February 01, 2013
We have seen significant improvements in the luxury waterfront real estate market over the past year from Miami Beach to Palm Beach. Oceanfront condos and estate sales have gone up considerably and sale prices have increased as well. It isn’t always easy to predict the future of the real estate market but things are definitely looking up.
Federal National Mortgage Association, Fannie Mae recently published their predictions for what 2013 and 2014 may look like in a report they call “Transition to Normal”
Fannie Mae Predictions for the Housing Market in 2013 and 2014
Mortgage rates: Fannie Mae believes that interest rates will remain historically low. The report says that interest rates may go up to 4.2 percent by the end of 2014, which is still considerably low.
FHA Loans: Fannie Mae believes that FHA loans will become more expensive due to additional costs.
Refinancing: The prediction is that 2013 will be the first of several transitional years and finance markets will shift to more of a ‘normal’ balance between refinance and purchase-related activity.
Foreclosures: Fannie Mae believes that foreclosures will decline because alternatives to foreclosures will be pursued.
Housing starts (the number of newly constructed single-family homes, condominiums and townhouses): Fannie Mae predicts that the construction of new homes will increase by 23 percent, which is 60 percent higher than the record low of 2010.
Mortgage originations: Fannie Mae predicts that mortgage originations will increase to six hundred and forty two billion from a forecast of five hundred and eighteen billion of 2012.
Source: Fannie Mae Report
January 25, 2013
We are seeing an increase in luxury waterfront real estate developments and sales in Palm Beach County this year. New waterfront buildings are going up and luxury properties have been selling quickly.
One new building up for sale these days is Casa Costa located between Palm Beach and Boca Raton. This luxury waterfront condominium tower is right on the edge of the Intracoastal Waterway. Residents will enjoy magnificent water views.
The Casa Costa will include two condominium towers with spacious two and three bedroom residences. Residences will include floor to ceiling windows, island kitchens, custom Italian cabinetry, granite countertops and spacious private balconies.
Another new luxury project located in Palm Beach is The Ritz-Carlton Residences. This luxury project will include two beautiful condominium towers located right on the beach. Recently, twenty five million dollars worth of condo units were sold bringing the developments sales to 70 percent.
The Ritz-Carlton Residences were originally the 2700 North Ocean Drive condominiums. They were later purchased by Lionheart Capital who brought in Ritz-Carlton to manage the property. The managing partner, Ophir Sternberg learned that the property was also home to sea turtles in the area, which is where they nest.
“When we bought, we weren’t aware that this part of the coastline was so heavily used for turtle nesting,” Sternberg said. “Initially we thought this was a liability, but we said ‘let’s’ make it a positive.”
Lionheart invested about one hundred thousand to protect the turtles. This paid for turtle-friendly, amber-colored outdoor lights, and new beach furniture that could be removed at night.
The biggest problem facing turtle hatchlings are the bright lights on the beach at night. The baby turtles are drawn to the light instead of the ocean, which is how they die.
Residents will be educated about the turtles and their nesting season through a newsletter.
Source: South Florida Business Journal