Real Estate Today

If I could offer one piece of advise to anyone selling a home right now, it would be this: Don't dwell on the past. Let it go.

It's no secret that the real estate market has taken a substantial hit in the last year-and-a-half. But it's not necessarily a bad thing.

It' s more of a normal market now, as opposed to a market that was off the charts in appreciation when the local and national real estate market peaked in the spring of 2005. Sellers can no longer name their price and expect multiple offers with a fast closing. You'd be lucky if you get one offer let alone two.

The market has dipped, but is far from crashing and I don't expect it to. Today, assuming you have put a good effort in marketing the property it would take 60-90 days to sell as opposed to 15-30 days during the hey days of real estate. That trend is supported by the MLS data.

The key to moving a house as soon as possible in this soft market is establishing a reasonable price. Sellers should compare their homes with those similar to theirs that have sold in the last two or three months, not those of one or two years ago.

As an example you can't say Gee, my neighbor sold his house down the street a year ago for one million dollars, I should get 1.3 million for my house now. That won't happen, you're probably going to sell it for $950,000.

The recent drop in the market is not a bad thing, but rather an inevitable turn for a market of inflated values. This is a much more normal market and one that compares well with historical trends. Ten years ago six to nine months was the norm for days on the market. Where not there now. As long as sellers are willing to be reasonable and patient, they will be able to sell their homes.

For professional advise on all aspects of buying or selling real estate, please contact me at-786-287-9272 -email:Richard@RichardRecuset.com

Richard Recuset-Multi-Million Dollar Producer-The Recuset Group

Know the facts

Even though sales volume began to sputter in 2006, price appreciation contunues in Coral Gables.


In N. Coral Gables (33134 zip code) 2006, Single Family Home median price was $580,000 - +16% from 2005.

2006 Condos, $327,000 - +1% from 2005

In S. Gables (33146 zip code) 2006, Single Family Home median price was $875,000, +17% from 2005.

2006 Condos, $358,000 - +37% from 2005 (WOW!!)


For professional advise on all aspects of buying or selling real estate, please contact me at-786-287-9272 -email:Richard@RichardRecuset.com

Richard Recuset-Multi-Million Dollar Producer-The Recuset Group

The Good News

It's true that home values in S. Florida are widely expected to head south for the next year or two (with the exception of Coral Gables), but that doesn't mean that buying in Miami would be a bad investment. The days of warp speed house flipping may be over, but in the long run Miami real estate is expected to continue appreciating thanks to a shortage of land(remember, we live in a peninsula), population growth and employment gains.

National and international factors also bode well for the area, including historically low mortgage rates and a weak dollar, which makes real estate in the U.S. more attractive for Europeans, especially once south and central American vacation home prices increase. That will push the German and British vacation-home buyers to think about Florida destination as purchase location.

Then there's the X factor. In Miami, we're always one good Latin American crisis away from a housing boom, and the way things are looking (Cuba, Venezuela), that might just happen sooner than later.


For professional advise on all aspects of buying or selling real estate, please contact me at-786-287-9272 -email:Richard@RichardRecuset.com

Richard Recuset-Multi-Million Dollar Producer-The Recuset Group

Bargain Hunters On Your Mark.....

According to http://www.realtytrac.com/ the foreclosure rate in Miami jumped 97% from the second to the third quarter of 2006.That would be 1 foreclosure per every 91 households.

Back when the going was good foreclosures were hard to come by because people could just refinance or sell before the lender could take it over. The problem now is that there are fewer buyers and a lot of high leverage mortgages out, resulting in an increase in distressed residential real estate.

These distressed properties typically sell at a discount relative to the general market. And as inventories rise, the discounts also rise, according to a study by First American Real Estate Solutions.

Distressed homes during the first half of 2006 sold at a 14 percent discount to their estimated market value. Two years ago the discount on those properties was 12.5 percent.

If foreclosure is staring you in the face, refinance if you can or sell and cut your losses (Chalk it up to the price of doing business.)

For those looking for bargains in Coral Gables, sorry, don't get your hopes too high. This market is very independent of other surrounding markets. Foreclosures do exist like in any other market but are rare. So when you read reports of Florida and Miami, it does not include Coral Gables unless specifically broken down so.

Coral Gables bargain real estate most likely wont be advertised but I can lead you to them.

For professional advise on all aspects of buying or selling real estate, please contact me at-786-287-9272 -email:Richard@RichardRecuset.com

Richard Recuset-Multi-Million Dollar Producer-The Recuset Group

Overvalued Markets

An interesting article (Most overvalued housing markets) identifies the state of Florida as the clear winner with 15 different markets, and yes, Miami made the list with Naples, Fl as the number 1 most overvalued of all.

A great source for those thinking about making a move. The list also includes markets that are undervalued and markets that are just right.

Enjoy!


Richard Recuset - Multi-Million Dollar Producer-The Recuset Group - 786-287-9272 - email:Richard@RichardRecuset.com

Gables Market Numbers

From 10/05 - 12/06

BLUE=For SALE RED=SOLD

In the $750,000 + price range (about 95% of the Coral Gables market), there sits an average of about 300 homes (since April of 2006) on the market at this time, and only about 20 homes a month on average are selling. This is a staggering number!

Roughly 93% of homes on the market are not selling, or at least not selling any time soon. And with all the condo's being built or coming on line this year and the next, it'll be interesting to see how it all develops. Stay tuned!

Really, all this means is that if you are seriuos about selling your home, it has to be agressively advertised (an ad in the paper and a yard sign won't cut it), and above all, it has to be priced right.

Stay tuned for more, I'll be breaking the numbers down into different segments.


Richard Recuset - Multi-Million Dollar Producer-The Recuset Group - 786-287-9272 - email:Richard@RichardRecuset.com

2007 Top 25 Luxury Markets

We're number even the Unique Homes top 25 Markets to watch list in 2007. The list is designed to provide trend indicators for the luxury home market industry.

1 Annapolis, Md.

2 Asheville, N.C.

3 Aspen, Colo.

4 Atlanta, Ga.

5 Austin, Texas

6 Bellevue/Medina, Wash.

7 Beverly Hills, Calif.

8 Idaho

9 Jupiter, Fla.

10 Manhattan

11 Miami, Fla.

12 Nashville, Tenn.

13 Newport, R.I.

14 Palo Alto, Calif.

15 Panama

16 Philadelphia, Pa.

17 Provence, France

18 Puerto Vallarta, Mexico

19 San Antonio, Texas

20 San Diego, Calif.

21 Sanibel Captiva, Fla.

22 Savannah, Ga.

23 Sedona, Ariz.

24 St. Thomas, U. S. Virgin Islands

25 Woodstock, Vt.

Richard Recuset - Multi-Million Dollar Producer-The Recuset Group - 786-287-9272 - email:mailto:wwwrichard@richardrecuset.com

Foreclosure is not the only way

I have a friend of a friend who just wants to walk away from his investment. Waited to long to do anything about it and now is running out of options. Many people have made their fortune through foreclosure sales. And the numbers are rising at this time.But foreclosure is only one of several ways homeowners or investors can lose property. Here are six different ways to lose your home.

• Behind in Mortgage Payments. Generally, quit paying your mortgage and you’ll end up getting past due notices, followed by foreclosure proceedings notices and then a visit from the sheriff’s office to help you remove all your property from the household. The increase in foreclosures comes as no surprise. An increase in delinquencies is due to a number of factors: the seasoning of the loan portfolio, the increased shares of the portfolio that are ARMs and sub-prime mortgages, as well as the elevated level of energy prices, rising interest rates, rising property taxes and insurance rates.

• The taxman cometh. For homeowners who pay their own taxes — that is, they are not paid through a mortgage service provider — a tax sale could be in their future if they fail to pay taxes on the property. Although most tax sales are through local governments, state and federal revenue agencies can confiscate real estate for not paying taxes. If this happens, it’s not as simple as just paying the back taxes and getting your property back. For some, it includes also paying penalties and interest. It can amount to a lot of money.

• Bankruptcy. Bankruptcy laws have changed. In the past, filing bankruptcy usually gave the homeowner some protection from losing his home to creditors. With the revamped bankruptcy laws passed in 2005, creditors might now have the upper hand now. New law allows for 180 days for the consumer to work out payment plans with the creditor, it does not stop the foreclosure process, which could be a shorter period of time than the payment workout plan.

• Fail to pay other debts besides mortgage. Unless you live in Florida and have a home exemption, creditors can come after you, they are in business for one thing — to make money. Consumers pay interest and fees when they borrow. If the consumer fails to pay off those loans, creditors can go after assets to satisfy the debts. Your house could be one of those assets.

• Fail to pay homeowners’ association fees.If you get into an argument with your homeowners’ association (HOA), withholding the homeowners’ fees paid each month should not be one of your strategies. HOAs can also auction your house to satisfy past-due HOA fees.

• Take part in illegal activity. The American Civil Liberties Union contends that 80 percent of homeowners who have had property forfeited by the federal, state or local government have never been convicted of a crime. To seize property for illicit activity, law enforcement officials only need to have probable cause that the homeowner either used the property in committing a crime or purchased the house through illegally obtained funds.

If you are feeling the pressure of not being able to hold on to your investment, one thing you should’nt do is bury your head in sand. Focus on your options and take action. You can check out more information through my website http://www.richardrecuset.com/ or Call or email me for further consultation.

You go, girl!

This report from the Joint Center for Housing Studies at Harvard University.

Woman account for 20% of all potential home buyers, are42 years old and prefer two-bedroom homes. And they are the fastest-growing segment of the home buying market. For more information, go to: www.snipurl.com/xqwl.

How's the Market.

As you can imagine, I get this question a lot. From news reporters to the person on the other side of the gas pump as I gas up. And the answer could be an elaborate one or a simple sentence- it's hot or it's very slow, either way, it doesn't really matter.

Keep in mind that an agent or investor does not have to be affected by his/her marketplace. I come across agents (especially at this time in our slow market) tell me the market is very slow, meanwhile, I am doing better than ever. Essentially "their" market is very slow. Yes, real estate trends predict what the large population is doing as far as buying or selling, but the agents themselves decide how "their" market is.

Real estate trends in my area is that sales numbers are low and inventory is high (slow market). So instead of focusing on how hard it is to sell homes, I refocused my plan and became my own best realtor, because I said so. That's why!
Most investors and agents are sitting on the sidelines trying to wait the market until the market is great again before they begin reinvesting in real estate. Prices in general are dictated by supply and demand. When the markets great supply is low and demand is high. When the market is bad supply is high and demand is low.

The problem that I see with trying to wait out the market is that when the market is good you can sell for higher, but you pay more because there is more demand. When the market is low, you pay far less and sell for far less. Many times the two can cancel each other out. Best case scenario you buy when its low and sell when its high, and rent your places out in between. Just a thought.