South Beach Condos Blog

Hat tip to Hayli for the clarification on Monday’s post:

Hayli Morrison Says: 

Hello all! Banks.com real estate blog writer here. Yep, I’m clueless, but at least you’re reading! Anyway, I fixed the aforementioned problems. I will say that the “popular beach vacation destination” referred to Florida in general, which had four cities on the “worst” list. Anyway, the language in that sentence has now been changed to eliminate any confusion and offense. Thanks again, and I’ll see you at Banks.com!

Another note:  They even changed the picture!

 UPDATE:  New blog post over at banks.com “Miami Beach is NOT Miami.”

So Miami and Miami Beach were front and center today on CNBC and the Today Show. I brought together video segments from today’s coverage for my readers. I’ll let the videos, good and bad, do the talking.

Here’s my official comment on the Miami real estate market:

The developers did overbuild, thus creating an oversupply, but is that such a bad thing? A wound was created on the Miami real estate market by the gold rush mentality of the real estate developers, and it is ok. Do you know why it’s ok? Because the wound will heal and Miami will still have the sexy allure that NO other city in the US has.

As many of you may know, I tell the good AND the bad. I was watching the Today Show and they did a GREAT segment on Miami and our unprecedented growth as a city, and why all will, eventually, be ok.

Also, one thing I would like to clarify: Miami and Miami Beach are two completely different markets. Comparing Miami real estate to Miami Beach real estate is like comparing the Upper East Side of Manhattan to the Bronx.

The CEO of my firm, Ron Shuffield, was interviewed by Carl Quintanilla of CNBC. The subtitle for the segment is: One can buy five condos on Miami beach for the price of one in Manhattan, reports CNBC’s Carl Quintanilla. They were clearly talking about Miami condos NOT Miami Beach or South Beach condos.

Search Miami Beach real estate here

Say you want to sell your unit at Related Group’s new 50 Biscayne Condo in downtown Miami, you find a buyer willing to purchase your unit, you agree on terms, and you probably think, “whew, I’m really lucky I sold.”  Not so fast: today’s Daily Business Review is reporting

Banks and mortgage lenders compile lists of buildings they find too risky for lending, and they refuse to finance purchases there. 

What This Means if Your Miami Condo is “On the List”

It could mean that it will very hard to obtain financing for your condo, whether you are a buyer or a seller, in one of the “non-warrantable” condominiums.

The lists include finished buildings and projects still under development.

Prominent projects on BankUnited’s list include the Related Group’s 50 Biscayne and 500 Brickell; Terra Group’s 600 Biscayne and 900 Biscayne, and Cabi Developers’ Everglades on the Bay.

Is This the Last Nail in the Coffin for Miami Condos?

The impact of today’s news on the Miami condo market:

• Developers with unfinished buildings on the list may have high “walk-away” rates
• Owners of units in “blacklisted” condos may find it next to impossible to sell

Check out Miami’s “blacklisted” condos here:

• Bank United list
• Washington Mutual list
• Popular Mortgage list
• Citimortgage questionnaire

UPDATE:  South Florida Business Journal is reporting that Bank United has blacklisted Opera Tower as well. 

Even buyers with good credit can’t get a mortgage for a condo that has an uncertain value, said Lewis Goodkin, president of Miami-based Goodkin Research. He said because sales have been so slow and 35 percent to 40 percent of buyers could pull out of contracts in some buildings, no one knows the real value of these condos. And, if lenders don’t know the value, he said, they can’t set a loan-to-value ratio with any certainty.

Pictures from the Southeast Florida Regional MLS

Where will Ricky live?  Yesterday, Ricky Martin listed his home on prestigious North Bay Road for $19.5M.

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