Fla. cities tops in nation for home price increases

             Fla. cities tops in nation for home price increases

JACKSONVILLE, Fla. – Feb. 26, 2014 – A report from Black Knight Financial Services (formerly Lender Processing Services) finds that December home values in the U.S. are within 13.9 percent of the peak reached in 2006.

Black Knight’s Home Price Index (HPI) found nationally that home values rose 0.1 percent month-to-month (compared to November 2012 numbers) and 8.4 percent year-to-year. The high point for U.S. home prices was $270,000 in June 2006. In December, the HPI found a median of $232,000.

From Black Knight’s analysis, it appears most U.S. cities saw their biggest price spike last year, and their dramatic price increases have begun to slow to a more balanced level.

Florida, however, seems to buck that trend a bit, with home prices still climbing faster in comparison to other U.S. states and cities.

According to Black Knight, Florida prices rose 0.6 percent month-to-month in December, coming in second to top-ranking New York with a 0.7 percent rise.

However, Florida cities logged eight of the top 10 spots for “Biggest Movers” when comparing metro areas. Only two other U.S. cities even made the list.

Biggest metro area movers month-to-month

1. Miami: 1.2% month-to-month December price increase
2. Sarasota: 0.9%
3. Key West: 0.7%
4. Fort Walton Beach: 0.6%
5. Poughkeepsie, NY: 0.6%
6. Lakeland: 0.6%
7. Port St. Lucie: 0.6%
8. Tulsa, OK: 0.5%
9. Naples: 0.5%
10. Palm Bay: 0.5%

To calculate its HPI, Black Knight says it looks at repeat sales prices and its loan-level databases. It claims the numbers take REO and short-sale price discounts into consideration.

© 2014 Florida Realtors®                        

Fla.’s housing market continues positive trends in Jan. 2014

                                          

Fla.’s housing market continues positive trends in Jan. 2014

NAR: Existing-home sales drop in Jan. but prices continue to rise

ORLANDO, Fla. – Feb. 21, 2014 – Florida’s housing market reported more closed sales, higher median prices, more new listings, fewer days on the market and the continued stabilization of inventory in January, according to the latest housing data released by Florida Realtors®. Closed sales of single-family homes statewide totaled 15,000 last month, up 10.2 percent over the January 2013 figure.

“Price increases are continuing to improve home equity in areas across the state, and combined with still-low interest rates, it’s creating a great opportunity for sellers,” says 2014 Florida Realtors President Sherri Meadows, CEO and team leader, Keller Williams, with market centers in Gainesville, Ocala and the Villages. “We’re seeing homeowners ready to take that next step and list their properties for sale: Statewide, new listings for single-family homes in January rose 13.8 percent year-over-year, while new townhouse-condo listings rose 7.4 percent.

“And here at the start of a new year, January marked 26 consecutive months that we’ve seen increases in statewide median sales prices for both single family homes and town home-condo properties, year-over-year.”

The statewide median sales price for single-family existing homes last month was $162,500, up 12.1 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 January was $131,000, up 17 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 December 2013 was $197,900, up 9.8 percent from the previous year; the national median existing condo price was $198,600. In California, the statewide median sales price for single-family existing homes in December was $438,040; in Massachusetts, it was $320,000; in Maryland, it was $255,183; and in New York, it was $236,875.

Looking at Florida’s townhome-condo market, statewide closed sales totaled 7,377 last month, up 9.3 percent compared to January 2013. The closed sales data reflected fewer short sales in January: Traditional sales in Florida rose 20.4 percent for single-family homes and 16.9 percent for condo-townhome properties. Closed sales typically occur 30 to 90 days after sales contracts are written.

“The figures released this month are characteristic of a market that has reached balance,” said Florida Realtors Chief Economist Dr. John Tuccillo. “While sales and prices continue to rise, the most striking characteristic of the market is the stability of inventory as measured in months. It appears that the rate at which properties are coming on the market is closely matched by sales. In addition, rising prices have cut down on the availability of short sales and these have been dropping consistently.”

Inventory was at a 5.6-months’ supply in January for single-family homes and at a 6-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 4.43 percent in January 2014, up from the 3.41 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 January 2014 data report PDFs under Market Data.

Breakout: NAR: Existing-home sales drop in Jan. but prices continue to rise

© 2014 Florida Realtors

January Housing Starts

January Housing Starts

On February 19, 2014, in Economic Updates, by Lawrence Yun, Chief Economist

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In each Economic Update, the Research staff analyzes recently released economic indicators and addresses what these indicators mean for REALTORS® and their clients. Today’s update discusses the latest housing starts data.

• New home construction fell notably in January, partly due to inclement weather conditions. Housing starts dropped 16 percent from the prior month, to a seasonally adjusted annual rate of 880,000 units. Activity plunged 70 percent in the frozen Midwest. The West region, less impacted by the weather, experienced a 17 percent decline.
• One major bottleneck to the housing recovery is the lack of inventory. The supply of existing home inventory (2 million listings) has been bouncing along at a 13-year low, while new home inventory (180,000 listings) is essentially at a 50-year low. Consumers, including many trade-up buyers, want to see more listings before deciding to make the transition.
• The supply can be genuinely relieved from increased new home construction. As people trade-up into new homes, they will open up existing homes on the market. Based on historical trends, housing starts should be at least 1.5 million annually. We are well short of that today. Many small local builders have been complaining about the difficulty in obtaining construction loans. Local community bankers in turn have complained about burdensome new financial regulations coming out of Washington that make it difficult to lend for the construction of new homes. The large publicly-listed builders who can tap Wall Street funds are taking advantage of the fact that the smaller guys are shut out of the market.
• The housing starts forecasts are for 1.2 million in 2014 and 1.4 million in 2015. That is still not sufficient. Home prices will be moving higher as a result.
• Several fanciful new homes were built on the northern side of the DMZ line in Korea many years ago. They were purposely built to be seen from South Korea with plain binoculars, showing presumably a higher standard of living in the North. A closer look, however, reveals only pure facades with hollow interiors. As everyone knows now, South Korea has economically taken off while North Koreans face constant fear and live daily on the edge of starvation. South Koreans could easily be living under the same inhumane horrible conditions had it not been for the U.S. who came through during the Korean War. Over 30,000 Americans gave their lives with many not knowing why they were halfway around the world in a strange country. To those affected families, I hope they get some comfort in knowing at least 50 million South Koreans are living comfortably. One testament of the prosperity is the country’s ability to spend on leisure and recreation, including participating in the Olympics. The sound of Olympic skates cutting through ice, from the author’s point of view, is a tribute to all U.S. servicemen and women.

Lawrence Yun, Chief Economist

Lawrence Yun is Chief Economist and Senior Vice President of Research at NAR. He directs research activity for the association and regularly provides commentary on real estate market trends for its 1 million REALTOR® members.

Tagged with: Housing Starts
 

Realtor.com: Jan. 2014 data points to homebuying season early start

Realtor.com: Jan. 2014 data points to homebuying season early start

SAN JOSE, Calif. – Feb. 20, 2014 – Despite severe weather conditions across much of the country, the 2014 homebuying season has begun on one positive note, showing an uptick in inventory a month earlier than last year, according to Realtor.com’s National Housing Trend Report for January 2014.

Data from Realtor.com reveals the median list price for January 2014 is 8.3 percent above levels observed in January 2013. The number of properties for sale is up 3.1 percent and the median age of inventory is essentially unchanged, indicating a transition to a less frenzied market compared to January 2013.

“January’s start compared to year-ago levels is an encouraging sign of sellers’ interest, particularly given the adverse conditions brought on by the polar vortex,” said Errol Samuelson, president of Realtor.com. “We saw the tight-supply market of last fall carry all the way into November – later than is typically expected – and this early rise in inventory is a welcome trend. The sustained median list price growth supports the gains we saw last year, and sellers are responding with confidence in that consistency. We will continue to watch inventory movement in the coming months as we move further into typical seasonal patterns, but anticipate a more balanced buying market.”

The national median existing home price is projected to rise about 5 to 6 percent in 2014, according to the National Association of Realtors® (NAR), which cites job growth and large pent-up demand as drivers of the market in light of rising mortgage rates.

National perspective
Inventory increasing: At the national level, for-sale inventories are now 3.1 percent higher than they were one year ago, and the rise in inventory is spreading to more markets across the country. In January 2013, just eight markets registered increases in inventory. This January, 83 markets (58 percent) of the 143 markets tracked by Realtor.com showed increases in inventory, year over year. While the next few months will be critical to watch, these trends suggest a more balanced housing market going into the 2014 homebuying season.

Price increases more widespread: Median list price rose a healthy 8.3 percent in January 2014 compared to the same time last year. In January 2014, 44 markets saw year-over-year list price increases of 10 percent or more, compared to January 2013, when 24 markets registered double-digit increases in median list price. The number of declining markets in terms of median list price dropped, from 58 in January 2013 to just 13 in January 2014.

Days on market stabilizing: Median age of inventory remained steady in January 2014 compared to the same time last year, at 115 days. However, the number of markets showing year-over-year declines in age of inventory has dropped significantly, from 133 markets in January 2013 to 78 markets in January 2014. 56 markets showed year-on-year increases in days on market in January 2014, compared to just nine markets in January 2013.

Source: Realtor.com

© 2014 Florida Realtors

Investors get back into the real estate game

Investors get back into the real estate game

NEW YORK – Feb. 19, 2014 – Many housing experts predicted a slowdown in investor activity this year, but investors don’t appear to be fading from the market – they appear to simply be shifting their focus to different types of properties as distressed inventories dry up.

“There has been a clear rebound in investor participation in the housing market,” says Thomas Popik, research director for the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, which showed strong activity among investors in December 2013. “The statistics for the housing market, particularly the non-distressed segment, remain generally strong, but investors still are increasing their activity.”

Investors are increasingly targeting non-distressed properties.

In November, investors accounted for 13.2 percent of purchases of non-distressed properties based on a three-month moving average. That’s up from 10.5 percent in August, marking a seven-month market share high for investors, according to the HousingPulse survey.

Investors started pulling away from the market in March 2013 as home prices soared, with their overall market share dropping to 16 percent, according to a survey by the National Association of Realtors®. But by December, they bounced back, ending the year strong with a 21 percent market share – about the same level at which investors’ presence peaked during the foreclosure crisis.

Source: “Investors Ended 2013 on a Roll,” RISMedia (Feb. 17, 2014)

© Copyright 2014 INFORMATION, INC. Bethesda, MD (301) 215-4688

Court-approved deal advances plans for new Fisher Island condominiums

Court-approved deal advances plans for new Fisher Island condominiums

BY MARTHA BRANNIGAN

MBRANNIGAN@MIAMIHERALD.COM

U.S. Bankruptcy Judge A. Jay Cristol this week approved an agreement aimed at allowing the long-delayed development of luxury condos on Fisher Island to go forward.

Plans call for 94 luxury units evenly split between two projects, the Palazzo del Sol and the Palazzo del Luna.

The agreement —which brings together two opposing groups that both claim ownership to the land following the 2008 death of Arkady “Badri” Patarkatsishvili, a tycoon from the Republic of Georgia — is aimed at allowing Fisher Island Holdings to obtain title insurance. With that, the developer expects to modify a soured mortgage and get construction loans to jump start the project.

Despite the agreement, the dispute continues over ownership of the 18-acres of undeveloped land on the exclusive resort island off Miami Beach.

Judge Cristol has held that Patarkatsishvili’s family and widow, Inna Gudavadze, who lives in England, are the rightful heirs; and a federal judge confirmed that finding. However, entities related to Patarkatsishvili’s former business associates, including his cousin, Joseph Kay, also claim ownership of the land and have an appeal of the case in the 11th Circuit Court of Appeals.

Read more here: http://www.miamiherald.com/2014/02/13/3933541/court-approved-deal-advances-plans.html#storylink=cpy

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Record number of visitors travel to Florida in 2013

• Photos

TRIBUNE FILE

By Ted Jackovics | Tribune Staff
Published: February 14, 2014

Visit Florida, the state’s tourism marketing corporation, said Friday in a preliminary report a record 94.7 million visitors came to Florida in 2013, an increase of 3.5 percent over 2012.

For fourth quarter 2013, preliminary estimates show a record 21.9 million people visited the Sunshine State from October through December, a 2.2 percent gain over the year-ago period.

Preliminary estimates are issued 45 days after the end of each calendar quarter. Final estimates are released when final data are received for all estimates in the report.

Visit Florida estimated record highs of 11.5 million overseas visitors and 3.7 million Canadians came to Florida in 2013, 11.1 percent and 4.1 percent increases over 2012, respectively.

Estimates reflect a 2.5 percent increase in domestic visitors to Florida in 2013 and show Floridians took a record total of 20.1 million in-state pleasure trips.

Preliminary data from Tennessee-based travel research firm STR showed Florida tourism has regained market share since January 2013, outpacing the rest of the nation by 1.3 percentage points. STR said room revenue in Florida for 2013 was up 8.2 percent, compared with a 6.2 percent U.S. increase.

Gov. Rick Scott said every 85 visitors to Florida equals one job in the state, stating the rationale to budgeting $100 million to Visit Florida.

Scott on Friday visited Universal Orlando Resort, which will create nearly 3,500 new jobs this year as it builds the Wizarding World of Harry Potter – Diagon Alley, adds an on-site hotel and expands its CityWalk entertainment complex.

tjackovics@tampatrib.com

(813) 259-7817

New home purchases up sharply in Jan. 2014

New home purchases up sharply in Jan. 2014

WASHINGTON – Feb. 14, 2014 – The Mortgage Bankers Association (MBA) estimates that sales of new single-family homes were running at a seasonally adjusted annual rate of 543,000 units in January 2014, based on data from MBA’s Builder Applications Survey (BAS).

The estimated 543,000 unit annual sales pace in January was a 35 percent increase from December’s pace. On an unadjusted basis, the MBA estimated 38,000 new home sales in January – a 36 percent increase from the level of 28,000 units in December. The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors.

“While the big jump may appear to conflict with other data, such as MBA’s purchase application index and NAR’s existing home sales data that point to a weak market for existing homes, our Builder Application Survey estimate is consistent with reports of homebuilder sentiment that show strength in the market for new homes,” says Mike Fratantoni, MBA’s chief economist. “It is also worth noting that the significant January increase also followed a particularly slow pace of sales in November and December.”

Mortgage applications for new home purchases increased by 27 percent relative to the previous month. That change doesn’t include any adjustment for typical seasonal patterns.

By product type, conventional loans composed 69.4 percent of loan applications; FHA loans composed 15.9 percent; RHS/USDA loans composed 1.3 percent; and VA loans composed 13.4 percent. The average loan size of new homes decreased from $300,444 in December to $289,358 in January.

© 2014 Florida Realtors®

Florida’s housing market gained momentum, strength in 2013

Fla.’s housing market gained momentum, strength in 2013

NAR: Metro areas see solid home-price growth in 4Q 2013

ORLANDO, Fla. – Feb. 11, 2014 – Florida’s housing market wrapped up 2013 with more closed sales, higher pending sales, higher median prices and a reduced inventory of homes for sale compared to the year before, according to the latest housing data released by Florida Realtors®.

“Throughout 2013, the state’s housing market has demonstrated it’s in a solid recovery and gaining strength,” 2014 Florida Realtors® President Sherri Meadows, CEO and team leader, Keller Williams, with market centers in Gainesville, Ocala and the Villages. “The positive fundamentals of Florida’s housing sector continue into 2014. However, factors remain that could slow an even stronger economic recovery, such as limited inventories of for-sale homes in many areas, overly-restrictive mortgage credit, rising interest rates, and concerns about the cost and availability of property and flood insurance.”

Year-end 2013
Statewide closed sales of existing single-family homes totaled 227,411 in 2013, up 11.8 percent compared to the 2012 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.

Pending sales – contracts that are signed but not yet completed or closed – for existing single-family homes rose 17.6 percent in 2013 compared to 2012’s figure. The statewide median sales price for single-family existing homes in 2013 was $168,000, up 15.9 percent from the previous year.

According to the National Association of Realtors® (NAR), the preliminary national median sales price for existing single-family homes for all of 2013 was $197,100, up 11.5 percent from 2012 – and the strongest annual price gain since 2005. In Massachusetts, the statewide median sales price for single-family existing homes for 2013 was a preliminary $325,000; in New York, it was $227,000; and in Illinois, it was $150,000. The median is the midpoint; half the homes sold for more, half for less.

Looking at Florida’s year-to-year comparison for sales of townhouse-condos, a total of 108,560 units sold statewide in 2013, up 5.1 percent from 2012. Pending sales for townhouse-condos for the year increased 9.7 percent compared to 2012. The statewide median for townhouse-condo properties in 2013 was $128,000, up 20.1 percent over the previous year.

4Q 2013
In the fourth quarter, closed sales of single-family existing homes totaled 54,845, up 4.7 percent from 4Q 2012, according to Florida Realtors data. Pending sales of single-family existing homes were down slightly (-2 percent) for the quarter, compared to the same period a year earlier. The statewide single-family existing-home median price in 4Q 2013 was $170,000, up 13.3 percent from the same quarter a year earlier.

Closed sales of townhouse-condos totaled 24,538 in the fourth quarter, down slightly
(-2.1 percent) from 4Q 2012; pending sales of townhome-condos also dipped (-7.4 percent) compared to the same quarter a year earlier. The statewide median for townhome-condos in 4Q 2013 was $133,000, up 18.8 percent from 4Q 2012.

At the end of 2013 and also for 4Q 2013, inventory for single-family homes stood at a 5.5-months’ supply, while inventory for townhouse-condo properties was at a 5.8-months’ supply, according to Florida Realtors.

Florida Realtors Chief Economist Dr. John Tuccillo said, “We have seen all these numbers before in the monthly releases, but looking at them on a quarterly and annual basis allows for a better evaluation of the real estate market. The trends we have seen develop over the year – rising sales and prices, declining percentage of cash sales and stabilizing inventory – are confirmed in these statistics.

“If we compare the fourth quarter statistics to the annual numbers, we get an even clearer picture of the trends. In the last part of the year, for example, cash sales declined faster. This points to the diminishing presence in the market of investors. But overall sales continued to improve, although at a slower rate. This suggests that owner-occupants are replacing, at least in part, the smaller influence of investors.”

The interest rate for a 30-year fixed-rate mortgage averaged 3.98 percent for 2013, up from the previous year’s average of 3.66 percent, according to Freddie Mac.

To see the full statewide housing activity reports, go to Florida Realtors Media Center and look under Latest Releases, or download the 2013, the 4Q 2013 and general statewide metropolitan statistical area (MSA) data report PDFs under Market Data.

© 2014 Florida Realtors®

4 Warning Signs to Watch for When Buying a Foreclosure

By Matthew Frankel | More Articles | Save For Later 
February 1, 2014 | Comments (0)

Source: Respres.

Over the past several years, many people have gotten great deals on homes because of foreclosures. While the inventory of foreclosed homes in the market is not nearly what it was a few years ago, there are still many to be found. In fact, in some areas, the foreclosures from the 2008-2010 period are just now making their way through the court system and appearing on the market. 

In the right situation, a foreclosure can be an excellent way to obtain your dream home at a much better price than you would expect.  Buying foreclosures can also be an great way to acquire investment properties, as many foreclosures are duplexes, triplexes, and smaller single-family homes that can become lucrative rentals.

Even though foreclosed homes can be a good deal, they definitely carry their own issues and risks that buyers need to be aware of. Let's break down a few of these and see if they should affect your decision on whether to buy the property or not.

Beware of "as-is" conditionI came across an ad when researching foreclosures that said "Cash offers only -- no showings and no inspections prior to closing. New owner is responsible for taking possession of the property upon closing." If you see anything similar to this, run! There is no telling what you'll find, or what kind of problems there are with the house, both physically and legally.

Source: Carsten Volkwein.

There are some other phrases to be extremely wary of. "Cash offers only" means the property is in such bad condition that it won't qualify for any type of financing. This happens with things like structural issues or if there are building code issues (old owners illegally turned a home into a duplex, built a pool with no permit, etc.), or something to that effect.

"As is" will hopefully be followed by the phrase "with right to inspect" or something similar. Never buy a home you can't go into before closing. When searching for my home, I was shown several foreclosures that had issues ranging from holes in the middle of the floor, to a toilet that backed up and overflowed years ago and was left to rot, to a family of raccoons living in one of the closets. If they won't even let you in, just imagine what they could be hiding!

Unpaid taxes/liensThis is especially common if you buy a property at auction. In some states, it can take years to foreclose on a home after the owners stop making payments. Generally, when the homeowners stop paying the mortgage, the property taxes don't get paid as well. The same goes for second mortgages and other liens that are placed against the house to recoup various debts. 

Before making an offer on a foreclosed home, check with a real estate professional or with the local authorities (tax collector, records keeper, etc.) to see if any back taxes or other liens will complicate the sale.

Source: J.B. Hill.

Lack of maintenanceRoutine maintenance is often neglected when houses are in foreclosure and the homeowners are no longer paying their mortgage. In addition, these foreclosed properties can sit vacant for years before new owners finally take possession.

As a result, it is fairly common to find critical maintenance issues that need to be handled immediately, such as plumbing issues, the need for a new roof, and an aging air conditioner. Foreclosed homes also have a higher rate of problems like mold or infestations that occur when a property is neglected for an extended period of time.

When making an offer on a foreclosed home, make sure you have the right to inspect.  Call around to find a home inspector who has a lot of experience with foreclosures and their issues.

Source: Johncarljohnson.

Missing itemsWhen a house sits vacant, it becomes a target for vandalism and theft. Don't be surprised if a home is missing cabinets, appliances, or other valuable items. A friend once put an offer on an older foreclosed home, and upon his home inspection, he found out all of the copper pipes had been stolen, leaving the home without plumbing.

In addition to vandals and thieves, the owners of foreclosed homes are known to take "souvenirs" from the house, especially appliances. 

It's a good idea to get in writing exactly what property is going to convey with the house. If the property is indeed missing things, take this into account when submitting your offer.

Is it worth the discount?The short answer is, maybe. While foreclosed homes generally sell for 15%-20% less than comparables, this is only a bargain if the work needed on the home is not too extensive, and the home inspection doesn't raise too many red flags. 

When buying a foreclosure, work with a real estate professional, as they have been through the foreclosure buying process many times and know what is acceptable and what should scare you away.

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