Tag Archives: construction

South Florida Market Looking Better

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South FloridaMIAMI – June 16, 2009 – South Florida home prices have hit bottom, but threats to the housing market still loom as foreclosures rise, mortgage rates creep up and inventories remain high.

That’s according to a prominent economist and several top real estate brokers who spoke here Thursday during the International Real Estate Congress hosted by the Realtor Association of Greater Miami and the Beaches.

“We’re certainly near the bottom if not at the bottom,” said Lawrence Yun, chief economist for the National Association of Realtors.

The median price of an existing single-family home in Palm Beach County has plunged more than 40 percent since 2005. Yun cited a study released last week by research firm IHS Global Insight that said home prices in Palm Beach County are undervalued by 32 percent.

Mike Pappas, head of Keyes Co. Realtors, agreed that the withering collapse of the past three years finally has ended.

“We believe the worst is behind us,” Pappas said.

That’s not to say that the housing market is poised for a big rebound. Realtors see obstacles, including:

• Foreclosures. The number of foreclosure filings in Palm Beach County rose 33 percent from April to May, research firm RealtyTrac said Thursday. “Unfortunately, foreclosures will continue to increase,” Yun said.

• Rising mortgage rates. The average rate for a 30-year mortgage spiked from 5.29 percent last week to 5.59 percent this week, Freddie Mac said Thursday. Yun acknowledged that rates above 6 percent would slow the recovery, but he predicted rates will fall to 5.2 percent later this year. “I believe the bond market is overreacting,” Yun said, causing rates to rise.

• High inventories. The number of homes for sale has fallen over the past year, but there remains a glut of homes on the market. Inventory “is still much higher than it should be,” said Ron Shuffield, head of EWM Realtors.

• A sluggish high-end market. Although properties priced at under $200,000 are moving quickly, the high-end market is “stagnant,” in part because of high rates for jumbo loans, said Rei Mesa of Prudential Florida Realty.

Copyright © 2009 The Palm Beach Post, Fla., Jeff Ostrowski. Distributed by McClatchy-Tribune Information Services.

This Month In Real Estate – April 2009

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Each month, This Month In Real Estate features our real estate experts that guide you through national real estate news.  Check in at the end of each month to stay informed and feel free to call me with any questions.

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Lennar Being Sued Over Chinese Drywall

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Chinese drywall continues to be a headache for home builder Lennar Corp.

Lennar said Monday that it had been sued in U.S. District Court in Florida in connection with imported drywall that smells bad and possibly releases dangerous gases.

The suit was filed by an individual, Lorena Garcia.

Lennar itself is suing two Chinese drywall manufacturers, claiming the drywall, which it bought and installed in 2005 and 2006, is defective and is causing electrical problems and foul odors in homes it built throughout Florida.

Source: The Wall Street Journal, Ingrid Pedrick Lehrfeld (04/20/2009)

Chinese Drywall – Another Problem For Homeowners To Deal With…

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Drywall imported from China continues to make headlines nationwide, and a growing number of lawsuits have been filed in Florida. In response to the problem, FAR’s Business Forms Forum Task Force is considering a new form that addresses Chinese drywall problems. Task force members are slated to discuss the issue again on April 6.

Attorneys with Higer Lichter Givner, The Blumstein Law Firm and Podhurst Orseck have filed a federal class action lawsuit on behalf of Florida homeowners Janet Morris-Chin and Dajan Green. They’ve targeted Knauf Plasterboard Tianjin Co. Ltd., and the foreign company that distributed that company’s drywall within the United States, Rothchilt International Ltd.

Drywall manufactured in China was used in U.S. homes between 2004 and 2007. According to the lawsuit, toxic chemicals that emanate from the drywall have damaged houses, fixtures and personal property. Members of the class action are also seeking medical monitoring for any adverse effects of prolonged exposure to the toxic chemicals.

“We have filed a national class action because more than 60,000 homes in 13 states are believed to have defective Chinese drywall,” says Victor M. Diaz with Podhurst Orseck. “We anticipate that when the Consumer Products Safety Commission completes its investigation, this product will be recalled across the country. This could be potentially one of the largest product liability cases related to home construction in U.S. history.”

Gov. Charlie Crist has called in the feds to help with problems related to the use of Chinese drywall that could affect up to 30,000 Florida homes. On Friday, Crist sent a request for help in developing testing strategies to the Environmental Protection Agency and the Centers for Disease Control.

Some Louisiana homeowners who rebuilt after Hurricane Katrina are discovering that they share a problem with some Florida homeowners – Chinese drywall. The sulfur-emitting wallboard burns out electrical wires, eats away at metal and possibly sickens families. The U.S. Product Consumer Safety Commission and a number of states, including Florida, are investigating.