WASHINGTON – Feb. 27, 2012 – Pending home sales are on an upward trend – an admittedly uneven but meaningful trend – since reaching a cyclical low last April, according to the National Association of Realtors®. Today’s national Pending Home Sales Index (PHSI) rose 2 percent compared to December 2011.

The PHSI, a forward-looking indicator based on contract signings, rose to 97.0 in January from a downwardly revised 95.1 in December, and it’s 8.0 percent higher than January 2011 when it was 89.8. The data reflects contracts but not closings.

The January index is the highest since April 2010 when it reached 111.3 as buyers were rushing to take advantage of the homebuyer tax credit.

“Given more favorable housing market conditions, the trend in contract activity implies we are on track for a more meaningful sales gain this year,” says Lawrence Yun, NAR chief economist. “With a sustained downtrend in unsold inventory, this would bring about a broad price stabilization or even modest national price growth, of course with local variations.”

The PHSI in the Northeast rose 7.6 percent to 78.2 in January and is 9.8 percent above a year ago. In the Midwest the index declined 3.8 percent to 88.1 but is 10.8 percent higher than January 2011. Pending home sales in the South increased 7.7 percent to an index of 109.1 in January and are 10.5 percent above a year ago. In the West, the index fell 4.4 percent in January to 101.9 but is 0.7 percent above January 2011.

“Movements in the index have been uneven, reflecting the headwinds of tight credit, but job gains, high affordability and rising rents are hopefully pushing the market into what appears to be a sustained housing recovery,” Yun says. “If and when credit availability conditions return to normal, home sales will likely get a 15 percent boost, speed up the home-price recovery, and thereby significantly reduce the number of homeowners who are underwater.”

© 2012 Florida Realtors®

ORLANDO, Fla. – Feb. 27, 2012 – Home sales may get a boost from the rising prices occurring in the rental market, which is making it cheaper to own rather than rent in a growing number of cities.

“We might see a spring season better than the numbers are predicting,” Jay Brinkmann, the Mortgage Bankers Association’s chief economist, said during the MBA conference in Florida this week.

The number of renters in the country increased during the housing crisis, while homeownership dropped to a 14-year low. But with rental costs rising nationwide, more renters may be lured to buying a home, particularly with home prices falling and mortgage rates hovering at record lows.

Mike Fratantoni, MBA’s vice president of economics and research, is forecasting home sales to increase 10 percent in 2013. An improving employment picture also is expected to have a positive impact on housing, MBA economists noted.

Still, “everything is going to be based overall where the economy goes,” Brinkmann said. “This is going to be a slow year. There are a number of headwinds we’re facing in terms of economic growth.”

Source: “MBA: Rising Rental Costs May Drive Home Sales Up,” HousingWire (Feb. 23, 2012)

 

BlueChip Energy in Lake Mary on Monday will start building what it says will be Florida’s largest solar panel plant.

At 40-megawatts, enough to power roughly 3,200 homes, the $120 million Sorrento Farms plant would be larger than the biggest one so far, Florida Power & Light's 25-megawatt DeSoto plant, which drew a visit in 2008 from President Barack Obama.

But the new plant would be smaller than another solar project announced recently for Gadsden County and another one announced last year for Walton County.

BlueChip has a contract in place to sell all 40 megawatts to Progress Energy Florida at price that is much cheaper than what the utility charges its customers, said James Pennington, the a project development manager for the solar company. But BlueChip has the option of selling some of the power to other utilities such as Seminole Electric Cooperative if it can get a better price.

 

With almost six decades of experience, Florida East Coast Realty President Tibor Hollo points to the Genting casino project as the major force shaping the future of Miami. Hollo had a large hand in the development of the Omni/Venetia area, which is the future site for the $3 billion dollar resort and casino project. He told the Sun Sentinel that the plan was "an extremely ambitious undertaking" that would have "a tremendous impact on the immediate neighborhood and Miami as a whole." Hollo came to Miami in the fifties and is largely credited with the early expansion of downtown Miami. At 84 years old, he remains one of Miami's most influential developers. His newest project, the mixed-use One Bayfront Plaza, will become Miami's tallest building upon completion. Overlooking Biscayne Bay, One Bayfront Plaza will stand over 100 stories tall and is the first skyscraper over 1,000 feet to be approved for construction in Miami. [Sun Sentinel]

 

According to Credit Suisse real estate market survey traffic rebounded in October after drop in September.

Buyer traffic improved modestly in October vs. September, although overall levels remained below agents’ expectations, as our traffic index increased to 39 from 28 (readings below 50 point to traffic below agents’ expectations). Investor demand appeared to pick back up, as many agents noted the prevalence of cash buyers, both domestic and foreign. One agent commented, “Inventory levels are low. Cash buyers are controlling the market.” Another agent mentioned, “Over 50% of my buyers are cash.” The majority of these buyers are at least initially turning the homes into rentals, according to agents. “Only cash buyers for rentable units,” are buying, according to one agent. However, the strong rental demand has still pushed rents higher, leading some people wondering if it would be better to buy than rent given the affordability. One agent noted, “Higher rental rates (plus low rental inventory) has our clients considering a home purchase while the rates and prices are low. Of course, this assumes buyers can actually secure a loan, which agents continue to cite as a key deterrent (along with fears over jobs and home prices).

Prices steady as inventory shrinks.

Our home price index inched up to 48 in October from 45 in September, essentially in-line with a neutral reading (readings of 50 indicate stable prices over the past 30 days). This was the third consecutive month of stable home prices in our survey. Pricing is being supported by the shrinking inventory levels, although we do expect more homes to come to market eventually as the foreclosure log jam eases, which could jeopardize pricing once again. Also, traditional sellers still likely need to close the gap relative to distress in order to bring in buyers. Our home listings index improved to 73 in October from 64 in September, above a neutral reading of 50. It also took less time to sell a home, as our time to sell index increased to 55 from 39, above a neutral 50.

Comments from real estate agents:

“More short sales are processing quicker.” “Indecisive clients realized clean competitively priced inventory was shrinking and finally made the commitment to buy now.”

 

Breaking ground in second quarter 2012, both Charles and I are excited about the nearly $700 million urban shopping and mixed-use development spread over 9.1 acres just west of Brickell Avenue and south of the Miami River.

Brickell CitiCentre is expected to generate $1 billion in overall economic impact, according to a study by Miami Economic Associates. The benefits would include 1,700 construction jobs for each of the four years of construction, plus 3,800 jobs upon the project’s completion.

The city of Miami would receive $5.4 million in annual taxes from Brickell CitiCentre, while Miami-Dade County would get another $9.6 million in annual taxes.

“This is a huge complex that will bring to Brickell Avenue, Downtown Miami and East Little Havana energy it has never, ever seen before,” said Mayor Tomas Regalado.

 

Swire Properties, developer of Brickell Key is known for such buildings as Asia,Tequesta,Brickell Key One, Mandarin Oriental, and Carbonell just to name a few and  will take the first steps towards a fast-track government approval process necessary for the 4.6 million-square-foot project that aims to create a retail destination unseen before in Miami’s urban core.

 

Swire Properties paid over $41 million in an all-cash deal for the first two undeveloped parcels that form the core for Brickell CitiCentre, straddling South Miami Avenue. The land had been on the market during the boom for as much as $110 million. The final parcels – the Brickell Tennis Center and the Eastern National Bank headquarters – were acquired earlier this year for a total cost of about $27 million. The additional acreage was necessary to get the site over the nine-acre threshold needed to apply for a special area plan under the terms of Miami 21.  

 

Designed by Miami based Architectonica , this massive endeavor will also include restaurants, a hotel, office towers and apartments or condominiums, spread over a four-block area connected by bridges and covered walkways.

 

Brickell CitiCentre is modeled after similar projects that Swire’s parent company has developed in Asia, including Pacific Place in Hong Kong. The first phase would include about 500,000-square feet of retail shops and restaurants, a 290-room four-star hotel, two eight-story office towers and a residential tower with about 270 units.

 

“We really see Miami as about to take the next and final step to become a true urban city, but retail is the missing link,” said Stephen Owens, president of Swire Properties. “Retail creates the pedestrian experience. In some ways what we’re trying to create is the Main Street like you have in most urban cities. Our goal is to really become the anchor for the urban area.” The retail would likely be anchored by at least one department store, plus a mix of luxury and moderate retailers focusing on fashion brands and home furnishings, including national and international brands.

 

Impact on Enclave Owners

 

Both Charles and I see a huge upside to Brickell CitiCentre for our clients once the project is finished sometime in early or mid 2014. These are our estimates. The revitalization of the urban core which started about 10 years ago before the recession hit was just the stepping stone to bigger and better things to come in our area With current prices at Wind, Mint,and Ivy anywhere from 40-60% off peak levels,Brickell CitiCentre will definitely be a catalyst to higher prices in the years to come.

 

Most of our clients are asking, how many stories will Brickell CitiCentre be? Will it obstruct our views? What should I do with my unit?

 

The original proposed plans were for Brickell CitiCentre III, the tallest of the three, was to be 808 ft (246 m) tall, and contain 76 floors. The 76 floors would have tied it with Met 3 for the lead in the tallest building in Miami in terms of floors. The second main building in the complex is Brickell CitiCentre II, which was 769 ft (234 m)-tall, equivalent to 72 floors. Brickell CitiCentre I, the shortest of the three, was going to be 69 floors and 740 ft (226 m) tall, and located on the west side of Miami Avenue, across the street from the other two buildings. We currently do not have the updated data on the size of the the three towers but visit our blog often as we get updates we will post them.

 

Due to the location of the project, we feel any obstruction of the Southeast views at The Enclave will be minimal to none. Just like our clients with city and sunset views who will be watching the new LEED Marlins stadium with an impressive retractable roof in 2012, Citicentre will provide a breathtaking view of these wonderful lit towers as part of the Miami skyline to the southeast. 

 

The Time To Buy is Now!

 

As Charles and I put our market data, analysis, ideas and opinions together in the “Implementation Room” as we call it. We are both in agreement that this buyer’s market will not be around forever. The current rental inventory in the Brickell, Downtown Miami and the Riverfront areas is less than three months signaling high demand. Rental rates are higher than 12 months ago and the highest in South Florida at about 21.6 a square foot. For current owners, the time now is to enjoy or lease the unit. We do not recommend in selling right now unless you are under distress and cannot afford the payments, in this case we can assist you in the Short Sale process if needed.

 

1. Low rental inventory and interest rates
2. Brickell CitiCentre
3. Rental rates rising
4. Foreign Cash buyers
5. Better returns than traditional cash investments
6. Dwindling Inventory for sale ( last 12 months )

 

For an updated inventory list, floor plans and market analysis of Wind, Mint and IVY please go to the top of the desired building page. We look forward to assisting you in all your riverfront and real estate needs.

 

“Carlos Del Amo & Charles R Simmons” 

The C2 Team at Enclave at Riverfront 

Source : The C2 Team/ Miami Herald

Read more: http://www.miamiherald.com/2011/04/27/2188997_p2/new-city-center-on-horizon-for.html#ixzz1Z1J0bVOG