Jun 23

May existing home sales rose by 2.4 percent

By Zilbert Realty Group - Miami Beach Real Estate Market Updates No Comments »

WASHINGTON (AP) — A real estate group says sales of previously occupied homes rose modestly from April to May, the third monthly increase this year, but signs of any housing recovery are fragile at best.

The National Association of Realtors said Tuesday that home sales rose 2.4 percent to a seasonally adjusted annual rate of 4.77 million last month, from a downwardly revised pace of 4.66 million in April. Prices, meanwhile, dropped by 16.8 percent from a year ago.

The results missed economists’ expectations. Sales had been expected to rise to an annual pace of 4.81 million units, according to Thomson Reuters.

The median sales price plunged to $173,000, down from $207,900 in the same month last year, but up from $166,600 in April.

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Jun 13

South Florida’s Condo Count Falls, For Now

By Zilbert Realty Group - Miami Beach Real Estate Market Updates No Comments »

By Dawn Wotapka  Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)–South Florida’s bloated condominium supply is finally being whittled down, a positive sign for the region that saw one of the nation’s most spectacular booms and busts.

But inventory under construction and, of course, foreclosures, could erase the recent baby steps toward recovery.

Falling prices combined with pent-up demand pushed the number of resale condos available just below the 50,000 mark, a decline of more than 18% from November, according to real estate consultancy Condo Vultures LLC.

“It is significant psychologically for the region to see the condo resale inventory slip below 50,000 units,” said Peter Zalewski, a principal with the Bal Harbour, Fla.-based firm. “Before the South Florida condo market can stabilize the overall inventory must first be reduced.”

As of this week, there is a combined 49,746 condos and town houses on the resale market in the tri-county South Florida region, stretching from West Palm Beach to downtown Miami. That’s down from 51,581 about a month ago, according to Condo Vultures, which uses data from the Florida Association of Realtors.

In November, there were 60,928 condos for resale.

The largest concentration remains in Miami-Dade County, where developers raced to build luxury waterfront condos during the region’s heyday. After the bubble popped, the area was saddled with a multi-year inventory glut that depressed prices and fueled foreclosures. Cash had been king recently, but an increase in deals has soothed some jittery lenders and financing is trickling in.

That has helped the Miami area’s condo inventory fall by 18% since Nov. 24, according to Zalewski.

But this could only be a temporary improvement. Developers could unload another 10,000 or so new, unclosed units into what, despite modest improvement, remains a battered housing markets.

Foreclosures, Zalewski added, continue “at a rapid pace.”

-By Dawn Wotapka, Dow Jones Newswires; 201-938-5248; dawn.wotapka@dowjones.com



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Jun 13

Downtown Miami condos filling up fast, report says

By Zilbert Realty Group - Miami Beach Real Estate Market Updates No Comments »

With dark windows dulling Miami’s twinkling skyline, newly built condo towers may look ghostly. But that’s changing as the downtown area quickly fills up with flesh-and-blood residents.Although condo sales remain sluggish, renters are marching in to help lighten things up. Sales are picking up, too.

An occupancy report released Wednesday, commissioned by the Miami Downtown Development Authority, found that 62 percent of the new condos built since 2003 are, in fact, inhabited by humans.

What’s selling: good deals.

In the past two weeks at Brickell on the River South, 40 new sales contracts have been signed, thanks to aggressively reduced pricing by the developer.

”Come into the sales offices and see the movement on a daily basis of people trying to find out what is available to buy or to rent,” said Andres Asion, principal broker for the Miami Real Estate Group. “People are tired of commuting into the heart of the city.”

Renters are driving the change.

Although the rental-to-sales ratio is now 50-50, an average of 280 new leases were drawn up per month on new units, compared with an average 50 monthly sales in the last year, according to the report.

Thanks to downwardly spiraling prices, sales numbers have improved recently to an average of 70 per month, though financing hurdles are still tamping down otherwise robust demand, the report noted.

While some may point to the rental trend as evidence developers overshot their estimates of demand and put up far too many buildings, Alyce Robertson, executive director of the development authority, said it makes little difference from an economic development standpoint.

Whether people rent or own, they need and demand more shops, banks, bars and restaurants in the area.

Robertson said the Downtown Development Authority, a quasi-governmental agency that promotes the area, will soon sell the area to prospective retailers based on the results of the occupancy report.

“The people who haven’t been to downtown recently, you really have to come and see because it’s really a different place.”

In the midst of one of the worst housing blowouts in state history, the occupancy report sheds some positive light on what otherwise is still a fairly grim situation in the condo market.

Prices continue to drop and rising foreclosures are financially disabling many condo associations. Also, the sector is dealing with a vast oversupply of inventory — units for sale from developers, owners and banks.

As of May, developers still held 38 percent of completed units — or about 8,300 of 21,616 completed. They are being forced to rent or sell at steep discounts to fend off lenders seeking construction loan payoffs. An additional 1,333 units will be delivered to market later this year.

Competition from other parts of town also looms large. In Miami-Dade County, 56 percent of all properties for sale are either condos or townhomes, according to the Multiple Listing Service.

The bulk of those units are in Aventura, North Miami Beach and Sunny Isles Beach, with downtown Miami ranking second by a fraction. Developers typically do not list unsold units in the MLS.

What’s more, condos and townhomes represent 71 percent of all rental listings.

Craig Werley, president of Focus Real Estate Advisors in Coral Gables, who authored the study with Miami-based Goodkin Consulting, said that even though people are moving in, that doesn’t mean the market is healthy. But it does point to a recovery that may come sooner than what many people think.

Based on the current absorption rate and the likelihood of further price declines, Werley said healthy occupancy rates of 95 to 98 percent could be seen in as little as three years.

”There is an inflow, and while there will be some further discounting of prices that will undoubtedly take place with the existing inventory,” Werley said, “there is a demand for this affordable product.”

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Jun 02

The Sweet Life at the Chic Tip of South Beach

By Zilbert Realty Group - Miami Beach Real Estate Market Updates No Comments »

By MARY BILLARD – New York Times

IT was a sunny Monday afternoon, and the scene around the yellow-and-orange cabanas at La Piaggia Beach Club was laid-back and effortlessly chic. Waiters brought trays of chilled rosé, goose pâté and “les mini cheeseburgers.” Women, wearing cunning coverups that manage to cover up nothing, dipped their manicured feet into the sand.

A few attractive young bodies were leisurely sunning near the saltwater pool, but nobody was in the pool itself. It was just for show, as was the plaque on the weathered wooden front door falsely stating that the club was “members only.” With the blue waters and swaying palms, the scene at La Piaggia could almost be mistaken for St. Barts or Mustique. Except, of course, for the surrounding sea wall of beachfront condos that screamed Miami.

In recent years, the triangular district at the tip of South Beach has emerged as a chic yet relaxed alternative to the typical Ocean Drive frenzy farther north. It even has a hip moniker, SoFi, which stands for South of Fifth Street — the four-lane thoroughfare that cleaves the neighborhood from the rest of the area.

North of Fifth Street, club kids work off their hangovers at Ocean Drive madhouses like News Cafe, bachelorettes prowl for gallon-size frozen margaritas (with four straws) and busloads of tourists search for the Versace mansion. All the while, menu-wielding hostesses canvass passersby with two-for-one drink specials.

In contrast, the area south of Fifth almost feels like a gated resort — though, in reality, anyone can waltz in. More European than Daytona Beach-at-spring-break, the SoFi scene skews a little older, a little more arrived than arriviste, cushioned by the base of wealthy second-home owners from the area’s gleaming condos.

And just as downtown Manhattanites joke that they get nosebleeds north of 14th Street, SoFi residents have taken to saying that there is no reason to go above Fifth to socialize anymore.

For brunch-time gossip, locals pull up to Big Pink, a nouveau diner that functions like a general store. At sunset, Smith & Wollensky or Monty’s South Beach are the big draws, particularly on Fridays, to watch the looming cruise ships slowly move out to sea. If the wind is blowing in the right direction, strains of “Y.M.C.A.” or Bob Marley can be heard.

And for a crazier party atmosphere, there is the splashy Nikki Beach Club, where bronze bodies lounge on daybeds under private canopies, bottles of Piper-Heidsieck chill in ice buckets, and young women in turquoise Pocahontas-fringed bikinis dance to entertain guests.

While the beauty of South Beach is often obscured by the partying, SoFi denizens also make the most of this picturesque barrier island. Every day at 7 a.m. and 6 p.m., yogis meet for mixed-level classes at the pink lifeguard stand at the Third Street Beach, mastering their downward dogs in the ocean breezes while following the trajectory of the sun.

More yogis can be found at South Pointe Park, a 17.5-acre esplanade that reopened on the island’s southern tip in March after a $22 million renovation. During the day, the park is filled with young families, bikers and dog walkers — all enjoying the dune grass blowing in the breeze, wildflowers sprouting and waves lapping on the shore. At night, 18 light towers glow in different colors, illuminating an area that was once a scary needle park.

SoFi rose from the ashes of urban decay. For decades, it was a dangerous no man’s land — the only destination worth visiting probably was the venerable Joe’s Stone Crab, where diners ate secure in the knowledge that valets guarded their shiny Cadillacs.

Then, starting in the mid-1990s, as the revival of South Beach attracted developers to the natural beauty of the point, towering condos with multimillion-dollar apartments began to appear. Restaurants and other businesses trickled back in.

Among the pioneers was Myles Chefetz, who opened Nemo, a trendy spot with an outdoor courtyard, in 1995. “There were no signs of life,” said Mr. Chefetz, who now runs numerous restaurants and other hotspots in SoFi, and is known as the Sultan of South Fifth. “Nemo is in a former bum-laden crack hotel where they used to film ‘Miami Vice.’ ”

Hotels soon followed. Today, top-notch accommodations include a beachfront Marriott and the all-suite Hilton Bentley Miami/South Beach. They are joined this month by the Sense South Beach, a luxury boutique hotel with 18 rooms and a rooftop pool.

More hotels are on their way. In August, Mr. Chefetz is opening the Prime Hotel, a modern 14-unit resort next to Brown’s Hotel. Opening rates are set at $300 a night.

Not that SoFi is sleepy the rest of year; the demand for a happening scene is a Miami imperative. On a warm Thursday evening in late April, a crush of leggy patrons in miniskirts and high heels and their older boyfriends converged at the outdoor tables at Prime Italian, an offshoot of Prime One Twelve, the stylish steakhouse in Brown’s Hotel. (Both are owned by Mr. Chefetz.)

Prime Italian, with its clubby macho décor, is a restaurant conceived to separate pro athletes from their money via a culinary invention called Kobe meatballs. A crowd of overdressed and underdressed clamored for tables near the bar, where, recently, the N.B.A. star Antoine Walker sat watching a Celtics-Bulls playoff game. The scene prompted one visitor to tag it as Bentleyville in honor of the gridlock of $300,000 cars.

Yes, it may be SoFi. But it’s still South Beach.

IF YOU GO

WHERE TO DRINK

Ted’s Hideaway Tavern (124 Second Street, 305-532-9869), a dive bar for connoisseurs and after-work waiters, is open from noon to 5 a.m.

Monty’s South Beach (300 Alton Road, 305-672-1148; www.montyssouthbeach.com) is an overgrown tiki hut overlooking the marina, which draws everyone from speedboaters and weathered fisherman to surfers and young women in hip maxi dresses.

WHERE TO EAT

Smith & Wollensky (1 Washington Avenue; 305-673-2800, www.smithandwollenskysteakhouses.com) is called “Smith & Wo” by the chic and coiffed crowd, who all sport designer sunglasses (waiters included).

Joe’s Stone Crab (11 Washington Avenue, 305-673-0365; www.joesstonecrab.com) is a 96-year-old institution, so expect hours of waiting (no reservations taken), although greasing the maître d’ is a local art form. An order of large stone crab claws is $39.95 in the summer.

Prime One Twelve (112 Ocean Drive, 305-532-8112; www.prime112.com) is the original SoFi steakhouse. A 48-ounce Porterhouse for two is $88. Across the street is the new Prime Italian (101 Ocean Drive, 305-695-8484), where the spaghetti with Kobe meatballs is $35. On weekends, the street between the two is a block party.

Big Pink (157 Collins Avenue, 305-531-0888; www.bigpinkrestaurant.com) is SoFi’s commissary. Pizza from $9.95; a classic burger is $10.25.

La Piaggia Beach Club (1000 South Pointe Drive; 305-674-0647; www.lapiaggiabeach.com) offers a European vibe, including the menu. Tuna tartar with mango and soy sauce dressing is $21.50.

WHERE TO STAY

Hotel St. Augustine (347 Washington Avenue; 305-532-0570; www.hotelstaugustine.com) is an Art Deco-sleek boutique hotel, two blocks from the beach, but has no restaurant or pool. Summer rates start at $139.

South Beach Marriott (161 Ocean Drive; 305-536-7700: www.miamibeachmarriott.com) is directly on the beach with an Art Deco-style lobby and a Starbucks that’s filled with dog walkers. Summer rates average about $230.

Sense South Beach Hotel (400 Ocean Drive; 305-538-5529; www.sensesobe.com) is a gorgeous new hotel with a rooftop pool and ocean views. Rates start at $119 in the summer.

SURF AND TURF

F1rst (100 Collins Avenue; 305-397-8103; www.f1rstshop.com) is the shop for all things surf-related. Stand-up paddle board rentals, $30 for 90 minutes; surfboards, $20.

Miami Beach Bicycle Center (601 Fifth Street; 305-674-0150; www.bikemiamibeach.com) has bike rentals from $8 an hour to $80 a week.

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