Florida Housing Market Shows Big Gains

ORLANDO, Fla. – May 22, 2013 –Florida’s housing market reported more closed sales, rising median prices, increased pending sales, more new listings and a lower inventory of homes for sale in April, according to the latest housing data released by Florida Realtors®.

“Buyer demand is rising, but the inventory of homes continues to be tight in many areas across Florida,” says 2013 Florida Realtors President Dean Asher, broker-owner with Don Asher & Associates Inc. in Orlando. “That’s putting some upward pressure on prices. April is the 16th month in a row that we’ve seen the statewide median sales prices increase year-over-year for both single-family homes and for townhome-condo properties.

“In another positive sign for Florida’s housing market, sellers received over 93 percent of their original listing price in April, whether they were selling a single-family home or a condo. Now is a good time for sellers who have been waiting on the sidelines to enter the market.”

Statewide closed sales of existing single-family homes totaled 20,662 in April, up 17.4 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 31.9 percent over the previous April. The statewide median sales price for single-family existing homes last month was $165,000, up 14.2 percent from the previous year.

According to the National Association of Realtors (NAR), the national median sales price for existing single-family homes in March 2013 was $185,100, up 12.1 percent from the previous year. In California, the statewide median sales price for single-family existing homes in March was $378,960; in Massachusetts, it was $290,000; in Maryland, it was $241,413; and in New York, it was $220,000.

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 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 townhouse-condos, a total of 11,183 units sold statewide last month, up 13.6 percent compared to April 2012. Meanwhile, pending sales for townhouse-condos last month increased 22.7 percent compared to the year-ago figure. The statewide median for townhouse-condo properties was $128,000, up 16.4 percent over the previous year. NAR reported that the national median existing condo price in March 2013 was $178,900.

The inventory for single-family homes stood at a 5.2-months’ supply in April; inventory for townhouse-condos was at a 5.6-months’ supply, according to Florida Realtors.

“To a certain extent, the real estate story remains the same: prices and sales are up and inventory is low,” said Florida Realtors Chief Economist Dr. John Tuccillo. “We are also seeing a continued stabilization of the distressed property market with short sales down, and foreclosure and REO (real estate owned) sales essentially unchanged. But there is also a bit more to the story.”

He explained, “Because the government is selling foreclosed properties in bulk and also using online auctions, our sales numbers actually understate the vigor of the market. The increased importance of government sales in this market is reflected in the continuing fall in inventory in MLS listings.” MLS stands for multiple listing service.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.45 percent in April 2013; lower than the 3.91 percent average during the same month a year earlier.

To see the full statewide housing activity reports, go to Florida Realtors Media Center and look under Latest Releases, or download the April 2013 data report PDFs under Market Data.

© 2013 Florida Realtors®

Confused About Mortgages - Processes

SEATTLE – May 10, 2013 – Most homeowners, especially first-timers, borrow a large amount of money to buy a home. But how much do they know about the process? A survey conducted by Ipsos Ipsos for Zillow attempted to find out.

According to the Zillow Mortgage Marketplace survey of first-time homebuyers, they answered one-third (32.5 percent) of the questions about basic mortgage information incorrectly.

For example, one-third (34 percent) of first-time homebuyers don’t realize it’s possible to get a home loan with a downpayment less than 5 percent.

Many first-time buyers also don’t understand how to secure the best possible interest rate and loan terms. One-quarter (26 percent) incorrectly believe they’re obligated to close their loan with the lender that pre-approved it; and, separately, 24 percent incorrectly believe that the best interest rates and fees can always be found through the bank they currently use.

Additionally, one-third of buyers (34 percent) believe all lenders are required by law to charge the same fees for credit reports and appraisals, even though it’s best to shop multiple lenders to compare rates and fees.

Confusion also reigns after the home sale. Almost half (47 percent) of current homeowners believe they must wait at least one year between refinancing.

“All too often buyers focus on negotiating a lower home price and ignore the importance of finding the right loan,” says Erin Lantz, director of mortgages for Zillow. “If a homebuyer can lower their interest rate by even half a percentage point, they can not only increase their purchasing power, but save thousands of dollars over the life of the loan.”

Additional survey findings

• One-third (34 percent) of polled prospective homebuyers do not know what the term “annual percentage rate” (APR) means. The annual percentage rate (APR) is a yearly rate that reflects the true cost of a mortgage and is inclusive of the interest rate, points, mortgage insurance (when applicable), and other fees, including origination and underwriting fees. The APR will typically be higher than the interest rate quoted by lenders, and should be used as a starting point when comparing loan quotes between lenders.

• Half (50 percent) of prospective homebuyers do not understand that mortgage rates change throughout the day. In reality, much like the stock market, mortgage rates can change rapidly. To get the optimum rate, it is important to monitor rates and shop around.

• Nearly one-third (31 percent) of current homeowners incorrectly believe that you must wait seven years after a short sale or foreclosure to purchase again. In most cases, homebuyers with a short sale history typically only need to wait 2-4 years depending on their downpayment and the loan type. The waiting period after a foreclosure is longer – typically, buyers need to wait 3-7 years before they can qualify for a new home loan.

• More than one-third (34 percent) of current homeowners incorrectly believe that you can only refinance your home every 12 months. In reality, homeowners can refinance as often as they want. However, homeowners should weigh the cost of the refinance against the time they will own the home and the monthly payment change to determine if refinancing makes sense.

© 2013 Florida Realtors®

Housing Bubble or NOT? Fed Policy is Key!

SEATTLE – May 9, 2013 – More than 100 forecasters polled predict that home values will rise 5.4 percent by the end of 2014 as reflected on the Zillow Home Value Index (ZHVI). However, some expressed concern that Federal Reserve policies could be creating a new housing bubble.

Panelists said they expected median U.S. home values to rise to $165,280, on average, by the end of 2013. The survey of 105 economists, real estate experts and investment and market strategists is conducted quarterly by Pulsenomics and sponsored by Zillow Inc.

In the previous survey conducted in late February and early March, respondents said they expected average home value growth of just 4.6 percent in 2013. Looking forward, respondents also increased their 2014 prediction – to 4.4 percent, up from prior expectations of 4.2 percent.

But while panelists were more bullish on home value appreciation through 2014, they dropped expectations for 2015, 2016 and 2017. On average, panelists said they expect annual home value growth between 3.5 percent and 3.7 percent from 2015 through 2017, down modestly from previously expressed expectations in the 3.6 percent to 3.8 percent range.

Still, the yearly increases led survey respondents to predict that home values will rise 22.3 percent, on average, through 2017.

The Federal Reserve

The U.S. Federal Reserve, however, controls one element of housing demand today – mortgage rates. It has programs in place to keep rates low to boost housing demand in a policy called quantitative easing.

Zillow Chief Economist Stan Humphries says mortgage rates will rise once the Fed backs off on quantitative easing, and higher interest rates will affect home values.

“Looking further out, that appreciation will have to moderate as interest rates rise, or else homes that seem affordable today – despite rapidly rising values – are going to look very expensive relative to people’s incomes as it gets more costly to finance a home,” Humphries says. “How the Federal Reserve handles the eventual winding down of its policy of quantitative easing will be critical in determining if the current period of rapid appreciation is a benign bounce off the bottom, or a more dangerous bubble being re-inflated.”

A housing bubble?

Most experts (52 percent) polled in the Zillow Home Price Expectations Survey see little or no risk of a housing bubble. The remaining 48 percent saw a moderate to high risk. However, some of the bubble risk also comes from federal policies rather than market conditions.

Under the Dodd-Frank financial reform legislation, banking regulators were asked to define a “qualified residential mortgage” (QRM) – a mortgage standard that would limit risk under rules also included in Dodd-Frank. The panel was also asked if this QRM definition should include a minimum downpayment. Among the survey respondents, most said the QRM should include a minimum downpayment requirement.

“Contrary to concerns expressed by certain policymakers, only a small minority of our expert panelists believe that including a minimum downpayment requirement in QRM would pose a threat to the housing recovery,” says Pulsenomics founder Terry Loebs. “The vast majority of respondents – 81 percent – believe that establishing a minimum downpayment is a good idea and would ultimately foster a healthier housing market.”

© 2013 Florida Realtors®

More than Half of Americans Expect Price Increases

WASHINGTON – May 8, 2013 – More than half of Americans now expect the country’s home prices to climb within the next year – a growing optimism toward the health of the housing industry.

The share of respondents to Fannie Mae’s April 2013 National Housing Survey who expect home prices to go up rose another 3 percentage points in April to 51 percent. By comparison, only 32 percent had that optimistic outlook one year earlier.

“Crossing the 50 percent threshold marks a significant milestone as most Americans believe a housing recovery is truly occurring throughout the country,” says Doug Duncan, senior vice president and chief economist at Fannie Mae. In addition, the “share of Americans who think it’s a good time to sell has doubled during the last year. Many homeowners who have been underwater are gradually returning to positive equity, and selling is now becoming an available and attractive option again.”

The share of respondents who say think it’s a good time to sell remains low, but it increased 4 percentage points in April to 30 percent; one year earlier, it was 15 percent.

Survey highlights

• The average 12-month home price change expectation held steady at 2.7 percent.
• The share of people who believe home prices will go down remained at the survey low of 10 percent for the fourth month in a row.
• The share of respondents who say mortgage rates will go up fell 3 percentage points to 43 percent, while those who say rates will go down increased slightly to 7 percent.
• The average 12-month rental price change expectation held steady at 4.1 percent.
• 48 percent of those surveyed say home rental prices will go up in the next year, a 2-percentage point decrease from last month’s survey high.
• The share of respondents who said they would buy if they were going to move increased slightly to 65 percent.

© 2013 Florida Realtors®

March Home Sales UP 10.5%

IRVINE, Calif. – May 7, 2013 – The March CoreLogic HPI (Home Price Index) report released today finds that prices nationwide increased 10.5 percent year-over-year in March – the biggest yearly increase since March 2006, and the 13th consecutive monthly increase in home prices nationally.

On a month-over-month basis home prices increased 1.9 percent in March.

CoreLogic breaks its home sales statistics into two categories: Sales prices that include distressed home sales, and sales prices after backing out distressed sales. Distressed sales include short sales and real estate owned (REO) transactions.

In Florida, home sales, including distressed, rose 8 percent year to year and 1.2 percent month to month. Compared to the state’s high point for home sale prices in September 2006, home prices are down 42.8 percent.

With distressed sales backed out of the calculation, Florida home prices rose 10.1 percent year to year, and 2 percent month to month. That’s slightly lower than the national non-distressed home price increases of 10.7 percent year to year, and 2.4 percent month to month.

According to CoreLogic’s analysis of pending home sales, it predicts prices will rise in April 9.6 percent year to year. Excluding distressed sales from the numbers, it predicts prices will rise 12 percent year to year and 2.7 percent month to month. Pending prices are based on Multiple Listing Service (MLS) data.

“For the first time since March 2006, both the overall index and the index that excludes distressed sales are above 10 percent year over year,” says Dr. Mark Fleming, chief economist for CoreLogic. “The pace of appreciation has been accelerating throughout 2012 and so far in 2013.”

“Much of the price increases … are the result of rising demand among investors and homebuyers for a still-limited supply of homes for sale,” adds Anand Nallathambi, president and CEO of CoreLogic.

© 2013 Florida Realtors®

New Home Upgrades -

When I think of building a new home for myself and my family, the first thing that comes to mind is a big, honking, six-burner, stainless steel commercial-style range with dual ovens, a warming drawer, and more knobs and dials than the cockpit of a 747.

But that’s me.

You’ve got your own vision of Shangri-La: A totally kicking laundry room with plenty of storage and — oh yes — a skylight! Or a master bedroom blissfully isolated from the hubbub of everyday family life.

That’s what’s great about buying a home before it’s actually built. You can dream big, and your options are almost limitless.

But your budget isn’t.

So what to choose?

After years as a builder and cabinetmaker, I’ve learned a thing or two about upgrades. So here’s my advice on choosing upgrades:

Go for Higher-End Kitchen Cabinets

Credit: Standard Pacific Homes

Put your upgrade money here and you’ll never regret it. After all, your kitchen is where you and your family spend lots of time, and you’ll want it to be functional, durable, and a joy to be in.

Moving up from standard cabinets to semi-custom gives you way-better construction and longer-lasting finishes. You’ll get a wide range of colors and styles to choose from, lots of storage options, and long-lasting details such as dovetailed drawer joinery and cool hardware.

For bells and whistles, you can get extra-tall upper cabinets that reach all the way to the ceiling. You’ll nab extra storage space, plus you won’t have to dust the tops.

Spring for premium hinges and drawer slides. Soft-close door and drawer hardware stands up to abuse for many years, and will help keep your upgraded cabinets in top shape.

Choose Wool Carpeting

Credit: Standard Pacific Homes

The better the carpet, the better it’ll stand up to traffic and maintain its good looks. You’ll also get a wider choice of styles and colors. Wool is my favorite; it’s a little less forgiving of red wine spills (been there), but it’s long-lasting and feels great.

While you’re at it, you’ll want to upgrade your carpet pad, too. Standard pads have minimal cushioning; better pads increase the lifespan of your carpeting. Frothed polyurethane, slab rubber, and natural fiber pads are considered non-toxic pads with low VOCs.

Add More Wood Flooring

Credit: Ryland Homes

You can’t go wrong with wood flooring — it’s one of the few materials that just refuse to go out of style. It has warmth, blends with any décor, and makes you feel like Lord (or Lady) Grantham just looking at it. Put it where everyone can appreciate it — living room, great room, and your kitchen.

Oak is a failsafe option that’ll always look good and tends to be lower cost than more exotic woods.

Don’t Overlook Ceiling Fans

Sometimes overlooked amid all the new house options, ceiling fans are a smart, low-cost upgrade that add lots of energy-saving comfort. They’ll help keep you cool so you don’t need to use your AC as much, saving you as much as $165 in energy costs over the life of the fan.

Ceiling fans come in lots of styles — from sleek futuristic designs to Victorian reproductions — so they even can be a room focal point. They’re great in bedrooms and family rooms.

Install Skylights

Credit: Wasco Skylights

The skylights in our house are family favorites. They’re “feel good” features that work quietly in the background of daily life, bathing the interior with a soft, natural light.

A skylight adds about 30% more light than a window of comparable size.

No need to worry about too much sunlight — you can get skylights that have built-in shades that you can operate manually or by remote control. Fancier skylights open up (great for air circulation) and have auto sensors that close the canopy if rain is detected.

And, Finally, Invest in the Upgrade That Makes You Happy

Credit: William Ryan Homes — Chicago Division

This is your chance to really make your house your home. So ask yourself: What upgrade would really make your new home yours?

That commercial range I want? It’s on my upgrade list.

What’s on yours?

Learn more about the benefits of a newly built home.

And find out how to plan for future needs at the same time your planning your want-to-do list. 

Read more: http://www.houselogic.com/blog/home-thoughts/new-home-upgrades/#ixzz2SFgw6Uux

Florida Top Cities for Flipping Homes

ORLANDO, Fla. – May 2, 2013 – In which U.S. cities is a home flip – one bought and resold in 90 days or less – most profitable? A RealtyTrac analysis determines that Fla. has five of the top 10, including the nation’s most profitable city for flipping: Orlando.

In addition to five in the top 10, an additional city made it into the nation’s top 25 for flipping. Overall, Florida cities competed largely with California cities in the RealtyTrac rankings.

RealtyTrac based its cities list on total gross profit earned from a home flip in 2012.

Florida rank of top U.S. cities for home flipping

1. Orlando – 1,912 flips – 63% gross profit
4. Tampa – 3,033 flips – 43% gross profit
6. Miami – 4,299 flips – 37% gross profit
7. Lakeland – 660 flips – 37% gross profit
9. Sarasota – 999 flips – 34% gross profit
20. Cape Coral – 1,547 flips – 15% gross profit

The full report can be found on RealtyTrac’s website.

© 2013 Florida Realtors®