Saturday, February 12, 2011

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.

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