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Let's Talk Real Estate!

Felipe Quintero's Blog

By Felipe Quintero | Agent in Miami, FL
  • Miami market strengthens with drop in distressed sales: StreetEasy

    Posted Under: Market Conditions in Miami, Foreclosure in Miami, Investment Properties in Miami  |  April 8, 2013 3:48 PM  |  293 views  |  No comments

    Miami market strengthens with drop in distressed sales: StreetEasy

    April 08, 2013 12:00PM

    New development in Miami

    The Miami real estate market is gaining steam, according to the inaugural Miami Residential Market Report issued today by StreetEasy. Based on sales closed during the first quarter of this year, the report found that the overall median sales price in Miami Dade County has increased for the eighth consecutive quarter. But it’s not just the median sales price increase that’s pushing the market ahead.

    “As in so much of the country, inventory has been extremely tight,” said StreetEasy’s head of research Sofia Song. “Couple that with increased demand from domestic and foreign buyers, and it’s no surprise to see not only an increase in median sales price, but also an almost 20 percent drop in distressed sales this quarter.”

    Current median sales price ticks in at $172,900, which marks a 4.8 percent year-over-year increase. The median sales prices of condominium and single-family house resales turned upward, while that of new developments went down nearly 19 percent year-over-year.

    And as for distressed sales, there were 18.8 percent fewer in Miami Dade compared to last year. Broken down, condos saw 20 percent fewer distressed sales since last year, and 15.3 percent fewer than in the last quarter of 2012. Houses had 17.1 percent fewer distressed sales since last year and 15.1 percent fewer than the last quarter. The South Beach and the Fisher Island market had the biggest gains in this category: a 41.4 percent year-over-year gain in median price and a 73.5 percent jump in average price, respectively.

    The number of closings jumped 18.5 percent year-over-year, and almost 2 percent quarter-over-quarter, the report shows. Condos saw 21.5 percent more closings year-over-year; single-family homes saw a 27.8 percent year-over-year gain.

    But this doesn’t come without a hitch: overall new development in the county has been lagging. Closings in this category plummeted nearly 46 percent year-over-year and 39.1 percent quarter-over-quarter, according to the report. Upper Miami Beach alone saw a 72.2 percent decrease in new development closings since last year, while Greater Aventura and Bal Harbour both recorded a 69.3 percent decline. –Zachary Kussin

  • The home bidding wars are back!

    Posted Under: Home Buying in Miami, Foreclosure in Miami, Investment Properties in Miami  |  April 4, 2013 12:15 PM  |  278 views  |  1 comment

    The home bidding wars are back!

    By Les Christie    CNNMoney April 4, 2013: 10:35 AM ET

    The competition has been most intense in California, where 9 out of 10 homes sold in San Francisco, Sacramento and cities in Southern California have been drawing competing bids.

    NEW YORK (CNNMoney)

    The bidding wars are back. Seemingly overnight, many of the nation's major housing markets have gone from stagnant to sizzling, with for-sale listings drawing offers from a large number of house hunters.

    In March, 75% of agents with broker Redfin said their clients' offers were countered by rival bids, up from 56% who said so in late 2011.

    The competition has been most intense in California, where 9 out of 10 homes sold in San Francisco, Sacramento and cities in Southern California drew competing bids during the month. And at least two-third of listings in Boston, Washington D.C., Seattle and New York generated bidding wars.

    "The only question is not whether a new listing will get multiple bids but how many it will get," said Kris Vogt, who manages 14 Coldwell Banker offices in the Sacramento area. One home in an Elk Grove, Calif., subdivision recently received 62 separate bids. The final sale price was for more than $150,000, well above its $129,000 asking price.

    In Cambridge, Mass., two condos that could be combined into one large home hit the market two weeks ago for $800,000 each, according to Pat Villani, president of Coldwell Banker Residential Brokerage in New England.

    "The brokers stopped taking names after the number of bidders reached 250," she said. The winning bidder offered $2 million for both units.

    Related: Five best markets to buy a home

    Homebuyers eager to purchase before home prices and mortgage rates rise are finding few homes for sale as sellers hold out for better deals, said Glenn Kelman, Redfin's CEO.

    Many homeowners are still underwater, owing more on their mortgages than their homes are worth, and they want to wait until selling becomes profitable again. By doing so, they can avoid short sales, which carry big hits on credit scores, 85 to 160 points, according to FICO.

     

    "Many people have been holding on for a profit and they're just now getting their heads above water," said Kelman.

    Those who want to sell and buy a new home are encountering a market where it's difficult to find a new place of their own, said Vogt.

    Over the past few months, Jackie and Cliff Kaufman have bid on four different homes in St. Petersburg, Fla., including one short sale and a foreclosure.

    The pair, who have two adult children and run an online jewelry business, said they bid $5,000 more than the $495,000 asking price on the first home they had their eye on and never heard back from the seller's agent. They were later told the house sold for nearly $550,000.

    Next, they bid on a short sale listed for $600,000. This time, they came in $10,000 above the asking price and again, they were beaten out. The house was only on the market for two days.

    The third attempt to make an offer on a bank-owned property was also met with silence.

    "It was very frustrating," said Jackie Kaufman. "We felt we were always on the outside of the loop and that people who won the homes had the inside track."

    By the fourth try, the couple successfully bid through a listing agent, who they believe pushed their bid harder in order to earn a double commission since she was representing both the buyer and seller in the deal. And they managed to get the place for $30,000 less than the asking price.

    They were lucky. Inventories of homes for sale continue to shrink. In February, the National Association of Realtors reported a 19.2% decline in inventory year-over-year. While the number of homes for sale should rise with the onset of the spring selling season, housing inventory is expected to remain low, pushing prices higher.

    And new home construction, especially in markets hit hard by the housing bust, is still moving forward at a snail's pace, since the cost to build the homes is often more than what the property ends up selling for, said Jeff Culbertson, an executive vice president for Coldwell Banker in Southern California.

    Even though home prices are on the rise, the balance between buyers and sellers has been thrown off balance, said Kelman.

    "With buyers out in force and sellers cautious, the market is in an awkward 'tweener' phase," he said. To top of page

  • That's What A Housing Recovery Looks Like

    Posted Under: Market Conditions in Miami Shores, Home Selling in Miami Shores, Foreclosure in Miami Shores  |  April 2, 2013 7:18 AM  |  400 views  |  No comments

    CHART OF THE DAY: That's What A Housing Recovery Looks Like

    Joe Weisenthal and Mamta Badkar | Mar. 26, 2013, 9:10 AM | 9,305 |   

      This beautiful chart from today's Case-Shiller house price report shows that housing has made a comeback.

      Not only were prices around the country up over 8%, but the year-over-year improvement continues to accelerate nicely.

      Both the 10 and 20-city composite indices had their highest increases since summer 2006. "This marks the highest increase since the housing bubble burst," according to David Blitzer Chairman of the Index Committee at S&P Dow Jones Indices.

      While declining inventory has helped support home prices, housing analysts have said housing is also seeing a "positive feedback loop" i.e. when people think home prices are rising, they believe they will keep doing so, and credit conditions will improve, and this increases demand for homes.

      Of course some warn, that home prices are being driven by investor demand and not by more traditional homebuyers, and that the rise in home prices can't be sustained.

      Read more on the details of the report, see here.

      Chart of the day shows the S&P/Case-Shiller Home Price Indices, march 2013
     
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