Florida Real Estate

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The upper 9th ward Florida public housing development has just been reopened, following a hard-working campaign by Diane Conerly to the Housing Authority of New Orleans (HANO). HANO administrative receiver David Gilmore found that Florida was being ignored, with some of the worst buildings ever, but thanks to Conerly, it is being saved.  Being the resident leader for the Florida housing development, she pushed Gilmore into never forgetting the people who had been waiting seven years to come home following Hurricane Katrina.

Gilmore was torn since there are such budget restrictions on all departments, but through Conerly’s sheer determination, he relented and thus happily announced at HANO’s February 19th board meeting that Parkcrest Builders had been awarded authority for 51 new units where Florida once stood.

The reason it was so important to Conerly was because she would regularly be inundated with calls from residents desperate to come home and leave their Section 8 housing.  At times some of them would tell her “it’s never going to happen.”  She felt so bad for them, she too “shed a lot of tears.”

Now, there are plans from HANO to erect the public housing units as well as a management office on a tract of land linked by North Dorgenois, Congress, Law and Alvar streets.  This will include: six one- 25 two- and 20 three-bedroom units.  Of the $1.3m needed to complete the project, $8.3m is coming from FEMA and $4.8m from capital funding.  The plan is that infrastructure work will begin early this summer.

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At the end of March the Palm Beach International Real Estate Expo will take place at the Palm Beach County Convention Center, West Palm Beach.  To date, close to two hundred exhibitors (architects, brokers, lenders, developers, etc.) have signed up to participate.  Sponsored by 2030 World LLC, this is a good time for the event given the booming condominium market and the increase in single-family homes in the southern parts of the State.

Many of the excess condominium units that were erected during the 2000 to 2005 housing boom have since been sold to foreign investors.  Now, there is such an increasing demand, that housing developers are planning on building close to 15,000 new units.  Around 3,000 of these will be in the Broward and Palm Beach counties.

Clearly the Florida real estate market is on the up.  Indeed, so much so that the Boca Real Estate Investment Club is booming with increasingly more people feeling that getting into this career is more stable than others right now.  Founded by David Dweck, the group of young twenty- and thirty-something professionals are seeking to make real estate flipping in Florida, a full-time job.  And it seems that they are succeeding!  One guy purchased a bank-owned home in Boynton Beach for $68,000, renovated it at a cost of $30,000 and then six months later sold it for $135,000.  And they enjoy the actual job – finding something that is very unlivable and turning it into a beautiful home.  


The club is working for a few reasons.  First, it is because of the boom in Florida real estate and second, because as Dweck argues, the age-old staying in the same job for tens of years working 40 hours a week just isn’t the American way anymore.  “People are starting to realize that real estate investment is viable,” he added.


So if the Florida housing market continues on its upward spiral, this really could be a potential new job possibility for many young, up-start professionals looking to get their foot on the career ladder.
 

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The property market in northwest Florida is improving.  Figures for the end of 2012 on a high note.  Sales figures for November 2012, issued by Florida Realtors indicated significant improvement from a year earlier, most notably in Okaloosa, Santa Rosa and Walton counties, which witnessed an average escalation of close to 35 percent. 

So what is the reason for this optimistic trend?  According to one expert, it’s all about supply and demand, which is completely in play in this market right now. 2012 president of the Emerald Coast Association of Realtors, Judi Rutland also noted that right now there are great deals for buyers and investors.  This results in those listings that were overpriced being forced to readjust or come off the market.  This leads experts to believe that in northwest Florida the market is improving.

And it seems that the feeling of optimism is not just restricted to the northwest of the region. For South Florida homeowners, 2012 has been described as “the best year for housing since the housing crash began in the first part of 2006.”  Should this trend continue, it looks like the damage caused by the housing crisis should be erased by early 2019.  In 2012, figures for the South Florida real estate market should an average 1 percent increase per month from January to October. 

Thus the figures above show that if trends continue as they have been for the last 12 months, Florida is set to make a complete recovery from the housing crisis that started more than six years ago.

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There is not just good news for those interested in Palm Beach County real estate, there is GREAT news.  Over the last year, there has been more than a 60 percent increase on home construction, which is the highest number since early 2007.  However, before one gets out the champagne, they should know that according to Chief Economist of MetroStudy Brad Hunter, this figure is still a mere third of the activity that is considered “normal,” and way lower than when Palm Beach County was really on a high toward the end of 2004 which saw the beginning of construction of 2,754 new homes.  Still, major escalation as this is (as compared to last year) cannot be discounted and really is GREAT news especially since it seems like the trend will continue given that demand for new homes is increasing while supplies decrease.  There was also an increase of 46 percent of people moving into new homes in Palm Beach County, during this year’s third quarter as compared to last year’s.

Southeast Florida

The highest demand for property throughout the state of Florida is Southeast Florida which has encountered a true recovery.  Indeed, home values in the region increased close to 8 percent in the third quarter of 2012, compared to the figure for the same time last year.  It is anticipated that this will continue through 2013.  It hasn’t always been like that since in late 2011, South Florida’s figures were really poor, with nearly 40 percent of homes there selling for a loss in September. 

While there is some basic good news in the American housing market, many local markets are still struggling.  As well, while new foreclosure filings decreased 44 percent during the first three quarters of 2012 compared to 2008, Palm Beach County still fared worse in four categories: foreclosure inventory; sales prices; share of distressed sales and unemployment.

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Compared to this time last year, Florida housing market is strong and continuing in this positive trend.  A report from Florida Realtors has shown that house sales in the region have increased by 11 percent compared to 2011 with pending sales having escalated by a staggering 40 percent. Throughout America house sales are up 9 percent but this still renders Florida in a leading position. However, when comparing median home prices, Florida is somewhat lower on the totem pole with $147,000 versus $188,000 nationwide.

In addition, according to data analysis undertaken by Coldwell Banker Real Estate LLC and Onboard Informatics of over 11,000 areas, for those who enjoy the suburban lifestyle, Cooper City, Parkland, Palmetto Bay, Jupiter Farms and Lake Charles Shores all rank among the top 20 best places to live. Factors tested included: good local schools; leisure activities; job opportunities; recreational outdoor activities and entertainment options.

So with real estate improving and quality of life in the region escalating, it would seem that the Florida housing market is out of the woods.  However, with this good news comes some bad.  There are concerns at a deflating inventory of properties for sale.  With an inadequate amount of affordable homes on the market, further growth will be diminished in the long-term housing market.

Thus balance is key.  Florida’s real estate market should continue to develop, but the hope is, that this should be with a focus on affordability for the masses.

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Although the whole of America has encountered mortgage difficulties due to the economic crisis, it seems that now – especially for those in the South Florida region – there could be room for optimism.  Figures are indicating that, in recent times, fewer homeowners are facing the dreaded prospect of foreclosure, thanks in large part to the recovering economy, but also due to government-backed and other programs offering assistance.

For example, the Bank of America has been extending its financial supportive hand, and the results have been very positive.  Indeed, the numbers speak for themselves: in June 2011 there were 30,000 of “seriously delinquent mortgages” in South Florida and now – in August 2012 – this figure has dropped to 12,000 – a staggering 60 percent decrease.  BankUnited and Chase can also support the occurrence of a similar reduction in such numbers, most notably since 2009.

Since banks in the region have been particularly helpful, this has made a huge difference. Indeed, just a few months back, the majority of states in the nation made a $25bn settlement between Ally Financial Inc., Bank of America, Citigroup Inc., JPMorgan and Wells Fargo & Co.  As part of this, Bank of America wrote letters to 200,000+ mortgage holders (primarily in California and Florida), offering assistance. Other programs include the Home Affordable Modification program (offered by the federal government) that could lead to a reduction in monthly payments for some mortgage holders, as well as 46,032 trail/permanent modifications in Florida counties from various lenders.  Lenders thus seem to be making major efforts to help tackle the area’s “housing debacle,” rather than continue with its prior attitude of jumping to foreclosures. There has been a clear increase in banking flexibility, with some evening forgiving principal.  In addition, according to RealtyTrac, in the Miami-Fort Lauderdale-Pompano Beach region, foreclosure filings dropped 15 percent in July 2012 from their substantially higher figure in July 2011

Getting the Whole Picture

So while this all sounds extremely positive, why is it that homeowners in the South Florida region still seem to be struggling?  Is this the whole picture?  There are those in the industry who are not convinced Bank of America has made such a significant drop with over a third of homeowners no longer at least 60 days delinquent in four months.  Indeed, some have even suggested that the picture isn’t positive at all and that all the Bank of America is doing is merely unloading problematic mortgages to other servicers.  Although, having said that, the Bank has received around 10,000 requests from homeowners at their offices over the last two years, to which it has responded.  And for those who still feel they have not received the help they need, there will be a Bank of America free event next week to further extend a helping hand to struggling homeowners.

Further, there is still a large amount of Florida homeowners facing foreclosures.  Indeed, the figures show that one out of every 352 Florida homes is currently at some stage of foreclosure, according to figures from RealtyTrac.  This could be – at least in part – due to a revival in banking activity that, during litigation from state attorneys to protect consumers, had been delayed.  Now that these have been settled, banks are picking up again on long-overdue mortgages.  As well, even RealtyTrac – despite the positive trends it has witnessed – predicts an increase in foreclosure activity in the next few months.

Perhaps these facts shouldn’t come as such as a great surprise though, given that, according to a recent survey undertaken by Bankrate, Florida comes in at Number 4, for the country’s highest mortgage costs.  Given that the average cost for origination, title and closing in America is $3,747, Florida’s average of $4,395 is substantially higher, thus having the potential to cripple way more homeowners as they struggle to pay off their mortgages in troubling economic times.

So while there are definite improvements in America’s overall situation for homeowners – and indeed perhaps even more so for those residing in the South Florida region – there is still an undeniable amount of uncertainty putting pressure on these mortgage holders, that needs to be addressed.

 

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The property market in Central Florida has not had a great rep over the last few years. But now, that situation may just be changing.   As house prices begin to increase, and there is a reduction of available homes for purchase on the market, the region is moving out of the red and into the black. 

Indeed, it seems that the median price in Central Florida has escalated 11 percent over the last six months since the beginning of the year, putting it at $120,000.  The Orlando Regional Realtor Association also figured out that by removing the distressed homes from the picture, the average price of a home in the region has increased to $160,000. And, perhaps even more noteworthy, the value of distressed homes has increased too, by 5 percent, putting it up to $108,000.

Orlando

Looking at East Orlando the situation is improving too.  Agents trying to sell houses on a daily basis are experiencing much more movement than they were in the past.  The hope is, of course, that this trend will continue.  But the fear is, that since the market remains full with many short sales and bank-owned properties, the reality is that housing has not completely bounced back from the depths of despair.  Still, the housing price increase, coupled with interest rates that currently sit at less than 4 percent, will probably translate into additional house sales.

In addition, for the fourth consecutive month, prices on homes increased in Orlando’s market in May 2012 which agents view as an extremely positive sign for it turning into a sellers’ market.  Indeed, things have been moving so fast that real estate agents in the area have noted that on some “hot list” properties, by the end of the first day, they could even have pending contracts.

 

Ultimately, what’s encouraging for agents like Vanesa Cortes who works with Coldwell Banker, there has been a stead increase in price which should encourage those who have been waiting to buy to take the plunge.  It is expected that by the end of 2012, this will happen for the region.

 

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Since it has at times been a challenge for the students at Florida Atlantic University (FAU) to find appropriate accommodation while studying, there could be good news ahead.  What was once a factory – Monier Lifetile – will now become a four-story complex housing close to 600 students. 

Located at NW 20th Street, it is hoped that this factory that once produced tiles and is hardly noticeable any more since it has been deserted for some time, will be rejuvenated with student activity.  So that sounds like good news.  However, not everyone is so pleased.  Officials from Florida Atlantic University and some employees from the city are not too happy about it this move that is slate for completion within the next three years. But proponents of the move, including the city’s Mayor, Susan Whelchel, argue that what is more likely to happen is that the area will get a facelift and become a pleasant village of shops and eateries specifically catering to the needs of students.  So in favor of the work being done on the project, that Whelchel herself made its construction one of “the most pressing council priorities for the coming year.”

Another FAU Building Issues

Besides, it is about time FAU got some positive reinforcement vis-à-vis its buildings issues.  As it is, its St. Lucie West extension has been described as “an embarrassment,” it’s such a mess.  Indeed, it is said that it is in such a poor state that it implies one of two things: either the city’s potential students are choosing other cities for their studies; or that there aren’t enough students who qualify for college acceptance, which gives the city a pretty poor academic reputation.

But if one just takes a look at the school’s accounting scholars program, it seems this is not the case at all.  One hundred percent of the program’s 23 graduates this year from the FAU are leaving with a job to go to, in their field.    As well, 80 percent of its undergraduate students have a summer internship.  As the School of Accounting’s director, Kimberly Dunn, proudly pointed out, “in its short history, the Accounting Scholars Program has developed an outstanding reputation of academic and professional excellence.” I am extremely proud of the tremendous success of our students and alumni.” Now that doesn’t seem consistent with a FAU having a poor academic reputation at all.

So it remains to be seen who is correct – the opponents of the work or people in Mayor Whelchel’s camp who are very much in favor of making this happen for FAU.

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Potential Florida home buyers are being connected with HomesJacksonvilleFlorida.com in an effort to lead them to purchase their dream homes.  The company offers: foreclosures, short sales, rent to own and owner financing houses for sale by owner.  Overall, the goal of this group of real estate investors is that, personal credit shouldn’t have an impact on being able to become a homeowner, especially now since the huge amount of foreclosures and distressed properties has resulted in a surplus of homes for the market.

How it Works

This team is attempting to help average people own special, dream homes.  The obstacle that these individuals face is that they are being haunted by various financial problems.  So this group – that owns real properties – facilitates the process for them, so much so that it can actually become easier than renting in Florida. 

What happens is, banks and mortgage lenders have to follow set rules vis-à-vis loan approvals, but HomesJacksonvilleFlorida.com, doesn’t have to abide by such restrictions. Instead, they make their assessment on their own set criteria and are more able to “bend the rules” as it were.  Indeed, according to one senior investment property advisor there, Kevin Thompson, “people with bad credit are often turned down by banks and mortgage lenders, but exploring creative financing is one of the best ways to get in a home fast.  Many hard-working people want to own a home and deserve to be given the opportunity.”

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After months – nay years – of far-from-positive news on the Florida housing front, it seems that there is something to smile about now for those navigating the South Florida housing market.  Maybe the crash will now – slowly at first – start to end.  Experts cannot say how long it will take for things to really turn around and there are likely to be some hiccups on the way, but the general feeling is that the bad news is about to end.  And, for those looking for more information, they should have made sure they were in attendance at the South Florida Housing Summit.

Why Good News?

So why the optimism?  First, there are less resale inventory since buyers are increasingly purchasing smaller properties at cheaper prices in the Broward, Miami-Dade and Palm Beach areas.  Second, the properties now owned by banks in South Florida only account for less than 22 percent of the close to 42,000 residences which is a drop from  over 100,000 properties that were on the market at the end of 2008.

In addition, there are already plans for the construction of a further 24 condo towers comprising 4,500 units in the tri-county region even though there is not nearly enough funding for construction available.  As Melanie Dawn recently tweeted, “low home prices begin looking up in South Florida.”

Resale Price Escalation

According to figures from the Florida Association of Realtors, in January 2012, there was a 13 percent increase in resale prices for single-family units in Miami-Dade County compared to the figure for the same time frame in 2011.

Of course, it has to be recognized that this could just be a blip, but if there are further increases in February and March this would show a stability in rising home prices for a longer stretch than it has encountered since February 2007.  It seems that house prices are increasing, in part due to the rising interest of international buyers.