Good Morning Coral Gables Market Brief; Inventory in the Gables $1 Billion+

 The total active single family home inventory in Coral Gables is at 479 totaling: $1,077,233,446. While there are approximately 83 pending contracts totaling $89, 296,426.

Home loan applications increased last week even with the increase in interest rates. I have seen this market demand on a daily basis with my listings as they have been shown non-stop over the past few weeks.

We are seeing this increase in activity as buyers rush to take advantage of the tax credit and as many feel prices have fallen enough for them to make a decision. Many buyers are still looking to short-sales and foreclosures as the first avenue in an attempt to make the best buy however there may be homes that are not short sales or foreclosures in which sellers will negotiate a competitive price.  

 In financial news: Fears still loom over a double dip recession as economist sort through the data and work stabilize the European debt crisis. However, some economists feel that the chances of this “double dip” are fading and a “U” shaped recovery is more likely. The Euro has dropped to 1.35 from its highs in December of 1.50+.

If you have any questions about Miami real estate, please contact us at 305.329.7728 or 305.329.7780

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The Economic Months Ahead

As we keep an eye on the economy we are seeing an uptick in home sales, more construction starts and permits being pulled and now a bull rally on wall street!

It seems to all be positive. The graphs and charts are all trending upward but unfortunately we still have unemployment. Before we see any type of decrease in unemployment, the economy will have to stabilize. Companies had to cut back to save cost due to a decrease in revenue. Some companies over expanded; ignoring the basic law of diminishing returns, thinking they would never see a time like this.

As the downturn continued, prices came down to keep up demand and  companies cut back to return the economy to equilibrium.  Unfortunately this cost cutting by companies meant closures and job cuts, but there is a bright side to this mess: The economy is finally seeing signs of recovery! The giant economic ship is beginning to turn and with the turn, not today not tomorrow, but in the future will come economic growth.

That’s my take on the economy! Please feel free to comment.

P.S.

It is 10:52 A.M. on Friday and the DOW is up 125 points

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Pending Sales in Coral Gables

During the past 30 days, 33 homes in Coral Gables have received contracts and are pending. Below you will find a list of these homes.

So what does this mean for you the buyer. Well it seems as though buyers and investors are making their moves as I write this post. So now you ask yourself why the media is not reporting this purchasing trend? Well first of all the media is looking at the market as a whole not individual cities. Also, they want to see a consistent trend of home sales over a period of months before they report that the market is turning around.  

It is possible that if you wait till the media is reporting the turn, it will already be to late to purchase home at rock bottom. Of course this is for you to decide!

If you would like more information or have any questions please contact The DiCarlo Group.

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Wells Fargo Acquires Wachovia for $15.1 Billion

Wachovia has announced that on Friday it will be acquired by Wells Fargo. The Deal will be worth $15.1 billion (all stock deal). Earlier in the week, Citigroup announced intentions to buy Wachovia’s banking operations for $2.16 billion. The key difference between the two deals is that the Citigroup purchase would have included government assistance but the Wells Fargo acquisition will not.

This is good news for Wachovia share holders whose stock in Wachovia closed at $3.91 on Thursday, but is now valued at around $7 a share. The reason for this value increase is the acquisition in which Wachovia stock holders will receive .1991 of Wells Fargo stocks for every one of the Wachovia stocks. Wells Fargo expects earnings to be up after the first year the acquisition closes.

Information Provided by: The Miami Herald

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