Miami Real Estate Prices Reflect More Balanced Growth

Miami, FL – The performance of the Miami real estate market in May continued to reflect strength, healthier growth, and more balance between buyers and sellers, according to the 30,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system.

Median Sale Prices Rise by Narrower Margins
Median sale prices again increased for both single-family homes and condominiums in May but remain at affordable 2003 levels.  The median sale price for single-family homes increased 12.6 percent, up to $250,000 from $222,000 in May 2013, marking 30 straight months of growth. The average sale price for single-family homes increased 21.4 percent from $408,021 in May 2013 to $495,525 last month.

“The Miami real estate market continues to perform well as demand remains historically strong  but while fueling more balanced price growth,” said 2014 Chairman of the Board of the MIAMI Association of REALTORS Liza Mendez. “Sales are consistent with 2013 activity, which set a third consecutive sales record, and properties are selling rapidly and close to asking price.”

The median sale price for condominiums has increased for 35 consecutive months.  Compared to May 2013, the median sale price for condominiums increased by 3.6 percent to $186,600 from $180,000 a year prior.  The average sale price for condominiums increased 3.8 percent to $384,900 from $370,843 in May 2013.

Home Sales Decline Compared to Record LevelsIn May, residential real estate sales in Miami-Dade County decreased 6.4 percent to 2,704 compared to 2,888 in May of last year. Single-family home sales decreased a negligible 0.1 percent relative to May 2013, from 1,216 to 1,215. Compared to May 2013, condominium sales declined 10.9 percent from 1,672 the previous year to 1,489 last month.

Miami Real Estate Selling Fast, Close to List Price
Miami real estate continues to sell at a rapid pace and at nearly asking price, reflecting strong demand compared 2013, which was the third consecutive record sales year.

The median number of days on the market for single-family homes sold in May was just 47 days, an increase of 9.3 percent from May 2013. The average percent of original list price received was 94.3 percent, down only 0.6 percent from May 2013.

The median number of days on the market for condominiums sold in May was 53 days, an increase of 10.4 percent compared to the same period in 2013. The average sales price was 94.3 percent of the asking price, a decrease of 2.4 percent.

National and State Figures
Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops increased 4.9 percent from April but were 5.0 percent below what they were in May 2013, according to the National Association of Realtors (NAR).  Statewide closed sales of existing single-family homes totaled 23,013 in May, up 3.6 percent compared to the year-ago figure, according to Florida Realtors. Statewide sales of condominiums totaled 10,558, down 7.0 percent from May 2013.

The national median existing-home price for all housing types was $213,400 in May, a 5.2 percent increase from April 2013, according to NAR.  The statewide median sale price for single-family existing homes last month was $180,000, up 64.3 percent from the previous year, while that of townhouse-condo properties was $145,000, up 13.7 percent over the previous year.

Active Inventory Rises Year-Over-Year, Drops Month-Over-Month 
While seller confidence is resulting in more properties being listed for sale, new listings are increasing by a much smaller percentage than they had during the last year. 

Housing inventory in Miami-Dade has dropped month-over-month for the second consecutive month.  Active listings dropped 0.7 percent compared to April, while inventory of single-family homes and condominiums has dropped nearly 2.0 percent since February and 0.8 since last month, respectively.

Active listings at the end of May increased 29.9 percent, from 13,042 in 2013 to 16,945 last month but remains 60 percent below 2008, when sales bottomed. Inventory of single-family homes increased 20.2 percent from 4,971 in May 2013 to 6,004 last month. Condominium inventory increased 36 percent to 10,941 from 8,045 active listings during the same period in 2013. At the current sales pace, there is a 5.5-month supply of single-family homes, an increase of 10 percent from 5 months in May 2013, and a 7.7-month supply of condominiums, up from 5.8 months in May 2013, an increase of 34.2 percent.

New listings of single-family homes increased 1.9 percent, up to 2,069 in May 2014 from 2,030 during the same period in 2013. New condominium listings increased 5.3 percent from 2,752 in May 2013 to 2,871 last month. 

At the end of the May, total housing inventory nationally rose 2.2 percent to 2.28 million existing homes available for sale, which represents a 5.6-month supply at the current sales pace.

Short Sales Decline 54% in May
While traditional sales continue to increase, distressed property transactions in May again declined in Miami-Dade due to fewer short sales.  In May, only 32.5 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 37.1 percent in May 2013.

“Foreclosure filings are sharply declining in Miami-Dade, so we expect the distressed inventory to continue to fall in future months,” said 2014 MIAMI Association of REALTORS Residential President Francisco Angulo. “In addition, as homeowners continue to recover equity, fewer short sales are being transacted, which will continue to fuel the health of the Miami real estate market.”

Of total Miami sales in May, 9.2 percent were short sales and 23.3 percent were foreclosures.  Sales of REOs increased 19 percent while sales of short sales sharply declined by 54.5 percent.

Nationally, distressed homes accounted for 11 percent of May sales compared to 18 percent in May 2013.

Cash Sales Drop to 55%
Cash sales in Miami continue to decline as more financing becomes available.  In Miami-Dade County, 55 percent of total closed sales in May were all-cash transactions, compared to 63 percent in May 2013. Cash sales in Miami are still significantly higher than the national average of 32 percent. All-cash sales accounted for 42 percent of single-family home and 66.9 percent of condominium closings, compared to a year earlier when cash sales were 45 percent of single-family home sales and 76.1 percent of condominium sales. 

Since nearly 90 percent of foreign buyers in Florida purchase properties all cash, this continues to reflect the much stronger presence of international buyers in the Miami real estate market.

Access May 2014 Miami-Dade Statistical Reports: SFMarketIntel.com

Note:  Statistics in this news release may vary depending on reporting dates. Statistics reported by MIAMI are not impacted by NAR’s rebenchmarking efforts.  MIAMI reports exact statistics directly from its MLS system.

About the MIAMI Association of REALTORS
The MIAMI Association of REALTORS was chartered by the National Association of Realtors in 1920 and is celebrating 94 years of service to Realtors, the buying and selling public, and the communities in South Florida.  Comprised of five organizations, the Residential Association, the Realtors Commercial Alliance, the Broward County Board of Governors, the YPN Council and the award-winning International Council, it represents more than 30,000 real estate professionals in all aspects of real estate sales, marketing, and brokerage.  It is the largest local Realtor association in the U.S., and has official partnerships with 120 international organizations worldwide.  MIAMI’s official website is www.miamire.com.

submitted by:  Ivis Sardinas

Miami Ranked 2nd among Foreign Consumers Searching U.S. Properties

Miami, FL – Attention from foreign consumers searching U.S. properties increased for Miami in March, according to the 26,000-member MIAMI Association of Realtors (MIAMI).

South Florida, the top area in the nation for international real estate buyers, remains the focus of consumers from a diverse group of nations.

Miami Top Market for Foreign Consumers
In March, Miami ranked second only to Los Angeles among the top ten overall most searched U.S. cities by non-U.S. consumers throughout the month of March 2013.  Miami moved up from fourth place in earlier rankings.  Fort Lauderdale ranks eighth.  If the Miami-Fort Lauderdale market were combined, the ranking would be even higher.

1. Los Angeles, CA
2. Miami, FL
3. Las Vegas, NV
4. Orlando, FL
5. Detroit, MI
6. Houston, TX
7. New York, NY
8. Fort Lauderdale, FL
9. San Diego, CA
10. Chicago, IL

The top countries for consumers searching South Florida properties on Miamire.com (Miami Association of Realtors Property Search) in March 2012 compared to March 2013 were from:

March 2013	March 2012
United States	United States
Canada	Canada
Brazil	Brazil
Colombia	France
Venezuela	Venezuela
Argentina	Colombia
France	Argentina
India	Spain
Germany	U.K.
Ecuador	India

“These results reflect the strong demand from foreign buyers and investors that exists for Miami properties,” said 2013 Chairman of the Board of the MIAMI Association of REALTORS Natascha Tello.  “It is interesting to see countries like India and Germany ranking among the top markets looking to buy or invest in Miami and South Florida.  The Miami real estate market remains a mecca of global activity, differentiating us form the rest of the U.S. and fueling our vibrant real estate market.” 

Nationally, the Miami-Fort Lauderdale area is consistently one of the top markets for most of the highest ranking countries searching for property in the U.S.  According to Realtor.com®, the top countries (outside the U.S.) where global consumers were most engaged on Realtor.com® &

Realtor.com® International in March 2013 were:

• *Canada: Las Vegas, Fort Lauderdale, Orlando, Detroit, Naples
• *U.K.: Los Angeles, Orlando, Miami, Houston, Las Vegas
• *Germany: San Antonio, Los Angeles, Cape Coral, Miami, Las Vegas
• Australia: New York, Los Angeles, Las Vegas, Houston, Detroit,
• Japan: San Diego, Alpharetta, Las Vegas, San Diego, San Antonio
• Mexico: San Diego, El Paso, Laredo, San Antonio, Las Vegas
• India: Los Angeles, Orlando, Chicago, Dallas, Houston
• *Brazil: Orlando, Miami, Boca Raton, Fort Lauderdale, Miami Beach
• China: Detroit, Los Angeles, Irvine, Las Vegas, Orlando
• *France: Chicago, Miami, Los Angeles, Miami Beach, San Diego
• *Russian Federation: Los Angeles, Miami, Orlando, New York, Detroit
• South Korea: Las Vegas, Irvine, Los Angeles, San Antonio, Columbus
• *Italy: Miami, Los Angeles, Miami Beach, New York, San Diego
• *Netherlands: Los Angeles, Miami, New York, Houston, Las Vegas
• *Switzerland: Miami, Las Vegas, Los Angeles, San Diego, Raleigh
• *Spain: Miami, Los Angeles, New York, Las Vegas, San Diego
• *Ireland: Los Angeles, New York, Orlando, Chicago, Miami
• *Sweden: Los Angeles, Detroit, Parkland (FL), Miami, Fort Lauderdale
• *Belgium: Los Angeles, Miami, Las Vegas, Naperville (IL), Orlando
• Philippines: Las Vegas, Saint Paul (MN), Indianapolis, Los Angeles, Henderson (NV)

*Country with Miami or Fort Lauderdale as top searches.

Based on the 2012 Miami International Market Report, Miami attracts a significant number of buyers from countries not reflected in property search rankings above, including Venezuela, Colombia, Argentina, Peru, and Ecuador.  For the latest information on who is buying in South Florida, go tohttp://www.miamire.com/international/resources.

“Miami had not previously figured as a top market for buyers from the United Kingdom, who tend to purchase in less expensive areas of Florida,” said 2013 MIAMI Association of REALTORS Residential President Fernando I. Martinez.  “We are increasingly seeing buyers from new markets becoming increasingly interested in all that Miami has to offer, which is a sign that investors view Miami and South Florida a profitable opportunity.”

43 Flamingo South Beach Condos Go Into Foreclosure In Q1 2011

Foreclosure actions have been filed against the owners of 43 units in the Flamingo South Beach condominium conversion project in the first three months of 2011 by the complex's association, according to a new report from CondoVultures.com.

The project's condominium association is seeking nearly $760,000 in past-due monthly maintenance fees used to operate the trendy South Beach condo project fronting Biscayne Bay, according to an analysis of the Condo Vultures® Foreclosure Database™.

The surge in foreclosure filings at the Flamingo South Beach comes at a time when South Florida lis pendens actions - the first step in the repossession process - are down by two-thirds on a year-over-year basis to about 6,800 filings in the first quarter of 2011, according to the report.

"At the peak of the market, the Flamingo South Beach condominium was one of the most popular projects for investors," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC. "Buyers were willing to pay a premium for the units in the refurbished 1960s structure as rental rates in the complex were some of the highest in South Beach. The condo market has since changed with an increasing number of renters heading across the causeway to the new condos in Greater Downtown Miami."

Located at 1500 Bay Road on the west side of Miami Beach, the Flamingo South Beach condominium units that are in foreclosure with the association have a combined "value" of more than $4.6 million, according to Miami-Dade County records.

After filing nine foreclosure actions seeking repayment of about $30,000 in January 2011, the project's condominium association filed 34 more foreclosure actions on March 29 seeking repayment of about $729,500 in past-due fees, according to the report.

In the four previous years, the assocation has filed nearly 70 actions between 2007 and 2010, according to Miami-Dade County records.

Besides the condominium association seeking repayment of past-due fees, lenders have initiated nearly 200 foreclosure actions in the project since 2007, according to Miami-Dade County records.

As of April 4, there are 35 units at the Flamingo South Beach on the resale market with an average asking price of $382,350 per condo. An additional 13 units are rent at an average asking price of $4,050 per month, according to an analysis by the licensed Florida buyer brokerage Condo Vultures® Realty LLC.

In the last 12 months, buyers have purchased 45 condo resales at the Flamingo South Beach at an average price of nearly $185,500 per unit. Renters have leased an additional 24 units at an average price of $2,800 per month, according to the analysis based on Florida Realtors association data.

The Flamingo South Beach condominium association's sudden aggressive pursuit of past-due maintenance fees using the foreclosure process comes at a time when filings are down throughout South Florida.

The year 2011 represents the fewest number of foreclosure filings initiated in a first-quarter period since 2007 when slightly more than 1,400 actions were filed in Miami-Dade, Broward, and Palm Beach counties.

In subsequent first quarters, lenders and condo associations filed about 17,800 actions in 2008, an additional 23,800 actions in 2009, and 20,000 actions in 2010 in South Florida.

A key reason for the sudden decrease in foreclosure filings in South Florida is tied more so to the legal process rather than borrowers suddenly paying their mortgages.

Administrative irregularities in the foreclosure process that surfaced in late September 2010 created a "foreclosure freeze" that forced lenders to file 61 percent fewer notices of default in the tricounty South Florida region of Broward, Miami-Dade, and Palm Beach counties between October and December 2010 compared to the same three-month period in 2009, according to the report.

The aftereffects of the foreclosure freeze appear to be continuing to impact the South Florida market in 2011.

It is unclear whether the number of foreclosure filings will continue to decrease in 2011 as Massachusetts' highest court recently ruled that two of the nation's largest residential lenders - Wells Fargo and US Bancorp - "failed to prove they owned the mortgages when they foreclosed on homes," according to the New York Times.

In early March 2011, HSBC announced it was suspending foreclosure actions in Florida and across the country as a result of administrative irregularities, according to the Palm Beach Post.

No one knows what this ruling will do to investor confidence given concerns that the purchase of a bank-owned property could lead to title issues in the future, industry watchers said.

Even before the concerns about the legality of thousands of bank repossessions surfaced in the second half of 2010, lenders had already started to slow their foreclosure efforts due to the rising costs and difficulty involved with repossessing properties from borrowers in default.

Prior to the real estate crash, lenders generally expected the foreclosure process to take about six months to complete at a cost of about $40,000 in loss of debt service, unpaid taxes, damage, court fees, and attorney costs.

With more than 271,000 notices of default filed against borrowers and owners between January 2007 and March 2011, the South Florida court system was overwhelmed with foreclosure actions.

In South Florida today, lenders now plan for an 18-month repossession process with a cost of about $100,000 per property, industry watchers said.
In the end, bank-owned properties offered on the open market generate a lower average price than properties that are sold as shortsales. In 2010, the average shortsale price was $173,700 per residence compared to an average of $110,900 for a bank-owned property.

NAR: Housing market recovery depends on jobs, access to credit

WASHINGTON – Nov. 18, 2010 – Although the recent trend of rising long-term borrowing rates may mean higher mortgages for consumers in the coming months, the greater obstacles to housing market recovery are job creation and availability of credit, according to a National Association of Realtors® (NAR) analysis.

“Modest changes in mortgage rates are less important to a housing market recovery than the number of people who are able to obtain mortgages,” says NAR Chief Economist Lawrence Yun.

Last week, NAR’s Board of Directors approved a credit policy to urge the mortgage lending industry to reassess and amend their policies so more qualified homebuyers can become homeowners.

“Currently, the overly tight underwriting standards are holding back the pace of housing market recovery,” says Yun. “In particular, creditworthy small business owners and those who want to purchase investor properties have encountered extreme difficulties in obtaining a mortgage. In contrast, all indications are that recently originated mortgages with Fannie Mae, Freddie Mac and the Federal Housing Administration have solid loan performance, implying that credit is only going to the most well-qualified borrowers. Additional creditworthy borrowers who are willing to stay well within budget and meet reasonable underwriting criteria should be able to obtain a loan to help speed the housing and economic recovery.”

To qualify for a loan, most buyers also must be gainfully employed. As Congress reconvenes this week and considers an extension of the Bush tax cuts, their decision could impact job creation.

If the Bush tax cuts are extended for those earning less than $250,000 but taxes are increased for higher earners, Yun expects about 1.5 million net new jobs to be added to the economy in 2011. Mortgage rates are expected to rise to 5.4 percent by the end of 2011 from the current 4.2 percent average rate, provided the inflation rate stays manageable at near 2 percent. Total home sales, both existing and new combined, would rise to 5.5 million in 2011 from 5.1 million in 2010. If the Consumer Price Index inflation rate was to reach 3 percent, then mortgage rates could rise to 6 percent by the end of 2011, cutting home sales to 5.2 million.

“If the Bush tax cuts were extended for everyone across the board, an additional 400,000 additional jobs could be created in 2011, with home sales rising by an additional 60,000 to 80,000,” says Yun. “Of course, there are many factors that could influence job creation, and we also need to be mindful of the very high current budget deficits.”

© 2010 Florida Realtors®
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Florida leads U.S. in serious mortgage delinquencies

BY JEFF OSTROWSKI

PALM BEACH POST

Florida still leads the nation in the percentage of homeowners who are ``seriously delinquent'' on their loans, the Mortgage Bankers Association said Thursday.
In the state, 19.52 percent of borrowers were either 90 days past due or in foreclosure in the third quarter. Add in borrowers who are 30 and 60 days late, and nearly one in four Floridians are behind on their loans.
The good news is that Florida's seriously delinquent rate is down from 20.13 percent in the second quarter. But no other state met Florida's lofty level of late payers. Nevada was No. 2 at 17.83 percent, while Illinois' 10.77 percent ranked third.
With Florida's job market still weak and home prices way down from a few years ago, it's no surprise that the state's delinquency rates are so high, said Jack McCabe, a real estate analyst in Deerfield Beach.
``With 48 percent of the state's homeowners underwater, we're going to continue to see delinquencies go up,'' McCabe said. ``The truth is a lot of people have given up and have stopped paying their mortgages.''
Part of the blame lies with the way foreclosures are handled in Florida, said Michael Fratantoni, the Mortgage Bankers' vice president of research and economics. Florida and other states where foreclosures go through the courts have foreclosure inventories that are twice as high as so-called non-judicial states, he said.
Of course, the court system is only partly to blame for Florida's delinquency problem. The bigger culprits are a withering collapse in prices and an 11.9 percent jobless rate that's well above the national unemployment rate of 9.6 percent.
Nationally, the delinquency rate fell, too, which the Mortgage Bankers Association attributed to modest improvements in the job market. The foreclosure freeze at some lenders hasn't played a role in falling delinquencies.
``The foreclosure paperwork issues announced by several large servicers in late September and early October are unlikely to have had a large impact on the third-quarter numbers,'' Fratantoni said.

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Report: September Data Shows Foreclosure Timelines Extending; Extreme Delinquencies on the Rise

RISMEDIA, November 10, 2010-- The September Mortgage Monitor report released by Lender Processing Services, Inc. (NYSE: LPS) shows that foreclosure timelines continue to increase, with the average number of days delinquent in five judicial foreclosure states (New York, Florida, New Jersey, Hawaii and Maine) exceeding 500 days. At the same time, the foreclosure timeline extension has been significantly more pronounced in non-judicial states.

Approximately 275,000 loans started foreclosure during the month and, while delinquencies in September dropped 7.8 percent as compared to a year ago, in the context of "normal market conditions," delinquencies remain at historically high levels and foreclosure inventories are only slightly below all-time highs. More than 4.3 million loans are 90 or more days delinquent or in foreclosure.

Timelines in the 90-days-or-greater delinquency category have continued to increase even as inventories have declined. As of the end of September, 32 percent of 90-days-or-greater delinquencies could be categorized as "extremely delinquent," with borrowers not having made payments for 12 months or more. The average days delinquent for loans in the 90-days-or-greater delinquency category is 316 days, and the average loan in foreclosure has not had a payment made in 484 days, or roughly 16 months.

This month's report also shows that approximately 1.13 million loans that were current at the beginning of January 2010 are at least 60 days delinquent or in foreclosure as of the end of September 2010 – a month-over-month increase of approximately 120,000 loans. The last two months have seen an increasing trend in this new problem loan category – 1.84 percent of loans that were current six months ago are 60 or more days delinquent today.

http:www.oreinternationalrealty.com

Bankrate: Mortgage Rates Return to Record Low Territory

RISMEDIA, November 9, 2010--Mortgage rates revisited record lows this week, with the average rate on the benchmark conforming 30-year fixed mortgage rate returning to 4.42 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.37 discount and origination points.

To see mortgage rates in your area, go tohttp://www.bankrate.com/funnel/mortgages/.

The average 15-year fixed mortgage hit a new low of 3.81 percent, and the larger jumbo 30-year fixed rate did as well, sinking to 5.04 percent. Adjustable rate mortgages were mostly lower, with the average 5-year ARM falling to 3.57 percent and the average 7-year ARM retreating to 3.87 percent.

Mortgage rates fell back into record low territory this week. The Federal Reserve has announced another injection of $600 billion over the next 8 months, but it remains to be seen if this is enough to push Treasury yields and mortgage rates lower, and if so, by how much. Even if the Fed is successful in pushing rates lower, it doesn't alter the fact that many would-be borrowers are upside-down, living on a reduced income, or concerned about a lack of job security.

The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.42 percent, the monthly payment for the same size loan would be $1,003.89, a savings of $238 per month for a homeowner refinancing now.

SURVEY RESULTS

30-year fixed: 4.42% -- down from 4.51% last week (avg. points: 0.37)
15-year fixed: 3.81% -- down from 3.90% last week (avg. points: 0.28)
5/1 ARM: 3.57% -- down from 3.67% last week (avg. points: 0.34)
Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

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