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www.ScottSorensonRealEstate.com
Naples, Fla. (October
23, 2015) - Broker analysts were pleased when they reviewed the Third
Quarter Market Report released by the Naples Area Board of REALTORS®
(NABOR®), which tracks home listings and sales within Collier County
(excluding Marco Island). The report showed positive trends during the summer
months of 2015, with increased activity in neighborhoods located inland (east
of 41) including South, East and Central Naples. Overall closed sales for
single-family homes in the $1-million to $2-million price category outpaced
all other price categories with a 79 percent increase (quarter over quarter)
from 56 single-family homes sold in the Third Quarter of 2014 to 100 sold in
the Third Quarter of 2015.
"The third quarter report confirmed to us that summer was
strong for home sales," said Mike Hughes, NABOR® president, Vice
President and General Manager of Downing-Frye Realty, referring to
double-digit increases in closed sales for homes priced above $300,000.
"I'm especially impressed at how well the high-end single-family home
market did in the past three months because we typically see more people buy
in this range between Christmas and Easter."
Geographically, activity was most remarkable during the Third
Quarter in inland neighborhoods of Naples with activity in the South Naples
condominium market leading the pack. According to a quarterly comparison of
the Third Quarter of 2014 versus the Third Quarter of 2015, South Naples saw
an 8 percent increase in pending sales for condominiums, a 9 percent increase
in closed sales for condominiums, and a 24 percent increase in median closed
price for condominiums.
Broker analysts agreed that a renewed interest in homes located
east of U.S. 41 was not a surprise. "Sales of homes near the beach
happened faster following the recession because of their prime
location," said Pat Pitocchi, NABOR® media relations chairperson and
corporate trainer at Downing-Frye Realty. "But the latest reports show
us the housing market in all geographic areas within Naples has recovered as
buyers are showing increased interest in our inland properties."
Bill Coffey, Broker Manager of Amerivest Realty Naples, agreed
with Pitocchi, noting that the reports also showed a strong trend in how
people are purchasing homes, cash versus financing. "There was an 11
percent decrease in cash sales from 66.8 percent in September 2014 to 55.6
percent in September 2015," said Coffey. "When the number of homes
being financed continues to increase through the summer months, it's a good
indicator that more full-time families are being attracted to the area."
Other inland areas that saw heightened activity during the Third
Quarter were Central and East Naples. Of note, Central Naples (which includes
neighborhoods between U.S. 41 and Collier Boulevard) saw a 24 percent
increase (quarter over quarter) in overall median closed price from $185,000
in the Third Quarter of 2014 to $230,000 in the Third Quarter of 2015, and
single-family homes in East Naples (identified as homes located east of
Collier Boulevard) experienced a 29 percent increase in median closed price
from $221,000 in the Third Quarter of 2014 to $285,000 in the Third Quarter
of 2015.
NABOR also released its September 2015 Market Report which
showed a 10 percent decrease in pending sales (homes under contract) from 829
homes pending in September 2014 to 749 in September 2015. According to
Hughes, the dip in September's pending sales may have been tied to the stock
market's erratic behavior, which tends to shake consumer confidence and cause
people to delay big purchase decisions.
The Third Quarter and September 2015 Market Reports also
uncovered a possible new trend in inventory as the number of homes for sale
in the $300,000 and below price range was no longer the largest category of
inventory as in the past. As pointed out by Brenda Fioretti, Managing Broker
at Berkshire Hathaway HomeServices Florida Realty, "Out of the 945 homes
for sale under $300,000, only 291 are single-family homes. However, there are
505 single-family homes for sale in the $300,000 to $500,000 price category,
and 598 single-family homes for sale in the $500,000 to $1 million price
category. Due to the increase in home values, many homes previously listed in
the lower price categories have crept up to the next higher price category,
which is referred to as bracket creep."
The NABOR® Third Quarter 2015 Market 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® Third Quarter 2015 sales statistics are presented in
chart format, including these overall (single-family and condominium)
findings:
The NABOR® September 2015 Market Report was also released and
reflected these overall (single-family and condominium) findings:
"The third quarter report also showed us that a lot more
people purchased single-family homes above $1 million this summer than in the
same quarter last year," said Steve Barker, Advising Broker for Equity
Realty. Indeed, the Third Quarter Market Report reflected the median closed
price for single-family homes in the $1 million and above price category
decreased 2 percent from $1,350,000 in the Third Quarter of 2014 to
$1,325,000 in the Third Quarter of 2015, which may have spurred sales.
Hughes remarked that, "Historically, we see an upswing in
the number of homes that go up for sale in October in anticipation of
seasonal buyers. It will be interesting to see how this plays out because it
appears the increased demand for single-family homes from full-time residents
has the potential to keep absorbing our existing inventory."
To ensure your next sale or purchase in the Naples area is a
success, contact a REALTOR® on Naplesarea.com to guide you through the
process.
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 5,000 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.
To view the entire report, visit www.NaplesArea.com
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Friday, October 30, 2015
Inland Home Sales Activity Outpaced Shoreline During Third Quarter
Friday, August 21, 2015
Fla.’s single-family home sales rose 21.8% in July
NAR's national home sales
Total existing home sales up 2% despite stubbornly low inventory"Homebuyers and sellers are benefiting from the positive momentum of Florida's housing market," says 2015 Florida Realtors President Andrew Barbar, a broker with Keller Williams Realty Services in Boca Raton. "July's completed or closed sales for single-family homes and townhouse-condo properties both showed double-digit gains over the previous year. Meanwhile median prices keep steadily rising: July marked the 44th consecutive month that median sales prices increased year-over-year for both single-family homes and townhouse-condo properties.
Statewide, new pending sales for single-family homes in July rose 6.5 percent year-over-year, while new townhouse-condo pending sales rose 3.8 percent."
The statewide median sales price for single-family existing homes last month was $199,900, up 8.1 percent from the previous year, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in July was $150,000, up 9.1 percent over the year-ago figure. 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 June 2015 was $237,700, up 6.6 percent from the previous year; the national median existing condo price was $226,500. In California, the statewide median sales price for single-family existing homes in June was $489,560; in Massachusetts, it was $364,900; in Maryland, it was $281,031; and in New York, it was $237,301.
Looking at Florida's townhouse-condo market, statewide closed sales rose last month with a total of 10,235, up 13.9 percent compared to July 2014.
The closed sales data reflected fewer short sales in July: Short sales for townhouse-condo properties declined 39.3 percent while short sales for single-family homes dropped 31.2 percent. Closed sales typically occur 30 to 90 days after sales contracts are written.
"The Florida real estate market continues to boom along, fueled by job growth, immigration and fear of higher interest rates," says Florida Realtors Chief Economist Dr. John Tuccillo. "Tight inventories are beginning to get worrisome, even in price tiers where they had not been a problem. But we're not in any great danger of a runaway market because mortgages are still difficult to get for most households, keeping demand down."
Inventory continues to tighten, with a 4.5-months' supply in July for single-family homes and a 5.3-months' supply for townhouse-condo properties. Most analysts consider a 6-month supply of inventory as the benchmark for a balanced market between buyers and sellers.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.05 percent in July 2015, down from the 4.13 percent average recorded during the same month a year earlier.
Friday, July 17, 2015
2Q Report Indicates Housing Market is On Pace to Be a Great Year
Naples, Fla. (July 17,
2015) - According to the Second Quarter 2015 Market Report released by the
Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales
within Collier County (excluding Marco Island), 60 percent of the market
experienced inventory growth, and overall sales activity remained on pace with
activity experienced in the second quarter of 2014. The report also indicated a
9 percent increase in pending sales (quarter over quarter) for homes priced
above $300,000. These factors and other statistics in the 2Q 2015 Market Report
have led broker analysts to conclude another great year is very likely.
"In this quarter last year, 44
percent of pending sales [homes under contract] were for homes in the price
category over $300,000," said Brett Brown, a Broker/Salesperson for
Premier Sotheby's International Realty. "The current report shows us that
the number of pending sales has increased to 53 percent of the market."
Brown pointed out that from 2010 to
2012 80 percent of all pending sales were composed of homes under $300,000. But
second quarter reports for 2014 and 2015 identify a shift took place in pending
sales activity to homes at higher price points within the market. And while
inventory in the under $300,000 price category decreased 24 percent in the 2Q
of 2015 (the same rate as in the 1Q of 2015); this price segment no longer
makes up the majority of the market's inventory.
Broker analysts contend that the
market was quite different 10 years ago with a lot of flipping and loose
financing going on. But the consumer and industry setting is different today.
The 2Q 2015 Market Report revealed where the differences occurred like median
closed price, where prices for homes between $300,000 and $2 million leveled
out increasing or decreasing 0 to 2 percent. Other differences revealed in the
2Q Report are a gradual increase in financed homes to 38.3 percent of the
market in June 2015, and a non-traditional market (short sales and
foreclosures) that is dwindling at just 7 percent of the market.
"Prior to 2014, prices in all
segments were going up," said Tom Bringardner, Jr., President/CEO of
Premier Commercial. "But a side-by-side comparison of overall activity for
the first six months of last year to this year signifies a different climate
where the market has reached stabilization."
According to the 2Q 2015 Market
Report, the Naples area experienced a 14 percent increase in overall median
closed price from $255,000 in the 12-months ending 2Q of 2014 to $290,000 in
the 12-months ending 2Q of 2015. Yet this increase was driven by increases at
both ends of the market spectrum during this time period; i.e., an 11 percent
increase in homes under $300,000, and a 15 percent increase in homes $2M and
above. Incidentally, the median closed price for homes in price categories over
$300,000 and under $2M decreased 1 percent.
Pockets of market highs and lows
will continue to appear in the area, as demand and location continue to be
major market influencers. For example, the report showed an 83 percent increase
in inventory for condominiums in the $2M and above price category from 29 units
in the 2Q of 2014 to 53 units in the 2Q of 2015, and a 23 percent decrease in
condominium inventory in the Naples Beach area from 476 units in the 2Q of 2014
to 368 units in the 2Q of 2015.
Inventory for single-family homes
continued to rise in the 2Q of 2015 with a 9 percent increase from 1,964
single-family homes in the 2Q of 2014 to 2,133 single-family homes in the 2Q of
2015. Whereas the condominium market saw an 11 percent decrease in inventory
for 2Q 2015 from 1,759 condominiums in the 2Q 2014 to 1,565 condominiums in the
2Q of 2015.
The NABOR® 2Q 2015 Market 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® 2Q 2015 sales statistics are presented in
chart format, including these overall (single-family and condominium)
findings:
- Overall pending sales decreased 4
percent from 2,949 in the 2Q of 2014 to 2,843 in the 2Q of 2015.
- Overall closed sales remained flat
with no increase or decrease reported in the 2Q of 2015.
- Closed sales for condominiums in
the $300,000 to $500,000 price category increased 38 percent from 682 in
the 2Q of 2014 to 938 in the 2Q of 2015.
- Overall median closed price
increased 14 percent from $255,000 in the 12-months ending 2Q of 2014 to
$290,000 in the 12-months ending 2Q of 2015.
- Overall inventory decreased 1
percent from 3,723 homes in the 2Q of 2014 to 3,698 homes in the 2Q of
2015.
- Overall inventory for homes in the
under $300,000 price category decreased 24 percent from 1,366 homes in the
2Q of 2014 to 1,036 homes in the 2Q of 2015.
- Inventory for single-family homes
in the $500,000 to $1M price category increased 32 percent from 456
single-family homes in the 2Q of 2014 to 604 single-family homes in the 2Q
of 2015.
- Average days on market decreased 20
percent from 94 days in the 2Q of 2014 to 75 days in the 2Q of
2015.
The NABOR® June 2015 Market Report
was also released and reflected these overall (single-family and condominium)
findings:
- Overall pending sales increased 5
percent from 840 homes in June 2014 to 882 homes in June 2015.
- Overall closed sales remained flat with
no increase or decrease reported in the 12-months ending June 2015.
- Overall median closed price
increased 14 percent from $255,000 in the 12-months ending June 2014 to
$290,000 in the 12-months ending June 2015.
- Overall inventory decreased 1
percent from 3,723 homes in June 2014 to 3,698 homes in June 2015.
- Average Days on market decreased 22
percent from 94 days in June 2014 to 73 days in June 2015.
"Overall inventory is almost
the same number as it was this time last year. That is amazing when you consider
the fact that we have had 9,850 closings over the last twelve months. Overall,
this tells you that the properties are being listed almost as fast as we are
selling them. Certainly we would like to see more listings come on the market
than the 3,698 properties that are currently listed," said Mike Hughes
NABOR President, Vice President and General Manager of Downing-Frye Realty,
Inc. "If there is a perception that inventory is dramatically shrinking,
the 2Q Market Report shows us that this observation is unfounded."
"I saw a lot more locals
selling and buying homes in the second quarter of 2015," said Steve
Barker, Advising Broker for Equity Realty, who added that market conditions are
right for this type of transition. "People are no longer underwater in
their homes and are confident it's a good time to sell and move into a new
community."
Saturday, May 16, 2015
Millennials getting ready to buy in next 2-4 years ( 50 Millions purchases)
The report finds that contrary to popular belief, most millennials aren't settling into downtowns of large cities; instead, they're living in less centrally located, more affordable neighborhoods, "making ends meet with jobs for which many feel overqualified and living with parents or roommates to save money," according to the report. "Still, despite their current lifestyle constraints, most are optimistic about the odds for improving their housing and financial circumstances in the years ahead."
There are almost 79 million millennials. It's the largest generation in U.S. history, even larger than the Baby Boomers.
The survey found that many millennials still rent, paying a median rent of $925, with the majority living in city neighborhoods or in the suburbs, and only 13 percent living in or near downtowns. Nearly a quarter of those surveyed are still living at home with their parents or other family members.
Millennials say they prefer to live in neighborhoods with urban characteristics, such as those that feature walkability, transportation alternatives, and easy access to shopping and entertainment.
Millennials "want to live where it's easy to have fun with friends and family, whether in the suburbs or closer in," says Leanne Lachman, president of Lachman Associates LLC in New York City, the report's author. "Their desire for an urban lifestyle suggests that the current trend of urbanizing suburbs will present lucrative opportunities for the development community for decades to come. This is a generation that places a high value on work-life balance and flexibility. They will switch housing and jobs as frequently as necessary to improve their quality of life."
The survey found that 45 percent of millennial respondents moved at least twice in the past three years – "which reflects the high mobility of the generation," the report notes.
About 26 percent of the millennials surveyed currently own homes, with the majority of those falling between the ages of 31 to 36 years of age. Of those who do own, less than half (46 percent) say they purchased a home because they believe that owning is a good long-term investment; 41 percent said it offers stability; and 40 percent said they wanted more privacy and space.
Sixty-two percent say they're very satisfied with homeownership, and 64 percent listed the stability and safety of their neighborhood as the most positive feature of their home's location.
Saturday, April 25, 2015
Fla.’s housing market continues growth in March
Closed sales of existing single-family homes statewide totaled 24,811 last month, up 24.6 percent in a year-to-year comparison.
"Positive growth in Florida's housing market is encouraging sellers and buyers," says 2015 Florida Realtors President Andrew Barbar, a broker with Keller Williams Realty Services in Boca Raton. "Inventories for existing single-family homes and for townhouse-condo properties remain in a stable range with a 5 to 6 months' supply.
"On the buyers' side, new pending sales for existing single-family homes in March increased 12.9 percent year-over-year, while pending sales for townhouse-condo units increased 1.4 percent. On the sellers' side, new listings for single-family homes rose 8.6 percent year-over-year and new townhouse-condo listings rose 5.5 percent."
March marked the 40th consecutive month that statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year.
"Strong price growth has helped many Florida homeowners rebuild home equity, but it can also pose a challenge for first-time buyers hoping to close on their dream home before rates rise," Barbar adds.
The statewide median sales price for single-family existing homes last month was $190,000, up 9.2 percent from the previous year, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in March was $152,000, up 8.6 percent over the year-ago figure. 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 February 2015 was $204,200, up 8.2 percent from the previous year; the national median existing condo price was $190,200.
Looking at Florida's townhouse-condo market, statewide closed sales totaled 11,083 last month, up 13.7 percent compared to March 2014.
The closed sales data reflected fewer short sales in March: Short sales for townhouse-condo properties declined 36.9 percent while short sales for single-family homes dropped 30.5 percent. Closed sales typically occur 30 to 90 days after sales contracts are written.
"The housing market continues to thrive on the growing Florida economy – jobs are up and so are sales," says Florida Realtors Chief Economist Dr. John Tuccillo. "The continued fall of cash sales as a percentage of total sales suggests that demand is increasingly coming from household owner-occupants, a trend that bodes well for market stability. Days on the market are down, as is inventory, particularly at the low end of the market. This points to a potential sweet spot for homebuilders.
"If there is a concern in the market, it lies in the upper-middle price ranges, where inventories and time on the market are up even though sales growth is strong," adds Tuccillo. "This will bear watching over time."
Inventory was at a 5.1-months' supply in March for single-family homes and at a 6.1-months' supply for townhouse-condo properties, according to Florida Realtors.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.77 percent in March 2015, down from the 4.34 percent average recorded during the same month a year earlier.
To see the full statewide housing activity reports, go to Florida Realtors' website under "Research." Association members (login required) also have access to local data specific to their market.
Friday, April 17, 2015
Buyers Shift Focus to Condominium Market
Naples, Fla. (April 17, 2015) - Overall
activity in the Naples area real estate market across all price categories
remains steady, according to the First Quarter 2015 Market Report released by
the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales
within Collier County (excluding Marco Island). Most notable in the report
was the $300,000 - $500,000 price category for condominiums in which the
overall closed and pending sales increased by double digits in the first
quarter of 2015. Statistics show a recent shift in buyer focus from
single-family homes to condominiums.
Broker analysts reviewing the
First Quarter 2015 Market Report agree that a new trend may be emerging, as
the report showed condominiums outperforming single-family home sales. As
such, these analysts predict condominiums will see continued rise in activity
moving into summer.
"Pending and closed sales
in the mid-level price range [$300K - $500K] for both March and first quarter
outperformed all other areas of the market," said Phil Wood, President
& CEO of John R. Wood Properties. "Perhaps this is reflective
of vacation home buyers who want a place to escape the winter weather. Condos
are the easiest way for them to do so, since exterior maintenance issues are
handled by the associations."
"The difference in
performance between the single-family home market and condo market in the
$300,000 -$500,000 price category for the first quarter is quite
impressive," said Steve Barker, Advising Broker for Equity Realty.
"Pending sales for condominiums in the $300,000 - $500,000 price
category increased 53 percent. Yet, while the single family home market is
very good, pending sales for single-family homes in this same price category
increased only half that, at 26 percent."
Supporting analysis presented
by Cindy Carroll SRA, with the real estate appraisal and consultancy firm
Carroll & Carroll, Inc., at NABOR®'s Economic Summit earlier this month,
several brokers including Kathy Zorn, Bill Coffey and Mike Hughes pointed out
that the First Quarter 2015 Market Report indicated location as a big factor
in home sales activity.
Hughes remarked that, "the
overall median closed price in all geo-specific areas of the county increased
double digits compared to the same quarter last year." Zorn added,
"in both the Central Naples and South Naples areas, the median closed
price rose 17 percent compared to the first quarter of 2014."
Overall inventory for the
$300,000 - $500,000 price category in the first quarter of 2015 increased 14
percent from 934 homes in the first quarter of 2014 to 1,061 homes in the
first quarter of 2015. Only the inventory in the over $2 million price
category had a larger increase - 18 percent - expanding from 400 homes in the
first quarter of 2014 to 471 homes in the first quarter of 2015.
"The number of people
paying cash for their homes remains strong," said Barker, who added,
"a stunning 73 percent of all home sales in the first quarter of 2015
were cash-only purchases. Strict lending standards combined with low inventory
continue to give the advantage to cash buyers in this housing market."
"We also see that in
March, traditional sales dominated the market at 91 percent," said Bill
Poteet, owner and broker at Poteet Properties. "There were 921
traditional sales and only 19 non-traditional [short sale and/or foreclosed]
sales." He went on to note that March's market performance is typically
a leading indicator of the trend we can expect going in to the summer.
The NABOR® 1Q 2015 Market
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® 1Q 2015 sales statistics are
presented in chart format, including these overall (single-family and
condominium) findings:
The NABOR® March 2015 Market
Report was also released and reflected these overall (single-family and
condominium) findings:
"The statistics show that
the lower the price category, the faster the home will sell and the higher
the price category, the longer it takes to sell," said Brenda Fioretti,
Managing Broker at Berkshire Hathaway HomeServices Florida Realty. "For
example, homes in the $0 - $300,000 price range sold in an average of 64 days
in the first quarter of 2015, while homes in the over $2 million price
category stayed on the market 152 days before they sold."
The First Quarter 2015 and
March 2015 Market Reports reflect exactly what all three economic experts predicted
at NABOR®'s 4th annual Economic Summit: that the real estate
industry in Florida is very good and will continue to stay very good through
2015.
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 5,000 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.
To view the entire report, visit www.NaplesArea.com
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Saturday, April 11, 2015
Owning cheaper than renting in 76% of U.S. metros
IRVINE, Calif. – April 9, 2015 – RealtyTrac released its Residential Rental Property Analysis the first quarter of 2015 and found that the monthly house payment (median-priced three-bedroom home) is more affordable than the monthly fair market in 76 percent of U.S. counties included in the analysis.
The report also ranked the markets with the best – and worst – potential returns on residential rental properties from a real estate investor perspective, along with the most affordable – and least affordable – markets for renting from a renter perspective.
The analysis included 461 U.S. counties with a population of at least 100,000 and sufficient home price, income and rental data.
On average, fair market rents (set by the U.S. Department of Housing and Urban Development) were 28 percent of estimated median household income; monthly house payments on a median-priced home (10 percent downpayment with property taxes, home insurance and mortgage insurance included) were 24 percent of the estimated median income.
"From a purely affordability standpoint, renters who have saved enough to make a 10 percent downpayment are better off buying in the majority of markets across the country," says Daren Blomquist, vice president at RealtyTrac.
However, Blomquist says "factors other than affordability are keeping many renters from becoming buyers – a reality that means real estate investors buying residential properties as rentals still have the opportunity to make strong returns in many markets across the country." He also notes that the data RealtyTrac analyzed are not the only variables in a buy-versus-rent decision.
Florida
Only two metro areas and cities in Florida ranked in any of RealtyTrac's top 10 or bottom 10 lists for renting or investing. Miami-Dade (including Fort Lauderdale and Pompano Beach) ranked No. 4 nationwide in the "least affordable rental markets" list. The analysis finds it takes 45 percent of an owner's median income to rent, while it takes only 34 percent of median income to buy a home.
For real estate investors, only Pasco County made the top 10 list for annual investment return. According to RealtyTrac, the annual gross rental yield for a cash buyer in February 2015 at 19.20 percent compared to the nation's top investment city, Baltimore, Maryland, which saw 24.82 percent returns.
Nation
Among the 56 counties with most favorable conditions for buying, the most affordable for buying was Bay County, Michigan in the Bay City metro area, where it takes only 11 percent of the area's median income to make house payments on a median priced-home.
The top U.S. market for renting is Delaware County, Ohio, in the Columbus metro area, where it takes only 14 percent of the area's median income.
While the Miami-Dade area ranked fourth for high market rents, Bronx County, New York, led the list. In the Bronx, a median-income home pays 69 percent monthly in rent. However, the cost of ownership is so high that renting remains the preferred option there.
Investment returns
The average potential annual gross rental yield for homes purchased in February 2015 was 9.34 percent for all metro areas, calculated by annualizing the rental income and dividing that amount into the purchase price of the property.
Markets with the highest potential annual gross rental yields for homes purchased in February 2015 were:
The report also ranked the markets with the best – and worst – potential returns on residential rental properties from a real estate investor perspective, along with the most affordable – and least affordable – markets for renting from a renter perspective.
The analysis included 461 U.S. counties with a population of at least 100,000 and sufficient home price, income and rental data.
On average, fair market rents (set by the U.S. Department of Housing and Urban Development) were 28 percent of estimated median household income; monthly house payments on a median-priced home (10 percent downpayment with property taxes, home insurance and mortgage insurance included) were 24 percent of the estimated median income.
"From a purely affordability standpoint, renters who have saved enough to make a 10 percent downpayment are better off buying in the majority of markets across the country," says Daren Blomquist, vice president at RealtyTrac.
However, Blomquist says "factors other than affordability are keeping many renters from becoming buyers – a reality that means real estate investors buying residential properties as rentals still have the opportunity to make strong returns in many markets across the country." He also notes that the data RealtyTrac analyzed are not the only variables in a buy-versus-rent decision.
Florida
Only two metro areas and cities in Florida ranked in any of RealtyTrac's top 10 or bottom 10 lists for renting or investing. Miami-Dade (including Fort Lauderdale and Pompano Beach) ranked No. 4 nationwide in the "least affordable rental markets" list. The analysis finds it takes 45 percent of an owner's median income to rent, while it takes only 34 percent of median income to buy a home.
For real estate investors, only Pasco County made the top 10 list for annual investment return. According to RealtyTrac, the annual gross rental yield for a cash buyer in February 2015 at 19.20 percent compared to the nation's top investment city, Baltimore, Maryland, which saw 24.82 percent returns.
Nation
Among the 56 counties with most favorable conditions for buying, the most affordable for buying was Bay County, Michigan in the Bay City metro area, where it takes only 11 percent of the area's median income to make house payments on a median priced-home.
The top U.S. market for renting is Delaware County, Ohio, in the Columbus metro area, where it takes only 14 percent of the area's median income.
While the Miami-Dade area ranked fourth for high market rents, Bronx County, New York, led the list. In the Bronx, a median-income home pays 69 percent monthly in rent. However, the cost of ownership is so high that renting remains the preferred option there.
Investment returns
The average potential annual gross rental yield for homes purchased in February 2015 was 9.34 percent for all metro areas, calculated by annualizing the rental income and dividing that amount into the purchase price of the property.
Markets with the highest potential annual gross rental yields for homes purchased in February 2015 were:
- Baltimore City, Maryland (24.82 percent),
- Clayton County, Georgia (24.26 percent),
- Wayne County, Michigan (21.08 percent)
- Pasco County, Florida (19.20 percent)
- Trumbull County, Ohio (18.36 percent)
- New York County/Manhattan, New York (2.34 percent)
- San Francisco County, California (3.20 percent)
- Kings County/Brooklyn, New York (3.63 percent)
- Marin County, California (3.84 percent)
- Williamson County, Tennessee (3.89 percent)
- Douglas County, Oregon (potential returns up 119 basis points from a year ago)
- Linn County, Iowa (109 basis point increase)
- Henderson County, North Carolina (109 basis point increase)
- Kendall County, Illinois (89 basis point increase)
- Sussex County, Delaware (80 basis point increase).
- Cook County, Illinois (43 basis points increase)
- King County, Washington (12 basis point increase)
- Long Island, New York (49 basis point increase)
- Nassau, New York (24 basis point increase)
- Wake County, North Carolina (30 basis point increase)
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