It's Trump vs. market in condo project

By Alexandra Clough

Palm Beach Post Staff Columnist

Sunday, January 28, 2007

The condo market is tanking, and many projects are being canceled or put on hold nationwide.

Donald Trump's response? Don't worry. Be happy.

The real estate mogul says his brand is so strong that it now has the power to defeat poor market conditions, wherever they may be.

As proof, he pointed to his latest Trump Tower in Hawaii. Despite a slumping real estate market there, that project sold out for a whopping $700 million in just eight hours, setting a world record. Buyers were from around the globe.

Average unit price: $1.5 million.

Those kind of results are music to the ears of Jorge Perez, head of The Related Group of Miami.

Perez has been trying to drum up pre-sales for his latest planned West Palm Beach condo, Icon Palm Beach, on North Flagler Drive. Even though Perez has a loyal following on U.S. and South American projects, the Palm Beach County market is so tough these days that Perez knew he needed something more: Access to the worldwide market.

Enter The Donald to goose Icon's chances of success. Perez said he's counting on Trump's worldwide name to bring international buyers to his high-priced project, now renamed Trump Tower Palm Beach.

Would Perez have gone forward if he didn't have Trump?

"We think the land and the project are fabulous," he said. "But would we have waited one year for the launch until the market got better? We might have."

Perez said he's not concerned that Trump's bold way of speaking will hurt sales. "He's always been a controversial guy who speaks his mind," he said.

Indeed, Trump has made waves nationally for his verbal attacks on comedian and The View host Rosie O'Donnell, whom he's called a "loser" and "fat pig." Closer to home, Trump's also feuding with Palm Beach town officials over an oversized U.S. flag and flagpole at Mar-a-Lago.

In Trump style, he called these events positive. "Fox did a poll that said 91 percent of Americans are in favor of what I said about Rosie," he said. "And everyone is in favor of the American flag."

So will Trump fly the big flag at Trump Tower Palm Beach when it's done?

"I think we should have one," Trump said. "It's a prominent site, and any prominent site should proudly fly the American flag."

Perez may go along with Trump's over-the-top comments and his flag-loving ways. But one thing's for sure: He won't be joining Trump on the small screen.

Perez said he's frequently asked if he and Trump have discussed filming The Apprentice: South Florida, starring the telegenic Perez. The answer is a big fat no.

"I have no desire whatsoever to be on TV," Perez said.

Condo inventories rose sharply in last six months

Condo inventories rose sharply in last six months

Vancouver Sun
Published: Thursday, January 25, 2007

Greater Vancouver real estate markets saw a 55 per cent increase in inventory of unsold presale condominium units over the last six months, which may trigger a slowdown in future development, PricewaterhouseCoopers reported today.
The rising inventory is likely a result of fewer buyers being able to afford Vancouver's high-flying prices, Craig Hennigar, vice-president of PricewaterhouseCoopers Real Estate (PsC), said.

However, Hennigar said developers will likely build the projects they have in the works now, then scale back their future expectations rather than drop prices that are being driven largely by skyrocketing land and construction costs.
Hennigar, in PwC's latest Greater Vancouver condominium market review, counted 4,350 unsold condominium units in pre-sale marketing at the end of December, compared with 2,780 in January, 2006.

However, Hennigar added that the 4,350 unsold units only represented about 28 per cent of all units in pre-sale marketing. In January, the 2,780 units represented 23 per cent, so the ratio of unsold units in the market hasn't increased dramatically.

"We're not suggesting, at this point, that the market is awash in unsold presales," Hennigar said. "We're not even at 50 per cent [which would signal a buyer's market]. But we're closer to it than we were six months ago, or 12 months ago when the market was hotter."

How about a college education with your new condo?

A slow market has developers offering everything from shopping sprees to new cars to vacations.
BY RICHARD WESTLUND

''I had been looking for about six months, and didn't have an immediate need to buy,'' said Nisius, an agricultural exports manager for Cargill who was seeking a shorter commute to her Coral Gables office. ``The developer offered to waive his fees and pay my closing costs.''

Before Nisius moves into her $400,000 condominium this month, she will take advantage of a $4,000 credit from Rooms to Go, whose Dadeland showroom is on the ground floor of Toscano, and another $1,000 credit from Best Buy. ''I'm moving from a three-bedroom house further south and downsizing, so some of my current furniture won't work at my new condo,'' she said. ``Getting all new furniture for free was a real incentive for me.''

Faced with a sharp drop-off in demand at a time when thousands of new units are coming on the market, South Florida developers are offering a host of financial incentives to attract buyers like Nisius. To take just one example, Abel Homes was recently offering zero down payments, no closing costs and no association fees for a year on the remaining townhomes at its Naranja Villas development in Southwest Miami-Dade.

''I think it's essential for builders to offer incentives,'' said Al Piazza, CEO of Coscan Homes in Fort Lauderdale. ``Customers today are expecting them, and with the market still so slow, I think you'll see even more out there.''

To promote its new family-oriented Orchid Grove townhouse community in Pompano Beach, Coscan is offering buyers a free four-year college education for one child or grandchild. Under the incentive program, which is scheduled to run until May 1, Coscan will cover the child's cost to enroll in the Florida Pre-Paid College Plan, about $10,000.

LOT OF INTEREST

Piazza said he got the idea from developer friends in New York who offered a similar incentive in the 1980s. ''We've had a lot of interest from both buyers and brokers,'' he said. ``It's generated a lot of talk and I'm sure it will be an important consideration for many buyers as we begin closing these sales.''

In the past year, some individual sellers have offered new cars, airline tickets or exotic vacations to market their homes. But buyers usually prefer a cash incentive, such as a discount in the sales price or the payment of closing costs. In a recent national survey by online real estate company HouseHunt, 77 percent of responding buyers said payment of closing costs was their top incentive choice.

''Not surprising, this would represent a bottom-line savings of several thousand dollars in normal closing cost fees and services,'' said Michael Bearden, president and CEO, in announcing the results.

Many developers in South Florida today are typically offering a package of incentives, according to Ron Shuffield, president, Esslinger-Wooten-Maxwell in Coral Gables.

''We've worked with developers who gave away car leases to buyers,'' Shuffield said. ``We're not doing that anymore. Most people prefer incentives like having their homeowner fees paid for a year or two, or other costs associated with the transaction.''

One common incentive today in the new home market is waiving a provision in the sales contract that requires the buyer to pay a 1.5 to 1.75 percent fee to the developer. Those fees, which covered some of the developer's closing costs and enhanced a project's profitability, were widely imposed several years ago at the height of the recent boom market. ''Many developers are now paying closing costs for the buyers, which are usually 2 to 3 percent of the sale price,'' said Shuffield. ``If you include the waiving of the developer's fees and other incentives, a buyer's savings today can be 5 to 6 percent altogether.''

Some real estate brokerages and developers offer discounts to buyers who use their affiliated mortgage and title services. However, buyers should also compare fees with independent companies to be sure they are getting the best deal.

SELLERS IN ACT

Individual sellers are also offering incentives, such as paying a buyer's closing costs or homeowner association fees. Again, it's important for buyers to be sure the seller has not inflated the sales price in order to offer these ``discounts.''

Regardless of incentives, the best way for a seller to market a home is to price it correctly, said Mike Pappas, president of The Keyes Co. in Miami. ''Sellers don't have to resort to gimmicks and making sacrifices,'' he said. ``In reality, if a seller works with an agent at pricing his or her property correctly, and that property receives proper attention and exposure, this is the magic formula for a successful sale.''

__________
richard.westlund@earthlink.net
Posted on Sun, Jan. 14, 2007
Source: MiamiHerald.com

US Condo Exchange Partners with Italian Powerhouse to Showcase American Condos

US Condo Exchange Partners with Italian Powerhouse to Showcase American Condos

Miami, FL, January 15, 2007 --(PR.COM)-- US Condo Exchange, LLC, www.uscondex.com, the online marketplace where more than 200,000 condos can be searched, compared and reserved online in real time, announced today that it has entered into a strategic partnership with Italian real estate powerhouse Pirelli & C. Real Estate (“Pirelli RE”), a firm with over €15 billion in real estate assets under management and a leadership role in a wide variety of real estate businesses throughout Italy and Central-Eastern Europe.

Through the partnership, Pirelli RE’s online real estate venture, www.casaclick.it, will showcase condos listed on US Condo Exchange, bringing the vast market of European buyers and extensive inventory of U.S. Condos. In addition, Casaclick will employ new, patented technology to feature streaming video content of US Condo Exchange properties at its hundreds of newspaper kiosks throughout Rome, Milan and other key cities, including planned interactive capabilities where passersby can simply click on kiosk screens to view potential vacation homes in South Beach, Las Vegas and more. For Americans interested in that dreamed-of apartment in Florence or Rome, they will now be able to access the best of Italy’s “condo” market on www.uscondex.com, thanks to the new relationship between US Condo Exchange and Pirelli RE.

This pairing is one more step in US Condo Exchange’s efforts to globalize the condo market and comes on the heels of a similar agreement with Primelocation, www.primelocation.com, the United Kingdom’s leading online real estate portal. “US Condo Exchange aims to eliminate all borders when it comes to condo marketing and transactions,” said Richard Swerdlow, Co-Founder and CEO of the U.S. Condo Exchange. “Through our partnership with Italy’s leading real estate conglomerate, we have opened up our condo inventory to Italians. We expect the ease with which Italians can now view and purchase American condos to result in exponentially increased sales to that market. Additionally, we are adding worldwide condo inventory which we believe will be interesting to our site users.”

According to the National Association of Realtors, Europeans already account for 58% of international home sales in markets such as Florida, illustrating the market for of vacation and second homes across the Atlantic. Furthermore, Pirelli RE is currently expanding its own reach to Germany and Poland.

“Italians are increasingly interested in condos, but up until now, there has never been an easy way to access condo information let alone conduct transatlantic transactions,” said Paolo Bottelli, CEO of Casaclick. “Condo Exchange facilitates the exchange of information like never before. At the same time, the best of Casaclick’s listings are now available to a much broader audience by having them showcased on US Condo Exchange.”

Now, Italian-speaking visitors may visit www.casaclick.it to “Esplora il mercato immobiliare,” translation: Explore the American Housing Market. What’s more, Casaclick will “push the net to go on the road” via newsstands, according to Mr. P. Bottelli, with the new interactive-shop-window patented technology making the condo market available “street by street regardless of whether you have a personal computer.”

“The condo market has never seen such exposure, and it couldn’t come at a better time,” added Richard Swerdlow, Chief Executive Officer of US Condo Exchange, “We continue to pursue key international alliances while adding new condo inventory to our exchange daily… this is just the tip of the iceberg.”

British residents may visit www.primelocation.com to access US Condo Exchange listings, and US Condo Exchange expects to unveil other key international alliances shortly.

Pirelli & C. Real Estate (“Pirelli RE”) is one of the leading players in the real estate industry in Italy and one of the most important in Europe, thanks to an innovative business model for the sector and a flexible and dynamic organization with the highest professional standards. Pirelli RE has become a leader in the management of real estate assets in Continental Europe. The company, listed on the Milan Stock Exchange since June 2002 (PRS.MI) and with about €15bn of AUM, is a subsidiary of the Pirelli Group, a large multinational industrial conglomerate listed on the Milan Stock Exchange The Pirelli Group businesses include Pirelli Tyres, Pirelli Labs, Pirelli Broadband Solutions, Pirelli Ambiente and indirectly stakes in telecom companies. (www.pirellire.com)


US Condo Exchange is the first and fastest growing global advertising portal and listing service for condominiums. Condo Exchange currently has over 200,000 condos listed on its site located in the United States and in 40 countries around the world, valued at over $60 billion. The website cost-effectively delivers unparalleled international exposure to developers, brokers and for-sale-by-owners through the seamless distribution of its listings to a global network of real estate websites visited by over 15 million viewers per month. Condo Exchange also features a simple and automated self-listing process, and partners with major media companies to automate the listing of for-sale and for-rent condo classifieds.

###
Contact Information
US Condo Exchange
Adam Kujacznski
305-476-2075
a.kujacznski@uscondex.com
www.uscondex.com

2007: A time of widgets and Web redesigns

Inman Real Estate News



2007: A time of widgets and Web redesigns
Brokers reveal real estate technology plans
Friday, January 12, 2007

By Glenn Roberts Jr.
Inman News


Matthew Borland Matthew Borland, Zephyr Real Estate

The new year is here, and brokers are already buzzing about new Web sites, widgets and other technological doodads that they expect to use in 2007.

Carolynn Ozar-Diakon, broker-owner of Resources Real Estate in Rumson, N.J., said she plans to explore the use of a 'virtual kiosk' module for her real estate office this year.

Simon L. Conway, broker for Picket Fence Realty in Kissimmee, Fla., said he will be investing in online mapping technology and a Web site redesign.

And Matthew Borland, a broker and managing partner with Zephyr Real Estate in San Francisco, said he expects tablet PCs, wireless broadband and transaction management platforms will be in"

Read more...

U.S. mortgage rates rise for fourth week in five

Excite

Marketwatch - The story behind the numbers

30-year fixed-rate should remain below 6.5% in 2007: economist

By Amy Hoak, MarketWatch
Last Update: 11:54 AM ET Jan 11, 2007

CHICAGO (MarketWatch) -- Mortgage rates edged up in Freddie Mac's weekly survey released on Thursday, the fourth increase in five weeks, lifted by a strong December employment report, the company's chief economist said.

'The gain in employment in December exceeded the consensus forecast, and helped ease fears about the state of the economy,' said Frank Nothaft, Freddie Mac (FRE: news) chief economist, in a statement. 'But stronger employment and higher wages put upward pressure on inflation, which, in turn, translates into higher interest rates.'

The 30-year fixed-rate mortgage averaged 6.21% in the week ending Thursday, up from 6.18% last week. The mortgage averaged 6.15% a year ago.

'We expect rates on 30-year fixed-rate mortgages to remain below 6.5% in the coming"

Real estate rebound likely in second-half '07, economists say

Inman Real Estate News

Thursday, January 11, 2007

By Glenn Roberts Jr.
Inman News
Frank Nothaft

NEW YORK -- The national housing market may not have reached bottom yet, but the second half of the year will likely begin the recovery from a slight downturn that followed a prolonged boom in sales and home prices, economists generally agreed during a panel this week at the Real Estate Connect NYC conference.

'We're going to hit the trough in the first half of 2007,' said Frank Nothaft, chief economist for Freddie Mac and a panelist for the 'Housing Outlook: 2007' session. Other panelists included representatives from the California Association of Realtors, Rutgers University and the University of Pennsylvania.

Single-family construction, which peaked in third-quarter 2005, was 18 percent lower in third-quarter 2006, he noted. From that level Nothaft said he expects an additional decline of about 8 percent to 10 percent before the market turns around. 'We're most of the way through the correction but we're not at the trough part yet.'"

Read more...

NYC condos grab larger share of the pie

Brokers predict Manhattan co-op boards may have to relax some restrictions to compete

The Real Deal
By Lauren Elkies
December 2006

It's unlikely that prestigious Upper East Side co-op buildings like 740 Park Avenue and 834 Fifth Avenue are going to let the riff-raff in any time soon.

However, Manhattan co-op buildings as a whole -- despite trumping condos by three-to-one in sheer number -- have been losing a bit of steam as the primary apartment choice in recent years.


Source: Miller Samuel

Despite generally costing more per square foot, condos are taking up an increasing share of the real estate market in Manhattan -- accounting for more than 50 percent of sales in recent quarters.

Some brokers are saying co-ops will eventually have to reposition themselves to adapt: Changes could involve slightly more lax financial requirements and even tweaks to the typical co-op board approval process in some buildings.

Jonathan Miller, president and CEO of appraisal firm Miller Samuel, said he would suspect that in some buildings, "you may see co-ops limiting and, especially in a weaker market, loosening financial requirements." Still, that may take awhile, as many brokers say co-ops are getting tougher on candidates recently, and there are more board rejections now than in a long time.

Read more...

Manhattan real estate prices still rising in Q4

2006 was better than last year, says Douglas Elliman CEO

Thursday, January 04, 2007

By Glenn Roberts Jr.
Inman News

Manhattan, N.Y.

Manhattan residential real estate prices climbed overall in the fourth quarter compared to the same quarter last year, several major brokerage companies reported this week. Halstead Property, Brown Harris Stevens, The Corcoran Group and Prudential Douglas Elliman released reports detailing condo and co-op sales and pricing activity for the fourth quarter.

The sales data used by some companies was in some cases skewed higher in the fourth quarter when compared to fourth-quarter 2005 because of a new source of public data on co-op sales that became available earlier this year.

Miller Samuel Inc., a residential appraisal company that prepared the quarterly report for Prudential Douglas Elliman, reported that the average sales price for Manhattan co-op and condos in the fourth quarter grew 3.2 percent compared to fourth-quarter 2005 and the median sale price was up 5.1 percent.

Meanwhile, the average price per square foot declined 0.4 percent, days on market from the last list date increased 9.1 percent and the listing inventory shrank 0.5 percent when compared to the same quarter last year. The report is based on data from 2,441 sales in the fourth quarter.

The average sale price of co-ops grew 2.7 percent in the fourth quarter compared to fourth-quarter 2005 and the median sale price was flat. The average price per square foot fell 4 percent and days on market increased 6 percent compared to fourth-quarter 2005, Miller Samuel also reported.

The average sale price of Manhattan condos rose 7.5 percent; the median sale price was up 14.4 percent; the average price per square foot was up 6.5 percent; sales grew 36.1 percent; and days on market increased 14.9 percent compared to fourth-quarter 2005, according to the report.

The average sale price of Manhattan condos increased 52.3 percent among three-bedroom condos but dropped 26.6 percent among condos with four or more bedrooms in the fourth quarter compared to the same quarter last year -- there were price increases between 4.2 percent and 7.2 percent for condos with fewer bedrooms.

The average sale price of lofts rose 11.9 percent while the median sale price dropped 5.4 percent in the fourth quarter compared to fourth-quarter 2005, according to the report. The average price per square foot grew 15.8 percent and the days on market from last list date rose 19.8 percent for lofts compared to the same quarter last year.

The price per square foot paid for co-ops and condos flew up 19.7 percent in the fourth quarter compared to fourth-quarter 2005 in Manhattan's Uptown area, while climbing 4.2 percent in the downtown area, and falling 3.1 percent in the east area and 1.1 percent in the west area of Manhattan.

Read more...

Webcam provides view of project's progress

Orlando Sentinel : Orange County News

With investor-owners located worldwide, from Ireland to South America, The Point Orlando Resort near the Orange County Convention Center faced a challenge in keeping buyers updated on progress of the two condo-hotel towers now rising near Wet 'n Wild.

Technology has done the trick. A live Web-camera shot offers viewers anywhere 24-hour visual access to the scene on Carrier Drive near Universal Boulevard.

"I always used to have to run out and snap pictures and send them out to people individually, but now this is very helpful. Anyone, anywhere in the world can watch the towers go up, with this dedicated webcam," said sales coordinator Debora Pludwinski. The Web address is www.thepointorlando.com

Read More...