Greater Ft. Lauderdale Area Home Prices Spike 18% in November Over Last Year

By Michael Gerrity


Fort Lauderdale, FL
(MIAMI, FL) -- According to the Broward Council of the Miami Association of Realtors, single-family home sales increased 22 percent from 785 in November 2010 to 961 last month. Condominium sales decreased one percent from 1,115 to 1,089.

Statewide sales increased 11 percent to 12,993 for single-family homes and two percent to 5,590 for condominiums compared to November 2010.  Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops rose four percent from the previous month and were 12.2 percent above November 2010, according to the National Association of Realtors (NAR).

"Condominium prices in Broward County have risen consistently since January of this year, a very important sign of market strengthening," said Terri Bersach, 2011 president of the Broward County Board of Governors of the Miami Association of Realtors.  "Strong demand resulting in limited supply should yield continued market strengthening in 2012."

Cash Transactions

In November, 61 percent of closed sales in Broward County were cash transactions, a one percent increase compared to the previous month.  Cash sales accounted for 40 percent of single-family and 79 percent of condominium closings. Nationally, all-cash sales accounted for 28 percent of transactions, reflecting the stronger presence of international buyers in the Miami real estate market.

Median and Average Sales Price Increase

Compared to November 2010, the median sales price in the Fort Lauderdale Metropolitan Statistical Area (MSA) for condominiums rose a significant 19 percent to $75,700.  The median sales price for single-family homes increased 18 percent to $195,600.

The average sales price for single-family homes rose 4.5 percent to $269,819 last month compared to $258,286 in November 2010.  The average sales prices for condominiums increased 3.1 percent, from $114,144 to $117,651.

Statewide median sales prices remained the same at $130,100 for single-family homes and increased four percent to $86,700 for condominiums.  The national median existing-home price for all housing types was $164,200 in November, down 3.5 percent from November 2010.

"International buyers continue to play a major role in boosting the Broward County real estate market," said Natascha Tello, president-elect of the Broward County Board of Governors of the Miami Association of Realtors.  "Demand from both international and domestic buyers has resulted in rapid absorption of excess inventory and home value appreciation, which is expected to continue long into the future."

Inventory Levels Continue to Fall

The inventory of residential listings in Broward County decreased 40 percent, from 20,166 to 13,319, in the last year and 1.3 percent since last month.  Total housing inventory nationally fell 5.8 percent to 2.58 million at the end of November compared to the previous month.

Distressed Properties

Short sales and foreclosures accounted for 48 percent of total Broward closed sales in November, down three percent from November 2010 but remained the same compared to the previous month.

U.S. Mortgage Rates Hit Record-Breaking Lows During the Holidays

By David Barley

According to Freddie Mac's latest Primary Mortgage Market Survey (PMMS), average fixed mortgage rates at or near all-time record lows helping to keep homebuyer affordability high.

The 30-year fixed averaged 3.91 percent for the week, a new all-time low, dropping below last week's 3.94 percent, the previous record low. The 15-year fixed matched last week's all-time record low at 3.21 percent. Adjustable rate products also hit new all-time lows in this week's survey.

Freddie Mac's chief economist Frank Nothaft tells the World Property Channel, "Rates on 30-year fixed mortgages have been at or below 4 percent for the last eight weeks and now are almost 0.9 percentage points below where they were at the beginning of the year, which means that today's homebuyers are paying over $1,200 less per year on a $200,000 loan. This greater affordability helped push existing home sales higher for the second consecutive month in November to an annualized pace of 4.42 million, the most since January."

The 30-year fixed-rate mortgage (FRM) averaged 3.91 percent with an average 0.7 point for the week ending December 22, 2011, down from last week when it averaged 3.94 percent. Last year at this time, the 30-year FRM averaged 4.81 percent.

15-year FRM this week averaged 3.21 percent with an average 0.8 point, matching last week when it averaged 3.21 percent. A year ago at this time, the 15-year FRM averaged 4.15 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.85 percent this week, with an average 0.6 point, down from last week when it averaged 2.86 percent. A year ago, the 5-year ARM averaged 3.75 percent.

1-year Treasury-indexed ARM averaged 2.77 percent this week with an average 0.6 point, down from last week when it averaged 2.81 percent. At this time last year, the 1-year ARM averaged 3.40 percent.

Nothaft further states, "New construction of one-family homes also showed a back-to-back monthly gain in November to the largest increase since June. Moreover, homebuilder confidence in December rose to its highest reading since May 2010 according to the National Association of Home Builders/Wells Fargo Housing Market Index."

Miami Real Estate Market Continues Winning Streak in November, Prices Rise Fourth Consecutive Month

By Michael Gerrity 

Jack H. Levine

 

The Miami Association of Realtors reported that sales of existing single-family homes in the Miami Metropolitan Statistical Area (MSA) rose 11 percent in November, from 679 to 755, compared to November 2010. Sales of existing condominiums increased 2 percent, from 1,039 to 1,064, compared to November 2010.

Statewide sales increased 11 percent to 12,993 for single-family homes and two percent to 5,590 for condominiums compared to November 2010.  Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops rose four percent from the previous month and were 12.2 percent above November 2010, according to the National Association of Realtors (NAR).

"Residential real estate sales have consistently risen in Miami-Dade since August 2008," said Jack H. Levine, 2011 Chairman of the Board of the Miami Association of Realtors.  "Now, after the relatively rapid absorption of excess housing inventory, we are seeing property prices follow the same pattern. This is very encouraging and reflects market strengthening despite the impediments posed by unnecessary and restrictive mortgage underwriting standards and appraisal challenges."

International Buyers Fuel Cash Transactions

The percentage of cash transactions remained the same at 64 percent, compared to the previous month. Cash sales accounted for 41 percent of single-family and 79 percent of condominium closings.  Nearly 90 percent of international buyers in Florida purchase properties all cash.  Nationally, all-cash sales accounted for 28 percent of transactions, reflecting the stronger presence of international buyers in the Miami real estate market.

Condominium Prices Rise Again

The effect of short sales and foreclosures on the median and average sales prices for both single-family homes and condominiums has lessened particularly in some areas of the county.  In November, 56 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 62 percent in November 2010 and 57 percent the previous month.

In November, the median sales price for condominiums rose for the fourth consecutive month.  The median sales price of condominiums in November increased 18 percent to $125,000. The median sales price of single-family homes remained the same at $171,300 compared to a year earlier.

"The Miami residential real estate market continues to perform in a healthy and balanced manner, said 2011 Miami Association of Realtors Residential President Ralph E. De Martino.  "International buyers in Miami have fueled an unprecedented recovery unlike any other in the nation, increasing demand and limiting supply of homes.  We are fortunate because Miami combines all of the attributes that are expected to attract international buyers long into the future."

Statewide median sales prices remained the same at $130,100 for single-family homes and increased four percent to $86,700 for condominiums.  The national median existing-home price for all housing types was $164,200 in November, down 3.5 percent from November 2010.

The average sales prices for single-family homes in Miami-Dade County increased 8.2 percent, from $300,369 in November 2010 to $324,846 in November 2011. The average sales price for condominiums increased 21.5 percent, from $193,486 in November 2010 to $226,151 last month.

Inventory Drops 40 Percent in Last Year
The inventory of residential listings in Miami-Dade County has dropped 40 percent, from 24,278 to 14,461 active listings, in the last year. Compared to the previous month, the total inventory of homes dropped 4.4 percent from 15,127.  Since August 2008, existing housing inventory has decreased more than 66 percent, down from 43,100.

Total housing inventory nationally fell 5.8 percent to 2.58 million at the end of November compared to the previous month.

Peering Into 2012, Freddie Mac Economist Makes Five Market Predictions

By Michael Gerrity  

Frank Nothaft

 

As we soon close out a bumpy U.S. housing market ride in 2011, Freddie Mac's chief economist Frank Nothaft is now making five housing market predictions for 2012.

Nothaft tells the World Property Channel, "While the headwinds remain strong going into 2012, there are indications the economy and the housing market are gaining ground, albeit slowly. Sustained and increased job growth beyond the average monthly payroll gains of 130,000 so far this year ending in November are essential. In housing, look for the rental market to lead the way and for some improvement in the single-family space in parts of the country. All told, next year will be another bumpy ride."

Outlook Highlights  

• Economic growth will likely strengthen to about 2.5 percent in 2012.

• The U.S. unemployment rate will decline but likely remain above 8 percent.

• Mortgage rates will likely remain very low, at least through mid-2012.

• Housing activity will be better in 2012, but not robust.

• Expect less single-family originations but more multifamily lending in 2012.

Peering into 2012, Frank Nothaft predicts the following five housing market trends.

First, economic growth will likely strengthen to about 2.5 percent in 2012. U.S. economic growth appears to have accelerated in the waning months of 2011, with fourth quarter growth expected to come in around 2.5 to 3.0 percent, annualized, by most forecasters. Evidence to support the pick-up were stronger retail sales, low inventory levels, and a 477,000 three-month gain in private non-farm payroll employment from August through November. Given the anemic 1.2 percent annualized growth over the first three quarters of the year, the final quarter could provide some needed momentum as we head into 2012.  

Residential fixed investment, which has been lackluster over the past couple of years, will likely contribute modestly to 2012 growth. New construction, including additions and alterations to the existing housing stock, is the main component of residential investment, and there are signs it may (finally) be turning up, albeit gradually. Single-family housing starts will likely remain weak, but new multifamily starts have already gained and will help drive residential investment expenditures in the New Year.

Second, the U.S. unemployment rate will decline but likely remain above 8 percent. The drop in the unemployment rate from 9.0 percent to 8.6 percent in November was welcome news, although roughly one-half of the decline appears to have been discouraged workers who quit the labor force. Broader measures of labor underutilization, which include discouraged workers and part-timers who want full-time work, also moved lower in November but remain very high, at 15.6 percent. Over the twelve months ending in November, the unemployment rate dropped 1.2 percentage points--more of a drop than would have been inferred from payroll job gains that averaged only 130,000 per month.

Part of the reason that relatively modest payroll job gains have, nonetheless, pushed the unemployment rate lower has to do with sluggish labor force growth. Discouraged workers are one part of this equation, and they will likely come back into the labor market if economic growth strengthens and firms hire at a more brisk pace. This scenario means stronger job growth in 2012, which appears likely, though it may not put much of a dent in the nation's unemployment rate. The path over the year may have a couple upticks in the reported unemployment rate before modest declines bring it lower in the latter half of next year, ending 2012 below November 2011's level but still uncomfortably above 8 percent.

Third, mortgage rates will likely remain very low, at least through mid-2012. Thirty-year fixed-rate conforming mortgages have hovered around 4.0 percent (or lower) during the fourth quarter to-date thanks in large part to the Federal Reserve's Maturity Extension Program and its stated intent to push and keep long-term rates low. The Program (a.k.a. "Operation Twist" by the popular press) is expected to last until mid-2012. This should keep fixed-rates for 15- through 30-year product relatively low during the first half of the year, with rates edging up during the second half. Further, the Federal Reserve's August announcement that it was likely to maintain its current federal funds target through mid-2013 assures that initial period interest rates for one-year and various hybrid ARMs will remain extraordinarily low throughout 2012. 

Fourth, housing activity will be better in 2012, but not robust. A full-fledged recovery in the housing sector will likely elude the U.S. in 2012, but new construction and home sales are expected to be greater than in 2011. The rental market appears to be leading the housing recovery, as rents have risen in most markets, vacancies are down, and property values for professionally managed complexes are up in most neighborhoods. Good rental market fundamentals and a dearth of new apartment completions should translate into more starts of rental buildings with five or more units, pushing total housing starts up slightly more than 10 percent in 2012. Single-family starts may inch higher too, but no significant bounce back in single-family construction is likely in coming quarters.

A strong headwind holding back new home sales is the very affordable competition from existing homes. Low mortgage rates and existing house prices could lead to a bump-up in sales by three- to five-percent in 2012 over the past year's level. While encouraging, sales volume is still low given the affordability of housing. And ample distressed sales and sluggish home buying demand will continue to keep prices soft in many markets:  We expect U.S. house price indexes to move lower before bottoming out in 2012, with modest appreciation forestalled until 2013. Still, these national indexes mask the sizable variation in local house-price performance.  Some markets have appreciated over the past year and are likely to gain further in 2012, while those markets with higher vacancy rates and relatively large distressed sales will continue to see downward price pressure over the next year. 

Fifth, expect less single-family originations but more multifamily lending in 2012. While single-family refinance volume is currently strong, many borrowers have already locked in relatively low rates, or are constrained (because of being underwater or having late payments) thus reducing refinance activity over time. Further, somewhat higher mortgage rates in the second half of 2012 (after the expiration of 'Operation Twist') will reduce financial incentives to refinance. Enhancements to HARP are expected to add more than $100 billion to 2012 refinance originations, but overall refinance volume will likely be less than in 2011, so much so that it will more than offset a small incremental amount of purchase-money lending, leaving overall single-family originations lower in 2012. The better fundamentals in the rental market and pent-up demand for refinance of multifamily loans should translate into higher lending volumes in that portion of the market, driven by both more refinance and more sales transactions.

Flawed Appraisals Killing New Home Sales in U.S., Says NAHB

By Michael Gerrity 

It's a tale of two markets; distress home sales versus normalized sales, that is creating appraisal pricing issues in many markets across the U.S. today.

According to a recent nationwide survey conducted by the National Association of Home Builders (NAHB), one out of three builders are reporting losing signed sales contracts during the preceding six months because appraisals on their homes are less than the contract sales price.

"The inappropriate use of distressed and foreclosed sales as comparables in determining new home values is needlessly driving down home prices, killing home sales, causing more workers to lose their jobs and delaying a housing and economic recovery," said NAHB Chairman Bob Nielsen.

Too often, due to faulty appraisal practices, brand new homes with sparkling appliances and interior upgrades get compared to a distressed property that has been sitting vacant and in disrepair. The result, in many cases has been that the new house winds up getting appraised at less than the cost of construction.

That is precisely what is occurring in today's marketplace, according to the NAHB survey, where a full 60 percent of respondents reported they were experiencing appraisals coming in below their contract sales price.

Of those reporting that they had encountered this problem, 53 percent said the appraisal amount was actually less than the cost of building the home.

"This is not only unfair and unreasonable, but it perpetuates the cycle of declining home values, drives more home owners underwater, harms local economic activity and acts as an obstacle to the recovery of the housing market," said Nielsen.

These appraisal practices are a major contributing factor to the current acquisition, development and construction (AD&C) lending crisis that has choked off credit for home builders and threatens to prolong the current housing downturn.

Falling appraised values for land and subdivisions under development have led some financial institutions to stop lending to developers and builders, to demand additional equity and even to call performing loans.

Since Sept. 2009, NAHB has held four appraisal summits in Washington with representatives of federal banking regulators, the appraisal industry, the housing finance industry, the real estate and housing sectors and others to find solutions that will allow appraisers to develop realistic valuations based on sales that are truly comparable.

The need to give top priority to addressing the complexity of property valuations in distressed markets and impediments to the flow of appropriate information on homes between appraisers and interested parties was discussed during the most recent summit, which occurred on Oct. 19.

"Major reforms in appraisal practices and oversight are needed to ensure that appraisals accurately reflect true market values and don't contribute to price volatility or harm aspiring home owners and move-up buyers," said Nielsen. "We will continue to work with all stakeholders in this debate to find solutions."

With the decline in home prices appearing to have ended or be coming to an end in most parts of the country, resolving the appraisal and credit crunch issues remain a top priority for the association.

NAHB's latest Improving Markets Index has shown modest signs of improvement in scattered housing markets where employment is gaining and distressed properties are not as numerous.

New-home construction stands ready to serve as an engine for economic recovery. Building 100 single-family homes creates more than 300 full-time jobs and provides $8.9 million in federal, state and local tax revenues.

"Resolving inappropriate appraisal practices and restoring the flow of credit to home builders will not only help to put America back to work, it will provide badly needed tax revenues that is essential for local governments to support schools, police and firefighters in communities across the land," said Nielsen
.

Foreclosure News

Foreclosure Defense

The big banks are back in the foreclosure business. After a year of fewer foreclosures, as bankers reeled from revelations that they were falsifying documents in foreclosure cases, the latest monthly numbers suggest banks are starting to repossess houses again.

In October, foreclosure actions rose 44 percent from the month before in Charlotte County, 20 percent in Sarasota County, 37 percent for Florida and 7 percent for the country as a whole, according to data from RealtyTrac, an Irvine, Calif., market research firm. Only Manatee County bucked the state and national trend. Its foreclosure actions fell 25 percent from September.

The overall rise in foreclosures was welcomed by real estate agents who have been frustrated by what they view as artificial supply shortages in the face of strong investor demand. But if foreclosure filings keep increasing in the coming months — as expected — it could drive home prices down again and may make it even more difficult for non-distressed owners to sell.

"It's supply and demand," said Dennis Black, a Port Charlotte real estate consultant. "If you increase the supply, prices will go down unless more buyers appear." But regardless of what happens to prices, Black is among those who are relieved that banks are putting their processing problems behind them and are back to cleaning up the foreclosure mess.

"There are a tremendous number of unprocessed properties sitting on the sidelines and supplies are not going to slow down any time soon," Black said. "But until we sell off this inventory and get building again, this state is not going to see a broader economic recovery."

What could make the situation worse before it gets better, experts say, is an increasing number of underwater homeowners don't see the point of struggling any longer. "People are worn out and the stigma tied to foreclosure is gone," Shari Olefson, an attorney with Fowler White and author of "Foreclosure Nation: Mortgaging the American Dream." "At cocktails they are no longer embarrassed if they have stopped paying, they are embarrassed if they are still paying. And they are being empowered by the Occupy Wall Street movement."

For the time being, real estate agents are glad fresh supplies of foreclosures are coming on the market. "I got 15 new ones in September and 11 last month," said Drew Peterson, a foreclosure specialist with Re/Max Alliance Group. "Those were pretty strong months compared to the summer when I only picked eight or nine each month."

Peterson added that he expects the flow to increase during the last two months of the year and into "the season" when buying activity is strongest. "I've noticed most of the ones I'm getting are ones where the attorneys have been recently reassigned," Peterson said. "GMAC loans have been coming through in much higher numbers, and on almost everyone, the David Stern law firm has been replaced by a new firm."

Court records show that the 10 largest lenders in Sarasota and Manatee counties filed 591 early-stage, or lis pendens, actions in October — a 32 percent increase from the 447 filed in September. Bank of America — the owner of Countrywide — led the way with 170 early-stage filings, compared with 118 the month before.

At the same time, short sales — in which banks permit owners to sell properties for less than they owe on their mortgages — also are on the upswing, according to Adam Robinson, a Sarasota real estate agent who runs Sarasota-Foreclosures.com.

"Short sales in Sarasota County are up 62 percent from October 2010 — from 108 to 174," Robinson wrote in an email message. "Charlotte County Short sales increased 66 percent from 37 to 61, and even Manatee saw a 21 percent increase from 87 to 105." Robinson said banks have ramped up short sales because of the problems the were having getting their foreclosure paperwork in order and have managed to streamline the process.

Across the country, 230,678 foreclosure actions were filed in October, a 7 percent increase from the previous month, but still down nearly 31 percent from October 2011. Nevada, California, Arizona and Florida posted the top state foreclosure rates.

One in every 180 Nevada housing units had a foreclosure filing during October — more than three times the national average. California came in second with one out of every 243 housing units. Arizona was third with one out every 259 and Florida was fourth with one out of every 268.

Freddie Mac Short Sale Updates

Short Sales

Freddie Mac will force parties involved in a short sale to sign affidavits making them liable for their negligent or intentional misrepresentations in the deal, an effort to be sure it's an arms-length transaction, according to guidance released Friday.

The new affidavit will go into effect Jan. 1, but Freddie is asking servicers to implement the change immediately to fight fraud. However these, and other changes, are meant to expedite the process of getting borrowers in default relocated.

In August, the government-sponsored enterprise alerted real estate agents to the rise in shady short sale deals. The main concern is flopping. There is a growing trend of real estate agents on the buy-side of the deal failing to disclose other bids on the property, rigging the sale at a lower price.

The fraudsters can then flip it, sometimes the same day, and pocket the difference.

In the third quarter, Freddie completed 11,744 short sales and deeds-in-lieu of foreclosure, according to its financial statement. It completed nearly 33,500 of these two foreclosure alternatives in all of 2011.

CoreLogic (CLGX: 13.41 +2.52%) noted an increase in property fraud in 2011 tied specifically to flopping.

"With this change, you will have more information to identify potential mortgage fraud and a clearer understanding of the intent of all parties involved in the real estate transaction," Freddie said in the guidance to mortgage servicers.

The guidance put out Friday also trimmed other rules to help servicers speed up the loss-mitigation process.

The GSE also required all amounts paid in the transaction, including anything going to the borrower, be documented fully in the HUD-1 Settlement Statement.

Freddie eliminated the requirement that borrowers more than 120 days delinquent have to list their home for sale before becoming eligible for a deed-in-lieu.

Miami Pending Home Sales in October Rise 10% Over Last Year

By Michael Gerrity 

(MIAMI, FL) -- According to the Miami Association of Realtors, October cumulative pending home sales - including single-family homes and condominiums - in Miami-Dade County were 10 percent above what they were a year earlier, up from 10,264 to 11,245, and 0.4 percent below the previous month, down from 11,296.

October Sales Activity

The total number of listings, including single-family homes and condominiums, that pended during the month of October increased 26 percent, from 2,861 in October 2010 to 3,609 last month.  Compared to the previous month, pended sales increased .22 percent.   Single-family home and condominium sales that pended during the month increased 27 percent and 26 percent respectively compared to the previous year.

"In Miami, where market performance has outpaced the nation, strong pending sales activity has mirrored robust closed sales figures due to international buyers who mainly pay all cash and are not impacted by mortgage financing issues," said Jack H. Levine, 2011 chairman of the board of the Miami Association of Realtors.  "However in other parts of the country factors such as stronger underwriting standards and appraisal issues are impeding closings that are much more dependent on financing."

Cumulative Pending Sales Rise

Pending sales of condominiums were 10 percent higher than they were a year earlier, up from 5,878, and 2.3 percent below what they were the previous month, down from 6,620.  Pending sales of single-family homes were nine percent above what they were a year earlier, up from 4,386 to 4,775, and five percent below the previous month, when pending single-family homes sales totaled 4,676.

"In addition to the unyielding demand from foreign buyers that has boosted the local market and resulted in Miami outperforming the nation, there is also increasing demand from domestic buyers," said 2011 Miami Association of Realtors Residential President Ralph E. De Martino.  "Domestic buyers are now accounting for a higher percentage of closed sales.  In addition, the stronger rental rates have resulted in strong demand for rental properties, which is putting increased pressure on the greatly reduced inventory of properties for sale."

Nationally, the Pending Home Sales Index, a forward-looking indicator based on contract signings, increased 4.6 percent to 10.4 in October from 84.5 in September, according to the National Association of Realtors. The index is 9.2 percent higher than the 85.5 index reported in October 2010.

Increased pending sales are an indication of increased future sales.  A sale is listed as pending when a contract is signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

Pending home sales up in Miami-Dade, Broward

Cumulative pending home sales in July – including single-family homes and condominiums – in Miami-Dade and Broward counties were up from a year ago, with Miami-Dade leading the pack with a 19 percent increase.

Miami-Dade had 12,014 pending sales, up from 10,113 in July 2010. Broward County was up 4 percent, year-over-year, with 8,124 pending home sales recorded, according to the Miami Association of Realtors. (The association does not provide Palm Beach County information).

The total number of Miami-Dade pending sales during July increased 22 percent, to 3,359 from 2,759 in July 2010. Single-family home and condominium pending sales during the month increased 25 percent and 20 percent, respectively.

“Despite unnecessary restrictive mortgage credit and home appraisal practices, Miami continues to exhibit signs of a healthy and balanced real estate market,” said Jack H. Levine, 2011 chairman of the board of the Miami Association of Realtors. “Foreign buyers and investors have boosted the local market unlike any other in the state and the nation. A favorable lending and home appraisal environment would dramatically strengthen our market and improve consumer confidence.”

The nationwide Pending Home Sales Index, a forward-looking indicator based on contract signings, decreased 1.3 percent, to 89.7 in July from 90.9 in June, according to the National Association of Realtors    . The index is 14.4 percent higher than the 78.4 index reported in July 2010.

Increased pending sales are an indication of increased future sales. A sale is listed as pending when a contract is signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

In Broward, pending sales during the month of July increased 14 percent, to 2,974. Pending single-family home and condominium sales increased 19 and 10 percent, respectively, in July.

“Sales levels in Broward County are at the highest point since the real estate boom and continue to rise,” said Terri Bersach, president of the Broward County Board of Governors of the Miami Association of Realtors. “Rising pending sales is a positive sign and reflects strong housing demand in Broward County, but more favorable lending and home appraisal standards would further boost home sales and consumer confidence.”

Miami Condo Prices Rise Again in October as International Buyers Continue to Pay Cash

By Michael Gerrity

(MIAMI, FL) -- According to Miami Association of Realtors, sales of existing single-family homes in the Miami Metropolitan Statistical Area (MSA) rose 41 percent in October, from 546 to 769, compared to October 2010. Sales of existing condominiums increased 63 percent, from 739 to 1,202, compared to October 2010.

Statewide sales increased 13 percent to 13,755 for single-family homes and 12 percent to 6,132 for condominiums compared to October 2010.  Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops rose 1.4 percent from the previous month and were 13.5 percent above October 2010, according to the National Association of Realtors (NAR).

"We are encouraged by the record-breaking performance of the Miami real estate market this year," said Jack H. Levine, 2011 Chairman of the Board of the Miami Association of Realtors.  "Rising demand and limited supply is yielding higher average and median sales prices, and we expect to see double-digit price appreciation in 2012."

International Buyers Fuel Cash Transactions

The percentage of cash transactions rose to 64 percent, up one percent compared to the previous month.  Cash sales accounted for 43 percent of single-family and 77 percent of condominium closings.  Nearly 90 percent of international buyers in Florida purchase properties all cash.  Nationally, all-cash sales accounted for 29 percent of transactions, reflecting the stronger presence of international buyers in the Miami real estate market.

Condominium Prices Rise Again

The effect of short sales and foreclosures on the median and average sales prices for both single-family homes and condominiums has lessened particularly in some areas of the county.  In October, 57 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 61 percent in October 2010 and 60 percent the previous month.

In October, the median sales price for condominiums rose for the third consecutive month.  The median sales price of condominiums in October increased eight percent to $117,900. The median sales price of single-family homes decreased 12 percent to $174,600 from a year earlier.

"Miami is an enviable position, leading the nation in the real estate market recovery," said 2011 Miami Association of Realtors Residential President Ralph E. De Martino.  "International buyers continue to play a major role in fueling the local market strengthening.  Demand for local properties from domestic and foreign buyers will result in the local market outperforming the nation long into the future."

Statewide median sales prices decreased four percent to $131,200 for single-family homes and increased nine percent to $87,800 for condominiums.  The national median existing-home price for all housing types was $161,600 in October, down 5.8 percent from October 2010.

The average sales prices for single-family homes in Miami-Dade County increased 6.5 percent, from $266,726 in October 2010 to $282,947 in October 2011. The average sales price for condominiums increased 14.3 percent, from $197,811 in October 2010 to $226,151 last month.

Inventory Continues Sharp Decline

The inventory of residential listings in Miami-Dade County has dropped 38 percent, from 24,501 to 15,127 active listings, in the last year. Compared to the previous month, the total inventory of homes dropped one percent from 15,264.  Since August 2008, existing housing inventory has decreased more than 65 percent, down from 43,100.

Total housing inventory nationally fell 2.2 percent to million at the end of October compared to the previous month.