The Daily Soak - May 29

International Buyers Can't Resist This Opportunity

One Floridian's depressing neighborhood teeming with For Sale signs and foreclosure notices is a Canadian or European's intoxicating buying opportunity. According to the National Association of Realtors, 20% of Realtors sold properties to international buyers in the past year and, given the continued drop in median prices and relative weakness of the dollar, that percentage should continue to rise in 2008. One Miami Beach realtor describes the typical international buyer profile as 30-somethings who can't resist the opportunity to buy at 2002 prices. The Wall Street Journal notes international buyers bring a refreshing perspective and confidence regarding the long-term outlook for the U.S. economy relative to their home countries.



Coldwell Banker's 10-Day Sale of 1,000 South Florida Homes

Another first for the South Florida HousingBath, Coldwell Banker announced a 10-day promotion during which the prices of over 1,000 homes will be dropped a minimum of 5%. The majority of the homes are located in Palm Beach and Broward counties where the median price drops for the sale will actually be closer to 10% than the mandatory 5%. Whether the promotion is a sign of creativity or an act of desperation depends on who you ask. Realtors at competing firms are bashing the sale as "a marketing ploy" and "meaningless hype," but they will probably change their tune if the promotion is a success. According to one real estate analyst, the key will be whether the homes were priced aggressively even before this 10-day price drop.



Retirement Home Buying Guide for Aspiring Vultures

Forbes offers shopping advice for anyone looking to make a killing on a retirement home in depressed markets like Florida. Among the recommendations: Avoid Golf Subdivisions (water views have greater scarcity and potential price appreciation), Consider the Commute (one-third of second-home buyers purchase within 100 miles of their primary residence), and Play Vulture With Care. The Vulture comment was prompted by one Ft. Myers realtor who complained that interested buyers are calling her and saying, "Hi, I'm a vulture." Forbes encourages aspiring vultures to avoid new condominiums run by HOAs, as high default rates can lead to increased HOA fees and special assessments. Regarding future home prices, the Case-Shiller price index chart (click to enlarge) is jaw-dropping considering Naples is a stronger housing market than many areas of South and Southwest Florida.