Affordable housing presses on despite plunging property values

When the market is pushing prices down to decade-long lows, does South Florida need to create explicitly affordable housing?

A recent industry conference for tax credit developers brought the issue front and center as some market participants questioned the need for additional low-income housing in the region, where property values have dropped more than 40 percent in two years, based on the benchmark S&P/Case-Shiller Home Price Indices.

Organized by San Francisco-based certified public accounting firm Novogradac & Company, this year’s conference addressed issues affecting low-income housing tax credit developers, such as identifying ways to handle economic challenges, resurrecting stalled projects, and financing structures.

But many South Florida industry watchers aren’t convinced that the local market needs more affordable housing projects. In fact, with a housing glut and devalued properties, experts said more affordable housing could prolong the recovery.

Read the rest of my story at The Real Deal.

Add comment January 29th, 2010

Miami Beach sellers “starting to see the light”

he start of the new year may be the point when the upper end of the Miami Beach market found its hardwood floor. After luxury property sales in Miami Beach slowed in 2008, lower prices caused a rebound in the second half of 2009 — and inventory is shrinking in 2010.

Miami Beach luxury waterfront home prices for all of 2009 fell 25 percent year-over-year, according to data from Esslinger-Wooten-Maxwell. Kevin Tomlinson, a realtor with the brokerage, said that data surprised him.

“Sellers are starting to see the light. They are hearing what the market is saying — and they are lowering prices,” Tomlinson said. “Homes on the market for an average of about 200 days were causing a backlog in inventory in the first half of the year, but sales velocity picked up toward the end of 2009 for homes with lower prices.”

Read the rest of my story on The Real Deal.

Add comment January 29th, 2010