The South Florida residential real estate market is at bottom and likely to experience some appreciation within a year, the National Association of Realtors Chief Economist Dr. Lawrence Yun said.
"I think the prices have already pretty much bottomed in the South Florida market," Yun said. "The rest of the country is more difficult to say but I think here, given the buyers, the prices have already bottomed in Florida."
Yun made the declaration (Watch The Video) on June 11 during a keynote address to a lunch crowd of the International Real Estate Congress and Expo. The event was hosted by the Realtors Association of Greater Miami and the Beaches at the Biltmore Hotel in Coral Gables.
Yun's keynote address preceded a panel discussion on the South Florida real estate market with Peter Zalewski, founder of Condo Vultures® LLC; Rei Mesa of Prudential Florida Realty; Oliver Ruiz of Fortune International Realty; and Ron Shuffield of EWM.
Given the growing number of residential deals occurring in South Florida despite no readily available financing, Yun projects that today's buyers could actually realize some home price appreciation as soon as next year when credit is expected to be available once again.
"Soon you will reach the point of equilibrium where home prices begin to show growth," Yun said. "It is always difficult to precisely predict. I think that many people who are buying today in this month - June of 2009 - if they look back a year from now in June 2010, I think many people will see that they have actually gained in equity."
Yun cautioned that the South Florida market conditions - a diverse community with limited developable land, attractive weather, and an international appeal - give the region an advantage over many other areas in the United States.
"There will be some premium attached to Miami, in relation to say Atlanta, Birmingham, and others," Yun said. "So the price point in Miami will be much stronger when compared to other, say, southern states across the country or even say the rest of America. For that reason, I am very hopeful that currently it is an undervalued market.
"Buyers are recognizing [that]. Sales up about 100 percent from one year before."
Yun's comments come a month after national real estate analyst Jack McCabe of McCabe Research & Consulting in Deerfield Beach, Fla., told CondoVultures.com that he thinks South Florida residential prices are within 15 percent of the bottom.
McCabe, who began warning of a Florida housing bust in 2005, projects the South Florida residential real estate bottom will be reached by the summer of 2010.
"I think the worst is behind us, but I still believe we have another 10 to 15 percent drop because of the unemployment and the foreclosures depressing prices, and the amount of inventory we have yet to absorb," McCabe told CondoVultures.com.
Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence ReportTM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures DatabaseTM or our Video Gallery. Our new books, the Official Condo Buyers Guide to MiamiTM , Miami's Great Condo Crash: A Chronicle of the Boom and BustTM , and First-Time Home Buyers Guide To South FloridaTM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure DatabaseTM.
Copyright © 2009, Condo Vultures® LLC
Looking to invest in South Florida residential real estate but not sure where rental rates are heading? Struggling to find a double-digit cap rate to justify an investment?
Many of these questions will be addressed by a five-member panel of South Florida experts convening between 5.30 pm and 8 pm tonight, June 16, to discuss "Rental Rates and the Quest For Double Digit Cap Rates" at the Doubletree Grand Hotel just north of Downtown Miami. The program features a networking session, panel discussion, and question and answer period with the panel.
Condo Vultures® principal Peter Zalewski will moderate the discussion about the current and future trends in South Florida's rental market from an investor's perspective.
Joining Zalewski on the panel are:
- James Donnelly, the president and chief executive of the Castle Group condo association management company;
- Jack McCabe, a national real estate analyst with McCabe Research & Consulting;
- Alan Ojeda, developer of the Miami high-rise rental tower One Broadway;
- and Raul Valdes-Fauli, Miami-Dade County president of CNL Bank.
For more information, please visit the Upcoming Events page at CondoVultures.com or call 800-750-0517.
Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence ReportTM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures DatabaseTM or our Video Gallery. Our new books, the Official Condo Buyers Guide to MiamiTM , Miami's Great Condo Crash: A Chronicle of the Boom and BustTM , and First-Time Home Buyers Guide To South FloridaTM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure DatabaseTM.
Copyright © 2009, Condo Vultures® LLC
BY ERIK BOJNANSKY
Special Correspondent
CondoVultures.com
Happy days are here again, acclaim Realtors and analysts interviewed by CondoVultures.com, as recent data suggest a significant increase in South Florida home purchases and a decrease in residential inventory.
Well, maybe relief and cautious optimism are better descriptions of how many Florida real estate agents are currently feeling.
South Florida's inventory of condos, townhouses and single-family homes has fallen by nearly 24 percent in seven months. On Nov. 24 there were 107,527 residences available for resale. As of June 15, there were only 82,047 -- a reduction of 25,480. Meanwhile pending sales in South Florida have increased by more than 68 percent between November 24 and June 15 from a total of 9,302 to 15,645, according to a new report released by CondoVultures.com.
"There is a percentage of the population that believes the bottom of the market has hit," said Jeff Morr, CEO of Majestic Properties. "Sales are way up."
Brian Paul, CEO of the Realtors® Association of the Palm Beaches , credited low home prices and the $8,000 federal tax credit for first-time home buyers for the increased buying trend, especially among those who couldn't afford buying a condo or a house two years ago. The prospect of rising interest rates has only increased the pace of home-buying, Paul said.
"Housing is affordable again," Paul said, "People are recognizing that and are getting into the market before they are priced out."
Situations are popping up where investors can, in some cases, collect more on rent than the property actually costs on a monthly basis. A five-person panel is scheduled for Tuesday, June 16, to discuss "Rental Rates and the Quest For Double-Digit Cap Rates" at the Doubletree Grand Hotel just north of Greater Downtown Miami.
Read More
Are you a first-time home buyer who wants to take advantage of the deep discounts and the Obama $8,000 tax credit but are feeling overwhelmed by the process?
Are you unsure about which, if any, of the newly created local, state, and federal programs you qualify for?
Condo Vultures® had you in mind when it created the newly published First-Time Home Buyers Guide To South FloridaTM.
This 18-page eBook features a collection of articles about the process, pointing out the dos and don'ts in making your first home purchase.
For more information about the First-Time Home Buyers Guide To South FloridaTM, please visit the eBooks page of CondoVultures.com.
Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence ReportTM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures DatabaseTM or our Video Gallery. Our new books, the Official Condo Buyers Guide to MiamiTM , Miami's Great Condo Crash: A Chronicle of the Boom and BustTM , and First-Time Home Buyers Guide To South FloridaTM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure DatabaseTM.
Copyright © 2009, Condo Vultures® LLC
Dr. Lawrence Yun, chief economist of the National Association of Realtors, and Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC, will participate on a panel discussion on the state of the South Florida real estate market .
Yun and Zalewski are scheduled to speak at the Realtors Association of Greater Miami and the Beaches' International Business Luncheon between noon and 2 pm June 11 at the Biltmore Hotel in Coral Gables.
Rei Mesa, Prudential Florida Realty; Oliver Ruiz, Fortune International Realty; and Ron Shuffield, Esslinger - Wooten - Max well, Inc., are also scheduled to appear on the panel. Matt Haggman, an award-winning journalist with The Miami Herald will serve as moderator.
The luncheon is a highlight of the 14th International Real Estate Congress and Expo that draws a multinational audience from the Realtors Association of Greater Miami and the Beaches and its partners including SECOVI-SP and FENACI in Brazil, and FNAIM France.
"We are proud to be able to bring high-caliber speakers and programming to address international real estate trends and opportunities in South Florida," said Teresa King Kinney, RAMB Chief Executive officer, in a statement.
For those who can't attend the luncheon, Zalewski is scheduled to moderate a June 16 panel discussion entitled "Rental Rates and the Quest For Double-Digit Cap Rates" at the Doubletree Grand Hotel just north of Greater Downtown Miami.
Participating in the panel discussion, entitled "Rental Rates and the Quest For Double Digit Cap Rates", will be moderator Zalewski of Condo Vultures® along with:
- James Donnelly, president of the Castle Group condo association management company;
- Jack McCabe, national real estate analyst of McCabe Research & Consulting;
- Alan Ojeda, developer of the new Miami high-rise rental tower One Broadway;
- and Raul Valdes-Fauli, Miami-Dade County president of CNL Bank.
Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence ReportTM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures DatabaseTM or our Video Gallery. Our new books, the Official Condo Buyers Guide to MiamiTM , Miami's Great Condo Crash: A Chronicle of the Boom and BustTM , and First-Time Home Buyers Guide To South FloridaTM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure DatabaseTM.
Copyright © 2009, Condo Vultures® LLC
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