Construction starts on Florida solar plant

 

A BlueChip solar facility

Lake Mary-based BlueChip Energy is building what is purported to be Florida's largest solar panel plant, with the power to build approximately 3,200 homes. The $120 million plant in Sorrento Farms is larger than the state's existing DeSoto plant, which is a Florida Power & Light project. The facility is smaller, however, than other announced facilities in Florida -- one in Gadsden County and a second in Walton County. There is room for further expansion of production, according to BlueChip, potentially as much as 80 more megawatts. The planned capacity is for 40 megawatts. [Sun Sentinel]

Florida tops United States in loans in foreclosure: report

 

More than 14 percent of loans in Florida were in foreclosure at the end of the third quarter, the highest rate in the United States, according to a report from the Mortgage Bankers Association. Just under 19 percent of those loans were "seriously delinquent," that is, more than 90 days delinquent. The non-seasonally adjusted foreclosure inventory rate for all loans in America last quarter was 4.43 percent, which was unchanged from the previous quarter and four basis points higher than the third quarter of 2010. The MBA's report looked at 43.5 million first-lien mortgages on one-to-four unit residential properties in the country. Nationwide, the rate of foreclosure starts was up 1.08 percent in the third quarter, a 12-basis point increase from the second quarter. -- Alexander Britell

Porsche Design and Dezer Properties propose innovative condo tower

Mark Freerks

Porsce Design has teamed with Gil Dezer and Dezer Properties to build an innovative condo project in Sunny Isles Beach.

 

Porsche Design’s entry into condominium development features a partnership with Dezer Properties  to develop a 57-story tower in Sunny Isles Beach with a one-of-a-kind robotic parking system that will locate owners' cars next to their luxury unit.
Plans submitted to the city in preparation for a Nov. 17 public hearing show that the building will feature 132 condo units with 284 robotic parking spaces.
The architectural plans submitted to the city show that the innovative design features three circular, rotating platforms at the building’s center that operate like elevators, transporting the cars to their destinations.
The robotic parking systems currently used in other condo developments move cars to a rack, similar to boat storage.
The building would be built on 2.21 acres site at the site of the Golden Nugget Beach Club, at 18555 Collins Ave. The site sits on the east side of Collins Avenue, immediately adjacent and north
Neither Dezer Properties principal Gil Dezer nor Porsche Design were available for comment.
The round building will rise to 641 feet, with 595 feet for the building and the balance for the parapet, according to public records.
Many of the project’s units will be duplexes, with pools featured on every other level. Parking is also on every other level.
According to a notice posted at the Golden Nugget, city commissioners will consider granting the developer a transfer of 115,391 square feet of development rights to the project.
“The project is new, it’s exciting,” Vice Mayor Lewis Thaler said.
Dezer Properties is the most dominant condo developer in Sunny Isles Beach, having built several projects there in partnership with Donald Trump. In addition to the Porsche Design site, Dezer owns several other undeveloped properties on Collins Avenue.
Porsche Design Studio was established in Stuttgart, Germany, in 1972 by Ferdinand Alexander Porsche, grandson of the Porsche founder and designer of the Porsche 911. In the decades that followed, numerous classic men’s accessories – such as watches, eyeglasses and writing utensils – were created and marketed worldwide under the Porsche Design brand.

Source: South Florida Business Journal

Real Estate Report: Miamians Want to Move to Other Parts of Florida, New Yorkers Want to Move to Miami

​Real estate listing supersite Trulia has compiled its first Metro Movers Report, based on data culled from page views of its site. The report shows where Americans are looking to move and where they're looking to leave.

Apparently Miamians have no intention of departing our warm weather, but they would like to explore other Florida options. Meanwhile, not many other Floridians would like to move to Miami, but New Yorkers sure would.

The Metro Mover Index shows that for every Miamian looking at out-of-town listings on Trulia, only 0.82 out-of-towners are checking out real estate in Miami. That's not a good indication for future growth and is considerably lower than most other markets in Florida, but Trulia notes it's a better index than most major metro areas.

Here are the top ten for both metro areas with people looking to move to Miami, and metro areas where Miamians are thinking about moving to.

​So where are Miamians considering moving to? Apparently not too far away. Fort Lauderdale, West Palm Beach, Port St. Lucie, and Orlando top the list. (Ugh, why would you do that to yourselves?) The only non-Florida areas in the top ten are the NYC area, Atlanta, and L.A.

Oddly, for as much as Miamians might want to live in other parts of Florida, most Floridians do not want to move to Miami. Except for Fort Lauderdalians and Palm Beachers, that is, but they've always been wannabe Miamians anyway. Two-thirds of people searching for homes in Miami through the site currently live more than 500 miles away.

Miami is apparently known as the sixth borough for a reason. We're the second most popular search option for New Yorkers looking to move out of their region, only behind L.A.

Source: Miami NewTimes

Greenest of Green Home Is A First In Miami Beach

 

2020 Alton Road – LEED Platinum / Net Zero Residence

Imagine having a four-bedroom house with a pool and not paying a dime on your electric bill. That's about to become a reality at the first "Platinum" green home in Miami Beach.

"Platinum" is the highest energy efficiency rating you can get for a house.

Robert Arkin is the general contractor of the ultra-modern home that he calls "sustainable luxury." It's a 3,200 square foot house located at 2020 Alton Road and it's so green, they don't plan to pay an electric bill.

"We're trying to obtain net-zero," Arkin said, "which means at the end of the day we're not going to be paying for electricity."

On the roof, they'll have solar panels and collapsible wind turbines. The pool in front of the house will contain no chemicals or chlorine. It will electronically clean itself.

"We'll also have geo-thermal air-conditioning," Arkin explained. "It's where we take water from the ground and we cool the air-conditioning system with [it]."

Ari Sklar is the architect of the house that has so many bells and whistles, it even comes with an iPad that controls everything.

The City of Miami Beach is excited about this pioneering project. It fits right in line with their desire to become a greener city.

Miami Beach Commissioner Michael Gongora visited the site and said he's hopeful this will encourage more green building in the area.

2020 Alton Road is scheduled to be completed in April 2012. The house is currently on the market. The asking price is $2.19 million.[NBC Miami]
2020 Alton is trying to be a "NET ZERO" home. Essentially this means that its system would produce enough power to run the home without taking energy from the FPL grid. In fact, the meter would spin backward and the homeowner would supply the grid with surplus power and receive a credit on their monthly FPL statement. In order to do this 2020 Alton will utilize Photovoltaic Solar panels, Vertical axis wind turbines, Geothermal heating and cooling, as well as the most advanced insulation technologies. In addition 2020 Alton will have in place a rain water collection system to harvest and store all of the rain water.

.

Oak Grove Apartments sell for $14.2M

November 17, 2011 12:00PM

Oak Grove Apartments

The 369-unit Oak Grove Apartments in Miami have been sold for $14.2 million, in a deal brokered by Cushman & Wakefield. The property was acquired by a South Florida-based investment company that paid approximately $46 per square foot. Oak Grove, which was built in 1972, is located at 15401 NE 6th Avenue on a 10.6 acre lot. Cushman multi-family housing specialists Rosendo Caveiro and Brad Capas represented the seller, a private investment group based in the Northeast. The average unit size is 840 square feet. -- Alexander Britell

Miami Heat forward Mike Miller puts home on market

Miami Heat forward Mike Miller has placed his Hillsboro Shores home for sale, listing the 9,968-square-foot estate for $9 million. Miller, who signed with the Heat in the summer of 2010, has to pay an annual tax bill of $180,000 on the property. Miller's future with Miami could be up in the air depending on the outcome of the NBA lockout negotiations, although he said he was not looking to move. "It's a couple of things," he said. "Just preparing myself; never know what can happen." [Sun Sentinel]

Coral Gables, Biltmore reach deal

The city of Coral Gables and the Biltmore hotel have reached a deal in principle in which the hotel would repay much of its overdue rent and golf fees, according to the Miami Herald. The hotel is owned by the city, and the row over delinquent rent has lasted since 2009. As part of the plan, the hotel's operator, Seaway, would resume paying rent to the city, with base rent at about $800,000 per month, and it would also pay back about $650,000 in unpaid golf management fees. Seaway has argued that the city should reinvest much of the money it receives in rent, but that has continued to prove an issue between the two sides. [Miami Herald]

Sam Nazarian finds lender for Miami Beach SLS hotel project

November 16, 2011 02:15PM

The hotel is set to open in 2012

 

Los Angeles hotelier Sam Nazarian, who plans to open a new SLS at the former Ritz Plaa in Miami Beach next year, has obtained a $51.2 million construction loan for the project, according to the Wall Street Journal. The hotel, which will feature a restaurant from chef Jose Andres, along with a Hyde Beach lounge, will have several units designed by rocker-turned-designer Lenny Kravitz. The loan, which came from a Lowe Enterprises Investors pension fund, is approximately 63 percent of the costs of the project. [WSJ]
]

South Florida a real estate target for American buyers, too

November 16, 2011 11:15AM
South Florida is the number one destination for would-be American real estate purchasers from places like Washington, Atlanta and New York City, the Miami Herald reported. "Despite the big price declines, and probably because of the big price declines, we're seeing so much inbound search activity from people within Florida and especially from outside Florida," said Jed Kolko, Trulia's chief economist. Miami-Dade had one of the highest number of Internet searches by those looking to move into the county, as compared to those moving out. [Miami Herald]

NBA lockout could cost Miami area $200 million in revenue

The NBA lockout is having an impact on Miami's service industry, turning an area usually thriving around the American Airlines Arena into something far quieter, and the effect is expanding across the city. "These guys want to make more money, but they are totally messing with me," said Chris Pereira-Ignacio, a bartender at the Doral Buffalo Wild Wings. "Last year for the NBA it was crazy. It was full house at capacity -- it was great." According to some economists, the Heat represented an average of $200 million for South Florida's economy. [CBS Miami]

Miami the country's top real estate turnaround town: report

November 16, 2011 09:45AM
Miami was the top "turnaround town" in the country in the third quarter, according to a report from Realtor.com. The rankings look at median price appreciation, reductions in age of inventory and inventory counts, along with unemployment rates. Miami has one foreclosure for every 407 homes, an improvement over the national rate of one out of every 213. Condo sales have also increased 79 percent in the first five months of the year. Six Florida markets were included on the list, with Fort Lauderdale ranked fourth. [Sun Sentinel]

6 low-cost marketing ideas to get noticed

ANAHEIM, Calif. – Nov. 16, 2011 – You don’t need to break the bank to expand your marketing efforts and build connections, marketing expert Julie Ryan, with Strategic Thinking in Australia, told a crowd at the Marketing Without Money session during the National Association of Realtors® (NAR) 2011 Realtors® Conference & Expo in Anaheim, Calif. “If you have a tight budget, you tend to be more focused on making sure every single dollar works harder,” Ryan said.

Regardless of how large or small your budget is, make your marketing message stick by focusing on three core areas: Impact (offering a message of value to clients), frequency (making contact a minimum of at least three times in three weeks to get people to remember you), and building relationships to form lasting connections.

Ryan suggested some of the following low-cost marketing ideas at the session:

1. Offer congratulations: Scan the local newspaper in search of good-news stories, such as people in the community earning an award or a job promotion, and then send a note congratulating them on the feat. That pat-on-the-back recognition makes you memorable and helps you build connections with people in your market, Ryan said.

2. Provide a special touch: To give your message more impact, print out an invitation to an open house for your listing and roll it up and tie it with a ribbon. Then, place it in door hangers on neighbors’ doors, mail the rolled-up invitation in a cylinder or even hand-deliver it.

3. Show time: Create videos showing off your listings and post them on sites like YouTube to expand your reach. Also, consider creating videos of your community that explain what it’s like to live and work there, or that answer common real estate questions, Ryan suggested.

4. Try location-based social media: Sites like Foursquare aren’t just for checking-in to local areas, but you can use them to leave tips and relevant, helpful information at every single location your customers are likely to frequent – such as local restaurants or where to find the best views in the city.

5. Be a valuable resource: Once you’ve identified something your customers are interested in, set up a Google Alert to monitor that topic so you’ll get a notification when something matching those keyword terms surfaces on the Internet. You can then pass the message along through an e-mail or quick phone call to let your client know about something they may not know about yet. It’ll help you build stronger connections with consumers, Ryan said.

6. Reach out to the community: Instead of just writing a donation check to schools or charitable groups, try offering up an award that you can present or hosting a special event with community involvement. For example, present a book award at a middle or elementary school to a student for a job well done, or hire the local elementary school band to play at your upcoming auction or as part of a special event at your office.

Source: Melissa Dittmann Tracey, REALTOR® Magazine

© 2011 Florida Realtors®

Miami approves hotel near UM med school

 

November 15, 2011 03:45PM

The UMLSTP

Developer Wexford, which built the recently-opened University of Miami Life Science and Technology Park in downtown Miami, has won approval from the Miami-Dade County Commission to build a hotel near the University of Miami's medical school campus. The hotel would have 225 rooms and 18 stories, along with a 184,000-square-foot conference center. The hotel was among the potential developments predicted last year by Bill Hunter, leasing manager for Wexford at the UMLSTP in the burgeoning Health District. The commission has approved a $90 million bond for the hotel project. [SFBJ]

Coral Gables is the most expensive college town in Florida

November 15, 2011 12:00PM

A home for sale in Coral Gables

Coral Gables is the most expensive college town in Florida, with an average home listing price of $521,767, far above the next-highest town, Boca Raton, according to a report from Coldwell Banker. The city is also the 11th-most-expensive college town in the country. Boca Raton, the site of Florida Atlantic University, has an average home listing price of $322,662, which is followed by the Miami area around Florida International University, which is at $246,431. The most affordable college town in Florida is Orlando, the home of the University of Central Florida, which has an average price of $139,912. Memphis is the most affordable college town in the country, with an average price of $89,244. -- Alexander Britell

Broward aviation officials sign Dania lease

 

November 14, 2011 01:30PM

2200 SW 45th Street in Dania Beach

Due to the impending expansion at Fort Lauderdale International Airport, Broward County's Aviation Department has signed a lease for 32,812 square feet at 2200 SW 45th Street in Dania Beach, a property owned by Boston-based Cabot Properties. Four brokers worked on the deal, including Butters Realty's Tom Viscount, Halliday Group's John and J.C. Halliday and Infinity Commercial's John Dohm. The long-awaited $790 million runway expansion at Fort Lauderdale-Hollywood International Airport Fort Lauderdale-Hollywood International AirportLatest from The Business JournalsStalled front floods some South Florida businessesBroward County approves airport expansion settlementGulfstream to offer daily West Palm Beach-Bahamas flightFollow this company will mean the departure of the Broward County Aviation Department from its home on airport grounds.This expansion involves a new runway, which will go through the current site of the department's office. [SFBJ]

Developer Robins pays $27 million for four Design District properties

 

November 14, 2011 04:30PM By Alexander Britell
Developer Craig Robins is continuing his buying spree in the increasingly-active Design District in Miami, according to deeds filed in Miami-Dade County Circuit Court , taking four properties for a total of $27.3 million.

"[Robins] has been very active," said Lyle Chariff, president of Chariff Realty Group, who facilitated the transaction for the buyers and the sellers.

The four properties, which were each recorded this month, are located in the Design District; Robins purchased the properties through limited liability companies.

Chariff and colleague Mauricio Zapata facilitated the transactions, which are as follows:

Lady Jane Acquisitions took 99 NE 39th Street for $10 million; Norwegian Wood Acquisitions bought 92 NE 40th Street for $7 million; Lovely Rita Acquisitions bought 95 NE 40th Street for $8.2 million and Amir Lots purchased 3815 NE Miami Court for $2 million.

"We've seen lots of action since the announcement of high-end luxury retail tenants moving to the district," Chariff said.

Robins declined to comment.

Resorts World Miami takes ownership of Omni site

 

November 14, 2011 02:15PM

Resorts World Miami

Genting's Resorts World Miami has officially acquired the Omni complex in downtown Miami, naming Christian Goode president. The deal is the first step in the firm's plan for the area, and has now invested $500 million in the project. Goode was recently CFO of the $880 million Resorts World New York City project in Queens, which opened at the end of last month. Arquitectonica will design the 30

Miami residential sales jump 51 percent in third quarter: report

 

November 09, 2011 03:00PM
The sales of single-family homes and condominiums in Miami-Dade County rose by 51 percent in the third quarter, according to a report from the Miami Association of Realtors. It was the 13th consecutive quarter of increasing sales in Miami. The average sales price of single-family homes also rose, jumping 19 percent, and the average sales price of condos jumped by 21 percent. "Strong demand from international buyers is fueling robust sales activity in Miami despite low consumer confidence and high unemployment," said Jack Levine, chairman of the board of the Miami Association of Realtors. "Local sales are expected to set a record this year that should exceed the height of the boom in 2005." Total housing inventory in Miami-Dade County fell 38 percent from the same period in 2010, with a 65 percent total drop since August 2008.  -- Alexander Britell

Miami's foreign sales could be better in 2012

November 08, 2011 12:00PM
Real estate brokers assembled in Miami yesterday said they expected the market's international sales to be even stronger in 2012, following a period of purchasing, particularly from Latin America, that Related CEO Jorge Perez said "saved" Miami's residential sector. "You have a unique opportunity for the next few years," said Moe Velssi, the president-elect of the National Association of Realtors at the International Real Estate Conference in Coral Gables. "This will be a record-breaking year for the number of sales in the Miami market," said Teresa King Kinney, the CEO of the Miami Association of Realtors. "There's no other market in the United States can boast these kinds of numbers

Condos get new life as rentals

 

A modified Florida law making it easier to dissolve condominium associations has led to a number of condos being converted back into rental apartments, especially in the state's suburban areas, according to the Sun Sentinel. "Most people see this as a way out because it should not have been a condo in the first place," said Jennifer Drake, an attorney for Becker & Poliakoff in Fort Lauderdale. At least 36 condos in Broward and Palm Beach counties have been changed back into apartments in the last three years, according to a report from Condo Vultures. But the movement is finding opposition. "I don't want to live in a rental community; that's why I bought a condo," said William Bush, a board president in Weston. "I think people would be dead-set against it."

World Resorts Miami

The Genting Group on Wednesday doubled the footprint for Resorts World Miami as part of a calculated step to win support for a gambling license from the Florida Legislature.
Genting purchased the $161 million note on the troubled Omni Center from Miami real estate investors Jorge Perez, Jimmy Tate and Sergio Rok. The deal, whose purchase price was not disclosed, gives Genting control over the entire $206 million mortgage on the Omni, which is currently in the midst of foreclosure. Genting purchased the other $45 million note last week.
The plan: turn Omni into the first stage of Resorts World Miami with the ability to open a casino with restaurants, bars and entertainment facilities as soon as Fall 2012 — within months of receiving potential approval from state legislators for a gambling license.
“The Omni acquisition is a strategic acquisition that answers the Legislature’s concerns about where are the jobs,” said Colin Au, a Genting principal. “We are taking a calculated risk. We are responding to the concerns and trying to create jobs as fast as possible. The Omni is what’s called a decorator-ready solution.”
By combining the Omni Center with the Miami Herald property and the Checkers site Genting purchased on Biscayne Boulevard, the Malaysian conglomerate has now assembled about 30 acres. While Genting must still complete the foreclosure process on the Omni property, company officials remained optimistic Wednesday that they could reach an amiable resolution with property owner Argent Ventures and gain control of the site within a few months.
The Omni mortgage acquisition came on the same day Genting unveiled its $3 billion master plan for Resorts World Miami.
The mixed-use project is unlike anything South Florida has seen in terms of sheer magnitude and design. With plans for four hotels, two condominium towers, more than 50 restaurants and bars and a luxury retail shopping mall, it’s being billed as one of the largest projects in the state.
The design of the 10 million-square-foot development draws inspiration from the region’s coral reefs. The centerpiece is a 3.6-acre outdoor lagoon — equivalent to 12 Olympic-size swimming pools and surrounded by natural sand beaches — that would allow visitors to literally swim from Biscayne Boulevard to the edge of Biscayne Bay.
“This will put Miami on the map and make it a destination,” said Bernardo Fort-Brescia, co-founder of Arquitectonica, which is designing the project. “Miami has not seen resorts of this importance, Orlando has and maybe Las Vegas. This will make Miami more than competitive. It will have an advantage.”
By acquiring Omni, Genting is in position to speed up the development of Resorts World Miami and offer an immediate benefit of revenue generation and new jobs. The casino would go in the empty 650,000 square feet that once housed the Omni Mall, a process that Genting officials say would take minimal structural work. The Hilton Hotel, existing office tenants and parking garage would remain. An Omni casino would create 5,000 permanent jobs and $100 million per year of taxes for state and local governments, Genting said.
Miami state Rep. Carlos Lopez-Cantera was both skeptical and intrigued by the idea.
“It’s interesting, I would like to see how they would accomplish that,” said Lopez-Cantera, the House Republican leader. “I would want to see all the details. That’s a lot of jobs they’re talking about

Source: Miami Herald
Read more: http://www.miamiherald.com/2011/09/14/2407173/genting-unveils-plan-for-miami.html#ixzz1dRKode7R

For Sale: 6BR/6BA Single Family House in Golden Beach, FL, $5,250,000

For Sale: 6BR/6BA Single Family House in Golden Beach, FL, $5,250,000

How to buy a house with a reverse mortgage

WASHINGTON – Nov. 7, 2011 – Do you know that if you are 62 years or older you may be able to buy a house or a condominium using a reverse mortgage? A reverse mortgage allows you to get money from a lender, but you do not have to pay it back (or make any monthly payments) until you sell or die.

How does it work? Let’s assume you just sold your existing house and want to downsize to a smaller house or a condominium unit. You have $300,000 cash from the sale, and since you qualified for the up-to-$500,000 exclusion of gain, you will not have to pay any capital gains tax.

Your new property will cost approximately $300,000. You are retired and do not have a current, steady stream of income other than your modest retirement fund. You might be able to get a traditional mortgage but you will probably have to come up with a large deposit – maybe as high as 30 percent of the sale price.

This will significantly drain your finances and affect your current lifestyle. What about a reverse mortgage?

You could consider the FHA Home Equity Conversion Mortgage, which is the only federally insured reverse mortgage available.

To qualify, you must be at least 62; if you are buying with a spouse, both of you must meet the age requirement. The house you buy must be your principal residence and you must certify that you will live in the house within 60 days of obtaining the loan. Although single-family residences and properties with two to four units are eligible, cooperative housing is not. And if you are considering buying a condominium unit, make sure that the entire condominium association is FHA-certified.

You (and your spouse, if applicable) will be required to meet with an approved credit counselor because there are significant legal and financial implications to such a mortgage. If you plan to leave your house to your children, for example, a reverse mortgage may leave little or no equity should you live a long time. Additionally, there are costs involved in such a transaction, although in many instances, they can be included in the amount of the loan. A counseling certificate must be submitted to the lender before closing.

You must use your own cash for the difference between the amount of the reverse mortgage and the sale price. Sellers can pay such costs as transfer tax, real estate commission, title search and other fees typically paid by a seller, but seller credits or set-asides for repairs will not be permitted.

How much will you be able to get by way of the reverse mortgage? That depends on a number of factors, primarily the age of the youngest borrower, the interest rate, the ZIP code and whichever is lower – the actual sales price or the appraisal. Why ZIP code? Because there is a maximum claim amount, which is linked to the FHA loan limit on single-family dwellings. That limit varies by state, county and even city. For example, in the District of Columbia, Arlington, Alexandria, Bethesda and Gaithersburg, the current limit is $625,500. In other areas, it ranges from $271,050 to $494,500.

Several online sites have very helpful loan calculators that will assist you in determining how much money you will need. I took our example, and plugged in a D.C. ZIP code and the ages of husband and wife in the mid-70s. According to the calculator, I was able to get a reverse loan of $198,187 for a standard, fixed-rate reverse mortgage. That means I will need a little over $100,000 to buy that $300,000 property.

Is a reverse more favorable than a regular mortgage? Yes, for two reasons: First, I will still have almost $200,000 left from the earlier sales proceeds. But more important, I will not have to make any mortgage payments. The bulk of a regular mortgage payment is the portion that goes to interest. For example, if I were to get a 30-year fixed loan for $200,000 at 4.25 per cent, my monthly payment would be $975 – money I am saving with the new reverse loan.

When does the loan come due? When you move out or die. At that time, you or your estate will either have to pay off the then outstanding mortgage – which will be much higher than the original loan, since interest will be added yearly – or sell the property. But one thing is clear: Neither you nor your heirs will ever have to pay more than the value of the house; that’s what FHA guarantees, since it has to pay any excess.

A reverse mortgage has many merits, but there are also many negatives. Educate yourself carefully; this may be the most expensive project you ever do.
Source:  washingtonpost.com, Benny L. Kass

Is the new-home market finally leveling off?

WASHINGTON – Oct. 31, 2011 – The nation’s largest home builders say that buyer traffic has picked up, sales increased and prices are stabilizing, according to The Wall Street Journal. The Commerce Department reported that, for the first time in five months, new-home sales rose, increasing 5.7 percent in September. Builder confidence also rose, reaching its highest level in a year in October, according to an index of builder sentiment by the National Association of Home Builders.

Falling home prices and low mortgage rates have encouraged buyers, some builders report. Builders say they’re trimming some of the big losses plaguing them since the housing bubble burst; but they note they still have a long climb out of one of the worst years on record for new-home sales.

PulteGroup Inc., the second largest builder in the country, reported an 8 percent increase in revenue to $1.14 billion in the most recent quarter. The company also reported narrower losses in the most recent quarter: $139.3 million in losses this quarter compared to $995.1 million a year earlier, The Wall Street Journal notes.

Ryland Group Inc. also narrowed its losses: $21.3 million from $29.9 million the year prior. Its revenue also increased, rising 23 percent to $249 million, and its closings also rose 20 percent and orders climbed 30 percent.

“Hopefully, this is an indication that we reached a baseline of demand for new homes in this country and that better days are ahead,” Larry Nicholson, Ryland’s chief executive, said in a conference call with investors.

Source: “Builders May be Hitting a Bottom,” The Wall Street Journal (Oct. 27, 2011)