Either LENNAR believes the market will crash further or they are clearly facing a “cash crunch”. I would overweight the “cash crunch” scenario as the primary reason for such impressive discounts, although lower prices are likely over the next few months.

Will Wall Street’s “smart money”, Hedge Funds and the likes become the great beneficiaries of this real estate buying opportunity?

The irony is Wall Street benefited from the creation of the real estate bubble and now will benefit from it’s crash.

What about John Doe, will he get his slice of the action? Not is he plans to wait for this market to bottom, a process which is clearly under way!

Smart Money has started to make it’s move. No coincidence that recession is all over us and the FED will most likely lower rates another 200 bps or more over the next 6 months. Lower financing rates will likely be another reason to jump start the real estate market.

By the second half of 2008, I feel sellers will be more hesitant to “aggressively discount” their properties.

In any event, with LENNAR’s recent announcement an other similar news to follow, I am more and more incline to believe that the best buying opportunities will happen over the next 6 months…

I welcome your thoughts.

1,441 is number of all single family homes in Key Biscayne of which:
106 or 7.4% are active for sale of which:
19 or 17.9% are on the water or with water access.
87 or 82.1% are not on the water.

$38,500,000 is the most expensive property for sale
$ 1,099,000 is the least expensive property for sale

For those 18 properties active for sale ON THE WATER and/or WITH WATER ACCESS we have the following statistics:
$10,338,421 Ave. Asking Price
5,466 Ave. Adj. Sq. Ft.
$1,731 Ave. Price for Adj. Sq. Ft.
308 Ave. Days on Market
6.75% Ave. Discount from original listing price.

For those 89 properties active for sale NOT ON THE WATER we have the following statistics:
$2,560,269 Ave. Asking Price
3,358 Ave. Adj. Sq. Ft.
$792 Ave. Price for Adj. Sq. Ft.
253 Ave. Days on Market
4.1% Ave. Discount from original listing price.

For a copy of the complete report click here cma_key_biscayne_as_of_26sep07.pdf

I welcome your comments at: michael.schnabel@mac.com

For many, the real estate residential market peaked April 2005. As of the end of August 2007, the number of properties listed for sale has increased 398.8%… 4 times more inventory. At this pace, inventory increases at a monthly rate of 4.91%.

On the other hand, sales are -62.6% lower for August 2007 vs April 2005.

These are the monthly numbers…

Real Estate trends, Property Taxes, Insurance espenses, slowing economic growth, elections next year….

Bad news all, not really. Chaos means opportunity… start doing your homework.

We foresee plenty of buying opportunities in the coming months!!!

1,441 is number of all single family homes in Key Biscayne of which:
107 or 7.4% are active for sale of which:
18 or 17.3% are on the water or with water access.
86 or 82.7% are not on the water.

$38,500,000 is the most expensive property for sale
$ 1,099,000 is the least expensive property for sale

For those 18 properties active for sale ON THE WATER or WITH WATER ACCESS we have the following statistics:
$10,548,889 Ave. Asking Price
5,609 Ave. Adj. Sq. Ft.
$1,699 Ave. Price for Adj. Sq. Ft.
291 Ave. Days on Market
6.8% Ave. Discount from original listing price.

For those 89 properties active for sale NOT ON THE WATER we have the following statistics:
$2,183,410 Ave. Asking Price
2,833 Ave. Adj. Sq. Ft.
$801 Ave. Price for Adj. Sq. Ft.
280 Ave. Days on Market
4.1% Ave. Discount from original listing price.

I welcome your comments at: michael.schnabel@mac.com

This Blog will provide you with occasional reviews of Real Estate Market conditions and trends in and around Miami-Dade County. And if you like numbers and charts, well you will find yourself at home reading some of my reviews.

I welcome your comments, suggestions, ideas, criticism…..

You can reach me at michael.schnabel@mac.com

ps. Michael and Ana Schnabel work as a team for Esslinger-Wooten-Maxwell, Inc., Realtors®  covering Miami-Dade County as well as International transactions, mostly in the Bahamas, Dominican Republic, Cancun, Costa Rica and Panama.