WASHINGTON – June 27, 2012 – Pending home sales bounced back in May, matching the highest level in the past two years and well above year-ago levels, according to the National Association of Realtors® (NAR). Every region saw monthly and annual gains.
NAR’s Pending Home Sales Index (PHSI), a forward-looking indicator based on contract signings, rose 5.9 percent to 101.1 in May from 95.5 in April; and it’s 13.3 percent above May 2011 when it was 89.2. The data reflect contracts but not closings.
The index also reached 101.1 in March, which is the highest level since April 2010, though at that time, buyers were rushing to beat the deadline for the homebuyer tax credit.
“The housing market is clearly superior this year compared with the past four years,” said Lawrence Yun, NAR chief economist. “The latest increase in home contract signings marks 13 consecutive months of year-over-year gains. Actual closings for existing-home sales have been notably higher since the beginning of the year, and we’re on track to see a 9 to 10 percent improvement in total sales for 2012.”
The national median existing-home price is expected to rise 3.0 percent this year and another 5.7 percent in 2013.
The PHSI in the Northeast increased 4.8 percent to 82.9 in May and is 19.8 percent above May 2011. In the Midwest, the index rose 6.3 percent to 98.9 in May and is 22.1 percent higher than a year ago. Pending home sales in the South increased 1.1 percent to an index of 106.9 in May and are 11.9 percent above May 2011. In the West the index jumped 14.5 percent in May to 108.7 and is 4.8 percent stronger than a year ago.
Pending home sales could be even higher, but low inventory could be holding back sales in some areas – a relatively new challenge.
“If credit conditions returned to normal, and if we had more inventory, especially in the lower price ranges, more people would become successful buyers,” Yun said. “In an environment of historically favorable housing affordability conditions, it’s frustrating to see some consumers thwarted in the process.”
Low inventory results partly from underwater homeowners who are unwilling to list their homes, which would require a lengthy short sale process or additional cash to complete the transaction. NAR estimates 85 percent of homeowners have positive equity, with 15 percent underwater.
“Low inventory can be cured by increasing new home construction,” Yun says. He projects housing starts to rise by 26 percent this year and another 50 percent in 2013.
“If housing starts do not rise in a meaningful way over the next two years due to the difficulty in getting construction loans, and barring an unexpected shift in the economy, the steady shedding of inventory could lead to shortages where home prices could get bid up close to 10 percent in 2013,” Yun said.
© 2012 Florida Realtors®
Wednesday, June 27, 2012
International Buyers of Residential Properties: Purchases by State
Most states have at least a few purchases of residential properties by foreign buyers. However, according to the 2012 Profile of International Home Buying Activity, foreign buyers of residential properties are concentrated in four states: Florida, California, Texas, and Arizona, accounting for 51 percent of international clients. Florida has been the fastest growing destination of choice, accounting for 26% of international clients.
What Does This Mean to Realtors®?
International clients have specific interests and needs. Information on addressing this market is available at http://www.realtor.org/global.
International clients have specific interests and needs. Information on addressing this market is available at http://www.realtor.org/global.
Florida housing market continues positive track in May
ORLANDO, Fla. – June 21, 2012 – Pending sales, closed sales and median prices rose, while the inventory of homes and condos for sale dropped in Florida’s housing market in May, according to the latest housing data released by Florida Realtors®.
“The recovery in Florida’s housing market and economy continues to grow stronger and stronger,” said 2012 Florida Realtors President Summer Greene, regional manager of Better Homes and Gardens Real Estate Florida 1st in Fort Lauderdale. “Realtors across the state are reporting increased activity – in May, statewide pending sales were up 43.1 percent for existing single-family homes and up 33.4 percent for townhome-condo properties. In some areas, a shortage of for-sale inventory is resulting in multiple bids from buyers and rising price conditions.
“Now, more than ever, successful buyers and sellers are realizing the value of working with a Realtor who knows their local markets.”
Pending sales refer to contracts that are signed but not yet completed or closed; closed sales typically occur 30 to 90 days after sales contracts are written.
The statewide median sales price for single-family existing homes in May was $147,000, up 8.9 percent from the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. The statewide median for townhome-condo properties was $112,000, up 14.3 percent over May 2011.
The national median sales price for existing single-family homes in May 2012 was $182,900, up 7.7 percent from the previous year, according to the National Association of Realtors® (NAR). In California, the statewide median sales price for single-family existing homes in May was $312,110; in Maryland, it was $259,207; and in New York, it was $208,000.
The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.
Statewide sales of existing single-family homes totaled 18,723 in May, up 7.2 percent, compared to the year-ago figure. Looking at Florida’s year-to-year comparison for sales of townhomes/condos, a total of 9,995 units sold statewide last month, up 5.4 percent from those sold in May 2011. NAR reported the national median existing condo price in May 2012 was $180,000.
Last month, the inventory for both single-family homes and for townhome-condo properties stood at a 5.5-month supply, according to Florida Realtors.
“Some very positive trends have been developing in the Florida market, and the May numbers indicate those trends are continuing,” said Florida Realtors Chief Economist Dr. John Tuccillo. “Closed sales, pending sales and prices – both average and median – are strongly above where they were a year ago. In fact, average prices have increased in 11 of the past 12 months.
“In addition, home sellers are receiving a higher percentage of their asking price, a trend we’ve seen for nine months. Perhaps the most striking characteristic of this market has been the dramatic drop in inventories. Now, Florida is in what is generally considered a balanced market – that is, one that favors neither buyers nor sellers.”
The interest rate for a 30-year fixed-rate mortgage averaged 3.80 percent in May 2012, down from the 4.64 percent average during the same month a year earlier, according to Freddie Mac.
To see the full statewide housing activity report, go to Florida Realtors website at www.floridarealtors.org, and click on the Research page; then look under Latest Housing Data, Statewide Residential Activity and get the May report. Or go to Florida Realtors Media Center at http://media.floridarealtors.org/ and download the May 2012 data report PDF under Market Data at: http://media.floridarealtors.org/market-data.
“The recovery in Florida’s housing market and economy continues to grow stronger and stronger,” said 2012 Florida Realtors President Summer Greene, regional manager of Better Homes and Gardens Real Estate Florida 1st in Fort Lauderdale. “Realtors across the state are reporting increased activity – in May, statewide pending sales were up 43.1 percent for existing single-family homes and up 33.4 percent for townhome-condo properties. In some areas, a shortage of for-sale inventory is resulting in multiple bids from buyers and rising price conditions.
“Now, more than ever, successful buyers and sellers are realizing the value of working with a Realtor who knows their local markets.”
Pending sales refer to contracts that are signed but not yet completed or closed; closed sales typically occur 30 to 90 days after sales contracts are written.
The statewide median sales price for single-family existing homes in May was $147,000, up 8.9 percent from the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. The statewide median for townhome-condo properties was $112,000, up 14.3 percent over May 2011.
The national median sales price for existing single-family homes in May 2012 was $182,900, up 7.7 percent from the previous year, according to the National Association of Realtors® (NAR). In California, the statewide median sales price for single-family existing homes in May was $312,110; in Maryland, it was $259,207; and in New York, it was $208,000.
The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.
Statewide sales of existing single-family homes totaled 18,723 in May, up 7.2 percent, compared to the year-ago figure. Looking at Florida’s year-to-year comparison for sales of townhomes/condos, a total of 9,995 units sold statewide last month, up 5.4 percent from those sold in May 2011. NAR reported the national median existing condo price in May 2012 was $180,000.
Last month, the inventory for both single-family homes and for townhome-condo properties stood at a 5.5-month supply, according to Florida Realtors.
“Some very positive trends have been developing in the Florida market, and the May numbers indicate those trends are continuing,” said Florida Realtors Chief Economist Dr. John Tuccillo. “Closed sales, pending sales and prices – both average and median – are strongly above where they were a year ago. In fact, average prices have increased in 11 of the past 12 months.
“In addition, home sellers are receiving a higher percentage of their asking price, a trend we’ve seen for nine months. Perhaps the most striking characteristic of this market has been the dramatic drop in inventories. Now, Florida is in what is generally considered a balanced market – that is, one that favors neither buyers nor sellers.”
The interest rate for a 30-year fixed-rate mortgage averaged 3.80 percent in May 2012, down from the 4.64 percent average during the same month a year earlier, according to Freddie Mac.
To see the full statewide housing activity report, go to Florida Realtors website at www.floridarealtors.org, and click on the Research page; then look under Latest Housing Data, Statewide Residential Activity and get the May report. Or go to Florida Realtors Media Center at http://media.floridarealtors.org/ and download the May 2012 data report PDF under Market Data at: http://media.floridarealtors.org/market-data.
Confidence in Current Residential Markets Up
The REALTORS® Confidence Index is an indicator of housing market strength. Conditions are measured as “strong” (100 points), “moderate” (50 points), and “weak” (0 points). The overall ratings are the averages of responses. A score of 50 is the threshold between a “strong” and a “weak” condition. Realtor® confidence in the market outlook is presented in terms of the current market and the market outlook for the next six months for single family, townhouse, and condo markets.
Single Family Properties: Confidence is Rising—Well Above Moderate.
Townhouse Properties: Confidence Improving–Approaching Moderate.
Condominiums: Confidence Still Relatively Low, But Improving Substantially.
Single Family Properties: Confidence is Rising—Well Above Moderate.
Condominiums: Confidence Still Relatively Low, But Improving Substantially.
Are Banks ‘Hoarding Foreclosures’?
Recent housing surveys are showing an uptick in home prices, particularly in cities in warm-weather “sand states” that had been hard-hit during the housing slump, such as in Phoenix, Las Vegas, Miami, and Tampa. But some housing experts worry that the lift in prices may be temporary due to banks “hoarding foreclosures.”
Some real estate professionals allege that the “synthetically pumped prices” are being caused by “banks stockpiling foreclosed properties and purposely keeping them off the market until area prices truly soar.”
For example, in Phoenix, in the “sand state” of Arizona, home prices have been soaring the past six months.
But real estate professional Michelle Tremblay, with West USA Realty in Phoenix, tells MSNBC: “We can see on the street what’s vacant and what’s not. We’re watching these [foreclosed and non-listed] houses just sit and rot. The banks are letting these houses just deteriorate. They’re holding them and releasing them slowly to drive the value up.”
Some markets are seeing a decrease in inventory of for-sale homes, which has helped lift home prices in some areas due to an increase in demand but limited supply. But real estate professionals say they’re concerned what will be temporary when banks start releasing more foreclosures to the market. Some have accused banks of purposely holding onto foreclosures to wait for home prices to recover so that they can get higher returns for the homes, but real estate experts are concerned that could stall the housing recovery.
However, Mark Vitner, Wells Fargo senior economist, asserts that large banks are not hoarding foreclosures and waiting for prices to perk up.
"I don't think there's any concerted effort to hold properties back from the market," Vitner told MSNBC.com. "The process to [work through and re-sell] foreclosure inventory is lengthy and there just seems to be a lot of hurdles out there to getting these properties to market. A lot of the best properties have been in foreclosure and have already sold."
Backing up that assertion, CoreLogic, a market analytics service, reports that residential shadow inventory -- which includes foreclosures -- fell to 1.5 million units in April, a 14.8 percent drop from the same month one year earlier.
Source: “Home Prices Higher for Third Straight Month as ‘Sand States’ Drift Away From Crisis,” MSNBC.com (June 26, 2012)
Some real estate professionals allege that the “synthetically pumped prices” are being caused by “banks stockpiling foreclosed properties and purposely keeping them off the market until area prices truly soar.”
For example, in Phoenix, in the “sand state” of Arizona, home prices have been soaring the past six months.
But real estate professional Michelle Tremblay, with West USA Realty in Phoenix, tells MSNBC: “We can see on the street what’s vacant and what’s not. We’re watching these [foreclosed and non-listed] houses just sit and rot. The banks are letting these houses just deteriorate. They’re holding them and releasing them slowly to drive the value up.”
Some markets are seeing a decrease in inventory of for-sale homes, which has helped lift home prices in some areas due to an increase in demand but limited supply. But real estate professionals say they’re concerned what will be temporary when banks start releasing more foreclosures to the market. Some have accused banks of purposely holding onto foreclosures to wait for home prices to recover so that they can get higher returns for the homes, but real estate experts are concerned that could stall the housing recovery.
However, Mark Vitner, Wells Fargo senior economist, asserts that large banks are not hoarding foreclosures and waiting for prices to perk up.
"I don't think there's any concerted effort to hold properties back from the market," Vitner told MSNBC.com. "The process to [work through and re-sell] foreclosure inventory is lengthy and there just seems to be a lot of hurdles out there to getting these properties to market. A lot of the best properties have been in foreclosure and have already sold."
Backing up that assertion, CoreLogic, a market analytics service, reports that residential shadow inventory -- which includes foreclosures -- fell to 1.5 million units in April, a 14.8 percent drop from the same month one year earlier.
Source: “Home Prices Higher for Third Straight Month as ‘Sand States’ Drift Away From Crisis,” MSNBC.com (June 26, 2012)
Buying is Cheaper Than Renting in Nearly All Major Cities
Home buying is the smarter choice than renting, according to Trulia’s Winter 2012 Rent vs. Buy Index.
Buying a home is more affordable than renting in 98 of the nation’s 100 largest metro areas, according to the index, which tracks asking prices for rental units compared to for-sale homes in major metro areas.
The only two metros out of the 100 tracked where renting was found to be the better deal: Honolulu and San Francisco. Still, the index notes that if you plan to stay in those markets more than five years, you might still be better off owning than renting in those markets too.
Falling home values and low mortgage rates have made home ownership more affordable. Meanwhile, rents have been on the rise.
“As rents rise and prices stagnate, home ownership is becoming even more affordable, but rising rents create a dilemma for people who can’t afford to buy yet,” says Jed Kolko, Trulia’s chief economist. “Rising rents make it harder for people to save for a down payment, which is the biggest barrier to buying a home that aspiring home owners face.”
Top 10 Metros to Buy vs. Rent
1. Detroit
2. Oklahoma City, Okla.
3. Dayton, Ohio
4. Warren-Troy-Farmington Hills, Mich.
5. Toledo, Ohio
6. Grand Rapids, Mich.
7. Cleveland, Ohio
8. Atlanta
9. Gary, Ind.
10. Memphis, Tenn.
By Melissa Dittmann Tracey, REALTOR® Magazine Daily News
Buying a home is more affordable than renting in 98 of the nation’s 100 largest metro areas, according to the index, which tracks asking prices for rental units compared to for-sale homes in major metro areas.
The only two metros out of the 100 tracked where renting was found to be the better deal: Honolulu and San Francisco. Still, the index notes that if you plan to stay in those markets more than five years, you might still be better off owning than renting in those markets too.
Falling home values and low mortgage rates have made home ownership more affordable. Meanwhile, rents have been on the rise.
“As rents rise and prices stagnate, home ownership is becoming even more affordable, but rising rents create a dilemma for people who can’t afford to buy yet,” says Jed Kolko, Trulia’s chief economist. “Rising rents make it harder for people to save for a down payment, which is the biggest barrier to buying a home that aspiring home owners face.”
Top 10 Metros to Buy vs. Rent
1. Detroit
2. Oklahoma City, Okla.
3. Dayton, Ohio
4. Warren-Troy-Farmington Hills, Mich.
5. Toledo, Ohio
6. Grand Rapids, Mich.
7. Cleveland, Ohio
8. Atlanta
9. Gary, Ind.
10. Memphis, Tenn.
By Melissa Dittmann Tracey, REALTOR® Magazine Daily News
Survey Shows More Reason to Buy Than Rent
Thirty-three percent of Americans say they expect home prices to rise in the next 12 months, the highest level in more than a year, according to Fannie Mae’s March 2012 National Housing Survey of consumer attitudes about the housing market.
The number of people who say now is a good time to buy is also on the rise, increasing to 73 percent—also the highest level in more than a year. The percentage who said it's a good time to sell a home also increased one point to 14 percent in March.
Meanwhile, more Americans expect rental prices to rise and are projecting an increase by 4.1 percent over the next year, the highest number recorded to date.
“Conditions are coming together to encourage people to want to buy homes,” says Doug Duncan, Fannie Mae’s chief economist. “Americans’ rental price expectations for the next year continue to rise, reaching their record high level for our survey this month. With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that home ownership is more compelling house choice.”
Source: “Americans’ Expectations Align to Encourage Home Buying,” RISMedia (May 6, 2012)
The number of people who say now is a good time to buy is also on the rise, increasing to 73 percent—also the highest level in more than a year. The percentage who said it's a good time to sell a home also increased one point to 14 percent in March.
Meanwhile, more Americans expect rental prices to rise and are projecting an increase by 4.1 percent over the next year, the highest number recorded to date.
“Conditions are coming together to encourage people to want to buy homes,” says Doug Duncan, Fannie Mae’s chief economist. “Americans’ rental price expectations for the next year continue to rise, reaching their record high level for our survey this month. With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that home ownership is more compelling house choice.”
Source: “Americans’ Expectations Align to Encourage Home Buying,” RISMedia (May 6, 2012)
Thursday, June 21, 2012
Existing-Home Sales Constrained by Tight Supply in May, Prices Continue to Gain
WASHINGTON (June 21, 2012) - Limited supplies of housing inventory held back existing-home sales in May, but sales maintained a strong lead over year-ago levels and home prices are on a sustained uptrend in all regions, according to the National Association of Realtors®.
Total existing-home sales1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, declined 1.5 percent to a seasonally adjusted annual rate of 4.55 million in May from 4.62 million in April, but are 9.6 percent above the 4.15 million-unit pace in May 2011.
Lawrence Yun, NAR chief economist, said inventory shortages in certain areas have been building all year. "The slight pullback in monthly home sales is more likely due to supply constraints rather than softening demand. The normal seasonal upturn in inventory did not occur this spring," he said. "Even with the monthly decline, home sales have moved markedly higher with 11 consecutive months of gains over the same month a year earlier."
There are broad-based shortages of inventory in the lower price ranges in much of the country except the Northeast, and in the West supply is extremely tight in all price ranges except for the upper end. "Realtors® in Western states have been calling for an expedited process to get additional foreclosed properties onto the market because they have more buyers than available property," Yun added. Widespread inventory shortages also are found in much of Florida.
Total housing inventory at the end of May slipped 0.4 percent to 2.49 million existing homes available for sale, which represents a 6.6-month supply2 at the current sales pace; there was a 6.5-month supply in April. Listed inventory is 20.4 percent below a year ago when there was a 9.1-month supply. Unsold inventory has trended down from a record 4.04 million in July 2007; supplies reached a cyclical peak of 12.1 months in July 2010.
"The recovery is occurring despite excessively tight credit conditions and higher downpayment requirements, which are negating the impact of record high affordability conditions," Yun said.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage declined to a record low 3.80 percent in May from 3.91 percent in April; the rate was 4.64 percent in May 2011; recordkeeping began in 1971.
The national median existing-home price3 for all housing types rose 7.9 percent to $182,600 in May from a year ago, the third consecutive month of year over year price gains. The last time there were three back-to-back price increases from the same month a year earlier was from March to May of 2006. "Some of the price gain results from a shrinking share distressed homes in the sales mix," Yun explained.
Distressed homes4 - foreclosures and short sales sold at deep discounts - accounted for 25 percent of May sales (15 percent were foreclosures and 10 percent were short sales), down from 28 percent in April and 31 percent in May 2011. Foreclosures sold for an average discount of 19 percent below market value in May, while short sales were discounted 14 percent.
NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, offers advice to buyers in markets with limited supply. "We are hearing a lot about multiple bidding and quick sales in areas with tight supply, with competition between first-time buyers and cash investors, who have a significant advantage," he said.
"It's extremely important to listen to the advice of your agent and perform all the due diligence that you would normally do in a more balanced market, such as making offers contingent upon a satisfactory home inspection," Veissi said.
First-time buyers accounted for 34 percent of purchasers in May, compared with 35 percent in April and 36 percent in May 2011.
All-cash sales slipped to 28 percent of transactions in May from 29 percent in April; they were 30 percent in May 2011. Investors, who account for the bulk of cash sales, purchased 17 percent of homes in May, down from 20 percent in April and 19 percent in May 2011. "These figures reflect a modest increase in traditional repeat home buyers in May," Yun said.
Single-family home sales slipped 1.0 percent to a seasonally adjusted annual rate of 4.05 million in May from 4.09 million in April, but are 10.4 percent above the 3.67 million-unit level in May 2011. The median existing single-family home price was $182,900 in May, up 7.7 percent from a year ago.
Existing condominium and co-op sales fell 5.7 percent to a seasonally adjusted annual rate of 500,000 in May from 530,000 in April, but are 4.2 percent higher than the 480,000-unit pace one year ago. The median existing condo price was $180,000 in May, which is 8.8 percent above May 2011.
Regionally, existing-home sales in the Northeast fell 4.8 percent to an annual level of 590,000 in May but are 7.3 percent higher than May 2011. The median price in the Northeast was $250,700, up 3.8 percent from a year ago.
Existing-home sales in the Midwest rose 1.0 percent in May to a pace of 1.04 million and are 19.5 percent above a year ago. The median price in the Midwest was $147,700, up 6.4 percent from May 2011.
In the South, existing-home sales slipped 0.6 percent to an annual level of 1.78 million in May but are 9.2 percent higher May 2011. The median price in the South was $159,700, up 7.8 percent from a year ago.
Existing-home sales in the West declined 3.4 percent to an annual pace of 1.14 million in May but are 3.6 percent above a year ago. The median price in the West was $233,900, up 13.4 percent from May 2011. "The sharp price increase in the West results largely from more sales at the upper end of the market," Yun explained.
The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
1Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from multiple listing services. Changes in sales trends outside of MLSs are not captured in the monthly series. A rebenchmarking of home sales is done periodically using other sources to assess the overall home sales trend, including sales not reported by MLSs.
Existing-home sales differ from the U.S. Census Bureau's series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90 percent of total home sales, are based on a much larger sample - about 40 percent of multiple listing service data each month - and typically are not subject to large prior-month revisions.
The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.
2Total inventory and month's supply data are available back through 1999, while single-family inventory and month's supply are available back to 1982 (prior to 1999, condos were measured quarterly while single-family sales accounted for more than 90 percent of transactions).
3The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.
4Distressed sales (foreclosures and short sales), all-cash transactions, investors and first-time buyers and are from a monthly survey for the Realtors® Confidence Index, posted at Realtor.org.
Lawrence Yun, NAR chief economist, said inventory shortages in certain areas have been building all year. "The slight pullback in monthly home sales is more likely due to supply constraints rather than softening demand. The normal seasonal upturn in inventory did not occur this spring," he said. "Even with the monthly decline, home sales have moved markedly higher with 11 consecutive months of gains over the same month a year earlier."
There are broad-based shortages of inventory in the lower price ranges in much of the country except the Northeast, and in the West supply is extremely tight in all price ranges except for the upper end. "Realtors® in Western states have been calling for an expedited process to get additional foreclosed properties onto the market because they have more buyers than available property," Yun added. Widespread inventory shortages also are found in much of Florida.
Total housing inventory at the end of May slipped 0.4 percent to 2.49 million existing homes available for sale, which represents a 6.6-month supply2 at the current sales pace; there was a 6.5-month supply in April. Listed inventory is 20.4 percent below a year ago when there was a 9.1-month supply. Unsold inventory has trended down from a record 4.04 million in July 2007; supplies reached a cyclical peak of 12.1 months in July 2010.
"The recovery is occurring despite excessively tight credit conditions and higher downpayment requirements, which are negating the impact of record high affordability conditions," Yun said.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage declined to a record low 3.80 percent in May from 3.91 percent in April; the rate was 4.64 percent in May 2011; recordkeeping began in 1971.
The national median existing-home price3 for all housing types rose 7.9 percent to $182,600 in May from a year ago, the third consecutive month of year over year price gains. The last time there were three back-to-back price increases from the same month a year earlier was from March to May of 2006. "Some of the price gain results from a shrinking share distressed homes in the sales mix," Yun explained.
Distressed homes4 - foreclosures and short sales sold at deep discounts - accounted for 25 percent of May sales (15 percent were foreclosures and 10 percent were short sales), down from 28 percent in April and 31 percent in May 2011. Foreclosures sold for an average discount of 19 percent below market value in May, while short sales were discounted 14 percent.
NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, offers advice to buyers in markets with limited supply. "We are hearing a lot about multiple bidding and quick sales in areas with tight supply, with competition between first-time buyers and cash investors, who have a significant advantage," he said.
"It's extremely important to listen to the advice of your agent and perform all the due diligence that you would normally do in a more balanced market, such as making offers contingent upon a satisfactory home inspection," Veissi said.
First-time buyers accounted for 34 percent of purchasers in May, compared with 35 percent in April and 36 percent in May 2011.
All-cash sales slipped to 28 percent of transactions in May from 29 percent in April; they were 30 percent in May 2011. Investors, who account for the bulk of cash sales, purchased 17 percent of homes in May, down from 20 percent in April and 19 percent in May 2011. "These figures reflect a modest increase in traditional repeat home buyers in May," Yun said.
Single-family home sales slipped 1.0 percent to a seasonally adjusted annual rate of 4.05 million in May from 4.09 million in April, but are 10.4 percent above the 3.67 million-unit level in May 2011. The median existing single-family home price was $182,900 in May, up 7.7 percent from a year ago.
Existing condominium and co-op sales fell 5.7 percent to a seasonally adjusted annual rate of 500,000 in May from 530,000 in April, but are 4.2 percent higher than the 480,000-unit pace one year ago. The median existing condo price was $180,000 in May, which is 8.8 percent above May 2011.
Regionally, existing-home sales in the Northeast fell 4.8 percent to an annual level of 590,000 in May but are 7.3 percent higher than May 2011. The median price in the Northeast was $250,700, up 3.8 percent from a year ago.
Existing-home sales in the Midwest rose 1.0 percent in May to a pace of 1.04 million and are 19.5 percent above a year ago. The median price in the Midwest was $147,700, up 6.4 percent from May 2011.
In the South, existing-home sales slipped 0.6 percent to an annual level of 1.78 million in May but are 9.2 percent higher May 2011. The median price in the South was $159,700, up 7.8 percent from a year ago.
Existing-home sales in the West declined 3.4 percent to an annual pace of 1.14 million in May but are 3.6 percent above a year ago. The median price in the West was $233,900, up 13.4 percent from May 2011. "The sharp price increase in the West results largely from more sales at the upper end of the market," Yun explained.
The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
# # #
NOTE: For local information, please contact the local association of Realtors® for data from local multiple listing services. Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology.1Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from multiple listing services. Changes in sales trends outside of MLSs are not captured in the monthly series. A rebenchmarking of home sales is done periodically using other sources to assess the overall home sales trend, including sales not reported by MLSs.
Existing-home sales differ from the U.S. Census Bureau's series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90 percent of total home sales, are based on a much larger sample - about 40 percent of multiple listing service data each month - and typically are not subject to large prior-month revisions.
The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.
2Total inventory and month's supply data are available back through 1999, while single-family inventory and month's supply are available back to 1982 (prior to 1999, condos were measured quarterly while single-family sales accounted for more than 90 percent of transactions).
3The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.
4Distressed sales (foreclosures and short sales), all-cash transactions, investors and first-time buyers and are from a monthly survey for the Realtors® Confidence Index, posted at Realtor.org.
Tuesday, June 19, 2012
5 Plants You (Almost) Never Have to Water
Every plant needs water. But drought-resistant varieties need only dainty sips once they’re established, making them perfect for low-rainfall areas and low-energy gardeners.
Susan Gottlieb, an expert on drought-tolerant gardens, says native plants have the best chance of surviving dry summers or whatever nature throws at them.
“Natives have evolved to thrive in your climate without a whole lot of extra work,” Gottlieb says.
Include these 5 stunners in your landscaping and retire your watering can.
1. California lilac (Ceanothus): This beautiful shrub flowers in late winter/early spring, emits a lovely fragrance, and shows flowers that run from white to purple. The “Concha” variety is prized for its deep blue blossoms. California lilacs grow best on dry, sloping land or in front of any structure that protects them from wind. They also prefer well-drained soil, and they don’t do well in clay.
2. Deer grass (Muhlenbergia rigens): Found in many desert gardens, deer grass is a spiky and dependable ornamental. It loves full sun, but also will grow in a little shade. Water every three days until established. After the first year, water only every three weeks.
3. Salvia, heatwave series: These dependable perennials were developed in Australia to withstand extreme weather. As a bonus, they bloom spring through fall, to the delight of hummingbirds and butterflies. Colors include white, pink, and salmon.
4. Dusty miller (Senecio cineraria): This low-growing perennial is known for its silver-gray foliage, looks good as a ground cover, and thrives in containers stuffed with annuals. It hates standing around with wet roots, so plant it in soil that drains well.
5. Tickweed (Coreopsis): These yellow perennials add a burst of sunshine to any garden or border. More than 100 species are long-blooming (so long as you deadhead) and low-maintenance. They range from long and leggy to small and mounded. Also, they are easy to divide, creating many more plants season after season. (Here are more tips on taking care of perennial flowers.)
More than 30 states host Native Plant Societies, which can guide your selection and help you save water in your garden. To find a local society, check with your local extension agent or with the Native Plant Conservation Campaign, a friend to native and endangered plants.
For more ideas, check out these drought-resistant plants with an emphasis on color, and these lawn alternatives that don’t hog water.
“Natives have evolved to thrive in your climate without a whole lot of extra work,” Gottlieb says.
Include these 5 stunners in your landscaping and retire your watering can.
1. California lilac (Ceanothus): This beautiful shrub flowers in late winter/early spring, emits a lovely fragrance, and shows flowers that run from white to purple. The “Concha” variety is prized for its deep blue blossoms. California lilacs grow best on dry, sloping land or in front of any structure that protects them from wind. They also prefer well-drained soil, and they don’t do well in clay.
2. Deer grass (Muhlenbergia rigens): Found in many desert gardens, deer grass is a spiky and dependable ornamental. It loves full sun, but also will grow in a little shade. Water every three days until established. After the first year, water only every three weeks.
3. Salvia, heatwave series: These dependable perennials were developed in Australia to withstand extreme weather. As a bonus, they bloom spring through fall, to the delight of hummingbirds and butterflies. Colors include white, pink, and salmon.
4. Dusty miller (Senecio cineraria): This low-growing perennial is known for its silver-gray foliage, looks good as a ground cover, and thrives in containers stuffed with annuals. It hates standing around with wet roots, so plant it in soil that drains well.
5. Tickweed (Coreopsis): These yellow perennials add a burst of sunshine to any garden or border. More than 100 species are long-blooming (so long as you deadhead) and low-maintenance. They range from long and leggy to small and mounded. Also, they are easy to divide, creating many more plants season after season. (Here are more tips on taking care of perennial flowers.)
More than 30 states host Native Plant Societies, which can guide your selection and help you save water in your garden. To find a local society, check with your local extension agent or with the Native Plant Conservation Campaign, a friend to native and endangered plants.
For more ideas, check out these drought-resistant plants with an emphasis on color, and these lawn alternatives that don’t hog water.
Read more: http://www.houselogic.com/home-advice/plants-trees/plants-that-dont-need-water/#ixzz1yH1LpzdT
Monday, June 18, 2012
Top 20 Reasons to Visit & Buy in Broward
- Affordable Real Estate – The local market offers record affordability, amenities and seller incentives; much more affordable in the last five years. Plus a weak U.S. dollar gives greater discounts to foreign buyers.
- Top Market for International Buyers – While Florida is the top state, Broward County is one of the top markets for international buyers.
- Enviable Weather – A tropical paradise with an average yearly temperature of 76F/25C & an average winter temperature of 66F/19C. Don't forget the over 3,000 hours of sunshine each year.
- Beautiful Beaches – Broward County has 23 miles of Atlantic Ocean coastline and 300 miles of navigable waterways, earning it the nickname, "the Venice of America".
- Water Sports and Activities – Enjoy top-rated fishing, snorkeling, sailing, boating, kayaking, swimming, SCUBA diving and other water sports all year around.
- All Things Boating – Home to over 42,000 pleasure crafts, Broward County is also known as the "Yachting Capital of the World".
- Lifestyle – There's a lifestyle for everyone; museums, performing arts venues, art galleries, professional sports, amazing places to shop and limitless beaches.
- Fabulous Nightlife – Las Olas, Beach Place, Riverwalk, the Hollywood Broadwalk and so much more – the selection of top restaurants, nightclubs, bars and hotspots is endless.
- Restaurants – With more than 4,000 restaurants ranging from intimate cafes to al fresco waterfront dining spots to quaint bistros, ethnic eateries and world-renowned steakhouses, your palette is your only limit.
- World-Class Shopping – From the chic boutiques of Las Olas to South Florida's largest flea market, the Swap Shop, and the new luxury Shops at Gulfstream Park to the world's largest discount mall, Sawgrass Mills, your shopping options extend countywide.
- Casinos and Gaming – Place a wager at one of the area casinos including Seminole Hard Rock Hotel & Casino, the Seminole Casino Coconut Creek, Gulfstream Park Racing & Casino and the Isle Casino & Racing.
- Commercial & Investment Real Estate – Vacancy rates for all commercial sectors in Broward County are below the national average; retail and multi-family are outperforming most major markets in the U.S.
- International Events – Don't miss top international events including the Winterfest Boat Parade, the Fort Lauderdale International Boat Show, the Air & Sea Show and the Fort Lauderdale International Film Festival.
- Cultural Diversity – Over 30% of Broward County's 1.7 million residents are foreign born and speak over 100 distinct languages.
- Dynamic Business Center – Once known strictly as a tourism-based economy, Fort Lauderdale now supports a diverse range of industries, including marine, manufacturing, finance, insurance, real estate, high technology and avionics/aerospace. In fact, over 150 companies have corporate, division or regional headquarters in Broward County.
- Hotels – Whether you want a luxury resort overlooking the Atlantic Ocean or just a modest place to store your bags while you explore the city, you'll find the perfect place to stay in Broward County.
- World Travel Hub – One of the most active travel hubs in the nation with over 23 million airline passengers a year via 40 airlines with service to 60 U.S. and 40 international destinations.
- Cruising the Waters – Already with over 3.7 passengers yearly, the new Allure and Oasis cruise ships are expected to help Fort Lauderdale surpass Miami as the world's busiest cruise port by 2013, becoming the "Cruise Capital of the World".
- Educational Institutions – 6th largest U.S. public school district with over 280 public schools as well as numerous public and private colleges and universities.
- A Top Place to Live & Work – Numerous cities in Broward County have repeatedly been ranked among the top places
to live, work and play in the U.S.
Top 20 Reasons to Visit & Buy in Miami
- Affordable Real Estate – The local market offers record affordability, amenities, & seller incentives; 50% more affordable in the last five years; weak U.S. dollar gives greater discounts for foreign buyers
- Top Market for Int'l Buyers – Florida is the top state in the U.S. & Miami is the top market for int'l buyers; & is expected to outperform other U.S. markets long into the future
- Enviable Weather – The only major "subtropical" city in continental U.S.; average temp. 75 ºF / 23 ºC
- Beautiful Beaches – Greater Miami has 84 miles of Atlantic Ocean coastline & 67 square miles of inland waterways & more than 15 miles of world-famous beaches
- Water Sports & Activities – Enjoy snorkeling, sailing, boating, kayaking, swimming, diving & other water sports all year around
- Exciting Lifestyle for All – young adults, families, baby boomers, retirees, celebrities, & visitors - museums, performing arts venues, art galleries, professional sports, & amazing places to shop
- Fabulous Nightlife – Ocean Drive & more - top restaurants, night clubs, bars, world famous hotspots
- Restaurants – In Miami you can savor worldwide cuisine unlike in any other city in the U.S.
- Entertainment Industry – Major fashion center, top modeling agencies in the world, Fashion Week & more than 2,400 motion picture & video businesses
- Commercial & Investment Real Estate – Vacancy rates for all commercial sectors in Miami are below the national average; retail & multi-family are outperforming most major markets in the U.S
- "Gateway to the Americas" – Strategic location between Latin America & Europe; "Capital of the Americas" - perfect for business or pleasure
- The Most Int'l City in the U. S. – nearly 50% of population is foreign born & speak over 100 languages
- Global Business Center – for business, finance, commerce, media, entertainment, arts & international trade; no state income tax; home to nearly 1,200 multinational companies from 56 nations; more than 100 international consulates, trade offices & bi-national chambers of commerce
- Hotels – ranks fifth in US in occupancy after New York, Oahu Island, San Francisco, & Boston
- Top Tourist Destination – 12.6 million overnight guests – with 6 million of them int'l visitors
- World Aviation Hub – 3rd in the U.S. with 33.5 million passengers a year; Over 80 airlines to 120 destinations – top freight airport in the U.S. with 1.8 million tons - $19 billion in business revenue/year
- Port of Miami – "Cruise Capital of the World" with more than 4 million passengers a year; Also serves 240 seaports; 9 million tons of sea cargo; top markets: China, Italy, Hong Kong, Honduras & Brazil
- Educational Institutions – 4th largest U. S. school district; 5 colleges & universities; 3 law schools
- Hospitals – 33 hospitals; Jackson Memorial is one of the top 25 hospitals in the U. S. & Miami Children's Hospital is rated the top pediatric hospital in the country
- Top Rankings
- Miami has the largest concentration of international banks in the U.S.
- Miami's skyline ranks third in the U.S. behind New York City & Chicago & 18th in the world (Almanac of Architecture & Design.)
- Miami is the only major city in the United States bordered by two national parks, Everglades National Park on the West, & Biscayne National Park on the East.
It's great to live, work & play in Miami!
Wednesday, June 13, 2012
Flood Myth: Everyone who lives in a flood zone has to buy flood insurance?
Myth #2: Everyone who lives in a flood zone has to buy flood insurance?
Nope. You must buy flood insurance only if you meet all three of these criteria:
- You buy a home in a special flood hazard area where there’s a 1% chance of flooding in any year.
- Your community participates in the National Flood Insurance Program.
- You buy your home using a loan from a federally insured financial institution, or a Fannie Mae- or Freddie Mac-guaranteed loan.
About 5.6 million home and small-business owners live in the more than 21,000 communities that participate in the flood insurance program, according to the Government Accountability Office.
Read more: http://www.houselogic.com/home-advice/disaster-insurance/flood-insurance-facts/#ixzz1xghisnud
Tuesday, June 12, 2012
Versace's former South Beach mansion for sale: $125 million
(CNN) -- The Miami Beach, Florida, mansion outside which owner and fashion designer Gianni Versace was killed is up for sale at $125 million, a real estate firm said.
2010: Versace mansion's new life
Very Versace
The 19,000-square-foot Casa Casuarina in South Beach has 10 bedrooms and 11 bathrooms, and a centerpiece to the gated compound is a 54-foot-long pool lined in 24-karat gold and adorned with mosaics, frescos, statues, arched doorway and a courtyard, according to real estate agents with Coldwell Banker.
Versace bought the house in 1992 and spent $33 million on improvements such as a south wing expansion, the pool and garden, the agents said.
Versace was shot to death on the doorstep of his home in 1997, and spree killer Andrew Cunanan is believed to have killed him and four others before Cunanan shot himself in the head on the upper floor of a houseboat in Miami Beach, where he was holed up to avoid police after the Versace shooting.
2010: Versace mansion's new lifeVery Versace
In 2000, the house was bought by Peter Loftin, who conserved Versace's touches to the residence, the real estate agents said.
"This is an iconic oasis for the rich-and-famous that sits in the middle of South Beach," Loftin said in a statement. "It's a one-of-a-kind property, created by a genius; that is a piece of art, and a piece of history."
Added real estate agent Jill Eber in statement: "The Casa Casuarina is the crown jewel of luxury real estate."
The house was built in 1930 by architect, philanthropist, author and political reformer Alden Freeman, and its design was inspired by the oldest existing house in the Western Hemisphere, the "Alcazar de Colon" in Santo Domingo, Dominican Republic, the real estate firm said.
The Alcazar de Colon, once a Colonial palace, is the only known home of the family of explorer Christopher Columbus and is now a museum, according to its website.
Thursday, June 7, 2012
Pending Home Sales Decline in April but Up Strongly From a Year Ago
WASHINGTON (May 30, 2012) - Pending home sales retrenched in April following three consecutive monthly gains, but are notably higher than a year ago, according to the National Association of Realtors®.
The Pending Home Sales Index,* a forward-looking indicator based on contract signings, declined 5.5 percent to 95.5 from a downwardly revised 101.1 in March but is 14.4 percent above April 2011 when it was 83.5. The data reflects contracts but not closings.
Lawrence Yun, NAR chief economist, said a one-month setback in light of many months of gains does not change the fundamentally improving housing market conditions. “Home contract activity has been above year-ago levels now for 12 consecutive months. The housing recovery momentum continues,” he said.
Yun notes home sales are staying well above the levels seen from 2008 through 2011. “Housing market activity has clearly broken out at notably higher levels and is on track to see the best performance since 2007,” he said. “All of the major housing market indicators are expected to trend gradually up, but a new federal budget must be passed before the end of the year for the economy to continue to move forward.”
The PHSI in the Northeast rose 0.9 percent to 78.9 in April and is 19.9 percent higher than April 2011. In the Midwest the index slipped 0.3 percent to 93.0 but is 23.0 percent above a year ago. Pending home sales in the South fell 6.8 percent to an index of 105.7 in April but are 13.3 percent higher than April 2011. In the West the index dropped 12.0 percent in April to 94.9 but is 5.1 percent above a year ago.
The housing forecast has been upgraded, with existing-home sales expected to reach 4.66 million this year, compared with 4.26 million in 2011. The outlook for 2013 is now 4.92 million, but could vary significantly depending on two scenarios.
If lending returns to normal, the 2013 outlook for existing-home sales would measurably improve to 5.3 million. However, a fiscal cliff scenario of higher taxes and sharp spending cuts beginning in early 2013, which is an unlikely event but still worth noting, would lower the sales projection to 4.5 million.
Because of measurably lower inventory supplies, the forecast for home prices has been upwardly revised with the median existing-home price projected to rise 2 to 3 percent this year and 4 to 5 percent in 2013, with wide local market variations. Miami and Phoenix will easily achieve double-digit price growth by year end.
Yun said the price gains will measurably reduce the number of underwater homeowners. “For example, a 5 percent national price gain means the number of underwater homeowners would fall to about 9 million from current estimates of around 11 million. A 10 percent gain, say over the next two years, would reduce the underwater status to about 7 million households out of 75 million owner-occupied homes,” he said.
About 25 million homes are owned free and clear without a mortgage.
Though the proportion of distressed properties is still high, the numbers have been falling over the past two years. “The diminishing share of distressed properties is another reason for higher home prices in upcoming months,” Yun added.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
# # #
*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales; it coincides with a level that is historically healthy.
NOTE: Existing-home sales for May will be reported June 21 and the next Pending Home Sales Index will be on June 27; release times are 10:00 a.m. EDT.
Statistical data in this release, as well as other tables and surveys, are posted in the “Research and Statistics” tab of www.realtor.org.
The Pending Home Sales Index,* a forward-looking indicator based on contract signings, declined 5.5 percent to 95.5 from a downwardly revised 101.1 in March but is 14.4 percent above April 2011 when it was 83.5. The data reflects contracts but not closings.
Lawrence Yun, NAR chief economist, said a one-month setback in light of many months of gains does not change the fundamentally improving housing market conditions. “Home contract activity has been above year-ago levels now for 12 consecutive months. The housing recovery momentum continues,” he said.
Yun notes home sales are staying well above the levels seen from 2008 through 2011. “Housing market activity has clearly broken out at notably higher levels and is on track to see the best performance since 2007,” he said. “All of the major housing market indicators are expected to trend gradually up, but a new federal budget must be passed before the end of the year for the economy to continue to move forward.”
The PHSI in the Northeast rose 0.9 percent to 78.9 in April and is 19.9 percent higher than April 2011. In the Midwest the index slipped 0.3 percent to 93.0 but is 23.0 percent above a year ago. Pending home sales in the South fell 6.8 percent to an index of 105.7 in April but are 13.3 percent higher than April 2011. In the West the index dropped 12.0 percent in April to 94.9 but is 5.1 percent above a year ago.
The housing forecast has been upgraded, with existing-home sales expected to reach 4.66 million this year, compared with 4.26 million in 2011. The outlook for 2013 is now 4.92 million, but could vary significantly depending on two scenarios.
If lending returns to normal, the 2013 outlook for existing-home sales would measurably improve to 5.3 million. However, a fiscal cliff scenario of higher taxes and sharp spending cuts beginning in early 2013, which is an unlikely event but still worth noting, would lower the sales projection to 4.5 million.
Because of measurably lower inventory supplies, the forecast for home prices has been upwardly revised with the median existing-home price projected to rise 2 to 3 percent this year and 4 to 5 percent in 2013, with wide local market variations. Miami and Phoenix will easily achieve double-digit price growth by year end.
Yun said the price gains will measurably reduce the number of underwater homeowners. “For example, a 5 percent national price gain means the number of underwater homeowners would fall to about 9 million from current estimates of around 11 million. A 10 percent gain, say over the next two years, would reduce the underwater status to about 7 million households out of 75 million owner-occupied homes,” he said.
About 25 million homes are owned free and clear without a mortgage.
Though the proportion of distressed properties is still high, the numbers have been falling over the past two years. “The diminishing share of distressed properties is another reason for higher home prices in upcoming months,” Yun added.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
# # #
*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales; it coincides with a level that is historically healthy.
NOTE: Existing-home sales for May will be reported June 21 and the next Pending Home Sales Index will be on June 27; release times are 10:00 a.m. EDT.
Statistical data in this release, as well as other tables and surveys, are posted in the “Research and Statistics” tab of www.realtor.org.
Wednesday, June 6, 2012
6 Reasons to Reduce Your Home Price
While you’d like to get the best price for your home, consider our six reasons to reduce your home price.
If you don't receive any offers for a few weeks, check out other comparable houses on the market and what they're going for.
Home not selling? That could happen for a number of reasons you can’t control, like a unique home layout or having one of the few homes in the neighborhood without a garage. There is one factor you can control: your home price.
These six signs may be telling you it’s time to lower your price.
Read more: http://buyandsell.houselogic.com/articles/6-Reasons-To-Reduce-Your-Home-Price/#ixzz1x3O5pk26
If you don't receive any offers for a few weeks, check out other comparable houses on the market and what they're going for. Home not selling? That could happen for a number of reasons you can’t control, like a unique home layout or having one of the few homes in the neighborhood without a garage. There is one factor you can control: your home price.
These six signs may be telling you it’s time to lower your price.
1. You’re drawing few lookers
You get the most interest in your home right after you put it on the market because buyers want to catch a great new home before anybody else takes it. If your real estate agent reports there have been fewer buyers calling about and asking to tour your home than there have been for other homes in your area, that may be a sign buyers think it’s overpriced and are waiting for the price to fall before viewing it.2. You’re drawing lots of lookers but have no offers
If you’ve had 30 sets of potential buyers come through your home and not a single one has made an offer, something is off. What are other agents telling your agent about your home? An overly high price may be discouraging buyers from making an offer.3. Your home’s been on the market longer than similar homes
Ask your real estate agent about the average number of days it takes to sell a home in your market. If the answer is 30 and you’re pushing 45, your price may be affecting buyer interest. When a home sits on the market, buyers can begin to wonder if there’s something wrong with it, which can delay a sale even further. At least consider lowering your asking price.4. You have a deadline
If you’ve got to sell soon because of a job transfer or you’ve already purchased another home, it may be necessary to generate buyer interest by dropping your price so your home is a little lower priced than comparable homes in your area. Remember: It’s not how much money you need that determines the sale price of your home, it’s how much money a buyer is willing to spend.5. You can’t make upgrades
Maybe you’re plum out of cash and don’t have the funds to put fresh paint on the walls, clean the carpets, and add curb appeal. But the feedback your agent is reporting from buyers is that your home isn’t as well-appointed as similarly priced homes. When your home has been on the market longer than comparable homes in better condition, it’s time to accept that buyers expect to pay less for a home that doesn’t show as well as others.6. The competition has changed
If weeks go by with no offers, continue to check out the competition. What have comparable homes sold for and what’s still on the market? What new listings have been added since you listed your home for sale? If comparable home sales or new listings show your price is too steep, consider a price reduction.Read more: http://buyandsell.houselogic.com/articles/6-Reasons-To-Reduce-Your-Home-Price/#ixzz1x3O5pk26
Trump Wants To Build Film Studio In Homestead
MIAMI (CBS4) – Real estate mogul Donald Trump has unveiled big plans to build a new city in South Florida.
During Tuesday’s meeting of the Miami-Dade Commission, plans were unveiled for Trump Studio City, an ambitious 800 acre film studio. The Donald is attempting to recreate Hollywood studios in Homestead.
The land he has his eyes on has sat vacant decades near the Homestead Air Force Reserve base. It was deeded over to the county after Hurricane Andrew. Twenty years later the area suddenly has new life. “It could inject as much at $262,000 in local revenue (a day),” Michael Cohen told commissioners.
Cohen, a vice president with the Trump organization, pitched county commissioners that they want to build a Universal Studios of the South. Armed with renderings and layouts, the organization is proposing to build one of the largest studios on Earth.
“The vision for this project is a massive studio city that would range in studio size from 25,000 square feet to 250,000 square feet. With 15-20 acre back lots that really handle any type of movie. Any type of television series that could ever be dreamed of,” said Cohen.
“It’s ambitious,” CBS4′s David Sutta responded. “As is Mr. Trump,” Cohen fired back.
For depressed Homestead and Florida City it could create thousands of jobs and bring the housing market back. Commission Chairman Joe Martinez is front and center pitching it.
“You got to dream. Las Vegas came out of the desert. People didn’t think it could be done,” Martinez said. Reality is it couldn’t be done in 2001 when Martinez pitched the idea of a Homestead studio for the first time.
“Back then I thought that it was such a great idea that I thought I would just propose it to my colleagues and it would pass and people would flock here. I’ve learned. I’ve matured. And I knew I had to get someone with a name,” Martinez explained.
Trump certainly is that.
“Is it ambitious? Yes. Is it doable? Yes. It’s a not a dream. And if it doesn’t occur it’s because we messed it up in the county,” Martinez said.
Smaller studios recently built-in Miami have not fared well but commissioners seemed optimistic. Some are even flirting with the idea of giving the land to Trump for free.
“It may be very attractive for the studios to come down to Miami,” Mayor Carlos Gimenez said.
It will be awhile before cameras are rolling in Homestead. This plan now goes to lawyers now for the next 90 days. If everything shakes out though commissioners could be voting on a deal to build a new studio city, in Homestead, sometime in the Fall.
http://miami.cbslocal.com/2012/06/05/trump-wants-to-build-film-studio-in-homestead/
During Tuesday’s meeting of the Miami-Dade Commission, plans were unveiled for Trump Studio City, an ambitious 800 acre film studio. The Donald is attempting to recreate Hollywood studios in Homestead.
The land he has his eyes on has sat vacant decades near the Homestead Air Force Reserve base. It was deeded over to the county after Hurricane Andrew. Twenty years later the area suddenly has new life. “It could inject as much at $262,000 in local revenue (a day),” Michael Cohen told commissioners.
“The vision for this project is a massive studio city that would range in studio size from 25,000 square feet to 250,000 square feet. With 15-20 acre back lots that really handle any type of movie. Any type of television series that could ever be dreamed of,” said Cohen.
“It’s ambitious,” CBS4′s David Sutta responded. “As is Mr. Trump,” Cohen fired back.
For depressed Homestead and Florida City it could create thousands of jobs and bring the housing market back. Commission Chairman Joe Martinez is front and center pitching it.
“You got to dream. Las Vegas came out of the desert. People didn’t think it could be done,” Martinez said. Reality is it couldn’t be done in 2001 when Martinez pitched the idea of a Homestead studio for the first time.
“Back then I thought that it was such a great idea that I thought I would just propose it to my colleagues and it would pass and people would flock here. I’ve learned. I’ve matured. And I knew I had to get someone with a name,” Martinez explained.
Trump certainly is that.
“Is it ambitious? Yes. Is it doable? Yes. It’s a not a dream. And if it doesn’t occur it’s because we messed it up in the county,” Martinez said.
Smaller studios recently built-in Miami have not fared well but commissioners seemed optimistic. Some are even flirting with the idea of giving the land to Trump for free.
“It may be very attractive for the studios to come down to Miami,” Mayor Carlos Gimenez said.
It will be awhile before cameras are rolling in Homestead. This plan now goes to lawyers now for the next 90 days. If everything shakes out though commissioners could be voting on a deal to build a new studio city, in Homestead, sometime in the Fall.
http://miami.cbslocal.com/2012/06/05/trump-wants-to-build-film-studio-in-homestead/
Tuesday, June 5, 2012
Sellers: Should You Move or Remodel?
By: Dona DeZube
When your house no longer suits you, you can move or remodel. Find out which big change is the right investment of your housing dollars.
Calculate how much your remodel will cost and add it to the value of your house. If the number is more than 10% above your neighbors' house values, you're over-improving. Image: Masterfile
Deciding whether you should move or remodel? The most important things you need to consider are the four things you can’t change: your home’s value compared to the rest of the neighborhood, how much you love your neighborhood, the size of your lot, and the cost to move your stuff to a new house.
Just about everything else—remodeling costs, the hassle of living in a construction zone, or the ability to live happily without one more bathroom—is a personal preference. After all, your home isn’t just your largest investment; it’s also the place where your family lives.
Here’s why: No one wants to buy the most expensive home on the block (your home) if they can spend the same money to get a similar home on a block of higher-priced homes. Would you pay $200,000 to live on a block where all the other homes are valued at $100,000? We hope not.
Make home improvements that are typical for the neighborhood. Don’t put granite countertops in a trailer, and don’t put laminate countertops in a Trump Tower condo. Your tour of open houses gives you a chance to verify that your planned remodel isn’t an over- or under-improvement for the neighborhood.
Read more: http://buyandsell.houselogic.com/articles/should-you-move-or-remodel/#ixzz1wvsU1u20
When your house no longer suits you, you can move or remodel. Find out which big change is the right investment of your housing dollars.
Calculate how much your remodel will cost and add it to the value of your house. If the number is more than 10% above your neighbors' house values, you're over-improving. Image: MasterfileDeciding whether you should move or remodel? The most important things you need to consider are the four things you can’t change: your home’s value compared to the rest of the neighborhood, how much you love your neighborhood, the size of your lot, and the cost to move your stuff to a new house.
Just about everything else—remodeling costs, the hassle of living in a construction zone, or the ability to live happily without one more bathroom—is a personal preference. After all, your home isn’t just your largest investment; it’s also the place where your family lives.
1. Will remodeling make your home better than everyone else’s?
To make the right move-or-remodel decision, you have to know:- Your home’s value. Easy. Just ask a REALTOR® to estimate it and tell you how it compares with the value of the other homes in your immediate neighborhood. Ask her what she thinks your house will be worth after the improvements, too.
- Your neighbors’ home value. Hit some open houses. Seeing the inside of area homes will inspire you; help you make good choices about finishes, room sizes, and how much to spend; and, admit it, entertain you.
- Your remodeling costs. Once you’ve got your renovation vision, get a quote from a home improvement contractor or, if you’re remodeling it yourself, tally the costs of the items on your supplies shopping list.
Here’s why: No one wants to buy the most expensive home on the block (your home) if they can spend the same money to get a similar home on a block of higher-priced homes. Would you pay $200,000 to live on a block where all the other homes are valued at $100,000? We hope not.
Make home improvements that are typical for the neighborhood. Don’t put granite countertops in a trailer, and don’t put laminate countertops in a Trump Tower condo. Your tour of open houses gives you a chance to verify that your planned remodel isn’t an over- or under-improvement for the neighborhood.
2. Do you love where you live?
Want to keep your kids in the same school district, but can’t find or afford a bigger, better house? Love the neighbors? Have an easy commute to work? Stay put. If you’ve soured on the traffic, the neighborhood’s crime rate, or the nosy neighbors, move on.3. Do you have room to expand?
If your remodeling plans include increasing the overall size of your home, the size of your lot may be the deciding factor in whether to move or remodel. If you live in a 1,500 sq. ft. ranch on a 3,000 sq. ft. lot, you might be able to add a second story to turn it into a 3,000 sq. ft. two-story, but you’re not likely to add 1,500 sq. ft. at ground level. And if you have a septic tank and well, the location of those will limit how and where you add onto your home (or cost you a bundle to move).4. Can you afford to move?
Consider these moving costs: sale costs for your existing home, shipping your household goods, buying window treatments and possibly furniture for the new house, costs to fix up your existing home before sale, higher utility costs (if your next house is bigger), insurance cost differences, and property taxes.Read more: http://buyandsell.houselogic.com/articles/should-you-move-or-remodel/#ixzz1wvsU1u20
Negotiate Your Best House Buy
By: G. M. Filisko
Keep your emotions in check and your eyes on the goal, and you’ll pay less when purchasing a home.
When negotiating a house sale, for every concession you make, ask for something in return. Image: Westend61/Getty Images
Buying a home can be emotional, but negotiating the price shouldn’t be. The key to saving money when purchasing a home is sticking to a plan during the turbulence of high-stakes negotiations. A real estate agent who represents you can guide you and offer you advice, but you are the one who must make the final decision during each round of offers and counter offers.
Here are six tips for negotiating the best price on a home.
Work with your agent to evaluate the sellers’ motivation and comparable home sales to arrive at an initial offer that engages the sellers yet keeps money in your wallet.
Each time you make a concession, ask for one in return. If the sellers ask you to boost your price, ask them to contribute to closing costs or pay for a home warranty. If sellers won’t budge, make it clear you’re willing to walk away; they may get nervous and accept your offer.
Read more: http://buyandsell.houselogic.com/articles/negotiate-best-house-buy/#ixzz1wvpPaPhm
Keep your emotions in check and your eyes on the goal, and you’ll pay less when purchasing a home.
When negotiating a house sale, for every concession you make, ask for something in return. Image: Westend61/Getty ImagesBuying a home can be emotional, but negotiating the price shouldn’t be. The key to saving money when purchasing a home is sticking to a plan during the turbulence of high-stakes negotiations. A real estate agent who represents you can guide you and offer you advice, but you are the one who must make the final decision during each round of offers and counter offers.
Here are six tips for negotiating the best price on a home.
1. Get prequalified for a mortgage
Getting prequalified for a mortgage proves to sellers that you’re serious about buying and capable of affording their home. That will push you to the head of the pack when sellers choose among offers; they’ll go with buyers who are a sure financial bet, not those whose financing could flop.2. Ask questions
Ask your agent for information to help you understand the sellers’ financial position and motivation. Are they facing foreclosure or a short sale? Have they already purchased a home or relocated, which may make them eager to accept a lower price to avoid paying two mortgages? Has the home been on the market for a long time, or was it just listed? Have there been other offers? If so, why did they fall through? The more signs that sellers are eager to sell, the lower your offer can reasonably go.3. Work back from a final price to determine your initial offer
Know in advance the most you’re willing to pay, and with your agent work back from that number to determine your initial offer, which can set the tone for the entire negotiation. A too-low bid may offend sellers emotionally invested in the sales price; a too-high bid may lead you to spend more than necessary to close the sale.Work with your agent to evaluate the sellers’ motivation and comparable home sales to arrive at an initial offer that engages the sellers yet keeps money in your wallet.
4. Avoid contingencies
Sellers favor offers that leave little to chance. Keep your bid free of complicated contingencies, such as making the purchase conditional on the sale of your current home. Do keep contingencies for mortgage approval, home inspection, and environmental checks typical in your area, like radon.5. Remain unemotional
Buying a home is a business transaction, and treating it that way helps you save money. Consider any movement by the sellers, however slight, a sign of interest, and keep negotiating.Each time you make a concession, ask for one in return. If the sellers ask you to boost your price, ask them to contribute to closing costs or pay for a home warranty. If sellers won’t budge, make it clear you’re willing to walk away; they may get nervous and accept your offer.
6. Don’t let competition change your plan
Great homes and those competitively priced can draw multiple offers in any market. Don’t let competition propel you to go beyond your predetermined price or agree to concessions—such as waiving an inspection—that aren’t in your best interest.Read more: http://buyandsell.houselogic.com/articles/negotiate-best-house-buy/#ixzz1wvpPaPhm
Monday, June 4, 2012
Million dollar housing market small but brisk in 2011
How many million dollar and above home sales closed last year in the U.S?
According to the National Association of Realtors’ Research Division, there were 68,200 closed residential transactions at a million dollars or more. This represented just 1.6 % of all home sales in 2011, evidence that the luxury market at the million dollar and above level is a small segment of the market.
But, last year for the first time, the $500,000 and above market segment represented 10% of all home sales. Both the anecdotal and statistical information indicate that although the luxury niche is small, it is outperforming the market in general.
It’s a good time to target the upper-tier.
http://blog.luxuryhomemarketing.com/2012/03/million-dollar-housing-market-small-but-brisk-in-2011.html
But, last year for the first time, the $500,000 and above market segment represented 10% of all home sales. Both the anecdotal and statistical information indicate that although the luxury niche is small, it is outperforming the market in general.
It’s a good time to target the upper-tier.
http://blog.luxuryhomemarketing.com/2012/03/million-dollar-housing-market-small-but-brisk-in-2011.html
Miami Home Prices Increase for Fifth Consecutive Month
Miami, FL – For the fifth consecutive month, Miami home prices posted strong gains in April. The median sales price of condominiums in the Miami-Dade County increased 30 percent to $150,000 compared to a year earlier, according to the 25,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system. The median sales price of single-family homes rose 8.2 percent to $183,000. The median sales prices for non-distressed properties sold in April in Miami-Dade were $253,400 for single-family homes and $246,250 for condominiums.
"Miami single-family home and condominium prices continue to trend upwards due to the record demand experienced last year," said Martha Pomares, 2012 Chairman of the Board of the MIAMI Association of REALTORS. "Price appreciation should continue due to limited supply and strong demand from both U.S. and international buyers and investors."
Average Sales Price Also Rise
The April average sales price for single-family homes in Miami-Dade County increased 17 percent, from $355,342 in 2011 to $415,046 in 2012. The average sales prices for condominiums jumped 22.3 percent, from $242,616 to $293,717. The average sales prices for non-distressed properties sold in April in Miami-Dade were $626,877 for single-family homes and $414,664 for condominiums.
The sales of existing single-family homes in Miami-Dade increased 7.2 percent in April, from 830 to 890, compared to record sales levels in April 2011. Sales of condominiums were down 12.0 percent, from 1,404 to 1,237, compared to April 2011.
"The Miami residential real estate market continues to show remarkable strengthening compared to the rest of the nation," said 2012 MIAMI Association of REALTORS Residential President Patricia Delinois. "Miami is unique in many ways, including being the top market in nation for foreign buyers and investors. There are many benefits to living and working in Miami, which is why migrating U.S. residents and retiring baby boomers as well as vacation and second home buyers, and global business headquarters are increasingly attracted to our amazing city."
Inventory Continues Sharp Decline
Over the last year, the inventory of residential listings in Miami-Dade County has decreased 34 percent from 17,897 to 11,878. Compared to the previous month, the total inventory of homes dropped 4.04 percent.
Distressed Properties
Strong demand for bank-owned (REO) properties and improved processing of short sales has resulted in rapid absorption of distressed listings and contributed to price appreciation. In April, 47 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 59 percent in April 2011 and 49 percent the previous month.
International Buyers Fuel Cash Sales
In Miami-Dade County, 64 percent of total closed sales in March were all-cash sales, compared to 65 percent in March and 63 percent a year earlier. Cash sales accounted for 46 percent of single-family and 77 percent of condominium closings. Nearly 90 percent of international buyers in Florida purchase properties all cash.
Broward County Home Prices Continue to Rise
In April, the median sales price of single-family homes in Broward County was $205,000, up 17 percent compared to April 2011 and 14 percent compared to the previous month, according to the 25,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) systems. The median sales price for condominiums increased 17.4 percent to $84,300 compared to a year prior and 14.3 percent compared to the previous month. Broward County condominium prices have increased 15 out of the last 16 months.
The median sales prices for non-distressed properties sold in April in Broward were $264,000 for single-family homes and $99,750 for condominiums.
Broward Average Sales Prices Rise
The average sales price for total single-family homes increased 12 percent, from $256,979 to $287,302. The average sales prices for condominiums rose 10 percent, from $120,689 in April 2011 to $137,173 last month. The average sales prices for non-distressed properties sold in April in Broward were $374,670 for single-family homes and $166,854 for condominiums.
"Home prices in Broward County are experiencing double-digit appreciation much sooner than expected, which is a very positive sign," said Rick Burch, 2012 president of the Broward County Board of Governors of the MIAMI Association of REALTORS. "Homes sales also remain at historically strong levels, which reflects the demand that is driving home prices in our area."
Broward Housing Inventory Declines 30 Percent
The inventory of residential listings in Broward County over the last year has decreased 30 percent from 15,781 to 11,086. Compared to the previous month, the total inventory of homes dropped four percent.
"The remarkable recovery of the Broward housing market benefits our community at large, as real estate is an integral part of the economy," said Ernesto Vega, president-elect of the Broward County Board of Governors of the MIAMI Association of REALTORS. "Unlike other markets throughout the U.S., demand for housing in Broward County should remain strong long into the future due to both U.S. and international buyers who are increasingly attracted to the local area."
In Broward County, single-family home sales increased 6.0 percent, from 1,124 in April 2011 to 1,190 last month. Condominium sales dropped 4.4 percent in April compared to a year earlier, from 1,645 to 1,572.
Distressed Properties
In April, 38 percent of all closed residential sales in Broward County were distressed, including REOs (bank-owned properties) and short sales, compared to 50 percent in April 2011 and 41 percent the previous month.
International Buyers Fuel Cash Sales
In April, cash sales accounted for 64 percent of all residential sales, 40 percent of single-family and 83 percent of condominium closings, in Broward County. Nearly 90 percent of international buyers in South Florida purchase properties all cash.
Statewide Prices Rise, Sales Decline
Statewide median sales prices in April increased 10.2 percent to $144,350 for condominiums and 16.1 percent to $108,000 for single-family homes, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing.
Statewide sales of existing single-family homes totaled 17,544 in April 2012, down 0.7 percent compared to a year ago. Statewide condominium sales totaled 9,765, down 4.9 percent from those sold in April 2011.
National Median Sales Price, Home Sales Rise
The national median existing-home price for all housing types was $177,400 in April, a 10.1 percent increase from April 2011, according to the National Association of Realtors (NAR). U.S. sales of existing single-family homes, townhomes, condominiums, and co-ops increased 3.4 percent from March and were 10 percent higher than they were in April 2011.
Nationally, all-cash sales fell to 29 percent in April - from 32 percent in March and 21 percent in April 2011 - reflecting the stronger presence of international buyers in the South Florida real estate market.
Total housing inventory nationally rose 9.5 percent at the end of April but was 20.6 percent below a year ago.
http://blog.miamire.com/international/2012/05/miami-home-prices-increase-for-fifth-consecutive-month
Click here Download PDF
"Miami single-family home and condominium prices continue to trend upwards due to the record demand experienced last year," said Martha Pomares, 2012 Chairman of the Board of the MIAMI Association of REALTORS. "Price appreciation should continue due to limited supply and strong demand from both U.S. and international buyers and investors."
Average Sales Price Also Rise
The April average sales price for single-family homes in Miami-Dade County increased 17 percent, from $355,342 in 2011 to $415,046 in 2012. The average sales prices for condominiums jumped 22.3 percent, from $242,616 to $293,717. The average sales prices for non-distressed properties sold in April in Miami-Dade were $626,877 for single-family homes and $414,664 for condominiums.
The sales of existing single-family homes in Miami-Dade increased 7.2 percent in April, from 830 to 890, compared to record sales levels in April 2011. Sales of condominiums were down 12.0 percent, from 1,404 to 1,237, compared to April 2011.
"The Miami residential real estate market continues to show remarkable strengthening compared to the rest of the nation," said 2012 MIAMI Association of REALTORS Residential President Patricia Delinois. "Miami is unique in many ways, including being the top market in nation for foreign buyers and investors. There are many benefits to living and working in Miami, which is why migrating U.S. residents and retiring baby boomers as well as vacation and second home buyers, and global business headquarters are increasingly attracted to our amazing city."
Inventory Continues Sharp Decline
Over the last year, the inventory of residential listings in Miami-Dade County has decreased 34 percent from 17,897 to 11,878. Compared to the previous month, the total inventory of homes dropped 4.04 percent.
Distressed Properties
Strong demand for bank-owned (REO) properties and improved processing of short sales has resulted in rapid absorption of distressed listings and contributed to price appreciation. In April, 47 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 59 percent in April 2011 and 49 percent the previous month.
International Buyers Fuel Cash Sales
In Miami-Dade County, 64 percent of total closed sales in March were all-cash sales, compared to 65 percent in March and 63 percent a year earlier. Cash sales accounted for 46 percent of single-family and 77 percent of condominium closings. Nearly 90 percent of international buyers in Florida purchase properties all cash.
Broward County Home Prices Continue to Rise
In April, the median sales price of single-family homes in Broward County was $205,000, up 17 percent compared to April 2011 and 14 percent compared to the previous month, according to the 25,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) systems. The median sales price for condominiums increased 17.4 percent to $84,300 compared to a year prior and 14.3 percent compared to the previous month. Broward County condominium prices have increased 15 out of the last 16 months.
The median sales prices for non-distressed properties sold in April in Broward were $264,000 for single-family homes and $99,750 for condominiums.
Broward Average Sales Prices Rise
The average sales price for total single-family homes increased 12 percent, from $256,979 to $287,302. The average sales prices for condominiums rose 10 percent, from $120,689 in April 2011 to $137,173 last month. The average sales prices for non-distressed properties sold in April in Broward were $374,670 for single-family homes and $166,854 for condominiums.
"Home prices in Broward County are experiencing double-digit appreciation much sooner than expected, which is a very positive sign," said Rick Burch, 2012 president of the Broward County Board of Governors of the MIAMI Association of REALTORS. "Homes sales also remain at historically strong levels, which reflects the demand that is driving home prices in our area."
Broward Housing Inventory Declines 30 Percent
The inventory of residential listings in Broward County over the last year has decreased 30 percent from 15,781 to 11,086. Compared to the previous month, the total inventory of homes dropped four percent.
"The remarkable recovery of the Broward housing market benefits our community at large, as real estate is an integral part of the economy," said Ernesto Vega, president-elect of the Broward County Board of Governors of the MIAMI Association of REALTORS. "Unlike other markets throughout the U.S., demand for housing in Broward County should remain strong long into the future due to both U.S. and international buyers who are increasingly attracted to the local area."
In Broward County, single-family home sales increased 6.0 percent, from 1,124 in April 2011 to 1,190 last month. Condominium sales dropped 4.4 percent in April compared to a year earlier, from 1,645 to 1,572.
Distressed Properties
In April, 38 percent of all closed residential sales in Broward County were distressed, including REOs (bank-owned properties) and short sales, compared to 50 percent in April 2011 and 41 percent the previous month.
International Buyers Fuel Cash Sales
In April, cash sales accounted for 64 percent of all residential sales, 40 percent of single-family and 83 percent of condominium closings, in Broward County. Nearly 90 percent of international buyers in South Florida purchase properties all cash.
Statewide Prices Rise, Sales Decline
Statewide median sales prices in April increased 10.2 percent to $144,350 for condominiums and 16.1 percent to $108,000 for single-family homes, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing.
Statewide sales of existing single-family homes totaled 17,544 in April 2012, down 0.7 percent compared to a year ago. Statewide condominium sales totaled 9,765, down 4.9 percent from those sold in April 2011.
National Median Sales Price, Home Sales Rise
The national median existing-home price for all housing types was $177,400 in April, a 10.1 percent increase from April 2011, according to the National Association of Realtors (NAR). U.S. sales of existing single-family homes, townhomes, condominiums, and co-ops increased 3.4 percent from March and were 10 percent higher than they were in April 2011.
Nationally, all-cash sales fell to 29 percent in April - from 32 percent in March and 21 percent in April 2011 - reflecting the stronger presence of international buyers in the South Florida real estate market.
Total housing inventory nationally rose 9.5 percent at the end of April but was 20.6 percent below a year ago.
http://blog.miamire.com/international/2012/05/miami-home-prices-increase-for-fifth-consecutive-month
Click here Download PDF
Sunday, June 3, 2012
ILHM Luxury Housing Report Detail: Miami 6/4/12
Fang Oliver is a member of Institute of Luxury Home Marketing, exclusively held by less than 1% of Realtors. Call Oliver at 305-956-9978 for your special homes!
The charts below show the 7-day and 90-day rolling averages for list price, days on market, and inventory for the metro area's luxury market (e.g. top 10 zips with median prices above $500k)
The chart below shows the Altos Market Action Index for the metro area's luxury market and the National Index.
The charts below show the 7-day and 90-day rolling averages for list price, days on market, and inventory for the metro area's luxury market (e.g. top 10 zips with median prices above $500k)
ilhm-miami vs National
The charts below compare the ilhm-miami luxury market with the ILHM National Luxury Market Index and show 90-day rolling averages for Median List Price and Days on Market.The chart below shows the Altos Market Action Index for the metro area's luxury market and the National Index.
ILHM National Luxury Market Report 6/3/2012
National Summary Charts
The charts below show the 7-day and 90-day rolling averages for median list price, days on market, and inventory for the national composite--a snapshot of how, together, the luxury markets around the country are performing.(For additional data and analysis, download the PDF executive summary report in the sidebar above)
Altos Research developed the Market Action Index (MAI) for an at-a-glance measurement of market conditions. The MAI is a barometer of real estate supply and demand. A value above 30 indicates demand is relatively robust, we call that a Seller's Market. Below 30 is a Buyer's Market.
Also use the Market Action Index trends as a leading indicator for prices. When markets fall persistently into Buyer's territory prices will likely follow.
The definition of this market stat is:
"Percentage of homes on the market that have decreased their asking price at least once over the past 90-day period."
In any market, even in strong seller's markets, there will always be some number of properties that will decrease their listing price. These may include sellers that drastically overpriced their homes just "to see what they could get" or homes that simply entered the market at a price level above what the market will bear.
Even in strong seller's markets, the Percent Price Decreased will be 10-12%, so some repricing of individual properties is common in any market. In weaker markets, this value begins rise into the teens, 20%, 30%, and higher. Percent Price Decreased is an incredibly insightful gauge of demand levels in the residential housing market. This statistic illustrates how many listed properties may be behind the "price curve" - listed at a price above what the market is willing to pay for similar properties.
However, "Percent Price Decreased" alone does not indicate the overall health of a particular market. This statistic should be combined with other market stats to determine the overall direction of a market.
http://www.luxuryhomemarketing.com/report
America's Sprawling Cities
As American cities continue to grow in population, they are growing in physical size too. There is an interesting piece in The Atlantic Cities that delves into current census data and looks at the trends of growing urban populations (more than 80% of Americans now live in urban areas) and cities, both large and small, gobbling up more land.
These are clearly metro areas that have grown dramatically, but it is not just large metros that are growing. The cities with the largest percentage increases tended to be the smaller to mid-sized cities.
These trends are a reflection of our changing cities, development patterns and home buying behaviors. Understanding them is a key to understanding where future opportunities may lie.
in Luxury Trends, Research & Statistics | Permalink
These growing urban areas aren't just cities extending their borders, according to Hawley, but rather clusters of urban development on the fringes of cities that are growing towards each other. As two areas spread out and get closer together, the space in between "gets sort of swallowed as growth between the two areas happens," Hawley says.Here's a graph which shows "How U.S. urban land area has grown since 1990 in the 10 biggest gainers of 2010"
These are clearly metro areas that have grown dramatically, but it is not just large metros that are growing. The cities with the largest percentage increases tended to be the smaller to mid-sized cities.
These trends are a reflection of our changing cities, development patterns and home buying behaviors. Understanding them is a key to understanding where future opportunities may lie.
in Luxury Trends, Research & Statistics | Permalink
Broward County Home Prices Continue to Rise
Miami, FL – In April, the median sales price of single-family homes in Broward County was $205,000, up 17 percent compared to April 2011 and 14 percent compared to the previous month, according to the 25,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) systems. The median sales price for condominiums increased 17.4 percent to $84,300 compared to a year prior and 14.3 percent compared to the previous month. Broward County condominium prices have increased 15 out of the last 16 months.
The median sales prices for non-distressed properties sold in April in Broward were $264,000 for single-family homes and $99,750 for condominiums.
The average sales price for total single-family homes increased 12 percent, from $256,979 to $287,302. The average sales prices for condominiums rose 10 percent, from $120,689 in April 2011 to $137,173 last month. The average sales prices for non-distressed properties sold in April in Broward were $374,670 for single-family homes and $166,854 for condominiums.
“Home prices in Broward County are experiencing double-digit appreciation much sooner than expected, which is a very positive sign,” said Rick Burch, 2012 president of the Broward County Board of Governors of the MIAMI Association of REALTORS. “Homes sales also remain at historically strong levels, which reflects the demand that is driving home prices in our area.”
Statewide median sales prices in April increased 10.2 percent to $144,350 for single-family homes and 16.1 percent to $108,000 for condominiums, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. The national median existing-home price for all housing types was $177,400 in April, a 10.1 percent increase from April 2011.
Broward Housing Inventory Declines 33 Percent
The inventory of residential listings in Broward County over the last year has decreased 30 percent from 15,781 to 11,086. Compared to the previous month, the total inventory of homes
dropped four percent. Total housing inventory nationally rose 9.5 percent at the end of April but was 20.6 percent below a year ago.
“The remarkable recovery of the Broward housing market benefits our community at large, as real estate is an integral part of the economy,” said Ernesto Vega, president-elect of the Broward County Board of Governors of the MIAMI Association of REALTORS. “Unlike other markets throughout the U.S., demand for housing in Broward County should remain strong long into the future due to both U.S. and international buyers who are increasingly attracted to the local area.”
In Broward County, single-family home sales increased 6.0 percent, from 1,124 in April 2011 to 1,190 last month. Condominium sales dropped 4.4 percent in April compared to a year earlier, from 1,645 to 1,572.
Statewide sales of existing single-family homes totaled 17,544 in April 2012, down 0.7 percent compared to a year ago. Statewide condominium sales totaled 9,765, down 4.9 percent from those sold in April 2011. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops increased 3.4 percent from March and were 10 percent higher than they were in April 2011, according to the National Association of Realtors (NAR).
Distressed Properties
In April, 38 percent of all closed residential sales in Broward County were distressed, including REOs (bank-owned properties) and short sales, compared to 50 percent in April 2011 and 41 percent the previous month.
International Buyers Fuel Cash Sales
In April, cash sales accounted for 64 percent of all residential sales, 40 percent of single-family and 83 percent of condominium closings, in Broward County. Nearly 90 percent of international buyers in South Florida purchase properties all cash. Nationally, all-cash sales fell to 29 percent in April - from 32 percent in March and 21 percent in April 2011 - reflecting the stronger presence of international buyers in the South Florida real estate market.
Note: Statistics in this news release may vary depending on reporting dates. Statistics reported by MIAMI are not impacted by NAR’s rebenchmarking efforts. MIAMI reports exact statistics directly from its MLS system.
About the MIAMI Association of REALTORS
The MIAMI Association of REALTORS was chartered by the National Association of Realtors in 1920 and is celebrating its 90th year of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of four organizations, the Residential Association, the Realtors Commercial Alliance, the Broward County Board of Governors, and the International Council, it represents more than 25,000 real estate professionals in all aspects of real estate sales, marketing, and brokerage. It is the largest local association in the National Association of Realtors, and has partnerships with more than 100 international organizations worldwide. MIAMI’s official website is www.miamire.com.
The median sales prices for non-distressed properties sold in April in Broward were $264,000 for single-family homes and $99,750 for condominiums.
The average sales price for total single-family homes increased 12 percent, from $256,979 to $287,302. The average sales prices for condominiums rose 10 percent, from $120,689 in April 2011 to $137,173 last month. The average sales prices for non-distressed properties sold in April in Broward were $374,670 for single-family homes and $166,854 for condominiums.
“Home prices in Broward County are experiencing double-digit appreciation much sooner than expected, which is a very positive sign,” said Rick Burch, 2012 president of the Broward County Board of Governors of the MIAMI Association of REALTORS. “Homes sales also remain at historically strong levels, which reflects the demand that is driving home prices in our area.”
Statewide median sales prices in April increased 10.2 percent to $144,350 for single-family homes and 16.1 percent to $108,000 for condominiums, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. The national median existing-home price for all housing types was $177,400 in April, a 10.1 percent increase from April 2011.
Broward Housing Inventory Declines 33 Percent
The inventory of residential listings in Broward County over the last year has decreased 30 percent from 15,781 to 11,086. Compared to the previous month, the total inventory of homes
dropped four percent. Total housing inventory nationally rose 9.5 percent at the end of April but was 20.6 percent below a year ago.
“The remarkable recovery of the Broward housing market benefits our community at large, as real estate is an integral part of the economy,” said Ernesto Vega, president-elect of the Broward County Board of Governors of the MIAMI Association of REALTORS. “Unlike other markets throughout the U.S., demand for housing in Broward County should remain strong long into the future due to both U.S. and international buyers who are increasingly attracted to the local area.”
In Broward County, single-family home sales increased 6.0 percent, from 1,124 in April 2011 to 1,190 last month. Condominium sales dropped 4.4 percent in April compared to a year earlier, from 1,645 to 1,572.
Statewide sales of existing single-family homes totaled 17,544 in April 2012, down 0.7 percent compared to a year ago. Statewide condominium sales totaled 9,765, down 4.9 percent from those sold in April 2011. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops increased 3.4 percent from March and were 10 percent higher than they were in April 2011, according to the National Association of Realtors (NAR).
Distressed Properties
In April, 38 percent of all closed residential sales in Broward County were distressed, including REOs (bank-owned properties) and short sales, compared to 50 percent in April 2011 and 41 percent the previous month.
International Buyers Fuel Cash Sales
In April, cash sales accounted for 64 percent of all residential sales, 40 percent of single-family and 83 percent of condominium closings, in Broward County. Nearly 90 percent of international buyers in South Florida purchase properties all cash. Nationally, all-cash sales fell to 29 percent in April - from 32 percent in March and 21 percent in April 2011 - reflecting the stronger presence of international buyers in the South Florida real estate market.
Note: Statistics in this news release may vary depending on reporting dates. Statistics reported by MIAMI are not impacted by NAR’s rebenchmarking efforts. MIAMI reports exact statistics directly from its MLS system.
About the MIAMI Association of REALTORS
The MIAMI Association of REALTORS was chartered by the National Association of Realtors in 1920 and is celebrating its 90th year of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of four organizations, the Residential Association, the Realtors Commercial Alliance, the Broward County Board of Governors, and the International Council, it represents more than 25,000 real estate professionals in all aspects of real estate sales, marketing, and brokerage. It is the largest local association in the National Association of Realtors, and has partnerships with more than 100 international organizations worldwide. MIAMI’s official website is www.miamire.com.
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