The Fisher Island lifestyle is unparalleled, offering a uniquely sophisticated blend of grandeur and charm. All in an exquisite ocean and bayfront setting. From the Vanderbilt Mansion’s main club to the Mediterranean-inspired tennis center, championship golf course, deep water marinas and an array of fine restaurants, the amenities offered exclusively to Fisher Island residents and their guests are spectacular. Best address in town, first class!

19112 Fisher Island Drive
3 bed/3 baths lanai with 2,049 sq. ft. interior
French doors leading out to 2,700 sq. ft. of terraces
Marble floors, plantation shutters
Great for kids and pets
For Sale: $1,400,000 – For Lease: $8,000/month

19133 Fisher Island Drive
2 bed/2 baths with 1,875 sq. ft. interior plus balcony
Enjoy water views, walk to beach, club & pool
For Sale: $1,100,000 – For Lease: $4,000/month

Both units can be placed in hotel program.

NANCY W. BATCHELOR
(305) 329 7718
nancy@nancybatchelor.com

According to the National Association of Realtors, only three of four accepted offers ever close:

• 11% of contracts are cancelled due to low appraisals.
• 16% of buyers change their mind before a contract.

For a no-obligation confidential consultation concerning your individual real estate needs,
call Nancy and her team of experienced real estate professionals.
Cell 305 903 2850
Office 305 329 7718

Infographic by The KCM Crew on July 29, 2011

Source: Miami Association of Realtors

Miami, FL – Total current cumulative pending home sales – including single-family homes and condominiums – in Miami-Dade County are 19 percent above what they were a year ago, from 10,113 to 12,014 and .7 percent, up from 11,936, above the previous month according to the 24,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) systems. 

June Contract Activity
The total number of listings, including single-family homes and condominiums, that pended during the month of June increased 33 percent, from 2,740 in June 2010 to 3,650 in June 2011.  Single-family home and condominium sales that pended during the month increased 38 percent and 30 percent respectively.

“Miami is in demand, as reflected by consistently increasing pending and closed sales and dwindling housing inventory,” said Jack H. Levine, 2011 chairman of the board of the MIAMI Association of REALTORS.  “Our market is a focal point for global business headquarters, celebrities and the entertainment industry, tourists and visitors, and the ever important international buyers.  This type of attention and demand will fuel long-term market strengthening.”

Cumulative Pending Sales on the Rise
In the current month, pending sales of condominiums performed better than that of single-family homes.  Pending sales of condominiums are 22 percent higher than they were a year ago, up from 5,720, and are one percent above what they were last month, up from 6,909.  Pending sales of single-family are 15 percent above what they were a year ago, up from 4,393 to 5,036, and .2 percent above last month, when pending single-family homes sales totaled 5,027.

“Current market statistics point to very positive news for South Florida real estate,” said 2011 MIAMI Association of REALTORS Residential President Ralph E. De Martino.  “The strong demand presently being experienced has resulted in an extremely rapid recovery, exceeding expectations and outperforming the rest of the nation.  It is a great time to buy and sell South Florida real estate!”

Nationally, the Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 2.4 percent to 90.89 in June from 88.8 in May, according to the National Association of Realtors. The index is 19.8 percent higher than the 75.9 percent reported in June 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. 

by The KCM Crew on July 19, 2011

It seems that every time we talk about real estate today the conversation immediately goes to the financial aspects of buying a home. Where are prices headed? Where are interest rates headed? Should I wait to try and get a ‘better buy’? Should I wait until I can get a ‘steal’?

The odd thing about all these questions is that survey after survey keeps telling us that price is not the reason families actually buy a home. When money is considered at all, it is in light of not paying rent to a landlord. Let’s look at two recent surveys as examples:

National Housing Survey

The top five reasons given in the survey for buying a home, in order, are:

• It means having a good place to raise children and provide them with a good education
• You have a physical structure where you and your family feel safe
• It allows you to have more space for your family
• It gives you control of what you do with your living space (renovations and updates)
• Paying rent is not a good investment

The Myers Research and Strategic Services Survey

The top five reasons given in the survey for buying a home, in order, are:

• Home ownership provides a stable and safe environment for children and other family members
• Home ownership means the money you spend on housing goes towards building equity, rather than to a landlord
• Home ownership creates the opportunity to pay off a mortgage and own your home by the time you retire
• Home ownership creates the opportunity to live in a neighborhood that you enjoy
• Home ownership allows you the right to decorate, modify and renovate your home as you see fit

Bottom Line

Price dominates conversation when we talk about buying a home. However, when it comes down to it, we actually buy for the same reasons our parents and grandparents did – we want a better lifestyle for ourselves and our families.

Home values appear to be back on the upswing in South Florida, according to a recent CBS4 Miami news report. The shift is attributed to decreased inventory and record sales. Ron Shuffield, EWM President, notes that EWM is selling more homes and condos now than ever before.

“Shuffield has the numbers to prove it. During the peak of our market in 2005 Miami-Dade realtors averaged 2200 sales a month. This year they are pushing close to 2500,” CBS’s David Sutta reports.

The report cites EWM’s statistics that show the median price of a single-family home in Miami-Dade averaged $150,000 in January and has jumped to $180,0000 in five months, while condos were averaging $90,000 in January and today they average $124,000. As supply decreases and homes appreciate in value, it is a good sign for homeowners owing more than their home is worth because their home values expect to increase as well.

“International buyers have been the fuel for the Miami recovery,” states EWM’s Ron Shuffield in a recent USA Today article. According to the article 31% of Florida home sales were to foreign buyers – up 10% since 2007.

Read the full article:

Foreign buyers lifting U.S. home sales – USATODAY.com
http://www.usatoday.com/money/economy/housing/2011-07-05-forign-buyers-real-estate_n.htm
Much lower prices and a weaker dollar are pulling foreign buyers into the U.S. real estate market.

ORLANDO, Fla. – June 21, 2011 – Florida’s existing home and existing condo sales rose in May, according to the latest housing data released by Florida Realtors®. Existing home sales increased 3 percent last month with a total of 17,228 homes sold statewide compared to 16,790 homes sold in May 2010, according to Florida Realtors. Statewide sales of existing condos last month rose 17 percent compared to the year-ago sales figure.

Twelve of Florida’s metropolitan statistical areas (MSAs) reported higher existing home sales in May; 14 MSAs also had higher condo sales. It’s the sixth consecutive month that Florida Realtors has reported higher year-over-year existing home and existing condo sales statewide.

“With low mortgage rates and a broad inventory of homes at affordable prices, qualified buyers are realizing that there may never be a better time to find the home they’ve been dreaming of in Florida,” said 2011 Florida Realtors President Patricia Fitzgerald, manager/broker-associate with Illustrated Properties in Hobe Sound and Mariner Sands Country Club in Stuart. “Consult a local Realtor® about qualification criteria and to find out more about opportunities in your local housing market.”

Florida’s median sales price for existing homes last month was $135,500; a year ago, it was $142,900 for a 5 percent decrease. However, May’s statewide existing home median price was about 2.9 percent higher than it was in April. Analysts with the National Association of Realtors® (NAR) note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in April 2011 was $163,200, down 5.4 percent from a year ago, according to NAR. In California, the statewide median resales price was $293,570 in April; in Massachusetts, it was $279,000; in Maryland, it was $226,370; and in New York, it was $200,000.

According to NAR’s latest industry outlook, tight credit is one of the reasons why the market is underperforming. “Although existing-home sales are expected to trend up unevenly through next year, unnecessarily tight credit is continuing to restrain the market along with a steady level of low appraisals that result in contract cancellations,” said NAR Chief Economist Lawrence Yun. “A robust economic and housing market recovery cannot occur as long as banks continue to hold onto huge cash reserves.”

In Florida’s year-to-year comparison for condos, 8,338 units sold statewide last month compared to 7,104 units in May 2010 for an increase of 17 percent. The statewide existing condo median sales price last month was $98,200; in May 2010 it was $96,400 for a 2 percent increase. May’s statewide existing condo median price was about 6.9 percent higher than it was in April. The national median existing condo sales price was $167,300 in April 2011, according to NAR.

The interest rate for a 30-year fixed-rate mortgage averaged 4.64 percent in May, a drop from the 4.89 percent averaged during the same month a year earlier, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

© 2011 Florida Realtors^®
Reprinted with permission. Florida Realtors^®. All rights reserved.

Banks have become very conservative when lending mortgage money today. With the current foreclosure challenges in the country, we can’t really blame them. The requirements now necessary to qualify for mortgages have gotten much more stringent and it seems will get even more stringent as we move forward. The banks want to make sure the prospective buyer has the ability to repay the loan. However, this does not just involve the borrower buying the property.

The second way a bank can protect their investment in the mortgage is to make sure that the collateral backing that mortgage is secure. That is where the appraisal comes in. The bank wants to make sure that, should the buyer not be able to make their payments, the house they will be forced to take back will sell for an amount at least equal to the balance left on the mortgage. For that reason, the banks seem to be getting more conservative with appraisals also.

This past week, the National Association of Realtors (NAR) released their Existing Homes Sales Report. In that report, they said:

“11 percent of Realtors® report a contract was cancelled in April from an appraisal coming in below the price negotiated between a buyer and seller, 10 percent had a contract delayed, and 14 percent said a contract was renegotiated to a lower sales price as a result of a low appraisal.”

One out of four real estate transactions was either cancelled (11%) or renegotiated to a lower sales price (14%) because of a low appraisal!!

Bottom Line

Every house now has to be sold twice: first, to a potential purchaser and then to the bank appraiser. And, it seems that the second sale may be the more difficult of the two. Sit with a local real estate professional and make sure you put together a plan for both sales.

Reprinted from by The KCM Crew on May 16, 2011

An issue that may have a gigantic impact on the housing market later this year is the lowering of the conforming loan limits. Without an act of Congress, these limits will return to the lower limits that existed prior to 2008. Today, we want to shed light on this issue and what it means to someone thinking about buying either a first home or move-up home valued over $400,000 in certain markets in the country.

What is the ‘Conforming Loan Limit’?

The ‘conforming loan limit’ sets the maximum loan amount, which either Fannie Mae or Freddie Mac are allowed to purchase individual loans. If a loan is larger than this limit, it is considered a ‘jumbo’ loan and is automatically disqualified from being sponsored by Fannie and Freddie. It would have to be handled by the private market.

A Little History

Prior to 2008, the loan limit was $417,000. When prices started to rapidly escalate in certain regions of the country, the limit was increased. In some counties, that limit jumped to over $700,000. These new limits are scheduled to expire this October. If this happens, Fannie Mae and Freddie Mac may no longer be involved in these loans.

What impact will this have on a buyer?

It will cost more in mortgage payments if buyers are purchasing a home over the limit in a region where the limit changed. The Mortgage Market Note explains:

For the affected borrowers, because mortgage rates for jumbo mortgages tend to be higher than rates for conforming loans, financing costs may be higher… Over the latest year, the difference between mortgage rates for jumbo loans and jumbo-conforming mortgages has varied between about ½ and ¾ of a percentage point.

Just a ½ point increase in mortgage rate on a $500,000 mortgage means an additional $154.84 in your monthly mortgage payment; a difference greater than $55,000 over the life of a 30 year mortgage.

Which counties are impacted and to what degree?

Below is a map of the regions affected from the Mortgage Market Note. You can get a breakdown of each impacted county in this report also.

Bottom Line

If you are thinking about buying a home in the near future, you should know how this issue may impact you. Sit down with a real estate professional familiar with your area for further advice.