Tuesday, November 30, 2010
Third Quarter Single Family Home Trend Pinellas County
Maybe the most stunning price trend chart I have ever seen in my 30+ years in sales and marketing.
Monday, November 29, 2010
There is a Silver Lining
The State of the Market:
Lower home prices and large inventories make this an ideal market for homebuyers, people looking to move up to a larger home and real estate investors.
Selection is Vast: with more homes on the market, homebuyers can be more selective than in previous years.
Historically low interest rates:
Whether it be a single family home, condominium or town-home let me help you find your perfect Florida home.
David W. R. Greenlees
Realtor – Leader in Outstanding Service
Downtown and Old Northeast Specialist
Coldwell Banker Residential
St. Pete Beach, Florida
Office 727-442-7000
Cell 727-639-2786
Friday, November 26, 2010
Timing is Everything
Current market conditions make it more important than ever to make wise real estate decisions. Many homeowners are considering all of their options. Before you make a decision, turn to me. It’s always the right time to fall back on the tradition of fine quality service. Whether buying or selling, I will provide that level of service to you.
If you are planning to sell, let me help you achieve the best price and terms attainable in the shortest possible time on the market at the least inconvenience to you and your family, and good communication to keep you informed throughout the process.
Call me today for a for Comparative Market Analysis on your property.
David W. R. Greenlees
Realtor – Leader in Outstanding Service
Downtown and Old Northeast Specialist
Coldwell Banker Residential
St. Pete Beach, Florida
Office 727-360-6927
Cell 727-639-2786
Email: davidwrg@tampabay.rr.com
Office: david.greenlees@floridamoves.com
Websites:
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http://www.linkedin.com/in/davidwrg
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Tuesday, November 23, 2010
Five Reasons to Hire a Pro to Sell Your Home
1. Employ an Expert – shortest time on the market – 76% of FSBO’s waste time before calling an agent.
2. Better Tools- Maximum exposure via multiple internet placement and MLS presence = more buyers.
3. Liability – avoid expensive lawsuits and misunderstandings- Realtors are trained to look for pitfalls.
4. Duck the Riffraff- don’t allow just anyone in your house. Professional Realtors prescreen potential buyers for credit worthiness.
5. Avoid Hardball Tactics – take away the emotions and let the professional Realtor take care of tough negotiations.
Your home is probably your biggest investment. A mistake in selling your home could cost you far more than an agent’s commission.
St Petersburg Christmas Tree Lighting
Wednesday, November 17, 2010
Monday, November 15, 2010
Moody's Notes Pent Up Demand For Florida Property
PHOENIX – Nov. 15, 2010 – The pace of the national recovery is moderating and the lift spurred by nearly $800 billion in federal stimulus spending is fading, but there are several promising signs that growth will continue, including in Florida, a leading national fiscal analyst told reporters Friday morning.
Moody’s Analytics economist Chris Lafakis said the Federal Reserve will remain aggressive, with a quantitative easing plan that he equated to “basically flooding the global monetary system.” Lafakis predicted the strategy would lift asset prices, reduce corporate borrowing costs, and increase the willingness of consumers to spend.
Lafakis predicted substantial growth in Florida’s economy, mentioning that the Miami, Orlando and Tampa areas are expected to recover “quite significantly” due to a rebound in population growth and an increased willingness of people to travel to Florida for vacations. “The story of pent-up demand is true in no place more so than Florida,” he said.
Nationally, corporate balance sheets are strong and business profits have “fully recovered from the recession,” he said, adding that businesses are in a position to hire more employees, though their level of willingness varies.
“It’s truly the case that profit growth leads job growth,” Lafakis told state government reporters gathered for the annual conference of the Association of Capitol Reporters and Editors.
Household liabilities in the United States have fallen by $900 billion since peaking two years ago and a shift to spending and addressing pent-up demand for purchasing “creates a lot of economic juice,” Lafakis said.
Arturo Perez, a fiscal affairs expert with the National Conference of State Legislatures, said states are collectively facing budget gaps that total half a trillion dollars in the coming years. He said state tax revenues bottomed out in fiscal 2010 and that tax collections were growing in 42 states in fiscal 2011, which began July 1. Perez described the prevailing sentiment across the states as “cautiou-mistic” with revenues rebounding from a depressed base.
The national economy, which had shed 700,000 to 800,000 jobs per month during the recession, has been adding jobs in recent months but not at the 150,000 per month rate that Lafakis said is needed to keep up with growth in the labor force and make a dent in the unemployment rate.
Over the past three months, he said, the national recovery has “downshifted to a more moderate pace.”
In the conference’s opening session Thursday, Lori Grange, deputy director of the Pew Center on the States, described research showing elected officials face a “huge deficit” in public trust in state government.
Grange said taxpayers favor reduced government spending over new taxes as a budget-balancing strategy and are breaking strongly against new state government debt and borrowing. The center plans to release a report on state debt trends in February, she said.
Grange said Illinois had gone on a “borrowing binge” that had led to the lowering of its bond rating and noted that voters in Washington rejected a $500 million request for capital spending to improve public schools.
The economic crisis is forcing state government officials to fundamentally rethink their operations, Grange said. She said high unemployment, expiring federal stimulus funds and increased demand for social programs had created “the perfect storm of lousy conditions and all of it’s in the face of significant budget gaps.”
Source: News Service of Florida, Michael Norton
Lafakis predicted substantial growth in Florida’s economy, mentioning that the Miami, Orlando and Tampa areas are expected to recover “quite significantly” due to a rebound in population growth and an increased willingness of people to travel to Florida for vacations. “The story of pent-up demand is true in no place more so than Florida,” he said.
Nationally, corporate balance sheets are strong and business profits have “fully recovered from the recession,” he said, adding that businesses are in a position to hire more employees, though their level of willingness varies.
“It’s truly the case that profit growth leads job growth,” Lafakis told state government reporters gathered for the annual conference of the Association of Capitol Reporters and Editors.
Household liabilities in the United States have fallen by $900 billion since peaking two years ago and a shift to spending and addressing pent-up demand for purchasing “creates a lot of economic juice,” Lafakis said.
Arturo Perez, a fiscal affairs expert with the National Conference of State Legislatures, said states are collectively facing budget gaps that total half a trillion dollars in the coming years. He said state tax revenues bottomed out in fiscal 2010 and that tax collections were growing in 42 states in fiscal 2011, which began July 1. Perez described the prevailing sentiment across the states as “cautiou-mistic” with revenues rebounding from a depressed base.
The national economy, which had shed 700,000 to 800,000 jobs per month during the recession, has been adding jobs in recent months but not at the 150,000 per month rate that Lafakis said is needed to keep up with growth in the labor force and make a dent in the unemployment rate.
Over the past three months, he said, the national recovery has “downshifted to a more moderate pace.”
In the conference’s opening session Thursday, Lori Grange, deputy director of the Pew Center on the States, described research showing elected officials face a “huge deficit” in public trust in state government.
Grange said taxpayers favor reduced government spending over new taxes as a budget-balancing strategy and are breaking strongly against new state government debt and borrowing. The center plans to release a report on state debt trends in February, she said.
Grange said Illinois had gone on a “borrowing binge” that had led to the lowering of its bond rating and noted that voters in Washington rejected a $500 million request for capital spending to improve public schools.
The economic crisis is forcing state government officials to fundamentally rethink their operations, Grange said. She said high unemployment, expiring federal stimulus funds and increased demand for social programs had created “the perfect storm of lousy conditions and all of it’s in the face of significant budget gaps.”
Source: News Service of Florida, Michael Norton
Thursday, November 11, 2010
Fourteen of Florida’s metropolitan statistical areas (MSAs) reported higher existing condo sales in the third quarter, according to Florida Realtors. The statewide existing-condo median sales price was $84,000 for the three-month period; in 3Q 2009, it was $106,000 for a decrease of 21 percent.
“A healthy housing market is built on the foundation of a robust economy,” said Dr. Sean Snaith, director of the University of Central Florida’s Institute for Economic Competitiveness. “As the economic recovery continues in Florida – and in particular as the labor market improves – the housing market will follow suit. The price decline in the condo market continues to attract domestic and foreign buyers to Florida to take advantage of this buying opportunity.
Meanwhile, in the year-to-year quarterly comparison for existing single-family home sales, 41,122 homes sold statewide for the quarter compared to 44,451 homes in 3Q 2009 for a 7 percent decrease. The statewide existing-home median sales price was $135,200 in 3Q 2010; a year earlier, it was $145,300 for a decrease of 7 percent. 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, according to the National Association of Realtors® (NAR). The median is a typical market price where half the homes sold for more, half for less.
The University of Florida’s Bergstrom Center for Real Estate Studies’ latest quarterly survey of real estate trends reports that the jobless rate remains a top concern for the future outlook of the state’s real estate industry. The survey polls market research economists, industry executives, real estate scholars and other experts.
Timothy Becker, the center’s director, noted that investment in real estate continues to flow into Florida, though investors are wary about the economy. “The apartment sector is the stellar performer,” he said, adding that conditions continue to improve in the commercial sector. “We’re starting to see stabilization across property types in occupancy, with respondents saying they feel better about what rents are going to look like in the near future.”
Low mortgage rates continued to be available during the third quarter of the year. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 4.45 percent in 3Q 2010; one year earlier, it averaged 5.16 percent.
© 2010 Florida Realtors®
Wednesday, November 10, 2010
Real Estate Investment News Florida is HOT
The Financial Times Reports:
From luxury developments in hot spot Brazil to seaside resorts in Bulgaria and property exchanges in Cyprus – these were just a few of the developments being marketed at a recent property investor show.
Yet, while recent research from Knight Frank has found that wealthy buyers across the globe are planning to invest more in residential property, analysts warn that investors should research the location of any overseas purchase, as many countries offer little value. We look at where to buy and where to show caution.
HOT!!!
Florida: Property analysts believe Florida is worth a look due to price falls of as much as 40 per cent since the credit crisis.
“Buyers should look into this market because it probably represents the best value real estate in the world at the moment,” says Chadd.
Nigel Lewis of FindaProperty.com agrees. “Florida’s market is staging a significant recovery in the more desirable areas including the Gulf Coast and near to Disney World.”
Investors can achieve net yields of between 8 to 10 per cent but mortgages continue to be thin on the ground so most deals would require a cash purchase
John Paulson Speaks Out on Real Estate Investment:
Now add to the mix another well known manager in John Paulson. His hedge fund Paulson & Co of course made billions from his bet against subprime as detailed in the book, The Greatest Trade Ever. Given his success, everyone now latches onto his every word, hoping for advice.
Paulson thinks this is the best time to buy a home in fifty years, exclaiming that, "If you don't own a home, buy one. If you own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home."
From luxury developments in hot spot Brazil to seaside resorts in Bulgaria and property exchanges in Cyprus – these were just a few of the developments being marketed at a recent property investor show.
Yet, while recent research from Knight Frank has found that wealthy buyers across the globe are planning to invest more in residential property, analysts warn that investors should research the location of any overseas purchase, as many countries offer little value. We look at where to buy and where to show caution.
Florida: Property analysts believe Florida is worth a look due to price falls of as much as 40 per cent since the credit crisis.
“Buyers should look into this market because it probably represents the best value real estate in the world at the moment,” says Chadd.
Nigel Lewis of FindaProperty.com agrees. “Florida’s market is staging a significant recovery in the more desirable areas including the Gulf Coast and near to Disney World.”
Investors can achieve net yields of between 8 to 10 per cent but mortgages continue to be thin on the ground so most deals would require a cash purchase
John Paulson Speaks Out on Real Estate Investment:
Now add to the mix another well known manager in John Paulson. His hedge fund Paulson & Co of course made billions from his bet against subprime as detailed in the book, The Greatest Trade Ever. Given his success, everyone now latches onto his every word, hoping for advice.
Tuesday, November 9, 2010
International Investors are Looking Poised for Real Estate Investments
SEATTLE – Nov. 9, 2010 – The United States’ investment sales market has the potential for increased fluidity in the year ahead, based on findings from Colliers International’s Q3 2010 Global Investor Sentiment Survey.
More than six out of 10 U.S. real estate investors responding to the survey indicated that they are considering selling property over the next year, up considerably from the 23 percent reported in the Q1 response. Meanwhile, 85 percent of U.S. investors expressed a desire to buy assets domestically during that time, with a focus on primary markets nationwide. The combined forces may position a significantly increased number of U.S. assets to trade over the next 12 months.
In particular, U.S. investors noted markets in California, Texas, New York/New Jersey and Florida, as well as Washington, D.C., Boston, Atlanta, Chicago, Denver and Seattle as key targets.
Further, 60 percent of U.S. real estate investor respondents expect to expand their portfolios in the coming year. An additional three out of 10 expect to maintain the size of their portfolios, with some of those expressing an interest in rebalancing their portfolios among different asset classes.
The survey, which includes investors from around the globe, also determined that the majority of U.S. respondents still believe that the “Property Clock” is at six o’clock, or at the bottom of the cycle. That is in sharp contrast to the average globally, which puts the time at eight o’clock, or at the beginning of an up cycle, but is similar to the U.S. sentiment in the first quarter of 2010.
The Property Clock equates market cycles to specific times of the day, with 12 o’clock representing the top of the market and six o’clock representing the bottom. Each six-hour period in between designates rising (after six o’clock to 12 o’clock) or declining (after 12 o’clock to six o’clock) cycles.
“With the Property Clock at six, it is no wonder why so many investors are seeking to expand their portfolios in the coming year,” said Dylan Taylor, Chief Executive Officer of Colliers International in the U.S. “Investors recognize that prices are at the bottom and see tremendous value in commercial real estate. This kind of positive sentiment expressed by U.S. investors is often a precursor to a more active investment sales market. There is plenty of pent-up demand and the survey suggests investors are ready to get off the sidelines and back into the game.”
The survey also reflected overall positive momentum globally. Survey participants believe that most commercial real estate markets have passed the bottom and are on the rise. Improving markets are characterized by rising demand, falling availability and vacancy and rising headline rents.
Some additional key global findings of Colliers International’s Q3 2010 Global Investor Sentiment Survey include:
• The largest group of respondents put the Global Property Clock for their regions at eight o’clock; the second and third largest groups were at six and seven o’clock, respectively.
• Most Q1 respondents placed their markets at between five and six o’clock.
• Ninety percent of respondents said they planned to expand their current level of real estate holdings within a year or maintain them at current levels.
• New York, Chicago, San Francisco, Washington, London, Sydney, Singapore and Hong Kong were listed as key cross-border investment destinations. Emerging markets mentioned include Poland, Ukraine and Brazil.
• Nearly 80 percent think debt will be easier to access in the next 12 months. Respondents who said they believe the cost of debt would rise in the next 12 months fell slightly from the first quarter of 2010, with 44 percent predicting an increase vs. 52 percent six months ago.
Some additional key regional findings include:
• In Western Europe, 60 percent of respondents intend to make cross-border investments, a notable increase from the figure of 30 percent for Q1 2010.
• 73 percent of Asian investors expect to expand their property portfolio in the next 12 months, up from 65 percent in Q1 2010.
• Looking ahead to the next 12 months, fewer Pacific investors (46 percent) expect to expand their property portfolio compared to the 68 percent who expected to expand in Q1 2010.
• Across Central and Eastern Europe, the range of locations being targeted by investors was quite diverse, although Warsaw remains the most popular destination, notably for office product. Other popular targets quoted were Kiev, Prague, Moscow and Bucharest.
The Q3 2010 Global Investor Sentiment Survey was conducted from Aug. 15 to Sept. 7, 2010. More than 200 major institutional and private investors with holdings of US $710 billion and representing a broad cross-section of property investors across the globe participated.
© 2010 Florida Realtors®
In particular, U.S. investors noted markets in California, Texas, New York/New Jersey and Florida, as well as Washington, D.C., Boston, Atlanta, Chicago, Denver and Seattle as key targets.
Further, 60 percent of U.S. real estate investor respondents expect to expand their portfolios in the coming year. An additional three out of 10 expect to maintain the size of their portfolios, with some of those expressing an interest in rebalancing their portfolios among different asset classes.
The survey, which includes investors from around the globe, also determined that the majority of U.S. respondents still believe that the “Property Clock” is at six o’clock, or at the bottom of the cycle. That is in sharp contrast to the average globally, which puts the time at eight o’clock, or at the beginning of an up cycle, but is similar to the U.S. sentiment in the first quarter of 2010.
The Property Clock equates market cycles to specific times of the day, with 12 o’clock representing the top of the market and six o’clock representing the bottom. Each six-hour period in between designates rising (after six o’clock to 12 o’clock) or declining (after 12 o’clock to six o’clock) cycles.
“With the Property Clock at six, it is no wonder why so many investors are seeking to expand their portfolios in the coming year,” said Dylan Taylor, Chief Executive Officer of Colliers International in the U.S. “Investors recognize that prices are at the bottom and see tremendous value in commercial real estate. This kind of positive sentiment expressed by U.S. investors is often a precursor to a more active investment sales market. There is plenty of pent-up demand and the survey suggests investors are ready to get off the sidelines and back into the game.”
The survey also reflected overall positive momentum globally. Survey participants believe that most commercial real estate markets have passed the bottom and are on the rise. Improving markets are characterized by rising demand, falling availability and vacancy and rising headline rents.
Some additional key global findings of Colliers International’s Q3 2010 Global Investor Sentiment Survey include:
• The largest group of respondents put the Global Property Clock for their regions at eight o’clock; the second and third largest groups were at six and seven o’clock, respectively.
• Most Q1 respondents placed their markets at between five and six o’clock.
• Ninety percent of respondents said they planned to expand their current level of real estate holdings within a year or maintain them at current levels.
• New York, Chicago, San Francisco, Washington, London, Sydney, Singapore and Hong Kong were listed as key cross-border investment destinations. Emerging markets mentioned include Poland, Ukraine and Brazil.
• Nearly 80 percent think debt will be easier to access in the next 12 months. Respondents who said they believe the cost of debt would rise in the next 12 months fell slightly from the first quarter of 2010, with 44 percent predicting an increase vs. 52 percent six months ago.
Some additional key regional findings include:
• In Western Europe, 60 percent of respondents intend to make cross-border investments, a notable increase from the figure of 30 percent for Q1 2010.
• 73 percent of Asian investors expect to expand their property portfolio in the next 12 months, up from 65 percent in Q1 2010.
• Looking ahead to the next 12 months, fewer Pacific investors (46 percent) expect to expand their property portfolio compared to the 68 percent who expected to expand in Q1 2010.
• Across Central and Eastern Europe, the range of locations being targeted by investors was quite diverse, although Warsaw remains the most popular destination, notably for office product. Other popular targets quoted were Kiev, Prague, Moscow and Bucharest.
The Q3 2010 Global Investor Sentiment Survey was conducted from Aug. 15 to Sept. 7, 2010. More than 200 major institutional and private investors with holdings of US $710 billion and representing a broad cross-section of property investors across the globe participated.
© 2010 Florida Realtors®
Monday, November 8, 2010
Home Owners Value Home as Investment
The 2010 National Association of Realtors Profile of Home Buyers and Sellers is the latest in a series of large national NAR surveys evaluating demographics, preferences, marketing and experiences of recent homebuyers and sellers.
Although typical sellers had been in their previous home for eight years, up from seven years in the 2009 study, first-time buyers plan to stay for 10 years and repeat buyers plan to hold their property for 15 years.
NAR 2010 President Vicki Cox Golder says the pattern of buyers taking a long-term view has solidified over the past few years. “This underscores two simple facts – homeownership encourages stability; and the longer you own, the better your investment.”
“Sellers who purchased at the top of the market and had to sell in a short timeframe were hurt by the price correction, but the vast majority who are able to stay for a normal period of homeownership generally built enough equity to make a trade-up purchase,” Golder says. “Despite swings in the housing market in recent years, the fact is most long-term owners see healthy gains in the value of their property.”
House flipping is virtually nonexistent in today’s market. “The primary exception is for experienced investors, many of whom pay cash and are making renovations or improvements after a careful study of properties, neighborhoods and market demand,” Golder says. “The house flipping and quick gains which occurred during the boom period were abnormal, driven by risky, easy-money financing that should never have been allowed in the market.”
In the 2006 study, which covered sellers during the close of the housing boom, 6 percent of sellers had owned their property for less than a year and a total of 30 percent had owned for three years or less. In the 2010 study, only 3 percent had owned their home for less than a year and a total of 11 percent had owned for three years or less.
Paul Bishop, NAR vice president of research, says the lion’s share of buyers view their home as a good investment.
“Eighty-five percent of recent homebuyers see their home as a good investment, and nearly half think that investment is better than stocks,” he says. “Even with the turmoil created by the housing boom and bust, this indicates the long-term view of homeownership as a fundamental goal and value remains sound. In fact, the single biggest reason most people buy a home is the simple desire to own a home of their own, cited by 31 percent of respondents, including 53 percent of first-time buyers.”
The next biggest reasons for buying, identified by all homebuyers, were desire for a larger home, 9 percent; a change in family situation and the homebuyer tax credit, cited by 8 percent each; a job-related move, 7 percent; and the affordability of homes, 6 percent. Twelve other categories were 5 percent or less.
The number of first-time homebuyers rose to a record high 50 percent of all home sales from 47 percent in the 2009 study, building on success of the homebuyer tax credit that began in 2009. The previous cyclical high for first-time buyers was 44 percent in 1991; records date back to 1981.
The profile shows the median age of first-time buyers was 30 and the median income was $59,900. The typical first-time buyer purchased a 1,540 square foot home costing $152,000, with 93 percent using the first-time buyer tax credit.
First-time buyers who made a downpayment used a variety of sources: 74 percent used savings, 27 percent received a gift from a friend or relative, typically from their parents, and 9 percent received a loan from a relative or friend. Eight percent tapped into a 401(k) fund, and 6 percent sold stocks or bonds. Ninety-five percent chose a fixed-rate mortgage. Fifty-six percent of entry-level buyers financed their purchase with an FHA loan, while another 7 percent used the VA loan program. Forty-two percent said financing their first home was more difficult than expected and 9 percent had been rejected by a lender.
The shares of entry-level buyers receiving a gift or loan were modestly higher than 2009 when 22 percent received a gift and 6 percent a loan from a relative or friend.
Fifty-eight percent of all buyers are married couples, 20 percent are single women, 12 percent single men, 8 percent unmarried couples and 1 percent other.
Bishop notes that women buyers have accounted for roughly one out of five transactions since the late 1990s, and single men have been at the one in 10 level since 1981. “A modest increase in the share of single men buyers may result from the homebuyer tax credit, but this is the highest share for single men in the history of the study,” he says.
Buyers searched a median of 12 weeks and viewed 12 homes. Fourteen percent of buyers own two or more homes. The typical repeat buyer was 49 years old, earned $87,000, and purchased a 2,000 square foot home costing $215,000.
The median downpayment of all homebuyers was 8 percent, ranging from 4 percent for first-time buyers to 14 percent for repeat buyers.
The median age of home sellers was 49 and their income was $90,000. Sellers moved a median distance of 18 miles and their home was on the market for 8 weeks, down from 10 weeks in the 2009 survey. Half traded up in size, 28 percent bought a comparably sized home and 21 percent traded down.
Sixty-four percent of sellers chose their agent based on a referral or had used the same agent in the past. Reputation was the most important factor in choosing an agent, cited by 35 percent of respondents, followed by trustworthiness at 23 percent. Eighty-four percent of sellers are likely to use the same agent again or recommend to others.
Forty-four percent of sellers offered incentives to attract buyers, such as home warranties or assistance with closing costs. The typical home sold for 96 percent of the listing price, compared with 95 percent in the 2009 profile.
Homebuyers thought the most important services agents offer are helping find the right house, and negotiating sales terms and price. Buyers also most commonly choose an agent based on a referral from a friend, neighbor or relative, with trustworthiness and reputation being the most important factors.
Buyers use a wide variety of resources in searching for a home: 89 percent surf the Internet, 88 percent use real estate agents, 57 percent yard signs, 45 percent attend open houses and 36 percent look at print or newspaper ads. Although buyers also use other resources, they generally start the search process online and then contact an agent.
When asked where they first learned about the home purchased, 38 percent of buyers said the Internet; 37 percent of buyers from a real estate agent; 11 percent a yard sign or open house; 6 percent from a friend, neighbor or relative; 4 percent home builders; 2 percent a print or newspaper ad; 2 percent directly from the seller; and less than 1 percent from a home book or magazine.
Eighty-five percent of homebuyers who used the Internet to search for a home purchased through a real estate agent, while 70 percent of non-Internet users were more likely to purchase directly from a builder or from an owner they already knew in a private transaction.
Local metropolitan multiple listing service websites were the most popular Internet resource, used by 59 percent of buyers; followed by Realtor.com, 45 percent; real estate company sites, 43 percent; real estate agent websites, 42 percent; other websites with real estate listings, 41 percent; and for-sale-by-owner sites, 15 percent; other categories were smaller.
Seventy-seven percent of all buyers purchased a detached single-family home, 9 percent a condo, 8 percent a townhouse or rowhouse, and 6 percent some other kind of housing.
Commuting costs continue to factor strongly in buyer decisions, with three-quarters of buyers saying transportation costs were important.
Environmentally friendly features remain a significant factor: 88 percent of buyers said that heating and cooling costs were important, 71 percent desired energy efficient appliances, and 69 percent wanted energy efficient lighting.
Fifty-two percent of all homes purchased were in a suburb or subdivision, 18 percent were in an urban area, 17 percent in a small town, 11 percent in a rural area and 1 percent in a resort or recreation area. The median distance from the previous residence was 12 miles.
Not surprisingly, for-sale-by-owner transactions reached a record low, accounting for 9 percent of sales in the 2010 study, down from 11 percent in 2009. The share of homes sold without professional representation has trended down since reaching a cyclical peak of 18 percent in 1997. “In a market as challenging as today, it’s clear most home sellers need professional assistance,” Bishop says.
As seen in previous studies, many FSBO properties were not placed on the open market. Factoring out private sales between parties who knew each other in advance such as family or acquaintances, the actual number of homes sold on the open market without professional assistance was a record low 5 percent – the rest were unrepresented sellers in private transactions. The market share of open-market FSBOs is half of what it was six years ago – 10 percent were sold on the open market in 2004.
The median home price for sellers who used an agent was $199,300 vs. $140,000 for a home sold directly by an owner, but there were important differences. The median income of unassisted sellers was $64,000, in contrast with $93,200 for agent-assisted sellers. Unassisted sellers were much more likely to be selling a somewhat smaller home, and they were more likely to be in a rural area. Combined, these factors suggest a lower value for FSBO properties.
The most difficult tasks reported by unrepresented sellers are getting the right price, preparing and fixing the home for sale, understanding and performing paperwork, and selling within the planned length of time.
NAR mailed an eight-page questionnaire in July 2010 to a national sample of 111,004 homebuyers and sellers who purchased their homes between July 2009 and June 2010, according to county records. It generated 8,449 usable responses; the adjusted response rate was 7.9 percent. All information is characteristic of the 12-month period ending in June 2010 with the exception of income data, which are for 2009. Because of rounding and omissions for space, percentage distributions for some findings may not add up to 100 percent.
The 2010 National Association of Realtors® Profile of Home Buyers and Sellers can be ordered by calling 800-874-6500, or online at www.realtor.org/prodser.nsf/Research. The study is free for NAR members though the end of 2010 but costs $125 for non-members.
© 2010 Florida Realtors®
Thursday, November 4, 2010
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