A Tale of Two Cities: Broward County Steady, While Miami Struggles

The first half of 2016 has been a regular slugfest for Miami’s housing market, but the grass seems a bit greener for its neighbor to the north.

While sales in Miami-Dade continue their downward slope, Broward County saw a moderate uptick for both closed sales and prices during June, according to a new report from the Greater Fort Lauderdale Realtors association.

A total of 1,635 condos and townhomes were sold in Broward last month, marking a 4.4 percent jump in closed deals year-over-year. Single-family homes saw a slightly higher 4.8 percent jump in sales, coming out to 1,805 properties sold.

Although the numbers are by no means earth shattering, they’re a far cry from the market woes in Miami and Miami Beach. A second quarter report from brokerage Douglas Elliman showed sales fell as much as 24 percent, year-over-year in certain areas, signaling a market correction could be on its way.

Back in Broward, housing prices continued their steady rise during June. The median price for condos and townhouses hit $149,250 last month, spiking by 10.4 percent year-over-year. Single-family homes had a more moderate price increase of 7.3 percent, standing at a median of $325,000 in June.

And the inventory pile-up that’s slowing down Miami-Dade was nowhere to be seen in Broward. Active inventory for single-family homes fell 10 percent to 5,490 properties in June, while condos saw a slight inventory uptick of 1.8 percent to 8,641 units. The past 12 months have been a constant squeeze on single-family housing inventory, according to the association, while new condos entering the market are starting to level out year-over-year after a significant influx that started in February.

While both sectors of the market grew during June, the association’s figures show Broward’s true strength is in its single-family homes. Dollar volume for home sales hit $682 million in June, more than double that of condo’s $307.8 million. And for the past 12 months, year-over-year home sales haven’t fallen once — something Broward’s more volatile condo market can’t boast.

Source: The Real Deal

Top Buyers of U.S. Real Estate are Chinese for 4th Year

Chinese buyers were the top foreign purchasers of U.S. real estate for the fourth year in a row, a survey released Wednesday showed.

The National Association of Realtors reported that Chinese buyers bought 29,195 properties worth $27.3 billion in the 12 months ending March 2016. At a median price of $542,084, the typical Chinese purchase was more than double the median U.S. existing-home price of $223,058, showing that the acquisitions were made by the burgeoning Chinese elite.

Chinese purchases were more than triple that of the number-two nation, Canada, which had $8.9 billion of U.S. properties. India ranked third with $6.1 billion of purchases, and Mexico fourth at $4.8 billion.

That said, foreign purchases of U.S. real estate actually declined slightly, by 1.3% to $102.6 billion of residential property. The NAR said that decline came due to a stronger U.S. dollar and a weak global economy, as well as rising U.S. house prices.

Even the Chinese purchases fell, by 4.5%.

Lawrence Yun, chief economist of the NAR, said British purchases may subside after the vote to leave the European Union, which has sent the pound GBPUSD, -0.9906% down sharply. Britain accounted for $5.5 billion worth of purchases in this survey, ranking fifth-highest.

Latin Americans, Europeans and Canadians mostly sought properties in Florida and Arizona. California and New York drew the most Asian buyers, the NAR said.

Source: Marketwatch

Steal this Luxurious Estate on 4 Acres in SW Ranches!

Unique opportunity to own a luxury estate on 4 acres in Southwest Ranches. Asking $3,790,000 – REDUCED $2 Million below market value, don’t miss out!

Brand-new 2-story estate, completed in 2014. More than 15,000 sq. ft. under air. Never occupied & ready for 1st owner.

Highlights

Grand foyer with dual stairs, sumptuous master suite with custom spa & sauna, gourmet kitchen, unique sports parlor with “hideaway” Basketball hoop, massive outdoor pool & more! On 4 manicured acres, with private lake, private gate. Mature landscaping for privacy.

Minimum 24-hour notice for showings.

Link to Featured Listing

 

FED: Vulnerable Commercial RE Sector May Take Hits

The Federal Reserve warned that prices in the commercial real-estate market may have run up too far too fast.

Valuations in commercial real estate “appear increasingly vulnerable to negative shocks, as CRE prices have continued to outpace rental income,” the Fed said in its semiannual Monetary Policy Report to Congress. The Fed noted that prices exceed their pre-crisis peaks by some measures.

The Fed included a special section on financial stability risks in the report, which accompanies Chair Janet Yellen’s testimony. The report said that even given “moderate’’ financial vulnerabilities, risks of external shocks, such as the U.K.’s possible exit from the European Union, pose stability risks.
The report also highlighted issues related to credit exposures to the energy sector, money-market mutual funds and stock valuations.

The central bank said price-to-earnings ratios on a forward-looking basis for stocks have increased to a level “well above” their median for the past 30 years.

“Although equity valuations do not appear to be rich relative to Treasury yields, equity prices are vulnerable to rises in term premiums to more normal levels, especially if a reversion was not motivated by positive news about economic growth,” the Fed said.

The Fed said “some structural vulnerabilities are expected to persist” in money-market mutual funds even after Securities and Exchange Commission reforms go fully into effect in October.
“Leverage for the non-financial corporate sector has stayed elevated and indicators of corporate credit quality, though still solid overall, continued to show signs of deterioration for lower-rated firms, especially in the energy sector,” the Fed said in its report.

Strong U.S. bank capital positions contributed to the resilience of the financial system, the Fed said.

Source: Bloomberg

An Exciting Month for RIVA Fort Lauderdale

What an exciting month. RIVA hosted four great community events, beginning with a festive, after-hours networking reception for community leaders and members of the Greater Lauderdale Chamber of Commerce’s Gay & Lesbian Business Exchange Council.

Daniel de la Vega President of ONE S.IR. SPEAKING

Daniel de la Vega President of ONE S.IR. SPEAKING

RIVA also hosted The Leadership Broward Foundation’s 2016 Profiles in Leadership honorees. In addition, RIVA was an exclusive sponsor of the annual Waterway Soirée, one of Fort Lauderdale’s must-attend, signature fundraising events, which benefits the Children’s Diagnostic & Treatment Center, hosting a five-star dinner aboard a luxurious, private yacht for 20 VIP guests.

This slideshow requires JavaScript.

The new and elegant RIVA building capped the month with a VIP Rooftop Party, this past Wednesday May 25th at the new Audi Fort Lauderdale location, where more than 400 guests attended the sunset bash with a bird’s eye view of the construction progress.

More information about RIVA

 

Sales Soar for New Homes in April

New home sales data released this week showed that sales were 16.6% higher than March when comparing the seasonally adjusted annualized rates, and 23.8% higher than last year.
This news comes from estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development.

The median sales price of new houses sold in April 2016 was $321,100; the average sales price was $379,800. The seasonally adjusted estimate of new houses for sale at the end of April was $243,000. This represents a supply of 4.7 months at the current sales rate.

At last we have a clear, statistically significant view that the new home market is having its best spring buying season in a decade,” says Realtor.com® chief economist Jonathan Smoke. “April’s non-seasonally adjusted volume of new home contracts was estimated to be 61,000, which was the highest April volume since 2007. However, a key difference between now and 2007 is that 38 percent of the new homes sold then were completed speculative inventory. In April, less than 30 percent of new homes sold were completed. Likewise, the supply of new homes for sale in 2007 was 7.4 months. This April’s new home supply was 4.7 months – solidly below normal. It appears that the growth in sales is coming from higher price points, indicating that builders are finding success with move-up, luxury, and active adult home buyers rather than entry level buyers. Hopefully this will free up existing home owners to sell their lower priced homes as they move up.

Quicken Loans Vice President Bill Banfield stated, “The spring home buying season is in full swing as builders have been picking up steam through the first quarter. While the large jump in new home sales is encouraging, I would look for a normalization in the coming months that shows a slow but steady increase in the health of the housing market.

Source: RISmedia.com

New Addition to Miami’s Skyline – One Thousand Museum

One Thousand Museum by Zaha Hadid Architects marks the Pritzker Prize-winning architect’s first residential skyscraper design concept in the Western Hemisphere. With her name on the project and iconic design tower in the center of Downtown Miami’s skyline, the tower will be the catalyst that shifts the center of gravity for high design and luxury residences. Overlooking the contemporary Pérez Art Museum Miami, Museum Park, the soon-to-be-opened Patricia and Phillip Frost Museum of Science, the Adrienne Arsht Center for the Performing Arts and the American Airlines Arena; One Thousand Museum by Zaha Hadid Architects offers an unmatched standard of luxury living within Miami’s cultural nucleus.

Downtown Miami Skyline featuring the One Museum condominium development adjacent to Miami Art and Science Museums.

Downtown Miami Skyline featuring the One Museum condominium development adjacent to Miami Art and Science Museums.

The 62-story tower will contain only 83 residential units, which consists of a two-story duplex penthouse, four townhouses, eight full-floor residences and 70 half-floor units. The duplex penthouse is priced at $50 million with over 16,000 square feet; duplex townhome residences and full floor residences are priced from $10.9 million to over $20 million and range from 8,000 to 10,000 square feet; half-floor residences are priced from $6 million to over $8 million and range from 4,600 to 4,800 square feet.

Residences will feature faucets by Dornbracht; induction cook tops, in-wall ovens, steam ovens, microwaves, dishwashers and integrated coffee makers by Gaggenau; custom cabinetry by Poliform; refrigerators by Sub-Zero; a German interior illumination concept by apure with design by Porsche Design Studios; custom doors by Lualdi with Valli & Valli’s Duemilacinque series handles designed by Zaha Hadid; state-of-the-art home automation infrastructure by Creston; and custom olfactory scenting options by 12.29, inspired by Zaha Hadid’s architectural vision. The project’s 30,000 square feet of luxury communal areas include a two-story Aquatic Center and Sky Lounge at the 61st floor, a Sun & Swim Terrace with a landscape design concept by Enea Garden Design, the city’s only private rooftop helipad and more.

One Thousand Museum by Zaha Hadid Architects broke ground in December of 2014 and is scheduled for completion in late 2018. During the summer of 2015, One Thousand Museum by Zaha Hadid Architects’ foundational work began with a 24-hour concrete pour in which 1000 trucks poured 9,500 cubic yards of concrete.

Developed by Louis Birdman, Gregg Covin and Kevin Venger with sales and marketing headed by ONE Sotheby’s International Realty, One Thousand Museum by Zaha Hadid Architects’ unprecedented fusion of art, architecture, design, location and luxury will make it Miami’s most coveted address.

For more information, be sure to visit my One Thousand Museum – Miami page.

Source: The Architect Magazine

Swanky Condo Breaks Ground in West Palm Beach

This is the first major waterfront condo in West Palm Beach since 1987. It comes at a time when the city’s downtown and surrounding neighborhoods have 25 major projects in the pipeline.

In a recent interview, Golub said he was attracting buyers from the Northeast and Palm Beach homeowners who wanted to leave older homes for a new condo with luxury amenities.

Bristol Palm BeachUnits range from 3,700 square feet with three bedrooms to 9,000 square feet with five bedrooms. The interior designer is Amir Khamneipur, who selected woods, stone and imported custom fittings. Amenities include a marble-decked lobby, a club lounge, a fitness center, a two-story wet and dry spa, terrace gardens, and a 75-foot lap pool. The building features a concierge and Bentley service throughout the Palm Beach area.

The developers said the Bristol Palm Beach is 40 percent pre-sold. The developer is asking for 50 percent deposits in stages during construction.

Units start at $5 million. The project should be completed in fall 2018.

Source: South Florida Business Journal

Auberge Beach Penthouse Sells for Record $8.9 million

A real estate boom is happening in Fort Lauderdale, Florida. Once a budget friendly, spring break town by the beach, just North of Miami, the area is experiencing a surge in growth with a string of new luxury hotels and residential buildings along the beach. While Millionaires Row is known for its stately waterfront mansions anchored by large yachts, the high-end resort industry is quickly staking its claim into one of the fastest moving markets in the United States.

LIVING-02

A four-bedroom penthouse in the Auberge Beach Residences South Tower has recently sold for $8.9 million, setting a new record in Fort Lauderdale, pushing out the now previous most expensive residence sold – the 2009 sale at The Ritz-Carlton Residences for $6.875 million.

The record-breaking penthouse boasts over 5,800 sq. ft. living space with an additional 3,970 sq. ft. of exterior living area including a private plunge pool. There are 4 bedrooms, 6 baths, plus a den and a private sun room with 270 degrees of panoramic views of Fort Lauderdale Beach and the city lights. The new owner of the South Tower Auberge penthouse is a mid-west manufacturing CEO who will be joining high profile neighbors including Miami Dolphin’s Dan Marino and philanthropist/author Annie Falk among others.

Standout features of the penthouse include; an expansive floorplan designed to appeal to extended multigenerational families, Floor-to-ceiling window walls overlooking the unmatched coastal setting, private terrace, that nearly doubles the property’s liveable space, complete with an array of outdoor dining and entertaining spaces, access to world-class, resort-style amenities that are curated by legendary luxury hospitality company Auberge Resorts Collection, including exclusive services at the signature Auberge Spa.

Take a moment to visit my Auberge Beach Residences page for more information about this exciting new Fort Lauderdale development.

Source: Forbes

Pulse of Real Estate in Broward County: Demand Rising

I recently attended The “Broward Deep Dive” panel event, one of two at the event at the Design Center of the Americas in Dania Beach, focused on analyzing Broward County’s hottest markets and comparing them to their biggest competitors in Miami-Dade County.

One of the highlights is that as Miami’s real estate market loses some of its heat, Broward County is maturing as a hotspot of new development in South Florida, according to the panel of experts. It accounts for 19% of South Florida’s new development activity according to figures cited by panel moderator Peter Zalewski, a TRD columnist and founder of research firm CraneSpotters.com. With a big part of that development upswing due to the Related Group, a firm famous for cranking out luxury buildings in Miami.

Yet amid all, some uncertainty remains, not about the trend as much as about its composition. Related has still yet to determine whether its iconic Las Olas development should be rentals or condos, Campbell said. This is evidenced by the possible launch of phase III before II at the company’s New River Yacht Club project, purely because 190 units will be easier for the market to absorb than 350.

“With the pace of sales in Broward, we want to let the market decide.” he said.

Perhaps the buyer demographics plays a bigger role. Broward sees far more empty nesters in the county’s western suburbs seeking to downsize, while also buying luxury units now that they can afford it. Also, Broward sees more tough sells, as buyers tend to kick the tires more and scrutinize everything from the finishes to the location.

Jean Francois Roy, founder of development firm Ocean Land Investments, is tapping into that same demographic with his nearly half-dozen condo projects in the luxury area around Las Olas.

“After the last recession, we decided to specialize in Broward County,” Roy said.

Not surprisingly, several of the panelists agree transportation is a huge factor in helping Broward’s real estate market grow. Commercial prices in Fort Lauderdale and especially in the hip neighborhood of Flagler Village are poised to rise as new commuting options emerge for residents. Meanwhile, All Aboard Florida will launch its Brightline line next year, with trains running between Miami, Fort Lauderdale, West Palm Beach and Orlando. And finally, Fort Lauderdale is considering the Wave street car, which will bring familiar commuter service with in-ground San Fransisco-style trolleys.

“Every deal that we’re looking at is pushing the envelope as far as parking reduction,” he said. “Not because of costs, because… what are we’re going to do with these garages that nobody is going to use? The next few years, we’ll probably see a lot of more these buildings with no parking.”

Source: TheRealDeal.com — April 14th, 2016

Original Article:  Demand in Broward County still rising: TRD Panel – The Real Deal