new condo development

It's really remarkable the incredible optimism that developers now have about the Florida real estate market: a complete 180 from just a few years ago.  And I do not agree with those that say that we're creating a new "bubble".  The dynamics of this new expansion is very different.  See here:
83 New Condo Towers Proposed For South Florida; It's 2004 All Over Again - WORLD PROPERTY CHANNEL Global News Center

bidding wars

It never ceases to amaze me that what's old is once again new again.  Not since 2006 have I witnessed the type of market activity that I'm seeing in today's market.  At first it was only the lower priced homes that were getting the multiple offers.  Yet now, this type of activity has started happening at the higher price ranges.  Case in point:  I brought a $475,000  home to market on a Monday, sold it for full asking price on Wednesday, and I have another full price back-up offer in waiting.  Seller's market?  You bet!

A seller's market indeed

Things are certainly moving in a positive direction in South Florida's real estate market.  My challenge now is simply a lack of housing inventory-plenty of buyers and not enough houses!

Thought You'd be Interested

Where are the houses?

I was recently at our office meeting and I just can't believe how many of my colleagues are working with buyers and are frustrated because they have no homes to put them in! What a great time to sell....!!!

The magic number 6

What is it?  The magic number 6 or course!  It represents the months of housing inventory that we like to see.  Why?  Because historically speaking, 6 months of inventory represents a balanced market; one in which the forces of supply and demand are once again in " predictable equilibrium"(see prior post).  It represents a market where, generally speaking, prices are stable.  The way we derive the number is by dividing the number of homes on the market in a given area by the number of homes that are selling in a given month.  And as a general rule any number above 6 is a depreciating market and any number below six is an appreciating one.  It's also noteworthy that the farther away from 6 we get, the crazier the market conditions are.  Right now, in Miami-Dade County we have about 4.5 months of inventory, and the bidding wars have begun!

A grand experiment...1776

The United States of America is, and continues to be, the grandest experiment of planet earth.  In 1776, nothing like what the ragtag collection of would-be revolutionaries were looking to create had yet to conceived anywhere on the planet.  What a ridiculous idea...a government of the people, for the people, and by the people.  Yet those first few forward thinking courageous trailblazers would set forth a series of events that would inevitably change each and every single American's life from that point forward.  And countless numbers of them would make the ultimate sacrifice for it!

Whether we realize it or not, we are both privileged and tasked with the continuation of this grand experiment, which in historical global context, is still in its infancy.  Our nation has been challenged many times by events and circumstances far worse then our current economic, social, and seemingly insurmountable political battles would have us believe.  And through it all, our Grand Experiment has always prevailed.

So rest assured my fellow Americans, that as we pause on this Independence Day to give thanks to those who found the courage to initiate our Grand Experiment; that the best days of The United States of America are indeed ahead of us! 

HOT HOT HOT!!!

If this isn't a seller's market I don't know what is.  Note the homes on the market steadily decreasing while the pending sales are increasing.  And how about the fact that home sellers are getting over 90% of their asking prices?  Miami-Dade County real estate is once again HOT!

Dade County - Market Trend

http://coldwellbanker.net/marketTrend/fla/dade.html

NAR: International sales continue to climb in U.S. market

This phenomena is certainly allowing sellers to get more money for their homes...
NAR: International sales continue to climb in U.S. market

why sell now?

Some of the would-be sellers that I regularly consult  with wonder whether now is a good time to sell their homes.  Please read this article and then factor in that we're presently in the midst of the peak buying season, PLUS the fact that interest rates are at historic lows.  Could now be the right time for you to make a move?

Spring revival for America's housing market

Also, let's not forget that we have less than 6 months of housing inventory!

The Velocity of Money

The velocity of money is a term used by economists to describe the speed at which money makes its way through our economy. During boom times money moves quickly through the system as it's spurred on by consumer spending and investment, and in recessionary times it's velocity is diminished.

Why should you care?

Well, if you've been thinking about buying a home, then the "velocity of money" should be of concern to you. The Federal Reserve uses interest rates to control the money supply flowing throughout the system; low rates=more money in the system, and higher rates=less money in the system. In order to encourage borrowing, one tool that the Fed has is to lower the discount rate(the rate at which banks borrow money from the Fed). The net result is more borrowing, subsequently contributing to an increase in the "velocity of money".

Historically speaking, this monetary strategy has been used to encourage the country out of a recessionary cycle. However, over playing this card can be have unintended negative consequences. In the 1970's the increased "velocity of money" netted a 13% increase in the money supply, and interest rates skyrocketed to as high as 20%! Fast forward to 2009. In the hopes of increasing the velocity of money the Federal Reserve has exponentially increased the supply of money compared to the net increase in the 70's; I've heard some estimates as high as a 100% increase in money supply over a 12 month period! Now I'm not an economist or financial guru; I'm simply taking a historical example, looking at what we're doing today, and extrapolating a possible end result; HIGHER INTEREST RATES.

In short, higher rates mean less buying power, higher mortgage payments, and more difficulty in securing financng. So as you ponder whether to take the plunge or not, remember that the 'velocity of money"can put a real damper on you future plans. :(

5 real estate assumptions to rethink

5 real estate assumptions to rethink

By gone days of low ball offers

Great news for Florida!

Daily Real Estate News

Are we doing this again? CAUTION my friends

Start your engines - m.NYPOST.com

On the rebound

U.S. Housing Looks Ready to Rebound - Barrons.com

A shot of adrenaline for Florida!

http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=4&id=273173

Blowing my own horn...

Thank you for your faith and trust in me to handle your real estate needs. It's an honor and a privilege.

do it NOW!

Windows of opportunity of often seen through the rear view mirror. "I should have done this. Why didn't I buy that?" Why didn't I sell my house in 2005? You get the idea. At times, we become so preoccupied with these closed windows that we neglect the open ones that are right in front of us. Such is the case with interest rates. In short, if you're thinking about buying, do it NOW as these historically low rates won't be around forever. And if you're thinking about selling do it NOW because there are plenty of buyers out there that are taking advantage of these low rates and I simply don't have enough houses to put them in!

tough love for home sellers

In a way, I love the home sellers that grant me the privilege to guide them through such important transitions in their lives. If fact, I love them enough that I sometimes have to beat them up a little; tough love if you will.

Any of my colleagues can certainly attest to the fact that we simply have more prospective buyers than available properties for them. Sounds like a farce, right? After all, you've had your home on the market for months with agent Joe Smith without a single offer. Where are all of these alleged buyers?, you might be thinking. "And don't tell me that I'm overpriced!" Well.....maybe you are and maybe you're not. But rest assured that in a commodity market such as real estate, if you have your home on the market (especially in Miami Lakes!) and it's simply not selling it's because of one thing, and one thing only: There is NO perception of value for your property. Furthermore, perception of value has nothing to do with condition, upgrades, location, amenities, or other "stuff". Simply put, the value proposition that you're making to the prospective buyer pool is being overlooked, and passed up for other more attractive value propositions.

Your neighborhood is selling. Your competition is moving on with their lives and taking advantage of the "low prices" and "low interest rates". So what's holding you back Mr. Seller?

While it's difficult to pinpoint the problem or suggest a solution without knowing the particulars of a situation, one can be absolutely certain that market conditions have nothing to do with it.

working with Carlos...

client testimonial...

http://www.youtube.com/watch?v=e44my393vX8&list=UUIp54dgqzM2IoGCiUx2jfiw&index=2&feature=plcp

thank you for viewing and for your support.