Out-of-town buyers aren’t just snapping up Miami’s prime real estate — they’re also changing the way luxury developers build.
Miami home sales in June set 10-year record - Median price for homes grew almost 15% in June, year-over-year, to $280,000
Home sales in Miami scored a small victory last month, setting a new volume record for the past 10 years. June saw a total of 1,390 homes sold in the Miami market, an increase of 8.6 percent year-over year, and an increase of 80 homes from the previous record that was set in June 2005. The Miami Association of Realtors said in a release that this was the highest amount of homes sold in a single month in Miami’s history. So far this year, 7,100 single-family homes have been sold. The association said at this pace, the metropolitan area will also break its annual record of 13,521 sales that was set last year. The median price for homes grew almost 15 percent in June, compared to the same month last year. It now stands at $280,000, up from $243,700.
Despite this increase in sales activity, recent analyses have hinted at a slowdown in the market. Prices have ballooned due to consistent demand and a shrinking supply of houses for sale. On the flip side, Miami’s supply of condos has dramatically increased and the volume of sales has begun to ebb.
U.S. home resales rose in June to their highest level in nearly 8-1/2 years, a sign of pent-up demand that should buoy the housing market recovery and overall economy.
The National Association of Realtors said on Wednesday existing home sales increased 3.2 percent to an annual rate of 5.49 million units, the highest level since February 2007.
Existing sales this year are on track to record their biggest gain in eight years, the NAR said. May's sales pace was revised slightly down to 5.32 million units from the previously reported 5.35 million units.
Economists polled by Reuters had forecast home resales rising to a 5.40 million-unit pace last month. Sales were up 9.6 percent from a year ago.
June's solid home sales report came on the heels of last week's strong housing starts and building permits data. A tightening labor market is starting to push up wages, helping to boost demand for housing, especially among young adults. But supply remains a constraint.
The string of strong housing reports indicate the economy remains on firmer footing despite a drop in retail sales and a slowdown in job growth last month.
By Eric Glazer, Esq.
Although some Board members and unit owners often object, Florida community association law is clear, unit owners have the right to video tape meetings.
FLORIDA STATUTE 718.112(2)(C) states: Board of administration meetings.—Meetings of the board of administration at which a quorum of the members is present are open to all unit owners. Members of the board of administration may use e-mail as a means of communication but may not cast a vote on an association matter via e-mail. A unit owner may tape record or videotape the meetings. The right to attend such meetings includes the right to speak at such meetings with reference to all designated agenda items. The division shall adopt reasonable rules governing the tape recording and videotaping of the meeting. The association may adopt written reasonable rules governing the frequency, duration, and manner of unit owner statements.
Rule 61b-23.002 of the Florida Administrative Code – (adopted by the Division, for Condominiums) provides:
(10) Any unit owner may tape record or videotape meetings of the board of administration, committee meetings, or unit owner meetings, subject to the following restrictions:
(a) The only audio and video equipment and devices which unit owners are authorized to utilize at any such meeting is equipment which does not produce distracting sound or light emissions.
(b) If adopted in advance by the board or unit owners as a written rule, audio and video equipment shall be assembled and placed in position in advance of the commencement of the meeting.
(c) If adopted in advance by the board or unit owners as a written rule, anyone videotaping or recording a meeting shall not be permitted to move about the meeting room in order to facilitate the recording.
(d) If adopted in advance by the board or unit owners as a written rule, advance notice shall be given to the board by any unit owner desiring to utilize any audio or video equipment.
(e) Unit owners are entitled to tape record or videotape board meetings and committee meetings occurring on or after April 1, 1992.
Foreclosure activity across the United States dropped to its lowest in a decade during the first half of 2015, according to data released Thursday.
A total of 597,589 properties were at some stage of the foreclosure process from January to June, said RealtyTrac, which tracks housing market trends.
Foreclosure activity, which includes foreclosure notices, scheduled auctions and bank repossessions, were down 13% from the second half of last year and down 3% from the same period of 2014.
Foreclosure starts fell 4% to 304,439 in the first half of this year, the lowest since RealtyTrac started tracking the data in 2006.
"U.S. foreclosure starts have not only returned to pre-housing crisis levels, they have fallen well below those pre-crisis levels and are still searching for a floor," said Daren Blomquist, RealtyTrac vice president.
Overall, 19 states, including California, Florida and Arizona saw foreclosure activity below or at the same level as 2006, before the economic crisis hit.
In June alone, 117,055 properties were at some stage in the foreclosure process, down 8% from the prior month, but up 9% from June 2014.
Lenders repossessed 36,503 homes in June, down 19% from May but up 36% from a year ago. June was the fourth straight month of annual increases in bank repossessions, which remained far below the peak in September 2013, when lenders reclaimed 102,134 properties.
Foreclosure starts fell 4% to 49,105 in June, but were up 4% from the same period last year, RealtyTrac said.
Atlantic City, New Jersey's financially distressed gambling hub, experienced the top metro foreclosure rate in the first half, with a foreclosure filing for 1.70% of housing units, or one in every 59.
"First they came for the Socialists, and I did not speak out—
Because I was not a Socialist.
Then they came for the Trade Unionists, and I did not speak out—
Because I was not a Trade Unionist.
Then they came for the Jews, and I did not speak out—
Because I was not a Jew.
Then they came for me—and there was no one left to speak for me."
Pastor Niemöller circa 1950
By Eric Glazer, Esq.
When the foreclosure crisis was at its peak, developers were complaining that they were in effect stuck with numerous condominium projects that simply weren’t selling. They wanted the ability to at least try and save the project by converting it into a rental community instead of being forced to maintain it as a condominium. The problem was what to do about those pesky people who actually did buy a unit in the condominium and were now demanding that the condominium remain as a condominium and the developer fulfill all of the developer’s obligations.
I know this is hard to believe, but The Florida Legislature helped out the developers in a big way. Despite the fact that the law always required a condominium to be terminated with a 100% vote of the owners, The Florida Legislature passed a new law that now allowed for termination with an 80% vote. Since the developer was normally stuck with at least 80% of the units, termination was now easy. In effect, the statute allowed the developer to now repurchase the units they sold to the initial few and kick the owners to the curb. So, you would think they get all their money back right? No. Under the new termination provisions, the developer was only required to repurchase the units for as little as what the county now appraised them for. So, these people paid full price, paid their mortgage each month, paid their assessments and were getting kicked out anyway and forced to sell at tremendous discounts.
It gets worse.
People like Jan Bergemann warned that this new law would allow any other investors to gobble up units in even successful condominiums, and once they own 80% of the units, terminate them as well. While the statute was certainly meant to get developers out of a condo project doomed for failure, the new law could also be used by investors seeking to turn a successful condo into a more profitable rental community. The Florida Legislature didn’t heed these words. Until now.
After much publicity in the media, effective July 1st the “termination” law has finally changed. A developer can still terminate with an 80% vote, but not if ten percent of the owners vote in opposition to the developer’s termination plan. In addition, developers must pay the owners fair market value for their unit as determined by an independent appraisal and a relocation fee. The termination plan must also provide that the first mortgage is paid in full for all units being purchased under the termination plan.
It only took a couple of years to stop the damage to Florida condominium owners. Developers literally get relief overnight however time and time and time again.