Opposing view regarding Miami Herald report on poor real estate market

There is usually two sides to the story. This article presents a different picture than the one in the 7/26/07 Miami Herald's Business section

Hank Fishkind: Other economists wrong – housing on slow upswingORLANDO, Fla. – July 26, 2007 – Economist Hank Fishkind calls other economists’ dire warnings and negative news about the housing market overblown, and says that, outside of Miami’s condominium market, the state’s housing markets hit bottom months ago and are now on a slow return to normalcy.Fishkind, speaking Tuesday on his radio talk show, pointed to recent stories released by respected economists. Last Friday, for example, Bloomberg news published a story with an ominous headline – “Miami condo glut pushes Florida’s economy to brink of recession.” It quoted Moody’s/Economy.com’s Mark Zandi who predicted Miami condo price drops as much as 30 percent and a state recession perhaps by October.“There is no doubt that the Miami condominium market is severely overbuilt, and that there will be sharp price drops and massive defaults,” says Fishkind. “But, this is no surprise to anyone who has followed this market.” But, he adds, “It is also important to note that Florida’s housing markets, outside of Miami’s condo market, have hit bottom months ago. The closing volume for new and for existing homes has stabilized.”Fishkind doesn’t predict a huge upswing in closings, but “they are no longer declining. Therefore, we have already seen the worst for this cycle. There is no evidence of sharp price drops anywhere in the state, and there is no reason to expect any such drops outside of Miami condos. Population growth is holding up well as the state continues to attract large volumes of retirees and working families looking for jobs.”Fishkind says that rising gas prices could impact consumer spending more than expected, but he calls that a nationwide problem, one that “Florida will ride out … better than most other places.”Source: WMFE Radio News, 90.7 FM/Fishkind & Associates Inc.© 2007 FLORIDA ASSOCIATION OF REALTORS

Upper Keys 6 month real estate review

If your a buyer this looks like a great time to purchase property in the Keys.



There is a great inventory of all kinds of properties and prices are down from last year. Sellers appear to be more willing to negotiate the final price to make a deal happen.



If your a seller the good news is that for the first six months of 2007 as compared to the first six months of 2006 the number of properties under contract are virtually the same and the average sale price is actual up $7,000.



Last but not least Century 21 Prestige Realty, who I'm an agent for, is still number ONE with 20.89% of all the listings and 17.53% of all the sales.

Pricing ideas for sellers

Try practical incentives to catch a homebuyer's attentionNEW YORK – July 17, 2007 – Real estate professionals note that practical incentives that focus on the home price and monthly mortgage payment are more likely to entice buyers than material perks such as fancy televisions.They recommend that sellers lower their asking prices, offer down payment or closing-cost assistance, or purchase home warranties to attract buyers. Sellers also might want to consider paying mortgage points – each equivalent to 1 percent of the mortgage amount – to make the transaction more affordable during the initial years of ownership.They can advertise incentives right away to generate more interest in their listing, or they can offer incentives only if the property does not sell or as a means of sweetening the deal during negotiations.Source: MarketWatch (07/15/07) Hoak, Amy

Homeownership cost reductions

The cost of home ownership in the Keys has improved during the last year due to an organization called "Firm" and the state legislature.

"Firm" was a grass roots organization which was formed to stop the escalating cost of Windstorm Insurance. The bottom line is it took on the state run insurer of last resort for Windstorm coverage and the result was large reductions in premiums via rate roll backs. "Firm" is still actively working to prevent future out of control rate increases.

The state legislature recently took on property taxes. The results are mixed but there will be a rate reduction for Homesteaded property.

The battle isn't over regarding insurance cost or real estate taxes but the results so far are positive for homeowners and those thinking of purchasing in the Keys.

Why its a great time to buy property in the Keys

It's a GREAT time to BUY a home in PARADISE





Why now is a good time to buy.

Appreciation – Waterfront property has a long history of appreciation. Because the Florida Keys are geographically restricted, land is in limited supply, demand will always remain high and will hold its value.

Real Estate as an Investment – The amount of second home owners are on the rise. Baby Boomers believe in diversifying their assets, and most second-home owners see their purchase as a solid investment.

Pricing – The Florida Keys are still a bargain as compared to much of the east coast of Florida .

Homes Are Selling – Over 7 million new and existing homes were sold in each of the past three years. Total home sales are expected to exceed 7 million in 2006 for the 4th consecutive year!

Mortgage Rates are at Historical Lows – Currently the average 30-year fixed mortgage rate is approximately 6.60%.

Selection is Excellent – With more available properties on the market, finding just the right home has never been easier.

Demand Will Continue – One million new households have formed each year, on average, since 2000. The number of U.S. households is expected to grow by 14.6 million during the next 10 years. Strong household growth together with rising income will likely translate into increased demand for housing.

Home Sale Prices Have Increased – Median existing U.S. home sale prices have increased on average 6.5% each year from 1972 through 2005.