Our inventory is still decreasing in major markets in Broward County. Because of the shortage, multiple bids are becoming the “norm.”

SINGLE FAMILY HOMES:  Consider the numbers:

For the Davie-Cooper City areas, one year ago there was only 5.63 months of supply for single family homes.  Currently, there is only 4.11 months of supply.  Inventory has experienced a 33.62% annual decrease while sales have only decreased 9.15%. 

Over the twelve-months of 2011, there was a decrease in inventory of 28.9% while sold properties were up 67.2%.  Pended sales were down 12.1%.

 Consider:

According to NAR,

 (April 26, 2012) – Pending home sales increased in March and are well above a year ago, another signal the housing market is recovering.

 The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 4.1 percent to 101.4 in March from an upwardly revised 97.4 in February and is 12.8 percent above March 2011 when it was 89.9.  The data reflects contracts but not closings.

The index is now at the highest level since April 2010 when it reached 111.3.

Lawrence Yun, NAR chief economist, said 2012 is expected to be a year of recovery for housing.  “First quarter sales closings were the highest first quarter sales in five years.  The latest contract signing activity suggests the second quarter will be equally good,” he said.

“The housing market has clearly turned the corner.  Rising sales are bringing down inventory and creating much more balanced conditions around the county, which means home prices will be rising in more areas as the year progresses,” Yun said.

DAVIE:  There are currently 113 single family homes that are pended.

COOPER CITY:  There are currently 106 single family homes that are pended.

We are still at an all-time historic low for mortgage rates.  With our decreasing inventory and few foreclosures coming to market, it would make sense to sell your current home and make your next purchase now.

Let’s move forward, shall we?

The large master bedroom suite has a dressing room with dual California style walk-in closets; plus two large guest bedrooms with one now used as a home office. The apartment is wired for four phone lines, DSL, cable and a fire and smoke monitoring system connected to the building’s central security desk. There are extensive closets and storage spaces throughout the apartment that add to its complete comfort.

 Galley kitchen has extensive cabinetry and appliances with enclosed washer /dryer and pantry.

The apartment as well as the entire building is fitted with new high-impact windows and in addition this apartment is also fitted with high strength accordion shutters for added security and peace of mind. The building, Sky Harbor East, was built to unusually high standards by a European builder. It is a highly secure and newly renovated building with beautifully decorated lobbies, club rooms, fitness center, and library. It also has beautiful gardens, pool and beach area with a fishing pier. All this is maintained by a conscientious and expertly trained staff and monitored by 24 hour security with closed circuit TV. 

Recent upgrades and improvements make this a very desirable home for a family looking for gracious living, comfort and experiencing to the South Florida lifestyle. It is conveniently located only minutes from Fort Lauderdale/Hollywood International Airport and exclusive hotels and shops.

OFFERED AT $399,000

Zona’s PDF Property Flyer

According to Bloomberg, “A residential comeback would provide a boost to the U.S. economy. Housing will ‘contribute modestly’ to the economy this year for the first time since 2005, according to Peter de Bruin, an economist at ABN Amro Group Economics in Amsterdam.

If this is a buyer’s market, then why are we experiencing a shortage of homes?

Rising demand for homes has cut into the supply, which is already low because many sellers — especially those with negative equity — are waiting for prices to increase before putting properties on the market.

According to the National Association of Realtors®, about 2.43 million existing homes were listed for sale in February, the fewest for the month since 2005, the year U.S. home sales reached a record 7.08 million. The number of listings rose by 100,000 from January, a seasonal bump that occurred every February since 2000 except for 2008.

The February supply of unsold homes listed for sale was down almost 50 percent from a year earlier in markets such as Miami, Phoenix and Oakland, California, according to Realtor.com.

The Miami Association of Realtors® reported that single-family home prices in the Miami area increased 19 percent from a year earlier to a median $175,000 in February, the third consecutive year-over-year increase.

“The number of listings fell to 5,061 in February, or about six months’ supply, down from a nine-month supply a year earlier, as foreign buyers joined out-of-staters and Floridians seeking to take advantage of low prices,” said Ron Shuffield, president of EWM Realtors® International.

Another reason for the shortage is international buyers. Buyers from around the world know that the United States is still the safest place to invest – and what would be better than to have a second home in sunny South Florida?

According to Florida Realtors®, there are two reasons foreign buyers love South Florida:  Vacation and Value. “With its beaches, golf, shopping, boating and cultural and tourist attractions, Florida has been a global vacation destination for four decades.”

What could speed up the buying process for foreign buyers?

Regardless of supply and demand, the U.S. Visa Program could be a stumbling block for many buyers.  An immigration attorney is their best resource.

If you are thinking about putting your home on the market, now is the time.  Florida right now is offering excellent values for international buyers compared with vacation destinations in other parts of the world.

The 2011 Profile of International Home Buyers survey indicated that 41% of foreign buyers purchased a property as a vacation home, 23% intended to rent it, 25% planned a dual use and 6% bought for retirement.

Who Is Buying in Florida?

Thirty percent of the international buyers purchase in the Miami-Fort Lauderdale area. However, here is how the entire state rates:

 Monterra

Monterra offers an amenity rich lifestyle starting from the mid $300s.”  They have sold out of their first collection of homes known as the “Monterey Collection.”  The Santa Barabara Collection starts from $341,000 and the Catalina Collection starts around $440,000.

Monterra at Cooper City is a master-planned community spanning over 500 acres in one of the most convenient locations in Southwest Broward County. The community provides easy access to Florida’s Turnpike, I-75.

The entire community offers brand new single-family, estate and townhome floorplans designed in a Santa Barbara and Old-Florida architecture. Monterra claims to be a Community Development District.

The community features:

Elegant entrance which leads toward the Clubhouse, the focal point for Monterra’s fun-filled  lifestyle.  This is an active community, young in spirit and young in heart, regardless of the actual ages of the individual residents. 

• Manned 24/7 by a security guard who oversees the community’s state-of-the-art security system and 24-hour video surveillance.
• 10,000 square foot clubhouse complex is designed in comfortable Santa Barbara-style architecture, with a dash of Palm Beach elegance.
• Tennis and basketball courts.
• Club house has a banquet room capable of seating 200 guests, a library equipped with a flat screen TV for showing sporting events and movies, a professionally equipped fitness center with the latest cardio and weight training equipment, his-and-hers lockers with showers and steam rooms, a spacious pool and patio area, barbecue pit, and tot-lot with its own jungle gym.
• Marvelously scenic walking trails intertwine the various neighborhoods.
• Vistas of lakes and nature preserves.
• Convenient bike racks and carefully planned bike paths.

 Currently, there are only four re-sales (single-family homes) ranging from $364,000 to $700,000. I will keep you posted as re-sales come up.  You can also check my website zonahorton.com.

 Ranches of Cooper City

The Ranches is an enclave of twenty superb new estate home residences on home sites measuring at least 17,140 square feet.

Residences at The Ranches at Cooper City may include:  impact-resistant windows and sliding glass doors, maple kitchen and bathroom cabinetry, granite kitchen and bathroom countertops, 18×18” tile throughout all first floor living areas and a Whirlpool stainless steel appliance package featuring a built-in wall oven and double dishwashers.

The Ranches at Cooper City is sold out and there are no re-sales currently.  I will keep you posted and can put you on my “alert” system if you are interested in this development.

 Woodbridge Ranches

This Davie community consists of four to eight-bedroom estate homes, complete with winding “country-style” roads and lakes.  It boasts a fountain pool, lush landscaping and the home sites set back forty to fifty feet – giving your residence that total “estate” feeling.

There are six different models to choose from currently and there are two resales currently available priced at over One Million Dollars.

With the historically low interest rates, now is the time that you may want to sell and move up to something new, wonderful and perhaps state of the art and energy efficient that you can enjoy . . . until you are ready to make another move!

Community Features:

• Community swimming pool (gated)
• Tot lots throughout
• Picnic areas

The  2887 square-foot Devonshire 4+den/office residence, built with CBS block, boasts:

A volume entrance opens to a living room-dining room open-floor plan with  4 bedrooms and 2.5 baths.

The two-car garage will house your vehicles and has built in shelving for your storage.

Interior Features:

• Volume ceilings
• Two-story living room and entry
• Dining room
• Family room
• Indoor utility-laundry room

Kitchen:

• Upgraded kitchen
• Breakfast nook
• Granite countertops and backsplash
• Newer stainless steel appliances
• Wood cabinetry

 Master Bedroom:

• Oversized
• Has a separate den/office which in some models is a 5th bedroom
• Master bath has a separate garden tub and shower

Window Treatments:

• Custom window treatments

Flooring:

• Tile throughout social areas
• Carpet in bedrooms

Equipment:

• Automatic garage door openers
• Dishwasher
• Disposal
• Newer electric dryer
• Microwave
• Electric Range
• Newer washer

Exterior Features:

• Lushly landscaped
• Covered patio
• Privacy fence
• Sprinkler system (auto)

Security:

• Gated community (man/gate)

Weston’s top-rated schools make this home an absolute treasure.

According to www.Greatschools.net, the following information is correct** as of the date of this writing:

• Eagle Point Elementary School (FCAT Scores)
• Tequesta Trace Middle School (FCAT Scores)
• Cypress Bay High School (FCAT Scores)

There are private schools in the area as well.  Please check: Florida Smart

What made the owners fall in love with this residence in the first place?  Ask me . . .

Places of Interest:

This residence is located near the following unique/local  restaurants:

• La Toretta Italian Restaurant
• Lucille’s

This residence is located near the following parks:

• Weston Regional Park
• Tequesta Trace Park (on school campus)

**CAVEAT:  School boundaries are subject to change.  Please check www.browardschools.com prior to purchasing any property.

More photographs: 

Watch the video and schedule a private showing with me to experience the panache and elegance of this “home.”

You must contact me directly to obtain a floor plan and site plan of this residence.

Current Maintenance: $380 per Quarter

Offered at $412,000 (not an REO or Shortsale)

Buyers may wait for the prices to drop only to be paying out great sums of money on rentals – when they could be experiencing tremendous tax advantages.

I have had buyers who rented only to put their money into retirement accounts. You cannot live inside your IRA. “You are not taking money from your IRA when you buy a home; you are replacing one housing expense (rent) which has no potential for a return on investment with another (mortgage payment) that does give you an opportunity for a return,” according to Steve Harney, (www.kcmblog.com).  Today, in the vast majority of the country, renting is actually more expensive than owning, and history has proven that tenants DO NOT invest the difference in their rent and mortgage payments. Owning a home creates wealth.

For my Sellers:  Even though I have the latest tools to analyze what our local market has done over the past fifteen months, a prediction of market trends is no easy task. However, Steve Harney, our prominent Real Estate prognosticator, states that buyers will return:

“In 2011, a lack of consumer confidence in the overall economy dramatically impacted the housing market. Buyers were afraid to make a purchasing decision on any big ticket item. By the end of 2011, consumer confidence began to return and sales increased. Economic conditions will continue to improve throughout 2012 and consumer sentiment will solidify. Once that happens, home buyers will realize that now is the time to buy.

Steve also predicts that foreclosures will increase. He further predicts that prices will soften and that short sales will increase.

Now is the time to stop chasing the market.  This is the time to buy; this is the time to sell.  For buyers, you could be taking advantage of the tax savings. For Sellers, you want to cash in on the old and go after the new – while those mortgage rates are still historically low. No one knows when the prices may rebound however, prices will never reach the historic bubble we experienced from 2005-2008.

 as published in the Davie-Cooper City Town Times . . .(copyright Zona Horton, all rights reserved)

In spite of the fact that property values are still decreasing 1% per month over the past several years and short sales and foreclosure are affecting the prices, the market continues to improveThe foreclosures and short sales have affected the sales prices; history still proves that as inventory decreases, prices increase.

Who is buying in Florida? Pursuant to the NAR’s 2011 Buyer Profile of International Home Buying Activity, Florida still remained first in international home buyers:

“Canadian Buyers accounted 39% among the entire foreign buyers in Florida. 57% of Canadian buyers chose Condo/Apartment type of housing, and 32% purchased detached single family homes. The median price of homes purchased by Canadians was $151,500, which is lower than $174,700 the median of all foreign buyers. Close to two thirds of the buyers (64%) paid under $200,000.

Buyers from the United Kingdom declined to 7% among all foreign buyers from 15% a year ago. Interestingly, UK buyers preferred detached single family homes (62%) over condo/apartment homes (26%).”

If you are thinking about buying, act!  Now is definitely the time to buy with these historically low mortgage rates and home prices.  The numbers speak for themselves.

We will all keep our chins up as we watch the economy and the housing market stabilize then grow.  South Florida remains one of the most desirable places in the world to visit, live and own Real Estate!

as published in the Davie-Cooper City Town Times . . .(copyright Zona Horton, all rights reserved)

According to Florida International University’s Real Estate research website, “these are interesting times. Because real estate is the largest asset class for investment, it is essential that all market and policy makers and anyone in business understand how real estate markets work and how they are integrated with our overall economy. Real estate is an essential part of our economic and social systems. Hence, we are required to understand its place and discern fact from fiction.”

As each of us watch the News and attempt to decipher for ourselves what is really going on in our marketplace, it would behoove us to look at the market trends for our area.  Real Estate is, and will always be, a local affair.  The question still exists, however, is it better to rent or to buy?  Are we becoming a society of renters?

Ken Johnson, Editor of Journal of Housing Research at FIU, asked this same question in his recent presentation, “Is the US going to become a nation of renters rather than buyers?”

His research proved that: “Markets are presently presenting excellent buying opportunities based on historical property appreciation rates . . . and markets are presently at unprecedented levels of affordability especially when considered in terms of monthly mortgage payments.”

Even though there was still some cause for renting, Mr. Johnson further reported that: “Homeownership enhances civic pride and improves voter turnout and contributes to better societal outcomes – less crime, a better familial environment, etc.”

His report summarized that: “There are just too many benefits (financial and non-financial) to ownership versus renting for the nation to move away from ownership and into renting as the largely preferred housing status.”

His report concluded that: “Taking all of this together, the evidence suggests that equilibrium forces . . . are presently in place that will preserve the “American Dream” of home ownership.

(For Mr. Johnson’s complete report, please e-mail me immediately.)

Then why do people still insist on renting?  Is it the “I don’t want to be tied down” mentality? Are renters typically spenders or savers?

Here’s where renters get stuck:  According to the Wall Street Journal: “Renters need to invest all the money they save.”

Homes are a forced savings account through the building of home equity and especially as monthly mortgage payments become more competitive with rental payments.

Should I buy now – even though the housing prices and mortgage rates are historically low?

1. Examine the housing market: Study the Facts & Trends market analyses for your area as well as properties available for sale, short sales and foreclosures with a trusted professional Real Estate agent.

2. Consider your costs: Down payment, closing costs, Homeowners Association dues and repair costs. I can suggest a mortgage professional to assist you with a rent-vs.-buy worksheet based on your income and expenses.

3. Consider your future:  Are you planning to stay in South Florida for a while? Would you like to keep a home in South Florida and rent it out should you move to another part of the globe?

These are all great questions to ponder.  I would be more than happy to review your options.

The Real Estate ship is sailing – and our housing market in South Florida is moving. 

Jump on board; the water’s fine.

 as published in the Davie-Cooper City Town Times . . .(copyright Zona Horton, all rights reserved)

Imagine your life, wholly untouched by angst. What if faith, not fear, was your default reaction to threats? If you could hover a fear magnet over your heart and extract every last shaving of dread, insecurity, and doubt, what would remain? Envision a day, just one day, when you could trust more and fear less.

Can you imagine your life without fear?

These are the wise words of the prolific writer, Max Lucado, from his book, Fearless. Imagine Your Life Without Fear (Thomas Nelson Publisher, 2009).

Just today we hear the news that there is going to be yet another slowdown in the market because of mishandled paperwork in the foreclosure departments of our banking industry.  This will create yet another negative, trickle-down effect to our housing market. This unfortunate event will influence our fragile economy for the next five to six years. Is it any wonder we live in fear – with every day touting a newly discovered financial crisis?

Considering myself a news aficionado, I live my life without constant hand-wringing fear and angst. Fear will not add one more day to my life; yet, fear could lop some precious time off the back end. Many of you know me and perhaps think that I am a grown-up “Polly-Anna” living in the land of “La-Di-Da.”   — Quite the contrary.

The one thing that has sustained me throughout my life and my Real Estate career is Faith. Faith is the polar opposite of Fear. I cannot exercise Faith and Fear at the same time. I take a deep breath, shake the dust off my sandals, and make the effort. Suck it up. Move forward. Never give up.

For the past twenty years, I have watched this market crawl to the top and crash to the bottom only to crawl back to the top . . . an ever-swinging pendulum. While at the bottom, I observe that the only reasonable choice is to look up. In the words of the Irish poet, Oscar Wilde, “we are all in the gutter, but some of us are looking at the stars.”

There are seasons to the Real Estate market as there are seasons to our lives. Each season has its own set of joy and challenges. Hang in there – there is hope.

Hope is a Heart Open to Positive Events.  “Hope is the dream of a soul awake.” Without hope, our dreams die.

My original intent was to give you yet another market snapshot. However, the market is fairly unchanged for our area.  That is why I am writing this letter of encouragement to you, my friends.

It is of utmost important that we, as a community, stick together.  We will get through this, we will watch the sun rise tomorrow, and we will get your home sold.

Keep the Faith. Hold on to the Hope. Hug the ones you love.  — Zona Gayle Horton

Even the Wall Street Journal stated in its article, “Why It’s Time To Buy,” dated June 4, 2011:

“Despite all the gloom, however, there are growing indications that it is a good time to buy. Mortgage rates, which fell to 4.55% for the week ending June 2, according to Freddie Mac, are near 50-year lows. Homes have become more affordable than they have been in years: According to Moody’s Analytics, the ratio of home prices to income is now 20.9% lower than the 15-year average through 2010, and 12.5% lower than the 1989-2004 average. A historic glut of homes, meanwhile, has created a buyer’s market: There were about 15 million vacant homes in the U.S. last year, according to John Burns Real Estate Consulting, Inc.—some 3.1 million more than normal.”

The supply of inventory in the real estate industry is defined by the current months’ supply of homes available for sale. Here is a great guideline:

•  1-4 months’ supply creates a seller’s market where there are not enough homes to satisfy buyer demand. Appreciation is guaranteed. 
• 5-6 months’ supply creates a balanced market where historically home values appreciate at a rate a little greater than inflation.
• 7-8 months’ supply creates a buyer’s market where the number of homes for sale exceeds the demand. Depreciation follows.

 All Property Statistics:

Broward County:  One year ago, there were 6.7 months of supply. At the beginning of June, there were 6.3 months of supply. The average price per square foot was $124.

Cooper City:  One year ago, there were 4.8 months of supply. At the beginning of June, there were only 5.3 months of supply. The average price per square foot was $102.

Davie:  One year ago, there were 5.1 months of supply. At the beginning of June, there were  6.9 months of supply. The average price per square foot was $125.

Even though the foreclosures and short sales have affected the sales prices, history will prove that as inventory decreases, prices increase. Pricing is key.

In Cooper City, the average sold price was $150,000 while the average list price was $195,000. The “median” priced home was $140,000. The homes were selling within 97% of their “last” listed price.

In Davie, the average sold price was $210,000, while the average list price was $434,000. The “median” priced home was $115,000. The homes were selling within 95% of their “last” listed price.

Not surprising, Broward County’s average sold price was $177,000, while its average list price was $368,000. The “median” priced home was $100,000.

Who is buying in Florida? Pursuant to the NAR’s 2011 Buyer Profile of International Home Buying Activity:

“Geographic Market Segmentation: International buyers came from a total of 70 countries; the top five (Canada, Mexico, China, U.K., and India) accounted for 53 percent of transactions. Most states had at least one international transaction, but four states—Arizona, California, Florida, and Texas—accounted for 58 percent of transactions.”

Florida still ranks first in international home buyers.

 If you would like a copy of this report, please contact me immediately, and I will e-mail it to you.

We will all keep our chins up as we watch the economy and the housing market stabilize then grow.  South Florida is still one of the most desirable places in the world to visit, live and own Real Estate!

 as published in the Davie-Cooper City Town Times . . .(copyright Zona Horton, all rights reserved)