com

"Helping People Make Southeast Florida Home For Over 30 Years"

Out Of Town Buyer?

2011-03-14T13:29:00.001-04:00

Being an out of town buyer in today’s southeast Florida real estate market can be a challenge. Desirable, well-priced properties are selling better than they have since the market crash that started in the Summer of 2005. It is often the case that good properties aren’t available during a buyer’s short visit to the area. Looking at sales in Broward County in the last 90 days, I see that well-priced properties, properties listed within 10% of recent comparable sales, are selling fast. Foreclosures are getting offers over list in a third of the cases. I sold one last week within hours of it coming on the market, with multiple offers coming in.

Here are some ways I am able to help my clients find the best property, at the best price, as an out of town buyer.

I can set you up to get automatic emails of any property that may be of interest to you as it comes on the market. All listings, including foreclosure properties, are listed on a MLS system in this area. If a property that meets your criteria is listed today, comes back on the market, or has a price reduction, you will automatically get an email alert of it. If you would like to subscribe to this service the best way to begin is to answer the questions found on my Buyer Survey at:

http://www.southfloridahome.com/bin/web/real_estate/AR40906/ACTIVATE_FRAMES/HOME_FINDER/Fort+Lauderdale/1262874358.html

Keep in mind, I don’t necessarily see the properties you are receiving. Please email me with any questions you may have on a property as soon as you receive them. As a native of the area with over 30 years in real estate, there isn’t a condo, city or neighborhood in Broward that I am not familiar with. I will give you invaluable, unglossed information to help you make an informed buying decision.

If a property is something you are seriously interested in I can make a custom video of it that can be viewed online. You will probably find that this gives you a very good picture of a property. I have sold many properties this way to out of town buyers. Due to the time involved in accomplishing this, please only ask that this be done until you have looked at all available information and pictures and are serious about the possibility of a purchase.

If you decide to make an offer on a property site-unseen, I can provide details on recent comparable sales and advise you on the sales history of the property, the situation of the seller, and other pertinent information to determine the best offer price and strategy. I will then prepare an offer that can be signed by you via email.

In the best case scenario, you would have a week or two to come to the area to see what you have contracted to buy. This way you are not coming to the area to see a property that you find has already sold when you arrive. There are a number of ways to structure an offer where you would have the ability to cancel the purchase within a short time frame, without specifically adding a clause that the contract is contingent on your personal inspection on some future date; terms that sellers typically won’t accept, and don’t accept if it is a foreclosure.

Of course, I offer this incomparable level of service only to buyers who are loyal to me as their Realtor. My time and knowledge are valuable commodities that I try not to give away. My website at www.southfloridahome.com should give you a sense of my knowledge of and experience with greater Fort Lauderdale real estate.

2011-03-08T12:27:00.002-05:00

Is Your Agent Really Working For You?

2011-03-07T17:39:00.002-05:00

I was taught long ago that the role of the Realtor representing a seller was to get the best price possible for their property. In today’s soft market, I have seen many instances where the agent managed to get the seller to accept a price considerably lower than true market value, costing the seller thousands of dollars. Of course, many sellers are stressed and anxious about the possibility of further decline in value, but like a shark that smells blood, self serving agents can feed on that vulnerability by further instilling fear aimed to make a weak offer sound attractive.

I recently had an agent encourage me to accept an offer on a property I have listed at $195,000, for $100,000. He explained that $100,000 is current market value and that I should take it. A week later this property sold for $175,000. Who is this agent working for?

I live in a townhouse complex where two different Realtors have convinced sellers to accept offers that caused everyone in the complex to lose at least $25,000 in value by getting the sellers to take considerably less than they could have gotten.

One of these agents has been very successful listing properties that have already been on the market and not sold, normally because they were over-priced. Looking at the MLS sales history of this agent, he consistently manages to sell properties 10 and 20 percent below market value. For this he is paid three to six percent of the sales price?

Another agent has sold three units under market value. Using the first and second of these sales as a comparable sale to demonstrate why the seller should take less. This was done by the same firm who encouraged me to take $75,000 less than an offer I got a week later.

More times than not, listing agents tend to list properties too high. That is as unprofessional as listing them too low, the main difference being in the second instance the Realtor gets paid but costs the seller money he didn’t have to lose, and in the first the Realtor wastes everyone’s time.
There is of course a middle ground. That is a property that is priced well with a seller prepared to be patient while the buyer is found. For my money, a Realtor who is able to identify the right price and obtain it has earned his commission.

As an example, I recently listed a townhouse in an eight unit community for $325,000. The last sale in the complex was a foreclosure at $285,000. I received three offers at or under $285,000 from agents who pointed to that sale, and even argued that prices had decreased since then. I sold the property for $315,000. As the sellers Realtor, I could have pushed the buyer to accept $285,000 or even less, and argued persuasively in favor of that due to the market. I would have been paid and avoided the risk of being fired for not selling it quickly (often the case with the first listing agent), and the seller would have lost $30,000. To me, that is not doing my job. Many agents would also be concerned that the property wouldn’t appraise at the higher price, but I was able to provide comparable sales of units in the area that supported the sales price.
Self-serving Realtors know that a seller faced with a short sale situation or a foreclosure are desperate. Sellers of short sales often don’t think about the possibility of a deficiency judgment against them after the sale, for the difference between what their lender netted from the sale and what it cost them. They are usually too stressed over the trauma of the sale. While the market is soft and sellers are at a disadvantage, be sure when you choose a Realtor, that they are on your side and not costing you money. In one of the examples I site, a potential judgment $30,000 less than it could be in the future is significant, and not something your Realtor should ignore in pursuit of a quick commission.

Fort Lauderdale Florida The Tropical Wonderland

2011-02-17T17:07:00.002-05:00

This is a travel brochure for Fort Lauderdale from the 1920's showing the Riverside Hotel in the background and the New River in the foreground.

What does a 5 hour cab ride cost?

2011-02-14T19:04:00.004-05:00

I got an email yesterday from a Canadian couple who thought it was reasonable to expect the following. Now, my guess is that a cab for 5 hours would cost 1000? And that is without the real estate tour, and no tip. Mind you this is a first visit for the possibility of some future retirement purchase and for a "bargain". If these people buy anything in the future in Fort Lauderdale from anyone I will eat my computer. Layovers can be boring, but perhaps a restaurant?

"Hi Ron:

I had to read your email a few times. You want me to drive 45 minutes in rush hour traffic to pick you up in Miami then 45 minutes back to show you some condos in the dark in Fort Lauderdale and return you to Miami by 10 p.m. for your flight to South America assuming your arrival and departure flights are on time, and drive back for another hour in traffic home? Are you serious?

My time is worth about $250 an hour. In 30 years I have not picked up clients at the Miami airport and not for a few hours of looking for some possible future purchase for sure. My time is just too valuable.

If you want to schedule a trip when you can be in the area when you are serious about buying something I am happy to work with you, but if you expect that kind of service I am not your man. I doubt anyone competant would do that.

Enjoy your trip to South America "

I doubt I'll hear from them again!

Broward County Real Estate Market Report February 2011

2011-02-07T15:39:00.001-05:00

The biggest question my clients seem to have is whether we have reached the bottom of the market. I agree with real estate pundit Barbara Corcoran who says that when we have a consensus that the bottom has been reached, it is long past. What is the market in Broward like so far in 2011?

I have worked with a number of out of town buyers and have had hundreds of inquiries from others in the last few months, who have gathered from the news that Florida is having a huge fire sale. A big part of selling real estate has always been reconciling buyer’s expectations with the reality of the market. That is the biggest challenge in today’s market. I worked with four different clients in the last few months who all bid on foreclosure properties. I advised each of them to offer full price, and even more, and they all did. Two succeeded and two lost out to higher offers, one to an offer 50,000 more than the 840,000 list price. Before you think I am nuts to suggest anyone should pay over list during the worst real estate market of my 30-plus year career, let’s look at what the Broward County real estate market of condominiums and houses over 100,000 has done in the last 90 days according to the area MLS data. There are currently 4,206 houses for sale in Broward County over $100,000 that are conventional listings. There are 476 foreclosure listings and 1944 that are short sales. In the last 90 days 1000 conventional sales, 118 foreclosures sales and 443 short sales occurred. In the condominium market priced over $100,000 there are 4106 conventional listings, 291 foreclosures, and 1214 short sale listings. In the last 90 days 721 conventional sales, 330 foreclosure sales and 287 short sales occurred. I looked closer at this data and there are some definite trends that should help buyers understand what is happening in the market. First of all, the number of foreclosure listings is less than most consumers would expect. Foreclosures are the fastest selling category, with most selling within a few weeks of being listed. Most importantly, foreclosure listings are selling in a range from 5% under list to full price, to over list price in many cases. Buyers expecting to get discounts on foreclosure buys were entirely unsuccessful with that strategy, according to the numbers. The sales of short sale properties, that is, homes and condos where the mortgage balance is higher than the market value, had the longest days on market of all. Banks are still not moving with any speed in approving short sales. Short sales are the most frustrating segment of the market where the buyer has little control over the time frame for approval and closing, or if it will happen at all. Pre-approved short sales are the best bet, that is, one where the seller is pre-qualified and a price has been agreed on by the bank. The mortgage company is going to be looking for market value. Some sellers list short sales low to encourage a buyer, but be prepared to agree to a number that aligns with recent comparable sales when the lender responds.

Conventional sales have been relatively strong in the last 90 days, pointing to strength in the market coming from the bottoming out of prices. Condos with water views and houses in all price ranges that are priced well, are attracting buyers. Again, the numbers show that properties sell when the price is within ten percent of what they sell for. No huge discounts off list are happening, but the seller has to be realistic in pricing to attract a realistic buyer. It looks like in general Broward County is trending to toward a stronger market. Smart buyers have the largest inventory of available properties to choose from right now. The best deals are in those places where there was the most speculative buying during the boom, such as condos downtown, and infill townhome developments. We don’t have the condo glut that downtown Miami has, or the housing glut of west Florida where overdevelopment was rampant, two areas that have contributed most to the perception of Florida being a real estate disaster. The market in Broward County will continue to be aggravated by the poor economy more than anything. The savvy buyer, however is acting now, and getting some of the best buys Broward County real estate consumers will see for a long, long time.

Listing Appointment

2010-11-19T08:44:00.000-05:00

2010-10-16T08:02:00.000-04:00

http://ff.im/s8LsS

Miami Beach Tourism Film 1964

2010-09-24T12:25:00.003-04:00

Boy does this bring back memories! Like the story that Marti King, whose husband Lewis was the Oldsmobile dealer in Fort Lauderdale, told me about driving a pink Oldsmobile 98 from Fort Lauderdale to the Car Show on Miami Beach for the show in the 50's. She said it had a lucite hood with a rocket, of course. Well, it broke down near Overtown, steamy coolant everywhere. Talk about a buzz kill!

Fisher Auction Co. Inc - A Real Estate / Personal Property Accelerated Marketing Firm :: Auction Details

2010-04-08T16:42:00.000-04:00

Fisher Auction Co. Inc - A Real Estate / Personal Property Accelerated Marketing Firm :: Auction Details

Mid Century Modern 3/2 pool- 180 ft of waterfront

2009-10-04T12:24:00.003-04:00

Rob Rose | R.L. Rose & Co., Realtors | 954-328-9700 Text too

2100 NE 17 Terrace, Wilton Manors, FL

Mid-Century Modern Gem on 180 ft. of River and canal front, Wilton

Manors FL

3BR/2BA Single Family House

offered at $795,000

Year Built	1964
Sq Footage	2,400
Bedrooms	3
Bathrooms	2 full, 0 partial
Floors	Unspecified
Parking	4+
Lot Size	10,500 sqft
HOA/Maint	$0 per month

DESCRIPTION

A dream of a Modernist house on over 10,000 sq. ft. lot with 180 ft. of water frontage. 2400 sq. ft. of artfully designed and carefully maintained space. Kidney shaped black pool, Koi pond and mature bamboo forest at entry. Walled courtyards/aviary/Japanese gardens off master bedroom, master bath and 2nd bedroom. Wonderful light throughout the house.

see additional photos below

PROPERTY FEATURES

- Central A/C	- Central heat	- Fireplace
- High/Vaulted ceiling	- Walk-in closet	- Tile floor
- Family room	- Living room	- Office/Den
- Dining room	- Breakfast nook	- Dishwasher
- Refrigerator	- Stove/Oven	- Microwave
- Granite countertop	- Basement	- Washer
- Dryer	- Laundry area - inside	- Balcony, Deck, or Patio
- Yard	- Swimming pool	- Sauna

OTHER SPECIAL FEATURES

- Designed by Modernist Architect John Rude

- Point lot with Middle River and canal frontge

- One of the few very pure examples of mid-century modernist architecture in Fort Lauderdale

ADDITIONAL PHOTOS

Entry with Koi pond	Living Room
Dining Room	Master Bedroom
Middle River View	Middle River View

Contact info:

Rob Rose

R.L. Rose & Co., Realtors

954-328-9700 Text too

For sale by agent/broker

Equal Opportunity Housing

Posted: Oct 4, 2009, 7:27am PDT

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2009-04-15T07:45:00.001-04:00

The market is HOT with foreclosure and short sale bargains. In the last 30-60 days there has been a noticeable shift in the market. I have had three clients bid on different foreclosure and short sale properties where there were multiple bids, some over the asking price. This is really the time if you want to buy at rock bottom, to make your move.