In South Florida's turbulent real estate market, 2011 was a year marked by competing and contradictory trends.
A November sales report released Wednesday by the Miami Association of Realtors highlights a few of the head-scratching trends of the past year, with rising sales volumes, depressed prices, cash-buyers and unprecedented international demand for distressed properties.
Consider:
• International buyers flocked to South Florida in 2011, spending more than $3.5 billion in cash on discounted real estate, while thousands of locals struggled with underwater homes, a nation-leading foreclosure backlog and a tight credit market.
• Soaring sales and shrinking inventory—two trends that normally lead to price appreciation—were accompanied by low, stagnant prices as the market anticipated a second wave of foreclosures.
• More former homeowners became renters, but that actually helped the home sales sector (which normally competes with the rental market for demand). That's because investors bought up thousands of distressed homes, renovated them and flipped them into rental properties.
• The supply of homes for sale decreased by 40 percent to about 28,000, but the so-called "shadow inventory" of foreclosure homes not yet for sale ballooned to more than 200,000, thanks to a temporary slowdown in foreclosures.
In pure numbers, South Florida existing home sales in November increased at a slower pace than earlier in the year, but median prices began to show signs of improvement.
There were 1,064 condo sales in Miami-Dade County in November, up about 2 percent from the same month last year and down from 1,202 in October, according to Wednesday's report. Single family sales rose 11 percent year-over-year to 755, little changed from October's total.
In Broward, condo sales fell 1 percent year-over-year to 1,089, and that total was down slightly from 1,150 sales in October. There were 961 single-family sales in November, up 22 percent from last year but down 3 percent from the previous month.
South Florida's sales pace is cooling just as the sluggish national housing market is starting to pick up steam. National home sales increased 4 percent between October and November to an annual pace of 4.4 million, up 12.2 percent for the year.
So what's on the horizon for South Florida in 2012? Well, the forecasts are as conflicting as the year past.
"I don't think any real rebound is going to happen until at least 2013," said Jack McCabe, CEO of Deerfield Beach-based McCabe Research & Consulting. "Right now we have 371,000 open foreclosure files in Florida, and you have 800,000 mortgages that are 60 days late or in default. I don't see the market rebounding for at least two years."
Terri Bersarch, Broward County board president of the Miami Association of Realtors, sees it differently.
"Condominium prices in Broward County have risen consistently since January of this year, a very important sign of market strengthening," she said in a statement. "Strong demand resulting in limited supply should yield continued market strengthening in 2012."
ZIP Code: 33308 Approximate Location Boundaries: Broward, Dade and Palm Beach Counties
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About Jonathan Keith, PA:
JONATHAN KEITH Broker Associate, Professional REALTOR® Designation, Certified Fine Homes Specialist, E‐Certified, Certified Relocation Specialist Certified Commercial Investment Member (CCIM) Candidate
Foreclosed Homes are the Hottest Properties in the South Florida Market In 2008 foreclosures accounted for 37.4% of all the sales in the Greater South Florida Area! And in 2009, there are an expected 2 Million new foreclosures to hit the market. Many times to get the best deal, you must be the first person to make an offer. When it comes to finding discount real estate, thereʹs no better resource than www.SFLForeclosures.com lists. This easy to use foreclosure list can guide you to all kinds of Broward county government homes, bank owned properties, REOs, federal homes, all of which are available for purchase at special sales at way below their actual market value. Whether you’re in search of for your first foreclosure home, a handyman special or a beautiful place to retire, www.SFLForeclosures.com is the best way to find real estate foreclosure listings. Call Jonathan today at 954‐709‐9742 for the best deals! Acquire an Investment Property for Practically Pennies on the Dollar. Time is of the essence when purchasing foreclosures and there are many advantage to buying in today’s real estate market so don’t let this golden opportunity pass you by. Real Estate expert Jonathan Keith knows that today we have the best interest rates, a large inventory to choose from and highly motivated sellers many willing to negotiate their prices – sometimes significantly. Clearly it is a great time in the market today to acquire an investment property for practically pennies on the dollar to add to a portfolio and meet long‐term needs. An Expert in Today’s Market and Expertise in Foreclosures, REOs, Bank Owned Properties & Short Sales There may never be a better time to buy than right now! Jonathan Keith is a highly reputable and respected real estate professional with Prudential Florida Realty. He is nationally recognized as a top performer in the real estate industry, and helps you make sound investment decisions. Jonathan Keith is an expert in today’s market and has particular expertise in Foreclosures, REOs, Bank Owned Properties and Short Sales. An Established Contender in the Foreclosure & Income Property Markets in the S. FL Investment Community $8,000 tax credits for home buyers and 2 million new foreclosures in 2009 – Wow! An active real estate investor since 1996, Jonathan is an established contender in the foreclosure and income property markets in the South Florida investment community. Over the past few years, Jonathan has specialized in working as a Buyer’s Agent for people interested in buying Foreclosures in the South Florida market. In 2008, Jonathan was the #6 REALTOR® for Prudential, largely in part to the fact that well over 68% of the homes he sold were foreclosures. This is his area of expertise and he possesses a unique understanding of how to buy foreclosures, as well as the best way to negotiate with the banks to make the best investments for his clients. When you work with Jonathan, you work with an Expert His investors and buyers are getting deals to steal! Donʹt miss out. Jonathan is on the cutting edge of understanding the dramatic changes that have occurred within the market. He possesses the unique ability to identify market gaps along with the strategic vision necessary to exploit these opportunities for his clients well ahead of the competition. Jonathan holds a professional REALTOR® designation. His vast skills and knowledge make him one of the leading and most sought after professionals in the industry. Buyers, Sellers and Lenders:
In starting here, remember that using the Internet is not the same as using an Experienced Foreclosure Specialist. It is basically raw data. It is massive amounts of information but without meaningful interpretation. Just as the Internet has websites filled with medical data, it still is not a doctor who knows what to do with the information. It cannot consult, counsel, or advise you. But we can. Our job is to help you have the best experience possible. We will help bring meaning to the data while explaining each step of the process as it applies to you. Foreclosure, Short Sale and REO Specialists! I work in this specialization every day, not just once in a while. As South Florida’s leading Foreclosure Specialist, I will help you with marketing alternatives, buying alternatives, financing, contracts and negotiating advice that you canʹt receive from typical local real estate companies. Most real estate agents really know very little about foreclosures. Some take a one or two day course and call themselves experts. But are they? I have been working in the foreclosure field for over 14 years. And for the past 5 years some 68% of my business has been foreclosure related. In addition, some 98% of the real estate companies are all too often trying to work for more than one party in the same transaction. That means the promise of getting their sellers the highest price and best terms, while promising their buyers the lowest price. On the same property! Thatʹs why leading consumer groups say to use a real estate company that will pick a side and stay on it. I'm on your side!!
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
