Real Miami Beach: Keeping Current 2007-07

8/15/2019 Real Miami Beach: Keeping Current 2007-07

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www.realmiamibeach.com

Keeping You CurrentHelping our clients understand this crazy

market

June 2007


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4/20074/2007


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Somewhat confusing data?April

New home sales up 16%

Existing home sales down 2.6%

Remember:New home sales are reported on signing of thecontract. Existing sales are reported at closing. New

home sales are less than 15% of the total housingmarket and are not adjusted for cancellations.


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House Prices Slide as Property Glut Grows;Buyers Gain Bargaining Power In Busy Spring SellingSeason

Tighter credit and a growing glut of properties aredepressing an already weak U.S. housing market, wrecking

the industry's hopes for an early rebound.That leaves buyers in a strong position to negotiate forbargains during the spring home-shopping season, thebusiest time of the year for housing sales.

4/25/20074/25/2007
http://online.wsj.com/home


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A Closer Look Regionally

Here's what happened across the region with home sales:

Northeast: existing-home sales rose 1.2 percent to an annual pace of1.13 million units in the first quarter from the same period a year ago.The biggest gain in the region was in New Jersey, where sales rose

7.6 percent from the fourth quarter of 2006, followed by New Yorkstate, up 7.4 percent, and Massachusetts with a 3.9 percentincrease.

The median Northeastern resale single-family home price was$268,900 in the first quarter, down 2.5 percent from the first quarter

of 2006.

5/15/20075/15/2007
http://www.realtor.org/rmodaily.nsf


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Midwest: total existing-home sales fell 6.1 percent to a 1.49 million-unit annual level in the first quarter compared with a year earlier.The largest sales increase in the region was in Iowa, where sales

rose 8.2 percent from the fourth quarter of 2006, followed by NorthDakota, which rose 4.7 percent from a year ago, and Indiana, up 2.9percent.

The median existing single-family home price in the Midwest was$154,600, down 2.8 percent from the first quarter of 2006.

5/15/20075/15/2007


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South: total existing-home sales were at an annual rate of 2.51million units in the first quarter, down 7.3 percent from the first

quarter of 2006. After the District of Columbia, the next strongest

increase in the South was in Arkansas, up 8.8 percent from a yearago, followed by Kentucky, which rose 3.9 percent, and Texas, up2.7 percent.

The median existing single-family home price in the South was$177,800 in the first quarter, which is 0.6 percent below a year

earlier.

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West: the existing-home sales pace of 1.28 million units fell 11.9percent from the first quarter of 2006. After Wyoming, the best

performance in the region was in Colorado where sales rose 0.8

percent from a year earlier.The median existing single-family home price in the West was$336,200 in the first quarter, down 1.8 percent from a year ago.

5/15/20075/15/2007



Foreclosure continues to be aserious concern for many U.S.home owners.Indeed, according to a recent survey fromYahoo Real Estate and Harris Interactive,22 percent of home owners are at leastsomewhat concerned about the

possibility of foreclosure due to theirinability to meet monthly mortgagepayments.

4/23/20074/23/2007
http://www.dj.com/HomePage.htm



More than 430,000 U.S. foreclosure filings werereported in the first three months of 2007.

RealtyTrac estimates that more than half of thefirst-quarter foreclosure activity was fromsubprime loans. However, its not just low-endhomes that are affected, said James J. Saccacio,

CEO.Were seeing a rising percentage offoreclosures with an estimated market valueof more than $750,000.

4/23/20074/23/2007

Foreclosed
http://www.realtytrac.com/?a=b&accnt=64807



State

1. California

2. Florida

3. Texas

4. Michigan

5. Ohio

6. Georgia

7. Illinois

8. Colorado

9. New Jersey

10.

States with the most foreclosures

5/1/20075/1/2007

New York
http://www.realtytrac.com/?a=b&accnt=64807



The Center for Responsible Lending estimates that2.2 million American households have lost or will losetheir homes as monthly payments rise on high-riskmortgages in the next few years.

5/15/20075/15/2007



Housing Still a Drag on EconomyThrough 2007

A survey of 48 economists conducted bythe National Association for BusinessEconomics also concluded that housingmarket troubles will last through the end

of the year.

5/21/20075/21/2007



Stocks vs. real estateA new study by Jack Clark Francis, a finance andeconomics professor at Baruch College in New YorkCity, and Yale's Roger G. Ibbotson compared theannual returns of real estate from 1978 to 2004compared with those of stocks.The results?

4/20/20074/20/2007

Investment Return

Housing 8.6%

Commercial Property 9.5%

The S&P 13.4%
http://money.cnn.com/



http://www.realtor.org/research.nsf/pages/presentations_use

5/20075/2007



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The supply of houses andcondominiums available forsale continues to growquickly in much of the U.S.,reflecting weak sales. Thenumber of homes listed for

sale at the end of April wasup seven percent fromMarch, according to datacompiled by ZipRealty Inc.
http://www.ziprealty.com/



The increase was above the seasonal norm. Over the past 22years, home inventories nationwide have increased anaverage of 4.5 percent in April from March, according toCredit Suisse Group. Spring is the busiest time of year forhome shopping, as families with children try to get settled

ahead of the next school year.

5/15/20075/15/2007
http://www.ziprealty.com/



Most Overpriced MarketsSan Diego

MiamiSacramento, Calif.

San FranciscoWashington, D.C.

HonoluluNew JerseyLos Angeles

Boston

San Jose, Calif.

5/1/20075/1/2007



5/8/20075/8/2007



4/25/20074/25/2007
http://online.wsj.com/home



May 2007May 2007

Falling...Nassau/Suffolk, New York

12-month forecast: - 6%Median home price: $483,000

Five year price change: 76.3%Worst one-year decline: 6.6%Year of worst decline: '88-'89
http://money.cnn.com/magazines/moneymag/moneymag_archive/2007/05/01/toc.html



Area Average SP % Depreciation

Fort Lauderdale $325,000 -5.5%

Phoenix $271,000 -5.5%

Nassau/Suffolk $483,000 -6.0%Miami $335,000 -8.8%

Las Vegas $325,000 -8.8%

http://money.cnn.com/2007/04/09/real_estate/forecast.moneymag/index.htm
http://money.cnn.com/http://money.cnn.com/magazines/moneymag/moneymag_archive/2007/05/01/toc.htmlhttp://money.cnn.com/http://money.cnn.com/http://money.cnn.com/


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How do we differentiate ourselves?

The agent who knows allthe numbers, and can

explain them, will be seenas the professional.

I hope July will bring betternews ! Happy 4th , Madeleine

Real Miami Beach: Keeping Current 2007-07

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