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Appraisal losses could lead to CMBS pain	3/9/2010 5:35 PM
Losses attributed to commercial mortgage-backed securities may grow through 2010, according to the latest report from Trepp, a real estate tracking firm, due in part to the reduction in the appraised value of properties with associated loans. “Appraisal reduction is a forward-looking measure of potential future losses,” Paul Mancuso, a vice president with Trepp, said. Unfortunately for investors, many properties have seen significant losses to value over the last few years, which could be particularly rough on those properties whose loans were inked during the boom years. New York and Florida ranked high on the list of states most vulnerable for further CMBS pain, Trepp said.
Mortgage bankers band together	3/9/2010 4:30 PM
Disrupted lending practices, increasingly byzantine regulations and heavy incidence of fraud have led to a turbulent time for mortgage bankers. The industry has stepped up lobbying efforts and banded together -- both to better understand the new laws facing the industry and to work toward restoring its reputation. The topics were covered today at the newly formed Mortgage Bankers Association of South Florida's inaugural meeting today at the Riviera Country Club in Coral Gables. The MBA of South Florida replaces the Mortgage Bankers Association of Greater Miami, which had dissolved in the past few years, and represents one of the ways mortgage bankers are starting to deal with the foreclosure crisis.
Biggest price cut of the day	3/9/2010 4:00 PM
10950 Snapper Creek Road The South Florida home to see the biggest price cut today is an eight-bedroom, seven-bathroom house at 10950 Snapper Creek Road in Coral Gables, according to data from Condo Vultures Realty. The $3.2 million Miami-Dade County home saw a $750,000, or 19 percent, price cut off its last asking price of $3.95 million. It was originally listed for $4.3 million when it hit the market in September 2009, before the last price cut in November 2009. The waterfront home sits on a 50,094-square-foot lot in a gated community and has a renovated kitchen, library, gym, gazebo and private harbor with a dock. Judith Zeder of Esslinger-Wooten-Maxwell has the listing. (Condo Vultures data includes condos and single-family home listings in the main metropolitan areas of Miami, Fort Lauderdale, West Palm Beach and Key West that are priced at $1 million and above, and that include photographs. Listings are taken from the South Florida MLS.) TRD
How accurate are Zillow.com's "Zestimates"?	3/9/2010 3:00 PM
Zillow.com's "Zestimates" of home values are vastly inflated, according to a new study by the Appraisal Institute, published in its quarterly journal (click here for the complete study). The study compares Zillow.com's home values with the actual sale prices of 2,045 single-family homes in 2006 in Arlington, Texas -- the market where Zillow.com claims to have its highest accuracy rating. Zillow.com was off by an average of 11.7 percent, or $13,576 above the actual sale price, with 40 percent of property values inflated by more than 10 percent, the study shows. Meanwhile, only 0.88 percent of values were underestimated by 10 percent or more. In a statement provided to The Real Deal, Zillow.com called the study "out of date and limited in scope," noting that the study compares sales from 2006 and Zestimates from January and February 2007: "apples and oranges as it's two separate periods of time," the statement says. TRD
Foreclosure vs. short sale for developments: which is better?	3/9/2010 2:00 PM
Some tough lessons have been learned in South Florida’s troubled real estate market as once-distressed assets return to being productive properties. One thing that’s coming into focus for banks: It costs less to approve a short sale for a development than to go through the foreclosure process, according to data compiled by Condo Vultures Realty. (See slide show above for some examples of large properties that have gone one of those routes and the outcomes.) Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy of Condo Vultures, expects lenders to move toward more short sales this year. They get a comparable price without the costs of holding on to a property as it goes through foreclosure, he said. “It just makes more financial sense.”
Hamptons, Palm Beach still among top spots for second homes	3/9/2010 1:00 PM
With luxury home prices at an apparent bottom, Wall Streeters -- and others whose bonuses packages have already rebounded -- are re-emerging as buyers with the chance to score bargains and return the second-home market to its former glory. For those lucky investors, Barron's has ranked the top 10 spots for vacation homes, taking into account how far prices have dropped from their peaks in each submarket. Perennial New York favorite the Hamptons came in third, with prices coming in at a median $1.5 million, 30 percent off their peak. The posh island chain ranked as less desirable than Maui, which took the top spot with prices down 27 percent, and Kiawah Island, S.C. (No. 2), where prices are down 21 percent. Florida favorite Palm Beach ranked seventh and Captiva/Sanibel Island ranked eighth. Palm Beach and Capitiva/Sanibel Island homes prices are down 11 and 40 percent, respectively, each to a median $3.5 million. Gasparilla Island, a favorite of actor Harrison Ford's off Florida's southwest coast, was 10th on the list. The median price is $1.8 million, down 18 percent form its peak.
After fire, Related refunds rents for 300 displaced tenants	3/9/2010 12:00 PM
The roughly 300 low-income residents of the Congress Inn Building, the Related Group-owned tower at 111 NE Second Avenue that was damaged in an electrical fire last Friday, won't be able to move back in for about three weeks, Miami city officials said in a statement. Related is refunding their March rents and the city has offered up emergency food stamps and temporary shelter. [Miami Herald]
Commercial and multi-family loans show signs of strength	3/9/2010 11:00 AM
While speculation over an impending commercial crisis has abounded, Mortgage Bankers Association data released today shows that commercial and multi-family mortgages nationwide had the lowest charge-off rate of any type of bank- and thrift-issued loan in the fourth quarter of 2009. This is an ongoing trend for commercial and multi-family loans, which also shows the low charge-off rates during the same quarter a year earlier. Even more encouraging, commercial and multi-family mortgages had average 30-plus-day delinquency rates of 5.06 percent and 5.64 percent, respectively, lower than the average delinquency rate for all loans and leases held, which hit 7.3 percent in the fourth quarter. But not all types of loans fared so well -- construction loans, which saw the highest delinquency rate, hit 18. 56 percent, while single-family mortgages had an average rate of 12.49 percent. Still, the performance of commercial and multi-family mortgages may be cause for cautious optimism, the report says. “Like other parts of the economy, the performance of commercial and multi-family mortgages has been negatively impacted by job losses, consumer restraint and manufacturing declines,” the report says. “The relatively stable performance and low charge-offs of commercial mortgages through the recent recession, however, have helped, rather than hurt, the stability of banks.” TRD
New developer on way for long-planned West Palm Beach hotel	3/9/2010 10:30 AM
The Palm Beach County Commission is due to select a developer for a new hotel project after previous proposals dating back to 2007 failed to get off the ground. Ocean Properties was to construct a hotel beside the city’s convention center, but it was never built after a series of problems, including a federal investigation into alleged corruption in the deal. The Related Companies, which developed West Palm Beach’s large CityPlace site, was suggested by a county selection committee as the new developer. [Sun-Sentinel]
No help for South Florida in GM plan to take back car dealers	3/9/2010 10:00 AM
General Motors terminated its relationships with dealerships across the United States, including several in South Florida last year, prompting hundreds of dealers to appeal the decision and seek reinstatement. The company now plans to give more than 600 dealers the chance to resume selling its cars, although South Florida dealers say the proposal will not have any affect on the area. [Miami Herald]

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