NAR Chief Economist: South Florida Real Estate Market At Bottom

The South Florida residential real estate market is at bottom and likely to experience some appreciation within a year, the National Association of Realtors Chief Economist Dr. Lawrence Yun said.

"I think the prices have already pretty much bottomed in the South Florida market," Yun said. "The rest of the country is more difficult to say but I think here, given the buyers, the prices have already bottomed in Florida."

Yun made the declaration (Watch The Video) on June 11 during a keynote address to a lunch crowd of the International Real Estate Congress and Expo. The event was hosted by the Realtors Association of Greater Miami and the Beaches at the Biltmore Hotel in Coral Gables.
Yun's keynote address preceded a panel discussion on the South Florida real estate market with Peter Zalewski, founder of Condo Vultures® LLC; Rei Mesa of Prudential Florida Realty; Oliver Ruiz of Fortune International Realty; and Ron Shuffield of EWM.
Given the growing number of residential deals occurring in South Florida despite no readily available financing, Yun projects that today's buyers could actually realize some home price appreciation as soon as next year when credit is expected to be available once again.

"Soon you will reach the point of equilibrium where home prices begin to show growth," Yun said. "It is always difficult to precisely predict. I think that many people who are buying today in this month - June of 2009 - if they look back a year from now in June 2010, I think many people will see that they have actually gained in equity."

Yun cautioned that the South Florida market conditions - a diverse community with limited developable land, attractive weather, and an international appeal - give the region an advantage over many other areas in the United States.

"There will be some premium attached to Miami, in relation to say Atlanta, Birmingham, and others," Yun said. "So the price point in Miami will be much stronger when compared to other, say, southern states across the country or even say the rest of America. For that reason, I am very hopeful that currently it is an undervalued market.

"Buyers are recognizing [that]. Sales up about 100 percent from one year before."

Yun's comments come a month after national real estate analyst Jack McCabe of McCabe Research & Consulting in Deerfield Beach, Fla., told CondoVultures.com that he thinks South Florida residential prices are within 15 percent of the bottom.
McCabe, who began warning of a Florida housing bust in 2005, projects the South Florida residential real estate bottom will be reached by the summer of 2010.

"I think the worst is behind us, but I still believe we have another 10 to 15 percent drop because of the unemployment and the foreclosures depressing prices, and the amount of inventory we have yet to absorb," McCabe told CondoVultures.com.
Rental Rates Seminar Attracts Standing-Room Only Crowd
A standing-room only crowd of nearly 100 people turned out for the Condo Vultures® rental rates panel discussion in the heart of Greater Downtown Miami to listen to five experts discuss double-digit cap rates on condominiums.

The two-hour program, Rental Rates and the Quest for Double Digit Cap Rates In South Florida, on June 16 at the Doubletree Grand Hotel featured a networking session, discussion, and question and answer period with a panel that covered a wide range of topics including cap rates, rental trends, and condo association management issues.
The panel, moderated by Zalewski of Condo Vultures® LLC, featured:

- James Donnelly, president of the Castle Group condo association management company;
- McCabe, chief executive of McCabe Research & Consulting;
- Alan Ojeda, developer of the high-rise Miami rental tower One Broadway;
- Raul Valdes-Fauli, Miami-Dade County president of CNL Bank;
The event was sponsored by Fisher Auction; Tui Lifestyle; Turnkey Designs, and the Castle Group.

Video segments of the presentation will be posted later this week on the Market Intelligence video page at CondoVultures.com. A complete copy of the June 16 program will be available for purchase in August.
Condo Vultures® Deep Discounts of the Week: Bank-Owned Properties
Here is a list of some of the biggest discounts in the Vultures Database™ on properties currently bank-owned in Miami-Dade, Broward, and Palm Beach counties:

Miami-Dade County:
Aventura: Bank-owned condo reduced by 52 percent.
Bal Harbour: Bank-owned, oceanfront condo reduced by 33 percent.
Coral Gables: Bank-owned home reduced by 57 percent.
El Portal: Bank-owned home reduced by 69 percent.
Miami: Bank-owned condo reduced by 85 percent.
Miami Beach: Bank-owned condo reduced by 66 percent.
Miami Shores: Bank-owned home reduced by 73 percent.
N. Bay Village: Bank-owned home reduced by 55 percent.
N. Miami: Bank-owned condo reduced by 87 percent.
N. Miami Beach: Bank-owned condo reduced by 78 percent.
South Miami: Bank-owned home reduced by 80 percent.
Sunny Isles: Bank-owned condo reduced by 44 percent.

Broward County:
Dania Beach: Bank-owned house reduced by 21 percent.
Fort Lauderdale: Bank-owned condo reduced by 58 percent.
Hallandale: Bank-owned home reduced by 43 percent.
Hollywood: Bank-owned home reduced by 74 percent.
Oakland Park: Bank-owned home reduced by 66 percent.
Pompano Beach: Bank-owned condo reduced by 33 percent.

Palm Beach County:
Boca Raton: Bank-owned condo reduced by 47 percent.
Boynton Beach: Bank-owned condo reduced by 40 percent.
Delray Beach: Bank-owned condo reduced by 42 percent.
West Palm Beach: Bank-owned home reduced by 27 percent.