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Finally, after months of poor performance in America’s housing industry, it seems like 2012 is going to be the year of recovery, albeit gradual. In South Florida for example, home sales are increasing which is good because prices were really hitting a low.  However, the mortgages people took out during the boom are still negatively impacting the market and this has been extremely challenging for many homeowners.

So, for those encountering difficulties in the housing market – be they homeowners, those looking to buy or potential sellers – there are some ways of improving the situation. First, since things have started to look up, for those looking to sell it is worth trying to do so earlier rather than later before foreclosures appear.  No matter how desperate you are to sell though, do not try to provide cash/cars/other incentives to get them to buy.  It is a bad idea.

In general, it looks like it is going to be a good year for sales; there are fewer declines in pricing as well as fewer properties on the market than in say 2009, 2010 and 2011.  In addition, it is anticipated that there will be another wave of bank-owned homes which will result in lower values and additional competition for those looking to buy properties.

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Good news for those in the South Florida housing market.  According to the Miami Association of Realtors, looking at figures for November 2011, there was a significant increase from the same timeframe last year.  However, numbers for October 2011 were slightly higher (so this indicates a drop now).   Still, it is good news.

Looking at Miami-Dade County there was mixed news too.  Although there was a drop of 10 percent in sales from last month to this, again there was an increase of a staggering 25 percent from November 2010 to November 2011.  It seems like the trend is thus set vis-à-vis October, November 2011 and November 2010. 

In general though, according to an official from the Miami Association of Realtors, this news is indicative of a “balanced and healthy marketplace.”

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It seems that Florida is looking up vis-à-vis jobs and housing in particular and its economy in general.  The Florida Legislature now has the capacity to develop close to 9,000 jobs, rendering a staggering $900m for the 2012-13 fiscal year.  It will be able to do this by getting money from the state and local housing trust fund which often ends up in the category “general revenue” and pretty much gets lost.

Great Florida Housing à Great Florida Economy

The bottom line is that the more recovery there is on the Florida housing market, the better the entire state’s economy will fare.  If capital is taken from the housing trust fund, it can be used to renovate abandoned homes, which would give those working in the field of construction, jobs, and thus boost the economy. So it just makes sense to invest in the state’s real estate market.  Doing so will result in property value stabilization for everyone while supporting firms that deal in all sorts of construction areas (material provision; contractors; supervisors; workers and more. 

Ultimately, Florida needs its sales taxes to generate revenue and when funds set aside for housing are not used for this purpose, there is an increase in sales revenue, which results in a reduction of the state budget deficit.

 

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It seems like renting out government-owned homes in Florida would be a good idea right now.  But, at the same time, doing so probably will not ultimately solve the problem in the areas where housing prices have taken the biggest hit.

The idea now though – in places like Florida – is that the FHFA (Federal Housing Finance Agency) is currently looking into the possibility of selling these homes to investors who would then rent or sell them, which would generate a profit for them.  The hope thereafter is, that government-agencies will also make money (which they really need) and the value of neighborhood properties will increase by putting renters or buyers into the homes that are sitting empty.  At the same time, this would facilitate tight rental markets through an expansion of the amount of homes available.

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And now, no matter where you are, you can see what is going on in your home.  Go out for lunch, go to work, but still be able to keep track of the happenings in your home. This is already the case in Naples, Florida, where monitors are being put in into homes. One homeowner said she likes the new technology just to be able to keep an eye on things at home when she’s not there.

E-Monitor

The new technology – called E-Monitor – employs the same idea as a car dashboard. People using it can track their doors being locked, energy efficiency and even let them turn lights on and off.  As a result, it is able to reduce energy bills by around a quarter.  While it is currently available for use in Florida, experts believe it will be nationwide and a $15bn industry within the next three years. Presently, the system costs $1,500 to install. But it’s great if someone immediately finds out that their appliance is not working properly. Co-owner of Your Home Watch Professionals, Bob Weiss, said, “we’re always afraid that when we leave and turn the key something is going to break so we're able to monitor that by knowing that 7-10 days out we won't have to worry as much because if it breaks in three days we get an email alert.”

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We’re not quite up to the stage where our cars can fly, but thanks to a complex that is being constructed along Miami Beach’s waterfront, we can certainly get our cars pretty close to our living space.  The “Jetsons”-esque elevator will have the ability to send residents’ cars to the front doors of their high-rise condominiums.   This will be the first building ever to be constructed with such a feature.  So no matter how high up you are, you will be able to “park” your car right outside your property!

Called the Porsche Design Tower, this new venture is the result of a partnership between Gil Dezer, (a Miami property developer) and the Porsche Design Group.  In layman’s terms, this is basically an extremely large elevator that has a robotic arm which can go up the tower’s 57 stories at a 90-second clip, and offer great views of the city at the same time! 

But it certainly isn’t an opportunity for those with little money in the bank.  It is anticipated that each unit will sell for around $9million.

 

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The first ever official partnership between Atlas Real Estate Partners and Andover Real Estate partners took place when a 336-unit building – Sawgrass Cove Apartments – was acquired by the two companies.  They will now join together to develop this multifamily platform in Florida over the next two years. 

Greystar Collaboration

Greystar will be working alongside Atlas and Andover in this project as the community is reabsorbed in its new location.  It is, overall, a phenomenal opportunity for the Sawgrass Cove community as the new location is very centrally located from great shopping and eatery areas – Bradenton and Anna Maria Beach.  As well, the properties themselves will have upgraded amenities and the hope is a new sense of community will develop quickly.  On the schedule are events for residents and town hall meetings so that the people living there can really be heard.

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Montana Mapping & GPS just released software providing detailed information of land; a display of property lines and public property for the state of Florida.  The company that released the software designed it with real estate agents in mind as it makes life much easier when you can see clearly which land is public and which is private through its color-coding.  According to the company’s CEO, Eric Siegfried, it provides a lot of other important data too like where various parks and preserves are located; different highways and roads; campgrounds, trails and more.

Benefits for Sporting Activists

The software is great for sporting activists too, since it provides information on the locations of all the public and private boundaries in the region are situated along with landowner names.  So while hiking in the field, they need not fret about trespassing or getting into unwanted zones.  The user can also plot his or her location on the map which saves the time and hassle of trying to work out exactly where you are.  It can be used with other regular maps too.

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Current Florida Real Estate Issues

The US housing market is up and down.  It’s good for some people; bad for others.  Looking at the fact that there are properties on the market which have lost around 50% of their value, this should make it a great time to buy a home.  But that’s just the theory.  It seems the reality is somewhat different.

Other Economic Factors

While it’s true that house prices in distressed areas are selling at pretty much an all-time low, if one has  no money, there is no money  no matter how cheap they are!  In other words, with high unemployment, it doesn’t matter how low property prices are plummeting, there is no capital with which to make a purchase. 

On average, a 30-year mortgage has now dropped to less than 4 percent.  But with people worried about whether or not they are going to remain in gainful employment and thus banks becoming less willing to lend money to these individuals, it becomes way harder to purchase property.  Potential buyers now have to really be put through the ringer as they are requested to produce comprehensive tax returns and income verification.

Where Florida Fits In

Unfortunately Florida is pretty typical of what is going on now vis-à-vis the challenging real estate market. People simply cannot buy homes with no jobs or if they sense severe job insecurity.  The four largest cities in Florida are at this point this right now.  Thus it seems there is quite a way to go before the Florida housing downturn encounters a real recovery.  Potential buyers – or those who should be potential buyers – are sticking to what they know and not taking any risk.  They want to make sure they have a steady income before thinking about taking out a huge loan for a house that could ultimately result in a foreclosure.

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It seems like recently in the state of Florida, the news has only been bad vis-à-vis real estate and homeowners trying to make a buck or two.  Now, thankfully, the news is changing.  And there have been some great indicators for those in South Florida looking to sell their homes.  Indeed, because there are much less foreclosed properties on the market, homeowners can name their price.  Well, not quite, but things are definitely looking up.

It’s not the case with all areas, but right now, if you want to sell, South Florida seems to be the area to be in.  According to an agent from Balistreri Realty, some homes are actually even increasing in price.  True, there are many properties still in distress, but that is just not the full picture anymore.

Fewer Foreclosures

Yes, one cannot deny the fact that there are still foreclosures in Florida, but one also has to recognize that these numbers are declining, not increasing.  For example, according to the Miami Association of Realtors, in October of last year, distressed sales were 54 percent of all sales, but this year in the same month, that figure had dropped to 48 percent.  Not great, but definitely something and for sure the figures are going in the right direction.  Likewise there was a 4 percent drop for the same time zone in Palm Beach County.

Although foreclosures and so-called short sales still account for a large part of the region's housing market, the numbers are declining.  And it seems like it is the South Florida region we can thank for that due to its increase in home sales.   As well, the housing market in Weston is doing well too, having only 10 homes that are owned by banks.  As well, in this city, between February 2009 to August 2011, there was more than a 15 percent increase in the median value of a home. 

So for the Florida housing market right now, things are not as bad as they once were.  Of course there is room for improvement, but it seems like that is exactly what is happening in the South Florida region.