2009 Real Estate Market Review for Miami-Dade County

2009 ended and 2010 started with a flurry of activity. Buyers are realizing there's no advantange to wait any longer. Marc Roth with BusinessWeek posted an article Dec. 8, 2009 titled "If You Don't Buy a House Now, You're Stupid or Broke." Great history lesson on interest rates, how they affect loan costs, and why now is the ideal time to buy a house if you're going to. Interest rates are already starting to inch their way up in a trend likely to continue as the housing market and the economy in general show signs of improvement. Prices may not drop further in the area you're interested in and even if they do, the drop may be offset by an increase in interest rates. Inventory levels are dropping, reducing the quantity of homes to select from. If you want to buy a house, now's the time.

A lot of changes took place in 2009 that affect qualifying for a loan. Talk to your loan officer, figure out what you qualify for and get started.

So how did the housing market perform in 2009?

Here's some interesting sales data pulled from our local MLS database that applies to single family homes. Total sales for the last 4 years is listed for comparison and perspective:

Miami-Dade County

Total sales for 2006: 11,074 - 2007: 7,071 - 2008: 6,535 - 2009: 9,974

In 2008, 12.1% of the sales were bank owned properties. In 2009, 52% were bank owned sales. With over half the sales being bank owned property, the market for sellers was rough. The reality of prices adjusting after years of 30% + increases in value each year until our market shifted in April of 2005 was a hard pill to swallow. Our market here saw the beginning of a cycle change in the summer of 2008.

Home sellers took a long time to recognize the adjustment or decrease in value. They set high asking prices and many "chased the market" with reductions. Bank owned properties were priced based on Broker's Price Opinions (BPO's) and appraisals, so most had lower asking prices. Still, in early 2009 many of them sat with no activity for long periods of time until the price was reduced to what buyers were willing to pay. A home is worth what buyers are willing to pay, period. Their opinion of value changed in 2006 and as inventory levels increased to to the point where they could negotiate with a seller without competition for the same property. If the seller wanted to sell...

By the end of 2009, REO sales had changed considerably, with most getting multiple offers within a few days and selling for more than the original asking price. In early 2009, with so few sales in each area, it was difficult to find proper comparables to use as a guide for pricing property. With most people including banks preferring to err on the high side, sales took longer in early 2009 than they do today if the price is set correctly for day one of the sale. In most subdivisions today there are enough recent sales to easily calculate a narrow range of what an asking price should be set at and what the final sale price will most likely be.

In 2008, 7.4% of the properties that sold were short sales - 13.7% were short sales in 2009.

As of today, there are 8,408 homes for sale. 466 are bank owned (5.5%) and 3,035 are short sales. (36.1%) The quantity of bank owned property has drastically reduced. (in case you didn't figure that out from the 52% of the sales in 2009 were bank owned properties)

The Village of Pinecrest

Total sales for 2006: 168 - 2007: 137 - 2008: 131 - 2009: 168

In 2008, 2.3% of the sales were bank owned properties. In 2009, 13.1% were bank owned sales. In 2008, 3.1% of the properties that sold were short sales - 8.3% were short sales in 2009.

As of today, there are 176 homes for sale. None are bank owned and 24 are short sales. (13.6%)

The Village of Palmetto Bay

Total sales for 2006: 225 - 2007: 186 - 2008: 156 - 2009: 177

In 2008, 5.1% of the sales were bank owned properties. In 2009, 20.3% were bank owned sales. In 2008, 7.1% of the properties that sold were short sales - 9.6% were short sales in 2009.

As of today, there are 121 homes for sale. 5 are bank owned (4.1%) and 24 are short sales.(19.8%)

The Town of Cutler Bay

Incorporated in 2005, the MLS data for Cutler Bay sales reflects no sales in 2006 and only 55 in 2007. The first full year of sales reflected is 2008 with 120 total sales. 2009: 200

In 2008, 6.7% of the sales were bank owned properties. In 2009, 41% were bank owned sales. In 2008, 9.2% of the properties that sold were short sales - 20.5% were short sales in 2009.

As of today, there are 110 homes for sale. 14 are bank owned (12.7%) and 48 are short sales. (43.6)

The City of Coral Gables

Total Sales for 2006: 409 - 2007: 331 - 2008: 331 - 2009: 351

In 2008, 6.3% of the sales were bank owned properties. In 2009, 14.8% were bank owned sales. In 2008, 3.9% of the properties that sold were short sales - 8% were short sales in 2009.

As of today, there are 438 homes for sale. 9 are bank owned (2.1%) and 35 are short sales. (8%)

The City of South Miami

Total sales for 2006: 74 - 2007: 57 - 2008: 52 - 2009: 66

In 2008, 3.8% of the sales were bank owned properties. In 2009, 33.3% were bank owned sales. In 2008, 3.8% of the properties that sold were short sales - 10.6% were short sales in 2009.

As of today, there are 57 homes for sale. 3 are bank owned (5.3%) and 11 are short sales. (19.3%)

Take advantage of an ideal time to buy and have a Happy New Year!

Is there any place better to live?

This is my favorite time of year to enjoy South Florida living. The weather couldn’t be better. It’s refreshing to have the cooler days. Now’s the time to enjoy all of the wonderful outdoor activities Miami has to offer.

Next weekend, January 9 and 10, 2010 from 10 am to 5 pm is the Beaux Arts Festival on the campus of the University of Miami. Admission and parking is free. Admission to Lowe Art Museum will also be free for the weekend.

The setting for this show is peaceful and relaxing on the green lawns of the campus. There’s a variety of art and prices for everyone’s taste. And, speaking of taste, there will be a sampling of delicious foods available.

For the first time there will be a family area with a magician and storyteller for the children. Bring the family and enjoy a great art show.

Pinecrest Farmers’ Market Moves

Pinecrest Gardens at 11000 Red Road (formerly Parrot Jungle) will be the beautiful new home of the market. Sunday, December 6, 2009 is opening day and it will run on Sundays through April 2010. Vendors will be there from 9:00 am – 2:00 pm.

In the past this market was located in the parking lot at Gardner’s Market, but it had outgrown the space. Now with the additional space they will be able to offer more locally grown and produced products such as fruits and vegetables, Bee Haven Farm honey, Tim Rowan lettuces, goat cheese, hand made soaps, Hani Hkouri ice cream, and orchid plants.

This is a great way to spend time outside enjoying our gorgeous South Florida weather while purchasing delicious fresh fruit and vegetables for the upcoming week.

When you are tired of turkey......

And looking for a change in menu here’s a great place to try. Pinecrest Bistro located at 12313 S. Dixie Highway in Pinecrest. At this time they are only open for dinner.

Chef Bente Lamchick (her brother was a former owner of Flemings) and husband Randy are co-owners.

Although they have been open for 3 years I had dinner there earlier this week for the first time. What a delightful surprise.

For starters they brought out warm fresh pita bread with homemade humus. I think it’s the best pita I’ve ever had. My choice of one of the specials turned out to be an excellent one - grilled salmon on a bed of fresh sautéed spinach with a wonderful, flavorful sauce. It was accompanied by brown rice and a crispy salad.

The setting is small and intimate. Scott, one of the servers, made the visit special and we found he was very knowledgeable about the wines.

Chef Bente is happy to try to accommodate any special dietary wants or needs.

If you give them a try, I don't think you will be disappointed.

MM

Annual Ramble at Fairchild

This weekend is the 69th Annual Ramble at Fairchild Tropical Gardens in Coral Gables. If you have attended in the past, I know you are looking forward to this year’s event as much as I am. If you’ve never been, you should add this to your activities for this weekend. For the first time, the Ramble has been extended to 3 days beginning on Friday, November 20th and running through Sunday, November 22nd. The festivities begin at 9:30 am and closes at 4:30 pm.

There is something for everyone in the family to enjoy. For a schedule of events go to Ramble.

You can also go to Fairchild Tropical Gardens and print a coupon good for $5.00 off admission.

Hope to see you there.

Marie

Weekly Report for Pinecrest, Palmetto Bay and Cutler Bay

Another week flew by. Seems like the days are going by faster the closer we get to the holiday season. The days are shorter, it's getting dark earlier, and buyers that want to take a look at houses after work are ending up seeing one or two after dark. I had a 5:30 appointment last Saturday to show a property on E-Lake listed by Vicki and Alexandra Restivo and ended up outside just in time for the sun to set. The colors made a spectacular backdrop for the dock and beach area. Impressive. Sometimes work doesn't feel like work at all.

Here's the sales activity from our local MLS from last Wednesday, November 11, 2009 through tonight, Tuesday, November 17, 2009.


Village of Pinecrest
As of tonight Pinecrest has a total of 191 single family homes for sale. Only one is a foreclosure, 22 are short sales. 5 of the total available were added since last Wednesday; none of the 5 added to the market are bank owned or short sales.

There are currently 32 total under contract. 1 is bank owned, 14 are short sales. 104 closed in the last 6 months. 13 were bank owned, 5 were short sales. 1 home went under contract since last Wednesday. It was a short sale. 2 properties closed since last Wednesday, neither were bank owned or a short sale.

Pinecrest currently has 168 homes for sale, 17 under contract, and 86 that closed in the last 6 months that were neither bank owned or short sales. In one week 5 entered the market and 2 closed that weren't bank owned or short sales. One was a 4/3 with 3904 sf on a 35,109 sf lot that sold for $1,245,500. The other house was larger; a 7/6 with 6941 sf on a 40,120 sf lot that sold for $2,150,000.

Village of Palmetto Bay
Palmetto Bay has a total of 141 single family homes for sale tonight. 3 are bank owned; 29 are short sales. 7 of the total were added since last Wednesday; 0 bank owned and 3 short sales.

There are currently 51 properties under contract. 7 are bank owned, 25 are short sales. 4 homes went under contract since last Wednesday. 1 is bank owned, 2 are short sales. 106 properties closed in the last 6 months. 17 were bank owned, 11 were short sales. 1 property closed since last Wednesday. It was a short sale with 3 bedrooms, 2 baths, 1697 sf on a 10,000 sf lot that sold for $235,000.

Palmetto Bay has 109 for sale, 19 under contract and 78 sales in the last 6 months that weren't bank owned or a short sale. 5 homes entered the market and 1 went under contract last week that weren't bank owned or short sales.

Cutler Bay
Cutler Bay has a total of 102 single family homes for sale. 5 are bank owned, 51 are short sales. 8 of the total were added last week; none are bank owned, 3 are short sales.

Tonight there are a total of 91 homes under contract. 13 are bank owned, 65 are short sales. 3 went under contract since last Wednesday. 1 is a foreclosure sale, 2 are short sales.

There have been 120 single family home closings in Cutler Bay in the last 6 months. 44 were bank owned, 26 were short sales. 1 sale closed since last Wednesday. It wasn't bank owned or a short sale - a 2/2 with 1030 sf on a 5658 sf lot that sold for $95,000.

Cutler Bay has 46 homes for sale, 13 under contract and 50 that closed in the last 6 months that aren't bank owned or short sales. 5 entered the market last week and 1 sold that were regular resales by the owners.

The real estate market normally slows down between Thanksgiving and the end of the year, but what's normal? Last year wasn't "normal." This year between the extended and expanded tax credit, low interest rates and those wanting to purchase in time to file for their homestead exemption, the activity for this last quarter may show an increase instead of slowing down.

Weekly Report for Pinecrest, Palmetto Bay and Cutler Bay

Wow, last week went by fast.

Here's the sales activity from our local MLS from last Wednesday, November 4, 2009 through tonight, Tuesday, November 10, 2009.

Village of Pinecrest
As of tonight Pinecrest has a total of 191 single family homes for sale. Only one is a foreclosure, 23 are short sales. 6 of the total available were added since last Wednesday; none of the 6 added to the market are bank owned, 2 are short sales.

There are currently 34 total under contract. 1 is bank owned, 14 are short sales. 103 closed in the last 6 months. 14 were bank owned, 5 were short sales. 3 home went under contract since last Wednesday. One was a short sale.

2 properties closed since last Wednesday, neither were bank owned or a short sale.

Pinecrest currently has 167 homes for sale, 19 under contract, and 84 that closed in the last 6 months that were neither bank owned or short sales. In one week 4 entered the market, 2 went under contract and 2 closed that weren't bank owned or short sales.

Village of Palmetto Bay
Palmetto Bay has a total of 141 single family homes for sale tonight. 4 are bank owned; 30 are short sales. 10 of the total were added since last Wednesday; 1 bank owned and 1 was a short sale.

There are currently 48 properties under contract. 6 are bank owned, 23 are short sales. 5 homes went under contract since last Wednesday. 1 bank owned, none were short sales.

108 propeties closed in the last 6 months. 18 were bank owned, 10 were short sales. 2 properties closed since last Wednesday. Neither was bank owned or a short sale.

Palmetto Bay has 107 for sale, 19 under contract and 80 sales in the last 6 months that weren't bank owned or a short sale. 8 homes entered the market, 4 went under contract and 2 closed last week that weren't bank owned or short sales.

Cutler Bay
Cutler Bay has a total of 98 single family homes for sale. 6 are bank owned, 49 are short sales. 6 of the total were added last week; 2 are bank owned and 3 are short sales.

Tonight there are a total of 90 homes under contract. 12 are bank owned, 65 are short sales. 1 went under contract since last Wednesday. It was a foreclosure sale.

There have been 119 single family home closings in Cutler Bay in the last 6 months. 44 were bank owned, 26 were short sales. 1 sale closed since last Wednesday. It wasn't bank owned or a short sale.

Cutler Bay has 43 homes for sale, 13 under contract and 49 that closed in the last 6 months that aren't bank owned or short sales. 1 entered the market last week and 1 sold that were regular resales by the owners.