THE GOOD NEWS

According to the National Association of Realtors:

·        Existing home sales increased 2.7% nationally

·        This is the first time in 7 months that sales activity was higher than a year earlier

·        Chief Economist Lawrence Yun says

o   Home sales uptrend is consistent with improvements in the economy and jobs

o   Consumer confidence is boosting

o   Affordability conditions are a big factor

o   Tight credit has resulted in high levels of all-cash purchases primarily for distressed homes sold at deep discounts – which pulls the median price downward but traditional homes in good condition have held their value

o   Investor activity is another factor re purchasing undervalued homes

·        In January, first time buyers bought 29% of homes sold

·        Investors bought 23% of purchases in January

·        Housing inventory is at a 7.6 month supply, lowest level since 12/2009

·        Existing-home sales increased 3.6% in the South

NAR is America’s largest real estate trade association, representing 1.1MM mebers involved in all aspects of the residential and commercial real estate industries.

DELRAY BEACH IS THRIVING

Soon to become Delray Beach’s first bed and breakfast complex, Hartman House sat on a corner, surrounded by almost century-old fruit trees, half-renovated, neglected and empty.  The theme will be, “step back in time to an easier way of life.

With three separate areas, the main house has over 3200 sq ft with 5 bedrooms ensuite (each with its own bathroom) and a 2-story townhouse over 2400 sq ft, 3 bedrooms, 3 baths and another 3-story townhouse/guesthouse with 2600+ sq ft, 3 bedrooms, 3 baths, the property at 307 NE 7th Avenue was the home of Gustav Hartman, a former assistant postmaster of Delray Beach in the early 1900's.  

 

There are 5 garage spaces, pool, spa, and game room with wet bar.

Purchased for $400,000 in February 2010, the owners are intent on restoring it’s natural 1920’s beauty by re-creating the original crown molding, restoring the Dade County pine floors and building a 75-foot pool surrounded by an oasis of 80-year-old mango, starfruit and avocado trees and native palms.  They are creating an ambiance “of a slower, gentler time.”  Key lime scone scents will awaken you for your homemade breakfast.

Located 4 blocks north of trendy downtown Atlantic avenue with shops, restaurants and local events, it is a short walk to the intracoastal waterway and the beach.  Near I-95 and two major airports.  

In a different mode, Kotler Group of West Palm Beach paid $3.7MM for vacant land just north of the Old School Square Cultural Arts Center, with plans to build a 4-story 134-room hotel.  The hotel will also be adjacent to the livelty Pineapple Grove arts and entertainment center, and prices are planned to range from $100-$200 per night.  

 The tonier British Colonial style Seagate Hotel on Atlantic Avenue is close to the beach, the Marriot and Residence in are old standbys, familiar to many vacationers, and just north on A1A a luxury complex is going up, 4001 North Ocean, on the ocean, with 34 units, ranging from $1.4MM to $3MM.  Almost half the units are sold or “in the works”.

A recent New York Times travel article dubbed Delray Beach as being on the verge of becoming “a national destination". 

GOOD NEWS AND BAD NEWS ON THE HOME FRONT

Zillow reported that south Florida home values are down 15.4% year-over-year in 4Q2010.  Home Value Index fell to $139,100 from $160,000 at end of 2009.

 Housing bargain sales wins prevail with big losses for many sellers.  This IS THE BEST TIME EVER to buy in Florida.

Foreclosures in Florida fell 54% according to Realty Trac year-over-year in January 2011.  Foreclosure filings last month were 21,671 in Florida, one for every 409 housing units in the state which is 15.4% lower from December 2010.

 What to make of this?  An interesting 9-acre man-made island between Aventura and Sunny Isles Beach is on the market for $49.5MM reports  Condo Vultures.  In the 1950’s the DOT created the island as part of a massive dredging effort.  Assessed value?  $3MM or $7.90 per sq ft according to the Miami-Dade County Property Appraisers Office.   Sounds like an interesting deal… so let’s wait and see who (if anyone) buys this island!

 Mortgage interest rates are going up… rate topped 5% for the first time since last April.  Rates, however, are still historically low according to Florida Realtors organization, and there is actually a $100 a month jump on a $200,000 loan since the lowest rate in November.   Rates follow the 10-year Treasury note yields, heading up with inflation fears.   Many buyers are paying cash.

WANT TO SEE THE NEWEST DECORATOR MODELS?

Model Tour: 1200 Hillsboro Mile, Before & After – 2/8/2011 at 2 pm

Join the Robb & Stucky Design Team of Rene Evans, ASID and Richard Ramus at 1200 Hillsboro Mile for a private tour of their beautiful model. This is an opportunity to see the “before” unfurnished unit and the “after” decorated model–and the transformation is amazing. This event is offsite. The model is located about 1 mile south of Hillsboro on the west side of A1A. Reservations are required so please call early to reserve your space and to receive directions. No cameras, please.

Model Tour: Villas By The Sea, Before & After – 2/16/2011 at 2 pm

Have you ever wondered how a designer finds inspiration and then transforms it into a design concept? Join Robb & Stucky Design Associate Ron Acosta on-site at Villas by the Sea. Ron will start the tour in an unfurnished unit, then continue to the completed model for comparison. He will share his design process, and the secret that inspired the special look of this incredible Oceanside model project. Meet first at the Sales office for Villas by the Sea, located off A1A just north of Commercial Blvd in Lauderdale by the Sea. Reservations are required so please call early to reserve your space and to receive directions. No cameras, please.

Please call (561) 862-5597 to reserve; reservations are limited!