South Florida expert panel from left: Ron Kriss of Akerman Senterfitt;
Bill Yahn from the Corcoran Group; Cynthia Shelton, president of
Florida Realtors; Jack McCabe, CEO of McCabe Research and Consulting;
Jay Massirman of Rivergate Companies

Most of South Florida’s real estate industry won’t be sorry to say goodbye to 2009 tonight. Once-ambitious developers saw their empty condos sold in bulk at deep discounts and unloaded incomplete projects in foreclosure auctions or deeds in lieu of foreclosure. Caving under the weight of their troubled commercial real estate portfolios, regional banks failed by the dozens. The indefatigable flood of residential foreclosures bestowed the courts with an unmanageable case load, clogging the system. For homeowners who managed to stay current on their mortgage payments, toxic Chinese drywall rendered many of their properties both dangerous and worthless.

But as the handful of hours left in this tumultuous year for real estate wind down, many are wondering whether 2010 will be any better. The Real Deal turned to a panel of South Florida real estate experts to find out what they’re predicting for 2010. [more]

Unsold new condominiums and single-family homes are becoming more popular as
rental properties, driving up vacancy rates at apartment complexes. According to a study by Reis, a New York real estate research
firm, national apartment vacancy rates were at 7.5 percent in the
April-to-June period, up from 6.1 percent a year earlier. Of the 79
markets tracked by Reis, 45 showed an increase in vacancies. These numbers are in line with those of South Florida apartment
complexes. According to McCabe Research and Consulting, a Deerfield
Beach company, in the second quarter of 2009, large apartment complexes
in Miami-Dade County had a 7.3 percent vacancy rate, Broward County was
at 7.9 percent and Palm Beach County was at 11.2 percent. [more]

Almost 2 million U.S. homes entered foreclosure in the first half of the year. Mike Larson, housing analyst with Weiss Research, and Jack McCabe of McCabe Research and Consulting spoke on CNBC about the ways in which rising unemployment and falling home prices are contributing to foreclosure numbers. McCabe said he sees no evidence that government mortgage modification programs are having a significant impact, and Larson said that’s partly because lenders are unwilling to cut the principal amounts that borrowers owe. Many banks are waiting to see whether any other government initiatives are forthcoming before they clear out foreclosed inventory, McCabe said. [more]