South Florida's Wave Of Cash Home Sales Is Shutting Out Entry-Level Buyers

In South Florida, 69 percent of all home sales last month were cash deals -- and that's way above the national average. Across the state, 66 percent of home sales were cash, compared with the national rate of 40 percent. One expert called Florida's rate "astounding."

With one of the nation's highest foreclosure rates, South Florida has a large supply of bank-owned properties. Lenders aren't interested in waiting for traditional buyers to qualify for mortgages, preferring instead to sell to investors paying cash. And that has virtually shut out entry-level homebuyers. "That's where all the action is," said Lex Levinrad, founder of the Distressed Real Estate Institute, a Deerfield Beach-based club for investors. "The banks have an urgent need to get these bad loans off their books as soon as possible. They're willing to sell for 30 percent less to a cash buyer rather than waiting for a buyer with a mortgage."

Much of the cash buying in South Florida is from foreigners who view condominiums as safe investments. In the past year, large funds have entered the region, buying single-family homes and renting them out for a year or longer. The Blackstone Group of New York and California-based Waypoint Homes are two of the larger funds buying in Broward and Palm Beach counties.

Some industry analysts once feared that a so-called shadow inventory of homes would hurt the housing market. But David Dweck, founder of the Boca Real Estate Investment Club, said there are enough cash buyers here to support any excess supply of properties. "Without a doubt," he said. "Without a doubt." Cash sales made up 57 percent of Florida's home sales a year ago and 66 percent of all sales in June of this year, compared with the 66 percent reported in July, according to the report released today by the real estate research company RealtyTrac Inc. "That's astounding," RealtyTrac Vice President Daren Blomquist said. Nationwide, only Nevada (64 percent) and Maine (60 percent) came even close to Florida's tidal wave of cash-only deals.

Among Florida's metropolitan areas, the South Florida metro area -- covering Palm Beach, Broward and Miami-Dade counties -- was second only to Brevard for cash deals. One factor tipping the scales in cash buyers' favor has been the tightening of mortgage requirements following the easy-lending era that preceded the 2007-09 recession.

Another key shift noted in RealtyTrac's July report was a strong rebound in the number of short sales -- closings with sales prices below the balances still owed on the properties' mortgages. During the housing-market meltdown and the Great Recession, distress sales had dominated the South Florida housing market before receding in the past year or so as prices rallied. In July, though, short sales accounted for 30 percent of all home sales in the state and 32 percent in the South Florida metro area -- double to triple the rate of short sales reported a year ago. 

Meanwhile, regular foreclosures have held steady at about 10 percent of all sales throughout Florida during the past year. In July, compared with a year earlier, distress-sale prices in South Florida were up 12 percent to $106,450. Conventional-sale prices rose 19 percent in South Florida from a year earlier. *Notes taken from HuffPost Miami.

To Buy, Sell or Rent Properties in Miami go to http://www.JuanSolerRealtor.com  

 

In South Florida, 69 Percent of June Home Sales Were All-Cash

I used to think some of my clients already had a mortgage broker since they would ask me if I knew a trust worthy broker. However, little by little I came to realization that they did not ask for a mortgage broker simply due to the fact that they did not need one.  Cash was their preferred method. 

Florida led the nation last month with what RealtyTrac spokesman Daren Blomquist called an “astounding” rate of all-cash home sales: 66 percent.

Institutional investors, foreign buyers, landlords and vacation-home shoppers are fueling a cash-only market where first-time homebuyers’ mortgages can’t compete.

Cash sales made up 57 percent of Florida’s home sales a year ago and 61 percent of all sales in June of this year, compared with the 66 percent reported in July, according to the report released today by Irvine, Calif.-based real estate research company RealtyTrac Inc.

“That’s astounding,” Daren Blomquist told the Orlando Sentinel.

In South Florida, 69 percent of all home sales were transacted entirely with cash, the report said. [Orlando Sentinel]. * Notes taken from The Real Deal.

To Buy, Sell or Rent Properties in Miami go to http://www.JKSolerMiamiRealEstate.com  

 

Miami Porsche Tower * P2

Miami has ranked 6th on The wealth report 2012 by Knight Frank, ahead of Geneva, Shangai, Beijing and Berlin just to name a few. Focusing on the High New Worth Individuals on each city category. And that gave Developer Dezer another reason to build this elegant iconic building in Miami. Today we continue with the Amenities and Residence Features of the Porsche Tower.

Amenities

·   Private sky garage for each unit.

·   Private swimming pool and summer kitchen on oversize terraces creating a luxurious outdoor living environment (except on P’0393 model).

·   Miele appliances, including wine cooler, state of the art induction cooktop, speed-microwave oven and warming drawers.

·   Automatic Toto toilets in master bathrooms with integrated bidet functions.

·   Poggenpohl designed kitchens with motorized doors and expansive islands.

·   Private elevator that opens directly into the residence.

·   Panoramic ocean, Intracoastal and/or city views.

·   Elegant smooth ceilings rising to 10’ clear and 20’ clear on the duplex units.

·   Floor-to-ceiling windows optimizing views.

·   Premium quality granite or marble countertops in kitchens and bathrooms.

·   Dornbracht design kitchen and master bathroom fixtures.

·   Vent-less gas fireplace in living room.

·   Private interior elevator on the two-story units.

Residence Features

·   Private elevators elevators will open directly into the residences without having to go through a foyer.

·   Two level units available with close to 24 feet height ceilings

·   Poggenpohl Kitchen

·   Fireplace in all units

·   15 feet deep (5 meter), terraces, the deepest in Miami

·   Every apartment facing the ocean will have a pool approximately 10’ X 15’ in the terrace.

·   Outdoor gourmet kitchens

·   Two parking garage besides apartment for models B, C & D

·   Four parking garages besides apartment for model A

·   3,4,6 bedrooms residences plus maid quarters

·   Flexible rooms (some floor-plans)

·   From 4,800 square feet to over 10,000 sq. ft residences

Payment Structure

20% at contract

10% at beginning of construction – July/Aug 2013

70% at closing – 2016

For Reservation please contact me at 954.254.6085 or  email me at  JuanSolerRealtor@gmail.com 
Time is always of the essence but much more in Pre-construction. Don't miss this window of Opportunity!

To Buy, Sell or Rent Properties in Miami go to http://www.JKSolerMiamiRealEstate.com