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Florida Market Improving

Improving markets surge 60% in Dec.

WASHINGTON – Dec. 7, 2012 – The number of housing markets considered “improving” in the National Association of Home Builders (NAHB)/First American Improving Markets Index (IMI) surged by 76 – to a total of 201 metros – in December. The number of states (plus the District of Columbia) represented by at least one metro increased from 38 to 44.

For the index to consider a city “improving” for the index, it must have shown growth from its respective trough in housing permits, employment and house prices for at least six consecutive months.

While the list grew by 76, a total of 84 new metros were added. The number was offset by eight cities that dropped off the list, though none were in Florida.

“The big gain in improving markets this December indicates that key measures of housing and economic strength have now been holding steady or improving in metros across the country for six months or more, which is an important signal of stability amidst the slowly emerging recovery,” says NAHB Chairman Barry Rutenberg, a home builder from Gainesville, Fla. “The main thing that’s limiting progress … is difficulty that potential buyers continue to experience with overly tight mortgage qualifying standards.”

The index has improved for four consecutive months, and over half the cities are now “improving.”

“In general, we expect the overall housing recovery to continue expanding in 2013,” says NAHB Chief Economist David Crowe. “However, that is absent a major policy change of the kind that some policymakers have been discussing with regard to the mortgage interest deduction.”

The IMI measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas (MSAs). The three indicators are employment growth from the Bureau of Labor Statistics, housing price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau. An MSA must improve in all three measures before it’s included on the improving markets list.

A complete list of all 201 metropolitan areas currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in December, is available at www.nahb.org./imi.

© 2012 Florida Realtors®

(Source: floridarealtors.org)

Bank Owned Homes a Bargain? Think Again.

Banked-owned sales no longer a bargain

SEATTLE – Nov. 9, 2012 – While “foreclosure” remains a buzzword for bargain seekers, a study finds that the actual discount off a “normal” price is far less than it used to be.

According to a study by Zillow, the national average discount of a real estate owned (REO) property compared to a non-REO was only 7.7 percent in September – a sizable change from the 23.7 percent average discount that peaked nationally in August 2009 and less than the average 9.1 percent discount one year earlier.

In some areas of Florida, REOs aren’t a bargain at all. Zillow included three Florida metro areas in its analysis and claims an average REO savings of only 2.9 percent in the Miami-Fort Lauderdale market – a significant drop from the peak of 22.7 percent in August 2008 and a notable decline year-to-year; in September 2011, a South Florida REO sold for 6.8 percent less.

In Tampa, a REO in September 2012 sold for 9 percent less than a non-REO sale, down slightly from the 9.6 percent discount one year earlier, but significantly lower than the peak 29.1 percent discount recorded in November 2008.

In Orlando, the REO discount of 4.6 percent rose slightly year-to-year; in September 2011, it was 2 percent. However, both numbers are down from the peak 24.4 percent discount for a REO recorded in January 2010.

In two cities – Phoenix and Las Vegas – REOs no longer come with a discount, with sale prices roughly equal to other home sales.

“The smallest foreclosure discount is found in places where competition for homes” is high, says Zillow Chief Economist Dr. Stan Humphries. “People are willing to pay the same amount for a foreclosure re-sale that they would for a non-distressed home simply to take advantage of historic affordability.”   

Year-over-year foreclosure discounts fell in roughly three-quarters (76.9 percent) of metro areas analyzed, and all metros are down from their peak. Nationwide, foreclosure discounts reached their height in 2008 and 2009, and in some areas peaked at more than 30 percent.

© 2012 Florida Realtors®

(Source: floridarealtors.org)

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Real Estate Investments Florida

U.K. buyers must act quickly to secure Fla. property bargains

ORLANDO, Fla. – Oct. 10, 2012- Property prices are currently low in Florida, making it the best time to buy in years, but could soon be on the rise.

“Now is the time to buy in Florida. We’re starting to see the beginning of the shift from a buyer’s to a seller’s market,” says Dr. John Tuccillo, chief economist for Florida Realtors®. “Sales numbers and home prices have both been rising, and we expect the trend to continue as more international buyers take note of the opportunities here, and the market’s recovery gains traction. There are some real residential bargains to be found for British buyers.”

For United Kingdom buyers, bargain prices look even better thanks to the best dollar-pound exchange rate in six months.

Florida appeals to international buyers for its subtropical weather, beaches and attractions, but many of these buyers also see investment potential, particularly within the rental market. Some would-be landlords enter the market even when they don’t plan to vacation in their house, seeking out Florida property that already has tenants.

Florida sales to international buyers accounted for over a quarter of all U.S. international property market sales last year, according to the National Association of Realtors®, and Florida’s popularity is still rising among international investors. Florida Realtors recent research revealed buyers from Canada, Brazil and Venezuela are now joining British buyers in taking advantage of Florida’s property bargains.

Florida Realtors research finds that the median price for a single-family Florida home is £91,000, with Orlando the most popular destination for Brits. In Orlando a four-bedroom home with private pool and garden can be snapped up for around £125,000 – 75 percent of a similar-sized home in the U.K.

“Buyers who have been waiting on the sidelines should see this as a sign to jump in before the market escapes them again,” says Florida Realtors® President Summer Greene, regional manager of Better Homes and Gardens Real Estate Florida 1st in Fort Lauderdale. “We understand this is a big step, so to help international buyers understand Florida’s potential, we’ve put together a few tips and tricks for Brits looking to buy.”

Tips and facts on buying Florida property

• Visit fl.living.net to contact a Realtor in Florida and get more information.

• Florida’s property purchase system is different than the U.K.’s and can be confusing. Appropriate professional guidance is essential.

• There are no restrictions on foreign purchases of U.S. real estate, and international buyers can apply for conventional mortgage financing.

• When calculating how to buy a Florida home, include escrow fees and closing costs – part of the purchase costs – in calculations.

• Do your homework and consult several currency exchange companies in the U.S. for the best exchange rate, which can save thousands.

• If you choose to rent the property, note that Florida is one of the few U.S. states with no state income tax.

• Understand the homeowner taxes and U.S. tax process, which can be complex and may involve payments to at least four different levels of government: local, regional, state and federal. A Realtor can help explain this.

• U.K./U.S. visa regulations allow international visitors to stay up to three months at one time without getting an alternative visa. Arrange passports, visa and residency status before travelling to the U.S.

Representatives from Florida Realtors, including Chief Economist Dr. John Tuccillo, will be speaking at the Property Investor Show in London on Oct. 11-12, 2012, at the ExCeL London Exhibition and Convention Centre.

© 2012 Florida Realtors®

(Source: floridarealtors.org)

Trulia Vs Zillow

Study: Trulia, Zillow less effective than Realtors

SEATTLE – Oct. 4, 2012 – The WAV Group, an independent real estate industry research analyst, studied 33 zip codes in 11 U.S. markets to analyze the accuracy of website listing services.

According to the study funded by Redfin, online listing services such as Trulia and Zillow didn’t have the same accuracy as broker-owned websites, in large part because licensed agents have direct access to a local Multiple Listing Service (MLS).

According to the WAV Group release, “local real estate brokerage websites give consumers the most complete, accurate and timely information about homes for sale.”

The study evaluated sites from three local real estate brokerages that help consumers buy and sell homes. It compared those brokerage’s listing search results to two national portals, Trulia and Zillow.

In the markets analyzed, the study concluded:

• Local real estate brokerage sites display 100 percent of agent-listed homes for sale compared to about 80 percent on the national sites.
• Local real estate brokerage sites show newly listed homes for sale seven to nine days earlier than national portals.
• Local real estate brokerage sites almost never show a home listing as active after it has been sold; about 36 percent of listings that appear as active on national portals are no longer for sale.
• The WAV Group, a national consultancy specializing in real estate technology, conducted the study. Independent analysts verified the study data, record by record.

Redfin, a technology-powered broker with more than $5 billion in home sales, sponsored the study. Listing data from the websites of Long & Foster, one of the largest independent real estate brokerages in the U.S. and Windermere, the largest regional real estate brokerage in the Western U.S., was also included in the study.

“We analyzed … more than 6,000 listings in 33 zip codes in 11 markets (and compared) the data on various websites against 14 local Multiple Listing Services,” says WAV Group CEO Victor Lund. “The findings are clear: real estate brokerage websites showed by far the most homes for sale, recognized which homes were no longer for sale, and displayed new listings much earlier.”

According to WAV Group, the brokers’ advantage comes from direct access to local real estate databases. Only real estate brokers are members of a local MLS. In contrast, national portals usually rely on real estate agents or brokers to re-post MLS listings, or the portals aggregate data from real estate information syndicators.

Since syndicators wait until an agent updates a listing, the full results can be inaccurate. With a broker’s MLS-based service, most listings are updated in real time, typically every 15 to 30 minutes.

According to the study, it took a median of nine days for a listing to appear on Trulia or Zillow after it appeared on a real estate broker’s website. Homes, once sold, also appeared to be active listings for a while on Trulia and Zillow.

Markets included in the study: Boston, Chicago, Denver, Los Angeles, Philadelphia, Phoenix, Portland, San Diego, San Francisco, Seattle and Washington, D.C.

© 2012 Florida Realtors®

(Source: floridarealtors.org)

Florida Unemployment

Economists: Fla. to add 905,500 jobs by 2018

TALLAHASSEE, Fla. – Oct. 3, 2012 – If an increase in jobs forms the foundation for a full housing recovery, Florida is on track for a resurgence.

The recent Florida Economic Estimating Conference, a collaborative event featuring the state’s top public sector economists, projected that Florida is expected to create more than 900,000 new jobs by 2018. The Estimating Conference meets three times a year to forecast trends for Florida’s economy.

In fiscal 2010/2011, the economists see 7,232,500 nonagricultural jobs in the state. By 2017/2018, that’s projected to rise to 8,138,000 – a 905,500 jump in employment.

The economists pointed to other positive signs for the Florida economy, including a stronger outlook for housing.

“In addition to the positive job creation forecast, Florida is currently experiencing increases in job growth, housing starts, median home prices, tax revenues and consumer confidence,” the conference said in a release. “Additionally, in August, Florida was recognized for the second highest job creation total in the nation, saw its largest over-the-month job increase since April 2011 and continues to lead all other states in the nation in the drop in its unemployment rate since December 2010.”

For more information, including resources for employers and job seekers, visit www.floridajobs.org.

© 2012 Florida Realtors®

(Source: floridarealtors.org)

Amendment 4 Florida

Amendment 4 would revive housing market

TALLAHASSEE, Fla. – Sept. 28, 2012 – Leticia Adams, director of Infrastructure and Governance Policy for the Florida Chamber of Commerce, wrote the following editorial that appeared in today’s Sunshine State News:

When Floridians head to the polls in November, they should vote yes on Amendment 4, giving homeowners and small businesses across the Sunshine State a chance to rein in property tax hikes.

Florida’s economy has traditionally been dependent on a strong housing market, but this important sector was impacted hard by the Great Recession that the Sunshine State is still recovering from. Florida voters can give this core component of our economy a needed boost and lead the way to new growth and opportunities by supporting Amendment 4 on the November ballot.

Amendment 4 will untie the Legislature’s hands so it can put an end to the unfair state “recapture” law. Under the recapture law, property taxes can increase on homes even as their property values plummet. Asking Floridians to pay more taxes on homes that are declining in value is simply wrong and Amendment 4 will let the Legislature end this injustice.

Amendment 4 reduces the cap on assessment hikes for non-homestead properties from 10 percent to 5 percent each year. This will be a boon to small businesses, which are the backbone of Florida’s economy. Small businesses create four out of five new jobs in our state and Amendment 4 will help them continue to remain an essential part of our economy. Amendment 4 will give small businesses across Florida needed tax savings that can be used to reinvest in our communities by creating new jobs, lowering prices for consumers, and increasing salaries for employees.

By lowering the cap on assessment increases, Amendment 4 will help recruit more companies to invest in Florida. These new investments will provide more economic growth and new jobs. Florida TaxWatch, a nonpartisan watchdog that was instrumental in launching Amendment 4, found that it will increase Florida’s GDP by almost $929 million and create more than 19,000 new jobs in the Sunshine State over a 10-year period.

Studies from Florida TaxWatch show that Amendment 4 will lead to an increase in new home sales across the state. Some estimates find that Amendment 4 could generate as many as 384,000 new home sales over a 10-year period. In addition to the tremendous boost to Florida’s struggling housing market, Amendment 4 will help lower the number of abandoned foreclosures that drag down property values in neighborhoods all across the state, and add more cash to the pockets of Floridians – more than $5.3 billion.

While housing has traditionally been one of the cornerstones of Florida’s economy, now it is a major factor in why our economy continues to lag behind the rest of the nation. Amendment 4 will help move the housing market back on track leading to more sales, increased property values and personal wealth, and more jobs. By supporting Amendment 4, voters will help lead Florida to a growing and vibrant economy and continue to make the Sunshine State a great place to live and do business.

© 2012 Florida Realtors®

(Source: floridarealtors.org)

Mortgage Rate Loan

Rate on 30-year mortgage falls to record 3.49%

WASHINGTON – Sept. 21, 2012 – The average U.S. rate on the 30-year fixed mortgage touched its record low this week and the rate on 15-year mortgage hit a new record.

The declines followed the Federal Reserve announcement last week that it would buy bonds to try to push mortgage rates lower and stimulate the housing market.

Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan declined to 3.49 percent from 3.55 percent last week. That matched the lowest rate since long-term mortgages began in the 1950s.

The average on the 15-year fixed mortgage, a popular refinancing option, plunged to 2.77 percent, a new record. That’s down from 2.85 percent last week and the previous record low of 2.80 percent.

Cheap mortgages have helped drive a modest housing recovery this year. And the Fed wants to keep those rates low for the foreseeable future as a way to stimulate the economy.

Last week the Fed said it plans to spend $40 billion a month to buy mortgage bonds for as long as it thinks necessary to make home buying more affordable.

Mark Vitner, senior economist at Wells Fargo, said the stimulus likely helped lower mortgage rates this week. And the Fed’s bond purchases will probably push rates down even further over the next six to nine months, Vitner suggested.

“Mortgage rates are going to be lower than they would otherwise,” he said. “Housing looks like it’s going to provide a significant lift to the economy over the next year.”

The market is already benefiting from the lowest rates on record.

Sales of both previously occupied and newly built homes are up from last year. Home prices are rising more consistently. And builders are more confident in the market and are starting to build more homes.

The broader economy is also likely to benefit from a revival in the housing market. When home prices rise, Americans typically feel wealthier and spend more – a point made by Fed Chairman Ben Bernanke when he addressed the new stimulus measures last week.

Still, the housing market has a long way back. Sales and construction rates remain below healthy levels.

And some economists question whether lower rates will make much of a difference. The average rate on the 30-year fixed mortgage has been below 4 percent since early December. So most people who can qualify have likely already taken advantage of the lower rates.

Many people who would like to refinance or buy a home can’t because they fail to meet stricter lending requirements or don’t have enough money to make a downpayment.

To calculate average rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week.

The average does not include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for 30-year loans was 0.6 point, unchanged from last week. The fee for 15-year loans also held steady at 0.6 point.

The average rate on one-year adjustable-rate mortgages was unchanged at 2.61 percent. The fee for one-year adjustable rate loans was steady at 0.4 point.

The average rate on five-year adjustable-rate mortgages rose to 2.76 percent from 2.72 percent. The fee was unchanged at 0.6 point.
 Copyright © 2012 The Associated Press, Marcy Gordon, AP business writer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Florida Housing Market 2012

Fla.’s housing market continues positive trend in August

ORLANDO, Fla. – Sept. 19, 2012 – Florida’s housing market had more closed sales, more pending sales, higher median prices and a reduced inventory of homes for sale in August, according to the latest housing data released by Florida Realtors®.

“Florida’s housing marketing continues its momentum,” said 2012 Florida Realtors President Summer Greene, regional manager of Better Homes and Gardens Real Estate Florida 1st in Fort Lauderdale. “Buyers who have been waiting on the sidelines should see this as a sign to jump in before the market escapes them again. Sellers who have been hesitant to sell should put their homes on the market now. Chances are they will entertain multiple offers and be able to take advantage of historically low interest rates to buy their next home. Now our biggest challenge will be appraisals keeping up with the pace of this market.”

Statewide closed sales of existing single-family homes totaled 18,669 in August, up 10.8 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. Closed sales typically occur 30 to 90 days after sales contracts are written.

Meanwhile, pending sales – contracts that are signed by not yet completed or closed – of existing single-family homes last month rose 40.2 percent over the previous August. The statewide median sales price for single-family existing homes in August was $147,000, up 5.8 percent from a year ago.

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in July 2012 was $188,100, up 9.6 percent from the previous year. In California, the statewide median sales price for single-family existing homes in July was $333,860; in Massachusetts, it was $325,000; in Maryland, it was $261,772; and in New York, it was $233,000.

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 continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Looking at Florida’s year-to-year comparison for sales of townhomes/condos, a total of 8,767 units sold statewide last month, up 5.7 percent from those sold in August 2011. The statewide median for townhome-condo properties was $102,980, up 13.2 percent over the previous year. NAR reported the national median existing condo price in July 2012 was $180,700.

Last month, the inventory for single-family homes in August stood at a 5.3-months’ supply; inventory for townhome-condo properties was also at a 5.3-months’ supply, according to Florida Realtors. Industry analysts note that a 5.5-months’ supply represents a market balanced between buyers and sellers.

“Florida’s housing market is still reviving,” said Florida Realtors Chief Economist Dr. John Tuccillo. “Everything that should be going up is going up, and everything that should be going down is going down. After the six years of turmoil that we had, it’s good to see the trends strongly moving in the right direction. We’re hurting for inventory, but it’s possible that the improving conditions will lure more sellers into the market and mitigate the housing inventory crunch.”

The interest rate for a 30-year fixed-rate mortgage averaged 3.60 percent in August 2012, lower than the 4.27 percent averaged during the same month a year earlier, according to Freddie Mac.

To see the full statewide housing activity report, go to Florida Realtors website and click on the Research page; then look under Latest Housing Data, Statewide Residential Activity and get the August report. Or go to Florida Realtors Media Center and download the August 2012 data report PDF under Market Data.

© 2012 Florida Realtors®