House Keys moving to new address
Our blog is moving.
This is the last House Keys post on this site, but we’ll still be around to offer news of interest to buyers, sellers and homeowners. Click here to bookmark the new address.
Look forward to seeing you there. And just so you know: Housewarming gifts are totally optional.
To follow Paul Owers on Twitter, click here.
Private equity giant Blackstone to buy homes across country
A large private equity firm says it’s embarking on a plan to buy homes across the country and turn them into rentals.
The Tampa Bay Times reports Blackstone intends to buy $1 billion in properties in that region over the next three years. Peter Rose, a spokesman for Blackstone, said Friday the firm has started acquiring homes “in a number of cities across the U.S.” but added that the amount of money spent in any one city would be a “tiny fraction” of $1 billion.
Rose declined to identify markets that New York-based Blackstone is targeting. He said the firm is working with local real estate agents in the various communities.
“It’s a fundamental belief that the housing market in certain cities is stable, the economy is improving and people need affordable places to live,” Rose said. “The combination of all that makes this an attractive opportunity.”
Stephen McWilliam, president of the Greater Fort Lauderdale Realtors, said he isn’t aware of any South Florida deals by Blackstone. David Dweck, founder of the Boca Real Estate Investment Club, said he hasn’t seen anything specific either, though he has heard rumblings.
Ask a real estate pro: Include deposit with short sale offer?
Board-certified real estate attorney Gary M. Singer answers housing questions in this space each Friday. To ask him a question about short sales, mortgages, refinancing, homeowner's associations or any other residential real estate topic, click here.
Q: When making an offer on a short sale that has already been approved by the bank, should I include an earnest money deposit, or should I wait until the lender approves my offer? – Jim
A: Definitely include the deposit. I’m guessing that in your case a short sale previously was approved for the property and the buyer did not close, so now the seller is looking for a new buyer. In any short sale, I recommend to the seller to accept only an offer that is accompanied by a deposit because it is important to know that the buyer is serious and will stick around until the deal is finally approved. If no deposit is given, there is nothing to stop a buyer from entering into multiple contracts and closing with whichever gets approved first, leaving the other sellers high and dry. We seem to be entering into a seller’s market again, and if you do not show the seller that you are serious, you risk being passed over for a better offer.
Q: My wife and I have a condo to rent. My wife wants to use a cousin as the real estate agent, but her cousin has been licensed for only a year or two. I want to use a more experienced agent we’ve hired before with good results. What should we do? – Mike
A: My first rule of marriage is “a happy wife means a happy life.” But it’s important to remember that renting property should be treated as a business transaction, and the agent you use should be the best person for the job. If the agent has 30 years of experience listing million-dollar homes, but has never rented a condo, he or she may not be the best person to use in this case. But it also may not be wise to hire a family member to handle a business deal. I recommend that you come up with an objective list of questions and interview both candidates. You might also consider interviewing another agent or two.
The information and materials on this blog are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed, nor should any such relationship be implied. Nothing on this blog is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.
To follow Gary Singer on Twitter, click here.
Sound off on Citizens rate increases
Customers of Citizens Property Insurance Corp. can comment Thursday on rate increases sought by the state-run insurer of last resort.
Regulators will hold a public hearing from 4-8 p.m. at Miami-Dade College-Wolfson campus in downtown Miami. Click here for details.
In July, Citizens’ board voted to increase total premiums by more than $250 million, with a statewide average rate hike of about 10 percent.
Policyholders who can’t attend in person should email comments to the Florida Office of Insurance Regulation at ratehearings@floir.com with "Citizens Property Insurance" in the subject line.
August home prices increase in Broward, PB counties
South Florida's housing recovery continued in August with higher prices and robust sales.
Broward County's median price for existing homes last month was $214,950, a 13 percent increase from $191,000 a year ago, the Greater Fort Lauderdale Realtors said Wednesday.
There were 1,369 homes changing hands in August, up 15 percent from August 2011.
Palm Beach County's median was $215,000, a 12 percent increase from a year ago, according to the Realtors Association of the Palm Beaches. The county had 1,247 home sales, up 8 percent.
Many areas across the country are seeing housing conditions improve following years of price declines.
"After the six years of turmoil that we had, it's good to see the trends strongly moving in the right direction," John Tuccillo, chief economist for the Florida Realtors, said in a statement.
Sellers now are commanding more money for homes, largely due to a lack of properties for sale.
At the end of August, Broward had 4,784 homes on the market, less than half the number from a year ago. Palm Beach County's inventory is down 44 percent.
When a home hits the market, buyers usually flood the listing agent with requests for showings.
“I feel like we’re back in 2004 and 2005, where we’re having to race the customer to the house,” said Terry Story, a real estate agent in Broward and Palm Beach counties.
First-time buyer Gabrielle Harbin got married last week, but she had to interrupt wedding preparations and her work schedule to tour a Boca Raton house that just hit the market. The seller accepted her offer, and she hopes to close on the deal by October.
Harbin, 29, said the market is so tight that buyers can’t wait until the weekends to leisurely visit homes and make offers. “It just feels so rushed,” she said. “But that’s just the reality of it all.”
Connie Adcock listed her Davie home for sale or lease after taking a new job in California. She figured the process might take six months, but she had six offers in six days.
Zack Spinks sold his five-bedroom Coral Springs home this summer for $400,000. He had 25 showings in two and a half weeks and ended up with two offers.
“I was getting calls every day and had three or four showings a day,” Spinks said. “I was shocked. I didn’t expect that kind of activity.”
Meanwhile, data released Wednesday show that the South Florida metro area remains a top spot for home flipping.
Palm Beach, Broward and Miami-Dade counties rank fourth nationwide with 5,114 flips during the first half of the year, according to RealtyTrac Inc. That’s up 59 percent from the same period of 2011.
The flippers – investors who buy homes and resell them within six months – earned a profit of $38,943, RealtyTrac said. The average number of days per flip is 105.
During the housing boom, flippers often bought and sold homes within days or weeks, capitalizing on rapid price appreciation. Today’s flippers are renovating the homes and adding value before reselling, RealtyTrac spokesman Daren Blomquist said.
“Ultimately, that’s good for the market,” he said. “They’re fixing these homes up so they’re the best properties for sale in the neighborhood.”
Builders upbeat about market for new homes
Builder confidence continues to grow, rising to its highest level in more than six years.
The National Association of Home Builders/Wells Fargo Housing Market Index hit 40 in September, the best reading since June 2006. It was a fifth consecutive monthly gain.
South Florida builders have been saying for months that business is picking up. GL Homes, Standard Pacific and Toll Brothers, among other companies, have announced new projects or started construction in Broward and Palm Beach counties.
Builders are bullish on sales, future prospects and consumer foot traffic, NAHB Chief Economist David Crowe said in a statement.
But Crowe added that lack of building lots in certain markets is a concern, as is the rising cost of building materials. “Given the fragile nature of the housing and economic recovery, these are significant red flags,” he said.
To follow Paul Owers on Twitter, click here.
Free mortgage seminar Saturday in Sunrise
A reminder for homeowners who need mortgage help: A free seminar will be held Saturday in Sunrise.
Bank of America, Wells Fargo and Chase are among the lenders that will be on hand to meet with borrowers about mortgage modifications.
The event is sponsored by United Financial Counselors, a nonprofit agency.
For more details or to register, click here.
To follow Paul Owers on Twitter, click here.
PAUL OWERS is a West Palm Beach native who graduated from the University of Central Florida in 1989. He covers the housing market for the Sun Sentinel after spending seven years on the real estate beat for that daily paper just up the road. He has impeccable timing, arriving at the Sun Sentinel on the very day that Hurricane Wilma pummeled South Florida. The real wrath came in early 2006, from readers, when he wrote that the five-year housing boom was over. They argued, cursed and complained before grudgingly admitting he was right.
