Monday, October 31, 2011

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)
ScottSorensonRealEstate.Com

Friday, October 28, 2011

Bargains abound: What are buyers waiting for?

NEW YORK – Oct. 28, 2011 – With low home prices and ultra-low interest rates, the housing market now offers “perhaps the best deals of a generation,” notes a recent article by Bloomberg Businessweek.

Since the housing boom of 2006, home prices have fallen about 31 percent. Also, mortgage rates have been hovering at record lows for the past few weeks – in the 4 percent range or even lower on 30-year fixed-rate mortgages, according to Freddie Mac’s mortgage market survey.

“It’s hard to see the possibility of losing on a home purchase right now, with these mortgage rates,” says economist Dean Baker. “Prices may go lower, but not by much.”

The article notes the following scenario: Buying a $300,000 home with a 4 percent mortgage rate and a 20 percent down payment would mean a $1,145 monthly payment. The Mortgage Bankers Association recently predicted that home prices may fall another 3.5 percent by mid-2012, but mortgage rates will increase by a half-point. Under that same loan scenario, a home would sell for $289,000 while the monthly mortgage bill would be $1,171 – only a $26 difference.

For those who can qualify for a mortgage, “playing the waiting game” won’t result in much gain, Nariman Behravesh, chief economist at IHS in Englewood, Colo., told Bloomberg Businessweek.

Source: “Crazy Home Deals Await the Creditworthy,” Bloomberg Businessweek (Oct. 24, 2011)

Monday, October 24, 2011

NCH will no longer transport patients between hospitals

COLLIER COUNTY — NCH Healthcare Systems is getting out of the patient transportation business after a mishandled emergency call on Marco Island earlier this month ended with the death of an 80-year-old man.

NCH and Collier County EMS have been under fire since reports surfaced it took 54 minutes to get an ambulance to Paul Anderson, who had suffered a stroke and was at the NCH Marco Island Healthcare Center — an urgent care clinic.

There was confusion over whether NCH’s transport crew or a Collier EMS ambulance would transport Anderson to NCH Downtown Naples Hospital, reports said.

On Friday, NCH Healthcare Systems relinquished its certificate to transport patients, effective immediately, with a letter to Collier County Manager Leo Ochs. The letter was signed by Dr. Allen Weiss, NCH president and CEO.

“We have found that NCH having its own transportation service may have led to varying interpretations as to who is responsible for transport,” NCH said in a prepared statement.

More Details. http://www.naplesnews.com/news/2011/oct/21/nch-will-no-longer-transport-patients-between-hosp/?partner=newsletter_local

Thursday, October 20, 2011

Florida’s existing home and condo sales up in September

ORLANDO, Fla. – Oct. 20, 2011 – Florida’s existing home and existing condo sales continued their upswing in September, according to the latest housing data released by Florida Realtors®. Existing home sales increased 10 percent last month with a total of 15,036 homes sold statewide compared to 13,723 homes sold in September 2010, according to Florida Realtors.

“One of the most overlooked statistical trends in all of real estate is the growth in home sales, both single-family and condo, in the state of Florida,” said Florida Realtors Chief Economist Dr. John Tuccillo. “We’ve seen an upward trend in sales since January 2011, and September’s sales were a full 10 percent above September 2010. Even prices, which have been static over the past few months, are well above where they were in January 2011.

“One of the reasons for this is stabilization in the distressed property market. This is not a problem that’s going away, but there’s a degree of certainty that is helping the market.”

Fifteen of Florida’s metropolitan statistical areas (MSAs) reported higher existing home sales in September; 11 MSAs had higher existing condo sales.

The statewide median sales price for existing homes last month was $133,900; a year ago, it was $135,000 for only a 1 percent decrease. According to analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in August 2011 was $168,400, down 5.4 percent from a year ago, according to NAR. In California, the August statewide median resales price was $297,060; in Maryland, it was $241,564; and in New York, it was $220,000.

In Florida’s year-to-year comparison for condos, 6,666 units sold statewide in September, a 10 percent gain over the 6,035 units sold in September 2010. The statewide existing condo median sales price last month was $87,200; a year earlier, it was $81,800 for a 7 percent increase.

“Historically low mortgage rates and stabilizing home prices all across Florida’s local housing markets continue to attract potential buyers – housing affordability conditions are very favorable right now,” said 2011 Florida Realtors President Patricia Fitzgerald, manager/broker-associate with Illustrated Properties in Hobe Sound and Mariner Sands Country Club in Stuart. “However, financially qualified buyers are still being denied home loans because of overly restrictive lending requirements, and that’s a significant obstacle to the housing recovery.”

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.11 percent in September, down from the 4.35 percent average during the same month a year earlier. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

www.ScottSorensonRealestate.Com

Friday, October 14, 2011

THIRD QUARTER SALES ACTIVITY REMAINS STRONG

NAPLES, Fla.-October 14, 2011- Real estate sales activity continues to increase with single-family home sales and the Naples Beach area is leading the way according to a report released by the Naples Area Board of REALTORS® (NABOR), which tracks home listings and sales within Collier County (excluding Marco Island).

"Single-family pending sales in the $500,000 to $1 million price category increased 30 percent in the third quarter, and the average days a property was on the market decreased 11 percent. The sales activity is shifting from the low end market to higher priced properties," said Coco Waldenmayer, Managing Broker of Engel & Voelkers. In the third quarter of 2011 there are currently only 592 available single-family properties in the $500,000 to $1 million price category.

For the 12 months ending September 2011, all Naples geographic areas showed an increase in pending sales compared to the same 12 months in 2010. Properties in the Naples Beach area remain in the highest demand with 1,776 contracts for the 12 months ending September 2011 compared to 1,471 contracts for the 12 months ending September 2010.

"Overall pending sales in the Naples Beach area increased 21 percent for the 12 months ending September 2011, as consumers take advantage of the good values," said Bill Poteet, President of Poteet Properties.

"Prices in the Naples Beach area may be under pressure, however, sales activity continues to remain strong," said Steve Barker, Supporting Broker with Amerivest Realty. The Naples Beach area consists of zip codes 34102, 34103 and 34108.

The third quarter report provides annual comparisons of single-family home and condo sales (via the SunshineMLS), price ranges, geographic segmentation and includes an overall market summary. The statistics are presented in chart format, along with the following analysis:

¨ For the 12 months ending September 2011 overall pending sales increased 11 percent with 10,036 contracts compared to 9,026 contracts for the 12 months ending September 2010.

¨ Condo sales increased 7 percent with 807 sales in the third quarter of 2011 compared to 752 sales in the third quarter of 2010.

¨ The available inventory decreased 20 percent to 7,069 available properties in the third quarter of 2011 down from 8,800 available properties in the third quarter of 2010.

"Traditional sales represent 60 percent of the sales activity in the Naples area. Foreclosure sales remain low and the number of short sale closings are increasing, this is a sign that banks are willing to work with homeowners," said Brenda Fioretti, NABOR President and Managing Broker of Prudential Florida Realty.

According to Kathy Zorn, Broker/Owner of Florida Home Realty, "Traditional sales continue an upward trend in our market as they have increased 26 percent from September 2011 to September 2010."

The report also provides a comparison of results for September 2011 to the same month, 2010, including single-family home and condo sales (via the SunshineMLS), price ranges, geographic segmentation and includes an overall market summary. The statistics are presented in chart format, along with the following analysis:

¨ Overall home sales in the $300,000 to $500,000 price category increased 27 percent with 70 sales in September 2011 compared to 55 sales in September 2010.

¨ Single-family pending sales in the Naples Beach area increased 15 percent for the 12 months ending September 2011 with 714 contracts compared to 621 contracts for the 12 months ending September 2010.

¨ Condo sales saw a 6 percent increase for the 12 months ending September 2011 with 4,192 sales compared to 3,966 sales for the 12 months ending September 2010.

The Naples Area Board of REALTORS® (NABOR) is an established organization (Chartered 1949) whose members have a positive and progressive impact on the Naples community. NABOR is a local board of REALTORS® and real estate professionals with a legacy of nearly 60 years serving 4,000 plus member-customers. NABOR is a member of Florida REALTORS® and the National Association of REALTORS®, which is the largest trade association in the United States with more than 1.3 million members and over 1,400 local boards of REALTORS® nationwide. NABOR is structured to provide programs and services to its membership through various committees and the NABOR Board of Directors, all of whose members are non-paid volunteers

View the 3rd Quarter 2011 Market Statistics
View the September 2011 Market Statistics

ScottSorensonRealEstate.Com

Wednesday, October 5, 2011

Realtor confidence: Some hopeful signs?

WASHINGTON – Oct. 5, 2011 – According to the latest Realtors® Confidence Index survey, Realtors today are somewhat more confident about the existing home market than they were at this time last year. While there seems to be a general view that the market grew weaker recently, the current level of confidence is a bit better than it has been during much of the past three years.

The Realtors Confidence Index, based on a random survey of National Association of Realtors® (NAR) members, measures the strength of the current housing market and expectations about the future. Participants answer questions about the current and expected demand for homes, price trends and economic conditions.

Responses are assigned weights of 0, 50 or 100. A response of “strong” gets 100 points, while “moderate” is given 50 points, and “weak” is assigned 0 points. The questions capture Realtors’ feelings about the current real estate market and the effects of existing economic conditions and trends on the real estate business.

“Reports in the media about the state of the existing-home sales markets sometimes should carry scare-lines, rather than headlines … What they often miss, of course, is the story behind the numbers,” says Jed Smith, NAR managing director, quantitative research. “That story is that all real estate is local: some housing markets are actually performing well, some are performing poorly, and many are in-between. (However), median home prices have been moving up and down in a relatively narrow range in many markets; that shows a stabilization trend.”

The Realtors Confidence Index for single-family home sales reported in the August report decreased to 30.9 from July’s 31.3. The index was higher compared to last year’s conditions, however, when the index registered at 23.3. The townhouse index also dropped slightly to 17.0 in August from July’s 17.2. The condo index remained essentially the same at 14.1 from July’s 14.0. Both of townhouse index and condo indexes registered higher values than last year’s levels of 12.3 and 10.4, respectively.

Realtors say that the existing-home market continues to be challenging, and many respondents express some degree of frustration with previous and current levels of distressed properties, pricing and sales. There is a general level of agreement that the future outlook will strongly depend on continued economic recovery and job creation.

Saturday, October 1, 2011

Home listing prices rising in Florida

ORLANDO, Fla. – Sept. 26, 2011 – Prices are rising in Florida.

Florida cities have had the largest year-over-year increases in average list prices, according to the latest real estate data from Realtor.com. Based on August data of 2.2 million listings in 146 markets, Florida cities make up nine of the top 10 places for highest year-over-year list price spikes.

Nationwide, the average list price is $320,325, up 2.36 percent year-over-year.

Here are the top 15 cities boasting the highest percentage of year-over-year increases in average list prices.

1. Miami
Average list price: $640,332
Year-over-year increase: 27.4%

2. Fort Myers-Cape Coral, Fla.
Average list price: $443,570
Year-over-year increase: 26.27%

3. Central-Fla. rural service area
Average list price: $405,809
Year-over-year increase: 19.41%

4. Punta Gorda, Fla.
Average list price: $267,066
Year-over-year increase: 16.37%

5. Macon, Ga.
Average list price: $193,520
Year-over-year increase: 15.98%

6. Sarasota-Bradenton, Fla.
Average list price: $466,785
Year-over-year increase: 15.86%

7. Naples, Fla.
Average list price: $713,087
Year-over-year increase: 15.13%
www.ScottSorensonRealEstate.com

8. West Palm Beach-Boca Raton, Fla.
Average list price: $591,895
Year-over-year increase: 14.68%

9. Ocala, Fla.
Average list price: $193,360
Year-over-year increase: 12.07%

10. Lakeland-Winter Haven, Fla.
Average list price: $181,409
Year-over-year increase: 11.48%

11. Orlando, Fla.
Average list price: $319,419
Year-over-year increase: 10.56%

12. Portland-Vancouver, Ore.-Wash.
Average list price: $314,537
Year-over-year increase: 10.52%

13. Boise City, Idaho
Average list price: $212,588
Year-over-year increase: 10.43%

14. Springfield, Illinois
Average list price: $174,537
Year-over-year increase: 9.12%

15. Shreveport-Bossier City, La.
Average list price: $211,414
Year-over-year increase: 8.34%

Source: Melissa Dittmann Tracey, Realtor® Magazine Daily News