Foreclosure Search

The number of homes sold in Dade County in December 2008 was 1168 compared to 783 homes sold in December 2007. That is a 49.2% increase. Many people are very surprised to hear that the numbers in sales have gone up. Most people think that the numbers have gone down because of all the bad news they hear from the media. There are many reasons for the increase in sales. The two biggest ones probably are the extremely low prices and interest rates. It is not uncommon to see homes selling for half of what they sold for two or three years ago. Because of that, investors are back in the market. Most of these homes being purchased are foreclosures, which are also called bank owned properties or REO's (real estate owned). As far as interest rates are concerned, there are many people that are locking in their fixed interest rates at five percent or less.

If you are interested in searching the many foreclosures available in today's market, you can visit www.DadeCountyMLS.com.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Happy New Year!!!!!!!!

May health, happiness, and good times greet you each day of the new year.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Updated S&P Case-Shiller Index (Home Price Index)

The S&P Case-Shiller Index was released today and home prices around the nation have gone down an average of 18% compared to last year. Although prices have gone down significantly, so have mortgage rates. It is not uncommon now to get a loan for five percent or less for a thirty year fixed rate loan. The low interest rates combined with the low home prices has been the main reason for sales to increase in many parts of the nation compared to a year ago. To increase the size of the index below, please click on the image below.



Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Seasons Greetings!

Seasons greetings to all of you! I wish all of you the very best. Have a safe and happy New Year, and good luck to all of you and your loved ones for the coming year.

Amit Bhuta

Real Estate Helper
Kendall Village Homes

(305) 439-3031
www.DadeCountyMLS.com

South Florida Home Prices (Miami Herald)

In today's edition of the Miami Herald, Matthew Haggman wrote a very informative article on South Florida Home prices. The article is below.

The median prices for South Florida single-family homes dropped in November to 2003 levels as residential real estate values continue to plummet, according to figures from the Florida Association of Realtors.

But sales again rose sharply as banks unloaded foreclosed homes and individual sellers slashed prices. The increased buying activity reduced the number of homes listed for sale, although the inventory of unsold homes still remains large by any measure.

Sales for existing single-family homes in Miami-Dade were up 39 percent in November compared to the same month a year ago. Broward single-family home sales were up 26 percent. Condominium sales for existing units in November were also up, though not as much. Condo sales were up 4 percent in Miami-Dade and 3 percent in Broward compared to November 2007.

Despite the increased sales activity, there were no signs prices are stabilizing.

Miami-Dade single-family home prices in November dropped by nearly half -- 48 percent --from a year ago. Broward single-family home prices were down 34 percent. For condos, prices were similarly down: Miami-Dade was off 35 percent and Broward, 34 percent.

That puts median prices for a single-family house at $224,700 in Miami-Dade and $229,100 in Broward. The median Miami-Dade condo price is now $172,600 and the median Broward condo fetched $109,400 in November.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
www.DadeCountyMLS.com

Quick Real Estate Sales Stat

Existing single-family home sales were up 23 percent in Miami-Dade and 46 percent in Broward in October. Condo sales increased 30 percent in Broward and eked out a 1 percent gain in Miami-Dade. The median price for single-family homes in South Florida was $246,800 in Miami-Dade and $252,500 in Broward. For condos, the October median price was $197,400 in Miami-Dade and $115,200 in Broward. In Palm Beach County, October sales increased 37 percent from a year ago. The median price of single-family homes was $264,600. Palm Beach County condo sales rose 23 percent, and the median price was $135,800.


Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

FDIC Unveils Aggressive Mortgage Plan

Today the FDIC unveiled a plan that would help past due borrowers. It is still only a proposal and needs to get the Treasury Department's approval. Otherwise it would need to get approved by Congress or wait for review by President-elect Barack Obama's administration. The plan is very interesting and has the potential to help nearly 2.2 million borrowers. The plan would cost an estimated $24.4 billion, which could come from the $700 billion bailout Congress approved last month. To view more information on this mortgage proposal, please click on the link below to view the article from CNN.

Mortgage Proposal Article

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Should I Buy or Should I Wait?

The question almost every potential home buyer is thinking now is - should I buy now or should I wait? I get asked this many times each week. Based on the research I have done, I definitely know that now is the best time to buy. Coming from a Realtor, it doesn't mean a whole lot, especially if I get paid to sell homes. So instead of you just taking my word for it, I figured I would give you some information that should help you make a much more informed decision.

As you may already know interest rates have been very volatile and since the beginning of the year they’ve increased. The good news is historically speaking they’re still very low...a conforming 30 year fix rate loan is currently ranging between 6.0% - 6.5% with zero points.

Although rates have remained historically low most experts agree they will move higher sooner than we think! One reason for this expectation is that the Federal Government controls inflation by increasing interest rates…and inflation will most likely become a serious concern very soon.

Take a closer look at the potential risks of waiting for home prices to continue to drop versus the potential benefit. Let’s assume we waited another full year and let’s say home prices did indeed drop another 10%. During this same time frame let’s assume interest rates increased by about 1%. (Note: interest rates were at 5.5% in Feb 2008 and now they’re consistently above 6%. Therefore, assuming a 1% increase one year from today is very realistic and might even be considered to be a conservative estimate.)

Here’s the effect this scenario would have in terms of our monthly mortgage payment:

Today…

Sales Price $250k
Down Pmt. $50k (20%)
Loan Amt. $200k
Rate 6.25%
Payment $1231

One Year Later…

Sales Price $225k (10% less)
Down Pmt. $45k (20%)
Loan Amt. $180k
Rate 7.25% (1% higher)
Payment $1228 (potential benefit of waiting…save a whopping $3 per month)

The potential risks (reality) we face by playing the “waiting game” or trying to time the “bottom” of the market:

- Lenders continue to tighten their guidelines making credit less available

- “Life” happens and our current ability to qualify today may be affected tomorrow

- More buyers/competition will enter market and create bidding wars which results in price increases

-Purchase after 12-31-08 and we’ll have to wait until 2010 to benefit from Homestead Exemption

- Federal Income Tax Credit of $7,500 available today expires June 30, 2009

- The same dream home available today based on our needs will almost definitely be gone by next year

The fact is very few of us (if any) are able to time the bottom of any market correctly. By the time we see the “bottom” we’re looking at it through our rear view mirror which means the opportunities have past us by.

Unless you’re trying to save $3 dollars per month, the risks clearly out weigh the benefit.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Halloween Safety Tips for Children

If you have been a reader of my blog, you probably know that it is usually about real estate. You also probably know that it is about other topics as well. One of the things that is really important to me is helping parents find their missing kids. Halloween is a holiday that many people love to celebrate, but unfortuantely can also be very dangerous if we are not careful. Below are some Halloween safety tips for children from the Missing Kids website.

1. Be sure older children TAKE FRIENDS and younger children are accompanied by a TRUSTED ADULT when "Trick or Treating."
   
2. Accompany younger children to the door of every home they approach and make sure parents and guardians are familiar with every home and all people from which the children receive treats.
   
3. Teach children to NEVER enter a home without prior permission from their parents or guardians.
   
4. Teach children to NEVER approach a vehicle, occupied or not, unless they are accompanied by a parent or guardian.
   
5. Make sure all children wear reflective clothing and carry a glow stick when out at dusk and at night.
   
6. Make sure children are able to see and breathe properly and easily when using facial masks. All costumes and masks should be clearly marked as flame resistant.
   
7. Teach children to NEVER approach a home that is not well lit both inside and outside.
   
8. Teach children to stay alert for any suspicious incidents and report them to their parents, guardians, and/or the proper authority.
   
9. Teach children if anyone tries to grab them to make a scene; loudly yell this person is not my father/mother/guardian; and make every effort to get away by kicking, screaming, and resisting.
   
10. Consider organizing or attending parties at home, in schools, or in community centers as a good alternative to “Trick or Treating.”

HAVE A SAFE AND FUN HALLOWEEN!

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

September 2008 South Florida Real Estate Stats

Here are some quick stats on the South Florida (Miami-Dade County) real estate market from September 2008. Contrary to what we hear in the media, sales are actually not that bad. Between single family homes and condos, there were 1,009 closed sales that took place in September. There were also 1,666 homes and condos that were placed under a sales contract and are just waiting to close. The months of inventory of homes for sale is 42.1 months. This number is still pretty high but a lot less than some recent months when there were over 70 months of inventory. For those homes that sell now days, the average amount of days they are on the market before a closed sale takes place is 120 days. The price that the home sales for is 90% of the last price it was on the market for.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Quick Mortgage Fraud Stat

Florida leads the nation in mortgage fraud, accounting for about a quarter of the nation's fraudulent loans, according to industry trade groups. Many people think that South Florida is number one in the nation for mortgage fraud. Although it would seem to make sense to assume this because South Florida had some of the greatest price appreciation during the housing boom and had very lax lending standards, Fort Myers is number one in the nation in mortgage fraud per capita. Because there are so many ways that innocent buyers or sellers get trapped into mortgage fraud without knowing it, it only makes sense to use an experienced Realtor, who is familiar with mortgage fraud, when entering into a real estate transaction.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Latest Real Estate Scheme

Today a large percentage of homes on the market for sale are foreclosed properties owned by banks, also known as REO's. Because they have been foreclosed, all of these homes are vacant and have lock boxes on the front door with the keys inside them. It is very easy for Realtors, appraisers, etc to get the combination to access the keys. To make it more convenient for accessibility, most banks use the same codes for all of their properties. If a person in the real estate industry knows a property is for sale by a particular bank, the odds are that they can get into the home without giving any of their information to any one. Due to this, a new real estate scheme has surfaced.

The real estate scheme works the following way. The crook gets a list of homes owned by a particular bank thru the MLS (multiple listing service) without giving any personal information. Since he knows that bank's lock box codes, he drives by these homes and previews them by himself. He will try to find a home that is in fairly good condition and also in a remote area without too many neighbors. The crook will also make sure that this home will be one that probably won't have that many showings. The next step is for the for sale sign to be removed. A rental ad for that home will be listed in the newspaper or somewhere else with a contact number for the crook. This number will be a number that will later be disconnected when the scam is over. The rental price will be a very good value for a potential tenant. When the tenant meets up with the crook, the crook tells the person that he can discount the price even more if the person pays his upfront money (first month, last month, and security deposit) with cash instead of a check. The tenant pays the upfront money in cash, signs what turns out later to be a meaningless lease, and moves in. The crook takes the cash and vanishes into thin air, never to be heard from again. Eventually the bank finds out that their home is not selling and that someone is living in it.

The bank can't just tell the person to leave the home. Because the tenant is a victim of a crime and has established that home as his residence, the tenant is entitled to an eviction process, which could take the bank many many months to resolve.

The reason I am writing all the steps to this real estate scheme isn't too teach someone how to be a crook but rather how important it is to use an experienced, trust-worthy Realtor to do a background check on a rental property. A good Realtor will check and make sure that the property is actually owned by the landlord, check to make sure that the landlord isn't past due on the mortgage or in foreclosure trouble, and check on many other things.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Updated Real Estate Stats

I'm sure all of you keep hearing about our failing economy and horrible housing market in the media every day. Many people have the perception that it is a terrible time to buy real estate and that no one is buying anything. Based on recent statistics from August 2008 (below), it seems like the opposite is true.

BROWARD

Sales of Single Family Homes are up 12% ..... but median sale prices down 27%!

Sales of Condos are remaining the same ..... median sale prices down 25%!


MIAMI

Sales of Single Family Homes are up 22% ..... but median sale prices down 30%!

Sales of Condos are up 13% ..... median sale prices down 20%!

Median Sale Prices are down probably due to short sales, foreclosures, and bank owned properties (REO's).


Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Feds Take Over Fannie Mae and Freddie Mac

The government took over Fannie Mae and Freddie Mac yesterday. The stock market reacted very favorably to this news with the DOW Jones going up over two hundred points. So how does the news of the Feds taking over these two mortgage giants affect you? Please click on the link below to read an article on the topic from BankRate.com.

How the Fannie and Freddie Takeover Affects You

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

IndyMac Borrowers Get Some Help

Yesterday the FDIC (the Federal Deposit Insurance Corporation) said it would offer new mortgages to thousands of troubled homeowners whose loans came from or were serviced by IndyMac Bank, which failed in July.

To read the full story from the Sun-Sentinel, please click on the link below.

IndyMac Borrowers Get a Do Over

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com