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 18, 2011

There have been some bright spots in the residential real estate market over the last couple of months. Several price indices have reported a stabilization of prices and some regions have even shown small levels of appreciation. This has led some to believe that we may have reached a bottom for home values. We must realize that what we are actually experiencing is a ‘window of opportunity’ as the banks are delayed in bringing certain inventories of distressed properties to the market. Let’s look at what others are reporting:

Bloomberg Businessweek

“The crux of Simon’s analysis is that the loose lending practices seen during the housing bubble allowed 5 million renters to become homeowners, and that the market is in the protracted process of evicting this group. He believes housing prices will decline 6 percent to 8 percent nationally, with 6 million to 7 million more foreclosures yet to come.”

Yahoo Finance

“The problem with the real estate market remains excess inventory. Based on Shilling’s research, there are 2 million to 2.5 million excess homes in the country — a supply that will take 4-5 years to work-off. The result: Housing prices will fall another 20% and underwater mortgages will balloon from 23% to 40%, he says.”

Housing Wire

“Both warmer weather and the drop in distressed sales percentage have contributed to recent home price improvements. However, given the disappointing pace in housing demand recovery, both factors may turn against us in the coming winter and push home prices lower again…

This supply-demand imbalance affirmed JPMorgan analysts’ estimate of a further 4% drop in home prices from the first quarter of 2011 to a new bottom next year.”

DS News

“Home prices have gotten a little bit of a boost in recent months thanks to a seasonal uptick in market activity. Most analysts, however, expect further declines to characterize the later part of the year and possibly extend into next year, largely because of the huge supply of foreclosures on the market.”

Bottom Line

If you are thinking of selling in the next twelve months, you would probably do much better if you sold your house sooner rather than later.

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.

You have finally found the house of your dreams. It is priced right and is receiving a lot of attention from other buyers. You don’t want to miss this opportunity so you are ready to put in an offer with the real estate agent immediately. What can you do to guarantee your offer is the one accepted? Financially, offers can be broken down into three categories:

1.) An All-Cash Offer

Obviously, a cash purchaser is always favored by any seller. In today’s real estate market, an all-cash offer is even more enticing. Last month, one in four real estate transactions were impacted by a low appraisal. An all-cash buyer eliminates the need for the bank appraisal.

2.) A Non-Contingency Offer

If you don’t have the cash reserves for an all-cash purchase, the next best thing would be to make a non-contingency offer. To do this you should be already pre-approved for a mortgage and have your current house already in contract. This gives the seller the confidence that you are already a qualified buyer who will be able to complete the purchase.

3.) A Contingency Offer

Some buyers start the process of looking for a new home before their current home is sold. This could be a big mistake. If you find the home you were hoping for (perfect for your family AND priced right), it will be very difficult to get your offer accepted because you are not actually qualified to buy.

Asking a seller to wait for your home to sell is somewhat unreasonable in today’s environment. One of the reasons you would want the home is because the seller priced the home at a value to sell it NOW. They want to know it is sold when they accept an offer. They normally will not even entertain a contingency offer.

Bottom Line

Unless you have the ability to purchase with cash, the best thing to do is to be pre-approved for a mortgage and have your current house already in contract before looking for the home of your dreams. That guarantees you will get the home you love at a price that makes sense.

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 10, 2011

If you plan on moving anytime in 2011, you should strongly consider selling your house now rather than waiting. Here are five reasons why:

1.) This is when your house will get the most exposure

The spring, and particularly the month of May, is when most buyers enter the real estate market. This surge of buyers dramatically increases the exposure for your house . The best chance of getting quality offers (perhaps even multiple offers) is RIGHT NOW!

2.) Foreclosures and short sales will increase in about 90 days

The good news is that the number of people paying their mortgage on time is increasing. This will lead to less distressed property sales later this year and throughout 2012. The not-so-good news is that there is still a large inventory of existing foreclosures and short sales that will still be coming to market.

As an example, LPS reported in their latest Mortgage Monitor that:

• There are still twice as many loans going 90+ days delinquent as are starting foreclosure
• There are almost three times the number of foreclosure starts as there are foreclosure sales
• Distressed property inventory levels are almost 45 times the rate of monthly foreclosure sales

This means that there is a backlog of properties which will start coming to the market in about 90 days as banks clear up their paperwork challenges. These properties sell at dramatic discounts. They will be your competition. Both Fannie Mae and Freddie Mac have recently discussed the magnitude of this challenge.

3.) Interest rates have risen over the last six months

Interest rates have stabilized recently. However, in the last six months, interest rates have climbed over 1/2%. Every time the rates increase 1/4%, approximately 250,000 buyers are eliminated from qualifying for a mortgage. In an environment of volatile rates, waiting could mean that there will be fewer buyers eligible to purchase your house. It also could mean that you will pay a higher rate on the next home you buy.

4.) Qualifying for a mortgage is about to get even more difficult

Besides increasing rates, there are other factors that will hinder a buyer’s ability to qualify for a mortgage as we move forward. Lending standards have been getting tighter over the last year. And as the government debates the new proposed guidelines (QRM), banks are gearing up for even more stringent standards.

Morgan Stanley recently stated:

“Recent developments in issues such as GSE reform, Dodd-Frank securitization rules, and foreclosure settlement issues suggest a tighter and more expensive environment for mortgage credit.”

This may impact any potential purchaser for your property and may also impact your next purchase.

5.) It’s time to get on with your life

Probably the most important reason to sell is so you can get on with your life. You placed your home on the market for a reason. Do not allow a less-than-stellar housing market prevent you from reaching your goals as an individual or as a family. Think about the reasons you decided to move in the first place. Are these reasons still important to you? If you have to take less than you were originally hoping to get for your house, your family has a question to ask each other: Is the dollar difference in sales price worth putting off our plans? Only you and your family know the answer to that question.

Bottom Line

If you plan to sell this year, the reasons above prove that selling now makes more sense than waiting to later in the year. Sit with a real estate professional in your area today to fully understand your best option.