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Global Luxury Realty LLC
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globalluxuryrealty.com

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Home sales rose in South Florida during the second quarter, but new economic volatility in the U.S. and rising foreclosures could slow down the market moving forward.

 
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tolorunnipa@MiamiHerald.com

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Home sales rose and prices were mixed in South Florida during the second quarter, but the outlook for the rest of the year is uncertain, as the economy wobbles and the foreclosure landscape begins to shift.

There were 2,628 sales of existing single-family homes in Miami-Dade County during the second quarter, up 31 percent from the same period last year. The condo market saw sales jump 62 percent, from 2,550 to 4,140, according to data released Wednesday by the Miami Association of Realtors.

“Sales have definitely increased, but that is directly caused by the continued decline in prices,” said Jack McCabe CEO of McCabe Research and Consulting in Deerfield Beach.

In Miami-Dade, single-family prices slipped 9 percent to $178,800, and condo prices fell 6 percent to $119,800.

Broward was one of only two Florida counties that saw single-family prices increase in the second quarter. The median price for a Broward single-family home rose 1 percent to $188,500 and the price of a condo rose 7 percent to $76,000.

The outlook for the rest of the year is uncertain after the U.S. debt downgrade that could affect mortgage rates and investor confidence. Foreclosures are also on the rise again, although they remain far below year-ago levels, a new report from real estate research firm RealtyTrac shows.

South Florida foreclosure filings increased about 9 percent between June and July, and sales of repossessed homes jumped 56.1 percent month-to-month, RealtyTrac found.

But even with the recent increases, foreclosures are down 60 percent from last year, as banks struggle to work through processing delays in court.

“Unfortunately, the falloff in foreclosures is not based on a robust recovery in the housing market but on short-term interventions and delays that will extend the current housing market woes into 2012 and beyond,” said James J. Saccacio, CEO of RealtyTrac, in a statement.

Although foreclosures are rising again on a month-to-month basis, the demand for these types of properties could decline if international investors shy away from these discounted opportunities because of the recent economic volatility in the U.S. market.

“This could signal that there will be a slowdown in the unusually fast pace that we see in sales here over the last year,” said McCabe,. “I think [investors] are going to be a little more hesitant to say ‘Do we want to put this cash in Miami condos? We’ve seen that they can go down before



Read more: http://www.miamiherald.com/2011/08/10/2353742/sales-stay-hot-but-uncertainty.html#ixzz1UxTyNblr
Monika Depalo
GAFF'S REFERRAL'S INC. - Port Orange, FL
REAL ESTATE Agent/Stager

I doubt my broker will ever do this until it is a last resort I appreciate your pioneer spirit and really offering the max.

Aug 13, 2011 01:48 PM
Bill Gardner
Global Luxury Realty LLC - Miami Beach, FL

you are welcome here anytime.

 

for more info visit www.globalluxuryagent.com

Aug 13, 2011 02:25 PM