Housing outlook 2013. Image by NapaneeGal via flickr.com

While many markets are slowly but surely shrugging off the recession, several are still facing a rocky road ahead and it may be some time before we see a return to ‘normality’. So without any further ado, here’s RealtyBizNews’ lowdown on the worst housing markets to watch out for in 2013:

Detroit, Michigan

Sorry, no prizes for guessing who’s in the sorriest state – Detroit remains by far and away the sickest housing market going into 2013, even though it has shown some signs of improvement. While some might be encouraged by the 22% increase in home prices last November, the fact remains that Detroit’s housing landscape was hit by a ton of bricks during the crisis – and it will take a long time before it picks itself up.

Real estate prices in Detroit slumped by an average 60% during the housing crisis, and to this day foreclosure rates remain sky high – so much so that some of its homes continue to fetch prices as low as $1.

A sign of the times in Detroit… Image by dharder9475 via flickr.com

Fort Lauderdale, Florida

While the signs are that Fort Lauderdale’s pitiful housing market may have bottomed out in 2012, the city is being held back by an enormous backlog of foreclosures – Florida accounts for the third highest foreclosure inventory in the US, and many of them can be found right here. It’s likely that this oversupply will continue to dog Fort Lauderdale’s recovery prospects for some time to come.

On the up side, there are some positives – home sales rebounded by 14% between September and November 2012, while prices rose by 20% during the same period. Fort Lauderdale might just be entering its recovery period, but it will be a while before the situation normalizes.

Palm trees are about the only thing seeing positive growth in Fort Lauderdale at the moment. Image by wallyg

Miami, Florida

Miami is something of a special case, with a huge spate of foreign buyers taking advantage of its crippled market to snap up its luxury real estate on the cheap. This has even led to talk of a possible bubble, although the prospect remains slim given Miami’s pitiful job market at present.

The poor unemployment rate means that Miami is still seeing a steady flow of delinquencies and foreclosures, with more than 24,000 homes in the process of being repossessed by banks, according to Trulia’s latest figures.  Until Miami can sort out its job situation and address the foreclosure rate, its market will continue scrape along at the bottom.

Miami’s housing outlook remains uncertain heading into 2013 © kenzo – Fotolia.com

West Palm Beach, Florida

Florida’s nightmare extends to West Palm Beach as well, where one in 349 homes was foreclosed upon last July.

West Palm Beach’s foreclosure rates are, sadly, fairly typical for Florida and can be taken as a sign that it’s still feeling the effects of the housing market crash. This is evident in the market’s continued volatility, with home prices continuing to fluctuate wildly. Sales prices fell by almost 15% between June and July, in spite of a general improvement in overall sales numbers. We can expect more of the same during the next 12 months.

West Palm Beach’s homes are looking good, but only from up here.. Image by Captain Kimo via flickr.com

Cape Coral-Fort Myers, Florida

There’s not much going on in Cape Coral either at the moment. The only bright spot to speak of has been the rise in new construction permits, which indicates that building activity might be about to pick up. Even so, no new major developments have got out of the ground just yet, so it will be a while before this has an impact on the market.

Cape Coral’s biggest hurdle – like most of Florida – remains its depressing foreclosure rate. So bad was the area hit that it’s now possible to go on a tour of the city’s foreclosure-hit neighborhoods, which the New York Times says have seen massive drops in property values.

A tour of Cape Coral’s foreclosures isn’t for the feint of heart. Image by ifmuth via flickr.com

Charles Blumenkehl, managing partner of Blue Asset Management L LC had this to say about the news: “These loans represent collateral of some of the finest assets in the gold costs of Jersey City and surrounding towns. These mortgages offer safe haven for mortgage investors in New Jersey, providing considerably higher than market yields while offering desirable underlying collateral in excellent locations.”

He went on to say the loans had been assembled from several purchases made over the last year and a half, are both performing and non-performing and can be purchased as a package or separately.

Blumenkehl is inviting investors to log on to the company website or to contact Blue Asset Management LLC direct on 973-835-1400.

Re/Max Preferred will specialize in foreclosures, short sales, and investing and development in real estate. The new Management team of Kevin Havens, Julie Gochar, Jim MacLaughlin, and Dorian Keydash said “There are many opportunities that exist in today’s market, especially for first-time homebuyers.” They feel now is the perfect time to open a new real estate brokerage that will be able to serve members of the local community. The new offices will be located at 1200 S. Charles Street in Federal Hill and 1909 Thames Street in Fells Point.

Re/Max Preferred is the result of a union between two well-respected brands and management teams. It will help ensure superior on-site and hands-on management combined with competitive commission plans and a collaborative and supportive working environment designed to nurture successful real estate careers. The owners and management team include top producers within the local market, and they also have experience in real estate investment, management and development. They intend to work closely with agents in order to help them be successful, and to provide the best full-service brokerage commission splits in the industry.

Re/Max was founded in 1973 by Dave and Gail Liniger, who still lead the global franchisor. It’s recognized as being one of the leading real estate franchise companies in the industry, and has a global reach of more than 85 countries. The Re/Max network also helps to give back to the communities in which its agents live and work and has raised more than $120 million for Children’s Miracle Network Hospitals, Susan G Komen for the Cure® as well as numerous other charities.

For more information about the new offices call 443-573-9200.

© steheap – Fotolia.com

Although the percentage of foreclosure related sales increased slightly as a percentage, the raw numbers were down by 12% compared to the previous quarter, and down by 22% compared to the same period last year. This is the first annual decrease in foreclosure related sales and follows five quarters of increases. The average price of foreclosure related sales increased by 6% in the second quarter compared to the previous quarter, to reach $170,040. This figure was also up 7% compared to the second quarter of last year, and is the first annual increase in average prices since the second quarter of 2010, and is the largest annual increase since the last quarter of 2006.

The average price of a bank owned home, or a home in foreclosure was 32% lower than a non-foreclosure home, slightly higher than the 30% discount seen in the first quarter, and in the second quarter of last year. The gap between short sales and bank owned sales continued to decline, with pre-foreclosure sales being outnumbered by bank owned sales by 9,833. This is the smallest gap since the third quarter of 2007.

Realty Trac also analyzed short sales transactions on a properties not yet in foreclosure, and found the numbers had increased by 18% year-on-year between January and May, and that non-foreclosure short sales accounted for 14% of sales during this period.

Darren Blomquist, vice president of Realty Trac commented on this report saying “The second-quarter sales numbers provide solid statistical evidence of what we’ve been hearing anecdotally from real estate agents, buyers and investors over the past few months: there is a limited supply of available foreclosure inventory to choose from in many markets. Given this shortage of supply and the seasonally strong buyer demand in the second quarter, it’s no surprise that the average foreclosure related sales price increased both on a quarterly and annual basis.”

You can read the full report here.

Elaine VonCannon

Elaine VonCannon is now an associate broker for Coldwell Banker Traditions in Williamsburg, Virginia. She recently obtained her broker license from the Virginia Department of Professional and Occupational Regulation after successfully completing several educational modules including Virginia Real Estate Law and Appraisal.

As well as obtaining her Virginia Broker License, Ms VonCannon is an Associated Buyers Representative and Senior Real Estate Specialist, and a seasoned property manager. She has been assisting clients in Virginia for 13 years. This year Coldwell Banker International named her a Coldwell Banker Previews Specialist. This nomination enables her to showcase some of the most prestigious luxury real estate in Virginia to affluent buyers throughout the world.

Sam Mayo, associate broker and director of business development for Coldwell Banker Traditions says “Elaine VonCannon is a real estate professional who understands what it takes to be an industry leader and is committed to her profession. We are very proud to have Elaine as part of our team.”

Elaine VonCannon and John Starke, who is a financial adviser in Richmond, Virginia, hold joint real estate and investment seminars for the general public. Topics include first-time homebuyers, senior buyers, 1031 tax free exchanges, investment properties, and Delaware Statutory Trust. These seminars help give individuals the tools to look more closely at real estate investment strategies, enabling them to maximize profit.

Mayo went on to say that Elaine “Blends her real estate success and business knowledge with a true desire to help customers and clients, and it doesn’t get much better than that. Elaine is to be commended for becoming a broker as well as earning her distinction as a luxury homes specialist.”

RE/MAX

Three Re/Max Offices in Chicago, Re/Max City, Re/Max Signature and Re/Max Premier Properties, took home some of the most prestigious awards during the annual Re/Max Northern Illinois award ceremony held in late April.

All three offices were honored for their steady sales and a willingness to embrace strategies designed to help them thrive in the changing Chicago real estate market. The Technology Award was given to the broker owners of Re/Max City, Henry Sakowski and Martin Lata. In addition the office took home two top production awards. Their office at 720 W. Higgins Avenue was named the top Re/Max office in Chicago for closed sales volume. Their Re/Max office network was honored as the multi-office Re/Max brokerage in Chicago with the most closed transactions and highest sales volumes in 2011.

The technology award was due to the offices impressive use of the newest digital tools, helping to maximize office and agent productivity. This included holding weekly meetings and seminars on the best way to implement these tools, and their offices went paperless last year.

Linda O’Donnell, broker owner of Re/Max Signature, 2411 N. Clybourn Avenue, received the Eagle Award, which is given to the individual who best embraces corporate directives designed to help brokerages through challenging economic times.

During the economic downturn O’Donnell has focused much of her business on the distressed property sector, and has been very successful. She is known for generously sharing leads with agents in her office, and opened the doors of Re/Max Signature to others in the Re/Max network forced to consolidate due to market conditions. Re/Max Signature was recognized for closing more sales transactions than any other single Re/Max office in Chicago last year.

Janice Corley and Cynthia Bauer, formerly associated with Sotheby’s International Realty, are broker owners of Chicago’s Re/Max Premier Properties, located at 1205 N. Dearborn Parkway. They took home the Trendsetter Award which is given to individuals who are best able to analyze changing real estate trends for the benefit of their business and the entire Re/Max Northern Illinois network.

The Re/Max Northern Illinois network has its headquarters in Elgin, and consists of 2100 sales associates as well as 110 individually owned and operated Re/Max offices, providing a full range of brokerage services.

Tim Binning

Tim Binning, broker and owner of Re/Max All Pro in Bloomingdale and Sugar Grove, Illinois, and Re/Max Great American North in St Charles, Illinois, has just been awarded one of the top honors presented by the Re/Max Northern Illinois real estate network. He was named Broker/Owner of the Year, Multi-Office at the networks annual awards event last April.

Binning received this award due to his successful efforts to keep three offices thriving in spite of tough market conditions faced by real estate professionals today. As a result of his efforts, Re/Max ranks as the market-share leader in all the local markets in which his offices are located, holding more than a 30% share in each.

Binning strongly believes in giving back to the community, as he and his agents support the Children’s Memorial Hospital (the Lurie Children’s Hospital of Chicago), and they were amongst the Re/Max networks leaders in raising funds for the hospital last year.

Every year Re/Max Northern Illinois awards ceremony honours affiliates who have achieved outstanding results in areas of service and sales, as well as in technology and philanthropy. Re/Max has been the leader in the Northern Illinois real estate market since 1989, and has headquarters in Elgin, Illinois. The network consists of 2,100 sales associates, and 110 individually owned and operated Re/Max offices providing a full range of residential and commercial brokerage services.

The Illinois property.com and Re/Max.com websites are leaders in consumer visits among real estate franchise brands. The Northern Illinois network is part of Re/Max LLC, a global real estate organization with 88,000 sales associates in 89 countries.

Mitt Romney's homes coming under scrutiny. Image by davelawrence8

In 2008 this tripped up John McCain after he was asked how many homes he owned. Now Romney is coming under the spotlight, not only for the number of homes he and his wife currently own, but also over his decision to expand his beachfront house in La Jolla, California. The Romneys bought the home in 2008 for $12 million, and it’s located in the Beach-Barber Tract neighborhood. The home has direct access to the beach, three bedrooms and three full bathrooms, as well as a deck overlooking the ocean and an underground lap pool. The area is described as being residential, and is right next to Windansea Beach, a favorite with surfers.

Romney is planning to replace the 3,009 square-foot beachfront home with an 11,062 foot house, roughly quadruple the size of the current structure, and submitted plans last August. According to Romney’s campaign, the expansion would make the home more accessible for the Romney’s five children and 16 grandchildren, but construction is unlikely to begin before the campaign season ends and permits are granted.

The 2009 American Housing Survey found the average existing US home was just  1,700 ft.², and census data for 2010 shows the average sized newly built single family home was 2,169 ft.² compared to 2,135 ft.² in 2009. Using these statistics, the Romney’s new house could accommodate 6.5 average sized American homes, or 5.1 newly built single family homes.

Local real estate agents point out this kind of expansion really isn’t that big a deal for anyone owning property worth that much in this area, but how many potential voters are in the same league?

© Junial Enterprises - Fotolia.com

With the real estate market is still in a state of flux, and with foreclosures still accounting for a large percentage of the market, real estate auctions have become a more popular sales method amongst both homeowners and professionals. The advantages of real estate auctions include a time specific liquidation of properties that is beneficial for both buyers and sellers. The numbers of auctions taking place nationwide is steadily increasing, and every type of property is being sold. The PropertyAuction.com survey allows clients to assess industry activity last year, and to see their predictions for this year. The topics of survey included frequency of auctions by region, auction type, online bidding, mobile accessibility, the use of social networking, advertising allocation, and the rate of success.

The survey found that the South West, Central, and Southeast regions of the United States had the highest number of real estate auctions last year, with states on the West Coast seeing the lowest numbers of auctions. This data is in agreement with media reports, as states such as Nevada and Florida are still struggling with high levels of foreclosures. Participants in the survey revealed that signage was the most effective method of promoting real estate auctions last year, with the Internet being the second most effective advertising tool. This was In spite of spending an average of 44% of their overall budget on print advertising.

The survey also asked respondents about their predictions for this year, and found most thought homes, condos, and co-ops would be the most popular assets brought to auction. They forecast commercial land as the least likely to be brought to auction. Auctioneers and real estate professionals are predicting the Southeast will have the highest number of auctions, and that lender REO is likely to be the most frequently auctioned property type this year.

Barrett And Company Real Estate

Laurie Cadigan, owner and president of Barrett & Company says “We are the only real estate agency in the Concord, Massachusetts area fully engaging with the consumer and our communities. The revamped site provides many new possibilities, and blends seamlessly with our Facebook and other online campaigns.”

The updated website is able to integrate real-time market statistics for cities and towns north and west of Boston, and this integration of data means buyers and sellers can both see the effects of price trends, supply and demand and other market indicators. Sellers should benefit from improved property listings which will bring increased traffic to their homes, both in real-time and online. Enhanced IDX integration will enable buyers to access and manage their search for property more effectively.

Anyone interested in property will benefit from the improved community information including augmented city and town resources, and will be able to get to know the companies agents and staff. The blog is a fully integrated into the site, and readers can engage with Cadigan in a brand-new feature called “Ask the President,” and will be able to learn all about the process of buying and selling with Barrett.

Barrett & Company Real estate has grown into one of the most successful independently owned and operated real estate companies in Massachusetts. The company has been operating since 1977 and has an outstanding reputation, and its agents join the company by invitation only. The company prides itself on its service and dedication to the consumer, and specializes in home buying and selling in the cities and towns of greater Boston, Massachusetts. The company also has an in-house relocation division and is part of the Leading Real Estate Companies of the World network. You can find out more by visiting their website, following them on Twitter or on Facebook.