July 2010 Newsletter Sean Greco Realtor, CIPS, CDPE, CLHMS, GREEN Certified, TRC, REOS Designations and Certifications are explained at the end of the newsletter Buy the Beach Realty, Cell 786-877-9220, buybeach.com Hello from South Florida, Below are brief summaries on key issues that have an effect on South Florida Real Estate, followed by the target market specific data. Click here for graphs of the data to help analyze trends in the market place. Please make note of the trends and data points as this will be key in timing the purchase or sale of a property to your benefit. Also, it is more important than ever that you understand the incentives that might end up being the deciding factor for those whom have been thinking about buying for quite some time. BUYING IN BULK SHOWS NEW TASTE FOR CONDOS: Backed by a multibillion-dollar private equity firm in New York, a team of Miami investors and strategists launched Lionheart Capital this year looking to scoop up choice South Florida condos at rock-bottom prices. In its first deal, the firm plunked down $120 million this month to buy up 146 units at the 2700 North Ocean Drive towers on Singer Island in Palm Beach County. It marked the 50 th bulk condo purchase in South Florida in the last two years, according to analysis by Peter Zalewski, a principal of the real estate consultancy Condo Vultures. New figures released Tuesday by the trade group Florida Realtors indicate that investors like Lionheart may be getting into South Florida s fragile condo market at an opportune time. Single-family homes prices may have already begun to rise, with prices increasing for the second month in a row in Miami-Dade and Broward counties, the Florida Realtors report found. We ve seen a decline in inventory and increase in sales, and when you ve got those two graphs going in a positive direction, it s a good sign, said Ron Shuffield, president of Esslinger-Wooten-Maxwell Realtors. With signs of improvement trickling in for South Florida s beleaguered housing market, investors that have large piles of cash at their disposal are seeking bulk deals, with plans to flip condo units for a profit post-rebound. Ophir Sternberg, managing partner of Lionheart Capital, said We ve been intensively searching the South Florida market for about a year for a high-quality oceanfront deal, when we found this one, there was nothing better in terms of quality and location. Lionheart paid about $250 per square foot in the bulk purchase, about $803,500 per unit. While only 96 of the 342 units in the luxury towers have sold in the past 2 years, current condo owners at 2700 North Ocean paid an average of $1.47 million per unit, or $520 per square foot. In the last 2 years, bulk buyers have bought up more than 4,800 units in South Florida, paying a total of about $1.5 billion. Existing home sales data for May for Miami-Dade and Broward Counties is below. Nationally, single-family home sales increased 19 percent over the year, and median price was $179,600 in May, up 2.7 percent from May 2009. EXISTING HOME SALES FOR MAY FOR MIAMI DADE AND BROWARD COUNTIES Single Family Homes Miami-Dade 2010 % Change from May 2009 Single Family Homes - Broward 2010 % Change from May 2009 Sales 727 +22% Sales 731-6% Price $196,000 +1% Price $216,400 +14%
Condos Miami-Dade Condos Broward Sales 972 +70% Sales 965 +21% Price $126,100-10% Price $81,500 +1% --Source: FAR, EWM, NAR, The Miami Herald 6/23/2010 With the strong fundamentals of an underlying economy poised with continued growth in the International World, opportunities will continue to present themselves. Investors enjoy the safety of the United States, and Florida has a lot of positive aspects with incredibly depressed prices that make this a great place to develop a real estate investing business plan and reap the profits when done correctly. Please contact me should you want to seriously discuss in more detail distressed sales of multiple units. This market presents various unique opportunities that very well may never be seen again in one s lifetime. Please let me help you take advantage of this situation. I have many strategic relationships with the decision makers regarding distressed projects, and the resources to carry out the objective, right down to the day to day operations. FORECLOSURE FLOOD STARTS TO RECEDE: In the first 5 months of the year, filings are down markedly in South Florida, and efforts to ease the backlog are kicking in. Also contributing are changes in the foreclosure process including mandatory mediation and funding for retired senior judges who can focus on foreclosure cases expected to relieve the paralyzing court backlogs of the past 2 years. New measures including a yet-to-be-unveiled Fannie Mae program are aimed at speeding foreclosure procedures, allowing people to get on with their lives and figure out where they are going to live. In Miami-Dade, new foreclosure filings have fallen 38 percent in the first 5 months of 2010, compared with the same period last year. Experts say the number of fresh filings is smaller because the waves of foreclosures due to flawed subprime mortgages and job losses already have peaked. Albert Orosa, vice president of the American Arbitration Association predicts that mediation could reduce the courts foreclosure caseload by half. Another positive point is that about 20 percent of foreclosure sales are now going to the non-bank bidders, up from less than 10 percent. That will get these properties out of the distressed bank umbrella to someone who will pay taxes and homeowner assessments, said Clerk of Court Harvey Ruvin. In April, a foreclosure master calendar for uncontested residential foreclosures was established; starting in mid-july there is a catch-up calendar being launched for old cases filed before 2009. Both are staffed by retired senior judges, paid by new state funding. The goal is to move cases along faster and free the rest of the judges to deal with other types of cases. Another positive development is that Fannie Mae, the government-sponsored mortgage agency, is setting up a new program in Miami-Dade to speed the resolution of foreclosure cases. About half the county s residential foreclosures involve Fannie Mae-backed mortgages. Under this plan, Fannie Mae will place contracted staffers in the main law offices representing lenders to facilitate mediation and make sure cases move efficiently. --Source: The Miami Herald 6/27/10 LUXE SALES BUZZING: Some real estate experts are calling a mini-boom in high-end condo sales in Miami-Dade County this year. Countywide, 135 condos priced at $1 million or more sold during March, April and May this year, almost doubling the number of units in that price range that sold during the same period in 2009, according to Esslinger- Wooten-Maxwell, one of the largest real estate brokerages in Miami-Dade and Broward. In Broward, 17 $1 million-plus units sold during that time period this year compared to 12 last year.
The super luxury condo market is taking off too: in the past month there were four sales breaking the $7.5 million mark. Units sold for $8.7 million at One Bal Harbour; $9 million at the Fontainebleau; $11 million at the Santa Maria Brickell; and $15 million at the Setai. Those four sales alone have the real estate industry abuzz, considering that there was only an average of 2.5 sales of condos in that stratospheric price bracket for the past 8 years, according to EWM. We are selling more units right now because people are sensing we are at the bottom of the market, said Ron Shuffield, president of EWM. And there aren t that many to choose from, especially in the penthouse range. The unit that sold at Santa Maria Brickell for $11 million in foreclosure was priced at $14 million three years ago, Shuffield said, I think people are realizing you cannot reproduce any of these buildings for what we re selling them for. This month, a penthouse at the Marquis Residences sold for $4.2 million, said Lori Ordover, managing director for sales and leasing at Africa Israel USA, the developer of the building. Ordover said most luxury condo buyers are paying in cash and they are buying units to live in, rather than as a pure investment. It s like the tide is starting to turn, Ordover said. I see the energy. I see more people coming to look in the sales office, double the number from last summer. For sure a major draw of the luxury condo communities, which began coming on the market in the mid-1990 s, is the array of amenities that they offer. Some developments offer glamorous living experiences, with Zen gardens, luxury spas, Oceanside pools, private butler services, and exclusive club memberships. At the Marquis Residences, owners can have a chef from its boutique hotel cook them a gourmet meal in their condo. The Setai in Miami Beach offers private plane and yacht charters. At Apogee in Miami Beach each unit has a privately-enclosed two-car garage on the parking levels. Real estate experts say the luxury condo market should only get stronger because condominium living is an increasingly popular lifestyle choice for the wealthy. In fact, according to Shuffield at EWM, this past quarter is now the third quarter of the last eight quarters where there have been condo sales exceeding single-family home sales for properties priced greater than $1 million Shuffield thinks the trend is here to stay. --Source: The Miami Herald 6/19/10, EWM 3 of the 4 super luxury sales took place in my target market; I do business in all 3 of these buildings and know them inside and out, so please contact me if you are looking for a quality condo in a luxury building so that I may help. QUICK HEADLINES: Construction on a 35-story condo tower is set to begin in July in Miami s Brickell corridor. Skyplace developers hope to complete the building by the end of 2011. --Source: The Miami Herald 6/4/10 Carnival Cruise Lines has a deal at Port of Miami that guarantees the port at least $181.4 million in revenue through 2018, subject to Miami-Dade County Commission approval. --Source: The Miami Herald 6/11/10 The new Marlins Ballpark sales headquarters overlooking the construction site in the footprint of the old Orange Bowl in Little Havana, opened at 1390 NW Seventh St. The 1,800 square foot office features an exact replica of a premium suite, three-dimensional, wall-sized video and artists renderings and a detailed scale model of the ballpark complete with moving, retractable roof and miniature JumboTron. --Source: The Miami Herald 6/11/10 International trade through ports from Palm Beach to Key West is on pace to break new records in 2010, surging 18% in the first quarter of 2010. --Source: The Miami Herald 6/17/10, WorldCity After a $25 million, three-year mission to restore its swank, Golden Beach is ready to show its gorgeous renovations. They refreshed and repositioned. They planted fancy palms, installed sidewalks and fountains, built parks, redid every street, replaced every pipe, and undergrounded every power line to render it storm-proof. -- Source: The Miami Herald 6/1/10
A $3.5 million dock master building was dedicated at Haulover Park s Bill Bird Marina on National Marina Day. Bill Bird Marina was named Marina of the Year by the Association of Marina Industries. --Source: The Miami Herald 6/10/10 The Miami Dolphins announced that majority owner Stephen M. Ross has donated half of a $164,000 grant to Miami Beach High School in order to fix up the field at the Prairie Avenue campus, which is currently not fully used because of its poor condition. --Source: The Miami Herald 6/3/10 The below chart is data from the past 90 days for Condominiums, ending 6/30/10. The data is taken from South East Florida s Multiple Listing Service (MLS) for the cities and townships of Miami Beach (South Beach, Mid Beach, & North Beach), Surfside, Bal Harbour, Bay Harbor Islands, and Fisher Island. The paragraph below the data will explain in more detail what is included in this analysis. Please don t hesitate to pose any questions you may have, or simply give me a call or send me an email to discuss Real Estate in general. This data will help to analyze market conditions from month to month. Price Range Active Closed Listings % Listing % Sold Avg DOM Average Discount New vs Resale $0 - $199,999 1011 242 170 16.82% 23.94% 114 1% 12 vs. 230 $200,000 - $249,999 259 42 59 22.78% 16.22% 150 6% 4 vs. 38 $250,000 - $299,999 296 41 55 18.58% 13.85% 179 7% 9 vs. 32 $300,000 - $349,999 196 31 40 20.41% 15.82% 200 9% 14 vs. 17 $350,000 - $399,999 258 29 55 21.32% 11.24% 133 9% 12 vs. 17 $400,000 - $499,999 309 32 40 12.94% 10.36% 150 11% 13 vs. 19 $500,000 - $599,999 212 19 48 22.64% 8.96% 162 9% 12 vs. 7 $600,000 - $699,999 169 27 32 18.93% 15.98% 145 11% 23 vs. 4 $700,000 - $799,999 106 16 21 19.81% 15.09% 113 9% 12 vs. 4 $800,000 - $899,999 74 7 14 18.92% 9.46% 159 9% 7 vs. 0 $900,000 - $1,179,999 110 19 16 14.55% 17.27% 129 14% 17 vs. 2 $1,180,000 - $1,399,999 94 6 20 21.28% 6.38% 87 13% 5 vs. 1 $1,400,000 - $1,799,999 90 14 14 15.56% 15.56% 148 6% 14 vs. 0 $1,800,000 - $2,199,999 67 4 8 11.94% 5.97% 256 11% 4 vs. 0 $2,200,000 - $2,699,999 76 9 11 14.47% 11.84% 277 17% 6 vs. 3 $2,700,000 - $3,199,999 38 8 6 15.79% 21.05% 209 19% 6 vs. 2 $3,200,000 - $3,999,999 32 5 6 18.75% 15.63% 176 13% 5 vs. 0 $4,000,000 - $4,999,999 37 2 6 16.22% 5.41% 267 30% 1 vs. 1 $5,000,000 + 56 8 5 8.93% 14.29% 162 16% 7 vs. 0 Totals: 3490 561 626 17.94% 16.07% 169 12% 183 vs. 377 As you can see, I have broken the data into price ranges, and then you can see the amount of Active condos for sale, how many Real Buyers Closed on a condo for sale, how many of those listing agreements unsold, then further calculated what percent of the Active condos for sale and Sold. Then I calculated the Average Days on Market (Avg DOM), which is the amount of days it took the condos that sold to obtain a Real Buyer. Then I show the Average Discount, which is the percentage the Listed Price was discounted to the Actual Sale Price for all Closed Sales. The last column is for Closed Sales that were newer construction, which I considered to be anything built after 1995, versus older buildings built before 1995. I track this data for Condominiums and Single Family Homes separately due to their differences. I also track the data for the more luxurious buildings of South Beach, please feel free to email or call for that data. The next set of data below is the same information for Single Family Homes. The one difference is that the last column is the Average Age of the homes Sold. Price Range Active Closed Listings % Listing % Sold Avg DOM Average Discount Average Age
$0 - $399,999 27 14 6 22.22% 51.85% 186 +1 1943 $400,000 - $499,999 27 7 4 14.81% 25.93% 234 11% 1952 $500,000 - $649,999 46 9 8 17.39% 19.57% 90 14% 1947 $650,000 - $799,999 39 6 10 25.64% 15.38% 139 13% 1943 $800,000 - $999,999 50 7 9 18.00% 14.00% 123 19% 1966 $1,000,000 - $1,299,999 28 2 8 28.57% 7.14% 249 15% 1943 $1,300,000 - $1,599,999 40 2 3 7.50% 5.00% 338 11% 1952 $1,600,000 - $1,999,999 34 6 8 23.53% 17.65% 224 23% 1967 $2,000,000 - $2,999,999 65 6 6 9.23% 9.23% 300 11% 1933 $3,000,000 - $3,999,999 35 5 4 11.43% 14.29% 82 14% 1969 $4,000,000 - $4,999,999 15 2 1 6.67% 13.33% 443 21% 1931 $5,000,000 - $5,999,999 11 1 3 27.27% 9.09% 17 22% 1952 $6,000,000 - $6,999,999 12 0 1 8.33% 0.00% NA NA NA $7,000,000 - $9,999,999 13 1 4 30.77% 7.69% 6 6% 1937 $10,000,000 + 22 2 8 36.36% 9.09% 373 20% 1968 Totals: 464 70 83 17.89% 15.09% 200 14% 1950 Don t forget to look at the overall data I have been collecting and determine for yourself what trends, etc. you see; please click here to take you to some graphs that should prove to be very insightful: http://www.miamipropertiesandparadise.com/professional11.shtml If you are a bargain hunter looking for distressed properties, please contact me so that I may setup an automatic short sale or foreclosure search notification for you. I have found that the best deals usually go the quickest, and to be proactive in your distressed property search is the best way to go about finding a bargain. In the course of continually researching and familiarizing myself with the inventory of the very localized market in which I practice, along with the banking relationships I have cultivated, I have been able to do a lot of the research and legwork recognizing the best potential values in my target markets, or in some instances in other specific buildings or locations where there is excellent value for the product. Please understand that this service I provide adds significant value to the process, and only contact me if you are serious about buying and planning to be loyal. Please don t hesitate to contact me directly for any such information. PLEASE CLICK HERE FOR THE 2009 PROFILE OF INTERNATIONAL HOME BUYERS IN FLORIDA LEGISLATION, PROPERTY TAXES & INSURANCE: There was some very beneficial legislation during the most recent session, it is vital to understand the positive impacts this could have on the South Florida real estate market. Below are some highlights and a summary of some of the issues most directly affecting real estate: Help for condo owners - and ways to spur sales. At the beginning of the session, there were at least 50 bills addressing everything from fire sprinkler retrofits to enticing investors in an effort to move excess condo inventory. At the end, there was a single 103-page bill encompassing many of these reforms: SB 1196 by Sen. Mike Fasano (R-New Port Richey). It includes the Florida Realtor-supported "bulk buyer" language that seeks to reduce inventory levels by encouraging investors to purchase blocks of condo units. This is accomplished in part by protecting bulk buyers from some of the liabilities faced by condo developers. Other provisions in SB 1196 accomplish the following: lower the cost of condo ownership by repealing the requirement that owners purchase individual unit owner insurance coverage; remove the requirement for mandatory retrofits of sprinkler systems in condos over 75 feet high; require lenders to pay more in past-due assessments on foreclosed properties;
allow associations to deny owners or occupants the use of common areas and recreational amenities when the owner is more than 90 days delinquent in paying financial obligations due to the association; and allow associations to divert tenant rents to pay for delinquent assessments owed by unit owners. As a property owner or potential property owner, I urge you to keep up to date on the various progress, legislation, and proposed legislation in order to help you better understand how these important issues affect you; please see the below link that will take you to the Florida Association of Realtors Legislative Center, which will help to explain the numerous moving parts concerning these issues: http://www.floridarealtors.org/legislativecenter/topinitiatives/index.cfm INTEREST RATES & RELATED NEWS: Rates continue to remain unchanged and at historic lows. It is important to note that different types of loans are pegged to different rates, so please make sure to stay in touch with your mortgage broker or banker to keep up to date on interest rates, as this can directly affect many Real Estate related decisions. In addition to the lowered rate when securing a mortgage to buy property, another common question you will see with rates near historic lows is whether or not it is a good idea to refinance. This discussion might be a good one to have with a reputable mortgage broker or your banker and see if this would make sense financially. Or feel free to visit my website and the Mortgage Center for more helpful information. This is the website to the Federal Reserve s Monetary Policy section: http://federalreserve.gov/monetarypolicy/default.htm Exchange rates play a vital role in Real Estate related decisions for foreign buyers or sellers, a good source to track currency exchange rates is: http://www.xe.com/ucc/ I hope this email finds you well and looking forward to comparing this month s data with last month s data to spot trends and decide for yourself the status of the local Real Estate market, of which I work within 24/7. You are receiving this because we have been in touch about Real Estate here in the South Florida area, most likely property at the Beach. As you read the newsletter from month to month it will contain data that will help you to analyze market conditions. In addition, it is an unobtrusive way to stay in touch with you regarding my Real Estate Consulting Services. That is all for this month s newsletter and I welcome suggestions, feedback, and of course I am here if you or anyone you know is thinking of buying or selling property here in South Florida. If you wish to further discuss any of the above issues in more detail, or any other Real Estate related topics, please don t hesitate to call or email. I would like to leave you with the 3 following simple quotes: If you're coasting, you're either losing momentum or else you're headed downhill. - Joan Welsh One day your life will flash before your eyes. Make sure it s worth watching. - Source Unknown If the table moves, move with it. - Sakaue DESIGNATIONS AND CERTIFICATIONS: These Designations and Certifications were specifically chosen by me to give my effort, time, and money, as well as meeting the required experience because I feel that this shows my dedication to continually learning and evolving as a Real Estate Consultant. Plus, the market that I practice in is a natural one to achieve such designations to separate myself from the other professionals within my field. Keep in mind these not only prove education but also transactional experience in order to obtain the designations and certifications. Realtor - Membership in the largest professional association known as the National Association of Realtors or N.A.R.
C.I.P.S. Certified International Property Specialist, member of CIPS network; Designation shows education and transactional experience in the International Arena of Real Estate. C.D.P.E. Certified Distressed Property Expert, member of Distressed Property Institute; Designation shows education and experience in the continually evolving and complicated short sale and foreclosure markets. C.L.H.M.S. Certified Luxury Home Marketing Specialist, member of Million Dollar Guild; Designation shows education and transactional experience in the top tier level within my market, Million Dollar Guild is the highest level of membership with proven experience in numerous $1M+ transactions. GREEN Certified also known as GCREP-GL, Green Certified Real Estate Professional Green Leadership; Certification shows education and leadership within the Green Real Estate Industry. T.R.C. Transnational Referral Certification; Certification shows education in researching Real Estate throughout the world and allows me to refer and to be referred from 28 International Real Estate Organizations in the Global marketplace. R.E.O.S. Real Estate Owned Specialist, shows extensive experience and knowledge in the distressed property class known as REO, also known as foreclosures or bank owned properties. If you wish to be removed from this mailing list, please REPLY to this email placing REMOVE in the subject line.