Miami Metro Median Home Price Is Stable?

Below is a chart that shows the trends for median home price and home sales for the Miami Metro area from January 2007 through August 2011.

It appears since the beginning of 2009 that the median home price has stablized. That is some good news, unfortunately though home sales are flat. So it definitely seems to be a good news - bad news situation. Things don't seem to be getting any worse but we don't see rapid improvement either. Stay tuned for more updates on this blog.

Palm Beach Sales Dip Despite Price Stabilization

Despite a nice stabilization of median home prices in recent months, home sales are continuing to drop in Palm Beach County, Florida. The chart below shows the trend for median home prices and homes sales from December 2009 through November 2010.

This will be a good geographic to monitor over the next six months to see what happens in the Spring 2011. Check back with our blog over the next few months to see if things improve for this area.

Times Are Tough in Miami

The Conforming loan originations for Miami have dropped by over 50% when comparing September 2009 vs. September 2008.

Click on the image below for a larger view.

This market has probably not reached the bottom yet. Some estimates are suggesting that the median home price in Miami could drop another 30% by next June. Let us hope they are wrong. We will continue to monitor this market over the next six to eight months.

Mortgage Nostalgia, Miami Style

Click Chart for Larger View and More Statistics

Looking back four years ago, the market share data report shown above describes conventional purchase mortgages in Miami metropolitan area from April 2005 through June 2005. This was a peak time in the housing boom and a peak time for sub prime. It was a great time to be a mortgage originator.

The lender names in the report are almost a list of who headed to the graveyard. Eight of these companies are no longer in business. Two of the four leading lenders merged into mega lenders.

Note some ratios such as adjustable rate mortgages to total originations or the proportion of high loan to value mortgages. Today, most mortgage markets rarely show high incidences of adjustable rate mortgages or high loan to value ratios.

Declare Disaster to Pay Your Mortgage?

The idea is no far fetched. According to an Associated Press report found on MSNBC's web site, Saint Lucie County Florida Commissioner Douglas Coward argues:

The declaration would act like a mini-stimulus plan, giving government officials access to a $17.5 million county fund usually reserved for natural disasters. The county would be able to put some of that money toward shovel-ready construction projects and loosen the bidding requirements so that local contractors got the jobs. That, in turn, could enable residents to pay their mortgages and stave off foreclosure.

It sure is ruff in Saint Lucie!

Mortgage Sales Tanking in Miami Metro

We know about all the vacant condos in Miami. The lack of real estate sales results in a lack of mortgage originations. Mortgage sales declined more than 50 percent in 2008 (first quarter) versus 2007. American Home Mortgage and First Magnus performed well in this market in early 2007. The other mortgage companies did not benefit from American Home and First Magnus leaving the business.

If someone reminds me, I'll post the second quarter for Miami when I obtain more complete data.