What is housing inventory?

In the real estate marketplace real property is our inventory and in South Florida we have just about everything you can imagine, from beach front condos to single family waterfront homes to multifamily investment properties. Not only is our inventory diverse, but we have something to offer everyone no matter what your price range. When we analyze our current residential inventory for example, we like to look at condos and single family homes in a variety of price ranges.  We start by defining our geographic area. For the purposes of our discussion we will take a look at our backyard – Northeast Broward County including Fort Lauderdale, Lauderdale-By-The-Sea, Lighthouse Point, Wilton Manors, Pompano Beach and Deerfield Beach. Based on the number of current properties for sale and the average number of listings sold per month (absorption rate) we can determine our “months of supply” for our area. Months of supply is defined as how long it would take to sell all of the current inventory in the marketplace if no new listings came on the market. For example, looking at the data below and based on current absorption rates, it would take us 6.3 months to sell all of the current single family inventory between $300,000 and $399,999. We consider 6 months of supply to be an equilibrium market, so this is a good example of a market that is neither favoring the sellers or the buyers. Less than 6 months of supply is a seller’s market and more than 6 months is a buyers market. See the inventory chart below for your price range and see where you stand.

Inside the Numbers:

• In NE Broward County right now it is a seller’s market for single family homes under $400,000 and for condos the seller’s market is under $200,000. Above these price levels it is technically a buyer’s market, but there are plenty of exceptions.
• Anything decent under $100,000 is in extremely short supply and you can expect multiple offers for even average properties, especially foreclosures that are priced below market values. Be careful, don’t over bid!
• Single family homes over $1,000,000 have a supply of 28.6 months. That is almost 2 1/2 years! Condos over $900,000 are even worse off.
• Its not all about price however. Property location is also important to inventory analysis. For example, decent waterfront single family homes are in short supply, especially under $700k.
• Another segment in short supply is “newer” condominiums. Condos built after 1997 are in extremely short supply, especially those under $400,000.
• Overpriced inventory can skew the numbers and this is especially true in the higher price ranges. Look for downward pricing pressure in both single family and condominiums over $1 million where many properties are overpriced.
• Shadow inventory is defined as bank owned inventory that is not for sale yet. If the banks (this is a big if) start to efficiently release their inventory into the marketplace this should cause some stabilization of our inventory levels. If not, we will continue to see inventory depletion and rising prices, especially in the lower price ranges and on the waterfront.

Who needs this information?

• Buyers should study inventory levels before venturing into the marketplace and making an offer. For example, if you are looking for waterfront property under $400,000 right now in Broward County then be prepared to offer close to full price when the right property comes available. If you’re looking for a condo over $1,000,000 then take your time and don’t be afraid to make a low offer. There is almost 3 years of inventory to choose from.
• Sellers need inventory information for their neighborhood to effectively price their property for sale. For seller’s in the lower price ranges, be careful how you price or you may leave money on the table. Of course, unless you sell for cash, the appraisal could be an issue so be careful about pricing too high. In some cases you may be better off waiting or renting your property out before selling.

Contact us for a custom inventory report for your property

Proudly Sponsored by By The Sea Realty

Beach Cleanup: Saturday, March 4th at 9:00 AM at the Commercial Blvd. Pavilion by Anglins Fishing Pier

By The Sea Realty is proud to sponsor this Saturday’s beach cleanup. We love our beaches and keeping them clean is a priority for those of us who live and work in this beautiful community. Saturday morning’s forecast is low 70′s and party cloudy – perfect for enjoying a walk on the beach. Stick around and enjoy breakfast in one of our many local restaurants. No need to bring anything, we provide bags, gloves and bottled water. Thank you in advance for your support. We look forward to seeing everyone on Saturday.

Life’s a Beach, Keep in Clean!

You know how this works. You commit to a personal goal to start on New Years Day – sometimes you follow through, sometimes you don’t. Here are some New Years resolutions that will take your real estate career to the next level. Accomplishing these goals shouldn’t be difficult, especially if you write down your goals and create a business plan. Ask your Broker for help with this, or ask me.

> Get a Tablet Device
I encourage all my agents to get some sort of tablet device with 3G capabilities. When you are on the road as much as we are accessing the Internet is crucial to providing your clients with the best information. Best of all, you will set yourself apart and your clients will be impressed. I provide my agents with tablet-ready listing presentations and browser-based applications that are accessible on all platforms.  Which tablet should you buy? While the iPad is clearly the leader and the best tablet device on the market you can get away with less expensive devices for work-only applications. In addition to iPad, you should also consider the Touchpad and Galaxy devices. As long as you can open a PDF file and a web browser you should have everything you need to be a tablet-enabled agent. If you absolutely must have the best technology or if you already have an iPhone, then you may not be happy with anything but the iPad.

> Automate your business with CRM
Customer Relationship Management (CRM) software isn’t just for managing contacts anymore. A good CRM system will allow you to manage thousands of prospects, keep in touch with your sphere of influence, set reminders, send bulk email, store documents and manage your transactions from start to close. Only 17% of REALTORS use a CRM on a daily basis. Join the best agents in the business and utilize the latest technology. For a demo of the By The Sea Realty CRM give us a call.

> Get Educated
The market is changing and you need to keep up. Take advantage of the training at your company and local board of REALTORS®. Consider getting a certification or designation and ask your management if they reimburse for any educational programs. Don’t just get a designation so you can add some letters to your business card. Get the designation for the education and then tell your clients what you have learned and why they should work with you. At By The Sea Realty we encourage continuing education and we offer regular training on topics like networking, technology, business planning and social media.

> Become a Local Expert
In today’s real estate market, it is not just who you know, but what you know. Build your network and attract new customers with the efficient delivery of quality information. Contribute to a blog, send a regular newsletter, keep your web site updated and provide your clients with local market data that matters to them. Knowing your market is your business; sharing that information is the key to growing it. These activities take time and money to be successful, so if your company doesn’t support you, consider moving your business or outsourcing.

> Get in the Cloud and Go Mobile
Can you access your email, calendar and contacts wherever you are including your cell phone or mobile device? If not, try moving your business to the “Cloud” where your mobile devices can easily synchronize with your other computers. Access your CRM and MLS on the go. Stay in touch with your entire database without lugging your laptop around. Today’s mobile devices can even scan and email documents, provide directions to properties and calculate mortgage payments. Setting up all your devices in the cloud can be a challenge so ask your management for assistance in choosing a device and synchronizing with your company systems.

> Move Your Business
Where you hang your license is more important than ever. If you want to take your business to the next level and your company isn’t proving the support to get you there, it is probably time for a change. From global franchises to local boutiques there are plenty of options for agents today. Interview with a few different organizations and make a move now before the market picks up. Don’t just focus on commission split; make sure your new company has something more to offer and is centrally located in your target marketplace.

> Get Social
Social media is here to stay and you should consider implementing some basics into your business. There are thousands of social media web sites, but only a few are really worth your time. For starters, you already have a Facebook account, don’t you? Be careful – you don’t want to spam your friends and start “over-marketing” or you risk alienating yourself in the largest social network on the planet. But, it can’t hurt to make sure your friends know what you do for a living and if your company has a Facebook page, consider being a contributor and adding content. Another site you should consider spending some time on is LinkedIn. Its free and at the very least you should have a profile that can be indexed by the search engines. Think of it as an online resume for the world to see. Connect with me on LinkedIn and I’ll share my “LinkedIn for Real Estate Professionals” presentation with you.

Profile: www.linkedin.com/in/richbarnhart

Are you considering a bigger change in 2012?

We are looking for experienced agents and brokers who share our vision for a higher level of customer service in the real estate industry. We offer cutting edge technology, training and marketing support that makes your business more efficient and provides your customers with better information. If you are looking for a unique company where you can take your business to the next level then By The Sea Realty may be a good fit.

Call Rich Barnhart at 954-351-7007 or click here for more information

Florida rates drop well below 4% this week

4 months ago I blogged about mortgage rates hitting a 50 year low. Now, with properties values at 2003 levels and mortgage rates even lower (30 year fixed averaging 3.7% in Florida today) we are experiencing an incredible opportunity in an otherwise troublesome real estate market. Analysts continue to discuss whether we are at the absolute bottom and whether interest rates can go any lower and my answer is maybe and probably not. Here are some thoughts for those of you struggling with a buy decision:

• It is almost impossible to time the market perfectly. If you are waiting for the absolute bottom you will miss it. Conservative real estate investors stay ahead of the market, buying on the way down and selling on the way up. Good properties in our area are already hard to come by and when priced at market value they sell quickly, often with multiple offers. I see too many buyers miss out on opportunities because they are under bidding or waiting for values to go lower. You can’t make any money in real estate if you don’t buy anything.
• If you can qualify for a mortgage, then you should definitely consider borrowing money for your purchase. With rates so low most investors, even if they have the cash, are trying to finance at least a portion of their purchase. They can then use their cash for another property or consider other investments. Let me be clear – I’m not suggesting that you should finance your real estate purchase and put all your cash in the stock market. Discuss your investment options with your financial planner and make sure you keep 6 months to a year of mortgage payments in the bank just in case.
• Investors who have a higher tolerance for risk are considering more aggressive strategies. For example, did you know you can borrow money against your investment portfolio, sometimes at rates below prime? For short term investments like rehab and resell (fix and flip), this is a perfect way to keep your money in other investments like the stock market while buying and selling real estate with borrowed funds. A good financial planner or stock broker can assist you with these transactions, but please consider maintaining a low loan to value (or high equity) in your real estate investment in case you need to sell quickly.
• Finally, 2 things are inevitable – property values will go up and so will interest rates. Since most of us buy real estate for the long term then it is really hard to go wrong in today’s market. If you want to buy, but the bank won’t loan you money then consider seller financing or other alternative methods. For example, did you know that you can purchase real estate with your IRA? Your stock broker may not share this information with you because their company may not allow it, but specialized IRA custodians will allow you to buy investment property with a self-directed IRA. Don’t have an IRA? Start one or roll your 401k into a self directed plan. Ask your real estate broker if they are familiar with these types of transactions or stay tuned for a future blog post with more details.

Now is the time to buy in Fort Lauderdale

According to a report released by Realtor.com, Fort Lauderdale is number 5 on the list of the Top 10 Turnaround Towns in the country.  Other Florida towns that made the top 10 include Miami (1), Orlando (2), Fort Myers-Cape Coral (3), Sarasota-Bradenton (6) and Lakeland-Winterhaven (7). Obviously this is good news for Florida and Fort Lauderdale.

The report stated “A decrease in inventory coupled with an uptick in prices earns Fort Lauderdale the number five spot on the report. Inventory decreased almost 38 percent year-over-year, according to Realtor.com’s October data report. Prices have fallen about 46 percent since 2006, but are now going up.”

Keep in mind, this report covers the entire Fort Lauderdale Market. If you’d like to see exactly what is happening in your neighborhood, check out our Local Market Watch Reports with specific data on 15 different segments within the Fort Lauderdale area.

View Fort Lauderdale Local Market Watch Reports Here

Read more at REALTOR.com

Official Veterans Day Poster for 2011

Happy Veterans Day from your Dedicated Real Estate Team at By The Sea Realty

In November 1919, President Wilson proclaimed November 11 as the first commemoration of Armistice Day with the following words:

“To us in America, the reflections of Armistice Day will be filled with solemn pride in the heroism of those who died in the country’s service and with gratitude for the victory, both because of the thing from which it has freed us and because of the opportunity it has given America to show her sympathy with peace and justice in the councils of the nations…”

Veterans Day Highlights and Events in the Fort Lauderdale Area:

• Free Car Washes for Vets all Day on Veterans Day at Lighthouse Car Wash
  1048 East Sample Rd, Pompano Beach, FL
  (954) 647-9559
  
• Happy Hour and Live Music at Aruba Beach Cafe
  4:00 to 7:00 PM – Lauderdale-By-The-Sea
  
• Other Deals and Free Meals for Vets
• Other Links:
• Veterans Day 2010
• VA Home Loan Information

CHECK OUT OUR TOP 10 LIST

Are you planning on going to the boat show? If so, here are some tips and additional information to help you with your planning.

BOAT SHOW TOP 10 PROPERTIES

Don’t miss the boat on the real estate market! If you are also considering a real estate purchase while in town for the show then here is a list of properties you may want to consider. Our list contains everything from Las Olas Mansions to waterfront condos with boat slips and we even have a vacant point lot on the Intracoastal waiting for you to build your own custom home. Do you have specific criteria for your boating dream house? Contact us for a custom search or to setup a property tour while you are in town. We can even arrange for a tour by boat so you can truly experience what the Venice of America has to offer. If you’ve never owned waterfront property before, check out our Boater’s Guide to Buying Property.

• Top 10 Boating Properties
• Waterfront Buyer’s Guide
• Intracoastal Point Lot – Pompano Beach

BOAT SHOW TIPS – Tickets, parking, etc.

For starters, you can buy tickets at the show for $18 for one day, $34 for a 2 day pass or $90 for a 5 day pass. If you buy online you save $2. The busiest days are Saturday and Sunday, so if you don’t like the crowds try to go Thursday, Friday morning, or Monday. The Primetime Preview on Thursday is more expensive ($34), but worth it if you want the first chance to buy your dream boat. Yes, the good ones do sell early in the show. Parking at Bahia Mar is difficult and expensive, so consider taking a taxi if you want to be at the marina. Another good option is to park at the conference center and take the water shuttle. Here is the full schedule and link to the Show Management web site:

BOAT SHOW SCHEDULE
October 27-31, 2011

Prime Time Preview:
Thurs. Oct 27, 10am – 7pm

General Admission:
Fri. Oct 28, 10am – 7pm
Sat. Oct 29, 10am – 7pm
Sun. Oct 30, 10am – 7pm
Mon. Oct 31, 10am – 5pm

Go to the Show Management web site for more information

Azalea Point - Fabulous Intracoastal Views

RARE OPPORTUNITY:
Intracoastal Point Lot in Pompano Beach

Opportunities like this don’t come often. This is one of the few buildable point lots in all of Broward County. Just 2 miles from Hillsboro Inlet, this could be the site of your new custom home with plenty of room for up to a 90 foot yacht on the wide Azalea Canal.

View Property Flyer

Ask us for a free CMA of your property

How’s the market? People always ask us “How’s the market?”, but what they really want to know is “How’s the market in my neighborhood?” and “What is my home worth?” The answer to this question is not that simple, especially in today’s challenging marketplace. Your best bet is to have a qualified real estate professional provide you with a Comparative Market Analysis (CMA). A good CMA can be as informative as an actual appraisal and most reports will include recently sold comparable properties and a projected sales price range. Armed with this information and with the help of a good agent you can price your property appropriately and compete for buyers in your marketplace.

What about Automated Valuation Models? Some web sites like Zillow.com have automated valuation models or AVM (Zestimate®). While these models may be a good starting point they are no replacement for a real CMA or appraisal. Do you really trust a computer to value your property?

Is my Assessed Value Accurate? Your county property appraiser will estimate your “just value” every year. While this value is supposed to be representative of your true market value (as of the first of the year), it is not necessarily what your property would sell for. Make sure you consider exemptions, active competitive properties and more recent sales when evaluating your assessed value.

Get Started Today:

• Check out your Local Market Watch for your neighborhood
• Then request a free CMA from one of our local specialists

Cleanup sponsored by By The Sea Realty

Help keep our beaches clean, SCUBA dive under the pier and meet your Congressman, all in one morning at Lauderdale-By-The-Sea this Saturday!

We love our beaches in Lauderdale-By-The-Sea and we pride ourselves on keeping them clean. On the first Saturday of every month volunteers gather at the Pavilion to walk our beach and pick up what others leave behind. As the sponsor of this month’s beach cleanup, By The Sea Realty will be providing garbage bags, gloves and bottled water for all volunteers. The town of Lauderdale-By-The-Sea will provide other refreshments and our wonderful chamber of commerce along with other members of the business community will be doing their part as well. Volunteers are encouraged to join us at 9:00 AM this Saturday at the Commercial Boulevard pavilion next to Anglin’s Fishing Pier. If you love our town too then please join us for a fun morning at the beach. The more the merrier!

SCUBA Divers Will Clean the Pier starting @ 7:00 AM

Divers needed to help clean the Anglins Pier reef

Gold Coast Scuba in Lauderdale-By-The-Sea has organized a pier and reef cleanup to begin at 7:00 AM before the beach cleanup. In a coordinated effort between divers and local fisherman, garbage under the pier will be brought to the surface and taken away by boat. If you are interested in joining the cleanup dive please contact Gold Coast Scuba for details at (954) 616-5909 or visit their Meetup web site at http://www.meetup.com/goldcoastscuba/  As of today there are 26 spots left. Divers will meet at Gold Coast Scuba, 229 Commercial Blvd., at 7:00 AM for a briefing before heading to the pier.

Meet your Congressman

We are happy to announce that Congressman Allen West of Florida Congressional District 22 will be joining us on Saturday (schedule allowing). Congressman West is an avid SCUBA diver and will be participating in both the pier cleanup and the beach cleanup. For an opportunity to meet the Congressman please try to arrive at the pavilion by 9:00 AM.

Enter our Raffle – Lots of great prizes

There will be a raffle at the By The Sea Realty booth. Entry is free and prizes include an Introduction to SCUBA class from Gold Coast Scuba, one month of free parking from the Windjammer Inn, a free large pizza from Pa D’s Pizza, official beach cleanup t-shirts and two $25 gift certificates from the Village Grill. Stop by our booth to enter the raffle, the drawing will be at 9:30. You do not need to be present to win, but we hope you’ll stick around town to visit some of our tremendous shops and restaurants after the cleanup.

Tired of Cigarette Butts on the beach?

Our beaches are not an ashtray

John Boutin of the Windjammer Resort has created a unique solution for keeping cigarette butt pollution to a minimum. His answer is providing his guests with a decorative bucket filled with sand that can be used as an ashtray on the beach and poolside. Stop by our booth on Saturday to learn more about John’s “The Butt Stops Here” initiative and too see some of his buckets. We are hoping the initiative will catch on and that more beachfront businesses will participate in the program.

Related Links and more information:

Windjammer Resort: http://www.windjammerresort.com

Gold Coast Scuba: http://www.meetup.com/goldcoastscuba/

Congressman Allen West: http://west.house.gov/

LBTS Chamber of Commerce: http://www.lbts.com/

Town of Lauderdale-By-The-Sea: http://www.lauderdalebythesea-fl.gov/

Contact Us for more information

Don’t get me wrong, I understand we need to address our debt crisis (and I certainly am biased), but any economist will tell you that real estate investment is critical to an economic recovery. I don’t know about you, but I’m not willing to risk another recession and continued high unemployment. Congress will be asked to vote on this by December 23rd and will be anxious to start their holiday break. Lets make sure they make the right decision. Please call or write your Congressmen and ask them to think about our real estate market and what it means to all Americans.