Tag Archives: 33009

How Rising Interest Rates Are Expected to Affect South Florida

access_timeAugust 26, 2013personScott Patterson

Recently, during the month of June, mortgage interest rates moved into the 4 percent range.

This is higher than it’s been in the last several months, in which prospective home buyers all across the nation have seen rates drop as low as 3.25 percent.

So with interest rates rising again, how exactly is this going to affect the South Florida real estate market? Today, we’re going to analyze this and let you know.

South Florida homes for Sale

As many experts have noted recently, the slight increase in interest rates has encouraged many would-be buyers to finally enter the market before the rates rise even more.

This is interesting in itself given that just a decade ago, it was perfectly normal to see a 6 percent interest rate or a 9.5 percent interest rates.

But in recent years, buyers have grown accustomed to record-low interest rates.

Experts calculate that home buyers will see a 6 percent jump in monthly payments for every 0.5 point increase in the overall interest rate.

When rates first rise, home buyers worry they’re going to rise more and so there’s a surge in buying activity.

But as rates steadily rise, experts predict that purchase levels will start to decline.

In summarizing recent activity related to rising interest rates, one analyst recently said in an interview that he believes the South Florida real estate market is going to see interest rates continue to rise.

Barring some significant international economic disaster, he said residents should see rates rise to 5 or 5.5 percent soon.

But, as he noted, even those rates are incredibly good, albeit not as good as they’ve been in last 12 months.

Real Estate for Sale in South Florida

So home buyers, while you might have missed the absolute best deal available in terms of interest rates, there are still fantastic mortgages out there for you at incredible prices.

To take the next step toward making the most of this great time to be a South Florida home buyer, contact me, Scott Patterson.

I’ll be more than happy to assist you with all of your home-buying needs!

Until next time,

Scott

Property Insurance Reform to Affect South Florida Waterfront Real Estate Owners

access_timeMay 20, 2013personScott Patterson

The Business Journal recently had an interesting article about how the state’s reforms to Citizens Property Insurance Corp. will ultimately have a huge effect on those living on South Florida’s coasts.

For those of you who aren’t aware, Citizens Property Insurance Corp is a state-run insurer.

According to the recent legislation that the state government approved, protocol for Citizens Property has changed to help reduce enrollment, which officials say will make it less vulnerable during a storm.

This is sure to have a large impact on waterfront property owners all of South Florida!

What South Florida Home Owners Should Know About the Law Change

Under the recent change, residents will be limited to 10 percent annual premium hikes, although new enrollees would have to pass through a number of other insurers before choosing Citizens.

Experts are saying that because of this change, rates will increase overtime since homeowners would need to select private coverage within 15 percent of that offered by Citizens.

Eventually, more insurance providers will be attracted to the area, experts say.

As soon as the Citizens reform was passed, shares from the Fort Lauderdale-based Unviersity Insurance Holdings increased to its highest level in a year.

Universal Insurance Holdings is the largest private insurer in Florida.

Here’s how else the reform will affect circumstances in Florida: Some experts believe Citizens’ policy limit reductions will cause the maximum coverage to decrease from $2 million to $1 million, eventually falling to $700,000.

Some experts think the changes are coming at a bad time and may curb the housing market recovery in South Florida.

After all, investors may think twice if they’re forced to choose private insurance with higher premiums, experts say.

That could in turn call the housing market recovery to slow down or stop altogether.

What’s more, the reform forbids Citizens from covering new coastal construction after July 1, 2014. This may have a direct impact on such South Florida coastal communities.

Still, some experts say the changes to coastal construction coverage may actually end up benefiting the less expensive condominiums in Brickell and Downtown Miami.

South Florida Luxury Real Estate For Sale

What do you make of the recent legislative changes concerning Citizens Property Insurance Corp?

I am always happy to offer straight-forward advice and providing you with such useful home-selling resources as:

Until next time,

Scott

Miami-Dade County, Florida Real Estate is Booming!

access_timeApril 13, 2013personScott Patterson

Things are continuing to look up for the South Florida real estate market, according to the most recent data released.

Evidently, more and more investors are coming to South Florida to get a piece of the action – which in turn is strengthening our local housing market.

Miami, Florida Area Homes for Sale

According to the most recent article I read in the Miami-Herald, plenty of private equity firms in the area are snatching up prime South Florida real estate lately.

For example, Fort Capital recently purchased the historic Surf Club in Surfside. It is expected to be revitalized and later sold.

That’s what the company did after it bought most of the Capri South Beach along with other coveted pieces of South Florida real estate.

Experts say that the South Florida market is getting hotter and hotter, with demand rising.

This is particularly true in the hotel arena, where investors are buying and building hotels left and right!

The latest activity reflects a national trend in which the lodging industry is expected to spend more than $5 billion this year on upgrades that range from redesigned lobbies to additional fitness centers and restaurants.

Here in South Florida, some of the more specific drivers to this recent hotel boom include rising tourism numbers, scarcity of available land and more lenient lending policies.

Here’s what else you should know about the South Florida hotel industry:

Through September, hotels in Miami-Dade were more than 76 percent full, which is up slightly from the same period a year before.
Room rates in South Florida increased by 7 percent to almost $163.
Revenue per available room in South Florida also grew by about 8 percent year-over-year to $124.55.
Hotel transactions volume is expected to be about $650 million in the county this year, up 13 increase when compared to 2011

You may be thinking to yourself – that’s great but what exactly does this mean for the South Florida residential housing market?

Since everything is inter-connected, more interest and investments in the South Florida hotel market will likely lead to more interest and investments in the South Florida real estate market as well!

Your South Florida Real Estate Expert

To learn more about how the current hotel industry boom here in South Florida will benefit the local residential housing market, please contact me, Scott Patterson.

I’ll also be happy to assist you with all of your home-buying and home-selling needs on any one of the following South Florida real estate markets:

Until next time,

Scott

South Florida Real Estate Market Recovery Ranked Best in the Nation

access_timeMarch 13, 2013personScott Patterson

The South Florida real estate market is experiencing a larger bounce back than most housing markets around the nation.

Evidently, Palm Beach County, Broward County and Miami-Dade County are all seeing major jumps in their median sales price – making them some of the fastest improving markets in the country!

This is obviously great news for luxury South Florida home sellers who are hoping to get a respectable price for their South Florida property!

South Florida Home Sales

Here’s a breakdown of recent South Florida real estate market activity:

Broward County’s median price was $127,000, up 21 percent from the year before.
During that previous year, the median sales price in Broward County was $105,000.
That jump in Broward County was the highest jump of any housing market in the nation!
In Miami Dade County, the median sales price was $165,000, up 20 percent from the year before.
During that previous year, the median price in Miami-Dade was $138,000.

Although a lot of South Florida homes lost nearly half their value during the housing crisis, experts are now saying that the market is bouncing back from that drop.

Helping the situation is a lot of demand from investors as well as a shrinking supply of available South Florida homes for sale.

Rising rental prices are also driving more home buyers to the market.

List Your South Florida Home on the Market Now

South Florida home sellers who have been hesitant to list their home on the market in recent years can start doing so with confidence.

After all, given the recent data, it appears that home sales prices in the area are on a steady climb.

For help listing your home on the South Florida real estate market, please contact me, Scott Patterson.

I’m an experienced area REALTOR who can help you set the right list price on your home and create an effective marketing plan tailored to you.

For now, be sure to browse some of my online home-selling resources, such as:

Until next time,

Scott

South Florida Commercial Real Estate Market Showing Signs of Improvement

access_timeMarch 11, 2013personScott Patterson

The South Florida commercial real estate market is making great strides – albeit at a slow pace.

Evidently, recent data suggests that office vacancies are on the decline. In addition, regional and national retailers are expanding once again.

This has huge implications to the greater South Florida real estate market. After all, everything is connected when it comes to economics.

Thus, as the commercial real estate market continues to improve, that is only bound to help the residential real estate market continue to improve as well.

Commercial Real Estate in South Florida

According to the recent article I read in the Sun-Sentinel, office vacancies in both Broward County and Palm Beach County are down year-over-year, although they are still relatively high.

Here’s the most recent data on commercial real estate in South Florida:

The office vacancy rate in Broward County was 14.3 percent from July to September, down from 14.6 percent a year ago.
Meanwhile, Palm Beach County’s vacancy fell from 19.5 percent to 18.7 percent in that same year.
Generally speaking, a strong market would have vacancy rates between 8 to 10 percent.
During the third quarter of 2012, Broward County’s office rental rates fell from $24.75 to $23.75 when compared year-over-year.
Meanwhile, rates in Palm Beach County fell from $26 to $25.75 during that same period.
More restaurants and retail shops are leasing space as well.

Although these may seem like small improvements, this recent commercial real estate data suggests that the market is currently experiencing a rather positive trend.

This will pay off on the South Florida real estate market. After all, a more robust commercial real estate market will attract more workers and home buyers to the area – which will in turn create positive growth on the local housing market.

Buying and Selling South Florida Real Estate

If you’re thinking about investing in a piece of South Florida real estate anytime soon, please don’t hesitate to contact me, Scott Patterson.

When you do, I’ll tell you about available South Florida listings as well as offer you such helpful resources as:

Already living in South Florida and considering listing? Contact me today to learn about some of the home-selling resources I offer for free!

Until next time,

Scott

More Canadians Flocking to South Florida to Invest in Real Estate

access_timeMarch 6, 2013personScott Patterson

For the last several years, the focus on the South Florida real estate market in terms of international investors has been on Brazilians.

Now it appears that there’s another country whose citizens are entering the South Florida real estate market en masse: Canada.

According to a recent article I read, more Canadians are coming to the South Florida real estate market on account of a strong Canadian dollar and a weaker American dollar.

Translation: Canadians are seeing this as a prime opportunity to get a great return on their investment.

South Florida Real Estate for Sale

As Canadian baby boomers are looking for a place to invest their dollar, they’re finding a fantastic welcoming in South Florida.

Given the strong Canadian dollar and the already great deals to be found on the South Florida real estate market, it’s an obvious choice, experts say.

In fact, Canadians have become the No. 1 international visitors to Florida and the largest foreign buyers of second homes in the state of Florida, according to recent data.

Broken down further, 3.3 million Canadians visited the state in 2011, up 7 percent from 2010.

During that time, they spent $4 billion, up nearly 14 percent from the year before.

In Broward and Palm Beach counties alone, snowbirds from Canada and other places spent more than $2 billion last year!

This winter season, their tourist spending should rise about 2 percent.

And that’s just in tourism dollars!

Home investment-wise, Canadians are major players on the South Florida real estate market.

This is great news for the South Florida real estate market because these investments are breathing new life and energy into the market and making it more stable and robust.

Invest in South Florida Real Estate Today!

Contact me, Scott Patterson, to learn about the various available listings in such South Florida real estate markets as:

Until next time,

Scott

South Florida Seeing a Shortage of Foreclosures

access_timeDecember 3, 2012personScott Patterson

The outlook continues to look rosier and rosier for South Florida home sellers lately!

According to the most recent media reports, there’s a shortage of foreclosures for sale.

Rates of foreclosed homes for sale have dropped in both Miami-Dade and Broward County!

This is great news for area home sellers since foreclosures generally pull down the median sales price, meaning that it’s harder for sellers to get the price they want for their own home.

Real Estate for Sale in Aventura, Sunny Isles, Golden Beach, Hallandale, Hollywood and More

Here’s an overview of the most recent South Florida market data, according to the Miami Herald:

Broward County foreclosures-related home sales were about 3,259 during the second quarter, down 31 percent from last year.
In Palm Beach County, there were about 2,966 foreclosure sales, down 15 percent from a year before.
Miami-Dade foreclosures down about 29%.
Distressed properties account for 20 percent of all sales in Broward County.
In that county, the average price for homes is $126,230.
Meanwhile, distressed properties account for 22 percent of all sales in Palm Beach County.
In that county, the average price for homes is $121,766.
During the week ending on Oct 24, there were a total of 9,149 homes for sale on the Miami, Florida real estate market, including more than 2,000 that were in some stage of the foreclosure process.
Also during that week, the average listing price for Miami homes was $592,559, up 0.7 percent from the previous week.
Between July and September, the median sales price for a 1-bedroom Miami home was $120,000
The median sales price for a 2-bedroom home was $119,050
And the median sales price for 3- and 4-bedroom homes was $150,100 and $225,000, respectively.

As previously noted, foreclosure sales have a negative impact on area home sellers because they tend to pull the median home sales price and market values down.

Thus, the fact that foreclosure-related sales are dropping is a positive sign for area home sellers who want to get the best price on their home!

Your South Florida Real Estate Expert!

If you’re interested in learning more about how the recent trend on the South Florida real estate market will affect you as a home seller, please contact me, Scott Patterson.

I have experience with helping home owners sell their homes on such local real estate markets as:

Thus, I’ll be happy to help you with all of your South Florida real estate needs as well!

While you’re at it, I encourage you to take a few moments to check out some of my helpful online home selling resources, such as:

Until next time,

Scott

South Florida Real Estate Market Showing Signs of Rebound and Growth

access_timeNovember 29, 2012personScott Patterson

There’s reason to celebrate a little for the South Florida real estate market – especially if you’re a home seller with a list price under 1 million.

From a decreasing supply of available homes for sale to rising sales prices – now is a great time to be a Seller especially if your property is listed under 1 million today. It’s all about “Supply & Demand” which is very price sensitive and it’s very important to understand the market depends on the “List Price” of your property, the higher the “List Price” the more inventory there is.

Below, I’m going to tell you some of the recent findings from a national index on the health of the South Florida housing market.

Selling South Florida Real Estate

According to a recent market report, South Florida home prices increased by more than 5 percent in July when compared to July 2011 (depending on price range).

That’s not all that has South Florida home sellers excited!

Here’s a look at some other good news that has recently come out about the market:

In August, Broward County had fewer than 5,000 single-family homes for sale.
When compared to a year ago, Miami-Dade & Broward County’s inventory has nearly been cut by 40-50%.
Meanwhile, Palm Beach County’s home inventory was about 6,648 in August, which is 43 percent less than it was a year ago.
In Miami, the average price per square foot of Miami area homes was $155, down 4.3 percent from the same period last year.
Between July and September, the median sales price for Miami homes was $155,000, up 6.9 percent from the year before.
Also during that period, the total number of Miami home sales decreased by 11.6 percent.
Broward County’s unemployment rate decreased from 8.1 percent to 7.8 percent between July and August. This is good news for home sellers because it means that more home buyers are in a position to purchase a home.
Broward County’s unemployment rate is now better than the national average, which is 8.1 percent.
Meanwhile, Palm Beach County’s unemployment rate also fell to 9.6 percent, albeit that’s still higher than state and national averages.
Interest rates have continued to fall, with the average 30-year fixed rate falling to a record-setting 3.4 percent recently. Such low rates are sure to attract additional home buyers.

Still, the recent article I read noted that there are some ways in which the housing market can improve even more.

For instance, inaccurate home appraisals have been blamed in recent years for delaying or costing real estate deals.

Experts are now calling for more accurate and consistent appraisals to aid in the housing market’s recovery.

Some are also saying that a slight increase in interest rates may increase home buyer demand since home buyers will feel a sense of urgency to invest before interest rates continue to climb.

Your Dedicated South Florida Real Estate Expert

The South Florida real estate market is a complicated industry with plenty of moving parts that may affect your experience as a home seller.

So for an optimal experience that results in you selling your home in a short amount of time and for a great price, please contact me, Scott Patterson.

I have years of experience working on the South Florida real estate market and I’ll be happy to provide you with invaluable advice, helpful home-selling resources and more!

Start today by requesting my free selling South Florida real estate eBook or a pre-listing package!

Until next time,

Scott

EWM International Realty is now Larger and Better than Ever!

access_timeNovember 26, 2012personScott Patterson

We have exciting news to share with you about our company’s parent company, Berkshire Hathaway.

Berkshire Hathaway has purchased the real estate franchise “Prudential” / Real Living and launch an entirely new brokerage brand for these agents: Berkshire Hathaway HomeServices.

Our South Florida real estate company EWM has been owned by Berkshire Hathaway for the last six years.

This new purchase, however, is guaranteed to make the company even stronger and more responsive to home buyer’s and home seller‘s needs.

Selling Real Estate in South Florida and Around the Country

Berkshire Hathaway has acquired Prudential’s agent network from Brookfield Asset Management.

Next year, Berkshire Hathaway and Brookfield will begin converting Home Services agents over to the new brand as well.

The new company will be based in Irvine, California and will be led by a team of Prudential Real Estate executives.

Here are some more facts of this recent deal:

Berkshire’s HomeServices of America (which already owns local brokerages with 16,000 agents in 21 states) will be the majority owner
The Prudential and Real Living brands will be eliminated over time.
Independent local brokers that HomeServices already owns will not have to switch affiliation but their branding will start to note that they’re owned by Berkshire Hathaway.

Your South Florida Real Estate Expert

By aligning ourselves with this new and improved super real estate company, EWM will have even greater access to real estate resources that will ultimately help you as the buyer or seller!

Thus, we’re quite thrilled about this newly formed real estate company!

If you’re considering entering the South Florida real estate market anytime soon, please contact me, Scott Patterson.

I’ll be happy to assist you as you navigate any one of the following South Florida markets:

Until next time,

Scott

South Florida Developers Are Proposing Dozens of New Condominiums

access_timeNovember 1, 2012personScott Patterson

Developers are feeling so confident with the South Florida real estate market lately that they’re planning on constructing dozens of new condominiums in the upcoming months and years.

According to a recent article I read, developers are proposing almost 55 new condominium projects totaling more than 10,000 units in the communities of Miami, Fort Lauderdale and West Palm Beach.

This signals that the South Florida housing market is becoming increasingly robust and attractive for real estate transactions!

South Florida Luxury Condominiums for Sale

Miami-Dade County has been leading the area with new condominium projects in the works.

Evidently, there are nearly 40 proposed projects in the county, all of which total more than 7,900 units.

These condominiums are expected to be built in Aventura, Bal Harbour, Miami, Key Biscayne, Miami Beach, Sunny Isles including the development The Village at Island Estates that I am representing.

Broward County has the second most proposed projects with 11. These condominiums will bring an additional 1,600 units to the area and will be constructed in Fort Lauderdale, Hallandale Beach and Hollywood.

In third place is Palm Beach County with at least 5 proposed condominium projects totaling 700 units. These condominiums are expected to be constructed in Juno Beach and West Palm Beach as well as Gulf Stream.

Experts are saying many domestic and international prospective developers are sweeping South Florida searching for previously approved projects that were put on hold after the housing market bubble burst in 2007.

Leading the way in this latest condominium development blitz is the 23 Biscayne Bay condominium in Greater Downtown Miami.

One tower has already been constructed and an additional 11 are expected to be completed as soon as 2014.

As of the second quarter of 2012, buyers have purchased about 93 percent of the nearly 49,000 new condos created in the largest coastal markets during the most recent South Florida real estate boom that began in 2003.

At the current sales pace of nearly 150 units per month, the 3,400 unsold new condos could be acquired in the first half of 2014.

Many of these newly proposed condominiums appear to cater to niche markets, such as the high-end luxury condominium market.

These new developments plan to attract high-end buyers with such features as incredibly spacious balconies, automobile elevators and personal swimming pools.

Your South Florida Real Estate Expert

This is an exciting time to be a South Florida home buyer – especially given all of the new luxury condominiums that are expected to be constructed soon!

If you’re thinking about relocating to South Florida anytime soon and investing in your own condominium, please contact me, Scott Patterson.

I’ll be happy to walk you through the condo-buying process with helpful advice and user-friendly resources such as:

Until next time,

Scott