HousingBath.com - The Daily Pulse of the Florida Housing Market

Leaving Florida...

noreply@blogger.com (3lb) — Tue, 18 Aug 2009 02:34:00 +0000

Florida's population falls for the first time in 63 years

For as long as many of us Floridians can remember, we have been reminded by politicians, trivia buffs, realtors and even the DMV that 1,000 people a day move to Florida. And depending on the source of that reminder, its utterance was often meant to reinforce a.) how fortunate we are to be living in a place where others continue to flock daily, b.) why a businesses could justify relocating to the Sunshine State to serve a booming population, or c.) how the constant influx of warm bodies would only push housing demand and median home prices higher. Now University of Florida researchers are painting a clearer, less rosy picture of state migration patterns. In other words, if 1,000 people a day are still moving to Florida, apparently 1,159 are leaving. Not surprisingly, the report says the recession, plunging tax revenue and rising unemployment are all to blame.

Feedback: Did you recently leave Florida or are you contemplating a move contingent on another major life event (ie, selling your home, losing your job). If you already left, where did you move and how are things going?

Amazon Bottom Feeders In Palm Beach

noreply@blogger.com (3lb) — Sat, 15 Aug 2009 15:26:00 +0000

Janitor Fish Now Cleaning Pools in Abandoned Homes

When a Palm Beach community was looking for a low cost, chemical-free solution to combat the blooming algae in their abandoned pools, they turned to the University of Florida's agriculture scientists who in turn recommended a fish farm in Bartow raising several species of Amazonian catfish. The aptly named janitor fish are now working overtime in pools throughout Wellington, and the reviews are positive. At $15 per fish, the community is paying $700/year to stock and treat their abandoned pools, just a tenth of the estimated $7,000 that chlorine treatment would cost. Dave Hoy, the owner of the Bartow farm that raises the fish, explained how he motivates his Brazilian pool cleaners: "They're good janitors," drawled Hoy, "but I still give them a stern talking to before putting them to work."

Short Sale of the Day

noreply@blogger.com (3lb) — Sun, 09 Aug 2009 17:07:00 +0000

7431 SW 187th Street, Miami 33157

While most of the SSOTD's on HousingBath are active listings, here is one that recently closed in Miami-Dade. This 5 bedroom/4 bathroom, 4,600 square foot home is located in Culter Cay in South Miami and sits on a 16,000 square foot lot. The home was originally purchased in 2006 for $800,000 and just sold in June for $330,000. Completed short sales like this should give some encouragement to buyers who are trolling for bargains and sellers who are looking for a better alternative to foreclosure. Yesterday the Sun-Sentinel said only 20% of short sale transactions ever come to fruition, but follow their advice and be patient, be persistent, and work with real estate agents/attorneys who have already closed a few short sale deals.

The House Whisperer

noreply@blogger.com (3lb) — Sun, 09 Aug 2009 11:56:00 +0000

Business Is Booming For Abandoned Home Clean-up King

Fourteen months ago Nick Hazel was a cable installer in Central Florida. Business was bad and subscribers were dropping like flies in the wake of the sub-prime meltdown. So Hazel decided to retool his business model and pursue an occupation with unlimited upside potential: abandoned home trash-outs and inspections. Hazel makes this analogy to describe his new gig, "It's like I'm a dentist," he says. "Nobody likes to see me. But when a house's teeth go bad, who else is going to clean out the rot?" Having now trashed out hundreds of Florida homes, Hazel says he's amazed by two categories of debris: a.) the things people rip out: "a dining room ceiling, the ceramic floor tiles of a den, a bedroom's wall-to-wall carpet; granite countertops, faucet taps, bath tubs, food-waste disposers, decorative columns, crown moldings, door jams", and b.) the things they leave behind: "Christmas toys, silverware, Tupperware, false teeth, hairpieces, condoms, baby strollers, dried blood, dead cats and live Dobermans." (Story)

Florida Flipper Redux

noreply@blogger.com (3lb) — Sat, 08 Aug 2009 17:32:00 +0000

"I love the smell of cat urine in the morning. It smells like...victory."

Exactly four years ago, the Palm Beach Post's Jeff Ostrowski penned a cautionary tale about real estate speculators and warned, "One-third of Palm Beach County's housing market is fueled by investors and second-home buyers — a trend some say can't last." Umm, it didn't, but some Floridians in Broward and Palm Beach County won't let the real estate apocalypse of the past four years deter their conviction that distressed properties--especially in low income neighborhoods--are still a great short-term investment. Eight anxious flippers climb aboard the Foreclosure Express and discover a rainbow of Florida flip fruit flavors: orange eviction signs, blue flapping tarps, gold-painted fireplaces and brown ceiling spots. But unlike 2005, this time the flippers are well-financed and much more risk averse. For instance, one mother-daughter team living on Social Security checks, articulate their in-depth analysis for a successful flip: "When you smell mold or something like cat urine, it means you can make money from the property."

Party Animals

noreply@blogger.com (3lb) — Fri, 07 Aug 2009 19:03:00 +0000

The Misadventures of Crazy Cliff, Kaptain Keith & Porno Kitty

Full Moon? Oppressive Heat? Hurricanes on the Horizon? What is it about Florida in August that makes some homeowners do and say the craziest things? Submitted for your consideration, one Clifford Burk and one Keith Griffin. Burk was allegedly hanging in his Bonita Springs crib when he decided to answer his door nekkid and invite teenagers in for "some fun." The girls, their parents and sheriff's deputies were not amused. Equally baffling is the East Coast tale of Jensen Beach resident Keith Griffin who was charged Wednesday with downloading thousands of underage pornographic images to his computer. When pressured by local authorities as to their motives, both men offered reasonable responses. Regarding the teenage girls Burk said, “At least I didn’t kill them," and regarding the porn downloads Griffin said, "My cat did it."

"Furnished But Empty"

noreply@blogger.com (3lb) — Fri, 07 Aug 2009 18:37:00 +0000

Fort Lauderdale Condo Part of Chicago Bank's Troubled Portfolio

The News-Press drew national attention last week with this story about a New Jersey firefighter living alone in a downtown Fort Myers. That Related condo looks crowded relative to the new Trump International Hotel & Tower in Fort Lauderdale. According to the Sun-Sentinel, "the 24-story, 298-unit oceanfront hotel condo had deposits on 70% of its units, but after the bust of the real estate market, the buyers either walked away or filed lawsuits against the building that has yet to open." Chicago-based Corus Bankshares financed the Trump project and 33 other projects in South Florida. Loans on 12 of those projects are over 90 days past due and account for roughly half of Corus' $2 billion in non-performing loans.

Drywall Dilemma = Cash for 干壁

noreply@blogger.com (3lb) — Fri, 07 Aug 2009 17:52:00 +0000

Couple Actually Ponders Ruining Their Son Versus Their Credit Score

The Wall Street Journal's M.P. McQueen travels to Cape Coral to find the Chinese drywall poster family: Keith and Denise Cramer and their son Gavin. The situation is serious and--as if owning a home today in Florida isn't bad enough--the added inconvenience of living in a sulfur-emitting, copper-corroding cocoon would be downright unbearable. But the faux dilemma here is as absurd as the title of the article, The Prisoners of Drywall. McQueen writes, "The Cramers say if government tests conclude the Chinese drywall is a health hazard, they will be left with a difficult choice: 'We will have to either ruin our son’s life by staying, or ruin our credit by walking away from the home.'" That anyone would even consider staying in a home designated as a toxic mess is simply ludicrous. Plus the federal government will probably just roll out a Cash for Clunkers equivalent for these unlucky homeowners. Call it Cash for 干壁.

Beat the Neighbors

noreply@blogger.com (3lb) — Mon, 03 Aug 2009 17:02:00 +0000

Section 8 Residents Not Exactly Blending In Gated Community

Keith DiLisio paid $250,000 for his condo unit at the Sonoma Bay community in Rivera Beach; some of his neighbors paid well over $300,000. Back during the boom, Cornerstone Builders enticed potential buyers with "resort-style living with amenities such as a gated entrance, clubhouse, barbecue and picnic area." Now add "fighting pit bulls" and "parking lot assaults" to the list of lifestyle amenities at Sonoma Bay thanks to the City of Riviera Beach's subsidized Section 8 rental program. Despite the community outrage, Riviera Beach Mayor Thomas Masters says he has gathered extensive polling data that lets him sleep at night: "You have to ask those people, 'Do you feel safe here?'. They're still here. I tell people, 'Hey, if it's good enough and you're still here, then that tells me you're comfortable and you feel safe." Of course it's "good enough" for the Section 8 residents. And as for the original buyers, they're "still there" because their units are now worth 20% of what they paid four years ago. DiLisio estimates his unit is worth $50,000 today. (WBPF Video)

A Miami Fairy Tale: $2 Million Price Cuts

noreply@blogger.com (3lb) — Sat, 01 Aug 2009 17:35:00 +0000

"Ultra Luxury" Video Tour Gives Hope to The Commoners

The economy sucks, unemployment is rising, and you still can't sell your condo. What would make you feel better about your situation and the plight of the common man in Florida today? Try this video tour of a $22 million waterfront mansion in Gables Estates with the homeowner, Jose Garcia, and his realtor, Audrey Ross, who describes the Miami market as "a fairy tale story (where) if you have held for longer than five years, you're probably still making money." The positive market spin is oddly juxtaposed with news that the she just lowered his asking price by $2 million. As for Jose, he takes it all in stride, poses before his art collection and humbly reveals that he is the voice of America: "I am probably an indication of the rest of the people in the country that they're feeling more confident." Rejoice.

"A Pool & A Pond"

noreply@blogger.com (3lb) — Fri, 31 Jul 2009 22:12:00 +0000

Tampa Couple Converts Pool to Pond; Neighbor Complains

In the Florida film classic Caddyshack, Carl Spackler and Ty Webb have this exchange regarding the outdoor amenities over at Ty's place. Sure, a separate pool and pond would be great...but what if you could have both in one delightful backyard setting. Well, in a case of Florida gated community life imitating cinematic art, a Tampa couple have converted their unused backyard pool into a mediation pond teeming with exotic fish and water lilies. And while Barbara and Tom Couture love their new pond, a nosy neighbor (the unofficial Florida state flower) has complained and city officials can't decide whether codes are being violated.

$6,000 Agent

noreply@blogger.com (3lb) — Fri, 31 Jul 2009 21:31:00 +0000

Former "Million Dollar Agent" Now $20 Million In Debt

During the boom, TLC hit a new reality TV low with a show called Million Dollar Agent and introduced the world to Miami real estate broker Carlos Justo. "With his outsized personality, outrageous outfits and boundless in-your-face energy," TLC once gushed, "Carlos is a natural star in the competitive world of real estate." In 2005, Justo's net worth peaked around $20 million, but his investment in the 12 multimillion dollar homes he intended to flip didn't exactly pan out. According to this Miami Herald article, "Justo is $20 million in debt. He is five months into a massive bankruptcy filing. The IRS is after him for $6 million. (Today) he only owns about $6,000 worth of stuff, including furniture, clothing and some Buddhist art."

Loan Mods "R" Us

noreply@blogger.com (3lb) — Thu, 30 Jul 2009 18:08:00 +0000

Are Toddlers To Blame for the Mortgage Meltdown?

If a picture is worth a thousand words, the photo gallery of troubled homeowners on the government's official mortgage relief website speaks volumes about who's to blame for all the bounced checks and late payments on Florida homes. The distressed Orlando couple featured in yesterday's blog post had obviously turned the home finances over to their infant son, Kyle, while the Port St. Lucie woman pictured here has apparently assigned checkwriting duties to her newborn daughter, Hannah. Armed with a shiny green Sharpie, Hannah paid her family's mortgage check to the order of four squiggly lines, some dots and a circle.

Clearwater Condo in Foreclosure

noreply@blogger.com (3lb) — Thu, 30 Jul 2009 17:08:00 +0000

Price Reductions Didn't Help, Lender's Buyout Offer Rejected

A 126-unit mixed use development in Clearwater owned by an Israeli investment group has been foreclosed on by its lender. Property & Building, a subsidiary of Tel Aviv-based IDB Holdings, owned 75% of the Station Square project which was touted in the sales brochure as "a celebration of the coastal urban lifestyle...redefining downtown development in Clearwater." And while one bedroom units were originally priced from $425,000 and two bedrooms from $575,000, 15% price reductions failed to generate much interest. Only 2 Station Square units had been sold according to IDB's first quarter financial report. Foreclosure proceedings were finally triggered when Property & Building rejected the lender's offer to purchase the project--once valued at $64 million--for $25 million.

Home Alone

noreply@blogger.com (3lb) — Thu, 30 Jul 2009 15:43:00 +0000

Related Condo in Fort Myers Has 420 Units, 1 Resident

While state and national media have spent ample ink marveling at the number of empty units in some of Related Group's East Coast projects, today the News-Press interviews the lone resident in the Oasis I condo in downtown Fort Myers: a 45-year-old fire fighter from New Jersey. Victor Vangelakos uses words like "creepy" and "surreal" to describe the empty building and "testy" to describe his current relationship with Related. While Vangelakos paid $430,000 for his Oasis unit, comparable new construction high-rise units in the same area can be found on Trulia for roughly $150,000.

Fees Glorious Fees

noreply@blogger.com (3lb) — Thu, 30 Jul 2009 13:34:00 +0000

More Reasons The Banks Aren't In A Hurry To Modify Your Loan

Two days after Washington officials chastised major lenders and demanded they pick up the pace of mortgage relief for troubled homeowners, the New York Times says the banks have little incentive to walk away from the lucrative fees generated from delinquent loans. Experts say the financial incentives the federal government is offering lenders to modify home loans pale in comparison to the more lucrative process of "collecting fees from delinquency, and then more fees through the sale of homes in foreclosure." The adjacent bar graph shows completed loan modifications (blue line) vs. delinquencies and foreclosures. (Larger Image)

WWJD: What Would Janke Do? Leave.

noreply@blogger.com (3lb) — Wed, 29 Jul 2009 18:00:00 +0000

Fired City Manager & Adult Film Star Wife Say "Adios" to Florida

The City of Fort Myers Beach made national headlines last week when their City Council called an emergency meeting and fired City Manager Scott Janke apparently after learning that Janke's wife, Anabela, is an adult film star. How his spouse's career choice impacted his job performance was never explained and online polls show overwhelming support for Janke. Fresh off their public humiliation at the hands of the family value xenophobes at Mayberry Beach City Hall, AP is reporting the Jankes are joining the nationwide craze and leaving Florida. And with the smut peddlers safely out of Lee County, Fort Myers Beach can finally refocus on the cultural and puritanical pursuits that make this the Holy Land of Southwest Florida.

Obama Mortgage Relief Plan A Bust

noreply@blogger.com (3lb) — Wed, 29 Jul 2009 15:33:00 +0000

Why "Making Home Affordable"...Isn't

Executives from the nation's leading banks were summoned to Capitol Hill yesterday for a spirited session of finger-pointing and bar lowering with officials from HUD and the Treasury. The Obama Administration's $75 billion Making Home Affordable program promised mortagage relief for 3-4 million U.S. homeowners (7-9 million are eligible according to the official website); yet, only 200,000 loans have been modified to date. The day ended with all parties agreeing to try to modify 500,000 mortgages by November. Good luck. When a Kansas City bus driver can't qualify because his income is too high, you can better understand why MHA is being described as "a confusing, bureaucratic nightmare."

Et tu, Countrywide?

noreply@blogger.com (3lb) — Wed, 29 Jul 2009 14:20:00 +0000

Failed Lender Comes Up Short On Florida Loan Modifications

Former mortgage lending giant Countrywide (now a shell-of-its-former-self-merged-entity of Bank of America) hasn't exactly delivered on the $1 billion promise it made to the Florida Attorney General's Office last October to modify 52,000 home loans in Florida. According to the Miami Herald, Countrywide only modified 6,500 Florida loans between last December and April 1, 2009. Consensus among Countrywide customers interviewed by the Herald is that the process is excruciating, frustrating and most likely expedited by quitting your job (if you have one) and falling 3-6 months behind on your mortgage payments.

Short Sale of the Day

noreply@blogger.com (3lb) — Tue, 28 Jul 2009 22:18:00 +0000

1948 Lake Atriums Cir #135, Orlando

Today's SSOTD takes us to Orlando where we find a 3 bed/2 bath condo being offered for $29,900 or $35 per square foot. The condo complex, The Plaza at Millennium, is conveniently located near the Millennia Mall, I-4 and the Florida Turnpike. The listing description notes the property was vandalized and that "sale of Property at full listing price may be conditioned upon approval of third parties." There are several short sale units currently being offered in this community according to Trulia. (Property description)

$63/SF for Bal Harbour Oceanfront Units

noreply@blogger.com (3lb) — Tue, 28 Jul 2009 20:43:00 +0000

WCI Originally Sold One Bal Harbour Units for $1,100/SF

The NYT article below cites increased sales activity at a downtown Miami project including the bulk purchase of 31 units by a Latin American investor at roughly $200/SF, or 50% off original pricing. As good as that sounds, how about 94% off original pricing...in Bal Harbour. According to Condo Vultures, a private equity group recently closed a bulk purchase of 51 oceanfront condo/hotel units at the Regent Bal Harbour. The same group, Elcom Condominium LLC, also paid $12 million for the building's common areas. Meanwhile Regent, which walked away from a South Beach project two years ago, has pulled out of the Bal Harbour project as well.

Units Are "Flying Off The Shelves"

noreply@blogger.com (3lb) — Tue, 28 Jul 2009 20:27:00 +0000

Analyst: “Things are starting to move through the system"

That, according to the New York-based developer of the 570-unit 1060 Brickell condo in downtown Miami. According to the New York Times, unit prices were slashed 50% earlier this year (from $400/SF to $200/SF) and 200 units "have closed since the discount program began in April." The NYT doesn't say how many of those 200 units were sold since the discount program was unveiled in April vs. how many were closings of units purchased for full price back during the boom. Still, kudos to the developer for being able to repay the $153 million first mortgage to TD Bank and iStar. On the flip side, the developer and his partners lost "their entire investment" and all mezzanine financing at 1060 Brickell.

Short Sale of the Day

noreply@blogger.com (3lb) — Thu, 02 Jul 2009 08:43:00 +0000

6184 SW 149th Avenue, Miami FL

Real estate websites like Trulia have recently added distressed properties to their advanced filter selection, so HousingBath will begin to highlight a different Florida short sale opportunity of the day. Bonus points will be awarded for homes with dramatic price reductions from neighboring comps and/or visual evidence of being neglected or abandoned. Today's property delivers both. This 4br/2ba Miami home was built in 1990 and is currently listed for $150,000. A comparable sized home was listed for $439,000 only two years ago. The interior has been vandalized and, according to the listing agent, needs new drywall and painting.

Foreclosure Auction for MIA Hotel

noreply@blogger.com (3lb) — Thu, 02 Jul 2009 08:21:00 +0000

Growing Weakness in South Florida Commercial Sector

In only two years, a high-profile Miami Airport hotel has been reflagged from a Radisson to a Sheraton to a Doubletree to a Foreclosure. According to the Daily Business Review, the 334-room hotel will be sold at a auction on July 30, but analysts doubt interested parties will pay anything close to the $59 million currently owed in principal, interest and fees. According to Real Capital Analytics, South Florida is currently home to $3.3 billion in troubled commercial real estate loans and $1.8 billion in delinquent loans.

Downtown Miami Sales Update

noreply@blogger.com (3lb) — Thu, 02 Jul 2009 08:02:00 +0000

Price Cuts, Sales Pace Slows, Banks Award More Aggressive Pricing

The latest Condo Vultures report on Downtown Miami condo activity shows sales slowed to an average of 2.7 a day in the second quarter compared to 5.2 sales/day in the first quarter. Three projects accounted for the majority of those sales: 1060 Brickell, Marina Blue and Brickell on the River's South Tower. Sales were so strong at 1060 Brickell (thanks to aggressive pricing cuts), the developer was granted a loan extension to April 2010. Of the 83 new projects downtown, Condo Vultures says 61 have sold 51% of their units while 36 have sold 90%.