Miami Real Estate Market Gains Strength

Sales of existing condominiums in the Miami Metropolitan Statistical Area (MSA) increased 54 percent, from 855 to 1,316, compared to June 2010 but decreased seven percent compared to the previous month, according to the 24,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) systems. Sales of existing single-family homes rose 35 percent in June, from 686 to 923, and six percent compared to the previous month.

In June, 59 percent of closed sales were cash transactions. Cash sales accounted for 39 percent of single-family and 73 percent of condominium closings.

Statewide sales increased eight percent to 7,941 for condominiums and dropped four percent to 17,597 for single-family homes.

Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops decreased 0.8 percent from May and remain 8.8 percent below June 2010, according to the National Association of Realtors (NAR).

“The Miami market has taken a lead position in sales growth and strengthening compared to the rest of the nation,” said Jack H. Levine, 2011 Chairman of the Board of the MIAMI Association of REALTORS. “Current levels of supply and demand denote a healthy market that is expected to outperform others throughout the U.S. long-term. The demand from foreign buyers and investors, the expansion of the Panama Canal, and the vibrant tourism industry are just some of the factors that are expected to have positive effects on the local economy and real estate marketplace.”

Read more of Jonathan Hodgson’s article

Coldwell Banker CARES Golf Classic

September 16th, Doral Golf Resort & Spa

Join Coldwell Banker Sales Associates and South Florida businesses at the First Coldwell Banker CARES Golf Classic which is scheduled for Friday, September 16. The Tournament will take place at the legendary Doral Golf Resort & Spa on the Great White Course, a Greg Norman Signature Course. Beginning at 7am, Player Registration fees cover Green fees/cart fees, individual goody bag, continental breakfast, post tournament BBQ buffet and access to the cares silent auction and raffle.

“This is our biggest fundraiser for the year and we are thrilled at the opportunity to raise thousands of dollars for local charities throughout Miami Dade,” said Judy Campo, CARES Manager for Coldwell Banker in the Southeast region.

Since 2001, over $3 Million has been raised and distributed to a wide array of non-profit educational, health, welfare, environment and cultural organizations.

To sign up as a player or sponsor, please contact Ronald Koffler at 305.588.6768 or Ronald.Koffler@floridamoves.com.

Happy Birthday Coldwell Banker!

Coldwell Banker Real Estate LLC celebrates its 105th birthday, reflecting on the history of the brand and the changes to the real estate industry since the founding of the company on August 27, 1906 in San Francisco.

“As a brand, Coldwell Banker has navigated the real estate industry during two World Wars, the Great Depression and countless recessions,” said Jim Gillespie, chief executive officer, Coldwell Banker Real Estate LLC. “While the world and our industry are in a different place now than 105 years ago, the dream of homeownership is still alive and vital.”

Coldwell Banker was founded by Colbert Coldwell, and later Arthur Banker, in San Francisco, California to bring ethics and integrity to a real estate industry that had lost its way after the 1906 earthquake. Out of the ashes of a severe earthquake, Colbert Coldwell and Arthur Banker built the company from the ground up and began a legacy of excellent service for people buying or selling homes. Coldwell Banker Real Estate employees at the company’s headquarters in Parsippany, N.J., celebrated the occasion with a festive cake designed to reflect the company’s commitment to innovation and the development of new technology.

“We believe Coldwell Banker agents are the best in the real estate business and they exemplify that strong heritage of ethics and integrity established by Colbert Coldwell and Arthur Banker,” said Budge Huskey, president and chief operating officer, Coldwell Banker Real Estate LLC. “Coldwell Banker continues to advance the brand, and the industry, through innovation and technology that helps people find information about homes anytime and anywhere.”

As an innovative leader in real estate, Coldwell Banker has launched various new tools and apps over the past year that bring consumers fun and informative ways to engage in the home buying and selling process. Some of these include a new Real Estate App for iPad, On Location videos that provide a look into different neighborhoods from the comfort of home, as well as new tools for homebuyers in the properties section of coldwellbanker.com.

Housing Affordability Hovers Near Record Level

Families earning the national $64,200 median income could afford 72.6% of all homes sold in the second quarter of 2011, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). Nationwide housing affordability hovered for the 10th consecutive quarter near its highest level in more than 20 years.

Homeownership is within reach of more households than it has been for more than two decades and interest rates remain at historically low levels. While the economy and tight credit conditions remain significant obstacles, many housing markets across the country have stabilized and are beginning to show signs of recovery.

What’s the affordability status of your neighborhood? Have price reductions made local properties more affordable, enabling current homeowners to sell, trade-up or relocate?

Ocwen unveils new principal reduction program

Ocwen Financial Corp. (OCN: 12.76 -1.47%) launched a new modification program to reduce the principal on a mortgage for delinquent borrowers, while compelling them to share in the future appreciation of the home's value with the investor.

Mortgage modifications will only be available for homeowners in negative equity.

Atlanta-based Ocwen holds a $74 billion servicing portfolio after acquiring Litton Loan Servicing and HomEq. Ocwen launched the Shared Appreciation Modification program as a pilot in August 2010, a program the company believes will make a major dent in the roughly 14 million mortgages currently in negative equity, according to Moody's Analytics.

Through the program, Ocwen will write down qualified loans to 95% of the underlying property's market value. The amount written down is forgiven in one-third increments over three years as long as the homeowner remains current. When the house is later sold or refinanced, the borrower will be required to share 25% of the appreciated value with the investor.

"Like all modifications, SAMs help homeowners avoid foreclosure. But they also restore equity. That's a significant benefit to the customer and, we believe, the economy and housing market. Psychologically, it's important too," said Ocwen CEO Ronald Faris. "Our analytics tell us that an underwater mortgage is one-and-a-half to two-times more likely to default than one with at least some positive equity." Read more:

What do you think about this program?

Coldwell Banker office hiring for 12 positions

Kate Rossi, NRT LLC's executive vice president, says the hiring means more support for the group's companies.

HERALD-TRIBUNE ARCHIVE / 2010 Staff Report

In the category of every little bit helps: Coldwell Banker Residential Real Estate Inc. is hiring 12 new employees for its Southeast Regional Support Center in this region.

The center -- providing back-office support services for three NRT brokerage companies operating under the Coldwell Banker name in Florida, Atlanta and Dallas-Fort Worth -- recently added Coldwell's Baltimore and Washington, D.C., companies to its base.

The Sarasota County operation provides marketing, finance, human resources, relocation, property management, facilities management and information technology services.

The relocation division handles more than 40,000 referrals each year, more than any other relocation division in the world, NRT says.

"This strategic expansion increases the resources available to each of our companies," said Kate Rossi, NRT LLC's executive vice president.

Job seekers can visit www.realogy.com, the home page for NRT and Coldwell's parent, for information and job postings.

Miami Real Estate Market Shows Most Activity in 5 Years

Increased sales activity and slowly rising prices have had a positive impact on Miami’s current residential real estate market according to the new Douglas Elliman Report: Miami Sales 2Q 2011. The comprehensive and timely report analyses regional data on condos and single-family homes in Miami-Dade’s coastal communities and has been expanded to include a breakdown on distressed and non-distressed sales — defined as foreclosure and short sales. The report was commissioned by Douglas Elliman and produced by Miller Samuel, a long-trusted industry source.

“We’re pleased to note that the Miami non-distressed real estate market is beginning to stabilize after years of decline,” said Vanessa Grout, President and CEO of Douglas Elliman Florida. “This has been the most active market since 2006 and there are indications that prices, while mixed, will continue to trend higher in favored areas.”

The South Beach submarket is especially notable with both closed prices and sales up compared to the prior quarter. In Miami Beach and Downtown Miami, sales jumped as prices fell. In North Miami-Dade prices were mixed while the number of sales was up sharply. The high number of all-cash buyers is especially significant: They account for 78 percent of condo distressed sales, (presumably for investment) while in the non-distressed market, all-cash buyers, (mainly looking for second-homes) account for 71percent of purchases in the high-end condo market.

Read the full News Junky Journal article by Jonathan Hodgson

HUD: Apply Now for Sustainable Housing Money

U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan announced that $95 million is available to support local initiatives to expand housing choices, improve connections between employment centers and homes, and reduce barriers to creating economically vital and sustainable communities.

HUD’s Office of Sustainable Housing and Communities oversees the Regional Planning and Community Challenge Planning Grant Program. Communities apply for the grants, which are awarded competitively.

This year’s program encourages grantees to support regional planning efforts that integrate housing, land-use, economic and workforce development, transportation and infrastructure developments that work together to revitalize a community. The program places a priority on partnerships – the collaboration of arts and culture, philanthropy and innovative ideas to the regional planning process.

There are two funding categories:

Group 1 funds: Used to support the preparation of regional plans for sustainable development.

Group 2 funds: Used to support efforts to modify existing regional plans so that they’re in accordance with the Partnership for Sustainable Communities.

Read more

Florida Consumer Confidence Up in July

South Florida Business Journal reports that consumer confidence in Florida rose two points in July, to 68, according to a new University of Florida survey.

Four of the five components that make up the index increased or remained unchanged. The biggest improvement was in confidence to purchase big-ticket items such as cars and appliances, which rose five points, to 77.

“Some of this may have to do with declines in gas prices during the month of June and much of July,” said Chris McCarty, director of the Bureau of Economic and Business Research. “This leaves more money in people’s budgets for other purchases.”

Read the full South Florida Business Journal article.

West Palm event to help troubled homeowners

Struggling homeowners in South Florida will have yet another opportunity to get a handle on options that don’t include foreclosure, reports Paul Owers of the Sun-Sentinel.

A free event will be held Aug. 19 in West Palm Beach at the Palm Beach County Convention Center. Fourteen large lenders will be in attendance, along with non-profit housing counseling groups.

The workshop, from 11 a.m. to 7:30 p.m., is sponsored by the nonprofit group Hope Now Alliance. It sponsored a similar event last year in West Palm with nearly 1,100 homeowners in attendance. A seminar in Hollywood last month drew about 1,300 people.

Some homeowners at these events get loan modifications on the spot. For a full list of what documents to bring, visit HopeNow.com or call 888.995.HOPE.

Home prices rise slightly

After a nine-month plunge to new recession lows, South Florida home prices ticked upward in May as a rush of springtime buyers boosted values, according to Standard & Poor’s Case-Shiller 20-city housing index released Tuesday.

Home prices in the region including Miami-Dade, Broward and Palm Beach counties rose 1.2 percent between April and May, after falling 0.2 percent in April. Analysts believe the increase is mostly due to seasonal fluctuations and a strong spring buying season.

Read more of Toluse Olorunnipa’s report.

Miami Real Estate Market Gains Strength

Sales of existing condominiums in the Miami Metropolitan Statistical Area (MSA) increased 54 percent, from 855 to 1,316, compared to June 2010 but decreased seven percent compared to the previous month, according to the 24,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) systems.

Sales of existing single-family homes rose 35 percent in June, from 686 to 923, and six percent compared to the previous month.

In June, 59 percent of closed sales were cash transactions. Cash sales accounted for 39 percent of single-family and 73 percent of condominium closings.

Statewide sales increased eight percent to 7,941 for condominiums and dropped four percent to 17,597 for single-family homes.

Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops decreased 0.8 percent from May and remain 8.8 percent below June 2010, according to the National Association of Realtors (NAR).

“The Miami market has taken a lead position in sales growth and strengthening compared to the rest of the nation,” said Jack H. Levine, 2011 Chairman of the Board of the MIAMI Association of REALTORS. “Current levels of supply and demand denote a healthy market that is expected to outperform others throughout the U.S. long-term. The demand from foreign buyers and investors, the expansion of the Panama Canal, and the vibrant tourism industry are just some of the factors that are expected to have positive effects on the local economy and real estate marketplace.”

Read more of Jonathan Hodgson’s article

Real Estate Market to Receive Momentum from Gen Y

Generation Y may help lead recovery for the real estate market.

The housing market has not received much positive news lately, as home prices remain low and distressed properties continue to make up a large portion of current inventories.

However, a new report says there will be improvements in the real estate market during the next decade, and these gains will be driven by well-educated individuals who are currently between 15 and 32 years old.

According to the University of Southern California Lusk Center for Real Estate, the age range, also known as Gen Y, is quickly becoming a larger representation of the country's population, rivaling the Baby Boomers.

Read the full article by Kay Lynn Clay.

New Grant for Military First-Time Homebuyers

A new program offers financial assistance to first-time homebuyers who are veterans or active-duty military members. The Pentagon Federal Credit Union Foundation, a nonprofit national organization, offers the program through its Dream Makers program.

Active duty personnel, veterans, retired members of the military and employees of the U.S. Department of Defense and the Department of Homeland Security may be eligible for a grant up to $5,000 to use toward downpayments and closing costs if buying their first home. The grants can be applied to a mortgage issued by any financial institution.

“Members of the military often put off buying a home early in their careers because they’re moving around the country a lot,” says Kate Kohler, chief operating officer for the PenFed Foundation. “We want to make sure they have resources to add immediate equity into their home when they decide to buy.”

To view eligibility requirements, visit Pentagon Foundation.

How Many Homebuyers Have a 20% Down Payment?

Submitted by Clark W. Toole III, President, Coldwell Banker Residential Real Estate and Coldwell Banker Commercial NRT, Florida

If changes proposed by Congress to the Qualified Residential Mortgage (QRM) under the Dodd-Frank Act are enacted, potential homebuyers seeking mortgage financing will need a 20% down payment to buy a home. Based on NAR estimates, a family with a median household income would need more than a decade to save a 20% down payment.

This will limit mortgage eligibility to a tiny sliver of potential buyers in today’s housing market, significantly lowering home sales and further reducing home prices throughout our market and the nation. Imposing a minimum 20% down payment, stringent debt-to-income ratio requirements and rigid credit standards will deny millions of Americans access to safe, low-cost mortgages, according to Coldwell Banker Residential Real Estate’s parent company, Realogy, and the National Association of Realtors® (NAR).

Regulators must reconsider the proposed down payment increase, as mortgages will also carry higher interest rates and fees, making homeownership more expensive or unattainable for many of today’s aspiring homeowners. As a leading advocate for accountability in homeownership, Coldwell Banker and Realogy agree with Congress’ intent to enact effective lending policies, as strong evidence suggests responsible lending standards and documentation ensuring a borrower’s ability to repay have the greatest impact on reducing lender risk, even more so than large down payments.

This proposed standard should be revised, enabling millions of hard-working, creditworthy consumers to achieve the “American Dream” of owning a home. Repeat buyers generally use the proceeds from their previous home sale to fund their subsequent purchase. However, the proposed large down payment requirements would undermine trade-up buyer efforts as fewer first-time buyers would be able to enter the market. This forces potential trade up buyers to stay in place, rather than selling their homes. As baby boomers begin to downsize, this impediment could stop the home buying and selling plans of a large segment of the population and reduce workforce mobility.

Realogy Corporation, the parent company of Coldwell Banker, has filed comments with the six regulatory agencies responsible for drafting rules regarding Qualified Residential Mortgage (QRM) under the Dodd-Frank Act. “We believe the current QRM definition that includes a down payment requirement of 20% would create unduly tight credit standards and place homeownership out of reach for millions of potential buyers,” said Richard A. Smith, president and CEO, Realogy Corporation. “This was not the intent of Congress when the Dodd-Frank Act was passed, and we remain hopeful that the regulators will make a course correction, wisely choosing not to damage an already fragile housing market.”

New Modification Program

Ocwen Financial Corp. (OCN: 12.76 -1.47%) launched a new modification program to reduce the principal on a mortgage for delinquent borrowers, while compelling them to share in the future appreciation of the home's value with the investor. Mortgage modifications will only be available for homeowners in negative equity.

Atlanta-based Ocwen holds a $74 billion servicing portfolio after..... Read more:

What do you think?

Do You Really Want A Listing Agent To List Your Home?

By guest contributor Judy Campo, Manager, Coldwell Banker Residential Real Estate, Coconut Grove office

Understandably, you’d answer with a question, “Whom else, a Buyer’s Agent?” The correct answer is “You want a marketing agent!”

A listing agent does just that; they list a home that consumes about an hour’s worth of paperwork and hits ‘send’. The home appears on the MLS among the many thousands of other homes listed, waiting to be found by a buyer through Realtor.com or a Realtor searching for a home with specifications. Sure they work hard. There may be open houses and multiple showings. But after about two weeks of being listed, the party seems to be over, doesn’t it?

What you want is a marketing agent like The Cherry Group. All Realtors can list a home, but marketing it at the highest level and as a commodity is what marketing agents do. A marketing agent’s disciplined approach embodies these classical marketing principals:

1. PRODUCT –When the house goes on the market, it becomes a product until it is a home for the next buyer. Marketing agents determine what the unique selling proposition is. What sets your home apart from the other comparable homes? It could be location, architecture, finishes, a special room or, in the absence of anything really special, the element setting the home apart from the pack would be price. It simply has to be “The Best Deal in Town” or the least expensive price per square foot.
2. PRICE – By utilizing the latest software to generate a CMA and then visiting the home, a Realtor can nail the asking and probable sales price. Motivated sellers should listen to their realtors and take their pricing advice. Once the three basic principals of real estate sales were location, location, location – now it’s price, price, price.
3. CUSTOMIZED PRESENTATION – Marketing agents take your home to the highest level to get your home sold quickly and at the highest price. Choose an agent with an eye towards attention to detail and formatting to attract Buyers and their agents, beginning with the best professional photography and floor plans. Close to 90% of all buyers begin their searches for homes well in advance of contacting a Realtor. The unique selling proposition is always made apparent and is never meek or esoteric.
4. PLACEMENT – Coldwell Banker has almost 400 Internet Partners. The company has offices throughout the US and in 50 countries. Should your property be a luxury home, listed for over one million dollars, the companies luxury home division, PREVIEWS, is the oldest luxury real estate brand in the world and a special publication is periodically mailed to 60,000 high-end homes in Florida alone.

If you plan to list your home for sale, ask the Realtors applying for the job what kind of agents they are. If they say a “Listing Agent”, it’s the wrong answer. Look for a Marketing Agent.

Mastery of the process

By Guest Contributor Carlos Lobato, Sales Associate, Coldwell Banker Residential Real Estate, Miami Lakes office

The real estate brokerage industry has gone through some dramatic changes in the seven years that I've been privileged to participate in it. And quite often, the acceptance of these changes could be marked by the industry-wide kicking and screaming as we struggled to accept, innovate, and keep up. Yet nothing has had more dramatic an effect on the way we do business as the advancement of technology.

In the early 1990's, only 10-15% of buyers started using the internet as a primary search tool. And my industry was shaking in its pants! After all, we were the keepers of the information. If you wanted to know anything about what homes were on the market, when they sold, what they sold for, or even to get access to them; you had to come to us. Then all of a sudden.....OMG! If the consumer now had access to all of this information, then what did they need us for? Even though I wasn't a Realtor at the time, I distinctly remember op-eds talking about the end of the real estate brokerage industry as we knew it. Needless to say, these gloom and doom scenarios never materialized. But, we don't even have to go back that far.

The transaction itself is quickly turning into a paperless affair. For example, Coldwell Banker's Homebase system takes the entire transaction online giving all parties online access to all pertinent information and documents. And as expected, some agents are balking at having to turn over pertinent paperwork and/or information about their clients.

Reality check: We will never again be the keepers of the information. And our value to the public that we're so privileged to serve lies not in some fictional proprietary claim to John Does' phone number and email address.

Our value is derived from the mastery of the process!

Affluent Buyers Reviving Market for Miami Homes

MIAMI — South Florida is the default capital of the country. Here in Miami-Dade County, one out of five households with mortgages is in foreclosure. Nearby Broward and Palm Beach counties are not far behind. Nearly 200,000 South Florida families are stuck in the mire of default.

And yet much of Miami is gripped by a housing mania as the oversupply of distressed homes dries up and foreigners and investors swoon. Only a few years after it seemed there were so many unwanted high-rise condominiums that the only solution was to tear some of them down, there are plans to build even more.

Home sales in the metropolitan area during the first half of the year rose 16 percent from 2010 for the best spring since 2007, according to the research firm DataQuick, far outpacing the negligible growth in the rest of the country. Two-thirds of the sales were all cash.

Prices, after a brutal drop, are firming up or even increasing. During the first six months of the year, there were 439 sales for at least $2 million, up 13 percent from last year.

“People thought it would take at least a decade to get back to this point,” said Peter Zalewski, founder of Condo Vultures, a real estate consultant.

For the full New York Times article by David Streifeld