Florida's Real Estate Rebound the Strongest in the Nation

Fla. real estate rebound strongest in nation

 

MCLEAN, Va. – Freddie Mac's latest Multi-Indicator Market Index (MiMi) finds that the Florida real estate market's rebound leads the nation. In a city-by-city comparison, Orlando leads the nation in both a month-to-month and year-to-year comparison, and only one non-Florida city makes the top five list for either timeframe.

Florida comparisons
Month-over-month, Florida's index score rose 2.0 percent. It was followed by Colorado (+1.99%), New Jersey (+1.83%), Connecticut (+1.80%) and Nevada (+1.48%).

Year-over-year, Florida's index grew by 14.35 percent. It was followed by Oregon (+13.45%), Nevada (12.18%), Colorado (+11.65%), and Washington (+10.18%).

Florida metro comparisons
Orlando topped all city lists from Freddie Mac. Month-to-month, Orlando improved 2.6 percent, followed by Greenville, S.C. (+2.55%), Cape Coral (+2.51%), Tampa (+2.19%) and Jacksonville (+2.12%).

Year-to-year, Orlando improved 18.27 percent, followed by Cape Coral (+17.75%), Tampa (+15.99%), Palm Bay (+14.98%) and North Port (+14.77%).

"Florida has some of the most improving housing markets in the country, largely a reflection of more borrowers becoming current on their mortgage payments as the local employment picture improves and house prices rebound," says Freddie Mac Deputy Chief Economist Len Kiefer. "Nationally, all MiMi indicators are heading in the right direction for the second consecutive month and improving more than 6 percent from the same time last year."

U.S. numbers
Nationally, Freddie Mac added one more name to its list of slowly stabilizing markets: Rhode Island. It also added four cities: Philadelphia and Harrisburg, Pennsylvania; Phoenix, Arizona; and Albany, New York.

The national MiMi value stands at 81, indicating a housing market that is on its outer range of stable housing activity. The number improved 0.93 percent month-to-month and 6.17 percent year-to-year. Since it's all-time low in October 2010, the MiMi has improved 37%.

Reprint courtesy of and © 2015 Florida Realtors®. Original post here: http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=328460

Fannie Mae: ‘Things are looking up for housing’

Americans' attitudes about the housing market are strengthening, according to Fannie Mae's May 2015 National Housing Survey, a survey of about 1,000 consumers on their views about homeownership. The survey results echo recent forecasts that predict a pickup in housing activity for the year.

In the latest survey, more consumers reported an increase in household income, nearing an all-time survey high. The growth in wages falls in line with the recent positive jobs reports that show an increase in average hourly earnings. The percentage of consumers surveyed by Fannie Mae who say their household income is "significantly higher" than 12 months ago grew six percentage points to 28 percent over the past two months.

"As job growth appears to be driving meaningful income growth, the outlook for housing market growth also is improving," according to Fannie Mae's report.

The share of consumers who say it's a good time to sell a home continues to rise, also reaching an all-time survey high in May at 49 percent of respondents – six percentage points higher year-to-year. In addition, the number of consumers who would prefer to buy rather than rent on their next move rose three percentage points in May to 66 percent.

"Things are looking up for housing," says Doug Duncan, senior vice president and chief economist at Fannie Mae, noting the survey high for those who say it's a good time to sell, as well as the growing percentage of consumers who say their household income is significantly higher than last year.

"We have found that these two indicators – good time to sell and income growth – are key drivers for the performance of the housing market," Duncan says. "The increase in these indicators suggests our forecast of moderate improvement in the housing market in 2015 is on course and mirrors the near-term performance of other leading market data, including mortgage applications and pending home sales."

The survey also found:

• Consumers say they believe home prices will rise by 2.8 percent, on average, in the next 12 months.
• The number of respondents who believe mortgage rates will go up in the next 12 months dropped to 47 percent.
• Consumers say they believe rental prices will rise about 4.3 percent in the next 12 months.
• The percentage of respondents who believe it would be easy to get a home mortgage fell by 2 percentage points to 50 percent, while those who think it would be difficult remained at 46 percent.

Source: Fannie Mae
Repost courtesy of and © Copyright 2015 INFORMATION, INC. Bethesda, MD. Original post here: http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=4&id=324273

South Florida sees third-highest annual home price growth in nation

A strong economy and an influx of new residents meant higher home prices in South Florida over the past year.

The resale value of single-family homes in Miami-Dade, Broward and Palm Beach counties grew 9.2 percent in February over the same month in 2014. Only Denver (10 percent) and San Francisco (9.8 percent) saw bigger annual gains.

Nationwide, home prices grew 4.2 percent over the year.

Those numbers come from a closely watched market barometer, the S&P/Case-Shiller Home Price Indices, which measure home prices around the country and are released on a two-month lag. But rising home values can pose a problem if wages don’t keep up.

“In order for people to move into a second home, we need first-time home buyers to come into the market,” said Bill Banfield, a vice president at the mortgage lender Quicken Loans. “If the jobs being created for younger people don’t have sufficient wages, you’re going to end up with buyers priced out of the market and reluctant to purchase a home.”

As in recent reports, South Florida’s monthly price gains remain slightly less rampant after warp-speed increases post-recession. Analysts say the slow and steady growth is a sign of a healthy market, not a cause for concern.

Between January and February, home values in the Tri-County area grew at a seasonally adjusted rate of 1.1 percent. That was solidly in the middle of the pack compared with the 20 major metropolitan areas measured by the report. San Francisco (3.3 percent), Denver (2.2 percent), Los Angeles (1.6 percent) and Minneapolis (1.6 percent) led the way in terms of monthly growth.

One factor dragging on Miami’s growth: a stubbornly high rate of “distressed” sales, which include foreclosures and short sales. Short sales occur when the seller owes more on a home mortgage than the house is worth. Both usually sell at steep discounts to traditional home sales.

“Investors and others looking to take advantage of bargains were driving up home values in Miami and South Florida,” said Kwame Donaldson, an economist at Moody’s Analytics. “Now that those bargains are growing more rare, we’re seeing less price appreciation. This is a return to a normal market.”

Read more here: http://www.miamiherald.com/news/business/article19800501.html#emlnl=5-Minute_Herald#storylink=cpy

Miami-Dade County led the nation in distressed sales in February, according to a recent report from the property analytics firm CoreLogic, with more than 24 percent of local home sales in February considered distressed. That’s way down from 2009, when one in two Miami-Dade home sales were distressed sales, but the dial has scarcely moved since last year.

Florida’s housing market was hit harder than most other states during the financial crisis, and its court system has struggled to keep up with the pace of foreclosures. Distressed sales accounted for 22 percent of the state’s total home sales in February.

Foreclosures and short sales made up 13.5 percent of home sales nationwide. “The judicial wheels have stalled in Florida,” Donaldson said.

Information from The Associated Press was used in this report.

Read more here: http://www.miamiherald.com/news/business/article19800501.html#emlnl=5-Minute_Herald#storylink=cpy

Read more here: http://www.miamiherald.com/news/business/article19800501.html#emlnl=5-Minute_Herald#storylink=cpy

Home values across the nation

Prices for single-family homes in Miami rose 9.2 percent in February 2015 over February 2014 — the third-fastest rate of growth in the nation.

City	Rank	Increase from Feb. 2014
Denver	1	10 percent
San Francisco	2	9.8 percent
Miami	3	9.2 percent
Dallas	4	8.6 percent
Seattle	5	7.1 percent
Portland	6	7.1 percent
Tampa	7	6.9 percent
Los Angeles	8	5.8 percent
Las Vegas	9	5.8 percent
Atlanta	10	5.6 percent
National		4.2 percent

SOURCE: S&P/Case-Shiller Home Price Indices

Read more here: http://www.miamiherald.com/news/business/article19800501.html#emlnl=5-Minute_Herald#storylink=cpy

Home values across the nation

Prices for single-family homes in Miami rose 9.2 percent in February 2015 over February 2014 — the third-fastest rate of growth in the nation.

City	Rank	Increase from Feb. 2014
Denver	1	10 percent
San Francisco	2	9.8 percent
Miami	3	9.2 percent
Dallas	4	8.6 percent
Seattle	5	7.1 percent
Portland	6	7.1 percent
Tampa	7	6.9 percent
Los Angeles	8	5.8 percent
Las Vegas	9	5.8 percent
Atlanta	10	5.6 percent
National		4.2 percent

SOURCE: S&P/Case-Shiller Home Price Indices

Read more here: http://www.miamiherald.com/news/business/article19800501.html#emlnl=5-Minute_Herald#storylink=cpy

Article Courtesy of The Miami Herald and Author Nicholas Nehamas - nnehamas@MiamiHerald.com
Original Article: http://www.miamiherald.com/news/business/article19800501.html#emlnl=5-Minute_Herald

South Florida house prices: 'Price Reduced' becoming the new normal

As South Florida house prices are reduced, thousands of dollars in phantom equity disappear.

By Mary Shanklin, Orlando Sentinel 6:37 p.m. EDT, October 4, 2010

The "Price Reduced" sign in front of a house is showing up more and more on properties listed for sale in South Florida .

The percentage of homes with price reductions in Palm Beach County has risen to 26 percent of the market compared with 22 percent at the beginning of the year, according to the real estate research firm Trulia Inc. In Broward County, the percentage inched up to 18 percent from 16 percent.

Of the homes listed for sale in select ZIP codes in early September, the proportion with the wet blanket of a price cut ranged from 6 percent in Boynton Beach to 30 percent in Boca Raton andHighland Beach. And the average size of those discounts ranged from 7 percent in Boynton to 14 percent in Boca/Highland Beach.

In Broward, 14 percent of the listings in Coral Springs/Parkland had price reductions, while a quarter of the listings in Fort Lauderdale had price cuts. The average size of the reductions in those areas was 11 percent.

With the posting of every new "Price Reduced" sign on a street, thousands of dollars in phantom equity disappear.

"What we look at is the potential wealth lost, and the amount of equity they [homeowners] thought they had and didn't," said Ken Shuman, a spokesman for Trulia. "But if you live on a street with five houses for sale, and three are bank owned, you're going to have to adjust your price."

Discounts have become commonplace in South Florida . The median sales price in Broward fell last month to $206,700, about what it was in early 2004. In Palm Beach County, the median dropped to $227,800, a price last seen in 2003.

Michael Citron, a real estate agent for RE/MAX ParkCreek in Coconut Creek, said the first 30 to 45 days are the most important for a new listing.

If it's priced too high, it won't get any offers, forcing the buyer to cut the price. A house with multiple price reductions tells buyers that something's wrong, Citron said.

He said many sellers often have unrealistic expectations about their asking prices. "I always tell my sellers to price the home at or ahead of the market so they don't have to chase the market," Citron said.

If you have to unload the property as a "short sale" — that is, for less money than is owed on the mortgage — some agents suggest dropping your price 5 percent to 10 percent every seven to 10 days. Those attempting to sell a moderately priced home under ordinary circumstances should look at the competition in the neighborhood and adjust accordingly.

Reprinted courtesy of The Sun-Sentinel: http://www.sun-sentinel.com/business/os-house-price-breaks-zip-20100927,0,381799.story

Home Sales in Broward County Up 46% from a Year Ago

Bargains drive up home sales in Broward County
With foreclosure glut, more price drops likely

By Paul Owers | South Florida Sun-Sentinel
November 25, 2008

Find Broward County Homes: http://www.InvestFloridaRealty.com/search.htm

Even as job losses mount and mortgage lending remains tight, South Floridians still are buying homes.

Bargain hunters continue to respond to plunging prices, with October sales of existing homes in Broward County rising 46 percent, to 625 from 428 a year ago, the Florida Association of Realtors said Monday. The median price plummeted 29 percent, to $252,500 from $354,000 last October.

Sales have shot up since July, but that doesn't mean the region's nearly 3-year-old housing slump is ending, analysts say.

The October figures reflect home sales contracts signed during the summer, before the financial free-fall on Wall Street. Prices are expected to keep dropping as long as the foreclosure problem persists.

"We would be lucky if the market bottoms out in South Florida in 2009," Miami-based housing consultant Lewis Goodkin said.

Broward's condominium sector followed a similar trend last month. Condo sales increased 30 percent while the median price fell 28 percent, to $115,200.

Distressed properties are popular targets among people trying to buy now.

Roger Palermo, a building maintenance supervisor for the city of Pompano Beach, said he looked at almost 50 houses. Many needed new roofs and other major repairs. And most were foreclosures or short sales, in which lenders take less than what's owed on the mortgages and forgive the remaining debt.

Overwhelmed with properties, some banks said they wouldn't consider Palermo's offers for three months or longer. One lender came back with a counteroffer higher than the asking price.

Earlier this month, Palermo and his fiancee finally bought a two-bedroom house in Boca Raton after the previous owner's death. They paid $225,000, $34,000 less than the asking price.

"At least 75 percent of the homes for sale are either foreclosures or short sales and need a lot of work," said Palermo, 48. "But it's hard because you can't even get answers from the banks."

In Palm Beach County, October sales increased 37 percent, and the median price dropped 24 percent to $264,600.

Statewide, sales increased 15 percent last month, while the median price fell 24 percent, to $169,700, the Realtors' group said.

Nationally, sales fell 3.1 percent in October to a seasonally adjusted annual rate of 4.98 million units. The median sales price fell 11.3 percent from a year ago to $183,000. That was the largest year-over-year drop on records since 1968 and the lowest median sales price since March 2004. The median is the level at which half sold for more, half for less.

In South Florida, the recent sales momentum is helping reduce the number of properties on the market.

Broward County had a little more than 28,000 homes and condos for sale at the end of October, down 5 percent from a year ago, according to the Miami-based Keyes Co.

But demand still is lagging. It takes longer to sell a house in South Florida, an average of 172 days, than anywhere else in the nation, according to an October housing report from California real estate firms Altos Research and Real IQ.

"The inventory news is starting to get a little better, but the question is, how much more pressure are we going to get from new foreclosures that come on the market?" said Mike Larson, a housing analyst with Weiss Research in Jupiter.

Regardless, real estate agents here are enjoying the renewed interest among buyers, many of whom are coming from the Northeast.

"We're hoping for a really cold winter up north," joked Pamela Orr, an agent with Balistreri Realty in Lighthouse Point. "If it's priced right, people are buying."

Find Broward County Homes: http://www.InvestFloridaRealty.com/search.htm

Courtesy: Fort Lauderdale Sun-Sentinel http://www.sun-sentinel.com/business/realestate/sfl-flzhousingbr1125sbnov25,0,6508022.story

Home Sales Up, Prices Down in South Florida

Realtors: August home sales up, prices down in South Florida
Reprinted from The Miami Herald
BY Matthew Haggmann

South Florida home sales jumped in August amid signs that lower prices are drawing buyers back into the region's long-struggling housing market.

Sales of existing single-family homes in Miami-Dade County increased 22 percent and Broward County sales increased 12 percent compared to the same period a year ago, according to numbers released Wednesday by the Florida Association of Realtors.

Condominium sales were up 13 percent in Miami-Dade, while condo activity in Broward for the month was even compared to August 2007.

A big reason for increased sales appears to be healthy price drops. Prices were at least 20 percent lower in August than a year ago for single-family homes and condos in both Miami-Dade and Broward counties.

The median price for a Miami-Dade single-family home was $276,000 in August, amounting to a 30 percent drop from last year. For Broward single-family homes, the median price was $269,800, down 27 percent.

The median condo price in Miami-Dade was $210,400; it was $133,300 in Broward.

The outsized inventory of residences for sale also declined in August. Market watchers say the number of homes on the market must shrink significantly -- creating a better balance between buyers and sellers -- before prices start rising again.

The South Florida results were in contrast to the rest of the country.

Nationally, sales of existing U.S. homes fell by 2.2 percent in August, though the number of unsold homes on the market also dropped sharply from the previous month's record high.

The National Association of Realtors said sales fell to a seasonally adjusted annual rate of 4.91 million units, from an upwardly revised pace of 5.02 million in July. Sales had been expected to fall by 1.6 percent, according to economists surveyed by Thomson/IFR.

The median price of an existing home dropped to $203,100 from $224,400 a year ago. For single-family houses, the median price dropped 9.7 percent, the biggest decline since records began in 1968.

Resales account for about 90 percent of the market, while purchases of new homes make up the rest. Sales of existing homes are compiled from contract closings and may reflect contracts signed one or two months earlier.

There were 4.2 million unsold homes on the market, a 7 percent drop from the record set in July. It was the steepest drop in inventory since December 2006.

Reprinted from the Miami Herald: http://www.miamiherald.com/business/real-estate/story/699288.html