ScottSorensonRealEstate.Com
In real estate, a new report by Cary, N.C.-based research firm Local Market Monitor predicts double-digit growth in both home prices and rents for both Naples-Marco Island and Cape Coral-Fort Myers in 2014.
This partly will be due to inflation, which the firm’s president Ingo Winzer expects will rise from current levels to 3 or 4 percent “fairly soon.” “Inflation won’t be rampant, but you can’t keep printing money forever,” he said. But other market forces will also be at play, propelling Southwest Florida to faster home price appreciation and rent growth, the report said.
For Naples-Marco Island, the firm predicts home values will accelerate by 12 percent over the next 12 months, on par with expected statewide increases but a faster pace than the national pace of 8.1 percent. It’s also faster than the area’s average home price growth of 8 percent, to $268,525, over the last 12 months.
The report forecasts 10 percent price appreciation in both 2015 and 2016.
Though home prices in the metro area have been on the upswing for months, they’re still 19 percent undervalued due to the metro area’s high incomes, Winzer said.
A 1.5 percent increase in population has swelled demand, drawn partly by gains in jobs, particularly in tourism, health care and retail. Over the past 12 months, jobs have grown by 7.6 percent, compared to a national increase of 1.7 percent. Increase in demand also is expected to push up rents by 17 percent over the next three years, to an average of $1,273 a month.
“It’s booming for us,” said June Prophet, rental division regional manager for Berkshire Hathaway Home Services in Naples, adding demand is strong for both annual and seasonal rentals in Southwest Florida. In Cape Coral-Fort Myers, the report forecast home prices will rise by 12 percent over the next 12 months. Then price growth will moderate to 9 percent in 2015 and 8 percent in 2016.
Currently, average home prices are $176,560, up 12 percent from a year earlier. Yet demand remains weak, resulting in homes that are underpriced by 26 percent, the report said. Job growth in the area has lagged Naples-Marco Island at 2.6 percent, but still outpaces the national increase of 1.7 percent.
Population is growing, too, up 2.1 percent last year, though that is far below the peak level of 2005, when a flood of newcomers pushed it up 5 percent year over year.
The report also predicted Cape Coral-Fort Myers rents will rise 13 percent over the next three years, to an average of $1,148 a month.
Wednesday, December 11, 2013
Sunday, November 24, 2013
Fla.’s housing market continues on positive track in Oct
ScottSorensonRealEstate.Com
ORLANDO, Fla. – Nov. 20, 2013 – Florida’s housing market continued its upswing in October 2013, with more closed sales, higher median prices, more new listings and a stabilizing supply of homes for sale, according to the latest housing data released by Florida Realtors®.
“Florida’s economy continues to improve, and that’s good news for the housing market,” says 2013 Florida Realtors President Dean Asher, broker-owner with Don Asher & Associates Inc. in Orlando. “October marks 23 months in a row that statewide median sales prices rose year-over-year for both single-family homes and for townhouse-condo properties. Last month, the median days on market (the midpoint of the number of days it took for a property to sell) was 46 days for single-family homes and 48 days for townhouses and condos. That means 50 percent of homes on the market in Florida sell in less than two months.
“On average, sellers received about 94 percent of their asking price in October. Interested home sellers are paying attention to this positive trend and entering the market, which in turn is helping to stabilize inventory levels.”
Statewide closed sales of existing single-family homes totaled 18,728 in October, up 6.5 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.
Meanwhile, pending sales – contracts that are signed but not yet completed or closed – for existing single-family homes last month rose 3.4 percent over the previous October, and new listings increased 16.4 percent. The statewide median sales price for single-family existing homes last month was $169,000, up 16.6 percent from the previous year. The median is the midpoint; half the homes sold for more, half for less.
According to the National Association of Realtors (NAR), the national median sales price for existing single-family homes in September 2013 was $199,300, up 11.4 percent from the previous year. In California, the statewide median sales price for single-family existing homes in September was $428,810; in Massachusetts, it was $325,000; in Maryland, it was $256,672; and in New York, it was $230,000.
Looking at Florida’s year-to-year comparison for sales of townhouse-condos, a total of 8,598 units sold statewide last month, up 3.1 percent from October 2012. Meanwhile, pending sales for townhouse-condos last month eased slightly, down 3.6 percent compared to the year-ago figure, but new listings rose 9.8 percent. The statewide median price for townhouse-condo properties in October was $130,000, up 22.1 percent over the previous year. NAR reported that the national median existing condo price in September 2013 was $198,600.
Inventory was at a 5.5-months’ supply in October for single-family homes and at a 5.6-months’ supply for townhouse-condo properties, according to Florida Realtors.
“The housing numbers continue to hold up, bolstered by strong employment growth and population in-migration,” says Florida Realtors Chief Economist Dr. John Tuccillo. “We are, however, noticing that there has been a steady decline in the share of cash sales in the market, suggesting that investment activity in Florida real estate may be waning. This takes an important element of demand out of the equation.
“Equally important is the slight rise in inventories we have seen in the past few months. Both factors are linked, but both are happening gradually and the market should be able to adjust to the changes.”
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.19 percent in October 2013, up from the 3.38 percent average recorded during the same month a year earlier.
To see the full statewide housing activity reports, visit the research page on Florida Realtors’ website.
ORLANDO, Fla. – Nov. 20, 2013 – Florida’s housing market continued its upswing in October 2013, with more closed sales, higher median prices, more new listings and a stabilizing supply of homes for sale, according to the latest housing data released by Florida Realtors®.
“Florida’s economy continues to improve, and that’s good news for the housing market,” says 2013 Florida Realtors President Dean Asher, broker-owner with Don Asher & Associates Inc. in Orlando. “October marks 23 months in a row that statewide median sales prices rose year-over-year for both single-family homes and for townhouse-condo properties. Last month, the median days on market (the midpoint of the number of days it took for a property to sell) was 46 days for single-family homes and 48 days for townhouses and condos. That means 50 percent of homes on the market in Florida sell in less than two months.
“On average, sellers received about 94 percent of their asking price in October. Interested home sellers are paying attention to this positive trend and entering the market, which in turn is helping to stabilize inventory levels.”
Statewide closed sales of existing single-family homes totaled 18,728 in October, up 6.5 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.
Meanwhile, pending sales – contracts that are signed but not yet completed or closed – for existing single-family homes last month rose 3.4 percent over the previous October, and new listings increased 16.4 percent. The statewide median sales price for single-family existing homes last month was $169,000, up 16.6 percent from the previous year. The median is the midpoint; half the homes sold for more, half for less.
According to the National Association of Realtors (NAR), the national median sales price for existing single-family homes in September 2013 was $199,300, up 11.4 percent from the previous year. In California, the statewide median sales price for single-family existing homes in September was $428,810; in Massachusetts, it was $325,000; in Maryland, it was $256,672; and in New York, it was $230,000.
Looking at Florida’s year-to-year comparison for sales of townhouse-condos, a total of 8,598 units sold statewide last month, up 3.1 percent from October 2012. Meanwhile, pending sales for townhouse-condos last month eased slightly, down 3.6 percent compared to the year-ago figure, but new listings rose 9.8 percent. The statewide median price for townhouse-condo properties in October was $130,000, up 22.1 percent over the previous year. NAR reported that the national median existing condo price in September 2013 was $198,600.
Inventory was at a 5.5-months’ supply in October for single-family homes and at a 5.6-months’ supply for townhouse-condo properties, according to Florida Realtors.
“The housing numbers continue to hold up, bolstered by strong employment growth and population in-migration,” says Florida Realtors Chief Economist Dr. John Tuccillo. “We are, however, noticing that there has been a steady decline in the share of cash sales in the market, suggesting that investment activity in Florida real estate may be waning. This takes an important element of demand out of the equation.
“Equally important is the slight rise in inventories we have seen in the past few months. Both factors are linked, but both are happening gradually and the market should be able to adjust to the changes.”
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.19 percent in October 2013, up from the 3.38 percent average recorded during the same month a year earlier.
To see the full statewide housing activity reports, visit the research page on Florida Realtors’ website.
Friday, November 15, 2013
Overall Days on Market Decrease 37 Percent in October
ScottSorensonRealEstate.com
View October 2013 Market Statistics
NAPLES, FL (November
15, 2013) - Overall closed sales for homes over $300,000 continued to climb
with double digit activity in October, while overall days on the market
decreased 37 percent, 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). The Naples area housing market's October
2013 Southwest Florida MLS statistics also show an 18 percent decrease in
inventory overall, with a 25% decrease in inventory in the $300,000 and below
price category.
"The overall median closed
price has neutralized in the $300,000 and above price category, which
demonstrates stability in the middle of the market," said John Steinwand,
Broker and Principal at Naples Realty Services, Inc. "For instance, in the
$300,000 - $500,000 category, the overall median closed price has increased
only one percent from $375,000 for the 12-months ending October 2012 to
$377,000 for the 12-months ending 2013. In addition, the overall median closed
price has seen no change in the $500,000 - $1million price category which is
holding at $655,000 for the period of 12-months ending 2013 and statistics
indicate only a slight two percent increase in the $1-$2 million price category
from $1,350,000 to $1,375,000 in the 12-months ending from October 2012 to
2013."
The only segment of the market
that has seen a marked increase in its overall median closed price is the
$300,000 and below price segment, which increased 14 percent from $140,000 for
the 12-months ending October 2012 to $160,000 for the 12-months ending 2013.
Median closed prices in both the single family and condo market in the $300,000
and below price category have contributed equally to this dramatic increase in
overall median closed price. The median closed price for single family homes
under $300,000 increased 18 percent from $147,000 for the 12-months ending
October 2012 to $173,000 for the 12-months ending October 2013. The median
closed price for condominiums in this price category increased 13 percent from
$135,000 for the 12-months ending October 2012 to $152,000 for the 12-months
ending October 2013.
"The ingredients are in
place to drive prices up this season," said Mike Hughes, Vice President
and General Manager of Downing-Frye Realty. "Whether that happens, remains
to be seen. But savvy sellers are in a good position to benefit from the
reduced inventory and increased demand. For the last four years, I've noticed
the inventory goes up a little between September and October and this year is
no different. I think sellers are preparing for a good season. And according to
what the statistics show, they have every right to be."
The NABOR® 2013 October Report
provides comparisons of single-family home and condominium sales (via the
Southwest Florida MLS), price ranges, and geographic segmentation and includes
an overall market summary. The NABOR® October 2013 sales statistics are
presented in chart format, including these overall (single-family and
condominium) findings:
- The overall
average Days on the Market (DOM) decreased 37 percent from 172 days in
October 2012 to 109 days in October 2013.
- Overall closed
sales in the $2 million and above segment increased 46 percent from 213 in
the 12-months ending October 2012 to 311 in the 12-months ending October
2013.
- Condominium
closed sales increased 14 percent from 4,489 closed sales in the 12-months
ending October 2012 to 5,129 closed sales in the 12-months ending October
2013.
- The North Naples
(34109, 34110, 34119) area's overall pending sales increased 7 percent
reflecting 2,954 pending sales in the 12-months ending October 2013
compared to 2,768 pending sales in the 12-months ending October 2012.
- Overall
inventory decreased by 18 percent from 6,409 properties in October 2012 to
5,256 properties in October 2013. Pending sales with contingent contracts
are included in the overall inventory number.
Only single family homes in the
$300,000 and below price segment experienced a decrease (15 percent) in pending
sales from 3,356 pending sales in the 12-months ending October 2012 to 2,869
pending sales in the 12-months ending October 2013. According to Brett Brown,
Director of Sales and Managing Broker for Fiddler's Creek Realty,
Inc., the decrease in pending sales in the $300,000 and below price
category can be attributed to the fact that there's been a significant decrease
in the number of distressed properties on the market in 2013.
Added Hughes, "I've noticed
that the second half of the year has been filled with a multiple offer environment
as both inventory and days on market continue to decrease. My advice to buyers
is to move quickly if you find something you like or you may lose it. And to
potential sellers, if you've been sitting on the fence waiting to list your
home, demand is only going to increase this season, so you'd be well served to
put your home on the market to take advantage of the strong demand from a large
pool of motivated buyers."
View October 2013 Market Statistics
Friday, October 18, 2013
Closed Home Sales Up 22 Percent in Third Quarter 2013
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Tuesday, September 24, 2013
Home prices rise 12.4% in July – highest in 7½ years
ScottSorensonRealEstate.Com
WASHINGTON (AP) – Sept. 24, 2013 – U.S. home prices rose 12.4 percent in July compared with a year ago, the most since February 2006. An increase in sales on a limited supply of available homes drove the gains.
The Standard & Poor’s/Case-Shiller 20-city home price index reported Tuesday improved from June, when it rose 12.1 percent from a year ago. And all 20 cities posted gains in July from the previous month and compared with a year ago.
Still, the month-over-month price gains shrank in 15 cities in July compared with the previous month, indicating prices may be peaking.
Stan Humphries, chief economist for real estate data provider Zillow, said home prices should continue to rise but at a slower pace. Mortgage rates have increased more than a full percentage point since May. And more homes are being built. That should ease supply constraints that have inflated prices in some markets.
“This ongoing moderation is good for the market overall,” Humphries said.
Home prices soared 27.5 percent in Las Vegas from a year earlier, the largest gain. San Francisco’s 24.8 percent jump was the second largest and the biggest yearly return for that city since March 2001.
The index covers roughly half of U.S. homes. It measures prices, compares them with those in January 2000 and creates a three-month moving average. The July figures are the latest available. They are not adjusted for seasonal variations, so the monthly gains reflect more buying activity over the summer.
Since bottoming out in March 2012, home prices have rebounded about 21 percent. They remain about 22 percent below the peak reached in July 2006.
The housing market has been recovering over the past year, helped by steady job growth, low mortgage rates and relatively low prices.
Sales of previously occupied homes rose in August to a seasonally adjusted 5.5 million annual pace, according to the National Association of Realtors. That’s a healthy level and the highest in more than six years.
But the Realtors’ group cautioned that the August pace could represent a temporary peak. The gain reflected closings and largely occurred because many buyers rushed to lock in mortgage rates in June and July before they increased further. The Realtors said buyer traffic dropped off noticeably in August, likely reflecting the higher rates.
The average rate on a 30-year fixed mortgage was 4.5 percent last week. That’s near a two-year high. It’s still low by historical standards.
Rates rose in May after Chairman Ben Bernanke suggested the Federal Reserve could slow its bond purchase program before the end of the year.
But the Fed surprised markets last week by deciding against reducing the $85-billion-a-month in bond buys, which have kept longer-term interest rates low. The Fed said a key reason for its decision was the sharp increase in mortgage rates and other interest rates.
The Fed’s decision could ease rates temporarily, although many economists expect the Fed will ultimately slow the purchases, perhaps as early as December. Rates would likely rise after that.
WASHINGTON (AP) – Sept. 24, 2013 – U.S. home prices rose 12.4 percent in July compared with a year ago, the most since February 2006. An increase in sales on a limited supply of available homes drove the gains.
The Standard & Poor’s/Case-Shiller 20-city home price index reported Tuesday improved from June, when it rose 12.1 percent from a year ago. And all 20 cities posted gains in July from the previous month and compared with a year ago.
Still, the month-over-month price gains shrank in 15 cities in July compared with the previous month, indicating prices may be peaking.
Stan Humphries, chief economist for real estate data provider Zillow, said home prices should continue to rise but at a slower pace. Mortgage rates have increased more than a full percentage point since May. And more homes are being built. That should ease supply constraints that have inflated prices in some markets.
“This ongoing moderation is good for the market overall,” Humphries said.
Home prices soared 27.5 percent in Las Vegas from a year earlier, the largest gain. San Francisco’s 24.8 percent jump was the second largest and the biggest yearly return for that city since March 2001.
The index covers roughly half of U.S. homes. It measures prices, compares them with those in January 2000 and creates a three-month moving average. The July figures are the latest available. They are not adjusted for seasonal variations, so the monthly gains reflect more buying activity over the summer.
Since bottoming out in March 2012, home prices have rebounded about 21 percent. They remain about 22 percent below the peak reached in July 2006.
The housing market has been recovering over the past year, helped by steady job growth, low mortgage rates and relatively low prices.
Sales of previously occupied homes rose in August to a seasonally adjusted 5.5 million annual pace, according to the National Association of Realtors. That’s a healthy level and the highest in more than six years.
But the Realtors’ group cautioned that the August pace could represent a temporary peak. The gain reflected closings and largely occurred because many buyers rushed to lock in mortgage rates in June and July before they increased further. The Realtors said buyer traffic dropped off noticeably in August, likely reflecting the higher rates.
The average rate on a 30-year fixed mortgage was 4.5 percent last week. That’s near a two-year high. It’s still low by historical standards.
Rates rose in May after Chairman Ben Bernanke suggested the Federal Reserve could slow its bond purchase program before the end of the year.
But the Fed surprised markets last week by deciding against reducing the $85-billion-a-month in bond buys, which have kept longer-term interest rates low. The Fed said a key reason for its decision was the sharp increase in mortgage rates and other interest rates.
The Fed’s decision could ease rates temporarily, although many economists expect the Fed will ultimately slow the purchases, perhaps as early as December. Rates would likely rise after that.
Friday, September 20, 2013
OVERALL MEDIAN HOME PRICE RISES FOR 14th CONSECUTIVE MONTH
Naples, Fla. (September
20, 2013) - The Naples area real estate market continues to see its median home
price shift upward for the 14th consecutive month 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). The median
home price has been on a steady incline from $175,000 in December 2011 to
$229,000 in August 2013.
The Median Home Price is a
mathematical result of home sale prices wherein one half of the group is higher
and one half lower than the indicated median home price. (See August 2013
Market Statistics, Median Home Price chart, page 2, link below).
John Steinwand, Broker and
Principal at Naples Realty Services, Inc., stated, "Home sales, particularly
condo sales in the $1-$2 million price category, have been quite impressive.
Statistics show a 53 percent increase, from 173 units to 264 units sold in that
market for the 12 month period ending August 2013."
NABOR® officials point to three
market indicators that are contributing to steady sales:
- Rising median home prices,
- New construction, and
- National chain interest in the Naples area.
"Our commercial market is
showing improvement, particularly those properties that were once empty
shopping centers. National chains are signing leases in our area," said
Wes Kunkle, NABOR® President and Commercial Broker at Kunkle Realty, LLC.
"Burlington Coat Factory and Hobby Lobby have signed leases to join Chuck
E. Cheese at Granada Shoppes, and Culvers has chosen Naples as its first
Florida franchise location. We consider a surge in large retailer interest
in Naples a clear indication that these corporations are confident the Naples
area is ripe for residential growth."
"Our office is seeing an
increase in requests for proposed residential new construction
appraisals," says Cindy Carroll, SRA, with the real estate appraisal and
consultancy firm Carroll & Carroll. "Alternately, the report
shows a low inventory of 3,225 homes priced under
$500,000 in August 2013 which is 29 percent lower than the inventory of
4,151 in August 2012 in that price category."
And according to Kathy Zorn,
Broker, Florida Home Realty, "The median home price increase has risen
consistently though gradually alongside August sales, demonstrating a
continually improving market."
The NABOR® August 2013 report
provides annual comparisons of single-family home and condominium sales (via
the new Southwest Florida MLS), price ranges, and geographic segmentation and
includes an Overall Market summary. The NABOR® August sales statistics are
presented in chart format, with these overall (single-family and condominium
units) specifics:
- The overall median closed price increased 19 percent from $192,000 to $229,000 for the 12-month period ending August 2013.
- Overall pending sales increased 8 percent from 10,315 units to 11,178 units for the 12-month period ending August 2013. Overall pending sales increased 32 percent in the $300,000-$500,000 category, from 1,462 units to 1,933 units, and increased 30 percent in the $2 million and above category, from 273 units to 354 units, for the 12-month period ending August 2013.
- The overall average Days on Market (DOM) is just over five months, reflecting a 12 percent decrease from 177 days on the market in August 2012 to 155 days in August 2013.
- Overall inventory decreased by 19 percent, from 6,043 listed properties in August 2012 to 4,913 in August 2013. Pending sales with contingent contracts are included in the overall inventory number.
- Overall pending sales in the Naples coastal area increased 15 percent from 1,950 units to 2,233 units, and closed sales also increased 15 percent, from 1,750 units to 2,019 units, for the 12-month period ending August 2013.
- Condominium pending sales increased
54 percent in the $2 million and above category from 74 units in August
2012 to 114 units in August 2013.
"This has been a better
summer for home sales across the board than we have seen in years," said
Mike Hughes, Vice President and General Manager of Downing-Frye Realty, who
added that many of the local real estate brokerages have seen steady sales
throughout 2013. "This is a little unusual as there has not really been a
so called 'off season' so far. Buyers don't want to miss opportunities because
of the low inventory so they are making purchasing decisions throughout the
summer season, which is traditionally slower."
The Naples Area Board of
REALTORS® (NABOR®) is an established organization (Chartered in 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 members. NABOR® is a member of the Florida
Realtors and the National Association of REALTORS®, which is the largest
association in the United States with more than 1.3 million members and over
1,400 local board 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.
The term REALTOR® is a registered
collective membership mark which identifies a real estate professional who is a
member of the National Association of REALTORS® and who subscribe to its strict
Code of Ethics.
Thursday, September 19, 2013
Fla.’s housing market continued upswing in Aug. 2013
ScottSorensonRealEstate.Com
ORLANDO, Fla., Sept. 19, 2013 – Florida’s housing market continued its positive trend in August with increased closed sales, higher median prices, more pending sales and a stable supply of homes for sale, according to the latest housing data released by Florida Realtors®.
“Both sales and prices demonstrate that Florida’s housing market is growing and continuing to gain strength,” says 2013 Florida Realtors President Dean Asher, broker-owner with Don Asher & Associates Inc. in Orlando. “The growth in jobs and other positive signs are putting buyers at ease with how the economy is progressing. At the same time, prices are encouraging sellers to get off the fence and helping to ease inventory pressures.
“August is the 20th month in a row that we’ve seen the statewide single-family home median sales price increase year-over-year.”
Statewide closed sales of existing single-family homes totaled 20,933 in August, up 12.5 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.
Meanwhile, pending sales – contracts signed but not yet completed or closed – for existing single-family homes rose 17.2 percent over the previous August. The statewide median sales price for single-family existing homes last month was $175,000, up 18.6 percent from the previous year.
According to the National Association of Realtors (NAR), the national median sales price for existing single-family homes in July 2013 was $214,000, up 13.5 percent from the previous year. In California, the statewide median sales price for single-family existing homes in July was $433,760; in Massachusetts, it was $350,000; in Maryland, it was $286,758; and in New York, it was $241,947.
The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties downwardly distort the median price because they generally sell at a discount relative to traditional homes.
Looking at townhouse-condos, a total of 9,491 units sold statewide last month, up 6.3 percent from August 2012. Meanwhile, pending sales for townhouse-condos last month increased 11.6 percent year-to-year. The statewide median price for townhouse-condo properties was $130,000, up 25.2 percent over the previous year. NAR reported that the national median existing condo price in July 2013 was $209,600.
The inventory for single-family homes stood at a 5.1-months’ supply in August; inventory for townhouse-condos was at a 5.2-months’ supply, according to Florida Realtors.
“The most striking feature of this month’s data relates to new listings and inventory,” says Florida Realtors Chief Economist Dr. John Tuccillo. “Each month in 2013 has seen a rise year-over-year in new listings for both single family homes and townhouses and condos, with the exception of March for condo/townhomes. Balancing out the growth in closed sales, the increase in new listings has contributed to steady inventory. Single-family-home inventory is now at 5.1 months for August 2013, after holding steady at a 5-months supply in May through July. Condo/townhome inventory remains at a 5.2 months supply for the third month in a row.
“Combined with a relative decline in cash sales, this suggests that the pressure on inventories that has plagued the Florida market may be easing.”
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.46 percent in August 2013, up from the 3.60 percent average recorded during the same month a year earlier.
To see the full statewide housing activity reports, go to Florida Realtors Media Center under Latest Releases, or download the August 2013 data report PDFs under Market Data on Florida Realtors’ website
ORLANDO, Fla., Sept. 19, 2013 – Florida’s housing market continued its positive trend in August with increased closed sales, higher median prices, more pending sales and a stable supply of homes for sale, according to the latest housing data released by Florida Realtors®.
“Both sales and prices demonstrate that Florida’s housing market is growing and continuing to gain strength,” says 2013 Florida Realtors President Dean Asher, broker-owner with Don Asher & Associates Inc. in Orlando. “The growth in jobs and other positive signs are putting buyers at ease with how the economy is progressing. At the same time, prices are encouraging sellers to get off the fence and helping to ease inventory pressures.
“August is the 20th month in a row that we’ve seen the statewide single-family home median sales price increase year-over-year.”
Statewide closed sales of existing single-family homes totaled 20,933 in August, up 12.5 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.
Meanwhile, pending sales – contracts signed but not yet completed or closed – for existing single-family homes rose 17.2 percent over the previous August. The statewide median sales price for single-family existing homes last month was $175,000, up 18.6 percent from the previous year.
According to the National Association of Realtors (NAR), the national median sales price for existing single-family homes in July 2013 was $214,000, up 13.5 percent from the previous year. In California, the statewide median sales price for single-family existing homes in July was $433,760; in Massachusetts, it was $350,000; in Maryland, it was $286,758; and in New York, it was $241,947.
The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties downwardly distort the median price because they generally sell at a discount relative to traditional homes.
Looking at townhouse-condos, a total of 9,491 units sold statewide last month, up 6.3 percent from August 2012. Meanwhile, pending sales for townhouse-condos last month increased 11.6 percent year-to-year. The statewide median price for townhouse-condo properties was $130,000, up 25.2 percent over the previous year. NAR reported that the national median existing condo price in July 2013 was $209,600.
The inventory for single-family homes stood at a 5.1-months’ supply in August; inventory for townhouse-condos was at a 5.2-months’ supply, according to Florida Realtors.
“The most striking feature of this month’s data relates to new listings and inventory,” says Florida Realtors Chief Economist Dr. John Tuccillo. “Each month in 2013 has seen a rise year-over-year in new listings for both single family homes and townhouses and condos, with the exception of March for condo/townhomes. Balancing out the growth in closed sales, the increase in new listings has contributed to steady inventory. Single-family-home inventory is now at 5.1 months for August 2013, after holding steady at a 5-months supply in May through July. Condo/townhome inventory remains at a 5.2 months supply for the third month in a row.
“Combined with a relative decline in cash sales, this suggests that the pressure on inventories that has plagued the Florida market may be easing.”
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.46 percent in August 2013, up from the 3.60 percent average recorded during the same month a year earlier.
To see the full statewide housing activity reports, go to Florida Realtors Media Center under Latest Releases, or download the August 2013 data report PDFs under Market Data on Florida Realtors’ website
Wednesday, September 18, 2013
S. Fla. growing at 3.5% thanks to real estate surge
ScottSorensonRealEstate.Com
MIAMI – Sept. 18, 2013 – Real estate, once again, can be found at the head of South Florida’s economic pack.
New output numbers released Tuesday show real estate as the No. 1 contributor to economic growth last year, accounting for 31 cents of every new dollar added to the tri-county area’s $274 billion economy. Overall, the economy grew by 3.5 percent, the sharpest increase since 2006 and well ahead of the national metropolitan average of 2.5 percent.
“Overall, I think it’s a pretty good number,” said Robert Cruz, official economist for Miami-Dade County. He noted that of Florida’s largest economies, South Florida had the sharpest growth in 2012.
Real estate’s return as a major economic engine comes amid rising property values and a return of cranes in downtown Miami as developers again see profits in one of the most ravaged housing markets in the country.
“Real estate is really the foundation for this area. It’s crucial for the recovery,” said Tony Villamil, a private economist and dean of the business school at St. Thomas University.
In 2012, the real estate sector – which is driven by rents, property values and commercial transactions – contributed about $52 billion to the combined economies of Broward, Miami-Dade and Palm Beach. That was 8.4 percent better than in 2011, and the best showing since 2006.
The real estate numbers were one data point in the annual metropolitan report card issued by the federal Bureau of Economic Analysis. The annual numbers mirror the quarterly Gross Domestic Product reports that track the health of the national economy.
In general, the report showed metropolitan areas faring well in 2012, with most sectors gaining. Financial services, a category that includes real estate, helped drive growth across the country, as did manufacturing and the category that includes retail.
Government dollars were basically flat in 2012. Though down by $19 million, that still represented less than a 1 percent decline. The data does not cover the start of the automatic federal spending cuts called “the sequester,” which began in March. But the numbers do reflect cutbacks in spending at the end of Washington’s $800 billion stimulus program and as Miami-Dade governments grapple with ongoing budget squeezes. The decline shows a bottoming out of spending cuts, with 2010 and 2011 seeing government output down by between $100 million and $200 million.
In South Florida, the education sector was the No. 1 drag on output, with a 7 percent decline. The figures are preliminary, so the sharp decline may moderate as BEA revises its numbers.
Copyright © 2013 The Miami Herald. Distributed by MCT Information Services.
MIAMI – Sept. 18, 2013 – Real estate, once again, can be found at the head of South Florida’s economic pack.
New output numbers released Tuesday show real estate as the No. 1 contributor to economic growth last year, accounting for 31 cents of every new dollar added to the tri-county area’s $274 billion economy. Overall, the economy grew by 3.5 percent, the sharpest increase since 2006 and well ahead of the national metropolitan average of 2.5 percent.
“Overall, I think it’s a pretty good number,” said Robert Cruz, official economist for Miami-Dade County. He noted that of Florida’s largest economies, South Florida had the sharpest growth in 2012.
Real estate’s return as a major economic engine comes amid rising property values and a return of cranes in downtown Miami as developers again see profits in one of the most ravaged housing markets in the country.
“Real estate is really the foundation for this area. It’s crucial for the recovery,” said Tony Villamil, a private economist and dean of the business school at St. Thomas University.
In 2012, the real estate sector – which is driven by rents, property values and commercial transactions – contributed about $52 billion to the combined economies of Broward, Miami-Dade and Palm Beach. That was 8.4 percent better than in 2011, and the best showing since 2006.
The real estate numbers were one data point in the annual metropolitan report card issued by the federal Bureau of Economic Analysis. The annual numbers mirror the quarterly Gross Domestic Product reports that track the health of the national economy.
In general, the report showed metropolitan areas faring well in 2012, with most sectors gaining. Financial services, a category that includes real estate, helped drive growth across the country, as did manufacturing and the category that includes retail.
Government dollars were basically flat in 2012. Though down by $19 million, that still represented less than a 1 percent decline. The data does not cover the start of the automatic federal spending cuts called “the sequester,” which began in March. But the numbers do reflect cutbacks in spending at the end of Washington’s $800 billion stimulus program and as Miami-Dade governments grapple with ongoing budget squeezes. The decline shows a bottoming out of spending cuts, with 2010 and 2011 seeing government output down by between $100 million and $200 million.
In South Florida, the education sector was the No. 1 drag on output, with a 7 percent decline. The figures are preliminary, so the sharp decline may moderate as BEA revises its numbers.
Copyright © 2013 The Miami Herald. Distributed by MCT Information Services.
Friday, August 16, 2013
NAPLES AREA CONDO SALES SURGE IN JULY
ScottSorensonRealEstate.Com
NAPLES, FL (August 16, 2013) -
The Naples area condominium market has rebounded with full force as evidenced
in a July 2013 report released by the Naples Area Board of REALTORS® (NABOR®),
which showed a 143 percent increase in condominium closed sales in the
$300K-$500K price category and a whopping 1200 percent increase in the $2M+
price category from July 2012 compared to July 2013.
"The condominium market is
hot," according to Mike Hughes, Vice President and General Manager of
Downing-Frye Realty. "The July SunshineMLS statistics show us that
high-end buyers were out condo shopping as demonstrated by an increase in
condominium pending sales of 167 percent in the 2M+ price categoryfrom July
2012 to July 2013. Overall, if you subtract the 'bubble years' of 2004 and
2005, 2013 is looking to be one of the best years on record for home
sales."
NABOR® officials point to a
prediction made by Dr. Lawrence Yun, Chief Economist at the National
Association of REALTORS®, who stated at the 2011 NABOR® Economic Summit that a
sense of urgency would drive the market in 2013.
"His prediction has become
reality," said Steve Barker, Advising Broker for Equity Realty, who
explains, "The SunshineMLS statistics show that the inventory is
decreasing and the median home price is increasing. This creates a market where
buyers are afraid there won't be anything left in their price range if they do
not buy now. They are looking for homes in a limited inventory and prices are
on the rise."
NABOR®, which tracks home
listings and sales within Collier County (excluding Marco Island), released its
July monthly report which provides annual comparisons of single-family home and
condominium sales (via the SunshineMLS), price ranges, and geographic
segmentation. It also includes an overall market summary. Statistics worthy of
attention in this report include:
- Overall closed sales increased by double digits in all but the $0-$300K category in the 12-months ending July 2013. Closed sales in the $300K-$500K market increased 24 percent from 1,196 in the 12-months ending July 2012 to 1,608 in the 12-months ending July 2013. Closed sales in the $500K-$1M market increased by 26 percent from 906 in the 12-months ending July 2012 to 1,141 in the 12-months ending July 2013. Closed sales in the $1M-$2M market increased by 19 percent from 412 in the 12-months ending July 2012 to 492 in the 12-months ending July 2013. And closed sales in the $2M and above market increased by 33 percent from July 2012 in the 12-months ending July 2012 to 281 in the 12-months ending July 2013.
- Pending sales increased by double digits in all but the $0-$300K category in the 12-months ending July 2013. Pending sales in the $300K-$500K market increased 33 percent from 1431 in the 12-months ending July 2012 to 1907 in the 12-months ending July 2013. Pending sales in the $500K-$1M market increased by 19 percent from 1078 in the 12-months ending July 2012 to 1287 in the 12-months ending July 2013. Pending sales in the $1M-$2M market increased by 25 percent from 462 in the 12-months ending July 2012 to 576 in the 12-months ending July 2013. And pending sales in the $2M and above market increased by 22 percent from 276 in the 12-months ending July 2012 to 337 in the 12-months ending July 2013.
- The overall market median closed price increased 19% percent from $190,000 to $226,000, 12-month ending July 2013.
- The overall average days on market decreased 41 percent in the $2M and above category from 403 days to 238 days, July 2012 compared to July 2013 and 31 percent in the $1M-$2M category from 271 days to 186 days, July 2012 compared to July 2013.
- The median closed price for condominiums in the $2M and above category increased 36 percent from $2,650,000 in July 2012 to $3,600,000 in July 2013.
- Condominium inventory decreased
by 23 percent from 3,299 available units in July 2012 to 2,534 units in
July 2013.
John Steinwand, President of
Naples Realty Services, suggested two possible contributing factors for the
increase in condo demand:
- The stock market's performance
has helped Baby Boomers recover investment losses and, in turn, this is
helping them make the decision to sell their homes up north and purchase
property in Florida,
- Homeowners who lost their homes
in the recession and became local renters are now qualifying for new home
loans.
Tuesday, August 6, 2013
CoreLogic: June home prices up 11.9% year over year
ScottSorensonRealEstate.Com
IRVINE, Calif. – Aug. 6, 2013 – Home prices nationwide, including distressed sales, increased 11.9 percent in June on a year-over-year basis, according to CoreLogic’s June Home Price Index (HPI) report released today. It’s the sixteenth consecutive monthly increase in home prices nationally.
On a month-over-month basis, including distressed sales, home prices rose 1.9 percent compared to May 2013.
According to CoreLogic, Florida numbers fall close to the national average. Including distressed sales, prices rose in June 11 percent year-to-year and 1.8 percent month-to-month.
If Florida’s distressed sales – short sales and real estate owned (REO) transactions – are backed out of the equation, the state’s home prices rose 12.7 percent year-to-year and 2.1 percent month-to-month.
The CoreLogic Pending HPI analyzes home price changes for the most recent month. According to that analysis, July 2013 home prices, including distressed sales, are expected to rise by 12.5 percent on a year-over-year basis from July 2012 and by 1.8 percent on a month-over-month basis from June 2013. The CoreLogic Pending HPI is based on Multiple Listing Service (MLS) data that measure price changes for the most recent month.
“In the first six months of 2013, the U.S. housing market appreciated a remarkable 10 percent,” says Dr. Mark Fleming, chief economist for CoreLogic. “This trend in home price gains is moving at the fastest pace since 1977.”
“The U.S. housing market experienced robust price appreciation during the first half of 2013 and our forecast calls for double-digit growth through July,” adds Anand Nallathambi, president and CEO of CoreLogic. “Despite their rebound of late, home prices remain reasonable in a historical context, with most states near peak affordability levels.”
Highlights of June 2013
• Including distressed sales, the five states with the highest home price appreciation were: Nevada (+26.5 percent), California (+21.4 percent), Wyoming (+16.7 percent), Arizona (+16.2 percent) and Georgia (+14.3 percent).
• Including distressed sales, only two states posted home price depreciation: Mississippi (-2.1 percent) and Delaware (-1.1 percent).
• Excluding distressed sales, the five states with the highest home price appreciation were: Nevada (+23.6 percent), California (+18.7 percent), Arizona (+14.1 percent), Utah (+13.8 percent) and Florida (+12.7 percent).
• Excluding distressed sales, no states posted home price depreciation in June.
• The five states with the largest peak-to-current declines, including distressed transactions, were Nevada (-44.3 percent), Florida (-38.6 percent), Arizona (-33.9 percent), Rhode Island (-31.7 percent), and Michigan (-31.1 percent).
IRVINE, Calif. – Aug. 6, 2013 – Home prices nationwide, including distressed sales, increased 11.9 percent in June on a year-over-year basis, according to CoreLogic’s June Home Price Index (HPI) report released today. It’s the sixteenth consecutive monthly increase in home prices nationally.
On a month-over-month basis, including distressed sales, home prices rose 1.9 percent compared to May 2013.
According to CoreLogic, Florida numbers fall close to the national average. Including distressed sales, prices rose in June 11 percent year-to-year and 1.8 percent month-to-month.
If Florida’s distressed sales – short sales and real estate owned (REO) transactions – are backed out of the equation, the state’s home prices rose 12.7 percent year-to-year and 2.1 percent month-to-month.
The CoreLogic Pending HPI analyzes home price changes for the most recent month. According to that analysis, July 2013 home prices, including distressed sales, are expected to rise by 12.5 percent on a year-over-year basis from July 2012 and by 1.8 percent on a month-over-month basis from June 2013. The CoreLogic Pending HPI is based on Multiple Listing Service (MLS) data that measure price changes for the most recent month.
“In the first six months of 2013, the U.S. housing market appreciated a remarkable 10 percent,” says Dr. Mark Fleming, chief economist for CoreLogic. “This trend in home price gains is moving at the fastest pace since 1977.”
“The U.S. housing market experienced robust price appreciation during the first half of 2013 and our forecast calls for double-digit growth through July,” adds Anand Nallathambi, president and CEO of CoreLogic. “Despite their rebound of late, home prices remain reasonable in a historical context, with most states near peak affordability levels.”
Highlights of June 2013
• Including distressed sales, the five states with the highest home price appreciation were: Nevada (+26.5 percent), California (+21.4 percent), Wyoming (+16.7 percent), Arizona (+16.2 percent) and Georgia (+14.3 percent).
• Including distressed sales, only two states posted home price depreciation: Mississippi (-2.1 percent) and Delaware (-1.1 percent).
• Excluding distressed sales, the five states with the highest home price appreciation were: Nevada (+23.6 percent), California (+18.7 percent), Arizona (+14.1 percent), Utah (+13.8 percent) and Florida (+12.7 percent).
• Excluding distressed sales, no states posted home price depreciation in June.
• The five states with the largest peak-to-current declines, including distressed transactions, were Nevada (-44.3 percent), Florida (-38.6 percent), Arizona (-33.9 percent), Rhode Island (-31.7 percent), and Michigan (-31.1 percent).
Monday, August 5, 2013
Multiple offers put S. Fla. home sellers in control
ScottSorensonRealEstate.Com
MIRAMAR, Fla. – Aug. 5, 2013 – The spiffy five-bedroom house on a quiet cul-de-sac in Miramar hit the market for $379,900 on a Monday. By the close of business, there were two offers, but listing agent Carlos Martin was preaching patience.
Tempting as it may have been to pick one right then, seller Robert Kull waited a week for more offers to materialize.
It was a wise choice. The home ultimately drew five bids. Kull rejected two cash deals in favor of a full-price offer from a buyer willing to pay above appraised value.
“We knew it was a real strong market,” Kull said. “Carlos said if we just hold out, we’ll get a full-price offer, and sure enough we did.”
Multiple offers are the Holy Grail of the housing recovery, but it takes skill and a dash of diplomacy to sort through all the possibilities.
Homes in good condition and priced fairly almost certainly will attract more than one offer, real estate agents say. Demand far exceeds supply in South Florida and across most of the nation, so investors and young families are all circling the same properties hoping to hit paydirt.
“Multiple offers is the last thing buyers want to hear and the first thing sellers want to be able to say,” said Michael Corbett, a blogger for the Trulia.com real estate website.
Still, that doesn’t mean all sellers are necessarily rejoicing, said Judy Trudel, an agent with Balistreri Realty in Palm Beach and Broward counties.
“When you have multiple offers, it sounds like you’re in the driver’s seat,” Trudel said. “But it’s a very stressful situation.”
Not every multiple-offer situation turns out well. Broward real estate agent Carrie Hazen had a client who received three offers on her Coral Springs home.
That’s the good news. The bad? When the seller made counteroffers late last month, all three buyers bailed.
One of the buyers told Hazen she was backing out because another seller had accepted her contract – even though it’s unethical for a buyer to submit more than one offer at a time.
“Back to the drawing board,” Hazen said. “There are no slam dunks.”
Florida law doesn’t require agents to disclose when their listings get two or more written offers. But a National Association of Realtors code of ethics states that agents must make the disclosure if the buyer asks.
In most cases, the listing agent will collect the offers, announce there are competing bids and have everyone come back with their “highest and best offers” so the seller can pick one.
But some agents and sellers take a different approach.
They’ll negotiate individually with the buyers, making different counteroffers to each, even though they ultimately can sign only one contract.
Playing one offer against the other usually pushes the price higher and allows sellers to assess the motivation and financial strength of all the buyers, Corbett said.
That strategy paid off for Mike Killi, who’s selling his four-bedroom home in Coral Springs. The half-dozen bids gave him and his agent, Dean Ehrlich, the leverage to go back to each buyer and seek more money and the most favorable terms.
They had an offer for $5,000 above the $325,000 list price. But the buyer needed a mortgage, and there was no guarantee the home would appraise. No appraisal is needed in a cash sale.
Killi ultimately took a cash deal for $2,000 more than the asking price. The closing is expected in mid-August.
“We’re really happy with the way it turned out,” said Killi, 33, a social marketing manager for an advertising firm. “When you put your house on the market, you’re really nervous. When you get multiple offers, it very quickly puts you at ease.”
As Killi showed, the highest price isn’t necessarily the best offer. Some of the other considerations: the amount of downpayment, how soon the buyers want to close and whether they’ll agree to pay the difference if the home doesn’t appraise.
“Price is important, but it’s just one factor,” Broward agent Tim Singer said.
Sellers shouldn’t drag out multiple offers longer than a week, said Samantha DeBianchi, an agent in Fort Lauderdale. “It’s just good manners.”
But for some buyers, no amount of etiquette will cushion the blow of not getting the home.
“Somebody is going to get hurt or feel like they were treated unfairly,” said Randy Bianchi, broker-owner of Paradise Properties of Florida in West Palm Beach. “Multiple offers can turn off a lot of people because there’s always a winner and a loser.”
MIRAMAR, Fla. – Aug. 5, 2013 – The spiffy five-bedroom house on a quiet cul-de-sac in Miramar hit the market for $379,900 on a Monday. By the close of business, there were two offers, but listing agent Carlos Martin was preaching patience.
Tempting as it may have been to pick one right then, seller Robert Kull waited a week for more offers to materialize.
It was a wise choice. The home ultimately drew five bids. Kull rejected two cash deals in favor of a full-price offer from a buyer willing to pay above appraised value.
“We knew it was a real strong market,” Kull said. “Carlos said if we just hold out, we’ll get a full-price offer, and sure enough we did.”
Multiple offers are the Holy Grail of the housing recovery, but it takes skill and a dash of diplomacy to sort through all the possibilities.
Homes in good condition and priced fairly almost certainly will attract more than one offer, real estate agents say. Demand far exceeds supply in South Florida and across most of the nation, so investors and young families are all circling the same properties hoping to hit paydirt.
“Multiple offers is the last thing buyers want to hear and the first thing sellers want to be able to say,” said Michael Corbett, a blogger for the Trulia.com real estate website.
Still, that doesn’t mean all sellers are necessarily rejoicing, said Judy Trudel, an agent with Balistreri Realty in Palm Beach and Broward counties.
“When you have multiple offers, it sounds like you’re in the driver’s seat,” Trudel said. “But it’s a very stressful situation.”
Not every multiple-offer situation turns out well. Broward real estate agent Carrie Hazen had a client who received three offers on her Coral Springs home.
That’s the good news. The bad? When the seller made counteroffers late last month, all three buyers bailed.
One of the buyers told Hazen she was backing out because another seller had accepted her contract – even though it’s unethical for a buyer to submit more than one offer at a time.
“Back to the drawing board,” Hazen said. “There are no slam dunks.”
Florida law doesn’t require agents to disclose when their listings get two or more written offers. But a National Association of Realtors code of ethics states that agents must make the disclosure if the buyer asks.
In most cases, the listing agent will collect the offers, announce there are competing bids and have everyone come back with their “highest and best offers” so the seller can pick one.
But some agents and sellers take a different approach.
They’ll negotiate individually with the buyers, making different counteroffers to each, even though they ultimately can sign only one contract.
Playing one offer against the other usually pushes the price higher and allows sellers to assess the motivation and financial strength of all the buyers, Corbett said.
That strategy paid off for Mike Killi, who’s selling his four-bedroom home in Coral Springs. The half-dozen bids gave him and his agent, Dean Ehrlich, the leverage to go back to each buyer and seek more money and the most favorable terms.
They had an offer for $5,000 above the $325,000 list price. But the buyer needed a mortgage, and there was no guarantee the home would appraise. No appraisal is needed in a cash sale.
Killi ultimately took a cash deal for $2,000 more than the asking price. The closing is expected in mid-August.
“We’re really happy with the way it turned out,” said Killi, 33, a social marketing manager for an advertising firm. “When you put your house on the market, you’re really nervous. When you get multiple offers, it very quickly puts you at ease.”
As Killi showed, the highest price isn’t necessarily the best offer. Some of the other considerations: the amount of downpayment, how soon the buyers want to close and whether they’ll agree to pay the difference if the home doesn’t appraise.
“Price is important, but it’s just one factor,” Broward agent Tim Singer said.
Sellers shouldn’t drag out multiple offers longer than a week, said Samantha DeBianchi, an agent in Fort Lauderdale. “It’s just good manners.”
But for some buyers, no amount of etiquette will cushion the blow of not getting the home.
“Somebody is going to get hurt or feel like they were treated unfairly,” said Randy Bianchi, broker-owner of Paradise Properties of Florida in West Palm Beach. “Multiple offers can turn off a lot of people because there’s always a winner and a loser.”
Wednesday, July 24, 2013
Second time around for eminent domain legislation
ScottSorensonRealEstate.Com
WASHINGTON – July 24, 2013 – Two powerful trade groups on Monday, July 22 said they support action by U.S. Rep. John Campbell, R-Orange County, to reintroduce a bill that would limit the ability of municipalities to use eminent domain to seize underwater mortgages.
The legislation, reintroduced by Campbell last late week, drew the backing of Mortgage Bankers Association and the Securities Industry and Financial Markets Association.
The proposed Defending American Taxpayers from Abusive Government Takings Act is aimed at stopping city and county governments from enacting profit-making schemes that seek to cash in on the plight of underwater homeowners through the arbitrary seizure of private home loans, Campbell said. It would also prevent Fannie Mae and Freddie Mac from buying any home loans seized by eminent domain.
San Bernardino County and two of its cities in January abandoned a plan by Mortgage Resolution Partners to use eminent domain to seize troubled mortgages and write down debt for homeowners.
The decision struck a blow to a concept that, while controversial, drew national attention as a potential solution to the mortgage crisis. Now, local and regional governments elsewhere are considering similar proposals.
Those locales include Richmond in the Bay Area, where home prices have dropped below 58 percent since the housing peak, and North Las Vegas, where up to 5,000 residential mortgage loans face forced seizure by their local government.
Campbell is persisting with plans to get legislation in place to stop the eminent domain action, as well.
He said he is pressing for the bill on grounds the proponents of the eminent domain schemes intend to use tax dollars to seize distressed home loans to fund “unconventional” loan modifications and partner with the governments to make a profit in some of the most vulnerable areas of the country.
Even more egregiously, the underwriter for the unpaid principal balance in this scheme will not be private financiers, but the American taxpayer, Campbell said in a statement. “Using eminent domain to seize mortgages is not only legally questionable it represents a complete abrogation of private property rights.”
David Stevens, president and chief executive of Mortgage Bankers Association, commended Campbell for reintroducing the legislation.
“Using eminent domain to seize mortgages will result in tighter, more expensive credit for potential home buyers and those looking to refinance, driving down home values and threatening local economic recovery,” Stevens said in an interview.
“We have a high level of concern for communities that have been most impacted as a result of home price declines,” he added. “It remains a top priority for everyone working on housing issues inside Washington. But the reality is nothing can be more harmful to those communities than an eminent domain law.”
WASHINGTON – July 24, 2013 – Two powerful trade groups on Monday, July 22 said they support action by U.S. Rep. John Campbell, R-Orange County, to reintroduce a bill that would limit the ability of municipalities to use eminent domain to seize underwater mortgages.
The legislation, reintroduced by Campbell last late week, drew the backing of Mortgage Bankers Association and the Securities Industry and Financial Markets Association.
The proposed Defending American Taxpayers from Abusive Government Takings Act is aimed at stopping city and county governments from enacting profit-making schemes that seek to cash in on the plight of underwater homeowners through the arbitrary seizure of private home loans, Campbell said. It would also prevent Fannie Mae and Freddie Mac from buying any home loans seized by eminent domain.
San Bernardino County and two of its cities in January abandoned a plan by Mortgage Resolution Partners to use eminent domain to seize troubled mortgages and write down debt for homeowners.
The decision struck a blow to a concept that, while controversial, drew national attention as a potential solution to the mortgage crisis. Now, local and regional governments elsewhere are considering similar proposals.
Those locales include Richmond in the Bay Area, where home prices have dropped below 58 percent since the housing peak, and North Las Vegas, where up to 5,000 residential mortgage loans face forced seizure by their local government.
Campbell is persisting with plans to get legislation in place to stop the eminent domain action, as well.
He said he is pressing for the bill on grounds the proponents of the eminent domain schemes intend to use tax dollars to seize distressed home loans to fund “unconventional” loan modifications and partner with the governments to make a profit in some of the most vulnerable areas of the country.
Even more egregiously, the underwriter for the unpaid principal balance in this scheme will not be private financiers, but the American taxpayer, Campbell said in a statement. “Using eminent domain to seize mortgages is not only legally questionable it represents a complete abrogation of private property rights.”
David Stevens, president and chief executive of Mortgage Bankers Association, commended Campbell for reintroducing the legislation.
“Using eminent domain to seize mortgages will result in tighter, more expensive credit for potential home buyers and those looking to refinance, driving down home values and threatening local economic recovery,” Stevens said in an interview.
“We have a high level of concern for communities that have been most impacted as a result of home price declines,” he added. “It remains a top priority for everyone working on housing issues inside Washington. But the reality is nothing can be more harmful to those communities than an eminent domain law.”
Saturday, July 20, 2013
Fla. construction up 39.8% in major-metro markets
ScottSorensonRealEstate.Com
CHICAGO – July 19, 2013 – Major-metro regions in Florida – including Jacksonville; Miami-Fort Lauderdale-Pompano Beach; Orlando-Kissimmee-Sanford; Tallahassee; and Tampa-St. Petersburg-Clearwater – saw a 39.8 percent increase in construction projects actively bidding, according to the Bid Clerk Construction Index (BCI).
Most bidding projects were public, which rose 66.7 percent. Private construction activity increased 5.4 percent. The total value of all the Florida Major-Metro projects reported on Bid Clerk that bid in the 2nd quarter of 2013 was $4,178,988,643.
In a quarter-over-quarter analysis for construction projects actively bidding, the major-metro regions in Florida experienced a modest increase of 3.9 percent.
In a year-over-year analysis for the Miami region, combined public and private construction projects actively bidding increased 30.5 percent. A BCI quarter-over-quarter analysis finds that private and public construction projects actively bidding in Miami increased 4.8 percent compared to data reported in the first quarter of 2013.
In a year-over-year analysis for the Orlando region, public and private construction projects actively bidding increased 46.6 percent. Quarter-over-quarter, the private and public construction projects actively bidding increased 21.7 percent.
In a year-over-year analysis for the Tampa-St. Pete region, public and private construction projects actively bidding increased 40.3 percent. Quarter-over-quarter, private and public construction projects actively bidding increased 1 percent.
BidClerk provides construction project data and marketing tools for building product manufacturers, contractors and distributors.
CHICAGO – July 19, 2013 – Major-metro regions in Florida – including Jacksonville; Miami-Fort Lauderdale-Pompano Beach; Orlando-Kissimmee-Sanford; Tallahassee; and Tampa-St. Petersburg-Clearwater – saw a 39.8 percent increase in construction projects actively bidding, according to the Bid Clerk Construction Index (BCI).
Most bidding projects were public, which rose 66.7 percent. Private construction activity increased 5.4 percent. The total value of all the Florida Major-Metro projects reported on Bid Clerk that bid in the 2nd quarter of 2013 was $4,178,988,643.
In a quarter-over-quarter analysis for construction projects actively bidding, the major-metro regions in Florida experienced a modest increase of 3.9 percent.
In a year-over-year analysis for the Miami region, combined public and private construction projects actively bidding increased 30.5 percent. A BCI quarter-over-quarter analysis finds that private and public construction projects actively bidding in Miami increased 4.8 percent compared to data reported in the first quarter of 2013.
In a year-over-year analysis for the Orlando region, public and private construction projects actively bidding increased 46.6 percent. Quarter-over-quarter, the private and public construction projects actively bidding increased 21.7 percent.
In a year-over-year analysis for the Tampa-St. Pete region, public and private construction projects actively bidding increased 40.3 percent. Quarter-over-quarter, private and public construction projects actively bidding increased 1 percent.
BidClerk provides construction project data and marketing tools for building product manufacturers, contractors and distributors.
Wednesday, June 5, 2013
Home prices continue climb in Collier, U.S
ScottSorensonRealEstate.Com
Home prices nationwide are on a tear, and the Naples-Marco Island metro area is close to the front of the pack.
When it comes to year-over-year price increases, the Naples-Marco Island metro area is outpacing many major cities, whether or not you include distressed sales, defined as bank-owned transactions and short sales.
CoreLogic did not publish Lee County numbers.
According to a report issued Tuesday, by real estate data provider CoreLogic, Naples-Marco Island is beating such big cities as Washington, D.C., New York, Philadelphia and Chicago. Prices in other major metro areas such as Los Angeles, Phoenix, Atlanta and Riverside-San Bernardino-Ontario, Calif., are growing faster, however.
CoreLogic’s latest Home Price Index compares single-family home prices in April on a year-over-year and monthly basis. The index tracks repeat sales of the same houses over a three-decade time span and incorporates more than 6,800 Zip codes nationwide.
In Naples-Marco Island, home prices, including distressed sales, increased by 10.8 percent compared to a year earlier. On a month-over-month basis, prices grew by 5.1 percent. Excluding distressed sales, they rose 13.2 percent year-over-year and 3 percent the previous month.
Nationally, home prices rose 12.1 percent year-over-year and 3.2 percent month-over-month. Excluding short sales and bank-owned properties, prices rose 11.9 percent from a year earlier and 3 percent from the month before.
The national numbers represent the biggest year-over-year increases since February 2006 and the 14th consecutive monthly increase.
Do these large leaps mean consumers should worry about a new housing bubble, like the one which popped seven years ago? Sam Khater, deputy chief economist for CoreLogic, says no, because “prices have fallen so far from their peaks.”
Nationally, prices remain 22.4 percent below their April 2006 peak, including distressed sales. In Florida, which was infested with investors looking to cash in on vacation-home price run-ups during the boom and then hard-hit by foreclosures, prices are still 40.5 percent below the state’s peak, which happened in September 2006.
Still, CoreLogic expects that overall prices will stay on the upswing, at least for the short term. It projects that nationally, May’s prices will show an increase of 12.5 percent year-over-year and 2.7 percent month-over-month. Excluding distressed sales, CoreLogic expects they’ll increase 13.2 percent from a year earlier and 3.1 percent from April.
Tight inventory for both new and existing homes, coupled with pent-up demand from buyers, are driving the price bump-ups, the report stated.
Khater adds that both individual and institutional investors also are pushing up prices in many places as they scoop up properties, particularly bargain-priced foreclosures — though the pool of such properties is rapidly shrinking.
Florida is particularly popular with international investors from Latin America and Canada, he says.
Most investors are “laser-focused on low-hanging fruit” — properties costing less than $200,000 — both because they are more affordable and because they are most likely to see future price rebounds, he says.
Home prices nationwide are on a tear, and the Naples-Marco Island metro area is close to the front of the pack.
When it comes to year-over-year price increases, the Naples-Marco Island metro area is outpacing many major cities, whether or not you include distressed sales, defined as bank-owned transactions and short sales.
CoreLogic did not publish Lee County numbers.
According to a report issued Tuesday, by real estate data provider CoreLogic, Naples-Marco Island is beating such big cities as Washington, D.C., New York, Philadelphia and Chicago. Prices in other major metro areas such as Los Angeles, Phoenix, Atlanta and Riverside-San Bernardino-Ontario, Calif., are growing faster, however.
CoreLogic’s latest Home Price Index compares single-family home prices in April on a year-over-year and monthly basis. The index tracks repeat sales of the same houses over a three-decade time span and incorporates more than 6,800 Zip codes nationwide.
In Naples-Marco Island, home prices, including distressed sales, increased by 10.8 percent compared to a year earlier. On a month-over-month basis, prices grew by 5.1 percent. Excluding distressed sales, they rose 13.2 percent year-over-year and 3 percent the previous month.
Nationally, home prices rose 12.1 percent year-over-year and 3.2 percent month-over-month. Excluding short sales and bank-owned properties, prices rose 11.9 percent from a year earlier and 3 percent from the month before.
The national numbers represent the biggest year-over-year increases since February 2006 and the 14th consecutive monthly increase.
Do these large leaps mean consumers should worry about a new housing bubble, like the one which popped seven years ago? Sam Khater, deputy chief economist for CoreLogic, says no, because “prices have fallen so far from their peaks.”
Nationally, prices remain 22.4 percent below their April 2006 peak, including distressed sales. In Florida, which was infested with investors looking to cash in on vacation-home price run-ups during the boom and then hard-hit by foreclosures, prices are still 40.5 percent below the state’s peak, which happened in September 2006.
Still, CoreLogic expects that overall prices will stay on the upswing, at least for the short term. It projects that nationally, May’s prices will show an increase of 12.5 percent year-over-year and 2.7 percent month-over-month. Excluding distressed sales, CoreLogic expects they’ll increase 13.2 percent from a year earlier and 3.1 percent from April.
Tight inventory for both new and existing homes, coupled with pent-up demand from buyers, are driving the price bump-ups, the report stated.
Khater adds that both individual and institutional investors also are pushing up prices in many places as they scoop up properties, particularly bargain-priced foreclosures — though the pool of such properties is rapidly shrinking.
Florida is particularly popular with international investors from Latin America and Canada, he says.
Most investors are “laser-focused on low-hanging fruit” — properties costing less than $200,000 — both because they are more affordable and because they are most likely to see future price rebounds, he says.
Tuesday, June 4, 2013
U.S. home prices jumped in April by most in 7 years
ScottSorensonRealEstate.Com
WASHINGTON – June 4, 2013 – U.S. home prices increased 12.1 percent in April from a year earlier, the biggest gain since February 2006, as more buyers competed for fewer homes.
Real estate data provider CoreLogic says prices rose in April from the previous April in 48 states. Prices also rose 3.2 percent in April from March, much better than the previous month-to-month gain of 1.9 percent.
Prices in Nevada jumped 24.6 percent from a year earlier, the most among the states. California’s gain was next at 19.4 percent, followed by Arizona’s 17.3 percent, Hawaii’s 17 percent and Oregon’s 15.5 percent.
More people are looking to purchase homes. But the number of homes for sale is 14 percent lower than it was a year ago. The supply shortage has contributed to the price increases.
Rising home prices can help sustain the housing recovery. They encourage more homeowners to sell. And they spur would-be homeowners to buy before prices increase further.
Home sales and prices began to recover last year, six years after the housing bust. They have been buoyed by steady job gains and low mortgage rates.
Sales of previously occupied homes ticked up to a 3 1/2 year high in April, according to the National Association of Realtors. And they are likely to keep growing: A measure of signed contracts to buy homes rose to its highest level in three years in April. There is generally a one- to two-month lag between a signed contract and a completed sale.
The limited supply of homes has also made builders more willing to ramp up construction. That’s creating more construction jobs. Applications for building permits rose in April to the highest level in nearly five years.
Prices rose in April from the previous year in 94 out of the 100 largest U.S. cities, CoreLogic said. That’s up from 88 in the previous month.
Los Angeles and Phoenix reported the biggest price gains among the cities, CoreLogic said. Prices in both cities leapt 19.2 percent compared with a year earlier.
They were followed by Atlanta and Riverside-San Bernardino, which both posted 16.5 percent gains. Dallas rounded out the top five, with a 10.2 percent increase.
Despite the large gains, home prices are more than 22 percent below their April 2006 peak, the CoreLogic survey found.
In Nevada, they are still 47.3 percent below their peak, and in Florida, prices are 40.5 percent below their peak.
Copyright © 2013 The Associated Press, Christopher S. Rugaber, AP economics writer. All rights reserved.
Real estate data provider CoreLogic says prices rose in April from the previous April in 48 states. Prices also rose 3.2 percent in April from March, much better than the previous month-to-month gain of 1.9 percent.
Prices in Nevada jumped 24.6 percent from a year earlier, the most among the states. California’s gain was next at 19.4 percent, followed by Arizona’s 17.3 percent, Hawaii’s 17 percent and Oregon’s 15.5 percent.
More people are looking to purchase homes. But the number of homes for sale is 14 percent lower than it was a year ago. The supply shortage has contributed to the price increases.
Rising home prices can help sustain the housing recovery. They encourage more homeowners to sell. And they spur would-be homeowners to buy before prices increase further.
Home sales and prices began to recover last year, six years after the housing bust. They have been buoyed by steady job gains and low mortgage rates.
Sales of previously occupied homes ticked up to a 3 1/2 year high in April, according to the National Association of Realtors. And they are likely to keep growing: A measure of signed contracts to buy homes rose to its highest level in three years in April. There is generally a one- to two-month lag between a signed contract and a completed sale.
The limited supply of homes has also made builders more willing to ramp up construction. That’s creating more construction jobs. Applications for building permits rose in April to the highest level in nearly five years.
Prices rose in April from the previous year in 94 out of the 100 largest U.S. cities, CoreLogic said. That’s up from 88 in the previous month.
Los Angeles and Phoenix reported the biggest price gains among the cities, CoreLogic said. Prices in both cities leapt 19.2 percent compared with a year earlier.
They were followed by Atlanta and Riverside-San Bernardino, which both posted 16.5 percent gains. Dallas rounded out the top five, with a 10.2 percent increase.
Despite the large gains, home prices are more than 22 percent below their April 2006 peak, the CoreLogic survey found.
In Nevada, they are still 47.3 percent below their peak, and in Florida, prices are 40.5 percent below their peak.
Copyright © 2013 The Associated Press, Christopher S. Rugaber, AP economics writer. All rights reserved.
Wednesday, May 29, 2013
Fla. consumer confidence hits post-recession high
ScottSorensonRealEstate.Com
GAINESVILLE, Fla. – May 29, 2013 – Floridians’ consumer confidence rose another two points in May to 81 – a third straight month of increases for a post-recession high, according to a University of Florida (UF) survey.
“The last time confidence was this high was August of 2007 when it was 82, shortly before the Great Recession began,” says Chris McCarty, director of UF’s Survey Research Center in the Bureau of Economic and Business Research.
Three of the five components used to determine the Florida Consumer Sentiment Index increased. Respondents’ expectations that their personal finances will improve a year from now rose three points to 82. Meanwhile, their overall confidence in the nation’s economic conditions over the coming year increased two points to 81.
Floridian’s trust in the national economy over the next five years surged, rising eight points to 85.
The survey showed a decline in two components, however. Survey takers’ perception that they’re better off financially now than a year ago fell three points to 68. In addition, their confidence in the timing to buy a big consumer product right now, such as an automobile, fell one point to 89.
Overall, though, Floridians’ confidence shows an upward trend.
“(Last month’s) increase was largely due to increased confidence among respondents under age 60, who were optimistic about their personal finances and U.S. economic conditions,” McCarty says. But this month’s increase found that older Floridians are even more optimistic. Confidence among respondents 60 and older in the national economy over next five years increased 15 points to 88.
“As the headlines turn to news other than budget cuts and possible changes to Social Security, consumer confidence improves for Floridians,” McCarty says. “This is especially true for seniors.”
Meanwhile, positive statewide economic news also boosts confidence. The legislative session in Tallahassee recently ended with a budget increase for the first time in several years. April’s unemployment rate was 7.2 percent, a drop of three-tenths of a percent from March. Construction, retail trade and service sectors saw job increases. Home sale prices improved again by $5,000 to a median price of $165,000. Sales have been strong, and new home construction is under way in some areas of Florida.
The stock market also reached record highs in May.
So far, most Floridians have not experienced the negative effects of sequestration. However, this could change as wide-reaching cuts in services and jobs trickle into the economy, McCarty says.
That process may have already begun. Employment in leisure and hospitality is down from March, and Florida’s sales tax revenue in April was less than expected. McCarty suggested sequestration might have affected plans for vacations for workers in other states.
“Our expectation is that the effects of sequestration will be more fully realized as the summer progresses and confidence will likely stay the same or pull back slightly,” McCarty says. “For now, optimism among Floridians is growing.”
Conducted May 13-23, the study reflects the responses of 410 individuals, representing a demographic cross-section of Florida. The index used by UF researchers is benchmarked to 1966, which means a value of 100 represents the same level of confidence for that year. The lowest index possible is a 2; the highest is 150.
GAINESVILLE, Fla. – May 29, 2013 – Floridians’ consumer confidence rose another two points in May to 81 – a third straight month of increases for a post-recession high, according to a University of Florida (UF) survey.
“The last time confidence was this high was August of 2007 when it was 82, shortly before the Great Recession began,” says Chris McCarty, director of UF’s Survey Research Center in the Bureau of Economic and Business Research.
Three of the five components used to determine the Florida Consumer Sentiment Index increased. Respondents’ expectations that their personal finances will improve a year from now rose three points to 82. Meanwhile, their overall confidence in the nation’s economic conditions over the coming year increased two points to 81.
Floridian’s trust in the national economy over the next five years surged, rising eight points to 85.
The survey showed a decline in two components, however. Survey takers’ perception that they’re better off financially now than a year ago fell three points to 68. In addition, their confidence in the timing to buy a big consumer product right now, such as an automobile, fell one point to 89.
Overall, though, Floridians’ confidence shows an upward trend.
“(Last month’s) increase was largely due to increased confidence among respondents under age 60, who were optimistic about their personal finances and U.S. economic conditions,” McCarty says. But this month’s increase found that older Floridians are even more optimistic. Confidence among respondents 60 and older in the national economy over next five years increased 15 points to 88.
“As the headlines turn to news other than budget cuts and possible changes to Social Security, consumer confidence improves for Floridians,” McCarty says. “This is especially true for seniors.”
Meanwhile, positive statewide economic news also boosts confidence. The legislative session in Tallahassee recently ended with a budget increase for the first time in several years. April’s unemployment rate was 7.2 percent, a drop of three-tenths of a percent from March. Construction, retail trade and service sectors saw job increases. Home sale prices improved again by $5,000 to a median price of $165,000. Sales have been strong, and new home construction is under way in some areas of Florida.
The stock market also reached record highs in May.
So far, most Floridians have not experienced the negative effects of sequestration. However, this could change as wide-reaching cuts in services and jobs trickle into the economy, McCarty says.
That process may have already begun. Employment in leisure and hospitality is down from March, and Florida’s sales tax revenue in April was less than expected. McCarty suggested sequestration might have affected plans for vacations for workers in other states.
“Our expectation is that the effects of sequestration will be more fully realized as the summer progresses and confidence will likely stay the same or pull back slightly,” McCarty says. “For now, optimism among Floridians is growing.”
Conducted May 13-23, the study reflects the responses of 410 individuals, representing a demographic cross-section of Florida. The index used by UF researchers is benchmarked to 1966, which means a value of 100 represents the same level of confidence for that year. The lowest index possible is a 2; the highest is 150.
Sunday, May 26, 2013
NABOR BULLISH ON SUMMER REAL ESTATE MARKET
ScottSorensonRealEstate.Com
NABOR BULLISH ON SUMMER REAL ESTATE MARKET
Release Date: Friday, May 24, 2013
- Pending sales increased 27% in the $300K-$500K and 21% in the $1M-$2M category 12-month ending 04/2013
- Closed sales increased 45% in the $300K-$500K and 48% in the $2M+ category 12-month ending 04/2013
- Median Closed Price increased 18% overall 12-month ending 04/2013
- Inventory decreased 14% overall 12-month ending 04/2013
- Average DOM has decreased 14% overall 12-month ending 04/2013
View the Report (Print the Article)
NABOR says summer outlook good for home sales following robust April
ScottSorensonRealEstate.Com
NAPLES —The housing market remains hot heading into summer.
It’s the result of a “trifecta factor” with overall inventory continuing to decrease, the average days-on-the-market declining and median home prices continuing to increase, the Naples Area Board of Realtors announced Friday.
“For the last few years, we have continued to see strong home sales in the summer,” said Mike Hughes, vice president and general manager of Downing-Frye Realty in a statement. “The notion of strong sales occurring only during traditional ‘season’ is no longer, and we are very bullish on the real estate market heading into summer due to the environment of low inventory, the tightening up of days on the market and the increase in median prices. If people have been waiting to list, now may be the time.”
The overall median price increased 18 percent from $186,000 in April 2012 to $219,000 for the 12-month period ending April 2013, according to a prepared statement NABOR released Friday.
The median is the price at which half the homes sell for more and half for less. The monthly report tracks Realtor sales through the Sunshine Multiple Listing Service (MLS) in Collier County, excluding Marco Island.
Overall pending sales increased 5 percent from 10,166 units to 10,678 units for the 12-month period ending April 2013, NABOR’s statement said.
Overall, the total number of closed sales in all price categories increased in April compared to a year ago.
Meanwhile, pending sales rose in all price categories in April compared to a year before except in the under $300,000 category. During that time period, pending sales rose 27 percent in the $300,000 to $500,000 category from 1,405 units to 1,781 units; 13 percent in the $500,000 to $1 million category, from 1,070 units to 1,214 units, and 21 percent in the $1 million to $2 million category, from 450 units to 545 units.
The Realtors’ report said the average number of days on the market decreased 14 percent overall, from 183 days in April 2012 to 158 last month.
The condominium market increased in all price categories. In the $1 million to $2 million category, sales increased 40 percent from 169 to 237 for the 12-month period ending in April. In addition, condominium closed sales increased 13 percent from 165 to 187 for the 12-month period ending in April, the report said. “These are encouraging statistics indeed,” said Phil Wood, president and CEO of John R. Wood Realtors.
Statewide, single-family home sales were up 17.4 percent from a year ago, Florida Realtors reported this week.
The statewide sales mark was trumped in some markets. Single-family home sales jumped 32 percent in Jacksonville in April compared with April 2012, 24.5 percent in the Tampa-St. Petersburg region and 46 percent in Tallahassee.
Sales increases weren’t as high in the southern half of the state, where median sales prices are higher than the $165,000 statewide level.
In the Miami-Fort Lauderdale market, with a median price of home sales at $250,000, the market recorded a 13 percent increase in single-family home sales, according to the Florida Realtors’ report.
Statewide, there were 20,662 single-family home sales in April. Florida’s median single-family sales price continues below the national mark of $185,100.
Florida Realtors chief economist John Tuccillo credited the sales increases to a stabilization of the distressed property market with the number of short sales dropping, while foreclosures and real estate-owned property sales remained steady.
“Because the government is selling foreclosed properties in bulk and also using online auctions, our sales numbers actually understate the vigor of the market,” Tuccillo said in the Florida Realtors’ statement.
__ The News Service of Florida contributed to this report.
NAPLES —The housing market remains hot heading into summer.
It’s the result of a “trifecta factor” with overall inventory continuing to decrease, the average days-on-the-market declining and median home prices continuing to increase, the Naples Area Board of Realtors announced Friday.
“For the last few years, we have continued to see strong home sales in the summer,” said Mike Hughes, vice president and general manager of Downing-Frye Realty in a statement. “The notion of strong sales occurring only during traditional ‘season’ is no longer, and we are very bullish on the real estate market heading into summer due to the environment of low inventory, the tightening up of days on the market and the increase in median prices. If people have been waiting to list, now may be the time.”
The overall median price increased 18 percent from $186,000 in April 2012 to $219,000 for the 12-month period ending April 2013, according to a prepared statement NABOR released Friday.
The median is the price at which half the homes sell for more and half for less. The monthly report tracks Realtor sales through the Sunshine Multiple Listing Service (MLS) in Collier County, excluding Marco Island.
Overall pending sales increased 5 percent from 10,166 units to 10,678 units for the 12-month period ending April 2013, NABOR’s statement said.
Overall, the total number of closed sales in all price categories increased in April compared to a year ago.
Meanwhile, pending sales rose in all price categories in April compared to a year before except in the under $300,000 category. During that time period, pending sales rose 27 percent in the $300,000 to $500,000 category from 1,405 units to 1,781 units; 13 percent in the $500,000 to $1 million category, from 1,070 units to 1,214 units, and 21 percent in the $1 million to $2 million category, from 450 units to 545 units.
The Realtors’ report said the average number of days on the market decreased 14 percent overall, from 183 days in April 2012 to 158 last month.
The condominium market increased in all price categories. In the $1 million to $2 million category, sales increased 40 percent from 169 to 237 for the 12-month period ending in April. In addition, condominium closed sales increased 13 percent from 165 to 187 for the 12-month period ending in April, the report said. “These are encouraging statistics indeed,” said Phil Wood, president and CEO of John R. Wood Realtors.
Statewide, single-family home sales were up 17.4 percent from a year ago, Florida Realtors reported this week.
The statewide sales mark was trumped in some markets. Single-family home sales jumped 32 percent in Jacksonville in April compared with April 2012, 24.5 percent in the Tampa-St. Petersburg region and 46 percent in Tallahassee.
Sales increases weren’t as high in the southern half of the state, where median sales prices are higher than the $165,000 statewide level.
In the Miami-Fort Lauderdale market, with a median price of home sales at $250,000, the market recorded a 13 percent increase in single-family home sales, according to the Florida Realtors’ report.
Statewide, there were 20,662 single-family home sales in April. Florida’s median single-family sales price continues below the national mark of $185,100.
Florida Realtors chief economist John Tuccillo credited the sales increases to a stabilization of the distressed property market with the number of short sales dropping, while foreclosures and real estate-owned property sales remained steady.
“Because the government is selling foreclosed properties in bulk and also using online auctions, our sales numbers actually understate the vigor of the market,” Tuccillo said in the Florida Realtors’ statement.
__ The News Service of Florida contributed to this report.
Monday, May 6, 2013
HOME PRICES NEAR NEW HIGHS IN SOME MARKETS
ScottSorensonRealEstate.Com
NEW YORK – May 6, 2013 – Home prices in 10 percent of the nation’s top 200 housing markets have recently hit new peaks or are only a hair away, new data show.
Another 24 of the top markets are within 5 percent of their peaks, according to data provided to USA TODAY by real estate tracker Lender Processing Services. Many of those cities are likely to hit new peaks this year, economists say, given projections for continued price increases.
The data show how far prices in many cities have rebounded since the historic housing bust after mid-2006 – and how far they still have to go in most cities. It also underscores the uneven impact of the housing bubble, and the bust, in different regions.
Dozens of markets where prices peaked by 2006 are still 25 percent to 58 percent below those highs, LPS says.
Many cities now at or close to previous highs never saw the price run-ups leading up to the bust that others did. Afterward, they didn’t drop as far, so they have less of a climb back.
Of the cities within 5 percent of their previous peaks, none saw more than an 11 percent decline in home values from mid-2006 to the market’s bottom in early 2012, LPS data show. Nationally, prices fell almost 28 percent during that time.
“We didn’t get invited to the party, so we never had the hangover,” says Ron Croushore, CEO of Prudential Preferred Realty in Pittsburgh.
Denver, which was up almost 1 percent in February from its 2006 peak, suffered almost a 10 percent decline during the national housing bust. Honolulu, which was 2 percent from its 2007 peak in February, had been hit with an 11 percent decline.
Job growth is another factor in recovered markets.
Austin, Denver, Baton Rouge, Houston, Oklahoma City and Knoxville, Tenn., are at previous highs or within 5 percent, LPS’ data show. In March, all posted stronger annual job growth than the national average of 1.4 percent, based on Bureau of Labor Statistics data. Austin’s job growth was 4 percent year-over-year. Home prices there are up 9.7 percent from mid-2006, LPS says.
The strong job market “has helped our housing market recover rather quickly,” says Angelos Angelou of the Austin-based Angelou Economics.
In the past year, U.S. home prices rose faster than many expected. LPS shows a 7.3 percent gain in February year over year.
Some cities have done better. Home prices in Phoenix and San Francisco were up 19 percent.
Even so, Phoenix is 36 percent off its 2006 peak. San Francisco is almost 25 percent off its peak, LPS says.
Copyright © USA TODAY 2013
NEW YORK – May 6, 2013 – Home prices in 10 percent of the nation’s top 200 housing markets have recently hit new peaks or are only a hair away, new data show.
Another 24 of the top markets are within 5 percent of their peaks, according to data provided to USA TODAY by real estate tracker Lender Processing Services. Many of those cities are likely to hit new peaks this year, economists say, given projections for continued price increases.
The data show how far prices in many cities have rebounded since the historic housing bust after mid-2006 – and how far they still have to go in most cities. It also underscores the uneven impact of the housing bubble, and the bust, in different regions.
Dozens of markets where prices peaked by 2006 are still 25 percent to 58 percent below those highs, LPS says.
Many cities now at or close to previous highs never saw the price run-ups leading up to the bust that others did. Afterward, they didn’t drop as far, so they have less of a climb back.
Of the cities within 5 percent of their previous peaks, none saw more than an 11 percent decline in home values from mid-2006 to the market’s bottom in early 2012, LPS data show. Nationally, prices fell almost 28 percent during that time.
“We didn’t get invited to the party, so we never had the hangover,” says Ron Croushore, CEO of Prudential Preferred Realty in Pittsburgh.
Denver, which was up almost 1 percent in February from its 2006 peak, suffered almost a 10 percent decline during the national housing bust. Honolulu, which was 2 percent from its 2007 peak in February, had been hit with an 11 percent decline.
Job growth is another factor in recovered markets.
Austin, Denver, Baton Rouge, Houston, Oklahoma City and Knoxville, Tenn., are at previous highs or within 5 percent, LPS’ data show. In March, all posted stronger annual job growth than the national average of 1.4 percent, based on Bureau of Labor Statistics data. Austin’s job growth was 4 percent year-over-year. Home prices there are up 9.7 percent from mid-2006, LPS says.
The strong job market “has helped our housing market recover rather quickly,” says Angelos Angelou of the Austin-based Angelou Economics.
In the past year, U.S. home prices rose faster than many expected. LPS shows a 7.3 percent gain in February year over year.
Some cities have done better. Home prices in Phoenix and San Francisco were up 19 percent.
Even so, Phoenix is 36 percent off its 2006 peak. San Francisco is almost 25 percent off its peak, LPS says.
Copyright © USA TODAY 2013
Wednesday, May 1, 2013
Is the quick house flip making a comeback?
ScottSorensonRealEstate.Com
NEW YORK – May 1, 2013 – More Americans are again on the hunt to snag a home at a bargain price, fix it up, and then try to resell it for a quick profit. These home flippers mostly vanished during the housing downturn, but flipping is starting to return thanks to slowly rising home values.
RealtyTrac says flipping increased for the second year in row, rising a slight 0.33 percent in 2012 from 12 percent in 2011. The company defines flipping as buying and selling a property within six months.
According to RealtyTrac, the average gross profit in a flip was $37,375 in 2012; and some of the best places to flip homes in 2012 were Orlando, Fla.; Richmond, Va.; Tucson, Ariz.; and Charlotte, N.C.
For example, Orlando home flips were purchased for $100,397, on average, and then sold for $174,895 – earning a gross profit, on average, of nearly $75,000.
Flippers are more cautious this time around, however. They tend to come in with an all-cash deal, and many also hold onto properties longer than they once did. On average, the flipping time from purchase to resale stands at about 106 days today, according to RealtyTrac.
“That seems to be the sweet spot for a profitable deal,” says Daren Blomquist, vice president at RealtyTrac. “Back in the housing bubble, many flippers were solely relying on price appreciation, sitting back and selling for big profits within a month or two.”
Source: “The New Rules of House Flipping,” Reuters (April 18, 2013)
NEW YORK – May 1, 2013 – More Americans are again on the hunt to snag a home at a bargain price, fix it up, and then try to resell it for a quick profit. These home flippers mostly vanished during the housing downturn, but flipping is starting to return thanks to slowly rising home values.
RealtyTrac says flipping increased for the second year in row, rising a slight 0.33 percent in 2012 from 12 percent in 2011. The company defines flipping as buying and selling a property within six months.
According to RealtyTrac, the average gross profit in a flip was $37,375 in 2012; and some of the best places to flip homes in 2012 were Orlando, Fla.; Richmond, Va.; Tucson, Ariz.; and Charlotte, N.C.
For example, Orlando home flips were purchased for $100,397, on average, and then sold for $174,895 – earning a gross profit, on average, of nearly $75,000.
Flippers are more cautious this time around, however. They tend to come in with an all-cash deal, and many also hold onto properties longer than they once did. On average, the flipping time from purchase to resale stands at about 106 days today, according to RealtyTrac.
“That seems to be the sweet spot for a profitable deal,” says Daren Blomquist, vice president at RealtyTrac. “Back in the housing bubble, many flippers were solely relying on price appreciation, sitting back and selling for big profits within a month or two.”
Source: “The New Rules of House Flipping,” Reuters (April 18, 2013)
Monday, April 29, 2013
NAR: Pending sales rise modestly as inventory tightens
ScottSorensonRealEstate.Com
WASHINGTON – April 29, 2013 – Pending home sales increased in March and remain above year-ago levels, but contract activity in recent months shows only modest movement, according to the National Association of Realtors® (NAR).
NAR’s Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 1.5 percent to 105.7 in March from a downwardly revised 104.1 in February, and is 7 percent above March 2012 when it was 98.8.
Pending sales have been above year-ago levels for the past 23 months; the data reflect contracts but not closings.
“Contract activity has been in a narrow range in recent months, not from a pause in demand but because of limited supply,” says Lawrence Yun, NAR chief economist. “Little movement is expected in near-term sales closings, but they should edge up modestly as the year progresses. Job additions and rising household wealth will continue to support housing demand.”
The pending index in the Northeast was unchanged at 82.8 in March and is 6.3 percent higher than March 2012. In the Midwest, the index increased 0.3 percent to 103.8 in March and is 13.7 percent above a year ago.
Pending home sales in the South rose 2.7 percent to an index of 120 in March and are 10.4 percent higher than March 2012. In the West, the index increased 1.5 percent in March to 102.9 but is 4.3 percent below a year ago.
NAR predicts that total existing-home sales in 2013 will increase 6.5 to 7 percent over 2012 to nearly 5 million sales this year, while the national median existing-home price is forecast to rise about 7.5 percent.
WASHINGTON – April 29, 2013 – Pending home sales increased in March and remain above year-ago levels, but contract activity in recent months shows only modest movement, according to the National Association of Realtors® (NAR).
NAR’s Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 1.5 percent to 105.7 in March from a downwardly revised 104.1 in February, and is 7 percent above March 2012 when it was 98.8.
Pending sales have been above year-ago levels for the past 23 months; the data reflect contracts but not closings.
“Contract activity has been in a narrow range in recent months, not from a pause in demand but because of limited supply,” says Lawrence Yun, NAR chief economist. “Little movement is expected in near-term sales closings, but they should edge up modestly as the year progresses. Job additions and rising household wealth will continue to support housing demand.”
The pending index in the Northeast was unchanged at 82.8 in March and is 6.3 percent higher than March 2012. In the Midwest, the index increased 0.3 percent to 103.8 in March and is 13.7 percent above a year ago.
Pending home sales in the South rose 2.7 percent to an index of 120 in March and are 10.4 percent higher than March 2012. In the West, the index increased 1.5 percent in March to 102.9 but is 4.3 percent below a year ago.
NAR predicts that total existing-home sales in 2013 will increase 6.5 to 7 percent over 2012 to nearly 5 million sales this year, while the national median existing-home price is forecast to rise about 7.5 percent.
While Wronged Homeowners Got $300 Apiece in Foreclosure Settlement, Consultants Who Helped Protect Banks Got $2 Billion
ScottSorensonRealEstate/.Com
The obscene greed-and-arrogance stories emanating from Wall Street are piling up so fast, it's getting hard to keep up. This one is from last week, but I missed it – it's about the foreclosure/robo-signing settlement that was concluded earlier this year.
The upshot of this story is that in advance of that notorious settlement, the government ordered banks to hire "independent" consultants to examine their loan files to see just exactly how corrupt they were.
Now it comes out that not only were these consultants not so independent, not only did they very likely skew the numbers seriously in favor of the banks, and not only were these few consultants paid over $2 billion (over 20 percent of the entire settlement amount) while the average homeowner only received $300 in the deal – in addition to all of that, it appears that federal regulators will not turn over the evidence of impropriety they discovered during these reviews to homeowners who may want to sue the banks.
In other words, the government not only ordered the banks to hire consultants who may have gamed the foreclosure settlement in favor of the banks, but the regulators themselves are hiding the information from the public in order to shield the banks from further lawsuits.
Secrets and Lies of the Bailout
To recap: in the foreclosure deal, 13 banks agreed to pay a total of $9.3 billion to settle their liability in a number of areas, including robo-signing, which is just a euphemism for mass-perjury – robo-signing is the practice of having low-level bank employees sign documents attesting to full knowledge of case files in court foreclosure actions, when in fact they were signing hundreds of files per day, often having no idea whether the paperwork was correct or not.
It was done across the industry and turned housing cases across America into nightmares of jumbled and/or forged paperwork, in which even people who did not deserve to be thrown out of their homes were uprooted thanks to systematic errors by faceless bureaucrats who cut legal corners purely to save money.
All the major banks were guilty on a mass scale, but they worked with federal regulators like the Fed and the Office of the Comptroller of the Currency to secure this wide-ranging, industry-saving settlement, which not only covered the robosigning epidemic but a host of other bad or illegal practices, like the wrongful denial of modifications and the improper levying of (often hidden) fees.
Minus this crucial settlement, banks would have faced enormous uncertainty about their legal liability going forward, and getting a deal that not only gave these companies some legal closure but allowed them to pay pennies on the dollar for their illegal activity was a massive coup for the whole finance sector.
Only $3.6 billion was earmarked for cash payments to the nearly 4 million homeowners covered in the settlement. Most of the remainder of the deal was in other forms of non-cash relief, i.e. modifications or principal reductions.
Now, at the time of the deal, press releases by the Fed and the OCC stated that part of the reason they'd fixed on that particular settlement amount was that regulators had uncovered that banks had made errors or committed illegal acts in about 6.5 percent of the mortgage files reviewed. In other words, the error rate was an important component of this calculation.
But it turned out that this error rate had been calculated with the help of several consultant firms regulators had ordered the banks to hire. Regulators had mandated the hiring of these "independent" consultants back in 2011, and the list of companies included Promontory Financial Group, PricewaterhouseCoopers, Ernst & Young, and Deloitte & Touche. These private firms were hired to review the banks' loan files in search of errors, and collectively were paid by the banks over $2 billion, a staggering sum which ultimately worked out to over $20,000 per file.
Read more: http://www.rollingstone.com/politics/blogs/taibblog/while-wronged-homeowners-got-300-apiece-in-foreclosure-settlement-consultants-who-helped-protect-banks-got-2-billion-20130426#ixzz2RsO90Esi
Follow us: @rollingstone on Twitter | RollingStone on Facebook
The obscene greed-and-arrogance stories emanating from Wall Street are piling up so fast, it's getting hard to keep up. This one is from last week, but I missed it – it's about the foreclosure/robo-signing settlement that was concluded earlier this year.
The upshot of this story is that in advance of that notorious settlement, the government ordered banks to hire "independent" consultants to examine their loan files to see just exactly how corrupt they were.
Now it comes out that not only were these consultants not so independent, not only did they very likely skew the numbers seriously in favor of the banks, and not only were these few consultants paid over $2 billion (over 20 percent of the entire settlement amount) while the average homeowner only received $300 in the deal – in addition to all of that, it appears that federal regulators will not turn over the evidence of impropriety they discovered during these reviews to homeowners who may want to sue the banks.
In other words, the government not only ordered the banks to hire consultants who may have gamed the foreclosure settlement in favor of the banks, but the regulators themselves are hiding the information from the public in order to shield the banks from further lawsuits.
Secrets and Lies of the Bailout
To recap: in the foreclosure deal, 13 banks agreed to pay a total of $9.3 billion to settle their liability in a number of areas, including robo-signing, which is just a euphemism for mass-perjury – robo-signing is the practice of having low-level bank employees sign documents attesting to full knowledge of case files in court foreclosure actions, when in fact they were signing hundreds of files per day, often having no idea whether the paperwork was correct or not.
It was done across the industry and turned housing cases across America into nightmares of jumbled and/or forged paperwork, in which even people who did not deserve to be thrown out of their homes were uprooted thanks to systematic errors by faceless bureaucrats who cut legal corners purely to save money.
All the major banks were guilty on a mass scale, but they worked with federal regulators like the Fed and the Office of the Comptroller of the Currency to secure this wide-ranging, industry-saving settlement, which not only covered the robosigning epidemic but a host of other bad or illegal practices, like the wrongful denial of modifications and the improper levying of (often hidden) fees.
Minus this crucial settlement, banks would have faced enormous uncertainty about their legal liability going forward, and getting a deal that not only gave these companies some legal closure but allowed them to pay pennies on the dollar for their illegal activity was a massive coup for the whole finance sector.
Only $3.6 billion was earmarked for cash payments to the nearly 4 million homeowners covered in the settlement. Most of the remainder of the deal was in other forms of non-cash relief, i.e. modifications or principal reductions.
Now, at the time of the deal, press releases by the Fed and the OCC stated that part of the reason they'd fixed on that particular settlement amount was that regulators had uncovered that banks had made errors or committed illegal acts in about 6.5 percent of the mortgage files reviewed. In other words, the error rate was an important component of this calculation.
But it turned out that this error rate had been calculated with the help of several consultant firms regulators had ordered the banks to hire. Regulators had mandated the hiring of these "independent" consultants back in 2011, and the list of companies included Promontory Financial Group, PricewaterhouseCoopers, Ernst & Young, and Deloitte & Touche. These private firms were hired to review the banks' loan files in search of errors, and collectively were paid by the banks over $2 billion, a staggering sum which ultimately worked out to over $20,000 per file.
Read more: http://www.rollingstone.com/politics/blogs/taibblog/while-wronged-homeowners-got-300-apiece-in-foreclosure-settlement-consultants-who-helped-protect-banks-got-2-billion-20130426#ixzz2RsO90Esi
Follow us: @rollingstone on Twitter | RollingStone on Facebook
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