Singer Island, Florida – Market Update: November 2011

Singer Island, Florida

As we approach the end of 2011, it is a good time to reflect back over the last 11 months to see how well the condo market on Singer Island has been. Looking at condo sales on the island since the market down turn in late 2006; one can see a continual improvement from year to year with 2011 being the best year for sales since 2004. The obvious difference between then and now is the decrease in unit price.

The monthly cost of owning a home is more affordable now than in the past 15 years, and is less expensive than renting in numerous cities, according to The Wall Street Journal’s third-quarter survey.

Low home prices mixed with low mortgage rates – hovering at 4 percent or lower – create an appealing buyer’s market, analysts say. For example, buyers today have a 77 percent increase in their borrowing power compared to 1991, according to Dan Green, a loan officer with Waterstone Mortgage in Cincinnati. He says that in 1991 a $1,700 mortgage payment allowed a borrower to take out a $200,000 mortgage; today, at current interest rates, the homebuyer can get a $350,000 loan for that same monthly mortgage payment.

In 12 out of 28 cities tracked by The Wall Street Journal, monthly mortgage payments on a median-priced home – including taxes and insurance – were lower than the average rent levels.

Nationwide, apartment rents are expected to rise by about 4 percent this year, which may make the owning vs. renting picture tilt even higher, according to some analysts. 

Despite the appealing housing picture for homebuyers, some continue to stay on the sidelines, unable to sell their current home, qualify for a mortgage due to the tighter credit requirements or keep a steady job, housing experts say.

 As we mentioned in our last update, Walker Real Estate Group, LLC is now an independent real estate company!  Our office is conveniently located at City Center on PGA and US 1.  Our mailing address is: 2000 PGA Blvd., Suite A-3130, Palm Beach Gardens, FL 33408.  Tel: 561.328.7536 – Fax: 561.328.7537

In other island news, the new Publix Supermarket on the west end of the Blue Heron Bridge is now open, and is very convenient to the island.  Road work along N. Ocean Drive is progressing with curbs, gutters and sidewalks being poured along the east side of the road south of Ocean Reef Park. Median islands have been constructed on N. Ocean Drive north of the fire house. We hope to have work complete by early summer.

Our market update (click on tab at the top of page) provides detailed information regarding condos currently listed, pending and sold on Singer Island including recent price reductions, new
listings and homes that have come back on the market.

Enjoy this information prepared just for you!

CALL us today for a free confidential meeting to discuss your real estate needs!

For more information on specific condominium sales activity contact Jeannie at 561-889-6734 or email her at Jeannie@JWalkerGroup.com.

Singer Island, Florida – Market Update: October 2011

Singer Island, Florida

We have finally done it!! Walker Real Estate Group, LLC is now an independent real estate company!  Our office is conveniently located at City Center on PGA and US 1.  Our mailing address is: 2000 PGA Blvd., Suite A3130, Palm Beach Gardens, FL 33408. Tel: 561.328.7536 – Fax: 561.328.7537

Here we are only weeks away from Thanksgiving and the beginning of the Holiday season. Condominium sales for October were respectable with seven units being sold.

Aquarius 1504	$210,000	$145/SF
Connemara 1406	$320,000	$220/SF
**Martinique WT1404	$500,000	$249/SF
**Oasis 11B	$1,550,000	$381/SF
**The Resort 653	$800,000	$255/SF
The Resort 753	$1,000,000	$319/SF
The Resort 952	$1,300,000	$422/SF
Tiara 7G	$217,000	$202/SF

** Sold by the Walker Real Estate Group

Although not a major impact to Singer Island, foreclosures are still affecting our property values.  More than half of Florida homeowners in foreclosure have not made a mortgage payment in two years or more. That’s higher than the national average. 

A new report from Jacksonville-based LPS Applied Analytics found that as of September, 56 percent of Florida’s mortgages in foreclosure are 24 months or more behind in payments, compared with 39 percent nationwide; and last January (2010) when just 19 percent of Florida’s foreclosures were 24 months or more delinquent.  About 84 percent of Florida foreclosures are more than 18 months in arrears.  Foreclosures are taking about 2 years to process.

Herb Blecher, LPS Senior Vice President, said the longer delinquency rates are more evidence of a foreclosure bottleneck that could hinder a housing recovery.

To help alleviate the inventory of “underwater” homes and stabilize market values banks have implemented a new program to pay borrowers to execute a short sale.  Last month, Bank of America quietly began a Florida-only campaign that gives homeowners up to $20,000 for a short sale rather than letting their homes linger.  Wells Fargo and J.P. Morgan Chase have similar short-sale programs.

Even with the average rate for the 30-year mortgage hovering around 4%, successfully closing a mortgage backed sale remains extremely challenging.  The National Association of Realtors reports that one out of six agents had signed contracts canceled in June, and cancellations rose 10 percent during the year-over-year period ended in August.

Experts say there is a lot of uncertainty surrounding the lending process, especially with more sellers owing more than their home is worth and lenders requiring them to make up any difference at settlement.

The Walker Real Estate Group helps move transactions forward by educating our buyers and sellers about changing market conditions and understanding their needs, motivations, fears and aspirations. We emphasize flexibility and creativity, laying out alternatives to help our clients meet their goals; and remain sensitive to their concerns. The Walker Real Estate Group has a team of certified distressed property experts (CDPE) and certified negotiation experts (CNE) to help homeowners who find themselves in this difficult situation.

New Publix Supermarket

In other island news, the new Publix Supermarket on the west end of the Blue Heron Bridge will have its grand opening on November 10, 2011.

Our market update (click on tab at
top of page) provides detailed information regarding condos currently listed,
pending and sold on Singer Island including recent price reductions, new
listings and homes that have come back on the market.

Enjoy this information prepared just for you! 

CALL us today for a free confidential meeting to discuss your real estate needs!

For more information on specific condominium sales activity contact Jeannie at 561-889-6734 or email her at Jeannie@JWalkerGroup.com.

Singer Island, Florida: 30-Year Fixed Mortgage Rate Falls Below 4%

Singer Island, Florida

There are 240 condos for resale on Singer Island; 6 condos are currently pending. Only one condo sold within the past 7 days at 81% of list price after 135 days on the market.

The average rate for the 30-yr. fixed mortgage fell to a historic low. The rate decreased to 3.92 percent this week from 4.01%. Last year at this time, the 30-year fixed-rate mortgage averaged 4.27 percent.

The average 15-year fixed mortgage rate also fell to a new low at 3.26%. That’s the lowest on records dating to 1991 and likely the lowest ever, according to economists.

“Interest rates are obviously not an impediment to housing. It’s uncertainty about the economy, about jobs, about incomes,” said Mark Vitner, senior economist at Wells Fargo. “It’s not a question of affordability. It’s simply a lack of wherewithal to buy a home or a lack of confidence to commit to buying one.”

Many people are reluctant to take the risk in this market. High unemployment, scant pay raises and heavy debt loads are deterring many would-be buyers.

Others can’t qualify for the historically low rates. Banks are insisting on higher credit scores. And many want first-time buyers to put down 20 percent. Few people have that much cash or home equity to satisfy the requirement.

“Considering how far mortgage rates have fallen, we’d expect to see more people refinancing and buying,” said Celia Chen, director of housing economics at Moody’s Analytics. “It’s still the lack of jobs and the difficult credit environment that’s pushing most people away.”

The majority (54%) of mortgage industry experts polled by Bankrate.com expect rates to increase over the next 30 to 45 days; 15 percent predicting rates will decrease, and the remaining 31 percent saying rates will remain relatively unchanged.

For more information on specific condominium sales activity contact Jeannie at 561-889-6734 or email her at Jeannie@JWalkerGroup.com.

Singer Island, Florida – Market Update: September 2011

Ritz Carlton Singer Island

The first sighting of car carriers from the north has arrived on Singer Island. It is less than three months until we are full blown in the midst of “Season”.

Rick Sharga, an executive vice president with Carrington Mortgage Holdings, said “The U.S. housing market will hit bottom this year and remain flat until 2014, when it will start to slowly recover.” We are bumping along the bottom like “catfish” said Sharga. It will take some time to revive.

Since 2005, there’s only been one quarter in which U.S. banks have sold more properties than they’ve taken back through foreclosure, leaving a huge overhang of real estate-owned assets that need to be cleared out. 

The real estate market on Singer Island seems to be steady in the $500K and below condo market. There are foreclosures, however, not at the pace of the national average.  Prices continued to decline through the third quarter and it would seem our condo market is bumping along the bottom as well.

To re-cap the first 9 months of 2011:

• Condos on Singer Island increased 58% over the same period in 2010; selling 145 units verse 92.
• The list-to-sold price ratio was more favorable at 89% verse 87% last year at this time.
• Twenty-eight short sales (20 at The Resort) accounts for 19% of the sales activity in 2011.
• Price per square foot of the older condos (built 1969-1989) decreased to $212 compared to $220/SF this time last year.
• Price per square foot of the newer condos (built 2003-2008) decreased as well to $322 compared to $337/SF last year.
• Three quarter (75%) of the units sold during this period were under $500K.
• With all the activity in the condo/hotel units at The Resort this year, only eight resort units are available to purchase, with no short sales.

Construction continues on the beautification of N. Ocean Drive. Curbing and drainage work is now underway along the east side of the street between the Ritz and Cote D’Azur. Erection of street lamps has started on the west side of the road from Cote D’Azur south. The road has been re-surfaced with a primary coat of asphalt from Water Glades south to Beach Front. The foundation for bike lanes has been added to this area as well. Completion is anticipated for the spring of 2012.

The Little Blue Heron Bridge is complete; as well as, re-surfacing of the road from the bridge north to the Ritz Carlton.  Work on the new Publix Supermarket is nearing completion with a scheduled opening by the end of October.

At the Ocean Mall, Subway has relocated to its new building and several new shops have been added including The Wing Flyer Store, New York Bagel Café & Deli, and POPS-Costa Rica’s Creamery.

Our market update (click on tab at top of page) provides detailed information regarding condos currently listed, pending and sold on Singer Island including recent price reductions, new listings and homes that have come back on the market.

Enjoy this information prepared just for you!

CALL us today if you are thinking about selling or buying!

For more information on specific condominium sales activity contact Jeannie at 561-889-6734 or email her at Jeannie@JWalkerGroup.com.

Singer Island, Florida – Weekly Condo Market Update: September 9, 2011

Singer Island, Florida

There are 237 condos for resale on Singer Island; 9 condos are currently pending. Only two condos sold within the past 7 days at an average 93% of list price after an average 50 days on the market.

The average rate for the 30-yr. fixed mortgage fell to its lowest level in six decades. The rate decreased to 4.12 percent this week from 4.22%.  Last year at this time, the 30-year fixed-rate mortgage averaged 4.35 percent.

The average 15-year fixed mortgage rate also fell to a new low at 3.33% down from 3.39% last week.  That’s the lowest on records dating to 1991 and likely the lowest ever, according to economists.

Record-low mortgage rates have done little to energize the depressed housing market.  Over the past year, the average rate on the 30-year fixed mortgage has been below 5 percent for all but two weeks. That compares with five years ago, when the average 30-year fixed rate was near 6.5 percent.  Yet sales of new homes are on pace to finish the year as the lowest on records dating back a half-century. The pace of re-sales is shaping up to be the worst in 14 years.

Many Americans are in no position to buy. High unemployment, scant wage gains and large debt loads have kept them away.  Others can’t qualify for the lowest rates. Banks are insisting on higher credit scores and 20 percent down-payment for first-time buyers. Many repeat buyers have too little equity invested in their homes to meet loan requirements.

“Low rates are great, but the real issue is that the pool of people who can get a loan or refinance is small,” said Greg McBride, Bankrate.com’s senior financial analyst.”

Roughly 40 percent of U.S. households have the necessary credit scores above 700 to get a prime mortgage rate, according to an Associated Press analysis of Fair Isaac Corp., or FICO, data.  A bigger issue is just half of Americans say they’ll ever be able to save enough money for any type of down-payment, let alone one as high as 20 percent, according to a survey by the National Foundation for Credit Counseling.  Nearly a third of homeowners have nearly zero equity or are underwater in their mortgage, according to the real estate research firm CoreLogic. That leaves then unable to refinance because of lender-imposed   limits and the cost of extra fees.

Increased refinancing activity isn’t providing much economic benefit. Without much equity, few are drawing money out for home-improvement projects or other big expenditures.

Mortgage industry experts polled by Bankrate.com are evenly split on what to expect over the next 30 to 45 days; with 31 percent predicting rates will increase, 31% thinking rates will go lower, and the remaining 38 percent saying rates will remain relatively unchanged.

For more information on specific condominium sales activity contact Jeannie at 561-889-6734 or email her at Jeannie@JWalkerGroup.com.

Singer Island, Florida – Market Update – August 2011

Ritz Carlton Singer Island

It is believed that Real Estate in general is in a “holding” pattern.  Given the current economic news and jobs reports, many professionals and sellers are looking for signs that the market will somehow improve.  Pending homes sales declined in July by 1.3 percent from the prior month.  There are experts that blame the stall on the continued mortgage muddle.

Lawrence Yun, National Association of Realtors chief economist said, “Sales activity is underperforming. The market can easily move into a healthy expansion if mortgage underwriting standards return to normalcy.  We also need to be mindful that not all sales contracts are leading to closed existing-home sales.  Other market frictions need to be addressed, such as assuring that proper comparables are used in appraisal valuations, and stream lining the short sales process.”  He continued, “It is not a question of lending standard and consumers having the necessary confidence to enter the market.” 

It is not just residential real estate that is in limbo.  Commercial real estate vacancy rates are also flat, due in part to weak job growth.

Condominiums priced under $500,000 remain very strong.  The rentals this year have been at an all time high as people, skeptical of the market are choosing to rent instead of purchasing.  Likewise, many owners who have been forced from their homes by foreclosure are renting as an alternative.

Our market update (click on tab at top of page) provides detailed information regarding condos currently listed, pending and sold on Singer Island including recent price reductions, new listings and homes that have come back on the market. 

Enjoy this information prepared just for you!  

CALL us today if you are thinking about selling or buying!

 For more information on specific condominium sales activity contact Jeannie at 561-889-6734 or email her at Jeannie@JWalkerGroup.com.

Singer Island, Florida – Weekly Condo Market Update: 08/19/2011

Singer Island, Florida

There are 250 condos for resale on Singer Island; 7 condos are currently pending. Four condos sold within the past 7 days at an average 71% of list price after an average 559 days on the market.

The average rate for the 30-yr. fixed mortgage fell to its lowest level on records dating back to 1971.  The rate decreased to 4.15 percent this week from 4.32%; its previous low was 4.17% reached in November 2010.

The average 15-year fixed mortgage rate also fell to a new low at 3.36% down from 3.50% last week.  Last year at this time, the 30-year fixed-rate mortgage averaged 4.42 percent.

Few expect record-low rates to energize the depressed home market. Over the past year, the average rate on the 30-year fixed mortgage has been below 5 percent for all but two weeks. Yet prices and sales remain unhealthy and are holding back the overall economy.

Five years ago, the average 30-year fixed rate was near 6.5 percent. In 2000, it exceeded 8 percent.

Most homeowners are paying rates more than a full percentage point higher than the current average. The average rate on all outstanding mortgages is 5.3 percent, Freddie Mac said, citing data from the Bureau of Economic Analysis.

After previous recessions, housing accounted for 15 percent to 20 percent of overall economic growth. This time, in 2009 and 2010, housing contributed just 4 percent to the economy.

“The housing market is not going to turn around because of this, because it isn’t the mortgage rate that matters,” said Joel Naroff, head of Naroff Economic Advisors. Naroff blamed the “horrendous” process of qualifying for a mortgage despite tougher lending standards. He said trying to sell a home in many markets is just as difficult.

Many would-be buyers can’t take advantage of the low rates. The unemployment rate is 9.1 percent, few Americans are getting raises and many are struggling to shrink their debt loads.

Banks are also insisting on higher credit scores and larger downpayments for first-time buyers. Many repeat buyers have too little equity invested in their homes to qualify for loans. Others are too nervous about the economy or their job security to invest in a home.

Forty-seven percent of the mortgage industry experts polled by Bankrate.com expect the rates to remain steady over the next 30 to 45 days; while 33 percent predicting rates will increase and only 20% thinking rates will go lower.

For more information on specific condominium sales activity contact Jeannie at 561-889-6734 or email her at Jeannie@JWalkerGroup.com.

Singer Island Market Update: July 2011

Singer Island, Florida

Moving into the second half of 2011, The Walker Real Estate Group remains one of the top sales teams on Singer Island with over $20 million sold in the past 12 months.  “>The overall economic outlook for the next 12 months does little to instill confidence in the real estate market; and could push interest rates up.”>Demand for seasonal and annual rentals on Singer Island has shown a dramatic increase in the second quarter of 2011; signaling that potential buyers are looking to try before they buy.

From a positive standpoint, investing in well-priced real estate may be a better place for funds than the equity/bond markets.

To re-cap the first 7 months of 2011:

• Condo sales on Singer Island increased 72% over the same period in 2010; selling 117 units verse 68.
• The list-to-sold price ratio was more favorable at 90% verse 87% last year at this time.
• Nineteen short sales (13 at The Resort) accounts for 16% of the sales activity.
• Price per square foot of the older condos (built 1969-1989) decreased to $212 compared to $220/SF this time last year.
• Price per square foot of the newer condos (built 2003-2008) remained relatively constant at $331 compared to $333/SF last year.
• Almost three quarter (73%) of the units sold during this period were under $500K.
• With all the activity in the condo/hotel units at The Resort this year, only seven units are available to purchase, with no short sales.

Construction continues on the beautification of N. Ocean Drive. Curbing, sidewalks and drainage have been completed on the west side of the road. Work is now underway along the east side. All the street lamps have been erected along the west side of N. Ocean from Beach Front north to Water Glades. Completion is still anticipated for early 2012. The Little Blue Heron Bridge is getting its final touches and has turned out well. Work on the new Publix Supermarket continues with a scheduled opening by the end of October.

For more information on specific condominium sales activity contact Jeannie at 561-889-6734 or email her at Jeannie@JWalkerGroup.com.

Singer Island, Florida – Weekly Condo Market Update: 07/15/2011

Singer Island, Florida

There are 259 condos for resale on Singer Island; 6 condos are currently pending. Only one condo sold within the past 7 days at 44% of list price after 1183 days on the market.

Rates for the 30-yr. fixed mortgage decreased to 4.51 percent this week from 4.60%.

The average 15-year fixed mortgage rate also fell to 3.65% from 3.75% last week.

Last year at this time, the 30-year fixed-rate mortgage averaged 4.57 percent.

Low mortgage rates and depressed home values have done little to revive the struggling housing market. Many people can’t take advantage of the low rates because of tighter lending standards and higher downpayment requirements.  Lenders are cautious because the weak economy and high unemployment make it more likely that some borrowers will default.  Other potential homebuyers are holding off, concerned that housing prices will continue to fall.

Sixty-two percent of the mortgage industry experts polled by Bankrate.com expect the rates to remain steady over the next 30 to 45 days; while 23 percent predicting rates will increase and only 15% thinking rates will go lower.

For more information on specific condominium sales activity contact Jeannie at 561-889-6734 or email her at Jeannie@JWalkerGroup.com.

Singer Island, Florida – Weekly Condo Market Update: 07/08/2011

Singer Island, Florida

There are 258 condos for resale on Singer Island; 10 condos are currently pending. Only one condo sold within the past 7 days at 100% of list price after 58 days on the market.

Rates for the 30-yr. fixed mortgageincreased to 4.60 percent this week from 4.51%.

The average 15-year fixed mortgage rate also rose to 3.75% from 3.69% last week.

Last year at this time, the 30-year fixed-rate mortgage averaged 4.57 percent.

Low mortgage rates and plummeting home prices have done little to boost the
troubled housing market. Tougher lending standards and bigger downpayment
requirements have prevented many people from taking advantage of the ultra-low
rates. Many people who can qualify are holding off, worried that prices have yet
to bottom out.

Forty-seven percent of the mortgage industry experts polled by Bankrate.com expect the rates to remain steady over the next 30 to 45 days; while 18 percent predicting rates will increase and 35% thinking rates will go lower.

For more information on specific condominium sales activity contact Jeannie at 561-889-6734 or email her at Jeannie@JWalkerGroup.com.