If you having been making offers on foreclosed properties lately, you probably already know that competition among buyers here is South Florida has been getting intense over the course of the last four to six months. This is especially true for properties valued under $200,000.
I have have listed a number of bank owned properties this year. Also known as REOs (for Real Estate Owned). Since about April every single one of them priced under $200,000, have had multiple offers and many have been bid up well over the asking price. I had one listing in a desirable neighborhood of Deerfield Beach with an asking price of $145,000. It had 36 showings in the first 24 hours it was one the market. Cars literally clogged the road in front of it the first day. My phone rang off the hook. It had a half dozen offers and sold for cash above asking price in two days. That was in June and since then the number of REOs on the market has shrunk compared to the total number on the market. More recently, I had a bank owned condo that was listed for $48,900, sell for $58,000. Thats 19% over asking price.
I have been working with one investor who has purchased more than ten properties from me this year most of them in the same neighborhood. However, we have not had the best offer at least half the time. An associate of mine has made offers on behalf of one of his buyers for nine different properties and lost each time. Once when offering 25% over asking price!
On those same examples above I also recieved offers that were 30% and more below asking price. Clearly many of todays buyers are just out of touch with what is really going on in todays market. We are in a situation where the market is over-sold. Prices have retreated from 50% to 75% from the top of the market. Savvy investors see the opportunities out there and are making aggresive offers for cash. They are also competing with first time buyers looking for a home that may never be more affordable.
If you are attempting to purchase an REO in South Florida you are by no means alone. Be prepared to be dissapointed when you aren't the top bidder. I suggest if you are attempting to buy a foreclosure these days that you submit your highest and best offer from the very beginning. Find out what comparable properties have sold for recently and perhaps add to that whatever is within your comfort level. If you are a first time buyer be aware that you are competing with investors. Generally the banks don't favor a cash offer over a financed deal if they are the same amount, but they want to know that the borrower is fully qualified. Your pre-approval letter should state that your income, employment and credit scores have all been verified.
I have been hearing for months now that more foreclosures are on the way. No one has any way of knowing where prices will be in six to twelve months including myself. There is a lot of idle cash out there and we are at a point now where the numbers make a lot of sense to investors. I always felt that was where the eventual bottom would be. Lets hope I'm right.
Tom Day, Remax in Motion
Here is the second in a series spotlighting oceanfront condominium buildings in Pompano Beach, FL. This time the featured building is Ocean Colony located at 1620 South Ocean Blvd.
Ocean Colony was built in 1971. It is a sixteen story building. It is shaped like a large L and features one of the largest pool decks in Broward County. There are one, two and three bedroom floor plans. The three bedroom units are 1601 square feet and are all in the stack closest to the beach. The units that are lettered A, B, D, F, K, M, and P all have ocean views. The rest either face north or west.
Ocean Colony is a beautiful building that has had major renovations lately. The most important improvement to potential buyers being all the glass in the building has been replaced with impact resistant glass that eliminates the need for hurricane shutters. Owners were assessed up to $50,000 each for that one improvement alone. The lobby has been remodeled and makes an excellent impression to first time visitors.
There is a security guard on staff 24 hours per day. The amenities include a pool, community room, a well equipped fitness room, and saunas. Residents can use the tennis courts next door at Aquazul. There is a parking garage and outdoor guest parking. On each floor there is a recycling room. The units even have washers and dryers which is unusual for a building built in the early seventies.
Pets are not allowed in the building. Leasing is allowed after the first year of ownership.
Of the 201 units in the building only 5 for for sale, which is unusually low in this market of very high inventories. The residents must be happy there. Asking prices range from $245,000 for a one bedroom up to $579,000 for a two bedroom penthouse. There are no three bedroom units currently for sale. See the inventory here.
If you are thinking of buying or selling in Ocean Colony, contact me for a tour or a free market analysis.
Tom Day, ReMax in Motion
Its been ages since I've heard anything about the affordable housing crisis. At the height of the housing boom there were regular articles in the Sun-Sentinel about how ordinary folks were being priced out of living here in South Florida. Wages weren't keeping up with the sky-rocketing housing prices and so on. The median price of a single family home was often cited has unreachable by most. It topped out just below $400,000 here in Broward County.
In January 2008 according to the Greater Ft Lauderdale Asscociation of Realtors, that figure is now $305,000. The median price is the number at which half the houses sold sold for more and half sold for less. 2007 saw a drop of $14% in the median price and nearly 25% since the top. Hey everybody S. Florida Real Estate is now 25% off!
Not only that, but the median price of condominiums has dropped 18% from 198,500 to $163,700 in the past year. Thats starting to look pretty affordable to me. About two years ago I got a call from a man wanting a two bedroom condo for under $200,000. I thought he was going to cry when I couldn't find anything suitable for him. Today there is an abundance of decent two bedroom condos under $140,000.
A couple of months ago the Sun-Sentinel touched on the subject in an article and I noted it in one of my other blog posts. But I feel this deserves more coverage. Since I'm the type who prefers to see the silver lining in this dark cloud. I think its time they, and others in the media, noticed what I see. While sellers are still suffering at least first time home-buyers are getting another chance at home ownership. New arrival to Florida are also benefiting. Unfortunately, I Think misery sells more newspapers.
Tom Day, ReMax in Motion
Below is a report of all the closed condominium sales in Pompano Beach Florida east of the Intracoastal Waterway. All information was gathered from the Multiple Listing Service (MLS).
Address | Building | Beds | Baths | Oceanfront | List Price | Sold Price | % Diff | DOM | Date Sold |
111 N POMPANO BEACH BLVD #909 | SEA MONARCH | 3 | 2/1 | YES | $ 598,000 | $ 495,000 | 17% | 150 | 12/06/07 |
1010 S OCEAN BLVD #501 | POMPANO AEGEAN | 2 | 2 | YES | $ 593,900 | $ 510,000 | 14% | 224 | 12/04/07 |
1620 S OCEAN BLVD #16E | OCEAN COLONY | 2 | 2 | YES | $ 499,000 | $ 330,000 | 34% | 541 | 12/18/07 |
521 N RIVERSIDE DR #409 | SILVER THATCH IC | 2 | 2 | NO | $ 375,000 | $ 350,000 | 7% | 45 | 12/10/07 |
1620 S OCEAN BLVD #3F | OCEAN COLONY | 2 | 2 | YES | $ 349,000 | $ 315,000 | 10% | 406 | 12/18/07 |
401 BRINY AVE #401 | CHRISTOPHER HOUSE | 2 | 2 | NO | $ 326,000 | $ 290,000 | 11% | 16 | 12/21/07 |
1500 N OCEAN BLVD #503 | 1500 OCEAN CLUB | 2 | 2 | YES | $ 319,777 | $ 319,000 | 0% | 191 | 12/20/07 |
1600 N OCEAN BLVD #715 | TIFFANY GARDENS W | 2 | 2 | YES | $ 295,000 | $ 220,000 | 25% | 36 | 12/21/07 |
1520 S OCEAN BLVD #701 | OCEAN EAST | 2 | 2 | YES | $ 279,999 | $ 250,000 | 11% | 79 | 12/21/07 |
1481 S OCEAN BLVD #115A | LEISURE GARDENS | 2 | 2 | NO | $ 279,900 | $ 255,000 | 9% | 160 | 12/21/07 |
1900 S OCEAN BLVD #3K | OCEAN PLACE | 1 | 1 | YES | $ 275,000 | $ 210,000 | 24% | 365 | 12/13/07 |
405 N OCEAN BLVD #1028 | PARLIAMENT HOUSE | 1 | 1/1 | NO | $ 270,000 | $ 240,000 | 11% | 30 | 12/21/07 |
1410 S OCEAN BLVD #2S | COASTAL ARMS | 2 | 2 | YES | $ 265,000 | $ 223,750 | 16% | 69 | 12/21/07 |
1200 HIBISCUS AVE #401 | ARISTOCRAT | 2 | 2 | NO | $ 224,900 | $ 230,000 | -2% | 59 | 12/27/07 |
710 N OCEAN BLVD #512 | THE BREAKERS | 1 | 1 | YES | $ 199,900 | $ 195,000 | 2% | 44 | 12/10/07 |
1609 N RIVERSIDE DR #606 | SEACREST TOWERS | 2 | 2 | NO | $ 199,444 | $ 149,900 | 25% | 95 | 12/07/07 |
405 N OCEAN BLVD #628 | PARLIAMENT HOUSE | 1 | 1/1 | NO | $ 195,000 | $ 178,000 | 9% | 17 | 12/17/07 |
1201 N RIVERSIDE DR #7 | TWIN WATERS | 1 | 1 | NO | $ 99,500 | $ 85,000 | 15% | 494 | 12/20/07 |
The area is averaging 22 closed sales per month. There are currently 790 active listings which equal 36 months of inventory at the current rate of sales.
For previous months reports click here.
Tom Day, Re/Max in Motion
Below is a report of all the closed real estate sales in the Palm Aire Country Club community of Pompano Beach, FL. All information was gathered from the Multiple Listing Service (MLS).
Address | Type | Beds | Baths | List Price | Sold Price | % Diff | DOM | Date Sold |
492 W PALM AIRE DR #492 | TH | 3 | 2/1 | $ 495,000 | $ 450,000 | 9% | 90 | 12/27/07 |
1100 W CYPRESS DR #V-1 | VILLA | 3 | 3 | $ 265,000 | $ 250,000 | 6% | 23 | 12/17/07 |
806 CYPRESS BLVD. #504 | CONDO | 3 | 2/1 | $ 249,000 | $ 235,000 | 6% | 145 | 12/14/07 |
625 OAKS DR #807 | CONDO | 3 | 2/1 | $ 214,500 | $ 195,000 | 9% | 100 | 12/14/07 |
3850 OAKS CLUBHOUSE DR #410 | CONDO | 3 | 2 | $ 209,900 | $ 185,000 | 12% | 123 | 12/12/07 |
3980 OAKS CLUBHOUSE DR #109 | CONDO | 3 | 2 | $ 203,900 | $ 188,500 | 8% | 49 | 12/14/07 |
4191 CYPRESS REACH CT #404 | CONDO | 2 | 2 | $ 199,999 | $ 177,500 | 11% | 97 | 12/17/07 |
3980 OAKS CLUBHOUSE DR #110 | CONDO | 3 | 2 | $ 193,500 | $ 189,500 | 2% | 20 | 12/03/07 |
625 OAKS DR #1004 | CONDO | 2 | 2 | $ 189,000 | $ 189,000 | 0% | 125 | 12/14/07 |
804 CYPRESS BLVD #208 | CONDO | 3 | 2/1 | $ 179,900 | $ 166,000 | 8% | 146 | 12/18/07 |
4030 W PALM AIRE DR #207 | CONDO | 2 | 2 | $ 174,900 | $ 150,000 | 14% | 98 | 12/26/07 |
2801 N PALM AIRE DR #101 | CONDO | 3 | 2 | $ 165,500 | $ 147,500 | 11% | 53 | 12/21/07 |
4091 CYPRESS REACH CT #105 | CONDO | 2 | 2 | $ 154,500 | $ 149,000 | 4% | 117 | 12/18/07 |
2901 S PALM AIRE DR #108 | CONDO | 2 | 2 | $ 139,999 | $ 128,500 | 8% | 24 | 12/10/07 |
2650 S COURSE DR #107 | CONDO | 1 | 1/1 | $ 129,700 | $ 121,500 | 6% | 168 | 12/06/07 |
In 2007 there were a total of 212 units sold. Which equals an average of 18 units per month. There are currently 357 properties for sale in Palm Aire Country Club. With that much inventory we have a 20 month supply at the current rate of sales. In December of 2006 the average sold price in Palm Aire was $224,275. In December 2007 the average price declined to $198,000. This is a drop of 13% from the prior year.
The good news is inventories have started to decline. At the beginning of 2007 there were approximately 400 units for sale. This doesn't mean prices are going to begin to rise any time soon, but they may start to stabilize if the inventories continue to decline.
For previous monthly reports click here.
Tom Day, Re/Max in Motion
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