5 Home Buying Myths - DEBUNKED

SEATTLE – Oct. 31, 2011 – Overall, today’s homebuyers tend to be fairly knowledgeable about the real estate market, but there are still a few points of confusion in the process, especially for buyers just entering the market. Here are the five main areas of confusion found in a survey by Zillow:

• Appreciation: About 42 percent of homebuyers believe home values will appreciate by 7 percent a year. Reality: Historically, home values in a normal market appreciate by 2 to 5 percent in a year.

• Appraisals: 56 percent of the buyers said the purpose of the appraisal was to determine if a home was in good condition. Reality: That’s the purpose of a home inspection; an appraisal estimates fair market value.

• Homeowner’s insurance: 37 percent of homebuyers think that buying homeowner’s insurance is optional. Reality: Lenders require homebuyers to purchase homeowner’s insurance if they carry a mortgage.

• Ownership: 47 percent of homebuyers said a prospective buyer owns a home after the purchase contract is signed by the seller – when the two parties reach agreement. Reality: The purchase and sales agreement is the beginning of the closing phase, but it can be a long process until they finally take ownership.

• Mortgage insurance: 41 percent of buyers think they must purchase private mortgage insurance, regardless of the amount of their downpayment. Reality: Buyers only need to purchase PMI if their downpayment is less than 20 percent of the home’s purchase price.

Source: Zillow Inc.

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Pending Home Sales Decline in September

WASHINGTON – Oct. 27, 2011 – Pending home sales declined in September, although activity remains above a year ago, according to the National Association of Realtors® (NAR)’s Pending Home Sales Index (PHSI) released today.

The PHSI, a forward-looking indicator based on contract signings, fell 4.6 percent to 84.5 in September from 88.6 in August but is 6.4 percent higher than September 2010 when it stood at 79.4. The data reflects contracts but not closings.

Lawrence Yun, NAR chief economist, says the housing market is excessively constrained. “A combination of weak consumer confidence and continuing tight lending criteria held back homebuyers, even though the private sector added nearly 2 million net new jobs in the past 12 months,” he says.

The PHSI in the Northeast declined 4.7 percent to 60.6 in September, but it’s 4.0 percent above a year ago. In the Midwest, the index dropped 6.2 percent to 71.5 in September, but remains 12.3 percent higher than September 2010.

Pending home sales in the South fell 5.5 percent in September to an index of 91.6, but it’s 5.0 percent above a year ago. In the West, the index declined 2.1 percent to 105.8 in September, but is 5.6 percent higher than September 2010.

“America’s monetary policy is contradictory and confusing, where some consumers with the best financial capacity and top-notch credit scores pay higher mortgage interest rates,” Yun said. “The Federal Reserve evidently has been attempting to lower mortgage rates, yet more consumers are faced with taking out jumbo loans that carry higher interest rates.”

Yun emphasized the need to reinstate higher loan limits in 42 states.

“Just leaving excessive cash to sit in banks and not work into the economy is a drag on the overall recovery,” he says. “We need a comprehensive approach to address housing issues – not additional impediments.”

© 2011 Florida Realtors®

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More Help for Homeowners under HARP Refinance Program

WASHINGTON – Oct. 24, 2011 – The Federal Housing Finance Agency (FHFA), with Fannie Mae and Freddie Mac, announced a series of changes to the Home Affordable Refinance Program (HARP). FHFA hopes to help more borrowers benefit from a program that refinances home mortgages.

“We know that there are many homeowners who are eligible to refinance under HARP, and those are the borrowers we want to reach,” said FHFA Acting Director Edward J. DeMarco. “Building on the industry’s experience with HARP over the last two years, we have identified several changes that will make the program accessible to more borrowers with mortgages owned or guaranteed by (Fannie Mae and Freddie Mac). Our goal … is to create refinancing opportunities for these borrowers, while reducing risk for Fannie Mae and Freddie Mac and bringing a measure of stability to housing markets.”

HARP is the only refinance program that enables borrowers who owe more than their home is worth to take advantage of low interest rates and other refinancing benefits. The program is offered to borrowers whose loans were sold to Fannie Mae and Freddie Mac on or before May 31, 2009, with current loan-to-value (LTV) ratios above 80 percent.

New program enhancements change several aspects of HARP including:

• Eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages, and lowering fees for other borrowers.

• Removing the current 125 percent LTV ceiling for fixed-rate mortgages backed by Fannie Mae and Freddie Mac.

• Waiving certain representations and warranties for lenders that make loans backed by Fannie Mae and Freddie Mac.

• Eliminating a new property appraisal if there is a reliable AVM (automated valuation model) estimate provided by Fannie Mae or Freddie Mac.

• Extending the end date for HARP until Dec. 31, 2013, for loans originally sold on or before May 31, 2009.

Mortgage lenders should have more information about the HARP program changes by Nov. 15, 2011. Since participation isn’t mandatory, implementation schedules will vary.

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $5.7 trillion in funding for the U.S. mortgage markets and financial institutions.

© 2011 Florida Realtors®

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Florida Home and Condo Sales UP

ORLANDO, Fla. – Oct. 20, 2011 – Florida’s existing home and existing condo sales continued their upswing in September, according to the latest housing data released by Florida Realtors®. Existing home sales increased 10 percent last month with a total of 15,036 homes sold statewide compared to 13,723 homes sold in September 2010, according to Florida Realtors.


“One of the most overlooked statistical trends in all of real estate is the growth in home sales, both single-family and condo, in the state of Florida,” said Florida Realtors Chief Economist Dr. John Tuccillo. “We’ve seen an upward trend in sales since January 2011, and September’s sales were a full 10 percent above September 2010. Even prices, which have been static over the past few months, are well above where they were in January 2011.

“One of the reasons for this is stabilization in the distressed property market. This is not a problem that’s going away, but there’s a degree of certainty that is helping the market.”

Fifteen of Florida’s metropolitan statistical areas (MSAs) reported higher existing home sales in September; 11 MSAs had higher existing condo sales.

The statewide median sales price for existing homes last month was $133,900; a year ago, it was $135,000 for only a 1 percent decrease. According to analysts with the National Association of Realtors® (NAR), 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. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in August 2011 was $168,400, down 5.4 percent from a year ago, according to NAR. In California, the August statewide median resales price was $297,060; in Maryland, it was $241,564; and in New York, it was $220,000.

In Florida’s year-to-year comparison for condos, 6,666 units sold statewide in September, a 10 percent gain over the 6,035 units sold in September 2010. The statewide existing condo median sales price last month was $87,200; a year earlier, it was $81,800 for a 7 percent increase.

“Historically low mortgage rates and stabilizing home prices all across Florida’s local housing markets continue to attract potential buyers – housing affordability conditions are very favorable right now,” said 2011 Florida Realtors President Patricia Fitzgerald, manager/broker-associate with Illustrated Properties in Hobe Sound and Mariner Sands Country Club in Stuart. “However, financially qualified buyers are still being denied home loans because of overly restrictive lending requirements, and that’s a significant obstacle to the housing recovery.”

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.11 percent in September, down from the 4.35 percent average during the same month a year earlier. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

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The "Shadow" Inventory Lurks in Florida

ORLANDO, Fla. – Oct. 18, 2011 – When you drive down the street, you can see a “for sale” sign on nearly every road. The supply of homes may seem overwhelming at times, and we are definitely in a buyers’ market. But in August, the National Association of Realtors (NAR) reported an 8.5-month inventory level, close to the six-month level that historically signals a balanced market. Even so, there’s a general feeling of uneasiness about the market.
The reason for this anxiety, notes Erica Cross, research analyst with the Florida Realtors, is likely due to “shadow inventory” – homes placed in foreclosure or owned by lenders, and loans overdue by at least one payment. We feel their looming presence, even though a “for sale” sign hasn’t appeared in the front yard.

But how much shadow inventory is out there? The amount depends on its definition. How delinquent must a property be to include it in shadow inventory – 1 day, 90 days? Is it assumed that any of the delinquencies will improve? Are foreclosure properties included?

With all of these different questions, estimates of shadow inventory in March 2010 ranged from 1.7 million to 7 million, according to NAR. The number of homes in shadow inventory is uncertain; more importantly, so is the timing of their exact release to the market.

Shadow inventory going to market

Let’s imagine two scenarios. First, think of a situation where banks slowly release shadow inventory to the market. Foreclosures are currently weighing down home prices, so this trend would continue. But if a balance between those foreclosures coming on the market and those being sold is maintained, market stability will continue. The supply of homes would be restricted.

Now picture a more drastic case. What if banks dumped all of the homes they own on the market all at once? The increase of supply would cause a decline in price, a drop most likely affecting home prices negatively across the board. Since demand cannot respond quickly, the price drop would have a tremendous impact on the market.

In turn, a drop in home prices would have a harmful impact on home equity and consumer confidence, leading to less consumer spending and more of the economic issues we are currently trying to resolve.

Can it be managed?

Banks aren’t the only players in the “disposing of homes” game. Homeowners also control the number of homes in shadow inventory. A homeowner in trouble can decide whether to pay the mortgage, seek mitigation or walk away. Think of it like a bathtub. Currently, the amount of bank-owned homes fills part of the tub. The disposing of homes into the market is like letting the drain open. Homeowners going into foreclosure can add more homes to the shadow inventory – like opening a faucet into the tub. If there is more water (homes) being added by the faucet than there is water (homes) being drained (or sold), the bathtub will fill and overflow. The flooding of the bathtub means that banks can only hold so many homes or they will need to dump homes on the market.

The government affects the supply of shadow inventory through the Home Affordable Modification Program (HAMP). HAMP allows homeowners to modify their mortgage payments to 31 percent of their pre-tax income to make them more affordable. If homeowners meet the HAMP criteria and can reduce the amount of their mortgage payments, they are less likely to default. Stricter eligibility or removal of HAMP would cause more delinquencies and foreclosures. Easier eligibility could prevent delinquencies and foreclosures and lower the shadow inventory count.

What to do

Banks, homeowners and the government can modify their actions to speed up or slow down the amount of inventory added to the current supply. With each player making different moves, the moral of the story is that the timing and number of distressed properties in the market can’t be predicted. We do know it will affect your business, so monitor your local market closely. Communicate with lenders so you know the business decisions they are making, and work with distressed homeowners to help mitigate their debt burdens.

Source: Erica Cross, research analyst, Florida Realtors

© 2011 Florida Realtors®

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Ten Reasons to Own vs. Rent

WOODLAND HILLS, Calif. – Oct. 17, 2011 – In an era of foreclosures, buyers focus on financial reasons for purchasing, but ownership has emotional rewards too. A California condo developer, the Met Warner Center, put together the following list – but it applies from Florida to Alaska.







Top 10 reasons to own rather than rent

1. You own it: With no landlord, you make the decisions.

2. You deduct it: Mortgage interest, property taxes and some costs involved with buying a home can be deducted from federal income taxes.

3. Interest rates: The cost to borrow mortgage money is at an all-time low. If you’re going to buy, this is the time to jump into the market.

4. You invest in it: Rent money is gone forever. Mortgage payments build home equity ownership interests.

5. You save for the future: Home equity is a ready-made savings plan. Sell it and you can make up to $250,000 cash without owing any federal income tax on the profit.

6. You can predict expenses: Unlike rent, a fixed-mortgage payment doesn’t get more expensive over time.

7. You pick it: Choose from different neighborhoods, styles and price ranges.

8. You create it: Decorate, renovate, get a pet or paint the walls whatever color you want – it belongs to you.

9. You live in a neighborhood: You and your neighbors take pride in the local schools, roads and more – and you work together to build a friendly community.

10. You spend money on yourself: When you buy a chandelier or hardwood floor or kitchen cabinet, you’re spending hard-earned money on yourself and building your equity at the same time.

© 2011 Florida Realtors®

FannieMae Survey on National Housing -

New Data Provides Timely Insights into Key Consumer Attitudes Driving Housing Decisions

WASHINGTON, DC – Americans are still very pessimistic about the economy, home prices, and household finances, according to results from Fannie Mae's September National Housing Survey. Findings demonstrate that consumers are paying close attention to economic news and what policymakers are saying, and continue to link their personal financial situations with the current macro economic environment.

“The September survey showed a marked deterioration in consumer expectations of home prices over the next year—their weakest outlook since monthly tracking began in June 2010,” said Doug Duncan, vice president and chief economist of Fannie Mae. “Despite a decline in negative economic headlines during September – in contrast to their ubiquity during the debt ceiling debate in August – consumers continue to demonstrate very negative attitudes. At the same time, the share of consumers expecting mortgage rates to go up dropped sharply to the lowest level we have recorded, likely influenced by the news that the Federal Reserve will attempt to keep interest rates low for years to come.”

“The lack of a sense of urgency to buy homes, given expectations for further declines in home prices and continued low mortgage rates, coupled with general pessimism regarding their own personal finances and the economy, bodes poorly for the recovery of the housing market,” Duncan stated.

SURVEY HIGHLIGHTS

Homeownership and Renting

Americans noted a very large decline in their expectation for mortgage rates in September, with only 33 percent saying that mortgage rates will go up in the next 12 months (down 12 percentage points since August – the lowest number we have recorded in our monthly tracking).

For the fourth month in a row, Americans expect home prices to decline over the next year. On average, Americans expect home prices to go down by 1.1 percent, the highest expected decline to date.

Only 18 percent of respondents expect home prices to increase over the next 12 months (the lowest reported number to date in the National Housing Survey), while 25 percent say they expect home prices to decline (down by 2 percentage points since August).

While 68 percent of Americans say it is a good time to buy a home (down 1 percentage point since last month), only 10 percent of those polled say it is a good time to sell one’s home (up by 1 percentage point since August).

On average, Americans expect home rental prices to go up by 3.3 percent over the next year, down slightly from the expected increase of 3.5 percent observed in August.

Despite continued consumer caution about taking on a large financial obligation to buy a home, 63 percent say they would buy their next home if the were going to move (up by 1 percentage point since August), while 32 percent of Americans say they would rent their next home (down 2 percentage points since last month).

The Economy and Household Finances

Seventy-seven percent of Americans say the economy is on the wrong track (down only 1 percentage point from last month), while only 16 percent think the economy is on the right track (the same as in August).

The number of Americans who expect their personal financial situation to worsen over the next year has decreased for the first time in four months (down from 22 percent in August to 19 percent in September).

Forty-three percent of Americans report significantly higher expenses compared to one year ago. This number has increased for five consecutive months, while the majority of respondents say their household income has remained the same.

The most detailed consumer attitudinal survey of its kind, the Fannie Mae National Housing Survey polled 1,002 Americans via live telephone interview to assess their attitudes toward owning and renting a home, mortgage rates, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts (findings are compared to the same survey conducted monthly beginning June 2010). Fannie Mae conducts this survey and shares monthly and quarterly results so that we may help industry partners and market participants target our collective efforts to stabilize the housing market in the near-term, and provide support in the future.

For detailed findings from the September 2011 survey, as well as technical notes on survey methodology and the questions asked of respondents associated with each monthly indicator, please visit the Fannie Mae Monthly National Housing Survey site. Also available on the site are quarterly survey results, which provide a detailed assessment of combined data results from three monthly studies. The September 2011 Fannie Mae National Housing Survey was conducted between September 6, 2011 and September 25, 2011. Interviews were conducted by Penn Schoen Berland, in coordination with Fannie Mae.

House Subcommittee Told that Home Ownership Integral to Nation's Economy

WASHINGTON – Oct. 14, 2011 – National Association of Realtors® (NAR) President-Elect and 2002 President of Florida Realtors Moe Veissi testified yesterday before a U.S. House subcommittee. He told lawmakers that owning a home has had long-standing government support in the U.S. because homeownership benefits individuals and families, strengthens communities, and is integral to the nation’s economy.


Veissi outlined NAR’s recommendations for housing finance reform before the House Financial Services Subcommittee on International Monetary Policy and Trade.

“We must be better stewards of the U.S. housing finance system if it is to thrive and effectively serve American homebuyers and mortgage investors into the future,” Veissi said. “Repairs to our current housing finance structure must be made, but we must be careful that changes … do not come at the expense of homeownership opportunities for middle- and lower income Americans.”

Toward that end, NAR supports H.R. 2413, the “Secondary Market Facility for Residential Mortgage Act of 2011,” introduced by Reps. Gary Miller, R-Calif., and Carolyn McCarthy, D-N.Y.

“H.R. 2413 offers a comprehensive strategy for reforming the secondary mortgage market and gives the federal government a continued role to ensure a consistent flow of mortgage credit in all markets and all economic conditions,” said Veissi. “Moreover, it supports the use of long-term fixed-rate mortgage products.”

Veissi testified that full privatization of the secondary mortgage market – largely Fannie Mae and Freddie Mac – would all but eliminate products like the 30-year fixed-rate mortgage. It would create higher mortgage interest rates and shut otherwise qualified buyers out of the market.

“The 30-year fixed-rate mortgage is the bedrock of the U.S. housing finance system,” Veissi testified. “Without government support, there’s no evidence that this type of mortgage would continue to exist. Private firms’ business strategies would focus on optimizing their profits (by) creating mortgage products that are more aligned with the goals of their business than in the best interests of … consumers.”

Veissi said that government’s participation in the mortgage market should decrease if private capital returns, but the federal government must continue to have a role in the secondary mortgage market.

“Continuing government participation in the secondary mortgage market is critical to ensure that qualified homebuyers can obtain safe and sound mortgage financing products even during market downturns, when private entities have historically pulled back,” Veissi said.

Recent reductions to conforming loan limits are already having an impact, according to early data from an NAR survey, which found that consumers above the new lower limit are must pay significantly higher interest rates and substantially larger downpayments.
“For hundreds of years, this country has understood the value of homeownership because it helps families build wealth, supports community stability and contributes to our economy,” Veissi said. “We need to make sure that future housing policies continue to reinforce our long-standing value of homeownership, for the future of our families and our country.”
© 2011 Florida Realtors®

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Baby Boomers Pent Up Demand for Second Homes

CHICAGO – Oct. 13, 2011 – The fragile economy is causing more baby boomers to delay selling their homes, even though they want to, according to a new survey from Coldwell Banker Real Estate, which surveyed about 1,300 agents to gauge home selling and buying behavior among the baby boomer generation.

However, there is still a strong desire for investment properties and second homes among this generation.

“The baby boomer generation has driven the U.S. economy for years, and like many Americans, they may be anxious about their next real estate decision,” Jim Gillespie, CEO of Coldwell Banker Real Estate, said in a statement. “I know baby boomers are a very diverse group and cannot be described in generalities, but our survey clearly indicates that boomers who are financially secure are actively seeking to buy their retirement home, or a second home.”

Among the survey’s findings:

• More than one-third (34 percent) of real estate professionals say younger baby boomers (those aged 47-55) are interested in purchasing a second home. Meanwhile, about 22 percent of older baby boomers (ages 56-64) are interested in buying a second home.

• 31 percent of younger baby boomers (47-55) are looking to sell their current home and trade up to a larger home, while only 6 percent of older baby boomers desire a larger home. For the majority of baby boomers looking to downsize, their primary reason is for a simpler lifestyle.

Source: Melissa Dittmann Tracey, Realtor® Magazine Daily News

© 2011 Florida Realtors®

Tampa Bay Market Data \ Housing Pasco, Pinellas and Hillsborough

National outlook impacts housing market - Consumers and Economic News

WASHINGTON – Oct. 12, 2011 – American consumers pay close attention to economic news and what policymakers say, and they continue to link their personal financial outlook to events occurring nationally. As a result, Fannie Mae’s September National Housing Survey finds most consumers still pessimistic about the economy, home prices and household finances.

“Despite a decline in negative economic headlines during September … consumers continue to demonstrate very negative attitudes,” says Doug Duncan, vice president and chief economist of Fannie Mae. “At the same time, the share of consumers expecting mortgage rates to go up dropped sharply to the lowest level we have recorded. The lack of a sense of urgency to buy homes … coupled with general pessimism regarding their own personal finances and the economy, bodes poorly for the recovery of the housing market.”

Survey highlights

Homeownership and renting

• Only 33 percent of Americans say that mortgage rates will go up in the next 12 months (down 12 percentage points since August – the lowest number recorded in Fannie Mae’s monthly tracking).

• For the fourth month in a row, Americans expect home prices to decline over the next year. On average, Americans expect home prices to go down by 1.1 percent, the highest expected decline to date.

• Only 18 percent of respondents expect home prices to increase over the next 12 months, the lowest reported number to date in the National Housing Survey, while 25 percent say they expect home prices to decline (down by 2 percentage points since August).

• While 68 percent of Americans say it is a good time to buy a home (down 1 percentage point since last month), only 10 percent of those polled say it is a good time to sell one’s home (up by 1 percentage point since August).

• On average, Americans expect home rental prices to go up by 3.3 percent over the next year, down slightly from the expected increase of 3.5 percent observed in August.

• Despite continued consumer caution about taking on a large financial obligation to buy a home, 63 percent say they would buy their next home if they were going to move (up by 1 percentage point since August), while 32 percent of Americans say they would rent their next home (down 2 percentage points since last month).

The economy and household finances

• The number of Americans who expect their personal financial situation to worsen over the next year has decreased for the first time in four months (down from 22 percent in August to 19 percent in September).

• Seventy-seven percent say the economy is on the wrong track (down only 1 percentage point from last month), while only 16 percent think the economy is on the right track (the same as in August).

• Forty-three percent report significantly higher expenses compared to one year ago. This number has increased for five consecutive months, but the majority of respondents still say their household income has remained the same.

© 2011 Florida Realtors®

Economic Outlook for Florida

NEW YORK – Oct. 11, 2011 – Wells Fargo released its Economic Outlook for Florida yesterday, and the news was positive, though not by much. The company says the state is recovering more quickly that the nation in general, but part of the reason is that the state fell so far during the crash.


Still, the recession officially ended in 2009 and Wells Fargo economist Mark Vitner say the chance of a second recession is relatively low. However, he also thinks the recovery will be anything but robust, calling it “incredibly sluggish.”

For a housing recovery, jobs are key, and the report foresees a total of 40,000 new jobs added by the end of this year and an additional 64,000 in 2012.

Vitner says Florida’s recovery seems to have some legs as it expands beyond the tourism and health areas. The report points to an upswing of jobs, albeit small, in retail and trade, as well as professional and business jobs.

Wells Fargo report predictions

• Foreclosures will continue to impact home prices.

• The number of foreign investors could decline. European money problems have dampened demand from across the Atlantic, while a weaker Canadian dollar has impacted the value to Canadians. The flow of investors from the Americas has also declined.

• People will continue to move to Florida, though at a still-subdued pace: an expected 110,000 in 2011 and predicted 130,000 in 2012.

• The Florida economy will continue to grow. Wells Fargo predicts 2 percent in 2011 and 2.2 percent in 2012.

• Floridians’ personal income will also grow: 4.2 percent in 2011 and 4.3 percent in 2012.

• Home construction, while improving, won’t hit its full stride again – 1.2 million new homes – until 2015.

The full Wells Fargo report is available online.

Source: St. Petersburg Times, Jeff Harrington

© 2011 Florida Realtors®

Pinellas County Home Market Analysis October 2011

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2010 census: Second highest homeownership rate on record

WASHINGTON – Oct. 7, 2011 – The U.S. Census Bureau yesterday released a 2010 Census brief, “Housing Characteristics: 2010.” It found that the homeownership rate in 2010 was the second highest of all once-per-decade surveys conducted since 1890. It was surpassed only by the homeownership rate in 2000.

The 2010 rate decreased by 1.1 percentage points to 65.1 percent since 2000 and 2010. While second highest on record the decrease over 10 years is also the largest drop since the period from 1930 to 1940, which covered the Great Depression.

Housing inventory grew most in South and West

The national housing inventory increased by 15.8 million units, or 13.6 percent, from 2000 to 2010. The housing inventory increased in all states during the decade but grew faster in the South and West than in the Midwest and Northeast.

The South, which includes Florida, grew 17.9 percent to 50 million units; the West grew 17.3 percent to 28.6 million units. In contrast, the Midwest grew by 9.3 percent to 29.5 million units; the Northeast grew by 6.6 percent to 23.6 million units.

States with the largest percentage increase in housing units were in either the West or the South: Nevada (41.9 percent), Arizona (29.9 percent), Utah (27.5 percent), Idaho (26.5 percent), Georgia (24.6 percent), Florida (23.1 percent), North Carolina (22.8 percent), Colorado (22.4 percent), Texas (22.3 percent) and South Carolina (21.9 percent).

No states in the Midwest or the Northeast had a percentage change in housing inventory greater than the national increase of 13.6 percent. In the Northeast, housing units in Pennsylvania (6.0 percent), New York (5.6 percent) and Rhode Island (5.4 percent) increased less than both the nation and the Northeast as a whole (6.6 percent).

West Virginia had the lowest percentage increase of any state at 4.4 percent.

Metro areas have more homeowners, major cities have more renters

As a percentage of the entire national inventory, more than a third of all owner-occupied homes (38.3 percent) and renter-occupied homes (35.6 percent) were in the South. The homeownership rate in the Midwest was 69.2 percent followed by the South (66.7 percent), the Northeast (62.2 percent) and the West (60.5 percent). Homeownership rates decreased in each region from 2000 to 2010.

West Virginia (73.4 percent) and Minnesota (73.0 percent) had the highest homeownership rates in 2010 as well as 2000. The states with the next highest homeownership rates in 2010 were Michigan (72.1 percent), Iowa (72.1 percent), and Delaware (72.1 percent). As in 2000, New York had the lowest percentage of homeowners at 53.3 percent.

With a homeownership rate of 49.5 percent, Manhattan, Kan., was the only metro area where renters outnumbered homeowners. In 2000, five metro areas had more renters than homeowners.

The metro areas with the highest homeownership rates can be found primarily in Michigan and Florida, where each had three metro areas in the top 10. Monroe, Mich., had the highest percentage of owner-occupied units at 79.8 percent, followed by Punta Gorda, Fla. (79.7 percent), Holland-Grand Haven, Mich. (78.2 percent), Bay City, Mich. (77.8 percent) and Barnstable, Mass. (77.4 percent).

While homeowners were the majority in most of the nation’s metro areas, they were outnumbered by renters in many of the country’s largest cities, including the four most populous cities. This was similar to 2000. In New York, renters made up 69.0 percent of households, followed by Los Angeles (61.8 percent), Chicago (55. 1 percent) and Houston (54.6 percent).

Similar to metro areas, homeowners were the majority in most of the nation’s counties. Homeowners outnumbered renters in all but 1.5 percent of the 3,143 counties and equivalent areas in the country. The counties with the highest homeownership rates were Keweenaw County, Mich. (89.8 percent), Sumter County, Fla. (89.7 percent), Alcona County, Mich. (89.6 percent), Morgan County, Utah (89.1 percent) and Powhatan County, Va. (88.5 percent).

Despite most counties having a majority of homeowners, many saw a decrease in the homeownership rate and an increase in renter occupancy. The largest percentage point increases in renter occupancy were in Loving County, Texas (19.8), Manassas Park, Va. (13.2), and Madison County, Idaho (10.9). Only 14 counties had more than a 5-percentage point increase in their homeownership rates.

Every region and all but three states experienced a percentage point increase in their gross vacancy rate during the decade. Nevada led all states with both the largest percent increase in total housing units and the largest percentage point increase in the gross vacancy rate. Only three states, New Mexico (-0.9), Wyoming (-0.2) and Hawaii (-0.1), experienced a decrease in their gross vacancy rates.

Vacant units

Many states with the highest homeowner vacancy rates also had the highest rental vacancy rates in 2010. The homeowner vacancy rate is the proportion of homeowner inventory unoccupied and “for sale,” and the rental vacancy rate is the proportion of the rental inventory that is unoccupied and “for rent.”

Of the top 10 states for homeowner vacancy rates, eight were also in the top 10 for rental vacancies: Alabama, Arizona, Florida, Georgia, Michigan, Nevada, North Carolina and South Carolina.

© 2011 Florida Realtors®