0 Florida Real Estate in 2015 Finished Strong

Posted on February 12, 2016 by Sean Greco

We are only a little bit over a month into 2016, and so a good way to indicate the future of the market in the Sunshine State is to look at the stats from Florida Real Estate in 2015. In recent data released by Florida Realtors,there were more closed sales, more new listings and higher median prices in 2015 compared to the year before.

What are the stats from Florida Real Estate in 2015?

According to Florida Realtors, new listings for existing single-family homes rose 3.7 percent in 2015 compared to the year before. The median sales price across the state for single-family existing homes in 2015 was $196,000, up 10.1 percent from the previous year.

For townhouses, new listings increased 1.5 percent from the year before. The median price for that type of property was also up 7.1 percent to $150,000.

“2015 was a very strong year in terms of sales growth in Florida’s single-family home markets, thanks to a sales surge that began in the fourth quarter of 2014 and lasted through the third quarter of 2015,” said Florida Realtors Chief Economist Dr. Brad O’Connor. “In each of the first three quarters of 2015, we observed double-digit percentage increases in sales on a year-over-year basis. Year-over-year growth in 2015’s final quarter was more subdued, signaling a possible return in 2016 to more stable rates of sales growth.

“We expect home prices, on the other hand, to continue to rise at an elevated pace in 2016, as much of the state is in the midst of an inventory shortage that is likely to persist throughout the year.”

2015’s jumps in sales diminished inventory. Florida real estate in 2016 will see price increases while building catches up. This could mean a few things for you depending on which side of the market you are on: sell in 2016 at a high price, or buy soon to get the best deal of the year.

RE/MAX Paradise is excited to see what will come in 2016, so contact us with any questions today!

You can check out the full report here.

0 Helping Homeless Veterans Find Homes

Posted on February 4, 2016 by Sean Greco

Homelessness is a problem in many cities in America. Sadly, many families struggle to find the means to rent or buy a home. Tens of thousands of these homeless people are military veterans, a sector of the population that RE/MAX Paradise and most people respect greatly. A combination of factors contribute to homeless veterans, but recently, the government has implemented programs with the goal of helping homeless veterans in particular. In 2009, Obama made a goal to end homelessness amongst veterans in six years. He has been somewhat successful: a recent article discusses how the number of homeless veterans is decreasing all across the country.

From January 2009 to January 2015, the number of homeless military veterans on the streets dropped 35 percent. Many major cities have reported drops in this number. However, there were still around 48,000. While strides are being made, there is continued need for more movements helping homeless veterans.

How is the government helping homeless veterans?

The Obama administration implemented strategies to complete a goal of ending homelessness for veterans. Congress expanded rental vouchers for veterans. Federal agencies also emphasized a “housing first” model. That model meant people could move into an apartment and receive help to address employment, mental health or addiction issues. These strategies have helped bring down rates of homeless veterans.

RE/MAX Paradise is dedicated to helping find veterans permanent homes. The Veterans First Program offers a reward schedule and specialized help to veterans who are looking for a home. The agents at RE/MAX Paradise would be happy to answer any questions you have about the program because we want to see those who fought for our country living more comfortably.

With federal vouchers like those implemented by the government and programs such as The Veterans First Program, we are helping homeless veterans get off the streets like they deserve.

0 There are great benefits of being a landlord

Posted on November 30, 2015 by Sean Greco

While buying a home, fixing it up and then flipping it can lead to good profits, there are also some great benefits of being a landlord. Flipping a home might give you a great chunk of change after the sale, but being a landlord who rents a home means longterm income.

Daren Blomquist of Realty Trac said that an investor can earn 15 percent back from a flipped home- but the downside is that it only happens once. However, he said, an investor who buys a home and turns it into a rental can expect recurring profits, something in the range of 6 percent to 9 percent annually. Especially in today’s housing market where there is no shortage of demand for homes, there will be no shortage of tenants.

“With buying and renting, you’re getting the best of both worlds,” Blomquist said. “You’re getting returns coming in every year, plus you get the long-term [home value] appreciation. It’s like a stock with dividends.”

In Palm Beach, Broward and Miami-Dade counties, 31 percent of single-family homes, townhomes and condominiums are owned by people who don’t live there. An article in the Sun Sentinal recently talked to Phil Schaal, who owns three rental homes about what he thinks the benefits of being a landlord have been. They also discussed challenges he faces as a landlord. He had to learn to balance the amount of money he put into making the homes better with how much money he would be making from renting them.

“It’s not all gravy,” Levinrad said. “There is some work in it. But there’s also a substantial reward in cash flow, if you buy the homes right.”

In a flourishing housing market, investors who decided to be landlords really will see a lot of benefits. If you are interested in finding a property not to live in or flip, but to rent out, check out the properties available at RE/MAX Paradise today.

0 Financing a home just got less stressful

Posted on October 21, 2015 by Sean Greco

Financing a home can be stressful, as exciting as it is to close on a new home. New rules will make it easier for buyers to understand their financial obligations when they take a loan.

On October 3, a new set of rules that require lenders to provide borrowers with clearly laid out details on their loan and what it will cost them in an initial estimate and, closer to closing, a final summary took effect.

These rules, called the “Know Before You Owe” rules were put into effect by the Consumer Financial Protection Bureau. Borrowers also will can review their final loan terms and fees before the transaction closes for a minimum of three days.

“It’s going to be easier to compare loan offers, and when you close it’s going to be easier to check to see if you’re getting the loan that you were promised,” said Holden Lewis, a mortgage analyst at Bankrate.com.

These rules also imply potential delays if a borrower’s finances drastically worsen. For example, if a borrower’s credit score changes near the closing date, lenders will restart the loan disclosure process.

To steer clear of problems when getting used to these new processes, there are a few recommended tips to follow. Florida Realtors posted more details about these suggestions.

First, understand the changes that come with new documents. Avoid causing delays by not doing things like applying for credit, closing out a credit card or going on a credit-spending spree before sealing the deal on a home. Borrowers are also recommended to ask for a longer rate lock to have a better cushion of time. Lastly, try to do a final walkthrough of a home several days before the closing, because changes to loan terms can only be made three days before the closing.

Florida Realtor lawyers also compiled a list of need-to-know information about the changes.

Interested in buying a home? These changes will make the process smooth and relaxing for you! Don’t wait to check out some of Miami’s best properties from RE/MAX Paradise!

0 Chinese Real Estate Buyers Using All Cash Triples since 2005

Posted on October 15, 2015 by Sean Greco

In the last ten years, many Chinese have been coming to the US and spending cash on real estate. According to RealtyTrac, the number of all-cash sales by Chinese real estate buyers has tripled since 2005.

RealtyTrac is an Irvine, California based realty research company and they conducted an analysis of housing sales alongside Ethnic Technologies, a New Jersey-based multicultural marketing company.

The results were determined by software that can determine ethnicity and language preference based on first name, last name, and address of the record, according to Ethnic Technologies.

This analysis shows that 46 percent of Mandarin Chinese-speaking buyers who purchased homes in the 17 months ending in May 2015 paid all-cash.

In 2005, just 14 percent of Mandarin Chinese-speaking home buyers used all cash. This means the number of Chinese using only cash to purchase real estate increased by 229 percent- the most of any other language group.

Cash buyers across the board are playing a much bigger role in the housing market now than they were 10 years ago, and that is particularly true for Chinese Mandarin-speaking cash buyers, who are more likely to be foreign nationals,” said Daren Blomquist, vice-president at RealtyTrac, in a release accompanying the analysis on Oct 6.

What are the implications of all-cash buyers? According to Blomquist, sales with foreign cash buyers like these have positive effects in the short term because of current and continued economic instability globally.

“But those markets are also more susceptible to a downside in the longer term when demand from foreign cash buyers dries up,” he added.

Either way, Chinese buyers are important to the US real estate market. They make up one third of international buyers, and Chinese real estate buyers spent $22 billion on US housing in the 12 months through March 2014 – 72 percent more than a year earlier, according to the National Association of Realtors, buying mostly high-end, expensive homes with a median price of more than $500,000.

With all-cash purchases becoming more common, these transactions positively affect our real estate market.

For more information or to check out one of the amazing properties available today, contact RE/MAX Paradise.

0 Real Estate Drones

Posted on October 9, 2015 by Sean Greco

Real Estate Drones

Florida drone pilots have been receiving more exemptions from the Federal Aviation Association, leading the country in usage of real estate drones. With 97 exemptions for drone pilots in the state, Florida is second in the country overall for drones, behind California.

The FAA gives exemption to pilots who abide by their restrictions. Operators must have their pilot’s certificate, and keep drones in their lines of sight and operate in daylight only. The drones must weigh less than 55 pounds and fly no higher than 400 feet.

According to the Orlando Sentinel, Florida has 45 exemptions for real estate uses, making that the leading use of drones in the state, according to the report by the Association for Unmanned Vehicles Systems International.

“I think the certificate is legitimizing the industry to companies who want to use this technology to help advertise, whether it’s real estate or television stuff or movies,” videographer Brandon Horgeshimer said. “It’s kind of like you hire a plumber and you’d like him to have a plumbing license.”

Unmanned drones for commercial use were not legalized until summer 2014.

The use of drones in the real estate market can give potential buyers a bigger picture of a home they are interested in. The drones, which have the ability to fly above homes, can better show things like distance to a neighbor’s home or scenic views.

“From an aerial perspective, you get a better perspective of a home,” said Douglas Trudeau, a pioneer of the real estate drone photography, according to an article by the NW Times. After getting the scope of the exterior, Trudeau said it’s easier to transition to the interior. “Now let’s go inside. Let’s look at this kitchen. People see the home as a living space,” he said.

Having drones will help real estate agents and home sellers to showcase their properties better, and give potential buyers a realistic and large view of a home without even having to visit the property.

0 Miami’s hottest neighborhoods

Posted on October 1, 2015 by Sean Greco

Miami’s hottest neighborhoods

Last Thursday September 24, a panel of real estate professionals discussed Miami’s hottest neighborhoods for real estate development right now. The neighborhoods they decided on not only were those right on the beach, but also some in downtown, urban Miami.

According to The Real Deal, the event on Thursday was a packed luncheon sponsored by the Miami Beach Chamber of Commerce and the Miami Association of Realtors.

Five panelists spoke, including Louis Birdman, principal of Birdman Real Estate Development, who said, “The area that I am the most excited about in the future is Wynwood and the [Miami] Design District.”

Inland development is inevitable as beachfront becomes more and more developed.

“As developers, we have to look at what we can do to pull people away from the beach,” Birdman said.

Other panelists had all sorts of ideas of who would make the next list of Miami’s hottest neighborhoods: from downtown Miami to Surfside and North Beach area to Brickell Avenue.

The panelists also acknowledged some financial aspects of Miami’s real estate, including the value of the dollar. The decline in dollar value of many foreign currencies makes Miami relatively more expensive for potential foreign buyers. However, many foreign economies are tumultuous for a broad variety of reasons, pushing foreigners to the United States.

“The instability in these markets is driving people to the United States,” said Jay P. Parker, CEO of Douglas Elliman Real Estate Florida LLC.

However, in comparison to other world class, developing cities like Miami, Miami is relatively inexpensive.

“The smart money always goes to safety, stability and security,” Birdman said. Real estate prices in New York have “gotten very top heavy … Miami clearly is the best value.”

Clearly, Miami has a lot going for it. As a city that is now offering so much more than just beautiful beaches, the real estate opportunities to come are bountiful. Reach out to us at RE/MAX Paradise to experience this happening city.

0 Solar Energy Program coming to Florida

Posted on October 1, 2015 by Sean Greco

On Tuesday, Renew Financial of Oakland, California announced that that it bought a smaller partner in Florida in order to fund energy upgrades.

Renew Financial is a “leader” in energy upgrades according to The Sun Sentinel, and it purchased Florida’s EcoCity Partners, which runs one of the state’s loan programs for Property Assessed Clean Energy, or PACE.

“We think we can replicate the great success we’re having in California very quickly in Florida,” Renew Financial CEO Cisco DeVries said by phone, to The Sun.

PACE is a unique program that gives loans that completely cover expenses associated with energy-saving improvements in both residential and commercial buildings. This includes solar panels, hurricane windows, and new air conditioning. Sometimes, the loans even pay for themselves when the improvements cover so much of an electricity bill.

PACE has funded about $1 billion in projects to date all over the country, and this includes more than $500 million in California last year. The Sunshine State has been slower to advance the program partly because of some concerns from the Florida Bankers Association.

Renew Financial’s deal also teams up with Demeter Power Group of West Palm Beach, a separate venture led by Michael Wallander, an EcoCity principal who will be leaving EcoCity. This venue recently unveiled “PACE-lease” aimed at small and mid-sized businesses.

Devries said that Renew Financial already has a partnership with California’s publicly traded SolarCity, a panel installer that targets PACE funding for small- and mid-sized businesses.

“The company is in a very aggressive growth phase,” DeVries said of his business, which employs about 150 people. EcoCity offered a “seamless” acquisition because of its common model and existing partnership. “Florida, we think, is a really exciting market.

With a new solar energy program coming to Florida, our homes will continue to be energy friendly, green, and not only better for our world, but also cost efficient. Check out out our amazing properties in Florida’s most happening city, Miami, where over $23 million in PACE programs have been started since mid-2013!

0 Rising rent brings 2025 increase in households where rent takes 50% of the income

Posted on September 24, 2015 by Sean Greco

rising rent trend

Many families today in the United States spend a huge amount of their income paying for housing. The number of households spending nearly half of their income on rent is expected to rise greatly in the next 10 years.

According to new research by Harvard University’s Joint Center for Housing Studies (JCHS) and Enterprise Community Partners Inc. (Enterprise), the number of households spending 50% of their income on rent is expected to increase by 11% by 2025. This means the 11.8 million households currently using half of their income on rent will be joined by another 1.3 million for a total of 13.1 million.

The study shows an increase in the affordable housing crisis in the US. The largest increases in this issue are expected among older Americans, Hispanic households, and single-person households.

According to Florida Realtors, the study showed that even with positive changes in income trends and rent trends, other demographic forces like the rapid growth of minority and senior populations, the trend of rising rent will continue.

“Our analysis shows that even in the unlikely event that income growth greatly outpaces rent gains, the number of severely cost-burdened renters will remain near current record levels,” says Christopher Herbert, managing director of Harvard’s Joint Center for Housing Studies. “Given these data, it is critical for policymakers at all levels of government to prioritize the preservation and development of affordable rental housing as there are simply not enough quality, affordable rental units to provide housing for the millions of households paying over half their income in rental costs.”

The study also asserted that the US already has a big problem providing homes to low-income households.

“At last measure, 11.2 million extremely low-income households competed for 7.3 million homes affordable to them – a 3.9 million home shortfall,” say study authors. “Just over a quarter of eligible very low-income households received rental assistance, leaving 7.7 million unassisted very low-income renters with worst case housing needs in 2013,” according to HUD.

While right now is a great time to buy or sell a home, the economy and institutions surrounding real estate need to make changes to help out lower income households.

0 Thumbs down: Facebook dislike button may be on the way

Posted on September 21, 2015 by Sean Greco

Facebook dislike button on the horizon

For about six years, the some one and a half billion people that use Facebook have been able to show that they like a photo, post, or comment on the social media website by clicking a little thumbs up that ‘likes’ the post. Many people have exhibited a desire for a button to show disapproval, or a Facebook dislike button. Mark Zuckerberg, CEO and creator of Facebook announced that the website is close to unveiling a dislike button at a Q&A session at the company headquarters in California last Tuesday.

Zuckerberg said he had been hesitant to create a dislike button for fear of creating discontent on the site. However, a ‘like’ is not always appropriate, say, in the event of a death.

“It’s important to give people more options than just ‘like'” to help express empathy and sympathy, Zuckerberg said. “Not every moment is a good moment.”

According to an article by USAtoday.com, “what may happen is that Facebook unveils a “sympathize” button or a series of buttons that convey support or solidarity or express other similarly positive emotions. The giant social network encourages civil interactions among its 1.5 billion users.”

Facebook is trying to go about this change carefully as to not make the site full of negativity or disapproval between users.

“Some people have asked for a dislike button because they want to say, ‘That thing isn’t good.’ And that’s not something that we think is good for the world. So we’re not going to build that,” Zuckerberg said at the time.

A ‘sympathize’ button better represents what Facebook wants out of another choice besides ‘like’. The company does not want to discourage users from sharing freely, and does not want to create a sense of up-voting and down-voting as is seen on websites like Reddit.

A change like this could really alter the way the popular site is used- and potentially how real estate is marketed and advertised on social media. Only time will tell!

Check out all of our amazing properties available today, and don’t forget to like our Facebook page for updates on real estate in the Miami area!