Real Estate Information

This year, Florida is poised to become a bargain location for real estate investors seeking affordable housing. A recent report from Winkworth International stated that some Florida properties were selling for just $47 a square foot.

As the housing recovery slowly begins, real estate experts are forecasting a rise in investor confidence. This will help bring up the average home price, clear some of the excess inventory and initiate some stabilization for the industry.

Winkworth International reported that Florida has been one of the states where surplus was a major contributing factor in the low home prices, and foreclosures as well as unfinished condo projects are also to blame.

However, the United Kingdom is one country that continues to have a vested interest in Florida, and Central and South Florida in particular. There are even entire communities and neighborhoods made up of British expats and former citizens. According to Charles Peerless, director of Winkworth International, “Low prices on a wise range of top quality luxury homes and condominiums in world class developments, combined with a favorable exchange rate and low interest rates, buyers who seek sun, golf and wide ranging lifestyle attractions can now buy a home here for about half what they would have paid in 2005.”

Sean Snaith, economics professor at the University of Central Florida in Orlando, agrees saying, “For international buyers, 2010 will be a great time to buy in Florida. The imbalance of supply and demand puts the buyer in the driving seat. Large inventory, pricing power and the continuing weakness of the dollar when compared to other currencies mean awesome deals in the housing sector.”

To find a good residential real estate investment in the South Florida / Aventura / Miami area, contact Roman Pavlik at SouthFloridaRealtySource.com.

American homes are now being planned and constructed to help the owners save money and reduce waste. What is considered as waste or wasteful? Well, outdoor kitchens, fire pits and grills are some design elements being cut. Bathroom features such as dual showerheads are being replaced with single ones, and these new homes are focusing on natural light, energy efficient appliances and extra storage.

Better Homes and Gardens conducted a survey that was released at this week’s National Association of Home Builders’ (NAHB) Show in Las Vegas. The results showed that home owners are building smaller properties and ditching the luxury amenities and high-end add-ons.

Green living has taken precedence in the past few years, garnering a lot of praise, while downsizing has always been looked at as a last resort… until now. Now, downsizing is the look people are going for. For example, high ceilings that inflate energy bills are not popular anymore.

The NAHB reported that the size of the American home decreased 100 square feet. Also, the number homes with three-plus bathrooms also decreased – for the first time since 1992. Builders also echoed the same sentiment adding that they are not building as many homes with outdoor kitchens, game rooms or media rooms, and sunrooms. New homes are likely to include larger closet space, a laundry room, energy-efficient appliances and insulated front doors.

Last year, almost 25 percent of new homes received an Energy Star rating, which took a huge jump from the number in 2007.

To find your South Florida dream home, large or small, call Roman Pavlik. Roman can be reached at SouthFloridaRealtySource.com.

Out of the almost 100,000 Florida loans that are trial modifications under President Obama’s foreclosure curbing program, only 8,405 have received permanent amendments. Unfortunately, the program has not been running as smoothly as originally thought. The aim was to help the country’s 3 million-plus home loans that have been defaulted on by their borrowers.

According to the Treasury Department, the program was marketed as a support solution for millions, but the success of the plan is taking a lot longer, with enormous amounts of red tape and complicated logistics involved.

Florida has reported lower than expected numbers, especially since the state was one of the hardest hit by the subprime crisis and the housing market decline.

The plan, which is monikered the Making Homes Affordable program, provides incentives to banks to alter their loans by either lowering interest rates, lengthening the loan, or reducing the principal amount owed.

The Making Homes Affordable program gives incentives to banks to modify loans in three basic ways; reducing interest rates to as low as 2 percent, increasing the life of the loan, and reducing the principal owed on the loan.

“You keep hearing about this wonderful program the government is doing but it’s not working,” said Joel Bienvenu, a Florida resident who has applied for a loan modification. “I keep getting excuses that they are just overwhelmed.”

Anthony DiMarco, executive vice president of government affairs for the Florida Bankers Association, said the government is trying to help and that the lenders are also trying to figure out a way to speed up their learning curve. “I think the industry is working hard,” he said. “You can’t ramp up a program like this overnight.”

Shari Olefson, a real estate attorney in Ft. Lauderdale thinks that the high unemployment is preventing the plan from working. “The program itself is a failure,” said Olefson.“It’s trying to put a square peg in a round hole.”

It remains to be seen whether the rising unemployment does in fact bar the Making Homes Affordable from succeeding. Until then, Florida homeowners are anticipating answers to their loan modifications and waiting to hear if they will be able to save their mortgages and their homes.

To find homes or condos in South Florida, contact South Florida real estate agent Roman Pavlik at SouthFloridaRealtySource.com.

As the world watches the devastation that is occurring in Haiti in the aftermath of the hurricane, many individuals and companies are coming together in an effort to help and provide aid to those in need. One such partnership includes Florida Realtors and the National Association of Realtors making a contribution in collecting donations to send to Haiti.

“We have all been deeply touched by the horrific damage and loss of life caused by the earthquake in Haiti. It is truly incomprehensible how the Haitian people are suffering,” says Florida Realtors President Wendell Davis.

The leadership team in Florida, which is headed by Davis, came together to contribute $10,000 toward Haiti and to the National Association of Realtors’ Relief Foundation.

In addition to those funds, Florida Realtors will attempt to collect individual donations when their Mid-Winter Business Meetings are help from January 20 – 24 at Orlando, Florida’s Renaissance Resort. The fund is said to be collecting checks and cash, but no credit cards. The contributions can be made at the event’s registration desk and all funds will be given to the National Association of Realtors’ Relief Fund.

“It is in challenging situations such as this that Realtors come together to, once again, show that their compassion and devotion to community are unmatched,” says Davis.

Send checks, payable to “Realtors Relief Foundation,” to:

Dave Garrison, Vice President of Finance and Administration
Florida Realtors
P.O. Box 725025
Orlando, FL 32822-5017

On January 6th, Fannie May stated that it would begin to start to thoroughly review hundreds of Florida condo projects for a new “special approval” label. The reason? Fannie Mae wants to restructure mortgage approvals for certain projects that do not fall into the company guidelines.

Many Florida realtors have been pushing Fannie Mae to review its condo lending program, and as a result, Fannie Mae actually used a number of realtors as consultants on the program. One realtor, Summer Grenne, vice president and regional manager with Prudential Florida 1st Realty in Ft. Lauderdale, said “This is good new for Florida and a step in the right direction for the state’s condominium market.”

Greene thinks that the review will help put a positive spin in the market, adding “Hopefully, with the special approval designation process, we can begin to get our condo inventories reduced and absorbed as more condo buyers receive a green light from lenders for loans. This will help boost confidence in the market.”

More than half of mortgages in the U.S. are backed by Fannie Mae and its cousin Freddie Mac. Greene also hopes that as Freddie Mac sees the positive shift that Fannie Mae’s condo reorganization is taking, that they too will jump on board.

The Fannie Mae special approval designation is set to be effective from 9 to 18 months, and lenders have to confirm all special approval designations on the loan application, marked with a date. The designation only applied to condo projects.

On the heels of all the investment fraud that has been rampant, not only in South Florida, but all over the country... SouthFloridaRealtySource wants to make sure that anyone wanting to invest in residential real estate are equipped with the knowledge of what to look for. Here is a video that covers just that:

<object width="560" height="340"><param name="movie" value="http://www.youtube.com/v/RvBIIP73l6M&hl=en_US&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/RvBIIP73l6M&hl=en_US&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="560" height="340"></embed></object>

For more information on the South Florida real estate market, or to find a home and/or condo in the area, contact seasoned real estate professional Roman Pavlik at southfloridarealtysource.com.

Home owner scams have been around for ages, but with the recent tanking of the housing market, and the subprime crisis, fraud is more prevalent than ever. SouthFloridaRealtySource has come up with a few scams that you should be aware of.

Watch Our for Telemarketers: While the majority of people do not fall for telemarketing home scams, other demographic groups are more susceptible to phone calls. Among those groups are the elderly, and telemarketers are taking full advantage of them. Phone calls from "fake" telemarketers posing as representatives from companies such as Fannie Mae are offering home owners to refinance their homes for lower rates. However, it is the information that is given over the phone that seals the fraud deal. These people use this information to commit identity theft. Most large national lenders do not make business or loan deals via telephone. Make sure you know who you are speaking to.
 
Not All Contractors are Good: Please be cautious of any contractor that just shows up at your home. This can be tricky if you have previously make inquiries about home improvements. Most of these scam artists are actually hired by crooked lenders looking to get you to approve a high-interest loan without you actually being aware of it. Besides, some people don't group a lender and a building contractor together. So, be careful and make sure to read any and all paperwork that a contractor gives you.

People Who Can "Finance" Anyone: Unfortunately, because of the high incidence of foreclosures, coupled with the fact that much of the default information is public record, people are approaching those in this difficult situation and posing and someone who can help. They offer to have you sign the title of your home to them for a "short" amount of time, when in reality you are signing your home over to them permanently. If you are defaulting on your loan, talk only to your lender. They will make sure that you don�t receive any unsolicited advice.

South Florida has been riddled with heaps of foreclosure sales, short sales, and buyers profiting from the default of other people's loans. Now, the city is seeing a new trend: sales of unfinished homes. As more builders and construction companies left homes in mid-build due to the housing economy, these houses seemed to be nothing but a huge eyesore for neighbours and passers by. However, new life is being breathed into these homes as they are settling themselves into the market.

Although buying a half-built home is nothing new, the circumstances that surround the unfinished homes during the housing boom are a little different. Firstly, many homes were contracted to begin work and were never even started. Second, many of the builders or contractors that were originally working on a property are not around anymore, leading to confusion by the builder who takes over a project.

In Miami, officials are still unsure of how many unfinished homes are in this position as builders were given a year extension on their building permits. This happened in March of 2009, so it remains to be seen what comes in the pipeline. Builders have also been known to delay their work on a project to finish in the new year for tax benefits. Officials in Miami-Dade and Palm Beach counties say they aren't sure how many partly built homes are in this particular situation.

According to the United States Census, the percentage of half-built homes rose from 39 percent in January of this year to 43 percent by October. Even though this number reflects those homes that are under contract and under construction, it also includes unfinished homes that were abandoned by builders, and taken over by the bank.

The issues and questions surrounding the First Time Homebuyer Federal Tax Credit can be somewhat confusing. SouthFloridaRealtySource wants to make it easier by sharing this short, but information-packed video on the credit and what it could mean for you. Check it out below:

For more information on the Federal Tax Credit, or for info regarding South Florida real estate, contact Roman Pavlik at SouthFloridaRealtySource.com.

It was only a few years ago that the cities of Miami and Las Vegas were in the middle of an enormous growth spurt. In the midst of the boom, a mushrooming of condo developments and more-than-willing buyers sent home prices through the roof.

Now, foreclosures are ruling the hard-hit towns, and home prices are skimming on rock bottom. In comparing the two cities, Miami came out on top in terms of scope of development. The condo explosion in South Florida was colossal.

"They built less in Las Vegas than in Miami," but there are fewer potential buyers, said Marty Burger, president and chief executive of Artisan Real Estate Ventures in Las Vegas.

The market was pitching condos for second homes to those that visited either city… a better alternative than renting hotel rooms.

"There was no real demand that you could point to," said Jack Winston, a consultant with Goodkin Consulting. Winston was cautious about the development and growth, as there was no real demand that justified any of the new projects.

"Outside developers came here and really misjudged this market," said Irwin Molasky, a Las Vegas real estate developer. "It is not a Miami market. We don't have the South American trade, the New York trade, and they just thought, if you build it, it will come.

Although Miami is in recovery-mode, the city still attracts millions of tourists and now is a better time than ever to find amazing condos and super-affordable prices.

To find South Florida condos, contact real estate professional Roman Pavlik at southfloridarealtysource.com.