Buying Property in Florida

Property market in Florida has reached its lowest point

noreply@blogger.com (A) — Fri, 30 Apr 2010 22:20:00 +0000

That's according to a recent survey of Florida property professionals, says the Miami Herald. However, the same same survey says that the property market isn't looking like picking up any time soon. That's partly down to the fact that the state is facing tough economic conditions and also because banks aren't all that willing to give out loans.

However, one of the reasons of hope for an upturn in the property market is down to those looking to snap up some bargains - including foreign buyers. So, if you're a potential buyer from outside the US, it could be down to you to help out the property market!

Though is the property market really at rock bottom? I'd say that's very hard to call - and I'm sure there have been reports saying the same before. The market has certainly been on a downward slope for a while, so some sort of a recovery does feel due. But we can only wait and see.

Article: Survey: Florida real estate has hit bottom (29th April 2010, Miami Herald)

Demand rises for some Miami condos

noreply@blogger.com (A) — Mon, 26 Apr 2010 18:14:00 +0000

Last week, the New York Times featured a piece about a slight upturn in fortunes for the condo market in Miami - specifically the ever-popular Miami Beach condos.

In particular, the Carribbean complex on Miami Beach (located on Collins Avenue, but in reality slightly north of what would actually be called Miami Beach) had buyers for all of its units - that's 103 of them - last year. Only 14 of these buyers went on to complete/close their sale, with everyone else walking away from their deal, losing their deposits in the process. As such, the developers of the building incurred heavy losses - though another company has now taken over control of the development. Now, at substantially lower prices, units are shifting and then some - only 15 condos remain unsold. Originally, units were being sold for around $1,100 per square foot, but now are going for around $600 per square foot.

Better yet, the majority of purchasers intend to live in the condos themselves, rather than being short-term investors. Such buyers are interested in prime locations such as Miami Beach (especially close to the famous South Beach) rather than other places with a surplus of condo units - such as the downtown area.

It is in this area that a new study, mentioned in the NY Times article, reveals that although 1,000 condo units sold between May and December 2009, most were to investors. Of the 22,000 units built there since 2003, an amazing 7,000 still remain unsold. (Though apparently 700 more have been sold since the study was completed.)

It's the downtown area that, despite a great deal of development and construction over the last decade or so, still is lacking something. The over-construction of these condo units hasn't helped - though some owners are now looking to rent out their properties (with some renters able to get amazing deals on brand new apartments - there's something to think about if you're interesting in renting), which has seen occupation rates in the area rise from 68% to 74%. These new residents have also drawn more retailers to the area, which is helping to establish it and make it more vibrant - and less of a ghost town.

If you're interesting in seeing what a downtown condo development looks like, take a look at the famous Icon Brickell, which is mentioned in the article. Made up of two buildings, plus a third residence/hotel, there's a whopping 1,646 units here - though only 125 units had sold by the end of 2009, with a further 199 sold this year, according to the New York Times. Some units have apparently been snapped up for less than $300 per square foot, which I can't imagine is what the developer had in mind.

The article mentions that condo prices in Miami Dade county have fallen by 51% from 2007, when the median price of a unit stood at $275,000. Though units are being snapped up, as described in the article, the concern is that once prices do start rising to any considerable extent, units owned by investors may flood the market - keeping prices low. It may be a while until the market fully recovers.

Though once again, if it is a bargain that you're after...now may be the perfect opportunity to snap something up.

Article: In Miami, Condo Sales Rise as Prices Bottom Out (20th April 2010, The New York Times)

Brits in Florida going through tough times

noreply@blogger.com (A) — Sun, 14 Mar 2010 12:36:00 +0000

This week's Guardian featured an article on Brits who own a property in Florida - whether an actual home or merely a holiday home - and the rather serious problems that some of them are facing.

Florida is of course a major destination for Brits, whether it's to holiday in or to live; the article states that around 400,000 Brits live in the state, whilst 1.5 million visit annually. But like their American counterparts, British property owners will also have suffered with the recent property collapse in the US which has seen the value of houses and condos plummet. From 2006 to 2009, the Florida Association of Realtors states that the average price of a property in the Sunshine State has fallen by 43% - from $248,300 to $142,000.

The biggest issue is for those that took out mortgages to fund their purchases. Having once acquired loans easily from banks such as Lloyds TSB or Bank of America (back in the good - or bad - old days when they were much easier to come by and at more than favourable rates), some owners are now finding that their mortgages are far higher than the value of their property.

This is even leaving some to completely abandon their property and head back home, despite owning money. As Patricia Kawaja, founder of the Florida Association of British Businessess says "there's no extradition treaty for people unable to pay their mortgages" so it's the best option for some.

So, what's the good news? Well, for those looking to buy at the moment, low prices (and a glut of foreclosed homes) means there's plenty of bargains out there for all types of properties - one Orlando agent mentioned in the article has a 5-bedroom house on offer for just $118,000. There's understandably less demand, so any potential purchasers have less competition from other buyers.

And, once again, the new Harry Potter theme park in Orlando is mentioned as an additional draw. Sure, it may bring back more visitors but I'm still doubtful on the connection with the property market!

Article: Hard times for British expats in the Florida sun (8th March 2010, The Guardian)

Time to swoop in the Sunshine State

noreply@blogger.com (A) — Sun, 28 Feb 2010 17:25:00 +0000

Today's Sunday Times features an article on property in Florida - and how, after falling out of favour with British buyers in the last few years, many may be returning to snap up some bargains.

Low prices added with the expectation that the Pound is due to fall further against the Dollar means that the Times recommends that now may well be a perfect time to consider buying in Florida.

The article also mentions that the large number of foreclosures have seen the supply of properties rise sharply in the last couple of years. It states that such properties can be obtained for ridiculously low prices - a condo could be purchased for a mere $15,000, whilst some auctions start off at only 1 cent - but such "bargains" actually have a whole host of problems. If the property isn't suffering from a state of disrepair - not unlikely, if they have been foreclosed - then it's most likely to be in a development with problems or an undesirable neighbourhood.

(However - to be clear - I'm only talking about very cheap properties. Other, more sensibly priced houses or flats that have fallen to foreclosure may actually be very good bargains.)

The article also highlights areas potential buyers may want to look into. It states that the western side of Florida is more relaxed, with subtropical weather, whilst the eastern side - basically, it talks about Miami - is more lively. And then of course, there's always Orlando which it also mentions.

Other useful tips the article mentions that may be helpful to those looking to buy:

Mid-range, single-family properties (basically houses) are considered a better buy as they're more in demand, so will have a better resale value (although I would suggest this really depends on the area - I can't imagine that condos in the southeast Florida/Miami area are ever out of fashion)
Always search for properties in person, don't try and buy having only seen online (couldn't agree more - at the very least, you'll have fun viewing properties in the sun!)
A property in a gated development will be more secure, of interest if you're not there year-round
Obtaining a Dollar mortgage will mean you're liable to exchange rate fluctuations - your monthly payments may suddenly increase a fair amount as the $-£ exchange rate varies
Don't forget that - whatever the property is - you'll have to pay an annual property tax; on some properties (condos) you'll also have monthly maintenance fees which may be hefty
If you're planning on renting out your property to holidaymakers or others, make sure there are no restrictions (from the condo association, for example) that apply

The article also gives some examples of properties on the market right now in various parts of Florida. Overall, it's a pretty good piece that will help you if you're just starting your search for a property in Florida!

Article: Florida: a mix of different personalities (28th February, The Sunday Times)

The wrong kind of foreclosure

noreply@blogger.com (A) — Sat, 27 Feb 2010 17:35:00 +0000

Now, here's a weird one. Having a property go into foreclosure - when the owners have paid for it in cash.

That's exactly what happened to a Massachusetts couple who own a house in Florida, bought using their life savings as an investment and for their future retirement. Earlier this month, the St Petersburg Times reported on the rather-harrowing struggle they faced in trying to rectify the situation and take back what's rightly theirs.

The couple bought a 3-bedroom house in Spring Hill (on the western side of Florida, north of Tampa) for $139,000 in 2005. They had been renting the property out when their tenant called them last summer, notifying them that representatives from the Bank of America were there to change the locks. The owner, Charlie Cardoso, spoke to the Bank of America - telling them they had the wrong house - and believed the problem had been fixed, thinking no more of the matter.

But that wasn't the end. After a few more interactions at the house from people hired by the Bank of America, a lock box (basically, a strong padlock installed on a door handle to prevent anyone from entering without a specific code or key) was placed on their front door this January. By this time, their tenant had understandably moved out, unnerved by the whole situation.

The problem has arisen because a house on the same street - 10 doors down - is legitimately undergoing foreclosure by the Bank of America. Despite contact from Mr Cardoso and his wife, Bank of America have yet to amend the error involving their house.

The Cardosos have now filed suit against the Bank of America (and its unnamed contractors), seeking unspecified damages. The suit states that the company "company showed negligence, trespassed and caused the couple emotional distress and financial hardship", as well as charging it with defamation and libel - for affecting their standing among the local community, not to mention associating them with foreclosure.

It seems crazy that such a situation has arisen but the same article states that because of the high number of foreclosures that are taking place these days, it less rare than one might think. Nevertheless, you do have to feel very sorry for the Cardosos, who are having to go through all the stress and upset of a foreclosure - even though it's all in error.

Article: Bank of America forecloses on house that couple had paid cash for (12th February 2010, St Petersburg Times)

New Orlando theme park to attract more British buyers?

noreply@blogger.com (A) — Wed, 10 Feb 2010 22:32:00 +0000

Today's London paper The Evening Standard featured a short article on something that might attract some British buyers back to the Sunshine State - the new Harry Potter theme park in Orlando.

I think it's a slightly tenuous link, to be honest - I don't doubt that many millions of visitors each year are drawn to the theme parks of Orlando, but I don't believe it's something to really draw in that many property buyers. Unless, of course, someone's buying with the intention of letting out the property to holidaymakers - but the article never makes any mention of this.

The piece does, however, point out some useful facts. For those that are interested in Orlando and all the delights it has to offer, it states that Sarasota and Tampa, about 2 hours away on the Gulf Coast may be suitable locations to buy in. It also states that the west coast of Florida is less crowded than the east - though I suppose that's not for everyone! Nevertheless, the point is that if buying in either of these locations you'll be close to something (or perhaps even right on, if you're lucky) that Orlando doesn't have - the sea. For me, being on the coast and near beaches wins over Orlando and its theme parks every time.

The Standard article also states that prices are "back up to 2003 levels" which, well, doesn't really mean much. It makes no mention of when prices were at their highest (before the crash, so think 2006) so the fact that property prices are now back to where they were in 2003 isn't all that exciting, nor especially a reason to get a move on and buy before they spiral out of control.

However, it does rightly say that the oversupply of properties is one reason to consider purchasing now - with such strong supply, buyers will be able to take their pick from a selection of good quality stock. As they say, this "puts buyers in the driving seat". It claims vast number of properties on the market caused prices in Florida to fall by between 25-50% (that's quite a huge range, no?) in the last 18 months, and the oversupply will take another year to lessen and disappear, according to one agent in Orlando. Prices have certainly dropped sharply, so this coupled with supply greatly outstripping demand certainly is a reason to consider buying now.

Unfortunately, I couldn't find the article online, but I have essentially covered the main points here!

Note: for those interested in the new theme park, it's called the Wizarding World of Harry Potter and it's opening at Universal Orlando sometime this spring.

How some condo associations in southeast Florida are surviving - and thriving

noreply@blogger.com (A) — Wed, 27 Jan 2010 13:44:00 +0000

I've written in the past about the problems that many condo associations in southeast Florida are facing in the current tough economic climate. With general costs of upkeep (grounds, pool, lifts and so on) increasing, and some condo owners either failing to make their monthly maintenance payments (not to mention those units that may have fallen to foreclosure not being paid for at all), it is no surprise that some are struggling to budget accordingly.

However, the Sun Sentinel recently featured an article that showed that it doesn't always have to be doom and gloom for these associations - in fact, in one particular case, it's just the opposite. The condo association for the Melrose Point at Monarch Lakes development in Miramar (northeast of Miami; east of Hollywood) has managed to cut its cost by $30,000 by either re-negotiating current service contracts, or cutting unnecessary ones completely. They've also done their best to regulate maintenance payments, putting those owners that have fallen behind on payment plans.

The association is now (admittedly, self-nominated) for the Florida Communities of Excellence Awards, for which about 200 associations have been put forward. And they even appear to have a snazzy website (Melrose Point at Monarch Lakes Condominium Association) on which there's a private, residents' only section, as well as a page on which maintenance payments can be made online. How useful is that?

Article: Community associations find ways to thrive (26th January 2010, Sun Sentinel)

Florida, 2nd best place to live in the U.S.

noreply@blogger.com (A) — Thu, 24 Dec 2009 15:56:00 +0000

A couple of days ago, the Guardian reported about a recent study that concluded the happiest - and least happiest - places to live in the United States. In a list of 51 states (the odd number comes from counting the 50 American states plus Washington D.C.), Florida came out as the second happiest place to live in America, behind Louisiana.

Might that have something to do with gorgeous weather and beautiful beaches. Yes, very likely! Imagine spending your winter months with regular trips to the beach, temperatures in the mid twenties celsius, no rain in sight, and a more relaxed pace of life.

Here's a photo of Dania Beach just this December - looks pretty chilled, huh?

Spare a thought for New York, which came out as the least happy place to live. Hey, I never though it was that bad - perhaps New Yorkers just complain more?

With that, I wish all my readers a very Happy Christmas whether you may be!

Article: New York a hell of a place – with the emphasis on hell (22nd December 2009, The Guardian)

Property prices are falling across the U.S.

noreply@blogger.com (A) — Thu, 12 Nov 2009 12:05:00 +0000

Today's Miami Herald reports that property prices in the U.S. are falling as sellers are having to reduce prices in order to make their homes more attractive to buyers.

Information from a recent survey of 3 million homes (no foreclosures where included) shows that, overall, $28.1 million has been slashed from prices across the United States. On average, most homes have seen a reduction of 10% in their sales price, whilst 26% of properties have had at least one reduction.

Meanwhile, sales have increased by 11% as a recent tax credit for first-time buyers has helped demand.

The data provides an interesting insight into those properties that aren't foreclosed, as it essentially shows that ordinary properties for sale are also - for the most part - being reduced in price. As the property market is still rather sluggish, it's particularly necessary if homeowners do genuinely want to sell their property. Having had experience of the (West) London property market, I've seen some properties remain unsold of months - even over a year - as stubborn owners refuse to drop prices, believing their home will be the one to buck the trend, that it will still be bought, regardless of the (high) price.

But there then comes a point where properties remain unsold for so long and, although there's demand, buyers aren't willing to pay over the odds in a market which is struggling. Finally, prices do come down and the property market can start to make recovery - however slowly.

So, this survey is good news, I feel. It's obviously also good news for those of you out there are are considering buying in the U.S.! If you've had a search for American property before, why not take another look and see if prices for the kind of thing you're interested in really have gone down?

Article: Home sellers keep on cutting prices (12th November 2009, Miami Herald)

Foreign buyers prominent in South Florida

noreply@blogger.com (A) — Mon, 02 Nov 2009 15:55:00 +0000

Today's Miami Herald reports foreign buyers in southeast Florida are apparently "dominating" the market. So much so, the article even presents the example of a developer that's started their own mortgage company to help provide loans for foreigners - as they may often find loans hard to come by. Whilst numbers of foreign buyers have actually dropped since the peak years, "foreign sales still outpace the activity of U.S. buyers".

One real estate sales director says:

"International buyers are activating this market and reactivating sales."

whilst the partner of a real estate consultancy claims:

"Investors are aware that assets have never been so depreciated in a country like America."

Foreign buyers are taking advantage of the weak dollar versus their own currency and, in many cases, want to strike as property in the region has never been cheaper. Whereas a few years ago, during the boom in the housing market, many thought they'd never be able to afford purchasing something in southeast Florida, they are now finding that the opposite is true. In some cases even, some buyers are finding property in Florida cheaper than their home country. Depending on their home country, of course; the article suggests this is true for some Latin American countries. It's hard and perhaps not wise to do a comparison with the UK (waterfront condos aren't exactly common in this country), but in many cases, some southeast Florida condos and hosues can seem to be a complete bargain.

Those that already have an interest in the area - perhaps by already owning property there - are also using the current economic conditions to further their investment, perhaps by buying a second (or even third) property. Swiss, Spanish, Italian and English nationals are named in the article as doing this. Overall, any foreign national that's buying at the moment is doing so for a long-term investment, and not to make short term gains.

Overall, southeast Florida is popular with Canadians, Latin Americans (unsurprisingly, the top buyers, making up 52% of foreign buyers) and West Europeans, though Brits seem to prefer the Orlando area, the article claims. That's certainly something that I keep coming across though I'm not sure why that area's preferred with my fellow countrymen and women - why choose theme parks and a slightly tacky setting over a beautiful coastline, gorgeous beaches, and a cosmopolitan city with plenty to see and do?

Article: Foreign investors dominate in South Florida real estate purchases (2nd November 2009, Miami Herald)

Property sales in the U.S. on the up

noreply@blogger.com (A) — Fri, 23 Oct 2009 12:33:00 +0000

Today's Miami Herald reports on a news item covered by a number of newspapers - property sales in America for the month of September are expected to show a better than expected increase, indicating that the property market is strengthening.

A report out today from the National Association of Realtors shows that national property sales rose by 5% during that month. The median price of a sale in the U.S. now stands at $174,900, which is a slight dip from the August figure (of $177,300) but down by 8.5% from the same month the previous year.

At the same time, the number of properties for sale fell (to 3.63 million), also a promising sign; at that level it would take 7.8 months to sell all stock.

This upturn in sales is most prevalent in areas and cities in the western U.S. (which saw sales rise by 13% from August to September), such as Los Angeles, San Diego and Las Vegas.

This increase in sales is down to low priced, foreclosed homes; attractive current mortgage rates; and a tax credit for first time buyers allowing them up to 10% off the purchase price (up to $8,000). This credit expires in November, which may be prompting a rush to purchase property before then, though the credit may possibly be extended beyond Novemberto help the property market to recover further.

So what does this mean for foreign buyers? Well, this upturn in sales means that supply will start to contract - not a pressing issue right now, but as more and more buyers enter the market, desireable properties will be snapped up more quickly. If you are seriously considering buying in Florida or the U.S., it will also mean that you'll be up against more competition. Finally, a rise in the number of properties being sold is likely to eventually cause a sharper rise in prices - so you may want to take the plunge sooner rather than later.

Article: Home sales rise 9.4 pct in Sept., beats forecast (23rd October 2009, Miami Herald)

Property flippers are back in south Florida

noreply@blogger.com (A) — Thu, 08 Oct 2009 11:42:00 +0000

Today's Miami Herald reports on something that might make you think the property market in south Florida is on the up (or thereabouts) - namely, that property flippers are returning. The same people who were operating in full force prior to the property market collapase almost entirely disappeared as property prices kept plunging lower and lower, deterred by the not being able to make their previously very healthy profits.

Now, they're being enticed back by low prices, especially on foreclosed homes. They buy such properties - many of which may be in some state of disrepair, or have other associated costs (usually unpaid taxes) - to do up and sell on, or rent for the short term for selling.

The main point is that the properties they are buying often need a considerable amount of work - new roofs, structural repairs - rather than undergoing a simple refurbishment job as may have been the case before. Not matter how how cheap such houses are, "ordinary" buyers may well be put off by the possibility of having to fork out additional considerable sums to do up their homes.

The downside, however, is that the re-emergence of property flippers means that ordinary home-buyers now have more competition in their search for a purchase - buyers who would normally require a mortgage, so are already at a disadvantage to property flippers or investors with ready cash.

Overall, the fact that property flippers have returned may - in some ways - be promising for the south Florida property market. Though their re-emergence may worry some people, who believe that they may eventually cause prices to rise rapidly to rather ridiculous levels, surely the fact that they are willing to start buying and selling in the south Florida property market means that it is becoming that little bit more healthy.

Moreover, if they are willing and able to do up the worst quality foreclosed properties, it is only a good thing.

Article: Real-estate flippers back in S. Florida (8th October 2009, Miami Herald)

Recession ending in Florida?

noreply@blogger.com (A) — Wed, 30 Sep 2009 19:53:00 +0000

As the third quarter of the year draws to a close today, you may well have been cheered by news that the recession in your home country (or region, I suppose) is "over". Well, maybe. (At least, that's what I got this morning from a paper in the UK).

Today, the Miami Herald also claims that the recession in Florida may be coming to an end, according to a couple of important factors - consumer confidence and the house prices.

According to the Case-Shiller home price index, property prices increased for the second month in a row, as figures for July were released. Though the increase was small - only 1.2% - it's an increase nevertheless and modest price rises are clearly the way forward as the economy (hopefully!) recovers. Nevertheless, the index shows that prices are still far below the same period last year - by 21%.

Meanwhile, the Florida Association of Realtors shows that median prices in Miami rose by 1% from July to August, though prices decreased by 1% for Broward county. The median property price for these two counties now lies at $194,800 and $217,000 respectively. This small increase and small decrease for the two counties would suggest that prices are reaching their lowest point. The only major factor that would cause prices to significantly drop again would be a large amount of supply flooding the market, and we're hoping seeing these days behind us as well.

Moving on to the consumer confidence, a University of Florida report shows that this rose 3 points in September to 74, following on from a four-point increase for August.

Overall, the increase in property prices and in consumer confidence in Florida points to a recovery in the economy. If you're interested in purchasing property there in the near future, you may well want to start the ball rolling now whilst there's plenty of supply and before the market recovers too much!

Article: Signs point to recession's easing in Florida (30th September 2009, Miami Herald)

Condo boom - of sorts - in downtown Miami

noreply@blogger.com (A) — Thu, 17 Sep 2009 09:25:00 +0000

A recent article in the Miami Herald showed how sales of condominiums in downtown Miami - around the Brickell Avenue area - are rocketing...all because prices have finally come down to a level that is now attractive to many buyers.

After a lull following the collapse of the property market which saw many condo units remain unsold, and developers struggling to offload them (with some opting to rent them out instead) some building developments are seeing units fly off the shelf. Desperate to sell these condos, and needing to pay back their construction loans as well as trying to avoid bankruptcy, developers are - almost - taking what they can get. Some lenders are even allowing developers to sell for less than cost purely so they can get what's owed back.

Some of the developments mentioned in the article include 500 Brickell (which has an amazingly annoying website, I might add), Brickell on the River South, The Ivy and 1060 Brickell.

Many of those that are snapping up these units are foreign buyers; at 1060 Brickell it is estimated that about 80% of purchasers are from abroad. A huge 98% of these people had purchased with cash - not so surprising given the difficulty in obtaining suitable loans and mortgages these days. These buyers are investing in these condos as holiday homes for themselves or to rent them out, and aren't baulking at the idea of holding onto them until the market and prices rise again - which might be three years away.

Because interest and demand has increased so dramatically for these units - and because there's such a wealth of supply - there's unlikely to be a rise in prices any time soon. Whilst this is good news for buyers - pay attention, buyers! - those property owners looking or needing to sell in the near future may not be able to. Or, at least, not for price that's reasonable to them.

Whilst the increase in the number of units being sold is good news for the moment, the amount of cash-ready buyers will run out at some point. It will be then that condo units will need to be available at prices that are within reach for those that need mortgages to fund their purchase.

So, if you're after a smart new Miami condo and have funds in place, be sure to check out some of these developments. You may find a complete bargain.

Article: Downtown Miami enjoys mini-boom over cut-price condos (4th September 2009, Miami Herald)

Sales up and prices down in Florida

noreply@blogger.com (A) — Thu, 13 Aug 2009 09:50:00 +0000

Here's a topic covered in many Florida - and nationwide - newspapers today as figures for the second quarter of 2009 were revealed. They show that in the period ending 30th June, house sales in Florida rose by a impressive 23% compared to the same period last year. Sounds promising, but it's tempered somewhat by the accompanying news that median prices fell 29% during that quarter and now stand at $143,600. For condos, sales rose by 29%, whilst median prices fell even greater - by 38% - to $111,100.

Across various regions of Florida, sales increased by healthy margins whilst prices tumbled. The Fort Myers region saw the highest increase in sales, with numbers there almost doubling, whilst prices fell by over 50%. Part of the reason for such a high increase in sales is the current large supply of properties attributed to over-building prior to the property crash.

The area to post the second highest rise in sales was Miami, which saw a 73% increase, whilst median prices fell by over 30% to $195,000.

The greatest reason for these falling and currently low prices is the large number of foreclosed properties being sold this year, which are pushing prices right down.

Other areas to show increases in property sales for the second quarter of 2009 include Orlando, Tampa and Jacksonville.

As a comparison, sales for the US as a whole fell by 2.9% for the period, but still stand in good stead for the year.

So, it seems that there's a healthy amount of demand out there. Prices may continue to fall, but low-priced foreclosure properties are a large factor as to why median prices are so low out now. If you're looking for a Florida property, you might consider waiting further to hope that prices fall even more - but I get the impression there won't be many more large price drops. Moreover, make sure you don't leave it too late to snap up the property that you actually really want - it may already gone!

Article: Florida Home Sales Up 23 Percent in Second Quarter (13th August 2009, The Jacksonville Observer)

Brand new high-end homes in Orlando difficult to shift

noreply@blogger.com (A) — Wed, 12 Aug 2009 15:09:00 +0000

Here's a piece from the Orlando Sentinel from a few days ago on properties at the higher end of the scale - in the $1.2 million to $4 million range, to be precise. Sure, it's not exactly the budget of many looking to buy in Florida, it's still interesting to see the issues facing more expensive houses in Florida.

Throughout the article, the properties are referred to as "custom-built", which I assume to mean that they're specifically crafted with their own interiors and fixtures and fittings - as opposed to those lots of houses and flats that are all built identical.

Let's look at some of the statistics. Currently, such homes are taking on average a year to shift. Demand has tumbled dramatically: 66 houses were sold in the first six months of this year, whereas 256 were sold in the same period in 2006. And prices have been slashed considerably; in some cases by up to 50%.

Previously, such houses sold easily, with many selling as soon as they were finish. Nowadays, many languish untouched for months with little interest in them, whilst the construction companies behind them must pay for their upkeep, taxes and other expenses.

Article: Unsold Central Florida mansions bedevil builders (6th August 2009, The Orlando Sentinel)

Check your neighbours - and that you have them - before you buy

noreply@blogger.com (A) — Mon, 10 Aug 2009 12:06:00 +0000

Another article from The Guardian last week told of the plight of a retired man who bought a Florida condo last November - and who now finds himself the only resident in the building. Victor Vangelakos's situation might not be so bad if the residence in question was a small build, but he in fact lives in a 32 storey building containing 200 units. It must get a little lonely.

Purchasers for other condo units in the building did exist, but either pulled out or failed to get a mortgage. Some others have also been moved to a less fancy building next door which Vangelakos tried to do as well, but was prevented by his mortgage lender.

So he and his family now find themselves all alone in the building. The plus side is that they have sole use of the pool, gym and clubhouse.

Rather creepily, however, they admit to hearing strange noises at night sometimes and once "someone pounded on their door at 11pm".

Article: Marooned family live all alone in 32-storey apartment block (6th August 2009, The Guardian)

Florida property attractive to Brits once more

noreply@blogger.com (A) — Fri, 07 Aug 2009 10:50:00 +0000

Last Saturday’s Guardian newspaper featured an article on buying property in Florida and covered some of the reasons why Brits are looking to take the plunge now and grab themselves a holiday home in the Sunshine State.

As the Pound improves against the Dollar, many think that the present may be the best time to buy property in Florida, especially as prices have fallen so substantially and still remain low. Although there might not be many indications of prices rising in the near future, the idea of grabbing a bargain before it’s too late – meaning, before prices rise, whenever that may be – is key. Likewise, there may be many attractive bargains out there at the moment, but as more people snap them up there will be fewer and fewer attractive options for those looking to buy.

The article also mentions the ingenious foreclosure bus tours, which ferry people around numerous foreclosed properties in one day. The paper points out that these tours can be very valuable to foreign buyers, as not only can they easily see a number of properties in a short space of time, but the companies running such tours can guide them through the sometimes difficult process of buying property in Florida.

Also highlighted were the types of properties that can be found in three different areas of Florida – the Gulf Coast (near Tampa, specifically in Naples); the Atlantic Coast (Jacksonville, in the very north of Florida, near the state line); and in Central Florida (Orlando). Slightly strange that they chose not to feature anything in or near Miami, a place that surely must be a big draw for Brits!

Article: Florida: Bagging a bargain property in the sunshine state (1st August 2009, The Guardian)

Property market in the Sarasota area shows signs of stabilising

noreply@blogger.com (A) — Thu, 30 Jul 2009 10:54:00 +0000

Let's take a look at a different area in Florida rather than our usual focus on the southeast for a moment - the Sarasota-Brandenton market, which is near Tampa.

The local newspaper for the region, The Sarasota Herald Tribune, today reports some slightly encouraging news for the property market there. Although home sales continue to struggle, average prices have increased after falling steadily since September 2008 and reaching a low in February this year. The average price of a property now stands at $162,700.

The supply of new homes has fallen by 32% for the year ending this June. Meanwhile, new construction has also slowed by 42% in the same year period.

However, the amount of properties being sold has fallen, the research shows. The number of houses sold has fallen from 4,269 for the first six months of 2008 to 4,060 for the first six months of this year.

Generally, all of this amounts to signs of a slow recovery - at the moment, at least - in the property market in the region, as prices rise whilst supply falls. However, the overall conclusion is that these small rises and falls in the various factors make it difficult to fully predict when a proper recovery will swing into action. Right now, it is thought that this will not occur before 2010.

Article: Research finds local housing market still struggling, but starting to stabilize (30th July 2009, Sarasota Herald Tribune)

New home construction slow in southeast Florida

noreply@blogger.com (A) — Thu, 30 Jul 2009 10:17:00 +0000

Yesterday's Miami Herald reports that numbers of new houses and condos being constructed during is levelling out for the second quarter of 2009 - which is good news, in all honesty! With high numbers of newly constucted units still to be sold, and more supply coming onto the market in terms of foreclosures, southeast Florida certainly doesn't need more houses and condos in this troubled property market.

To highlight this point, the Herald article states that at the moment, 1,022 new condo units remain empty in Broward, whilst a pretty staggering 10,685 remain empty in Dade.

In Dade county meanwhile, only 7 houses began construction during this period, whilst 27 condos (all in the same development) were starting to be built. For Broward, these figures stood at 78 houses but absolutely no condo units.

As mentioned in the article, however, part of the reason for this downturn in new construction is that developers are simply finding it tricky to get financing for new projects.

Article: Home building remains flat in South Florida (29th July 2009, Miami Herald)

Number of foreclosures filings in southeast Florida falls

noreply@blogger.com (A) — Thu, 23 Jul 2009 11:38:00 +0000

The Miami Herald last week featured an article on a report that shows some encouraging news for the property market in the region. From the month of May to June, the number of properties being filed for foreclosure in southeast Florida fell by a rather staggering 50%, on average; specific figures for the local counties are 40% in Dade and 60% for Broward. Meanwhile, across the United States, the number of foreclosures for the same period fell by 19%.

What these findings actually mean is difficult to say as the newspaper points out; such a drop is encouraging but many other factors to do with foreclosures or properties taken over by banks and then sold on need to be considered as well.

It really seems to be a case of wait and see. This news may be good, but let's see what happens next.

Article: South Florida foreclosure filings fall by half (17th July 2009, Miami Herald)

South Florida property market looking up?

noreply@blogger.com (A) — Mon, 06 Jul 2009 11:32:00 +0000

The Miami Herald featured an article a couple of weeks ago (my apologies for not getting round to blogging about it sooner!) about a possible ray of sunshine emerging from the clouds for the South Florida property market. A couple of recent factors indicate that the market may be very close to recovery mode and subsequently on the up.

Recent figures show that the number of properties sold is increasing (the ninth such month on month increase) which is good news - despite the underlying reason for this increase not exactly being ideal.

And what is that "underlying reason"? Well, the increase in the number of properties sold is actually being driven by current low prices and what is termed "distressed sales" - i.e. sales of foreclosed properties or short-sales. (Where the property is sold for less than the amount owed on it.)

To give you an idea of the level of the market - sales of houses increased by 76% for Dade county and 47% for Broward; the condos, sales increased 36% in Dade and 25% in Broward. However, as much as 60% of all these properties sold were "distressed sales".

This increase in sales (which, in turn, is eating up some of the current oversupply of properties) isn't yet causing any substantial effect on prices - a comparison of median prices from last year to this still shows a large fall. However, month to month figures which show a small up and down fluctuation each month indicate that price falls may be slowing...which would turn into a price rise at some point. The main problem is the difficulty in predicting when exactly this "at some point" will happen.

The article finishes by saying the condo sales may not recover as quickly as house sales. The vast number of condo developments that were built in recent years means that there's a huge oversupply supply - the article mentions that by the end of this year, developers in just downtown Miami will still be holding 10,000 unsold units.

Article: Is the worst over for South Florida housing market? (24th June 2009, Miami Herald)

What kind of house in Florida can you get for $10, $50 or $100?!

noreply@blogger.com (A) — Tue, 23 Jun 2009 11:12:00 +0000

It seems that interest in property competitions - or raffles, or whatever you may call them - is growing, perhaps not unsurprisingly! If the fee for entering the competition is relatively low (say, $50 or below) whilst the prize - a property often worth several millions of dollars - is high, it does seem worthwhile to take a chance.

Moreover, the majority of these raffles restrict the number of entrants (usually to the point where revenue from ticket sales equals the value of the house). The odds of winning the competition are probably higher then winning the lottery for example - and think of the amount of money people spend playing that week-in, week-out.

For example, I previously blogged about a house in Fort Lauderdale that was up for offer in one such competition. All entrants have to pay a fee of $10 to enter, and the homeowners hope that they will sell 300,000 tickets. The house in question is a rather palatial 6 bedroom waterfront home, bought for $2.35 million in 2005. I think I could manage $10 to be in with a chance of becoming the owner of such a sumptious, million-dollar property! (One would assume that the house is isn't quite worth the same now, due to the property slump...but let's gloss over that for once, shall we?) The competition is currently still running.

This isn't the first example of a competition being used to sell a home. In a slightly different vein, last year I also blogged about a lady in Northern Florida who was giving away her $1.25 million house in Ocala to the winner of a competition in which entrants would have to write a short essay about their pet. I can't, however, find out the result of the competition and whether the house was actually won by someone.

So, what other property raffles and competitions are currently or were recently run in Florida - and what is or was the prize? Here's a few examples:

A Coral Springs house for $50 - a 2,164 square foot, two-floor, three bedroom house that was built in 2005. I'm sold by the his 'n' hers walk-in closets in the master bedroom - which of course would be two walk-in closets for me! The competition is still running.

Here's a Miami Beach condo for $100. The one bedroom, 850 square foot modern condo overlooks Biscayne Bay. The raffle actually closed only 9 days ago - the winner received a cash prize of 50% of the net proceeds (which equalled $30,850) as not enough tickets were sold for the condo to be won. Just doing some rough maths, it seems the number of entrants fell far, far short of the anticipated 5,000 entrants. Nevertheless, the winner still received a rather substantial sum, with the same amount raised for the chosen charity.

These competitions don't just occur in Florida. In fact, let's take a look at one that was run a little closer to home. Here's a £1 million house in Devon, UK with 11 acres of grounds, plus lodges and a lake that was won in a competition last autumn in which 46,000 entered. (Each ticket cost £25.)

The main issue with property raffles and competitions is that they never quite seem to attract the number of entries that's hoped for - and the property in question often doesn't actually get "won". Sure, a considerable amount of interest in generated, and a winner selected does normally win some sort of (cash) prize...but the actual idea of raffling off a property rarely really works.

Condo developments - what's happening to them in the downturn?

noreply@blogger.com (A) — Sun, 21 Jun 2009 15:18:00 +0000

The Broward-Palm Beach version of the excellent local free newspaper in southeast Florida, The New Times, this week featured an article showing examples of a number of specific condominium developments in the counties that were built since 2003, and the fate they have suffered in the economic downturn and property collapse in the area.

Condo developments are currently suffering a variety of problems - mainly because so many were built in the last five or so years, and the sluggish economy means that now there just aren't the people to buy them. To give you an idea, Miami-Dade county saw a whopping 23,000 condos built since 2003; Broward and Palm Beach counties together didn't quite reach that figure, although still managed a staggeringly high 18,000.

The developments mentioned in the article are Tao Sawgrass in Sunrise, Broward (near Sawgrass Mills mega-mall) which apparently has not a single resident (some units have been bought, but most likely by investors intending to flip units); CityPlace in West Palm Beach, which has very few residents; and the Villa Medici in Fort Lauderdale, which has suffered from crime in the recent past.

The article also mentions the Radius development in downtown Hollywood. As stated in the article, this development had its moment of fame a few years back when hundreds of people were queuing up outside, so keen were they to buy units. Although suffering from some issues - such as residents having to pay higher monthly maintenance fees (to balance out the lack of fees received from unsold and unoccupied units), and complaints about the quality of finish - the development is reasonably successful, with about 85% of units sold. (Only about 64% are occupied, however.) Part of the Radius's "success" is down to the fact that the developers are now willing to sell units for much discounted prices and are also moving away from their original vision of selling to sophisticated, up-market, young buyers. Of course, the Radius development is also in an area that has been much regenerated - Young Circle now features a delightful little park, and some of the surrounding streets have had new restaurants, bars and shops in the last few years.

In some other cases, however, developers were expecting that once they had started or completed construction of their developments, others would follow suit to revitalise the surrounding areas. This was often not the case, meaning that completed condo developments now find themselves in less than favourable areas.

One property analyst, Jack McCabe, believes that it will be another year before prices bottom out, whilst a full five years before condo developments have more occupied units than vacant ones. As mentioned in previous blog posts, one group of home occupiers - renters - will benefit at the moment as condo owners decide to temporarily (even for a few years) rent out their smart units and wait for the market to recover. Renters now find themselves being able to afford living in apartments or areas that were previously too expensive.

Those that desperately need to sell, however, will most likely need to take a hit on their asking price, or may even slide into foreclosure. Meanwhile, residents of these (not even) half filled condo blocks are also suffering. They face living in deserted developments, in some cases in areas that aren't especially desirable, whilst not all facilities are being kept to proper standards, yet paying over the odds in maintenance fees.

Article: South Florida's Housing Crisis Leaves Behind Ghost Towers (17th June 2009, Broward-Palm Beach New Times)

New Times Best Of...

noreply@blogger.com (A) — Thu, 11 Jun 2009 17:14:00 +0000

The free alternative newspapers New Times Broward-Palm Beach and Miami New Times today published their annual "Best Of..." lists and, once again, they're well worth a look! In keeping with the slightly off-the-wall style of the newspapers, the lists compile everything from the best places to eat, drink, hang out and shop to "Best Drag Queen"; "Best Place For A First Date"; "Best Weathercaster"; and "Best Female Bodybuilder".

I always love these lists each year, and learn so much about the southeast Florida area from them. They've also helped me uncover some hidden gems - only last year did I discover, after reading about the place in the New Times, how delicious the burritos at Zona Fresca are.

And the lists are wildly funny to boot!

Take a look here: