The Daily Soak - August 21

South Florida Homeowners Slashing Prices to Sell Homes

The Sun-Sentinel analyzed home sales data for the first halves of 2006, 2007 and 2008 and found that South Florida homeowners who are able to sell their homes are typically slashing their asking prices or accepting offers well below the original listing prices. 23% of homes in Broward and 27% of homes in Palm Beach were sold this year for a loss compared to 2006 when only 2% of homeowners sold their homes for losses in both counties. The price reductions are bringing affordability back to South Florida and first-time buyers like Katarina Lytle can't believe their good fortune, "My husband and I walked out of the closing, jumped in the truck and just screamed." The Lytles paid $205,000 for a home that sold previously for $355,000. Despite the financial hit sellers are taking, housing analyst Brad Hunter explains many of these sales are still win/win transactions, especially for those "who regret having bought the house at the price they paid and if they can get rid of the obligation of having to continue paying on it, they're happy to do it."


A Little Taste of South Beach in Rural Florida...Swinging Optional

You've heard the term "rondo" used to describe a rental-to-condo conversion of an apartment complex. Well, a rural Florida apartment complex is more of a "rudie" or rental-to-nudie conversion. HB.com reported on the Arbor at Branch Creek complex back in June when the developer announced the community pool was going clothing-optional. Peter Mead, the Sales Director draws a quick comparison with luxury hotels on South Beach, "It's going to be hot, there are going to be a sound system and cabanas. The vibe is a South Beach concept that is being utilized in several different hotels around the country." True, the pools at SoBe hotels like the Delano and Shore Club have enormous pools with great sound systems and cabanas, but that's where the similarity ends. Take a closer look at this photo gallery from the Raleigh, and you'll notice clothing is not optional. Resident Amy Toson is upset over the pool situation, "We moved here because of the family friendliness of the area and all the family things to do." Peter Mead would probably tell Toson to chill, put on her birthday suit and bring the whole family down to the pool, because "It's going to be hot!"


Few Bargains In High-end Condo Market Nationwide

The median condo price in the U.S. is $224,000, and most major metropolitan areas have gluts of unsold units in this price range. But what about the high-end market where prices start over 5x the national median price? CNBC takes a closer look at the $1 million-plus segment of the condo market and finds few bargains in cities like Boston, Los Angeles and New York. The $1 million-and-over market is outperforming the broader market from Orange County to Manhattan, where the median price for a luxury condo rose 19% this year to $4.37 million. The article points to the strength of Miami's high-end market with disbelief, given the recent avalanche of negative housing news emanating from The Magic City. Local analysts say the bottom has been passed and prices are now rising in "proven, mature markets" like Coral Gables, Key Biscayne, Coconut Grove and Fisher Island. Still, Miami high-end condo bargains can be found in areas like Brickell and Biscayne with the biggest glut of new high-rise towers.