S. Fla.’s real estate market looks hot again

MIAMI – May 24, 2012 – Bidding wars are erupting from Homestead to Weston, as home sales and prices take off, further reinforcing the end of a prolonged market slump.

A two-bedroom, two-bathroom, bank-owned condominium in Coral Springs sparked 64 offers within 10 days – selling for $71,000 on Tuesday, or 34 percent over its $53,000 listing price.

“It was a feeding frenzy. I’ve never seen anything like it,” said Marta DuPree, broker associate and vice president of the Keyes Company in Coral Springs. “It was a rentable building, so all the investors were out.”

In Broward County, the median sales price of single-family homes rose 17 percent in April to $205,000, and condominiums jumped 17.4 percent to $84,300, compared to prices in April 2011. And in Miami-Dade, home prices continued a five-month ascent – up 30 percent for condos, to $150,000, and 8.2 percent for single-family homes, to $183,000, compared to a year ago, according to figures released Tuesday by the Miami Association of Realtors.

Across South Florida, higher demand is leading to multiple bids and, in turn, elevating prices – as the real estate market keeps turning around.

“We have a very limited amount of inventory at this point and there are a lot less foreclosures on the market,” said Tony Garcia, district sales manager for the Keyes Company in Homestead. “What we are seeing is that people are going again to bidding wars … We’re in a situation where for 80 percent of contracts there are at least three or four offers for the same property.”

Realtors say the inventory of residential listings is way down. It has decreased 34 percent in the past year in Miami-Dade, from 17,897 to 11,878, and down 4 percent since March, the Realtors’ Association said.

Similarly, in Broward, the inventory of residential listings has dropped 30 percent in the past year, from 15,781 to 11,086, also down 4 percent from March.

With a housing stock of 16,000 homes and condos in Weston, only 254 single-family homes and 91 condos are currently for sale, said Chip Rowand, assistant district sales manager for the Keyes Company’s Weston office.

Neighboring areas of Southwest Ranches, Pembroke Pines, Davie and Cooper City are all experiencing a similar dearth of inventory, said Fritz Hawkins, general manager for the Keyes Company.

“We can put a property on the market and we can have multiple offers in one day,” he said.

Investors with cash – predominantly foreign buyers – continue to fuel the market.

In both Miami-Dade and Broward, 64 percent of closed sales in March were all-cash sales, with the vast majority to international buyers, the Miami Association of Realtors said.

“We’re at a point where builder inventories are low, and in fact, for some builders, sales are proceeding faster than they can build,” said Brad Hunter, South Florida director for Metrostudy, a housing market advisory firm headquartered in Houston.

“For those who are waiting four or five or more years for home prices to stabilize and start edging back upwards, we are essentially there,” he said.

Meanwhile, distressed properties still make up a large number of sales.

In April, 47 percent of all closed residential sales in Miami-Dade were distressed, including REOs (bank-owned properties) and short sales, compared to 59 percent in April 2011 and 49 percent the previous month.

In April, 38 percent of all closed residential sales in Broward were distressed, compared to 50 percent in April 2011 and 41 percent the previous month.

Even more distressed properties are sure to hit the market, which could still dampen prices, analysts say.

“We still have 52,000 foreclosures that haven’t been sold, and it is still taking 809 days to process a foreclosure in Florida,” said Jack McCabe, chief executive of McCabe Research & Consulting, based in Deerfield Beach.

When those distressed properties become available, they may be sold online, rather than through Realtors, he said.

“Things are better, but they are still not great, and there is still a flood of distressed property yet to be sold,” McCabe said. “And that will have an impact on the marketplace.”

Statewide median sales prices in April increased 10.2 percent to $144,350 for single-family homes and 16.1 percent to $108,000 for condos, according to the Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. The national median existing-home price for all housing types was $177,400 in April, a 10.1 percent increase from April 2011.

Five Things to Know Today

The Patch RV is giving stuff away today, get ready for Memorial Day weekend and more is going on in Clearwater Friday (May 25).

1. Get those grills ready. Expect a mostly sunny day with a high near 90 and a 20 percent chance of thunderstorms after 2 p.m., according to theNational Weather Service.

2. Well, it’s back! The Patch RV is going around Clearwater giving away free stuff in return for canned goods to help us in our goal of raising 2,000 pounds of food for the Feeding America Tampa Bay Give-A-Ton food drive. 

• Get free coffee from 7 to 9 a.m. at Dunkin’ Donuts, 2551 Gulf to Bay Blvd
• Get a free appetizer from 3 to 6 p.m. atCooters, 423 Poinsettia Ave

3. After spending the afternoon with us at Cooters check out the Edgar Winter Band as they perform as part of the last Blast Friday of the season. The 400 block of Cleveland Street is closed for the street festival from 5:30 to 10 p.m.

4. Looking to fill out your things to do this weekend? Check out pro skateboarders Tim Johnson andJimmy “The Greek” as they do demos and sign autographs from noon to 3 p.m. Sunday at Ross Norton Extreme Sports Park, 1426 South Martin Luther King Jr. Ave. The fee to skate is the same, and there is a $3 fee for those who would like to watch.

5. Aside from grilling out or taking out the boat, or going to the beach what else are you going to do this Memorial Day weekend? Check out our Memorial Day coverage to prepare for the extended weekend. Don’t miss the Tampa Bay Veterans Alliance sunset parade and ceremony starting at 7:30 p.m. Sunday at 201 S Glenwood Ave. 

Peanut Butter-Cup Cookies

Ingredients

2 1/2 cups all-purpose flour
1 teaspoon baking powder
1 1/2 teaspoons baking soda
Pinch of salt
16 tablespoons (2 sticks) unsalted butter, at room temperature
1 cup creamy peanut butter $
1 cup sugar
1 cup packed light brown sugar
2 large eggs $
55 mini peanut butter cups, unwrapped

Preparation

1. In a bowl, whisk flour, baking powder, baking soda and salt. In a large bowl, using an electric mixer on medium speed, beat butter, peanut butter and sugars until light, about 3 minutes. Beat in eggs, then flour mixture. Cover and chill for at least 2 hours.
2. Preheat oven to 350ºF. Line 2 large baking sheets with parchment. Roll 1 heaping Tbsp. of dough into a ball. Place on a baking sheet. Use a fork to flatten in a crisscross pattern. Repeat with remaining dough until both sheets are filled. Make an indentation with your thumb in center of each cookie. Keep remaining dough chilled between batches.
3. Bake until cookies begin to brown on edges, 13 to 18 minutes. Press a peanut butter cup into each indentation. Let cool on sheets on wire racks for 5 minutes; remove to racks to cool completely. Repeat with remaining dough and peanut butter cups.

Five Things to Know Today

The Patch RV comes to Clearwater, the Big East baseball championship starts, find out what’s up with Public Works and more is going on in Clearwater Wednesday (May 23).

1. It’s getting hotter so make sure you know the revamped, once-a-week watering schedule. Expect a mostly sunny day with a high near 88, according to the National Weather Service. 

2. We said the Patch RV was coming to town. We will be giving away t-shirts and tote bags and collecting canned food for the Give-A-Ton food drive from 2 to 5 p.m. at the Clearwater Marine Aquarium, 249 Windward Passage. Don’t worry if you can’t make it, we will be giving away free appetizers during happy hour from 3 to 6 p.m. Friday at Cooters, 423 Poinsettia Ave.

3. The Big East baseball championship swings into Bright House Field this week. Catch games at the ballpark or live online at bigeast.tv. The games start today at 10 a.m. and feature (3) Seton Hall v. (6) Rutgers; (2) St. John’s v. (7) Notre Dame at 1 p.m.; (1) Louisville v. (8) Pittsburgh at 5 p.m.; and (4) USF v. (5) Connecticut at 8 p.m.

4. Former Clearwater Central Catholic standout Jeff Campbell was named the Great West Conference Newcomer of the Year and selected to the first team of the All-Great West Conference Baseball Team. Campbell, who pitches and plays first base, hit 11 home runs which tied for most in Division I by a freshman while playing for North Dakota this year.

5. Find out what is up with Public Works. Tour the Public Works Complex and check out demonstrations and displays of some of the heavy equipment, including front end loaders and street sweepers, city crews use to get jobs done as part of Public Works Day from 10 a.m. to 2 p.m. May 23. 

Foreclosed Americans find way back to homeownership

WASHINGTON – May 22, 2012 – Despite a lack of empirical data, interviews with more than 30 Realtors, lenders, builders and consumers suggest that a small but growing number of American borrowers are bouncing back to homeownership relatively quickly following a foreclosure, bankruptcy or short sale.

“Most are not ashamed or bashful about what happened because so many people were forced into that reality in the last six years,” says Graham Epperson, an executive with major homebuilder PulteGroup.

The bulk of consumers who have reentered the ownership market have done so because of FHA loans. Home financing backed by the agency may have a higher interest rate than conventional mortgages, but it does not demand proof of income, a high credit score or a sizable downpayment like other loans.

The rising number of FHA-insured loans, however, is giving some economists flashbacks of the subprime-lending era. “FHA is putting people back into situations that still have a high risk of default,” warns American Enterprise Institute resident fellow Edward Pinto.

Frank Donnelly, president of the Mortgage Bankers Association of Metropolitan Washington, D.C., however, insists that most of the loans going through FHA are for borrowers who have significantly repaired their credit. “They have to prove (to the lender that) it was something like a job loss that caused this and not chronic delinquency,” he says.

Lenders tend to be more forgiving if a consumer suffered a job loss than if he or she simply chose to walk away from the mortgage when they could afford the payments.

Source: Reuters (05/16/12) Mincer, Jilian

Fla.’s housing market continues positive signs in April 2012

ORLANDO, Fla. – May 22, 2012 – Florida’s housing market had increased pending sales and higher median prices in April, along with a greatly reduced inventory of homes and condos for sale, according to Florida Realtors® latest housing data.

“Here in Florida, we’re seeing some strong numbers that show positive momentum for the state’s housing recovery and our economy,” said 2012 Florida Realtors President Summer Greene, regional manager of Better Homes and Gardens Real Estate Florida 1st in Fort Lauderdale. “Home prices continue to rise in many markets. Inventory is down to extremely low levels while pending sales are on the rise – almost 38 percent for single-family homes and 25 percent for townhomes and condos. It is not unusual to see multiple offers.

“Now the challenge will be for appraisals to catch up. Overall, we are very happy to see the market move in this direction and expect this trend to continue.”

Pending sales refer to contracts that are signed but not yet completed or closed; closed sales typically occur 30 to 90 days after sales contracts are written.

The statewide median sales price for single-family existing homes in April was $144,350, up 10.2 percent from the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department, and vendor partner 10K Research and Marketing. The statewide median for townhome-condo properties was $108,000, up 16.1 percent over April 2011.

The national median sales price for existing single-family homes in March 2012 was $163,600, up 1.9 percent from the previous year, according to the National Association of Realtors® (NAR). In California, the statewide median sales price for single-family existing homes in March was $291,080; in Massachusetts, it was $267,500; in Maryland, it was $225,601; and in New York, it was $215,000.

The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts 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.

Statewide sales of existing single-family homes totaled 17,544 in April, down slightly, 0.7 percent, compared to the year-ago figure. Looking at Florida’s year-to-year comparison for sales of townhomes/condos, a total of 9,765 units sold statewide last month, down 4.9 percent from those sold in April 2011. NAR reported the national median existing condo price in March 2012 was $165,200.

In April, there was a 5.8-month supply of single-family homes in inventory and a 5.7-month supply for townhomes/condos, according to Florida Realtors.

“The housing numbers for the state of Florida continue to signal recovery,” said Florida Realtors Chief Economist Dr. John Tuccillo. “Sales in 2012 are above where they were in 2011, a harbinger of a third straight year of improvement. More importantly, pending sales are up dramatically, and inventory is still falling. Financing constraints still mean that a significant percentage of these will not lead to closed sales, but with the numbers up, we are confident that closed sales will continue to rise.

“The increase in both median and average prices suggests that investors are having a strong impact on the market, soaking up lower priced inventory and causing buyers to move up the price ladder.”

The interest rate for a 30-year fixed-rate mortgage averaged 3.91 percent in April 2012, down from the 4.84 percent average during the same month a year earlier, according to Freddie Mac.

To see the full statewide housing activity report, go to Florida Realtors website at www.floridarealtors.org, and click on the Research page; then look under Latest Housing Data, Statewide Residential Activity and get the April report. Or go to Florida Realtors Media Center at http://media.floridarealtors.org/ and download the April 2012 data report PDF under Market Data at: http://media.floridarealtors.org/market-data.

Chocolate-Covered Banana Cake

Ingredients

1 stick (1/4 pound) unsalted butter, softened
1 1/2 cups light brown sugar
3 eggs $
1 teaspoon baking powder
1 teaspoon baking soda
1/2 teaspoon salt
1 very ripe large banana, mashed (1 cup) $
1/2 cup milk $
2 cups all-purpose flour
1 1/3 cups heavy cream
1 1/4 cups sugar
2 tablespoons corn syrup
4 ounces unsweetened chocolate
1 stick (1/4 lb.) unsalted butter
1 teaspoon vanilla extract
1/4 teaspoon salt

Preparation

Preheat oven to 350°F. Grease two 9-inch round cake pans, line with wax paper; grease paper.
Make banana cake: Using an electric mixer, cream butter and sugar, beating until fluffy, about 5 minutes. Add eggs, one at a time, beating after each addition until well blended. Mix in baking powder, baking soda and salt. Add banana and beat at medium speed until barely incorporated. Mix in milk. Add flour and mix at low speed until smooth. Spoon batter into prepared pans.
Bake cake layers until springy to touch, 35 to 40 minutes. Let cakes cool in pans on a rack for 10 minutes, and then turn out and let cool completely.
Meanwhile, make fudgy frosting: In a medium saucepan, bring cream, sugar and corn syrup to a boil. Reduce heat and simmer, stirring occasionally, for 5 minutes. Remove mixture from heat and add chocolate and butter; stir until completely smooth. Stir in vanilla extract and salt and then pour mixture into a medium bowl set in a larger bowl of ice water. Beat fudge with a handheld electric mixer until it’s shiny and thick.
Transfer 1 cake layer to a serving platter. Frost with 3/4 cup fudgy frosting, then top with second layer and spread remaining frosting over top and sides of cake, swirling frosting in a decorative pattern with a knife, if desired.