Real estate news, Miami Florida real estate.

The latest statistics released by the Commerce department indicates that construction of new homes has slowed to the lowest rate in 10 years. The number of new house started in January dropped from 2.3 million last year to 1.4 million, a 38% decline.

This data covers the whole territory but of course regions fared slightly differently. According to analysts there are fundamental reasons for the drop that are not only related to harsh weather.

• The following are some of the statistics:

• The Northeast market has a 9% increase.

• The West Coast market has declined by 29%.

• The Middle West dropped by 15%.

• The South’s market is down 10%.

• Counties within those regions also fared differently as well.

Compared to last year, new building permits have also dropped dramatically. This week’s data follows 2 months of improvement and we see an increase of new home construction for November and December 2006. 15 % of all homes sold in the United States are new homes; however this data does not apply to the whole real estate market. Other real estate analysts have pointed to a significant sign of improvement in the market for previously owned homes thus confirming that the market is stabilizing.

This data, by definition is general and does not affect the different real estate markets the same way. In Miami the last few months have shown a definitive signed of improvement. Miami homes fared better than Miami condos; all condos in prime locations fared better than in class 2 locations. South Beach’s condo market proved to be flexible where as other Miami condo market’s such as Brickell and Aventura where definitely among the weakest of areas.

Published by MLR Realty contributor Eric Harari

Florida legislators propose property tax cuts, Miami real estate

The rapid rise in property taxes is one of the "twin threats" facing the real estate market in the state of Florida. The other is property insurance, with rates climbing equally as fast if not quicker.

After a seemingly successful attempt to tackle the property insurance issue, legislators are now addressing the importance of dealing with the property taxes issues. Those property taxes reduction proposals will undoubtedly have a positive impact on a softer real estate market.

The newly elected Florida Governor Charlie Crist proposed to introduce a constitutional amendment Tuesday that would cut property taxes by almost $ 5 Billion dollars, therefore addressing a major issue voiced by Floridian tax payers. The proposed cut would bring the following changes:

• Homeowners would be allowed to "take" their property tax savings with them when they move to another home in Florida.

• Double homestead exemption allowing local governments to increase the current homestead exemption from $25,000 to $50,000.

• A cap the assessed value of non-homestead properties that would limit the tax growth rate to 3% or the rate of inflation, whichever is lower.

As a result, homeowner’s in the first year alone are expected to save over $200 million in property taxes. Tax savings are expected to be almost $1 billion by the fifth year. And businesses and renters, in the first yea, will save over $600 million in property taxes. By the fifth year, savings are expected to exceed $2.5 billion.

If passed these new tax and insurance reduction proposals are going to provide a great ease on Floridian’s which in turn will be a great stimulant for the local real estate market.

- Published by MLR Realty contributor Eric Harari