Market News

In a forecasted move, Governor Charlie Crist has halted foreclosures for 45 days starting December 1st. This action should allow the real estate market to temporarily stabilize and hopefully produce gains in consumer confidence and sales. Governor Crist made this regulatory move for many reasons, some of which include experimentation in how the market will react to local regulation, to create unity among the banks in terms of actions against foreclosures and to promote holiday tranquility.

Over the next 45 days the market will be observed closely to see the speed in which the real estate market reacts to Governor Crist's decision. Early reviews have shown no real results but economists are hopeful that buyers will see opportunity in the stability created by this real market regulation.

This decision also gives lenders a chance to see what uniformed action will do in terms of speeding up recovery. Banks have been individually trying to solve their mortgage problems, but have thus far been unsuccessful. Both lenders and borrowers are eager to see the government step in to try and break the stalemate on faulty mortgages. This action may appear small in comparison to other plans the Federal Government has implemented for the housing crisis, but it's symbolic of the government's resolve in helping those suffering financially because of it.

On a more personal note, the halt on foreclosures over the holiday season, albeit temporary, allows people to enjoy time with their loved ones without the fear of losing their home. Additionally, the real estate market may see some more action over the holiday season without constant reports on rising foreclosures. 

The decision to halt foreclosure may seem like the banks favor borrowers over lenders, but banks have met this decision with a sense of relief as they can now proceed with the surplus of defaulted mortgages they already have.

While Miami Beach has an aura of luxuriousness and exclusivity, foreclosures are bringing a lot of Miami Beach property into affordability for the middle class. That’s right, those beautiful Miami Beach homes and chic contemporary Miami Beach condos that seemed so out of reach just three years ago may be within range now. The subprime mortgage crisis has hit South Florida harder than most places in the country. Forbes ranked South Florida the second hardest hit next to Southern California in terms of regional foreclosure strife. This is bad news for current property owners that have seen their property values slip over thirty percent the last three years, but good for those looking to get into the market.

A condo unit in the famous Bentley Bay condo in Miami Beach may have sold for $250,000 dollars in 2004, but would now be selling for $175,000 dollars. Some condos haven’t seen such radical declines in cost while others have plummeted to record lows. Foreclosure property is especially discounted as banks selling homes are trying to find ways to break even on their investments rather than make a profit. There are other condo-types besides foreclosure property that have great deals. Miami Beach condos that have been recently built and are struggling with the lack of demand are also offering very low prices to lease or own.   

Miami Beach home foreclosures hold a particularly larger appeal for investors. Because Miami Beach homes usually cost more than Miami Beach condos the decline in price is much more significant. Homes are also seen as better long term investments. Miami Beach homes tend to double in value over the course of ten years. The average Miami Beach home would cost around $400,000-$500,000 dollars. Foreclosure homes make it possible to get a home at an extremely discounted rate with the hope of hundreds of thousands of dollars for return on investment as the property appreciates over the years. 
 

The general consensus among anyone who‘s following real estate—even remotely—is its current status as a buyer’s market full of opportunities for those who know that the market is unstable and may lead to short term losses.  Today is there is tons of unsold property for sale like Miami Beach condos and the values for these properties are still dropping even as 2008 begins to come to a close.

Excess inventory plus dropping values equal intrepid buyers seeking genuine bargains.  Each person has their criteria in terms of what they look out for: length of time on the market, newly built homes with no buyers in sight.  At the end of the day however, foreclosures are where most people are looking nowadays since there are just so many on the market.  Banks want to rid themselves of these properties and it’s not unusual for them to agree on unusually low prices if buyers know what they’re doing.

These genuine bargains usually require patience, especially when it comes to foreclosure property regardless of whether the property is South Beach condos or single family Miami homes.  While foreclosures have gained a reputation for always being a great deal, property owned by the bank is sometimes sold for the same price as property that isn’t a foreclosure.  Auctions have also gained popularity but they’re a riskier option.

Auctions are fiercely competitive and bidders can and will raise the stakes frequently as some of them have deeper pockets than others which is why it’s so important that you come in with a predetermined price of how much you’re willing to pay.  With that in mind and taking into account what was mentioned earlier, normally high valued property that is now foreclosure does not mean that it won’t fetch top dollar.  These same fierce bidders become even more competitive and can quickly outbid you.

South Florida homes have been among the hardest hit markets as a result of the continued problems affecting the country’s housing industry.  As 2007 wound down and 2008 emerged, several news headlines gained lots of exposure as the government devised solutions to fixing the situation which were, for the most part, fruitless.  While many speculated it would happen, many were caught by surprise when the government took the bold decision to try and prevent the situation from getting worse by bailing out Fannie Mae and Freddie Mac, the two largest mortgage lenders in the country.

Now the bailout was definitely something that most would have wanted to avoid but it’s happened and now all eyes have turned to what outcome this will have.  Some say it’s going to make matters even worse while others say that it could actually yield positive opportunities.

For the time being, struggling homeowners aren’t going to be seeing much breathing room from this.  The people most likely to benefit from the Fannie Mae and Freddie Mac bailout may be first time homebuyers interested in purchasing Miami real estate as this bailout could yield more flexible financing opportunities when applying for a new mortgage loan.

Buyers interested in purchasing Miami Beach waterfront condos should be aware that the application process is still going to remain very selective and lenders will be scrutinizing potential borrowers intensely before approving a mortgage of any sort.  However, buyers may be able to work out better monthly payments with lenders which could spark a little more buying reassurance among hesitant consumers.

The whole Freddie Mac and Fannie Mae bailout is a very sensitive issue and right now it’s still too early to see whether this was a wise decision or major governmental blunder.  Investors will likely have a small degree of reassurance knowing these two lenders are now in the hands of the government.  What do you think the future holds“

If sales at Home Depot and Lowes start to pick up, it may not necessarily be that Miami home and condo sales have jumpstarted once again (as much as we would all welcome such news) as it is homeowners buying the materials necessary to get started on that new project they just saw successfully done on the HGTV or TLC network.

Homeowners with cable TV have found a new way to simultaneously entertain and educate themselves with shows like “Flip This House”.  Instead of presenting a step by step guide through some dull how to program, most of these home decorating and renovation programs present their unique tips and tricks in an approach that’s entertaining and extremely comprehensive, even for someone who has never picked up a screwdriver and wants to find worthwhile methods of selling their home while learning a thing or two about home decoration in the process.  Thus, the need to hire a professional to take care of a simple fix is completely removed and hundreds of dollars are saved thanks to these shows teaching viewers how to do it themselves.

The useful money saving skills presented on these shows are a perfect complement to the creative projects they also highlight, allowing viewers to explore their own creativity and become the next Paul Cezanne or Mary Cassatt by using their homes as their canvas. Their masterpieces often result in some truly unique interiors using a pastel of unusual colors to homemade furnishings made from unexpected household items that have been lying around.  These activities are why many say home decorating can be better described as home recreation.

Everyone likes to indulge their inner artist every now and then and the house or condos they come home to each and every day are usually one of the best places to feed this indulgence.  Homes remain one of the ultimate representations of who a person is and what their interests may be and who knows, perhaps one person will identify with a seller’s own artistic style and find the property too attractive not to buy.
 

In the current real estate market foreclosures are at a higher rate than they've ever been. Distressed homeowners are being forced to foreclose on their homes as property taxes and interest rate hikes mixed with a dwindling economy make mortgage payments unmanageable. Some homeowners on the brink of foreclosure can only sit back as events unfold that put them in the precarious situation of losing their home without compensation. But these distressed homeowners may have other options depending on their situations.

One good option if you are facing foreclosure is to go for a quick sale. This method of selling is growing in popularity due to a rise in demand for buyers seeking homes at rock bottom prices. The buyers market is seeing distressed homeowners selling homes as an opportunity to buy up cheap property. Advertising a property as a quick sale is one of the best ways to get attention from potential buyers. Selling your home quickly at a price below market value will not give you the return on investment you hoped for but will cut your losses and save your credit if you're headed toward foreclosure.

Another option is to sell back to the bank. If you can't sell the home on the market, sometimes it's a good option to make a deal with the bank. You shouldn't wait until foreclosure is imminent to approach the bank for a deal. Lenders, especially in the current real estate market, are open to suggestion if you can give them a fair deal that will prevent a potential foreclosure situation.

These options are not available to everyone. Certain situations are more critical than others and it would be naïve to say all distressed homeowners can avoid foreclosure. But, distressed homeowners should weigh their options and see if they can use one of the methods above to cut their losses and save their credit.

Everybody knows the real estate market situation and the U.S. economy are experiencing difficulties so there’s really no need to dwell on those aspects too much.  The market for South Florida homes is however, full of buying opportunities but because of these difficulties many buyers and investors still have second thoughts about purchasing a Miami Beach condo home, which is expected.

That sentiment kind of makes May’s two percent increase in existing home sales seem a little odd, albeit certainly welcoming after April’s modest surge in new home sales.  Obviously these figures will pale in comparison to those of last year but then again, the real estate market wasn’t necessarily in as inconvenient of a situation as it is now just over a year later.

Even so, the average price for a South Florida home saw yet another drop which depending on one’s outlook may be a good thing or a bad thing.  Those hunting investment property bargains and first time buyers transitioning towards living on their own seem to be adopting the former approach.  This also assumes these people buying homes and condos have already taken into account the potential temporary losses they may have to contend with as the real estate market continues to fluctuate.

This temporary period may end up lasting into 2009, at least that’s what market forecasters have said will happen but we must keep in mind that these are all educated guesses based on market trends so there is a chance things can go from bad to worse just as much as they can (and with any luck will) improve.  If anything, we can view May’s figures as a very humble albeit heartening sign of good things to come for the real estate market as it continues its upward and downward trends towards an eventual recovery.