The Aslan Group Realty

Home prices in Miami fell 9.9 percent between December 2008 and December 2009, but slipped just 0.3 percent between November and December, according to the 20-city S&P Case-Shiller home price index.

On a seasonally adjusted basis, prices were up 0.3 percent nationwide in December, but were down 3.1 percent in the last year.

“As measured by prices, the housing market is definitely in better shape than it was this time last year, as the pace of deterioration has stabilized for now. However, the rate of improvement seen during the summer of 2009 has not been sustained,” said David M. Blitzer, chairman of the Index Committee at Standard & Poor’s, in a news release.

Only three cities – Detroit, Las Vegas and Tampa – still showed double-digit annual rates of decline as of the end of 2009.

“Going forward, forces that will bring home prices back down are growing. Demand has dropped as a result of the first-time homebuyer tax credit expiring,” noted Patrick Newport, a U.S. economist with IHS Global Insight.

Miami Herald Reports: South Florida home sales increase, but prices fall

Sales in South Florida were up in the second quarter, but falling home prices pushed more homeowners underwater, which could lead to more foreclosures.
BY MONICA HATCHER
mhatcher@MiamiHerald.com

South Florida home sales rose in the second quarter as prices continued to fall compared to the same year-ago period, according to a report released Wednesday by the Florida Association of Realtors. In the meantime, more homeowners slipped underwater on their mortgages, putting them at risk of foreclosure, new figures show.

Building on a months-long trend that analysts say is a sign of improved health in the housing market, existing home sales surged by 75 percent in Miami-Dade and 35 percent in Broward as steep price declines, low interest rates and tax incentives continue to drive demand.

In both counties, values suffered. The median sales price fell by 35 percent in Miami-Dade to $195,000 and to $195,500 in Broward. Statewide home sales were up by 23 percent, while the median was off 29 percent to $143,600. The median price refers to the price at which half the homes sold for more and half for less.

Since the start of the year, however, month-to-month price declines have appeared to stabilize.

“While the South Florida market is one of the first to go into a housing downturn, conversely we are typically one of the first to lead a rebound,” said Danielle Clermont, a spokeswoman for the Realtor Association of Greater Fort Lauderdale

The increased sales volume represents the fourth consecutive quarter of improved sales in the state, according to the Florida Realtors. The numbers include sales registered in the multiple listing service but not homes sold directly by owners or other parties.

As home values continue to tumble, however, the percentage of South Florida homeowners underwater on their mortgages grew between the first and second quarter of the year, figures from Zillow.com show.

Forty-seven percent of all single-family homeowners with mortgages in Miami-Dade and Broward were in a negative equity position, meaning they owed more on their mortgages than their homes would likely fetch on the market. That’s up from 44 percent at the end of the first quarter, according to the Web-based real estate services firm.

The firm does not do a similar analysis for condominium owners.

Negative equity has become one of the chief reasons homeowners enter foreclosure. Discouraged by falling home prices and the prospect of making hefty payments on an impaired asset, many decide to walk away from the debt.

Zillow.com derives its numbers by comparing mortgage documents with sales information and comparables for each property. Some analysts have said the figures could be slightly exaggerated because the research assumes borrowers are making only minimum payments.

Condo sales also perked up from a year ago. Miami-Dade saw sales of condo rise by 37 percent in the second quarter as the median dropped by 50 percent to $138,700. In Broward, sales rose by 40 percent as the median price slid 45 percent to $81,600.

The numbers reflect the slow but on-going resuscitation of the housing market in South Florida, where historic price declines are drawing buyers from across the country and around the globe.

Inventory, or the number of homes for sale on the market, has receded considerably, though analysts warn of a growing shadow inventory of properties — mainly foreclosures — that are being stockpiled by lenders as they try to meter out losses and avoid flooding the market with more distressed homes.

In July, however, the number of Miami-Dade homes and condos listed for sale in the MLS had fallen by 33 percent over the past 15 months. In Broward, inventory was down 38 percent.

Statewide, the markets that suffered the sharpest price declines in the second quarter also saw the biggest gains in sales.

For single-family homes, the Fort Myers-Cape Coral area posted a 98 percent increase, the biggest in the state, while the median house price dropped 56 percent to $87,300. On the condo front, sales in Orlando rose by 202 percent, as the median price sank by 59 percent to $52,100.

Florida’s Existing Home, Condo Sales Rise in January 2009

ORLANDO, Fla., Feb. 25 /PRNewswire/ — Florida’s existing home sales rose in January, making it the fifth month in a row that sales activity showed increases in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors(R) (FAR). Existing home sales rose 24 percent last month with a total of 8,450 homes sold statewide compared to 6,810 homes sold in January 2008, according to FAR.

“Many people are looking at today’s market and seeing opportunities to find the home or business they’ve always wanted,” said 2009 FAR President Cynthia Shelton. “With a range of available housing options, historically low mortgage interest rates and affordable prices, buyers who may have been hesitant before should take a closer look at the current opportunities for homeownership. As real estate professionals who know all aspects of their local market conditions, Florida Realtors are here to help counsel consumers making sound long-term decisions for their homes and their businesses.”

Florida Realtors also reported a 13 percent gain in statewide sales of existing condominiums in January, making it the fourth recent month (following September, October and December) that statewide existing home and existing condo sales were higher compared to year-ago levels.

Thirteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing-home sales in January while 11 MSAs also showed gains in condo sales; it marks the seventh consecutive month that a number of markets have reported increased sales.

Florida’s median sales price for existing homes last month was $139,500; a year ago, it was $206,900 for a 33 percent decrease. According to industry analysts with the National Association of Realtors(R) (NAR), there remains a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in December 2008 was $174,700, down 14.8 percent from a year earlier, according to NAR. In California, the statewide median resales price was $281,100 in December; in Massachusetts, it was $275,000; in Maryland, it was $267,925; and in New York, it was $220,000.
NAR’s latest housing outlook shows that home prices continue to fall, but also notes a trend of increasing sales activity in the Florida, California, Arizona and Nevada markets. “It appears some buyers are taking advantage of much lower home prices,” said NAR Chief Economist Lawrence Yun. “The higher monthly sales gain and falling inventory are steps in the right direction, but buyers will continue to have an edge over sellers for the foreseeable future.”

In Florida’s year-to-year comparison for condos, 2,556 units sold statewide compared to 2,266 sold in January 2008 for a 13 percent increase. The statewide existing condo median sales price last month was $113,400; in January 2008 it was $190,200 for a 40 percent decrease. In the latest data available at press time, NAR reported the national median existing condo price was $181,400 in December 2008.

Interest rates for a 30-year fixed-rate mortgage averaged 5.05 percent last month, down from the average rate of 5.76 percent in January 2008, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s large to medium-size markets, the Daytona Beach MSA reported a total of 419 homes sold in January compared to 321 homes a year ago for a 31 percent increase. The existing home median sales price was $131,800; a year ago, it was $179,100 for a 26 percent decrease. In the year-to-year comparison for the existing condo market, a total of 77 units sold in the MSA last month, up 43 percent compared to 54 condos sold the previous January. The market’s existing condo median price was $167,800; a year ago, it was $230,000 for a 27 percent decrease.

Two charts showing statistics for Florida and its 20 MSAs are attached. One chart compares the volume of existing, single-family home sales and median sales prices in January 2009 to January 2008 based on Realtor transactions; the other compares the volume of existing, condominium sales and median sales prices in January 2009 to January 2008 based on Realtor transactions.

The Florida Association of Realtors(R), the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its 125,000 members in 67 boards/associations.

SOURCE Florida Association of Realtors

January 26, 2009

December existing home sales skyrocketed in both Broward County and Palm Beach County driven by lower prices.  Broward County sales rose a whooping 52 percent during the month from last December, but the median price fell 34 percent to $217,700. Palm Beach County sales also increased dramatically by 37 percent, and the median price declined 27 percent to $246,000.

Commenting on the news, real estate agent Glenn Christie of Aslan Group Realty & Investments said “The low prices are causing buyers to jump into the market to take advantage of deep discounts.  It is once again cheaper to buy than to rent in most of South Florida.”

While foreclosures will likely continue to drag down prices, and rising unemployment will likely add to the number of mortgage defaults this year.  “The buyers market will continue for another three to six months,” said Christie.

If you need help buying or selling a home.  Please complete the form below to request a private and confidential meeting with Glenn Christie.