Market could flatten soon, observers say

Market could flatten soon, observers say: "MIAMI -- Aug. 22, 2005 -- A number of economists believe the increased popularity of interest-only loans and other innovative mortgage products suggests that the national housing market is peaking.

They also cite a new report from the National Association of Realtors� (NAR) that says national housing affordability is at its lowest level since 1991.

NAR expects the home-price appreciation rate to drop by half next year. Additionally, the group reports that homes are languishing on the market longer than in the past, and inventory is on the rise.

In South Florida, however, experts do not anticipate such a slowdown. The region is becoming more expensive, but demand from foreign investors, second-home buyers and residents from other states has depleted the inventory of for-sale properties. As a result, the Florida Association of Realtors says second-quarter resales slipped 18 percent in Broward County and 13 percent in Palm Beach County from the corresponding period in 2004.

'We're not seeing a slowdown at all, but if we did it wouldn't affect us in the near term because we can't handle all of the demand we've got now,' explains Alan Levan, chief executive of Fort Lauderdale-based Levitt Corp."

Condo builders face construction squeeze

Condo builders face construction squeeze: "MIAMI -- Aug. 16, 2005 -- The big question in the real estate market these days isn't how long the condo boom will last, but: How in the world are all those condos going to get built?
So many projects are in the works in South Florida and the Treasure Coast that every part of the construction industry is scrambling to line up labor and materials. Some contractors are even doing the unthinkable - turning down jobs.
Experts warn that's a sign the condo market is becoming overheated. 'Not all the projects that are contemplated now are going to get started,' said Steve Siegfried, a West Palm Beach construction lawyer. And even those that do get started might not be finished on time, he said.
Suffolk Construction is one general contractor that isn't taking on any more condo jobs. 'We've turned down $1 billion worth of work. It's the craziest I've ever seen in my 25-year career,' said Rex Kirby, president and general manager for the Florida division of the Boston-based firm."

NAR: Metros see high home price gains

NAR: Metros see high home price gains: "WASHINGTON � Aug. 16, 2005 -- The majority of metropolitan areas experienced historically strong annual increases in median existing-home prices in second quarter 2005, according to the latest survey by the National Association of Realtors� (NAR).

The association�s second-quarter metro area home price report, covering changes in 149 metropolitan statistical areas, shows 67 areas with double-digit annual increases in median existing single-family home prices and seven areas posting generally modest price declines; none of the areas seeing declines had previously recorded rapid gains. NAR has expanded the number of metros covered in the report, and revised the definitions of metros due to changes in those areas over time.
"

Florida and China: Part I

Florida and China: Part I: "With its entrance into the WTO in 2001, China committed itself to lowering tariffs. Then in July China took the first steps to implement a market-determined exchange rate to manage its booming economy, which grew by 9.5 percent in the first half of 2005. Just yesterday, Yahoo announced it would pay $1 billion in cash to acquire a 40 percent stake in the Chinese e-commerce firm Alibaba. And also this week Baidu, billed as the Chinese Google, attained an overnight market valuation of 3 billion dollars after its initial public offering. Finally with the continued housing boom in Florida, we are told one reason for the increasing costs for fuel and concrete products is China�s growing economy. Well, we thought it might be time to look at Zhonghua Renmin Gongheguo (the People's Republic of China), and its relationship with the State of Florida.


In 2004, Florida's export shipments of merchandise totaled $29 billion ranking it eighth among the states in total exports. The state's export leader is computers and electronics with 29 percent of Florida's total 2004 merchandise exports. Other top manufactured Florida exports include transportation equipment, chemicals and machinery. Florida�s largest export markets are Brazil, Canada and Mexico. Other top markets included Venezuela, Colombia, the Dominican Republic, the United Kingdom, Japan, Chile, and the Netherlands. China is nowhere on the upper end of this list."

Condo crush lures foreign investment

Condo crush lures foreign investment: "MIAMI -- Aug. 5, 2005 -- They have thought-provoking names like Opera, Axis and The Venture, condominiums that will line Miami's bayfront skyline.
These high-rises are part of a part of a condo crush spawned by the nation's housing boom and buoyed by active investors from Europe, Latin America and the U.S. Northeast that target the city because of its worldly feel and relative affordability.
'When you look around the world and you consider the factors of the environment, climate, amenities, risk and appreciation, Miami ranks way high up there,' said Jorge Perez, chairman of The Related Group of Florida. The Miami-based developer plans to build more than 15,000 units in South Florida and Las Vegas in the next four years - with buyers already lined up for many of them
From Florida to California, condos are a growing housing option for people who have been priced out of the single-family home market or are seeking a more upscale, all-in-one lifestyle for a second home. They are also a growing market for speculators - many from abroad - looking for units to resell, or 'flip,' to take advantage of low interest rates, cheap dollars and attractive supply and demand."

10 biggest mistakes of novice investors

10 biggest mistakes of novice investors: "10 biggest mistakes of novice investors
WASHINGTON -- Aug. 4, 2005 -- Real estate has become the tech stocks of the 2000s, the darling investment that everyone seems to think will be their ticket to easy wealth. And why shouldn't investors be snapping up cute little cottages? After all, mortgage rates are low and the housing market is hot. How hard could it be? Slap on a new coat of paint, put some flowers in pots by the front door, put a 'For Rent' sign in the yard and start counting the cash.

It's a popular notion. The National Association of Realtors reports that nearly a fourth of all the houses sold in 2004 went to investors; about 80 percent of investment properties are existing single family houses.

If they're looking for rental income -- and most investors are, according to the NAR -- buying a single-family house may be their first mistake. All it takes is for a property to sit vacant for a couple of months -- or a tenant to run out on the lease -- to put a new real estate investor in a financial bind. Far better to buy multifamily units, such as duplexes.

That way, you can live on one side and have the rent from the other side pay your mortgage. Or, rent out both sides and give yourself some breathing room in case one tenant moves in the middle of the night without paying his rent.

'I'm not a proponent of single-family units,' says John Anthony, president of the Pennsylvania Association of Mortgage Brokers. 'A first-time investor should look at (multifamily units of up to) four units to limit their risk.'

If you're still convinced that investing in rental real estate is the road to riches, at least go into the proposition with your eyes (and your wallet) open. Here are 10 common mistakes made by new real"

Housing industry awakens to Hispanic market

Housing industry awakens to Hispanic market: "NEW YORK -- Aug. 3, 2005 -- Home builders are loosening their credit standards and mortgage lenders are getting creative in an effort to target the Hispanic market, whose homeownership rate of 49 percent is well below the national rate of 69 percent.

Last year, Countrywide Home Loans started offering loans with no downpayment to prospective borrowers who can provide a year's worth of utility bills, rent or even cable payments -- a product that should serve the Hispanic market well, according to Mary Salinas Duron, executive vice president of national multicultural markets for Countrywide."

New home prices still rising around S. Florida, but home building drops in Broward: South Florida Sun-Sentinel

New home prices still rising around S. Florida, but home building drops in Broward: South Florida Sun-Sentinel: "Across South Florida, demand and prices for new homes rose in the second quarter of 2005, but only Palm Beach and Miami-Dade counties saw increases in the number of new homes under construction.

With little developable land available in Broward, the number of homes being built fell to the lowest level in years during the second quarter, according to data released by market research firm Metrostudy.

The number of single-family homes under construction in Palm Beach County was up 12.1 percent over the same period last year, while Miami-Dade County had a 36 percent increase. There were 2,334 homes started in Palm Beach County and 2,629 in Miami-Dade County.

But home construction fell 60 percent in Broward, with only 566 homes started in the entire county. Broward's annual pace is slowing to 4,000 new homes, compared with a peak of 11,000 a few years ago, said Bradley Hunter, director of Metrostudy's South Florida division.

Home construction in Broward was concentrated in the county's western communities, such as Davie and Miramar, but Hunter thinks there are still opportunities for developers to build. About 31 percent of vacant lots that will soon be started are priced between $250,000 and $300,000, but more than half of the projected starts are priced below $400,000.

'Some people say Broward is approaching buildout or is already there,' Hunter said. 'What's really happening is that it's getting more challenging to find land for development.'

Prices for new homes have also been fueled by demand. In Palm Beach County, only 11 percent of the developed lots are for homes at or below $300,000. More than "