Headlines – Week of January 2, 2011
January 8, 2011
South Florida Resales Have Record Year
According to a report by CondoVultures.com, more South Florida (Miami-Dade, Broward, and Palm Beach counties) residences resold in 2010 than in the last year of the real estate boom in 2006. In 2010, buyers rushed to take advantage of deep discounts on distressed properties and a government-funded $8,000 first-time home buyers tax credit.
In 2010, 75,000 single-family houses, condos, and townhouses – an average of 6,250 per month – were resold in 2010 compared to less than 67,600 transactions – 5,600 per month – in 2006, according to a new analysis from the licensed Florida sell-side brokerage CVR Realty™.
Peter Zalewski, a principal with Condo Vultures® LLC believes today’s South Florida real estate market is strictly a function of price, not emotion. Nearly 7,400 more residential resale transactions have occurred in the year 2010 than in the year 2006 due in large part to the current prices that are 40 percent less on average.
South Florida’s residential resales for 2010 totaled nearly $16.6 billion, an increase of about $1billion from 2009.
The 2010 total dollar amount for completed transactions is $10 billion less than in 2006 when gross resales reached nearly $26.9 billion, according to the report.
At the peak of the market, the average South Florida resale transacted at a price of $398,000 in 2006. In 2010, the average South Florida residential property resold for $221,200, representing a 44 percent discount compared to five years earlier.
Single-family houses resold for an average of $297,000 in 2010 compared to $502,000 in 2006, a 41 percent decrease in average pricing from the peak.
Condominium units and townhouses resold in 2010 for $160,400, a 47 percent – or more than $140,000 – decrease off of the $302,400 average in 2006.
2011’s Strongest and Weakest Markets
Home prices are expected to rise in 40 percent of major metropolitan areas, according to Veros Real Estate Solutions, a research firm that provides information to the mortgage industry.
The markets Veros expects to be strongest are:
1. San Diego/Carlsbad/San Marcos, Calif.
2. Kennewick/Richland/Pasco, Wash.
4. Fargo, N.D.
5. Washington, D.C. metro area
The five markets Veros expects to be weakest are:
1. Reno/Sparks, Nev.
2. Orlando/Kissimmee, Fla.
3. Boise City/Nampa, Idaho
4. Deltona/Daytona Beach/Ormond Beach, Fla.
5. Port St. Lucie/Fort Pierce, Fla.
Florida has second-longest foreclosure process
Recent data from LPS Applied Analytics shows that New York has the longest foreclosure process in the nation. On average mortgage loans in the foreclosure have been delinquent for 600 days on average.
Loans in foreclosure in Florida, New Jersey Hawaii, and Maine have been delinquent for an average of more than 500 days. Close behind, California and Nevada’s home loans have been delinquent for 461 and 427 days.
Meanwhile, Nebraska and Wyoming were found to be the two speediest states — loans in the foreclosure process are delinquent by an average of 358 days.
The data indicates that states using a judicial process have backlogged courts. Florida, which has some of the highest numbers of foreclosures in the country, has had to set up separate courts and bring in retired judges to help handle the skyrocketing foreclosure cases.
Government officials and agencies also cause foreclosure delays through temporary moratoriums, mandatory mediation sessions, and loan modification or assistance programs.
Mortgage servicers also cause delays, not wanting to take on the legal and financial responsibilities of owning any more homes.
Posted by Scott R. Lodde