Case Shiller Index for South Floirda

The Case Shiller value index for February was released this morning.  In yet another proof of the term "real estate is LOCAL"; South Florida bucks the national trend with increases month over month and year over year.  Many news outlets announced the national findings of 3% decline for the year ending 29 February.   This compares with a .76% increase in South Florida for the same period.  Let's hope the positive months on the graphic on the left continue to stay in positive territory.

South Florida Beats the Trend in Value

The January Case Shiller Value Index released today was generally dismal with the exception of South Florida, Phoenix and Washington, DC.  January's results established new lows for the composite indicies of the analysis making our figures seem even stronger.

Values in South Florida increased .65% (just over one-half of one percent) from December 2011 and the current index is just over 3% above January of last year.

In case you're wondering, the designation of 'worst performing market' has been Atlanta for the last few months.

Home Value Index Higher-Bucks National Trend

South Florida is among just two metro-areas with an increase between November and December (the other is Phoenix) in the Case Shiller Home Value Index for December published this morning.  We no longer have the dubious distinction of leading the pack in national home value decline but rather are holding our own or showing slightly more positive results.

For November-December South Florida's value index increased 0.17% (okay...that's not much but it's in the right direction) while the national index fell 1.1%.  For 2011 South Florida held its decline to 3.78% (about equal to 2010); the national decline was 3.9%.

Home Value Still Down

The home value index for November was published by Case Shiller yesterday.  The month-over-month decline was just over one-half-of-one-percent with the decline from the year before at 4.4%

Single Family Home Values Down a Little

The Case Shiller Value Analysis for October was published today with South Florida single family values dropping about .25%.  Values dropped in all but one of the markets (Washington, DC) surveyed by the analysis.  It looks like values in this analysis will fall about 5% this year in our market.

Thinking of Becoming a Landlord?

Owners who are upside-down and investors eyeing lower real estate prices will often consider renting property as an immediate strategy.  Here's a great article anyone considering becoming a landlord should read.

http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=268339

Home Values Dip

South Florida followed suit with what you're hearing about home values in the rest of the country. Prices on single family homes in our market dropped 1.56% in September according to the latest report of the Case Shiller Index.  Softening of reported value for "high-tier" properties (more-expensive) drove the overall decline.

More Short Sales than Foreclosure Sales in September

I'm currently working with three short sale transactions (and about to add a fourth).  Clearly they are challenging for all parties involved but are a major factor in this market and with hard work and patience, can end in a successful sale.  I've been tracking the short sale & foreclosure market since January 2009.  Much has been made of the constriction of foreclosures in light of  'robo-sign' practices of processors and the number of transactions has been in flux, but I was surprised to find that the number of short sales actually exceeded foreclosure sales in September for the first time.

Single Family Home Value Down a Tad

Case Shiller value index for August was released this morning.  Value in South Florida dropped slightly led by decline in the higher-tier (more "expensive") homes.

Save $40,000!!

For some perspective on today's mortgage rate news; a home buyer borrowing $180,000 at today's rate would save $40,000 in interest over the life of the loan, compared with the same loan at 5% (the rate just six months ago).  Monthly payments would be about $100 cheaper too.

There would be no iphone without Broward County

While the "whole world" was waiting breathlessly for the announcement of the latest iphone; an engineering firm in SUNRISE, FL was churning out components for the new device.  http://www.bizjournals.com/southflorida/news/2011/09/13/slideshow-when-iphone-5s-coming.html?s=print

"Lower Value" Homes Still Dropping
As we observe an overall increase in value of single family homes in South Florida, it is interesting to note, in an analysis of the tiered pricing study provided by the Index, that lower-priced homes are not contributing to the increase.  The index defines a 'low priced' home in our market as under $144,203.  As the attached chart shows, homes in that tier continue to decline while the middle and upper tiers rebound.

Clearly sellers of homes in that range should not 'test the market' but price their properties to secure a buyer as quickly as possible.

South Florida Home Values Up Too

Case Shiller Index results for July were released this morning.  South Florida follows the national trend with single family home values increasing  1.21% in that month.  July's number brings us to just about the break-even point for the year (i.e. no change in value for the year) which is an accomplishment after the disappointing numbers, we experienced earlier this year, suggested a drop in value in 2011.

Home Values Up Again

Single family home values rose again in June for the second month this year according to the Case Shiller Value Analysis.  Values in South Florida increased .62% in June after a 1.18% percent rise in May.  Based on the index, values decreased 2.54% in the first half of the year. 

Our Attorney General is on the Wrong Side of this Matter
http://www.palmbeachpost.com/opinion/editorials/bondi-picks-the-wrong-side-1688749.html

May was a Good Month for Home Value

The Case Shiller Value Analysis released this morning reported that May was a good month for home value.  Twenty of the US metropolitan areas included in the study registered increases with South Florida in the pack at UP 1.18%.

High-Priced Homes Drove Value Increase in May
The Case Shiller Value Analysis presents single family home values in tiers based on a price break calculation they identify as Low, Medium and High.  I've charted the last couple of years on the attached chart for South Florida (Miami & Ft Lauderdale).  This shows that the 1.18% aggregate increase in values was driven by strong value increases in higher priced homes (those over $249,104) while lower priced homes actually declined just a bit.

Pompano Beach Condo Sale Confirms Values are Increasing

I am pleased to announce the sale of our listing, unit 1206 in the Waterbury Condo for $213,000.  This remodeled 2 bedroom/2 bath unit at 1180 square feet ($180.50/square foot) is the highest sale in the building in two years.  The condo was impeccably maintained and the kitchen had been remodeled in the last three years. The limited number of homes available to the buyers drove this sale.

If you’re a seller waiting for a more favorable time to list and sell your property, NOW IS THE TIME.  The buyer pool is still smaller than we would like to see it and it is the limited number of choices that resulted in the sale I’m reporting here.  As the market stabilizes sellers who have been holding off will jump into the market and the inventory will increase.  List now while your property is the only game in town.  Call me today to initiate a plan to get your property sold.

The Bottom of the Real Estate Market

In a great article on the South Florida economy in this morning’s Miami Herald, Octavio Hernandez, President of US Century Bank was quoted: “In the last two months, we have seen a lot of activity” from distressed-asset buyers, “I think people have realized prices have pretty much dropped as far as they’re going to”.   This suggests that ‘vulture investors’ have concluded that now is the time to enter the market before values begin their slow climb.  Obviously this is a great indication for buyers to get serious about investing in real estate but sellers too should take this opportunity to list now to take advantage of the reduced inventory and buyer urgency to make their move.   

South Florida Housing Value History

Each April I capture an annualized value measurement based on the Case Shiller Value Index for Miami/Fort Lauderdale.  As you can see, 2010-2011 is not measuring up as well as the previous year.  The bumpy bottom of the market is taking a bit of a downward turn this year; further evidence to the complete unpredictability of the market.  Another thing this chart presents is the unprecedented nature of the recent market boom/bust (just in case we needed to see it depicted another way).