Foreigners buy more Florida condos
Real estate agents say that the weak dollar is bringing an increasing number of condo buyers to Miami from Europe, Canada and South America, Reuters reported. Florida led the country in home sales to foreigners last year, according to a National Association of Realtors study, accounting for 26 percent of such transactions in the U.S. This latest study also concluded that over 7 percent of Florida homes sold last year went to foreign buyers, and 65 percent of agents brokered at least one foreign transaction. (A previous story by The Real Deal saw a similar trend in 2006.) A record number of foreigners visited Miami in December, according to online property auction site FastHomeAuction.com.
Miami, Ft. Lauderdale areas have among highest foreclosure rates
Two Florida cities, Miami and Fort Lauderdale, appeared in the top 10 of highest foreclosure rates in the U.S., according to RealtyTrac’s rankings of the nation’s 100 biggest metro areas, the Wall Street Journal reported. The state had three of the top 20 on the list.
Authorities say the markets with the most foreclosures had experienced rapid growth and unsustainable price appreciation, or were hit with a widespread economic downturn. Detroit ranked the highest, with 4.92 percent of households in some stage of foreclosure. Nationwide, foreclosure filings went up 75 percent last year.
Boca Developers seek to expand Biscayne Landing project
Boca Developers, responsible for building a massive residential and commercial community at Biscayne Landing, are seeking community support for permission to bring 200,000 additional square feet of commercial space to the development, the Miami Herald reported. The space would be used for planned offices, retail and a hotel. The new proposal would also create a small theater that would be used for film festivals.
Boca Developers president Brian Street said the new proposal would still have almost 6,000 residential units. The developers encouraged residents to consider an increased commercial space a “dynamic alternative to the marketplace” in a time when the residential market is suffering. Expanding the commercial component would create 7,000 jobs, according to the developer.
Developers cut prices in Port St. Lucie
While Port St. Lucie has always been known for having great residential property deals, the downturn in the real estate market has caused home prices to go lower than expected. Some developers have begun dropping prices and producing smaller, cheaper homes to increase sales. On the plus side, an emerging research and development corridor along Interstate 95 is expected to bring jobs and boost the area’s housing market, the Palm Beach Post reported.
Up to 70 percent of the builders who worked in Port St. Lucie during the housing boom are no longer there, according to Don Santos of the Treasure Coast Builders Association, and membership at the Realtor Association of St. Lucie County has dropped to 1,400 from 1,600 at the peak of the boom.
Homestead puts brakes on condos
In light of recent overbuilding in the area, the city of Homestead passed legislation last month that will bring a halt to the development of new condos, townhouses and cluster-style homes in the eastern half of the city for the next year. The region is approximately 30 minutes south of Miami. While the law enjoyed general support, disagreements over how the moratorium would deal with developments already planned or underway caused it to pass the City Council by only
a 4-3 vote, the Wall Street Journal reported.
The moratorium follows similar moves made by the city of Hallandale Beach, north of Miami, last summer to curb overdevelopment. The six-month moratorium there put restrictions on new developments with 10 or more housing units or 4,000 square feet of commercial space.
Port St. Lucie builders accused of abandoning jobs
Island Shore Homes, a builder in Port St. Lucie, is one of several in the city that has been accused of abandoning customers because of debt related to the housing market crisis, the Palm Beach Post reported. While criminal charges have not been filed against Island Shore’s New York-based principals, Kevin Kelly and Richard Parisi, they are involved in several lawsuits against their former partner Michael Miranda.
Meanwhile, customers are left to shell out more money, or even take out unanticipated loans, to have their homes completed by other builders. The buyers have reportedly collectively lost hundreds of thousands of dollars, but some buyers could be eligible for a reimbursement of up to $250,000 per contractor from the Florida Homeowners’ Construction Recovery Fund.
HUD struggles to help Miami-Dade housing agency
The U.S. Department of Housing and Urban Development is working with local leaders to stabilize Miami-Dade County’s housing agency, after having taken over the agency in fall 2007. The agency, which currently has a list of 28,000 people awaiting aid, faces a shortage of cash, organizational problems and accusations of corruption, the Miami Herald reported.
County Manager George Burgess cut about 80 agency positions before HUD took control; more jobs have been cut since the October takeover. Liberty City has been hit particularly hard by the disarray, as HUD has refused to uphold the agency’s promise last year to construct 850 housing units at the site of a demolished housing project.
Fraud charges for Oakland Park builder
Assistant State Attorney Catherine Maus has accused Oakland Park-based construction company HomeCo Unlimited of scamming South Florida homeowners for four years, by collecting deposits while doing little or none of the work they were being paid for, the Sun-Sentinel reported. Company CEO Douglas Livingston and project manager John Ostendorf face dozens of felony charges stemming from more than 60 customers’ complaints. Livingston’s attorney claims they failed to finish jobs due to economic problems following the Sept. 11 terrorist attacks.
The firm was the target of a criminal investigation in 2003, during which customers were advised to refrain from paying any more money. The following year, the construction company filed for bankruptcy protection after being sued at least 36 times and owing more than $960,000 to customers and subcontractors.