Fort Lauderdale Real Estate Blog

February 23, 2009

Fort Lauderdale High End Home Builder Glenn Wright Facing Lawsuits

If you live on the east side of Fort Lauderdale, it is certain that you have heard of the new home builder Glenn Wright.  Wright is well known for his 2-story “mcmansions” in the Fort Lauderdale neighborhoods of Rio Vista, Victoria Park and Coral Ridge.

Wright’s grandest project, La Preserve, envisioned to be a luxury gated home community in a natural setting remains unfinished and as the Sun-Sentinel reports; 39 of the 67 homes are in foreclosure.*

Wright, a prominent name in home building is facing several lawsuits from angry would-be homeowners, contractors and projects that remain unfinished.*

It is reported that Wright’s development companies are in the red for more than $100 million.   The developer has deeded at least 106 of his company’s properties to a private firm that specializes in debt restructuring.*

*source: Sun-Sentinel.  You can read more of this story in the full article at Sun-Sentinel.

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February 12, 2009

Homes Sales Up in Florida | Prices Remain Down

Florida Association of Realtors® (FAR) report home sales up across the state of Florida for the 4th quarter of 2008, signaling the second straight quarter for an upward swing on sales.  However, statewide, Florida home prices remain down.

Contributing factors to prices remaining low are the number of short sales and foreclosures statewide and the strict lending guidelines.

Locally, Fort Lauderdale Home sales rose 42% to 1,764 from 1,244 for same time last year and the median price for a single family home was $234,100 down 32% from $344,000. *

Sales for Fort Lauderdale condos rose 21%  to 1,588 from1,309 same time last year.  The median price dropped 35% to $107,200 from $166,100.*

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*Source: Triangle Businss Journal.

February 10, 2009

Fannie Mae Modifies Guidelines for Investors

Avenue Lofts | Fort LauderdaleGood news for investors.  Fannie Mae has modified their investor guidelines to allow up to 10 financed properties to the same borrower.

Previous guidelines allowed financing for only 5 properties and additional property purchases had to be paid for in cash.

The modifications to the guidelines come with a stipulation; the borrower has to have money in the bank for reserves.

  • When the borrower will own a total of one to four financed properties, the reserve requirements for PITI (Principle, Interest Taxes and Insurance) are:
  1. Two months reserves if new property is a 2nd home or
  2. Six months reserves if new property is an investment property and
  3. Two months reserves on each other financed second home or investment property.
  • When the borrower will own five to ten financed properties, the reserve requirements (PITI) are:
  1. Two months reserves on new property if it is a second home or
  2. Six months reserves on new property if it is an investment property and
  3. Six months of reserves on each other financed second home or investment property.

This guideline change is good news for investors allowing them to purchase additional properties they may not have been able to purchase under the previous guidelines and a welcomed positive step in the right direction to help in reducing some of the excess inventory especially short sales and foreclosure properties.

For more information about Fort Lauderdale Homes for Sale , Investment properties and available Fort Lauderdale condos for sale, contact John Sabia at 954-850-2397.

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February 4, 2009

Fort Lauderdale Listing & Sales Activity | December 2008

Fort Lauderdale, FloridaNationwide Existing Homes Sales Show Strong Gain in December  and Pending Home Sales Show Healthy Gain in December up 6.3% over November (biggest gains in the South and Midwest) reported The National Association of Realtors® (NAR) in separate press releases.

Both positive gains can be attributed to buyers taking advantage of  low prices and interest rates,  however, real estate markets are far from normal conditions, and buyers will continue to have the advantage for the foreseeable future.

December’s Listing & Sales Activity for Fort Lauderdale Real Estate show small negatives except with New listing inventory.  There were 21% fewer homes and condos listed in December which could be because of the holidays or hopefully, an indicator that perhaps the real estate market may be slowly beginning to stabilize.  The next several months will tell the real story.

For more information about homes for sale in Fort Lauderdale or selling your home or condo, contact me today at 954-850-2397.

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January 1, 2009

Fort Lauderdale Real Estate Ranks 6 For Most Searched Communities in 2008

View | Ritz Carlton Fort Lauderdale FloridaIn a recent CNNMoney.com article, Zip Realty reports the most searched zip codes and communities in 2008 for real estate searches.   Fort Lauderdale Real Estate ranked #6 in most searched communities.  With all the news about the declining real estate market nationwide, this report reveals that there are buyers still searching for homes and condos and it is interesting to learn where the most popular searches are.

Perhaps as the real estate bottom reveals itself, this may be a quick look into where the first areas to rebound will be?

Search Fort Lauderdale MLS Listings for homes and condos for sale  including short sales and foreclosures.

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October 23, 2008

Is it time to Buy Real Estate? Expert Says Yes

Fort Lauderdale Real EstateStatistics released by foreclosure listing service Realty Track report by year end, one-third of all properties for sale nationwide will be sold by banks.

Third Quarter 2008 foreclosure filings were up more than 70% from same time last year.   Almost 766,000 homes received foreclosure notices between July and September.

Approximately 60% of all homes in foreclosure are in Florida, Nevada, Arizona, Ohio and Michigan.  California accounts for 1/4 of all US foreclosures.  The Fort Lauderdale Real Estate market has certainly seen its share of foreclosures and short sales .

Florida ranks 2nd for nationwide foreclosures per the Tampa Bay Business Journal and Fort Lauderdale ranks 5th in the top 100 metropolitan cities with the highest foreclosure rate.

Ohio and Michigan foreclosures can be attributed to the high rate of unemployment and the job crisis related to the auto industry.

Florida, Arizona, Nevada and California foreclosures are attributed to the enormous unsustainable housing appreciation sometimes in excess of 50% per year.

In a FOX News interview with Barry Habib, Chairman of the Board of Mortgage Success Source, Mr. Habib advised “anyone heading into foreclosure may stall the process by asking for proof of payment history when served.  Since the loan may have been sold a few times, asking for proof of payment history may give you some extra time.”

The most important thing to remember is to communicate with your lender.  Banks want to work with you and avoid foreclosure if possible.

When asked if now was a good time to buy real estate, Mr. Habib replied that “this is a great opportunity to buy real estate.  The reason why there are few rich people is because it is hard to do what everyone is saying not to do.”  He went on to say while everyone is saying real estate is bad, advising to stay out of it, perhaps it is the right time to get in.

He added, buyers are in the driving seat, able to buy properties 10-15% or more below market value.  Even if prices come down another 5-10%, so what?  There is plenty of inventory for buyers to choose from.  Since the average person holds on to a home for 14 years, when the market recovers, there is the potential for a great profit.

For more information about buying or selling a home in Fort Lauderdale, or Fort Lauderdale Condos for sale, contact John Sabia at 954-850-2397.

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October 20, 2008

Sarasota Association of Realtors® attacks Marc the Realtor®

A Realtor friend of mine in Sarasota has recently faced an aggressive legal battle launched at him by the Sarasota Association of Realtors®, (SAR) of which he is an active member, because of the use of “mls” in his website address.

The use of “area mls” in a Realtor’s website address was widely recommended in a 2002 article written by “Mr Internet” in a publication by the National Association of Realtor’s® (NAR).

Marc Rasmussen, a Sarasota Real Estate Agent, purchased his website address “thesarasotamls” back in 2003 based largely on the advice he read in the article and when marketing real estate on the internet was in it’s infancy.

Mark continued to spend numerous hours and thousands of dollars over the next 5 years creating and improving what had become the number 1 Sarasota Real Estate website and was rewarded for his efforts by achieving high rankings in the internet search engines.

A recent change in Article 12 of the National Association of Realtors® Code of Ethics, now allows local Realtor® Associations at their sole discretion to determine if their members are permitted to use the term “mls” regardless of how long they have used it and especially with disregard to the recommendation featured in the Mr Internet article.

It should be pointed out that “mls” is not a trademark of any Realtor® Association, instead the trademark for Major League Soccer (MLS). The public has also come to know mls as a common everyday term for real estate property listings.

However, it was prior to this change in the ethics code that the Sarasota Association of Realtors® decided to take legal action against Marc, apparently in an effort to shut his website down. A website that was highly respected for doing what a real estate website should do, provide consumers with real estate information and real estate property listings.

Morgan Carey, the web designer for Marc explains in detail in his blog post Help us Fight the Sarasota Association of Realtors® , the legal action which began with an ethics complaint against Marc filed by SAR (Sarasota Association of Realtors®) for which Marc was cleared of any wrong doing.

This is where I and many others believe SAR® went too far crossing the line. The Association, rather then accept this ruling, continued action against Marc outside the scope of an ethics complaint, in a legal maneuver, brought their argument to the Internet Corporation for Unassigned Names and Numbers (ICANN) – which as you will read below, has nothing to do with ethics.

ICANN mission statement

In a split decision, ICANN ruled in favor of the Sarasota Association of Realtors®.

Marc has filed a lawsuit in Federal court against the Sarasota Association of Realtors® to allow him to maintain control over the old website address (domain name thesarasotamls.com). Marc has already redirected the old address to his new website address.

By allowing Marc to maintain control over the old domain and through the redirect to his new website will preserve the past 5 years of hard work and maintain the authority Marc’s old site had gained and avoid Marc having to start all over again.

There has been an enormous outpouring of support for Marc from fellow Realtors® across the country and a barrage of protests against the Sarasota Association of Realtors® has now put this issue into the lime light. They have an opportunity to do the right thing, bring this to a close and allow Marc to remain in control of the old domain.

If they continue to force Marc to surrender the website address to SAR®, than in my opinion, as shared by many others, this was never about ethics, nor an action to protect the consumer. Rather a contemptuous action far more rooted in taking down a Realtor’s® website possibly because of jealousy or envy.

Read the linked articles, and you decide.

To list your article here, email me or post in comments.

To voice your support for Marc, contact the Sarasota Association of Realtors®

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August 28, 2008

Fort Lauderdale Real Estate | Home & Condo Sales – July 2008

Home and Condo Sales figures for July 2008 – Fort Lauderdale

Listing and Sales Activity in the Fort Lauderdale Real Estate market for July 2008 reports some positive news from last month, but we are headed in the right direction.

Closed Sales for single family homes in Fort Lauderdale were down just 2% while the median price was up 2% from June 2008, however an 18% decrease from July 2007.

Closed Sales for Fort Lauderdale Condos were down 14% over June, while the median sales price was also up 4% from last month. Median price from same time last year is down 16%.

Average Sales price for both property categories were down 4% and 6% respectively over last month and down 19% and 6% from same time last year.

Positive territory for New Listing Inventory reports a decrease of 11% of new properties on the market from last month and down 13% from last year.

Positive news for Total Available Inventory as well with a small decrease of 1% of properties for sale over last month and down 4% from last year.

As you can see, there is plenty room for improvement, however, the sky is not falling as you would be lead to believe by most media reporting. It is crucial to remember that real estate is local, not nationwide or statewide and varies significantly between neighborhood to neighborhood and condominium to condominium.

I learned a long time ago from real estate sales coach Mike Ferry, the secret to selling a home in any real estate market and it remains true to this day is that there are only really 2 questions to ask if you are considering selling your home:

  • Do you absolutely have to sell your home? not want to, not testing the market – Do you absolutely have to sell?
  • Will you price it to sell? not I need, not I want. etc.,
    Will you price it to sell based on market value, market trends and perhaps even below market value taking into consideration, short sales, foreclosures, active listings, pending sales and most importantly closed sales in past 30, 60 and 90 days, not 1 year ago or even 6 months ago.

    If your answer is not yes to both questions, you probably should not be selling your home at this time.

    If you answer yes to both questions, than your next step is to select an agent who understand this.

    All other suggestions and advice for selling a home are only complimented if Price and Motivation are the top 2 key factors in selling a home.

 

For more information about buying or selling residential real estate in Fort Lauderdale, contact John Sabia today at 954-850-2397 and visit the #1 Fort Lauderdale Real Estate web-site.

source: Realtor® Association of Greater Fort Lauderdale

August 18, 2008

Real Estate | Some Good News

Even Black Clouds Have Silver Linings

Click through BusinessWeek.com’s slide show, ranking the best- and worst-performing real estate markets by ZIP code and you’ll find a rude reminder of just how low some markets can go in one year alone. The July 31 report, “Real Estate Boom and Bust in the Same Metro Areas,” examined 20 major metropolitan areas to find out just how well they faired in light of today’s turbulent economy. What it found wasn’t all bad news. In fact, many of the studied markets appeared relatively strong. What’s most interesting is that many of the highest-performing ZIP codes are close neighbors to some of the report’s lowest-performing ZIP codes.

In South Florida, for instance, housing prices have taken a serious hit in Davie, a suburb of Ft. Lauderdale, due to a mix of weak-dollar ramifications, lending restrictions and new construction. The average asking price fell 30 percent to $276,661 between July 2007 and July 2008, according to the report. But the market appears to be much rosier in Jupiter, a wealthy beach town boarded by Palm Beach Gardens to the south and Martin County to the north. Median listing prices in Jupiter climbed 24 percent to $644,750 between July 2007 and July 2008.

Affluent markets like Jupiter are benefiting from the weak dollar because it has opened new markets for well-financed folks who can buy exactly what they want without the competition. While some may argue that it’s a bit of a stretch calling Jupiter — a good 100 miles from the heart of Miami — part of the Miami metropolitan area, the message is still clear: We may be in a recession, but not everyone is failing.

The comparison report, conducted by Altos Research, drives home the point that some neighborhoods are indeed appreciating despite an overall negative feeling toward the real estate market. Unfortunately, the accompanying article, “The Credit Crisis Turns One,” lacks a solid analysis of what these numbers can tell us about what’s in store for us a year from now if the financial crisis continues on its current course. Keep in mind that the study represents only a small snapshot of the country’s more than 43,000 ZIP codes.

It’s unfortunate that the country’s financial meltdown has brought the entire market down, negatively affecting the masses the most and the wealthiest individuals the least. For one thing, it is going to take some time before the South Florida housing market will rise above the daunting overhang of unsold homes and widespread sale of foreclosures.

Economic Data Chart

August 15, 2008

Investing in Real Estate | Local Knowledge is Key

Don’t Base Your Investments on National Indicators

Fort Lauderdale Condos

While it may appear like you’re seeing the same home prices and sales in your local market that are being reported in neighboring counties and states, it’s important not to lose sight of the details specific to your market. Markets can vary widely from city to city, neighborhood to neighborhood or, as in the case of Fort Lauderdale condos such as Las Olas River House, Las Olas Grand,WaterGarden, Symphony, Las Olas Beach Club or L’Hermitage; building to building.

Keeping market-specific details, such as price trends, volume and inventory, in mind when buying or selling residential real estate in Fort Lauderdale and elsewhere, is the key to evaluating real estate deals.

Unfortunately, the media has a tendency to generalize and summarize what’s taking place in the real estate market and often times, both buyers and sellers end up making critical decisions based largely on prices and sales. For real-time state of the market, they should be looking at sales volume and inventory trends, which will show how active or soft a particular market is.

To be successful in this industry, you should never look at real estate through a wide-angle lens. Get a more lucid picture of what’s taking place in your local market by breaking it up and examining the details.

You can probably come up with a slew of characteristics that differentiate various neighborhoods within your local market such as Bay Colony, Coral Ridge, Las Olas, Harbor Beach, Rio Vista, Wilton Manors and Victoria Park.

It’s critical for buyers and sellers to understand these characteristics and, in turn, communicate their buying or selling needs with a real estate professional. In order to get the best advice, service and consultation, buyers and sellers need to be particularly selective when choosing an agent that is most knowledgeable about their local market and will be able to best meet their needs.

On a similar note, buyers and sellers should not get too hung up on waiting for the housing market’s bottom. Many buyers, who are now sellers, missed all the signs of the market’s top and it’s highly likely that buyers may also miss the so-called bottom — if they wait around to read about it in the news.

It takes a good four to six months for statistics to report the start of a recovery and it will be too late by the time it hits the media. While it’s easy to see a bottom coming, it’s impossible to pinpoint when it will happen exactly. People that are fortunate to buy at the bottom won’t realize their good fortune until it’s passed.

Making sure you do your homework when purchasing a home is a no brainier, but all too often people make investments based on what the media reports. One size fits all doesn’t apply to the real estate world.

If you are considering buying or selling real estate in Fort Lauderdale, Florida, contact John Sabia at 954-850-2397 or visit the #1 Fort Lauderdale Real Estate website.

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