Miami Real Estate by Land and Sea

Take a look at the above graph.  Anything jump out at you?  Hmmm, perhaps the Jolly Green Giant?  What is that you ask?  It's the number of single family homes in the $100,000 to $250,000 that have sold in 2009 which were REOS (bank owned foreclosures).  This is the overwhelming largest property type that has sold so far in 2009.  Nearly 2/3 of all of the properties closed in 2009 have been foreclosure and of those, the largest majority by far closed for $100,000 to $250,000 sold price range.  Although a few of these properties had Dade County appraised market values of up to $600,000, most had a Dade County market value of +- $250,000, still good deals, but not overwhelming steals.

This also shows that "regular" sellers in any of the price ranges up to $500,000 have to compete head to head with foreclosures and short sales, but those over $500,000, especially at the higher price points, do not.  They do, however, still have buyers out there with the "I have to get a deal" mindset, but at least there are banks willing to feed them what they want (REOs) as readily as in the lower price brackets.

If you would like to further discuss how Miami's real estate market might affect your purchase or sale of a home, please contact us today, we'd love to meet you!

FREE Customized Monthly Market Reports delivered right to your email!

Free HOME VALUATION!

Free MLS Search!

Call Janie at 786-252-4970!!

Want more news?  Subscribe in a reader!

Copyright © 2009 www.PapillonRealEstate.com All Rights Reserved ! Copy and die (jk, but I will come get you!)

Only this week I posted on a blog on how the Miami real estate market had really picked up in the past few months.

Things are really buzzing here.  Offers are being made, accepted, bidding wars on the best priced properties have ensued and in general we are MOVING.  Prices are still falling, but the inventory of really well priced properties has surged and buyers have taken notice.  Investors are picking up the condos and townhouses as rental properties and home buyers are pouring through the single family listings for a great deal.

We started to see the winds change in the Fall, and really start to gain momentum by the start of the year, but I was really struck by what I heard yesterday:

• 11 AM - discussing real estate with a professional colleague who told me one of his best investor clients told him that he feels we are at or near the BOTTOM
• 4 PM - showing a home to a buyer couple who told me they thought we were at or near the BOTTOM
• 5 PM - listened to report on NPR saying that news was filtering in that we are at or near the BOTTOM

Now, neither I nor any of the above are saying that prices are going to increase, but that they may not go too much furhter down.  Miami has a four year inventory compared to a 4-6 month inventory in a stable or buyer's market so we have a BIG FAT BOTTOM, but that is ok, the buyers will begin to absorb that when they feel we are nearing the bottom and that explains why we have started to see such a shift in buyer action. Once the inventory starts to shrink, the bottom will as well, leading to a more stable (as far as price goes) market.

When I hear in one day from an Investor, A buyer and The Media that all sense our approach to bottom is near, that is good news for everyone.  It means sales will (and are) pick up, that vacant homes will begin to be filled, taxes begin to be paid and the market begin to stabilize.  I, for one, am ready!

Wow, I feel like I have whiplash!  It seems that all of the people who WANTED to buy but were just waiting are entering the market!  I have written 2 offers today, have 2 more to go and a few in the wings.  The general consensus from the buyers is that we finally have some REALLY GOOD DEALS now!  Mostly short sales and foreclosures, the pricing is finally where they are ready to get off the fence.

For the most part, the current wave of buyers are:

1) investors

2) Buyers who could not enter the market at the height with the inflated values of 2003-2006, but who now have the opportunity to purchase

3) Buyers who have owned their own homes for a longer time and are using some of the equity to buy a rental(s)

4) Move-up and move-down buyers

With so much movement (no pun intended) in the market, we are seeing for the first time in a long time such occurrences as

1) Bidding wars!

2) Offers OVER List Price

3) Homes selling after 1, 2, 3 days on the market

If the trend continues like this, our excess inventory (4 years of homes vs. 6 months of homes) should finally start to shrink, helping us to stabilize.

I'm ready! Are you?  I'm up on my most current contracts, financing options, aligned myself with a few great mortgage professionals, know the ins and outs of submitting offers on REOs and more.  As Lenn Harley said, "Agents have the Mojo!"

Miami and Florida was one of the first areas to be hit by the slow down, so I am hoping that our turnaround will be a sign for better things to come for our area and the rest of the country.

Stabilized pricing is good for everyone, especially sellers, as it will help "stop the bleeding".

With the first buyer tax credit, stimulus incentives on lending, rock bottom prices, there is no better time to be looking for a new home!

Call Janie Today to get started 786-252-4970