Amanda Wilson

NOT IN MIAMI

(Includes Broward, Miami-Dade and Palm Beach Counties)

Realtors at EWM in South Florida had the pleasure of attending a Breakthough 2012 session with Steve Harney. Steve is a nationally acclaimed speaker, trainer and coach, who was recognized in 2010 as one of the 100 most influential leaders in real estate (Inman News).

Steve’s mantra was “NOT IN MAIMI” (which area includes Broward, Miami-Dade and Palm Beach countries). Will prices go down in many parts of the country? The answer is yes, but NOT IN MAIMI. With his many charts and graphs, Steve explained and showed how South Florida has stabilized, unlike many other parts of the country.

Let’s look at some of Steve Harney’s charts:

1. Month’s Inventory of Homes for Sale: Real estate is all about supply and demand. The less supply, the more the demand. As you will note from the graph below, inventory is DOWN!

2. Pending Home Sales: UP!

1. Prices for South Florida: Prices are DOWN, too, as are interest *rates. These are favorable conditions for home buyers and for move-up sellers.

SEE the Difference—Prices are rolled back to 2002,

but the interest rate is much LOWER! Cost is DOWN.

1. Where’s the shadow inventory? NOT IN MAIMI, as you can see from the chart below:

1. What is the return on investments? Real estate wins over the last decade.

1. What is the projected rate of appreciation for real estate? See chart below. The South Florida area could see a better than expected rate of appreciation. Believe it or not, many baby boomers still have money in their 401/retirement accounts and would enjoy moving to a warmer climate. Beginning January 1st, 2011 every single day more than 10,000 Baby Boomers will reach the age of 65. That is going to keep happening every single day for the next 19 years. There are 79 million Baby Boomers, making up a quarter of the US population, according to the Pew Research Center.

7. When is a good time to buy? TODAY!

And, lastly, what would Warren Buffet say--

Sapphire is a pet-friendly condo complex located on Fort Lauderdale Beach between the blue waters of the Atlantic Ocean and the scenic Intracoastal Waterways at 2821 and 2831 N. Ocean Boulevard. Sapphire consists of two towers (North and South) built in 2009. The two luminous towers showcase contemporary architecture with accents of blue glass and stainless steel and consist of 86 condo units. All units include 2 or three bedrooms.

The Developer is Altman Corporation and has developed over 13,000 units through the Eastern United States. Sapphire’s amenities are created by award-winning Interior Designer Steven G. and features striking finishes. As you enter into Sapphire, you quickly notice the dramatic lobbies of iced blue walls and timeless architectural elements that rival those of a modern, yet sophisticated beach resort.

Units feature:

• Private Balconies
• Oversize impact-resistant windows and balcony doors
• Stunning water views
• Washer and dryer in each residence
• Contemporary European-style kitchens with granite counters and stainless steel appliances
• Marble master baths
• Pre-wired for high-speed internet and cable
• Safety senor for sprinklers
• Individual, energy-efficient climate controls

Amenities Include:

• 24-hour Valet
• 24-hour attended lobby and closed circuit TV
• Tropically inspired sun deck with 25-meter pool with spa and private cabanas
• State-of-the-Art Fitness Center with aerobic/yoga studio
• Locker Rooms with steam rooms, sauna and treatment spaces
• Business Center with conference room and high-speed internet access
• Laundry and Dry Cleaning Service available
• Housekeeping service available
• Wine and card room
• Club House with flat-screen TVs and catering kitchen
• Pet Walk Area/Pet-friendly building—Two pets of any size allowed with certain breed restrictions.

Sapphire is the newest Fort Lauderdale Beach condominium and is in a perfect location for you to take advantage of South Florida’s entertainment, dining and shopping areas. It’s just steps away from the sandy beaches, Las Olas Boulevard, Galleria Mall and Downtown Fort Lauderdale.

Sapphire is also the Winner of the City of Fort Lauderdale Community Appearance Awards Property of the Year and Best Multifamily Highrise 2011.

All Current Resale Units Available Include:

• 2821 N. Ocean Blvd., #604S—$799,000—2 bedroom/2 bath with den consisting of 1,700 square feet with ocean view.
• 2831 N. Ocean Blvd., #404N—$530,000—2 bedroom/2 bath with den.
• 2821 N. Ocean Blvd., #406S--$465,000—2 bedroom/2 bath with 1,274 square foot.

To Today, Clear Capital (a leading provider of intelligent valuation solutions for the mortgage and lending industries) released its monthly Home Date Index Market Report, which contains a small degree of pure optimism.

In 2012, Clear Capital is forecasting U.S. home prices to show continued stabilization with a slight gain of 0.2 percent across all markets. That would put national home prices near levels not seen since 2001. If this prediction rings true, it would be the first time since 2006 that prices have landed in a positive direction.

Counting Broward and Miami Dade counties as one metro area, Clear Capital predicts this area is to be among the nation’s five highest-performing metros in terms of price growth this year. Prices are expected to see a slight upward movement in 2012.

From Clear Capital's year-end report:

The exceptional growth in these (Florida) markets can be a result of several factors, including being hit especially hard in the downturn. While fighting back, they remain significantly off their highs of 2006. Other factors in play in these markets include large increases in the values of their lower priced homes (near double-digits for all markets) when compared to higher priced segments of the market, and a high percentage of all cash transactions (51.8%) when compared to other metros. This indicates a high degree of investor activity as they look for bargains in the region, driving up demand.

“Overall, 2011 was a relatively quiet year for U.S. home prices compared to the last five years,” Alex Villacorta, director of research and analytics at Clear Capital, said in a statement. “With national prices down a little more than two percent for the year and sitting at their lowest point since 2001, our projections show that the current balance the market has found will continue through 2012.

To read the full report, please go to: http://nashvillepost.com/sites/default/files/attachments/66708/2012%2001%20Clear%20Capital%20forecast.pdf

The newest and latest idea from Chairman Bernanke:

"The government should consider helping the nation's vacant, unsold stock of foreclosed properties by supporting initiatives to occupy. Federal Reserve Chairman Ben Bernanke believes that one aspect should be a government support program that allows renters to move into those houses." (Morning Edition--Housing Wire 1/5/12)

The problem with this idea is most of the foreclosure properties ARE unihabitable--in some instances, the banks don't even want to deal with these properties. The best idea and preventative measure may have been keeping families IN their homes through loan modification programs that really work and/or reductions on their mortgage amounts! Actually, these two ideas may have been more favorable for the big banks, for government and for the country.

Is this truly too primitive an idea for Chairman Bernanke and the banks to understand?

Five Real Estate Trends for 2012

1. Buyers Will Return—In 2011, a lack of consumer confidence in the economy dramatically impacted the housing market. Many buyers were fearful to purchase any big ticket item. As 2011 came to an end, consumer confidence began to return and sales increased. Economic conditions and consumer sentiment will continue to improve during this election year.

2. Foreclosures Will Increase—The ‘shadow inventory’ of foreclosures will finally hit the market. Distressed properties sell at discounted prices. But, remember, big bargains require a lot of work and many buyers are not willing to invest the time and money for discounted properties. However, they will impact the housing values of the non-distressed homes in the area.

3. Prices Will Soften—As more foreclosed homes come to market, there will be a slight downward pressure on the values of houses; however, home-price declines may be limited to a 3-5% and 2012 will be the year that prices finally stabilize—setting the stage for small gains in 2013. More desirable neighborhoods will be the first to stabilize. In November, 2011, Broward County’s median home price was $195,600—an 18% increase from a year ago!

4. Short Sales Will Increase—The banks appear to be taking more preventative measures to ease the short sale requirements, which will keep these homes out of the foreclosure process.

5. Interest Rates Will Remain Low—Until the economy gets back on track, interest rates will remain low. If you have the money or can borrow the money, homes are affordable!

Th The New Year message is to remain positive.