Sold Homes

Below are some recent sales between El Cid and South of Southern.

343 Rilyn Dr.- Sold for $271,000 on 5/18/12.
218 N. Worth Ct.- Sold for $215,000 on 5/15/12.
135 Greenwood Dr.- Sold for $625,000 on 5/4/12.
3409 S. Flagler Dr.- Sold for $478,000 on 5/30/12.
3418 Washington Rd.- Sold for $350,000 on 5/9/12.
203 Conniston Rd.- Sold for $86,000 on 5/4/12.

Home Prices Increase in Major Cities

March data for the Standard & Poor's/Case-Shiller home price index, which tracks the changes in the prices of homes nationally and in 20 major metropolitan area, was released yesterday. Home prices increased in 12 of tho 20 cities, including Miami and Tampa. Prices dropped in Atlana, Chicago and Detriot. For the first quarter of 2012, the national composite, the 10-City Composite and the 20-City Composite were at new post-crisis lows.

The national composite decreased by 2.0% and was down 1.9% versus the first quarter of 2011. The 10- and 20-City Composites saw annual returns of -2.8% and -2.6%, respectively, in March 2012. Month-over-month, their changes were insignificant; average home prices in the 10-City Composite fell by 0.1% compared to February and the 20-City remained essentially the same.

Want Your Foreclosure Reviewed for Mistakes?

As part of the settlement between the banks and the governement for the banks' improper foreclosure proceedings, by April 30, 2012, 4.1 million people received letters from the Office of the Comptroller of the Currency inviting them to submit their foreclosure for review. An anemic 165,000 people did so, just 4 percent of the people who could do so. If errors are found, restitution can range from a few hundred dollars to over six figures.

Interested? Go to https://independentforeclosurereview.com/

Interest Rates

According to Fannie Mae last week, the average 30-year fixed rate mortgage is 3.79 percent. The 15-year fixed rate mortgage is 3.04 percent.

Interest Rates

According to Freddie Mac, average rates for 30-year and 15-year fixed rate mortgages reached record lows this week. The 30-year fixed rate fell to 3.84 percent and the 15-year fixed rate dropped to 3.07 percent.

What Should Buyers Consider?

In addition to the old real estate maxim of location, location, location, there are many other factors that buyers need to consider before making an offer on a home.

-Neighborhood zoning is very important. Buyers can go to a town's planning or urban development department to find out what projects might be upcoming in a neighborhood. Even if nothing is planned, being aware of the zoning could help buyers make educated guesses about what could happen in a neighborhood.

-Rules governing renovations. Before you buy anywhere you need to make sure you know what rules, if any, govern construction. For example, at Trump Plaza in West Palm Beach, construction is permitted only from May 15-Nov. 15. And don't be fooled into thinking that these rules would only affect a condo. Single family homes on Hobe Sound in Jupiter must adhere to the local restricitons on how many large trucks can drive onto the island in a day.

-Crime rate. Neighborhoods with lower crime rates can come with lower insurance rates as well. You might not realize it, but moving can increase or decrease your car insurance rates.

Sold Homes

Palm Beach
210 Eden Rd.- Sold for $3,100,000 on 5/4/12.

West Palm Beach
100 Alhambra Pl.- Sold for $350,000 on 5/4/12.

Have You Ever Seen This Before?

This home on Island Road in Palm Beach has been lifted off the ground and is now being held in the air by metal beams and wooden support beams. I am not sure what is being done to the home (perhaps reinforcing the foundation?) but I think the unusual site is worth sharing with my readers.

If any of my readers have interesting photos of homes they want to share, please send them in to me and I will post them on my blog.

Sold Homes

Palm Beach
261 List Rd.- Sold for $2,100,000 on 5/1/12.
1510 N. Lake Way- Sold for $912,500 on 5/1/12.
2273 Ibis Isle Rd.- Sold for $1,142,500 on 4/30/12.


West Palm Beach
234 Edmor Rd.- Sold for $537,500 on 4/30/12.

Buyers Facing Stiffer Competition

The Wall Street Journal is reporting that buyers are finding more competition than they expected for homes they like and, in some cases, bidding wars. The unanticipated level of competition for homes results from more buyers entering the market, historically low interest rates, more investors in the market buying up distressed properties in cash deals, and an artificial decline in inventory due to would-be sellers who want to sell but won't because they owe more on their property than it is worth.

I also believe that buyers have come to accept the state of the real estate market and are no longer as scared as they were a few years ago. They don't find the process of buying a foreclosed home or a short sale nearly as intimidating as it was a few years ago. This is our new reality and people are adjusting their behavior and expectations accordingly.

Florida's Shadow Inventory

According to Florida Realtors:

• Since the end of 2010, all distressed property listings and sales, except for single-family-home short sales, have declined.

• Average prices for distressed and normal property sales have begun to stabilize.
• Compared to total listings in the MLS, Florida’s highest percentage of distressed property are in the I-4 corridor and Southeast Florida; the lowest percentages occur in Northwest Florida.

• Florida’s shadow inventory was 550,000 units at the end of 2011, approximately a 9 percent decline from its peak in the first quarter of 2010.

• Currently, the flow of new seriously delinquent (90 days or more) loans moving into the shadow inventory is offset by the approximately comprable flow of distressed sales.
• The number of foreclosures and REOs was significantly lower in February of 2012 than one year earlier.