Thursday, December 31, 2009

THE CLOCK IS TICKING AND I TOLD YOU SO!

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U.S. mortgage rates rose in the latest week for a fourth straight week and hit the highest level since August, a closely watched mortgage survey showed on Thursday.

Interest rates on U.S. 30-year fixed-rate mortgages, the most widely used loan, averaged 5.14 percent for the week ended Dec. 31, the highest since the week ending Aug. 27 and up from the previous week's 5.05 percent, according to a survey released by Freddie Mac, the second-largest U.S. mortgage finance company.

"Although long-term mortgage rates rose for the fourth week in a row, they still remain affordable by historical standards," Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement.

Based on today's median loan amount of $138,000, monthly principal and interest payments for a 30-year fixed-rate mortgage are close to one-third less than a decade ago when rates peaked at 8.6 percent in May 2000, Nothaft said .

"This translates into almost 50 percent less in interest payments over the full 30-year term," he said.

The rate of the latest week tops that of the year-ago period when the 30-year mortgage rates averaged 5.10 percent.

The 30-year rate had fallen to 4.71 percent four weeks ago, the lowest since Freddie Mac started the survey in 1971.

Mortgage rates are linked to yields on Treasuries and yields on mortgage-backed securities.

Freddie Mac said the 15-year fixed-rate mortgage averaged 4.54 percent in the latest week, up from 4.45 percent the prior week.

The Mortgage Bankers Association last week said U.S. mortgage applications fell in its most recent survey.

One-year adjustable-rate mortgages (ARMs) were 4.33 percent in the latest week, down from 4.38 percent the prior week. The rate on the "5/1" ARM, set at a fixed rate for five years and adjustable each following year, was 4.44 percent, compared with 4.40 percent a week earlier.

Wednesday, November 25, 2009

HOUSING RECOVERY CONTINUES

South Florida home sales continue to register strong gains!  roughly 3/4 of the properties being sold are priced at less than $300,000.

Sales of existing homes were up  26 percent in Miami Dade County and 32 percent in Broward from a  year ago.  Condo sales exceeded single family home sales in October.    In Miami Dade, sales were up 47 percent from a year ago and in Broward, they were up 68 percent.  Dade rose 5 percent in month to month sales from last month.  The national increase in home sales rose 10 percent  from September to October.

Here is a break down of the current inventory of homes and condos in Miami Dade

  • Under $100,000   Four Month Supply
  • Under $300,000   Eight Month Supply
  • $300,00 to $1 M   21 Month Supply
  • $1M and over      Four year Supply
One of the reasons for these gains is the extension of the one time home buyer credit of $8000. In addtion,  interest rates are at the their lowest level on record.  This last month the Treasury sold  $30 Billion in T bills at a rate of .040 percent.  That is the lowest level ever.  That translates into a 30 year fixed home loan rate of about 4.74 percent!!!!!!

This is bad news for savings accounts, but good news for home borrowers.  But this will NOT last.  This is the lull before a major storm.  The Fed is spending TRILLIONS that it does not have.  The are borrowing and PRINTING money.  That WILL come home to roost in the form of high inflation and of course HIGH interest rates to try to control it.   Real Estate is traditionally a good investment hedge against inflation. If you dont have a fixed rate low interest rate loan yet.  DO IT NOW. DONT WAIT!!  or you will be sorry!

For Americans,  This is a two edge sword.   Foreign buyers are snapping up the best deals right now with stronger currencies.  Americans are still facing decreased equity,  lost jobs, high unemployment and a government out of control with spending.  That is the current model.. In an inflationary model,  our home prices WILL rise for sure,, but so will our borrowing costs.  Foreigners will be still be able to walk in with more valuable currency exchange rates and purchase.  If you can purchase now,  I would.  There are GREAT deals out there right now.. AND  the rental market is starting to improve.  Hold and Lease if necessary.

Tuesday, November 10, 2009

RECOVERY ON THE HORIZON


A housing recovery is fulling in the works. The average price of a home in Miami Dade County has risen by an average of 1.5% each month for the last three months. This includes Condominiums, which have suffered the largest declines in value due to overbuilding.

The nexus of shrinking inventory, the extension of the home buyers credit by Congress, the continued low interest rates and spector of inflation not far on the horizon, have all combined to put a larger number of buyers in the market.

In the Beach front condo market, the largest group of investors continues to be all cash buyers from off shore. Miami is now the cheapest of the largest Latin American cities. That couldnt be said just a few short months ago. Now Miami is a bargain for buyers compared to Buenos Aires, Rio De Janerio and other destination cites.

Real Estate also continues to be a hedge against inflation. The price of gold and other precious metal commodites have truly outstripped the cost benefit ratio that still exists in Real Property. In times past, as will be in the future. Land and Property are a hedge against a falling dollar and a tax haven for write offs, especially if it a rental property.

I keep saying it, but NOW is the time to jump in. The very best of the very best deals are already gone.. But there are still great bargains to be had... DONT miss out.. The best time to make money is when the market is DOWN,, not UP... People get that wrong all the time. Band wagons in investments like stocks and yes, real estate, are usually headed over a cliff if there are to many people jumping on... The market is swinging.. All in the indicators are that the bottm has been reached and the time is now to buy in.

Friday, October 2, 2009

TAKE GUN, SHOOT AT FOOT

This week the Congress began deliberation on the CAP AND TRADE legislation even while the Health Care debate has yet to be decided and a bill passed through for the Presidents signature. If Democrats in the Senate and House Leadership get their wish, they will pass a public option which by ANY minimal estimate will add an additional $1 TRILLION dollars to the National Debt and eventually drive private insurance out of the market. Any plan that drives out the free market is doomed to inefficiency, huge losses and fraud. Keep in mind that NO government run program has EVER been cost effective.

While major industrial democracies in Europe and the Far East are running away from centralized government control, the US seems to be running in the opposite direction. But what does this have to do with REAL ESTATE you may ask? Very simply and importantly, Interest rates. The cost of money is the life blood of Real Estate. If buyers cannot afford the monthly mortgage payment, properties do not get sold.. Simple. If the government continues to spend money it does not have, then lenders require better returns on lending. That means the Federal Reserve must increase interest rates to attract bond and treasury investors to finance the US debt. That trickles down to you and I in higher interest rates on anything from Credit cards to car loans and yes, 30 year fixed mortgage rates.

The pressure is already building against the dollar because of our incredible deficit. Foreign buyers are demanding higher returns for the greater risk of holding US securities. The danger is, higher interest rates also slow business activity and the nation can ill afford that right now..

SO.... What is the government doing? They are trying to ram through this ill fated bill even though the majority of Americans oppose it. The CAP AND TAX bill is even worse and would add an additional $3,400 a year to the average americans energy expense.

All of these measure will affect the cost of money. ( Interest Rates) They WILL rise. It will also raise the cost of construction at every level. Both of these mean HIGHER PRICES for real estate and higher interest rates to borrow the money to BUY that real estate. SMART investors and home buyers know that inflation is coming. It is already on the horizon and we are seeing it beginning to creep up the cost of oil, which is pegged in US dollars. The less the value of the dollar, the higher the price of a barrel of oil.. Its simple. This is another reason why the G20 is clamoring to replace the US dollar as the medium of exchange because they no longer trust us to keep our financial house in order.

Lets put it this way. If you were to buy $1000 of a persons debt and they paid you 4% interest you would make sure that they had the ability to pay it back and also not borrow so much money from someone else that they got in a situation where they COULDNT pay it back...... The US government goes on the open world market and sells our debt.......by the trillions. Investors are now getting a little freaked out that we simply are spending more than our ability to ever pay back. They want higher interest return because of the higher risk. AND some are even saying... NO... NO MORE LOANS! So, the US is PRINTING MONEY!

REMEMBER.....the ONLY REAL investment that is not PAPER are commodities like GOLD, SILVER, COPPER, and REAL ESTATE. They are the greatest protection against inflation.

If I had to bet the bank on it. I would say that we are headed for a serious round of inflation. No one in Washington seems to have the guts to address the issue and it WILL hit us at one point or another. You cant defy gravity. Its coming.

WHAT TO DO?

1) Lock in to a long term low interest fixed loan on your current real estate. If you cant. SELL!

2) Pick up the great deals from Short Sales and REO foreclosures NOW while there are loan programs and interest rates low enough for you to afford or to keep your expenses low and lease or rent out your investment.
* Keep in mind that in inflationary times, when you are paying a fixed loan amount. You are paying yesterdays dollars with todays inflated value. Its a good deal for the savvy investor. As rents and rates rise, your base cost remains the same.

3) Dont be AWOL on your real estate investments. In a volatile market like this, your attention is important. Watch the markets. Make sure that you have the BEST loan, Make sure you have taken all tax advantages or property tax savings you are allowed. If you are a Florida resident or have Florida property, make sure you HOMESTEAD your property or look at making Florida your primary residence. Planes and the internet can make it possible for many. Also, Florida is only one of 4 states that have NO income tax! That is a huge savings for most.

4) Look at diversifying your investment portfolio that includes CD's, growth stocks, commodities, and of course real estate. Real estate offers tremendous tax benefits by sheltering income as well as giving an annual deduction for depreciation that few other investments can offer. You can shelter your real estate rental income by deducting expenses, management fees, cost of maintenance as well as depreciating the asset, even though it is likely GAINING in value! Dont you love the US TAX CODE! God Bless it and its 12,000 pages!

5) Real Estate offers a simpler way to plan your retirement and give you equity value while receiving monthly income.Its also usually easier to transfer ownership.

When you make these decisions.,, ALWAYS use a professional! My grandfather, a successful businessman, always said that he hired people that knew things he didn't so that their knowledge went to work for HIM! Smart man. You can't be an expert at everything. Todays world is to complicated.. Dont think so? Open the hood of your car and try to fix that engine yourself.
Geoff and I stand here ready to help you with your real estate needs. We have over 25 years of proven successful experience in real estate, both commercial and luxury beach front properties.. Our commitment is to make sure you get the BEST DEAL at the RIGHT PRICE, for the RIGHT REASONS that fit YOUR NEEDS! Give us a call today. Your piece of paradise awaits you and for the time being, its more affordable than you think.


Friday, September 25, 2009

MARKET HITS BOTTOM


The front page of the Miami Herald announces that the Real Estate Market as truly reached its bottom and the buyers have begun a FEEDING FRENZY of purchases.


As a Realtor, I can tell you.. that is the case. I closed escrow yesterday on an incredibly beautiful Ocean Front residence in Sunny Isles Beach, The Riviera of America. It had a bank value on it in 2007 for 1.25 million. It sold with THREE back up offers,, ALL CASH for $650,000 WOW. THAT is a bargain.. And those types of bargains are being snatched up by the savy investors. They realize that the market forces in play right now are stabilizing real estate in South Florida. The very best deals will be gone within 9 to 12 months and less desirable properties will be what is left. A deal for sure, but NOT the incredible properties that are being sold at 2002-3 levels right now.
The inventory is shrinking quickly. DONT COMPLAIN that you missed the bubble if you dont do what is necessary to get in right now. MONEY IS MADE on the DOWN CYCLE friends,, NOT on the up cycle. UNDERSTAND that and get it in your head. If you jump on a band wagon.. you will be playing second fiddle......always.....
Smart investors LEAD the pack both in selling and in buying. If you are running with the mob, you have already lost the best opportunities.

Thursday, September 10, 2009

IMPORTANT LEGISLATION MOVES FOWARD



VERY IMPORTANT legislation is making its way through the US Senate with support in the US House. This bill would establish a non-profit agency to promote tourism in the US.,

Many international governments aggresively help tourism in their countries subsidizing promotional campaigns and programs. The United States leaves that work up to travel agencies, individual hotels, resorts and attractions as well as some State governments.

" This is SO important to us," says William Talbert III, president of the Greater Miami Convention and Visitors Bureau. It has taken 7 years for South Florida to see international tourism to rebound to pre- 9-11 terrorist attack numbers. Why is this important? Miami is the ONLY major tourist destination in the United States that relies on foreigners for over half of its overnight visitors. Miami is truly one of the worlds top International destinations. Numerous studies have been done that support the economic reasoning behind this funding. Independent audits show that an additional 1.6 million visitors would result from this program. The average expenditure of a foreign visitor to the US is $4,500. That is about 800 million additional dollars into the economy annually. In addition, for South Florida, we find that a number of visitors return year after year and over 40% of foreign buyers of our real estate first came here as a tourist. The top four tourist destination cities in the nation are New York City, Miami, San Francsico and Los Angeles.

SO WHERE IS THIS GOING? UP OR DOWN!?



There seems to be conflicting data out there regarding just where real estate IS going in this current financial climate. First, the seemingly BAD NEWS..... New foreclosure filings rose 18 percent in Miami-Dade County and 14 percent in Broward between July and August, according to data released by RealtyTrac, a foreclosure tracking firm. Compared to a year ago, new filings were up by 11 percent in Miami-Dade and 19% in Broward.

In August, roughly one of every 109 homes in Miami-Dade and one in every 79 in Broward were in some stage of foreclosure process in August, up 19 percent and 24 percent from July respectively. Those figures include homes that have received a notice of default, have been scheduled for auction sale and were repossessed by lenders.

Banks took back 699 properties in Miami-Dade and 1,414 in Broward in August.

Now for the BIG PICTURE and the BRIGHTENING PICTURE.

1) These figures are a slight up tick in foreclosures which is typical in summer months. Especially in South Florida, real estate sales dip in summer as well as economic activity. High season and job creation take place in the winter with our number one trade, tourism.

2) Absorption of inventory and the average price of a home are the true gage of property and future values. These two indexes are linked. Its simple supply and demand.. The more units available, the lower the price. If absorption is brisk and inventory shrinking, then prices stabilize. Absorption and sale rates have been on double digit rises both in Miami-Dade and Broward for the last 7 months in a row. Inventory of Condo units in Miami Dade have shrunk from a high of about 16,700 last October to just over 11,000. That is a brisk absorption rate.

Median prices of condos and homes in Miami Dade have stabilized over the last 4 four months which is an encouraging sign. Since this stabilization is taking place in the summer months, that is a very good sign. 74% of sales have been of foreclosures, Short Sales or REO's. There have been many overseas investors with all cash deals snapping up the best properties.

I have one property that is in escrow that was appraised by the bank at 1.3 million in 2007. It is in escrow for $650,000 and is a Class A beach front 2,100 sqft condo in Sunny Isles Beach.

Truly, the deals are at their best. The market is beginning the turn... Every broker I have spoken with sees this. There are many buyers back in the market but they are picky, shopping for the best deals and usually have a heavy cash investment. What I AM seeing in the last several months is multiple offers on properties as the very best deals dry up. And yes, I have even seen buyers BIDDING against each other, driving the price up.

Interest rates are at their lowest levels in MANY years, Property values are almost at replacement values for land and materials. And of course, like all business cycles, this will not last. Inflation is already on the horizon with all the government spending. The dollar has been weakening for weeks. Watch the price of OIL and you will see where we are headed. OIL is traded and pegged to the US dollar. As the value of our currency erodes, the price of oil will go up as will REAL ESTATE and INTEREST RATES. NOW IS THE TIME! You heard it here first.

DO THESE ABC's

(A) If you are in a mortgage at more than
7% or in an ARM loan. REFI NOW!

(B)
IF you are looking for a new property, get on the 8 ball NOW. It will take you months to close and if you are financing, you are running the risk of a higher interest rate on your mortgage.

(C)
GET RID of all revolving debt on cards etc. Whatever you have to do to acheive this.. DO IT. Those rates are headed UP and they also affect your credit rating AS those rates go up and may hinder you in getting a home loan.

Tuesday, September 1, 2009

Walking over Adversity


Adversity, whether the financial times, co-workers, the boss, or the simple stress of the work load can rob a business person of time, attention and emotional strength.
To overcome these and a host of other hurdles, the REAL LEADER in the business world will step up to the challenges with a CHANGE OF MIND! Having the right mind set is critical to success in business regardless of the business climate. Keep in mind that during the depths of the depression, still 80% of the nation was employed and fortunes were still made. You have a choice.. Give in to adversity or simply walk over, or around it.
1) Think What is Possible, NOT what CANT be done
Victims make themselves so. They come at problems with a " there is nothing I can do about it" attitude. Well that is true in one sense.. If you DO nothing.. you will GET nothing. There is always something you CAN do and NOT give up, or give in. NEVER accept NO as the final answer.....EVER.
2) Stay Positive
Be a person who, and even if necessary forcing yourself to do so, says......" The glass is half FULL, not the glass is half empty." Some people, many people, are raised with a half glass mentality. Successfull people shake off that old thinking and always look for the opportunity in the pile of mess or adversity. Even in the basement barrel of life, there is always a gem waiting to be plucked. If you just assume there is nothing of value to learn or to be gained from a situation, you will never find the gem hidden in the garbage.. SOMEONE ELSE with the right attitude will steal your opportunity.
3) Learn
Knowledge IS power. Never ever stop learning. Dont get lazy at what you do and run on the automatic cycle. You will be quickly eclipsed by others that take the initiative to get smarter at what they are doing. When business is bad, take the time to learn more about what you do... how to do it better and come up with innovative ways to do what you do, cheaper, smarter and more effectively. There is always another way of trying something. It doesnt hurt to try.
4) Set a Target
When you go on a trip to some place you have never been, do you just get in the car and start driving? How stupid is that?! You pull out a map.. or if you are smarter, you go on Mapquest and get directions and ALSO what the traffic conditions are so you avoid time delay and ADVERSITY. No one really achieves a goal without setting the goal first. Can you imagine a race where the finish line is...well....... ambiguous? The runners would be wandering all over the track. That might be entertaining and a good laugh, but I dont think the breakfast of champions would ever want the contestants on the front of a Wheaties box. Set definable goals.. Even if for just ONE DAY and stick to it. Check off the progress and make yourself succeed by determined choice.
5) Take Responsibility
I love this one. A real Leader never passes the buck up or down. Passing UP the buck means blaming bosses or managers for your own failure or lack of success. Remember the victim thing? STOP IT. GROW UP! Passing it Down means blaming those below you for your failure.. "if only they had done it the way I told them....." So why didnt they? Its still YOUR repsonsibility. Be a better mentor and get it right. OR Stay and DO IT right no matter how long it takes. You are only helping yourself by, without complaint, doing things the right way. When you do that, the job gets done and those watching learn from your success. Its as simple as walking through your office parking lot and picking up the trash on the way in instead of waiting for "THEM" to do it. I never actually met "THEM" Im sure they are the Mother Theresa of trash removal. But they have never shown up at my office yet. If my staff sees ME picking up other peoples CRAP in the parking lot every day ( and this includes thier crap) they will get the idea that this is the CULTURE of our business to be the best and look the best at all times. If they dont catch on...then there you go...you are flying with Turkeys. Either they morph into Eagles by your example or be stuffed for Thanksgiving.
Attitude; RIGHT attitude will always eclipse Adversity.

Tuesday, August 25, 2009

HOME PRICES TAKE FIRST RISE


Home prices across most of the country have started to rise from the depths of the housing slump, a critical trend that will help stabilize the broader U.S. economy.
Across the Nation, prices in the second quarter posted their first quarterly increase in three years, according to the widely watched Standard & Poor's/Case-Shiller's U.S. National Home Price Index.
The monthly index of 20 major cities also rose from May to June, with Dallas and Denver clocking their fourth-straight increase. Only Detroit and Las Vegas saw prices fall in June.
The U.S. National Home Price Index rose 1.4 percent from the first quarter to 133, though was still down almost 15 percent from the second quarter of last year.
Home prices are at levels not seen since early 2003. Prices, on a seasonally adjusted basis, have fallen 30 percent from the peak in the second quarter of 2006. The jump in residential home sales in the Miami/Ft. Lauderdale area took had the largest one monthly increase in the last ten years at 7%
The monthly index of 20 major cities increased 0.7 percent to 142 from May to June, the second straight month the index didn't decline. It was still 15.5 percent below June a year ago.
WHAT IT SHOWS: The 20-city index is a three-month moving average of repeat sales of a designated group of single-family homes in each city. By measuring the sales price of the same properties over time, the index prevents the data from being skewed by a change in the types of homes sold. Sales between related parties, such as family members, are excluded because they may not reflect true market values.
The Case-Shiller quarterly index is a composite of home price indexes for the nine U.S. census divisions.
WHAT IT DOESN'T SHOW: The indexes only measure price data in 20 major metropolitan areas in 15 states and the District of Columbia. So many areas of the country are not represented.
WHY IT MATTERS: Investors closely watch the Case-Shiller indexes to gauge the level and direction of home prices. The indexes include a broader mix of properties compared to the index created by the Federal Housing Finance Agency. That index excludes many high-end properties, as well as homes bought with riskier mortgages or all cash.
THE QUOTE: "For the second month in a row, we're seeing some positive signs," said David M. Blitzer, chairman of the S&P index committee, adding, "There are hints of an upward turn from a bottom."
In other words,  IF you want to make a smart investment, buy a real asset like Real estate as a hedge against inflation, but that also has income producing possibilities.

Saturday, August 8, 2009


New Rules to Help Homeowners "Squeezed" by falling Equity

More homeowners suffering mortgages larger than the value of their home can now trade in their mortgage for a more affordable home loan, under a broader Making Home Affordable refinance and Mortgage rule.

Borrowers current on payments with Fannie Mae or Freddie Mac guaranteed loans could be eligible for refinancing into new loans even if they owe as much as 125 percent of the home's current value.

Previously, the Home Affordable Refinance Program's loan-to-value limit was 105 percent.

It's the latest effort by the government to help more homeowners refinance their mortgage at a lower rate and reduce their monthly payments.  The idea is to induce homeowners that ARE upside down in their equity to stick in there and keep the property by refinancing to a lower rate and thereby paying lower monthly expenses on the property.

Also, if the existing mortgage was written without mortgage insurance, the new loan won't be burdened with the extra cost.

Fannie Mae and Freddie Mac loans typically require mortgage insurance when the loan is more than 80 percent of the home's value.  Of course, if the current mortgage has mortgage insurance and the new loan is 80 percent or more of the home's value, mortgage insurance comes with the deal.

As usual, high-coast areas including many in California, New England, New York and most resort and second home areas such as Florida won't see much relief. Until the Fannie Mae Freddie Mac conforming loan limit was raised in high-priced areas last year, high-cost area homes were too expensive to be purchased under Fannie and Freddie guidelines.

The new 125 percent limit also may not apply if a second mortgage combined with the first exceeds the limit. The new deal also doesn't allow homeowners to take cash out.

The higher loan-to-value ratios are available now to qualified borrowers who apply through their existing servicer. After Oct. 1 a homeowner can shop around and refinance through any Fannie or Freddie lender.

To check your eligibility for a refinance under the new provision, go to Making Home Affordable.

Saturday, August 1, 2009

Do You Really Know What You are Doing in Today's Market?


The current sales market continues to be brisk compared to last year as we posted the 10 straight month of sales gains in Miami-Dade County.


829 homes and condos sold in June with sales prices that were 89% of asking price. The average sales price was $510,000 and the median price was $280,000 and stayed on the market for 128 days. 71% of the recorded sales were REO's bank own foreclosured or short sales. This figure has gone down slightly each month for the last four months as inventory of the best prices properties begins to dry up.

Overall, the HOUSES LISTED FOR SALE decreased relative to last year. In June 2009 there were 10,465 compared to 17,058 in June of 2008. The NUMBER OF HOUSES sold in June 2009 was 846 compared with 508 in June of last year.


This all continues to be good news for the consumers and and home buyers as well as the Real Estate industry as a whole. One very positive sign is that for the last two months NEW HOME sales have increased nationally. New homes, of course, but construction workers and contractors to WORK and that is certainly welcome news.


The National Associatio of Realtors has great advice in this current Real Estate market that should be heeded by any prospective homebuyer.


Here's how to get ready to be and remain a homeowner.


Create a wish list. Write down housing wants and needs. Include all the physical characteristics you want or need. Include style, size, layout and room configuration. Look at the number of bedrooms and bathrooms, and the basic amenities you must have. Include critical features such as location and services and a home's proximity to good schools or public transportation lines.



Browse for housing. greghardcastle.com offers home valuation features and neighborhood data on trends in local markets. Use features to determine how a listing compares with nearby, comparable properties in terms of value, actual sales prices, home features, neighborhood characteristics, and more. In other words.....GET SMART. It doesnt take that much to get alot of very important information on the property and area that you are interested in.


Work with an expert. Finding a real professional who will represent your best interests can make the difference in location, negotiating the best offer, and closing the home of your dreams. Look for a full time real estate agent, who has uploaded telling photos and videos of their listings and look for agents with good Web sites to market your listing.

Get the complete picture before you visit. You can't know everything about a community from an online listing. Schools, crime, and proximity to shopping and work all impact property values. NAR says talk to a Realtor and go to Realtor.com to explore communities.

Make sure the property details are reliable. Buyers need know when a listing has experienced a price change. Look for Web sites like Realtor.com that updates listings frequently, including price changes. Fresh and reliable information is critical. Realtor.com time stamps listings to help buyers make better informed decisions. Get email alerts and stay on top of changes so you can be first to act.


Most of the above mentioned points are steps that an experienced Realtor will walk through with you. Why leave one of the most important financial decisoins you will make in your life time to chance or a novice. And in the end.....thats why IM HERE!




Monday, July 27, 2009

Home Sales Continue to Rise


New U.S. home sales rose by the largest amount in more than eight years last month, in another sign the housing market is finally bouncing back from the worst downturn in decades.

The Commerce Department said Monday that sales rose 11 percent in June to a seasonally adjusted annual rate of 384,000, from an upwardly revised May rate of 346,000.
It was the strongest sales pace since November 2008 and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 360,000 units. The last time sales rose so dramatically was in December 2000.

Sales have risen for three straight months. The median sales price of $206,200, however, was down 12 percent from $234,300 a year earlier and down nearly 6 percent from $219,000 in May.
The report is another encouraging sign that the beleaguered housing sector is finally coming back to life. Last Thursday, the National Association of Realtors reported that home resales posted a monthly increase of 3.6 percent in June.

There were 281,000 new homes for sale at the end of June, down more than 4 percent from May. At the current sales pace, that represents 8.8 months of supply — the lowest level since October 2007.

Fallout from the housing crisis has played a central role in the U.S. recession, now the longest since World War II. Foreclosures have spiked, homebuilders have slashed construction, and financial companies have lost billions.

Thursday, July 23, 2009

Get your Suits on, The Anti Business Left is turning up the Heat!


A friend recently went to hear Charles Krauthammer. He listened with 25 others in a closed room. What he says here, is NOT 2nd-hand but 1st. This is VERY serious for the direction of our country. The ramifications are staggering for us & our children.


To my Friends & Associates: Last Monday was a profound evening, hearing Dr. Charles Krauthammer speak to the Center for the American Experiment. He is brilliant intellectual, seasoned & articulate. He is forthright and careful in his analysis, and never resorts to emotions or personal insults. He is neither a fear monger nor an extremist in his comments and views. He is a fiscal conservative, and has a Pulitzer Prize for writing. He is a frequent contributor to Fox News and writes weekly for the Washington Post.


The entire room was held spellbound during his talk. I have shared this with many of you and several have asked me to summarize his comments, as we are living in uncharted waters economically and internationally.


Even 2 Dems at my table agreed with everything he said! If you feel like forwarding this to those who are open minded and have not 'drunk the Kool-Aid', feel free. A summary of his comments:


1. Mr. Obama is a very intellectual, charming individual. He is not to be underestimated. He is a 'cool customer' who doesn't show his emotions. It's very hard to know what's 'behind the mask'. Taking down the Clinton dynasty from a political neophyte was an amazing accomplishment. The Clintons still do not understand what hit them. Obama was in the perfect place at the perfect time.


2. Obama has political skills comparable to Reagan and Clinton. He has a way of making you think he's on your side, agreeing with your position, while doing the opposite. Pay no attention to what he SAYS; rather, watch what he DOES!


3. Obama has a ruthless quest for power. He did not come to Washington to make something out of himself, but rather to change everything, including dismantling capitalism. He can't be straightforward on his ambitions, as the public would not go along. He has a heavy hand, and wants to 'level the playing field' with income redistribution and punishment to the achievers of society. He would like to model the USA to Great Britain or Canada .


4. His three main goals are to control ENERGY, PUBLIC EDUCATION, & NATIONAL HEALTHCARE by the Federal government. He doesn't care about the auto or financial services industries, but got them as an early bonus. The cap and trade will add costs to everything and stifle growth. Paying for FREE college education is his goal. Most scary is his healthcare program, because if you make it FREE and add 46,000,000 people to a Medicare-type single-payer system, the costs will go through the roof. The only way to control costs is with massive RATIONING of services, like in Canada . God forbid.


5. He's surrounded himself with mostly far-left academic types. No one around him has ever even run a candy store. But they're going to try and run the auto, financial, banking and other industries. This obviously can't work in the long run. Obama's not a socialist; rather he's a far-left secular progressive bent on nothing short of revolution. He ran as a moderate, but will govern from the hard left. Again, watch what he does, not what he says.


6. Obama doesn't really see himself as President of the United States , but more as a ruler over the world. He sees himself above it all, trying to orchestrate & coordinate various countries and their agendas. He sees moral equivalency in all cultures. His apology tour in Germany and England was a prime example of how he sees America , as an imperialist nation that has been arrogant, rather than a great noble nation that has at times made errors. This is the first President ever who has chastised our allies and appeased our enemies!


7. He's now handing out goodies. He hopes that the bill (and pain) ill not 'come due' until after he's reelected in 2012. He'd like to blame all problems on Bush from the past, and hopefully his successor in the future. He has a huge ego, and Mr. Krauthammer believes he is a narcissist.


8. Republicans are in the wilderness for a while, but will emerge strong. We're 'pining' for another Reagan, but there'll never be another like him. Krauthammer believes Mitt Romney, Tim Pawlenty & Bobby Jindahl (except for his terrible speech in February) are the future of the party. Newt Gingrich is brilliant, but has baggage. Sarah Palin is sincere and intelligent, but needs to really be seriously boning up on facts and info if she's to be a serious candidate in the future. We need to return to the party of lower taxes, smaller government, personal responsibility, strong national defense, and states' rights.


9. The current level of spending is irresponsible and outrageous. We're spending trillions that we don't have. This could lead to hyper inflation, depression or worse. No country has ever spent itself into prosperity. The media is giving Obama, Reid and Pelosi a pass because they love their agenda. But eventually the bill will come due and people will realize the huge bailouts didn't work, nor will the stimulus package. These were trillion-dollar payoffs to Obama's allies, unions and the Congress to placate the left, so he can get support for #4 above.


10. The election was over in mid-September when Lehman brothers failed. Fear and panic swept in, we had an unpopular President, and the war was grinding on indefinitely without a clear outcome. The people are in pain, and the mantra of 'change' caused people to act emotionally. Any Dem would have won this election; it was surprising it was as close as it was.


11. In 2012, if the unemployment rate is over 10%, Republicans will be swept back into power. If it's under 8%, the Dems continue to roll. If it's between 8-10%, it'll be a dogfight. It'll all be about the economy. I hope this gets you really thinking about what's happening in Washington and Congress.


There's a left-wing revolution going on, according to Krauthammer, and he encourages us to keep the faith and join the loyal resistance. The work will be hard, but we're right on most issues and can reclaim our country, before it's far too late.

Monday, July 20, 2009

Master the Short Sale

75 % of all the current sales and pending sales in South Florida are Short Sales or re sales of foreclosed properties. For this reason, its important to master the process which can in the least, be quite daunting.

There are some very important steps that you need to take while making a decision on making an offer on a foreclosure or short sale property.

1) Only work with a licensed Realtor that KNOWS the area or property in which you are interested. Dont simply assume that an agent knows the market that he is showing and is not simply trying to close a sale and move on..... at your expense.

2) Know the area in which you are looking to buy. If it is a Condo Association, make sure that you see current financial statements on the Association. Make sure that no more than 10% of the units in the building are in arrears in payments to the Association. Typically, I am very wary of a property where more than 5% of the units are in arrears. This makes for a potential problem for the remaining home owners who must continue to make up the difference in expenses.

3) Get PRE qualified for a loan. Have a letter of credit prepared prior to submitting an offer on the property

4) Be prepared to put down at least 40% in the current market to make your offer attractive enough to the existing lender to take your deal. The more cash down, the better your position will be.

5) Make sure that you have a promise from the listing broker IN WRITING to your agent that they will reveal all other offers on the table in a timely fashion. You want to have the opportunity to adjust your offering price if another offer comes in higher. You dont want to be the one waiting for months for an answer from the bank and then at the last minute a line jumper beats you out of the deal simply because you were not given the opportunity to adjust your offer.

6) Be patient. Impatience reaps no rewards. This is not a rabbit race. It is a turtle crawl. Realize that those with the staying power are likely to get the best deal. Dont get impatient. Short Sales are notoriously slow and full of red tape. BUT they are the best prices out there. It can take from 3 to 6 months to get an answer from some banks.

Good LUCK!

Wednesday, July 15, 2009

From the People that gave you the DMV and the Post Office, They are at it again!



Government Sets New Rules for Appraisal of Property

The Federal Government in its infinite and ever changing wisdom has messed with the Free Market once again. This time its a blow to home sales in the making. This comes at a time when the government is supposedly trying to get as much real estate sold as possible or at least keep people in thier homes. I think that was the idea we were all sold to print 2 trillion dollars and give to AIG, Bank of America, Meryl Lynch, Countrywide, Wells Fargo, Citigroup, Washington Mutual and the list goes on!

What they have done now is change the rules on property appraisal. So how is that going to play itself out in the market place? Simply, The old rule was that two people would go into contract to sell and buy a property. Mr and Mrs. Smith would sell thier house to Mr. and Mrs. Jones. They both agree on a price and Mr. and Mrs. Jones qualify to buy it at the agreed price. Typically, Lenders would hire an appraiser who then looks at comp sales in the area and writes an appraisal that would justify the purchase price. Obviously Mr. and Mrs. Jones, ( and I say this without knowing them personally) are not complete idiots and have shopped the market and know that they are getting a good deal. The appraisal should validate that decision. Right?! WRONG! Enter the NEW Federal government lending and appraisal rules required of Frannie Mae and Freddie Mac. ( Both of which underwrite about 60% of all home loans in America)

THE NEW RULES

The lender and the appraiser can have no relationship and no contact. The appraiser is literally pulled out of a hat in a lottery who then appraises the property. What if the appraiser has no experience or knowledge of the area that he is being asked to appraise? TO BAD, SO SAD, Go to Jail..Do not pass go,, DO NOT collect $ 200 or likely get a loan! This new rule is already KILLING sales and keeping property which value is being set by the selling price to not be appraised correctly by a knowledgeable person. The result is that people cant get loans to close.. THAT means that deals are going sideways that otherwise would have closed with new buyers.

There is emergency legislation being drafted to present to Congress to fix this ridiculous and business killing rule. Be watchful as it makes its way through PELOSILAND via Barney Franks House Committee on " How to run a free market when I have never worked outside of Government a day in my life" If you care about Real Estate you should call the Insane Asylum that is our current US Congress and demand that your representative SUPPORT Free Enterprise and Free Markets and stop meddling in the process. Business and and Free Markets which create efficiency and lower costs for all require fair and steady regulations that are not constantly changing at a politicians whim. It also requires that government stand aside and only intervene when injustice takes place, not to use the law to penalize one group or another based upon thier voting patterns.



Monday, July 13, 2009


Why Sunny Isles Beach?
Very simply, Sunny Isles Beach, Florida is likely one of the best real estate investments that a person could make today in luxury oceanfront real estate. Not Dubai, not European Med properties, not South America, not Thailand can match the affordability, the stability or the quality of the ocean front residences of Sunny Isles Beach. This area is known as the American Riviera.
But lets take a closer look at the investment side in today volital market. Why buy NOW?!
1) Inflationary pressures are building in the economy. Oil has doubled in price in the last 7months. The reason of which is NOT demand, but the lack of faith in the US dollar to hold its value as we rack up Trillion plus dollar deficits. The only way to finance the out of control spending in Washington is to print more money and to borrow it from overseas. Both of these schemes make the dollar worthLESS and thereby the price of properties and the loans to finance them will rise. Also, this feeds demand from overseas buyers who suddenly find themselves in a candy store of real estate sales with thier own currency buying MUCH MORE than they could just a year ago.

I have one property in escrow on the Beach in Sunny Isles that two years ago was selling for 1.2 million. It is in escrow at $690,000 with FOUR back up offers on the table. ALL foreign buyers. These prices will not last for Americans in the long term. As our currency weakens, we will be in increasing competition with foreign nationals coming in to buy up properties which to them seem like a steal. To us holding US notes, NOT! There is a window we are in at the moment that is what I call "pre-inflationary pretext" This is the time NOW to refinance to the lowest possible rate you can if you are staying in your property. This is also the time to lock into a property at low prices with relatively cheaper US dollars. THIS WILL NOT LAST friends. Dont get caught with your pants down. We are reliving 1971 all over again and we all know where this is headed. Its Jimmy Carter part two. Why politicians continue to think they can defy gravity is beyond this Real Estate Professional, but it happens perannually none the less.

Saturday, July 11, 2009

THE LIGHT AT THE END OF THE TUNNEL IS NOT A TRAIN


Thank God its not a CHOO CHOO

There is a light at the end of the tunnel in Miami Beach Real Estate and that light is no longer an incoming train! The bottom HAS been reached and none to soon. For the last 9 months, sales have increased over last year by double digit proportions. Last month alone, condo sales in Miami increased at a staggering rate of 37% over last year. The average price of beach front real estate INCREASED last month by over 1.2 % Thats welcome news to owners who have seen prices plummet, even on the beach by about 35% since 2006. Lower interest rates, a weak dollar, the fear of inflation and decreased prices have all combined in a perfect storm to bring sales sizzling back to life. Keep in mind that over 75% of these sales are foreclosure or short sale properties. Short Sales are where the bank is selling distressed properties by owners for less than the loan amounts in leu of foreclosure. Its all good news for Miami Real Estate.

If you have been holding back on making a good real estate investment, you should not be waiting any longer or you are going to miss this cycle. Prices WILL go up. Inflation WILL go up, Interest rates WILL go up. You cant print 2 trillion dollars in funny money in Washington D.C. and NOT have that happen. One of the few hedges against a devalued currency and inflation IS real estate. DONT MISS OUT or the light you see WILL be train of regret!