Real Estate NewsLetters Archive

APRIL

WHAT IS GOING ON IN THE REAL ESTATE MARKET? Two years! Can you believe it? This month we are exactly 2 years into the home price boom that started during the pandemic. A real correction might not happen this year nationally, however, multiple regional markets might see a price drop soon, say the industry professionals. Overheating the market can’t last too long. In fact, home prices can’t surpass income growth endlessly. Besides, a handful of cities are soon to become more affordable! The top three with the highest chance of price correction are Lake Havasu City, Arizona, Worcester, Massachusetts, and Prescott, Arizona. Sure thing, Florida isn’t on this list! The mortgage rates boiling up again are the main reason why some markets are eventually at risk. Last month, the average 30-year mortgage rate climbed to 3,92%. But in Miami everyone pays cash. To give you an idea I had 14 sales this year and only 2 were with a mortgage. Buyers are still bidding up the prices due to the limited supply on the market. The minimum price increase for the country could be up to 3,8%, some real estate specialists even say it could reach 17,3% within this year! For those wondering if they should buy or wait right now, remember one thing, if you have the financial resources to do so, then why not? Enjoy a beautiful "pied a terre". SURFSIDE: THE AFTERMATH Almost a year already since the tragic event of The Champlain Tower happened. Surfside residents still have it in mind as well as any Miamian. One thing we know: the event could make condo financing arduous. In fact, if you live or bought in a condominium, it would be a lie to say the collapse didn’t cross your mind when buying your unit. Due to the recent tragedy, it will be more difficult to get financed by lenders, as a result of the new regulations imposed by the government-sponsored enterprises. Considering what happened, Fannie and Freddie have put in place new rules. The latter includes questions, about special assessments and other things that need to be answered by the condo association. In order to buy a property, these requirements are mandatory. As a matter of fact, this new process is here to protect lenders and investors from losing their money due to some identical catastrophe. As of today, conflicts have arisen between numerous condo associations and lenders throughout Florida. In short, the condo managements find it time consuming to reply to all these new queries. Even though they are willing to provide the documentation, the remaining question is who’s paying our time? All of this extra paperwork to be produced could have a cost, between $200 and $500. Unfortunately, the other issue is that it seems the boards and management often don’t have the answers and the lenders aren’t willing to give the loan if these questions aren’t answered. The buyers will most likely be responsible for the price of all the documentation, which is just another fee to be paid when buying a property. It’s becoming very complex and obviously benefits cash buyers. As of March 1st, 40% of the unsuitable properties on Fannie’s list were in Florida! Well, not all of them were indexed as ineligible due to these questionnaires. The average this year is 10% when it comes to condos that didn’t pass the test ad might end up on Fannie’s “blacklist”. Most buildings will eventually come through with the adequate and necessary repairs and be cleared from this list shortly. But let’s be clear, a fair amount is on the edge with dangerous hazards and alerting structural issues that should be a major concern for these very condo associations. NEW CONDO ALERT! E11EVEN RESIDENCES IS COMING TO TOWN

Located in Downtown Miami, in the middle of it all, E11EVEN RESIDENCES will make every fantasy come true. The new construction will be the absolute dream for its residents. E11EVEN evaluated the need, and gather the best architects and designers to meet the resident