Home values likely won't rebound until mid-2010

Despite a spike in sales in South Florida, the area probably won't see a bottoming out of single-family home prices until mid-2010, says Brad Hunter, chief economist with West Palm Beach-based Metrostudy.
"Yes, there are more transactions occurring," he said. "The problem is really that the increased sales — that is predominantly short sales and distressed sales — it's not really a situation that's bullish for home prices."
Mr. Hunter joined Ron Shuffield, president of Esslinger-Wooten-Maxwell Realtors; Michael Y. Cannon, executive director, Integra Realty Resources; and Peter Zalewski, owner/broker of Condo Vultures Realty, at the State of Real Estate forum presented by the Greater Miami Chamber of Commerce on Friday.

Real Estate Trends in Miami

Hundreds Of Homes Hit The Auction Block

It was an opportunity for many who were there. "This is among the lowest prices we've seen," company representative Trent Ferris told CBS4 News Reporter Joan Murray. "You're bidding against other people. The price is set here at the auction."

The Quintela's had a little help navigating the unfamiliar real estate waters. Their friend and realtor Antonio Duarte was with them. He says he is not taking a commission even though the Quintela's wanted to give it to him.

"I don't want the commission. I'm adding it to the cost so the bank will make a decision in their favor. What they bid is below what the bank wants to sell it for," Duarate explained.

Admission to the auction was free but at check-in bidders are required to show a $5 thousand cashier's check or cash to verify that they are able to deposit the required earnest money if they are a winning bidder. A five percent buyer's premium is added to all winning bid amounts.

For Miami Real Estate, The Worst May Be Yet to Come

As a turbulent market battered South Florida in 2008, the Magic City itself appeared to fare better than some of its neighbors, with a particularly resilient commercial sector. However, emerging data seems to contradict these rosy assumptions.

According to Moody's Economy.com, Miami leads the country in first mortgage write-offs with a percentage of 12.55, as opposed to a national average of 1.95 percent. Moreover, when counting in mortgage delinquencies, Moody's found that more than a quarter of Miami's borrowers have either defaulted or are behind on payments.

The downbeat news continues on the heels of the Florida Association of Realtors' latest housing data. In 2008, sales of existing homes tumbled 4 percent, with a total of 124,215 homes sold as compared to 129,855 a year earlier. The good news: Home sales rose in December for the fourth consecutive month. However, median sales prices slumped to $130,600 by year-end 2008, a 32 percent drop from $192,600 in December 2007.