Keyes Luxury Report Gives Insights into High End Markets in South Florida

From the Sun Sentinel 

The luxury market in South Florida is unique in many ways. The defining characteristics of this rarified set of properties have led to "what luxury real estate agents are happily calling one of South Florida's best price and sales surges in recent memory."

Leading the way in bringing this information to the public eye, The Keyes Company's Luxury Market Report demonstrated a few of the reasons for this boom - when other cities might not be undergoing the same increase in sales of their own high-end listings.

Check out insights into the mind of Keyes' Vice President of Luxury, Kevin Leonard, and why this trend might continue here.

http://www.sun-sentinel.com/business/fl-bz-south-florida-luxury-home-market-spikes-20180718-story.html#

How Millenial tastes are changing South Florida Real Estate.

Cover Story: How South Florida's  residential developers are making  their projects millennial -friendly.

This week's South Florida Business Journal cover Story by Brian Bandell is on Millenial Housing Development. In it, Keyes Company CEO & President, Mike Pappas, is quoted on the livng styles of  the millenial generation. Read below! 

Realtor Recommendations: Flipping homes? Condition Matters

By Lucy Ballesteros and Debbie Riano

The home flipping process can take any house and turn it into a dream sanctuary, but be careful! While a listing might look perfect on the outside, not every home condition is in tip-top shape. Before you sign on the dotted line, there are some things you should be on the lookout for. With these few tips, you’ll be a pro at your next walk through.

1. Underneath it all

When purchasing a flipped property you must be wary of any mold issues. Many flipped properties were at one point distressed properties and may have had water issues. The investor who picked up the property may or may not have tested for mold or might have just painted over it. Pay for a mold test for peace of mind.

2. Cover yourself

Check the roof, its age, any potential leaks, or paint overs. Replacing a roof is a huge investment and many investors will not want to put that much money into a replacement if it isn't absolutely necessary.  You can check with the city where the property is located for permits on how new a roof really is.

3. It’s electric

On older properties, the electrical and plumbing may not be up to code. Investors will not replace electrical panels or update plumbing connections unless there is a problem. Hiring a good company to perform an inspection is key to finding out all the details regarding your plumbing and electrical work on your property. You can use a well-researched inspection report to negotiate on the price of your soon to be property.

Remember, not all flipped homes have issues! Don’t be afraid to keep these options open when you’re shopping the market for a new home. For more flipped home advice, check out the article below, or give us a call at 561-713-8872.

Four Questions to Ask When Buying a Flipped Home - Homes.com

SoFla luxury condo sales to stay slow as single-family market grows in ’18, experts say

Condo developers to pull back after years of sky-high appreciation

With a large number of luxury condos remaining available paired with low sales, it can be expected to see many projects be cancelled in the 2018 year. However, this may prove beneficial to buyers as some sites may start reducing their prices. Mike Pappas, along with several other Miami real estate figures speak to The Real Deal about what to expect in the coming 2018 year.

“In the luxury market, they set prices too high.”

- Mike Pappas, Keyes Company CEO & President

Mike Pappas, president of the Keyes Company, said the double-digit appreciation new condos experienced between 2013 and 2015 created a false perception about what those same units could sell for in 2016 and 2017. “Over the last two years, we have seen that greater appreciation coming back to down to reality,” he said.

Read the full article here!

Single Family Homes on the Market range up to $65 million.

Recent article of Miami Today discusses the amount of high priced single family homes.

Source: Miami Today

The number of expensive single-family homes is not dwindling, but instead there is an abundance of them. 

With the high price of these homes, only a small amount are willing to reduce the price. Many sellers are wary to reduce their price, but in the market for the past few years, it may be what is needed to get the listing sold. 

Sales of listing were also slowed down with the arrival of Hurricane Irma in South Florida. Agents were out of the office for about 2 weeks, causing closings to be delayed and making the market seem sluggish.

"There is a strong demand and interest for properties that are priced at a realistic market price and are in move-in condition," says Keyes CEO and President Mike Pappas. He ends with saying that he believes that the upcoming season will be good for the luxury market due to the proposed tax reduction.

New Tax Plan and it’s South Florida Real Estate Impact

The proposed tax plan’s biggest impact for our market may come out of state.

Source: Miami Herald

 Local real estate experts believe that the short term impact could be a slight decrease in pricing in the area as new buyers weigh the cost of renting versus owning a home. Eventually, the benefits of owning a home will outweigh the costs and that, along with South Florida’s abundance of foreign buyers, will keep the market steady. 

Most believe that the biggest impact will come from buyers from higher-tax areas like New York and California who might start looking at South Florida and Miami as much more desirable locations if the residential mortgage interest expense deduction is lowered.

Read it in their own words here!

Home mortgages are becoming more affordable and easier to more home buyers now.

First-Time Home Buyers are finding it easer to obtain a mortgage now.

"It's easier than one year or five years ago," said VP of Capital Partners Mortgage, an affiliate of the Keyes Company, when referring to how much easier it is to obtain mortgages. Rates have now changed, before they usually required a 20% down payment, but now could be as low as 3% down.

"Some loans only had a fixed rate for two years, it was predatory; people were set up to fail." said Garcia. Both mortgage companies, Fannie Mae and Freddie Mac offer loans starting with a low 3%, but are limited to $424,100 maximum. However, what is different is that federally backed loans have began to ease up on some of the requirements, acknowledging that many first-time buyers may have high student loan debt.

While loans and mortgages may help, the other issue that is the amount of housing that is able to be afforded by these first-time buyers. Roughly, there is only 16% of homes in South Florida that are under $180,000. Having mortgages that are easier to be eligible for, has allowed for first-time buyers to really get into the market. 

Charlie Weiss, a mortgage broker in Boca Raton stated that nearly 5 years ago, it was almost impossible to get a mortgage with less than 35% down. "Now many companies are getting into the private mortgage business." said Weiss. Believing that this will make it easier for buyers to secure the necessary loan coverage. 

What will the new travel ban mean for Miami's real estate market?

Venezuela being part of the list may affect Miami's real estate.

The new revision of the U.S Travel ban now includes Venezuela, causing a stir among South Florida's housing market.

With a large part of the real estate market dependent on Latin America, any changes made to countries like Argentina, Brazil, and/ or Venezuela is directly felt in Miami according to Coldwell Banker realtor, Danny Hertzberg.

In Doral alone, Eli Santurio, The Keyes Company district manager of sales in Doral, said that his associates were wary of how the new ban would affect them. Venezuelans make up 32% of the Hispanic Population in Doral.

Venezuelans spent $930 million in real estate in 2016, making them an important part in Miami's real estate economy. 

“Their overall impact has waned,” said Mike Pappas, president of The Keyes Company. “Three years ago was the peak of the Venezuelan buying. Recently it’s become more difficult to people to get their money out of the country, so they’ve had less punch in the industry.

Read the rest of the article here!

Keyes Wellington welcomes Realty Elite agents!

Keyes increases Wellington market share with new acquisition.

The brokerage just finished a closing on the purchase of Realty Elite The Palm Beaches over in Wellington. The company founded by David Lopez back in 2007 had closed on $92 million in sales for 2016. 

The Keyes Company President/ CEO Mike Pappas (Left) and Realty Elite founder David Lopez (Right)

This deal will be adding 64 new agents to The Keyes Company, adding to the other expansions that The Keyes Company has also acquired Bluffs Real Estate of Jupiter and two local offices of Colorado-based Shorewood Real Estate. 

Benefits to this will be that Realty Elite agents will be working out of the Keyes Wellington office, removing the cost of operating two different offices. 

Read more here!

Keyes Co. President Mike Pappas gives his insight on the current real estate market.

Cash is no longer king for South Florida homebuyers.

Cash sales peaked in the first quarter of 2011, when more than seven out of 10 deals didn’t involve a loan.

“The market has dramatically shifted,” said Mike Pappas, president of Keyes Co. in Miami. “Cash drove the market in the bottom-feeding and opportunistic times, but today we have a real market with real buyers, and they need mortgages.”

Investors descended on South Florida in 2011 and 2012 as the six-year housing bust was ending. With prices hitting bottom, bargain hunters with fistfuls of cash scooped up foreclosures and short sales for pennies on the dollar.

Read the rest of the article here!

Keyes Honored with Prestigious Customer Service Award

The Keyes Company Earns Prestigious National Recognition for Excellent Real Estate Service

The Keyes Company honored among top large companies with Q_E Award from Quality Service Certification! 

The Keyes Company has been honored for its unparalleled customer satisfaction and service quality with a national recognition – the Q_E Award – from Quality Service Certification, Inc. Keyes was one of the winners in the Top 5 Large Companies category, which was based on a minimum of 3,000 closed transactions in 2016.

The 2017 Q_E Award recognizes the Top 5 Large Companies, the Top 10 Midsize Companies and the Top 20 Small Companies, spanning 22 states, from Florida to California and Minnesota to Texas, and includes some of the most respected independent and well-known national and regional brand names. Winners are determined by an independent survey of buyers and sellers of real estate that actually closed with a real estate company participating in the assessment survey administered by QSC and Leading Research Corporation. 

Service satisfaction performance of brokerages is measured during a single calendar year from January 1 through December 31. Keyes earned an average rating of 4.83 (out of five stars) in the survey. 

“There is no greater honor than earning the highest ratings from our customers for the hard work of our agents touching all the bases and bringing home a fantastic service experience for every one of our clients,” said Mike Pappas, Keyes President and CEO. “That's why winning a Q_E Award from Quality Service Certification is the best award any brokerage in real estate can receive.”

Quality Service Certification, Inc. created the Q_E Award to foster, encourage and recognize the highest levels of service quality and customer satisfaction. QSC with its sister company Leading Research Corporation assures the careful measurement and independent validation of service and satisfaction results.  

Eligibility for the 2017 Q_E Award requires a minimum number of surveys sent and returned, which may be adjusted from year to year based upon market conditions and the number of participants. More than 30,000 real estate agents and 750 companies elected to participate in the customer satisfaction assessment survey process in 2016 for the 2017 Q_E Award.

Solar panels may become standard on new homes in South Miami.

South Miami is set to become the first city in Florida to mandate solar panels on new homes.

(Credit: Getty Images)

Similar to San Francisco, South Miami will become the first city in Florida to require new homes to install solar panels. San Francisco, Miami, and two other smaller California cities will be the only jurisdictions in the United States to have these renewable energy regulations. 

A final reading was set on July 18th, but prior to that there were enough votes for it to pass. South Florida mayor, Phillip K. Stoddard, is a long time advocate of renewable energy solutions and believes that passing this will help reduce carbon emissions.

There is still opposition to this, as some believe that forcing homeowners to install the solar panels results in financial issues. South Miami Commissioner, Josh Liebman, believes that this will place financial burden in low-income neighborhoods and affect the development of affordable homes.

Read the full article here.

South Florida Bucks the National Retail Trend.

With the company expanding effortlessly and paired with the convenience of it, Amazon is starting to become the top choice when it comes to shopping.

The beginning of 2017 saw many business start to scale down their operations, with stores like Sears, JC Penny, and Macy's closing several of their stores. While other companies are completely shutting their doors, South Florida is still appears to be the spot for retail stores.

Areas like Bal Harbour and Wynwood keep up with heavy foot traffic that allows for these stores to remain in operation. Because of the surrounding atmosphere, shoppers that are having a good time are likely to be in a better mood to browse through the stores.

Read the rest here!

Keyes' Christina Pappas named winner of the 2017 Up & Comer in Real Estate Brokerage

Keyes' Christina Pappas named winner of the 2017 Up & Comer award in Real Estate Brokerage!!! 

The awards focus on their achievements in the workplace and in their charitable and civic contributions. Many of the honorees have already made their mark in senior-level positions or are on the fast track to do so.

Read more here!

With apartment units rising in numbers, what does this mean for rent prices?

"We're starting to see rental prices wane, or at least pause." - Mike Pappas

Apartments are constantly being built, and with the approaching over building of apartments it may tip the rent prices in favor of renters. 

Market watchers estimate that this year will see the finished construction of 15,200 new apartments across South Florida, including 5,700 units in Miami-Dade County, 5,000 in Broward County and 4,500 in Palm Beach County. 

The pos-recession rise in monthly rents may stop or even decline as the number of apartments in South Florida increases.

See the full article here: The Real Deal: South Florida Real Estate News.