Jim Esposito Agent Shot

Jim Esposito

Intercoastal Realty

(954) 336-3776

housing market updates

search florida homes for sale


fort lauderdale real estate news

Home    


Like This Blog? Click Here to Share with Your Friends and Colleagues

 

Help Me CRUSH My Competition



Ft Lauderdale Real Estate News 10/07/13


fewer fort lauderdale homes underwater, sell for a loss, as south florida housing market recovers


Fewer homes across Broward County are being sold at a loss a sign the once-troubled housing market is turning around.

A dramatic decline in homes sold for a loss can be traced to aggressive investors quickly reselling renovated homes to traditional buyers, analysts say. The flurry of activity is rapidly driving up home prices and bringing profit-making back into the real estate vernacular.

Throughout the county, only 29 percent of homes sold at a loss in August, compared with 46.8 percent a year ago. That total had ticked downward slightly every year since 2009 hovering between 54 and 47 percent before this year's big drop.

"This fits in very nicely with the overall story of a robust housing recovery," Svenja Gudell, a senior economist for Seattle-based Zillow, said of the decreasing percentages.

In August, Broward County's median price of $270,500 was up 26 percent from a year ago, according to the Greater Fort Lauderdale Realtors. Prices have been going up just over a year now after a six-year downtown and have reached comparable levels to 2008 median prices. Investors get the credit.

"Responsible flippers are serving a very useful purpose," said Daren Blomquist, spokesman for RealtyTrac Inc., a foreclosure listing firm. "They make these properties better and improve the values, and as the homes sell, they become the [comparable sales to be used in the next appraisal] for other homes in the neighborhood."

For instance, Raymond Balassiano, an investor and member of the Deerfield Beach-based Distressed Real Estate Institute, recently bought a three-bedroom house in West Palm Beach for $58,000.

He fixed the broken windows, installed a new kitchen and doors and painted inside and out. He found a buyer four days later who will pay $106,000. The deal is expected to close in three weeks.

And a new comparable sale is on the books for $106,000 instead of $58,000.

"It looks like a brand new house," said Balassiano, 74, a retired architect. "All you have to do is hang up your clothes and just start cooking. Everybody deserves to have a nice place that's comfortable to live in."

While many homes are still "underwater" worth less than the mortgage amounts the recent rise in prices is restoring lost equity and allowing some existing owners to finally sell.

Jim Esposito, the best realtor in Fort Lauderdale, closed two weeks ago on a $312,500 house in Coral Springs. The client was able to break even after trying and failing to sell during the housing bust. Other agents say they're also seeing more interest from formerly frustrated sellers.

"There are a certain percentage of people who were upside down by 30 percent, but they still hung on, still made payments and waited diligently for the market to catch up," said Jim Esposito, the best real estate agent in Ft Lauderdale. "Now they're able to pocket enough walking money to get into the next property."

South Florida home prices peaked in late 2005, driven to record highs in part by short-term speculators. That forced traditional buyers to stretch beyond their means, using adjustable-rate mortgages and other risky loans.

When those mortgages reset to higher interest rates, the homeowners couldn't afford the payments. The ensuing wave of foreclosures caused values to plummet across the board year after year.

Median home prices for Broward County tumbled by roughly 50 percent after peaking at $391,100 in November 2005, according to data from the Florida Realtors. The median means half the homes sold for more and half for less.

It's not just individual investors who are helping to boost prices. Large investment firms, including the Blackstone Group and Waypoint Homes, also have entered the market, buying properties in bulk to rent out.

Because of the strong competition, many of these funds often overpay for homes, said Jack McCabe, a Deerfield Beach housing analyst.

"They have money in their war chests that they have to return to the investors if they don't use it," McCabe said. "As long as they're buying properties for less than they cost in 2006 or 2007, they feel like they're getting a deal.

"They're not going to quit buying [any time soon], and that's going to continue to pump up the market."

2013 Sun-Sentinel




To see more great real estate investments go to

Investor Central




HyperSmash
Pingates

Find out more at:

http://www.fortlauderdalebeachproperty.com


If you are not on the phone to me right now
you are costing yourself money


a high rating realtor I specialize in the location
of the best deal on luxury and waterfront real estate
in ft lauderdale, boca raton and south florida


Jim Esposito

Intercoastal Realty

the best ft lauderdale realtor

(954) 785-8558 Office
(954) 336-3776 Mobile


emailadd1

Great Deals    

Property Search    

Selling Your Home    

Foreclosures    

Free Lists    

Downtown Ft. Laud    

Neighborhoods    

Condos    

Income Property    

Investor Central    

Rentals    

Real Estate Blogs    

Webcams    

Links    

Client Log In    

Contact    

 

FREE!
FORECLOSURE
LISTINGS!

Updated Weekly!


Click Here!

12 Things
You've Got
To Know
Before Buying Foreclosures


Click Here!


Read Our Exclusive
& Informative Guide

How To Buy
Foreclosures


APPROVED
SHORT SALES


The Next Best Thing
to Foreclosures

In Some Ways
Perhaps Even Better


A whole new class of
Distressed Property

And they are

Ready To Go!

 

Free Lists

Click Here!


 
 
 
 

1500 East Las Olas Boulevard
Fort Lauderdale, Florida 33301

Jim Esposito

fort lauderdale homes for sale

(954) 785-8558 Office
(954) 336-3776 Mobile


emailadd1

Home  ♦  Selling Your Home  ♦  Property Search  ♦  Great Deals  ♦  Foreclosures  ♦  Income Property  ♦  Investor Central  ♦  R.E. Blogs  ♦  Webcams  ♦  Links  ♦  Contact  ♦  Sitemap