Existing U.S. home sales reach three-year high

Existing home sales across the U.S. grew 0.8 percent in February over the previous month, pushing them to the highest level since November 2009, according to National Association of Realtors data cited by the Wall Street Journal. The slight increase raised the seasonally adjusted annual rate to 4.98 million — 10.2 percent higher than in February 2012 — for the 20th consecutive month of year-over-year gains. The nation’s inventory also increased to 1.94 million, a 9.6 percent increase from January. And while the huge inventory of homes on the market following the recession had been a drag on the market, the increased inventory is likely coming from homeowners taking advantage of higher home prices, according to the Journal. “Now that you’ve had a year of price gains, some uptick in the level of inventory would reflect a better housing market. In some sense it’s a positive sign,” Michael Gapen, an economist at Barclays, said. ** from Wall Street Journal . Christopher Cameron

2013 Home Buying Season Kicks Off Early

Home prices are rising, the number of homes for-sale is showing a slight increase, and homes are selling faster—all signs that spring is in the air in real estate, according to the latest MLS data released by realtor.com Nationwide, median list prices continue to tick up, reaching $189,900 in February. Inventories last month increased 1.15 percent month-over-month, after recently hitting record lows. Also, homes are selling faster with the median age of inventory at 98 days, a 9.26 percent drop from the previous month. “As we enter the busiest time of the year for home buyers and sellers, our latest housing trend data shows just how competitive the market is with a significant housing recovery well underway,” says Steve Berkowitz, chief executive officer of Move Inc. “Looking ahead, we can expect the amount of inventory to increase this spring along with higher list prices as sellers become more comfortable with the market conditions.” Median list prices were up 5 percent or more in 51 markets on a year-over-year basis, according to realtor.com®. California markets are seeing some of the highest increases in list prices as well as some of the largest declines in for-sale inventory. Other top performing markets include Phoenix, Seattle, and Denver, according to realtor.com®. “However, many smaller industrialized markets in the Midwest and the Northeast registered year-over-year price declines, as did Philadelphia, Chicago, and New York City,” Lexie Puckett reports in a recent realtor.com® blog post. “While the number of markets experiencing year-over-year list price declines had been increasing, this pattern appears to be turning around as home list prices increased in 78 markets last month on a year-over-year basis and declined in 39.” **information from National Association of Realtors e-magazine.

Global Luxury Market Is Booming

DAILY REAL ESTATE NEWS | TUESDAY, MARCH 12, 2013 The international luxury real estate market appears to be relatively immune to economic headwinds, according to a report by Christie International Real Estate, a luxury real estate affiliate network. Christie’s International Real Estate Index monitors record sales prices, prices per square foot, among other indicators in the global luxury real estate market. London emerged at the top of the network’s index, boasting a record sales price of more than $121 million for a residential property in 2012. In New York, an $88 million sale allowed it to come in at No. 2. The international luxury market is showing strong momentum, “driven by scarcity of quality inventory and demand from international buyers in many of the world's top destinations,” says Bonnie Stone Sellers, CEO of Christie's International Real Estate. There are more billionaires worldwide now than there were in 2008. What’s more, the percentage of worldwide millionaires has grown by 55 percent since 2000, according to the report. As wealth has grown so has the number of home buyers making housing deals in all cash. For example, the report notes that nearly all of the transactions in Los Angeles above $5 million were cash deals; 90 percent in New York; and 70 percent in San Francisco and Miami. **info form: “Global luxury real estate market showing 'strong momentum',” Inman News (March 11, 2013) Thinking on Selling your Luxury Real Estate ? contact us for a confidential free market analysis. Espie Franky Luxury Realtor 305.283.5868

Zagat restaurants offering Brunches

This is an invitation to All Exquisite restaurants in the Coral Gables, South Miami and Coconut Grove areas offering BRUNCHES on the weekends to Share their information with us ! The following are All +ZAGAT rated restaurants Fontana Italian | Coral Gables 1200 Anastasia Ave. (Columbus Blvd.) Coral Gables, FL 305-913-3200 Bizcaya American, Mediterranean | Coconut Grove 3300 SW 27th Ave. (bet. Bayshore Dr. & Tigertail Ave.) Coconut Grove, FL 305-644-4675 La Palma Ristorante Tuscan | Coral Gables 116 Alhambra Circle (Galiano St.) Coral Gables, FL 305-445-8777 La Camaronera Seafood | Little Havana 1952 W. Flagler St. (22nd Ave.) Miami, FL 305-642-3322 Le Bouchon du Grove French (Bistro) | Coconut Grove 3430 Main Hwy. (Grand Ave.) Coconut Grove, FL 305-448-6060 George's in the Grove French (Bistro), Mediterranean | Coconut Grove 3145 Commodore Plaza (Main Hwy.) Coconut Grove, FL 305-444-7878 Fox's Sherron Inn American (Traditional) | South Miami 6030 S. Dixie Hwy. (Sunset Dr.) South Miami, FL 305-661-9201 Jaguar Pan-Latin | Coconut Grove 3067 Grand Ave. (McFarlane Rd.) Coconut Grove, FL 305-444-0216 Mediterranean, Middle Eastern, Sushi | Coral Gables 360 San Lorenzo Ave. (SW 42nd Ave.) Coral Gables, FL 305-447-6555

This weeks priciest Listing & Closed property....

*Today’s priciest new listing is a six-bedroom, six-bathroom, 6,300-square-foot single-family home that is asking $4.89 million, according to Condo Vultures. The waterfront residence, which is located at 435 Royal Plaza Drive, features Brazilian walnut floors and a heated pool and spa. (Condo Vultures‘ data includes condos and single-family listings in the main metropolitan areas of Miami, Fort Lauderdale). **A rendering of the penthouse at the Residences at The Miami Beach EDITION A combined-unit penthouse at the Residences at the Miami Beach EDITION has closed for $34 million, making it one of Miami’s priciest penthouse sales ever. Penthouses 1601 and 1602 in the the building were combined to form a 16,271-square-foot triplex featuring eight bedrooms and eight and three-half bathrooms. The building offers multiple pools and outdoor kitchens. “This record-breaking sale exemplifies the wonderful flexibility that Miami Beach offers. There will be a nearly 360 degree view of our beautiful city.” –Christopher Cameron ** info from The Real Deal, South Florida Real Estate Magazine Ready to Sell, Purchase, Lease....Luxury Real Estate in South Florida ? Give us a call for a Confidential market analysis. ESPIE FRANKY Realtor

Selling Miami Estates Listings for Your Consideration !!

Redlands area, over 5 acres of land with fruit trees & herbal garden. 4/2 Main house, 2/1 cottage,Stable for 3 horses and more... Pinecrest starters home. 3 bedrooms and 2 full bathrooms on a 10,000 square foot lot. Selling Miami Estates presents a Ranch Style architecture house nested in an acre lot. Inlcules a Cottage and Pool. South Miami Area. FREE STANDING WAREHOUSE WIH 7,985 SQFT ON A 13,318 SQFT LOT, PRIVATE OFFICES, ZONED 71/ INDUSTRIAL, RECENT 4O YEAR INSPECTION WITH UPDATE 3 PHASE ELECTRICAL SERVICE. Selling Miami Estates is offering to your consideration the entire 4th Floor of "Grove Place" office building ! Property is currently divided into 2 offices and Both are Tenant Occupied !! Great opportunity to own this 1930 sq ft office in the heart of Coconut Grove business district - Laminate floor - key secure elevator - 5 assigned parking spaces - balconies overlooking lush Grove's vegetation. Nice home located in the family oriented subdivision of Dadeland Park in Kings Creek. This is a short sale. Transaction terms and commissions require lender approval. Seller Motivated...Bring Offers !! Located in the prestigious Cochrane Manor; the home features split bedroom floor plan with a family room on each wing; formal dining room with bay window; gourmet kitchen with island & breakfast nook; full master-suite on the west side with walk-in-closet & spa; ample living room with French doors connecting to a screened outdoor entertainment area with oversize pool & built-in bar; Nested on a Builder's Acre ample space for tennis & basketball court.

updates on JUMBO LOANS

Home sales and prices are rising briskly in those neighborhoods where the well-heeled like to plant their mailboxes: along Chicago's north shore, in the San Francisco Bay area and in the haute Hamptons. Sales of properties worth between $750,000 and $1 million are up 38.7 percent over a year ago; $1 million-plus property sales are up 25.7 percent, according to the National Association of Realtors. The luxury real estate revival is being fueled, in part, by another resurgence: so-called jumbo mortgages - those loans,typically over $417,000, that are too big to qualify for purchase by federal agencies, namely Fannie Mae and Freddie Mac. Jumbo loans are returning to the mortgage market after almost disappearing entirely in the wake of the credit crisis of 2008 and the real estate meltdown. Most lenders stopped making new jumbo loans when the private secondary market dried up in the credit crunch. Now the credit markets are comparatively stable. Lenders, who are only making these big loans to the most highly qualified borrowers, now see jumbos as a safe and profitable way to make money on their low-cost deposits. And secondary market investors are starting to regain their taste for these comparatively high-yielding loans. Moreover, once-pricey jumbo loans are being "The jumbo market may fare better than the overall mortgage market in 2013," Guy Cecala, publisher of Inside Mortgage Finance said. But he and other observers question whether the jumbo loan market can return to its past size without a full recovery in the secondary market, which is a fraction of its former self. And new mortgage regulations could limit lenders starting in 2014. "We are definitely enthusiastic," says Tom Wind, executive vice president of residential and consumer lending at EverBank Financial in Jacksonville, Florida. He sees growing investor demand for these loans allowing the market to grow. At current rates - roughly 0.23 percentage points above conventional mortgages - they provide nice yields for banks who want to keep the loans in their portfolios, too. For the four weeks ending February 22, new jumbo activity was up 60 percent from the same period a year ago, according to Mortgage Daily, a trade publication that has been consistently reporting year-over-year increases in jumbo activity. Even though loan volume is increasing, it is nowhere near 2007 levels, when the industry made $348 billion in jumbo loans. Last year,roughly $200 billion of jumbo mortgages were made, and Cecala says that he expects total 2013 volume to approach $220 billion. In some expensive markets, loans don't start being classified as jumbo until they exceed $625,500; that limit was even higher for part of 2007, meaning that the 2007 figure represents a smaller potential jumbo market and isn't directly comparable. Mortgage market leader Wells Fargo has increased its jumbo loan volume for three years straight, said Greg Gwizdz, an executive vice-president. In 2010, Wells Fargo issued a total of $10 billion in jumbo loans. That rose to $27 billion in 2011 and to $41 billion in 2012, with the average loan at $1 million, Gwizdz said. Less than half of jumbos tend to go to re-financings, while almost three quarters of conventional mortgages were for refinancings last year, Cecala said. That, too, should boost jumbo activity in 2013 as refis taper off and the housing market picks up. Better Deals, Narrowing Spreads Interest rates on jumbos have been approaching those of the so-called conforming loans, even though they don't have agency backing. In mid-February, for example, the average rate on 30-year fixed-rate jumbo loans was 3.98 percent while the average rate for 30-year conventional loans was 3.75 percent, making the spread between them just 0.23 percentage points, the Mortgage Bankers Association said. Pre-crisis, rates on jumbo loans were typically around 0.25 percentage points higher than those on conventional loans, says Keith Gumbinger of HSH Associates, a mortgage research firm in Pompton Plains, New Jersey. At the height of the financial crisis in December 2008, it hit 1.8 percentage points. "I just locked in a $900,000 loan at 3.5 percent," said Amy Slotnick, vice president of Fairway Independent Mortgage Corp., in Needham,Massachusetts. "I can't even get a conforming loan at that rate." Jumbos loans are priced well now because only the most qualified borrowers can get them. Lending standards, which were notoriously lax pre-crisis, have intensified as the loans have returned to market. "At one point all you needed was a pulse" says Matt Silver, director of the Chicago Association of Realtors, and a real estate agent who specializes in high end Chicago properties. "Now you have to have all of your ducks in a row." Those standards will get even more restrictive in 2014, when Consumer Financial Protection Bureau rules take effect. The CFP Brules are likely to kill the market for interest-only mortgages that had made up roughly 10 percent of the jumbo market, according to the Mortgage Bankers of America. The rules also offer lawsuit protection for lenders who require that borrowers keep their debt payments at 43 percent or less of monthly income. Rick Sharga, of Carrington Mortgage Holdings in Greenwich,Connecticut, said that could be problematic for the jumbo market, because many high-income and high net worth borrowers don't fit that guideline but still have plenty of money on hand to repay their loans. Today a borrower typically needs to put up 30 percent of equity, show a FICO credit score topping 760, provide years of tax records and prove that he or she has a year of mortgage payments in the bank. After meeting that stringent criteria, the typical jumbo borrower is probably a reasonable bet for a lender. "Not just a good risk,"says Slotnick. "A great risk." Mortgages 30 yr fixed 3.55% 3.13% 30 yr fixed jumbo 4.06% 3.88% 15 yr fixed 2.84% 2.71% 15 yr fixed jumbo 3.43% 3.28% 5/1 ARM 2.68% 2.52% 5/1 jumbo ARM 2.95% 2.83% Find personalized rates: Bankrate.com Secondary Market Pick Up Like many jumbo lenders, Wells has been keeping the loans it makes in its own portfolio instead of selling them off. "Holding a jumbo loan is an attractive investment for banks sitting on lots of low rate deposits," says Mike Fratantoni, vice president of research and economics at the Mortgage Bankers Association. But eventually, lenders will need to sell off those loans to raise more money to make loans.There has been some activity in the secondary market for these big loans - Redwood Trust Inc. led the way when it started packaging jumbos in 2010. Credit Suisse and Shellpoint Partners, a private mortgage-focused firm,have followed or made plans to do so, and JP Morgan Chase & Co is reportedly preparing its own jumbo-backed offering. But other investment firms, burned in the credit crisis, remain cautious. Indeed, back in 2007, 61.3 percent of jumbo loans were securitized, Cecala said. In the first 9 months of 2012, just 1.7 percent of jumbo loans were securitized, up from 0.4 percent in 2011 and 0.2 percent in 2010. Secondary market players andinvestors may come around as they see how the jumbo bet has paid off for Redwood - the real estate investment trust's share price is up roughly 96 percent since December 31, 2011.Redwood itself plans to buy and package $7 billion in jumbo loans in 2013, more than triple the $2 billion it securitized in 2012. Without more Redwood-like deals,lenders - and particularly smaller banks like Everbank - will run out of cash to lend to jumbo borrowers. If rates rise, they will have other places to find yield. Says HSH's Gumbinger: "There's no doubt (jumbos) are profitable today. But when you're sitting on $100 million in mortgages yielding 4 percent and you can use that capital to earn 6 or 7 or 8 percent? You're going to have to liquefy them somehow." ** Info from National Association of Realtors e-magazine 2-2013