The Daily Soak - May 2

Open House Parties Gaining Popularity in Florida

Red carpets. Top-shelf vodka. Top DJs...sounds like a hot new club on South Beach. Think again. This is the Florida Open House of 2008 where developers are going to lavish lengths to attract potential buyers. And with attendance at some of these open house parties exceeding 1,000, the efforts seem to be paying off. In a slow market, getting buyers excited and in the mood to buy is the goal of most developers, while Realtors appreciate the opportunity to expand their connections to a growing network of open house groupies. A representative of Miami developer Related Group summed up the value of a recent event, "We got people into the buildings who otherwise wouldn't have come."


Million-dollar Palm Beach Mortgages Offered as Hiring Incentive

Tighter lending guidelines have made it tougher for most Floridians to secure home loans or refinance existing mortgages, but top scientists at the Scripps Research Institute are being lured to Palm Beach with six and seven-figure home loans. Scripps COO Douglas Bingham defends the practice saying he "was asked by the state of Florida to come down and build a world-class scientific institution. I compete in a marketplace. The fact is if you don't offer these loans, you're not competitive." Bingham would not disclose if Scripps is tapping the $310 million state grant to make the loans. The University of Miami and the Burnham Institute in Orlando offer similar incentives for new hires.


Housing Bubble No More..."But" is the new B-Word

The Chicago Tribune interviews Broward real estate consultant Jack McCabe who offers some perspective on the Florida post-bubble housing situation. He suggests the new "b"-word in Florida is "but," as potential buyers survey the landscape of falling prices, ponder making a purchase, "but" wonder if the prices will continue to drop. McCabe says prices have declined 20-30% in most markets over the past 18 months and feels we still have 12-18 months to go before inventory levels and prices flatten out. Naples and Sarasota are singled out as two Florida cities closest to full recovery; however, McCabe is less optimistic about Miami with a 61-month supply of condo inventory and local banks refusing to lend to certain projects they deem "too risky."