Florida Real Estate Blog

April 2013 Saw More Listings on the Market, BUT There Were Also More Buyers! Inventories Remain Low!

CHICAGO – May 15, 2013 – The housing market appears to be having a broad-based recovery, according to April data through realtor.com, the National Association of Realtors®’ (NAR) website operated by Move Inc.

Most of the nation sees an upswing in home sales during the spring, and an analysis of housing data based on realtor.com’s listings found positive news for buyers facing a limited inventory of homes for sale: The number of for-sale listings on Realtor.com increased 3.12 percent

In addition, listing home prices – which may or may not be an accurate gauge of selling prices – increased 2.63 percent.

However, it appears that even more buyers entered the market – enough to override any additional inventory. Realtor.com says the homes were on the market nationwide about 81 days in April – a decrease of nearly 11 percent since April 2012 – suggesting that new listings don’t stay on the market very long.

“Due to increased demand for homes and more confidence in the job market, we are beginning to see more and more buyers entering the housing market,” says Steve Berkowitz, chief executive officer of Move. “In some markets, we are seeing homes staying on the market for only a few weeks.”

Despite the increase in inventory in one month, nationwide inventory declined year-over  -year in all but 11 of the 146 markets realtor.com monitors. Approximately 36 markets registered a decrease of listings by 20 percent or more, still highlighting near records lows of available homes.

Approximately 37 markets experienced a decline in list price since last year, a figure that has been improving throughout the homebuying season, according to realtor.com data. The number of markets that saw a steady or slight decline in median list price is decreasing throughout the homebuying season. In April, median list prices increased in 109 markets.

© 2013 Florida Realtors®

Reprinted with permission. Florida Realtors®. All rights reserved.

Over 50% of Americans Believe Home Prices will Rise over Coming Year! More Optimism Noted!

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

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

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

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

Survey Highlights

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

© 2013 Florida Realtors®

Reprinted with permission. Florida Realtors®. All rights reserved.

Checklist for First-Time Home Buyers - Useful Information for You!

PROVIDENCE, R.I. – April 29, 2013 – Homeownership starts with a desire to achieve the American Dream – to have a home of one’s own. After that, however, pragmatic questions must be answered, such as how much a buyer can afford and whether a bank will be willing to lend them money.

“Buying a home can be one of the biggest purchases a consumer will make,” says Cheryl Nolda, president, Home Lending Solutions, RBS Citizens Financial Group. “A house is the foundation where individuals and families build their lives and make memories.”

Charter One Bank put together a list of home buying tips for consumers who have decided that homeownership is right for them:

• Determine purchasing power. Calculate how much you can afford to spend before you start looking to focus on houses in that price range. The answer depends largely on income and current monthly debt payments.

• Secure your credit report. If there are any credit issues, get them addressed before applying for a mortgage loan. A free annual credit report can be obtained by calling 1-877-322-8228 or going to: www.annualcreditreport.com.

• Do your mortgage homework. Take the time to learn important mortgage and home-buying terms; more importantly, understand what they mean. Investigate the details – What are the additional costs, such as origination or application fees?

• Get pre-approved. A mortgage pre-approval assessment tells you approximately how much money you can borrow from your lender. In addition, many sellers require a pre-approval letter before reviewing a buyer’s offer. (After applying, avoid doing anything that would negatively impact your credit score, such as opening a new credit card or making a large purchase until after the home closing.)

• Buyer’s checklist. Use a homebuyer’s checklist at each house to keep track of important features like amenities, neighborhood and schools. This helps you compare notes and remember the differences and characteristics of each house, especially if you visit several houses in different locations.

• Know the market. When you know local market and home values, you’re less likely to overpay for a property. Use the Comparative Market Analysis (CMA) and full MLS listing details of the most similar comparable properties to help you know how much you should offer. And be on the lookout for owners who are eager to sell and willing to negotiate – this can save you thousands of dollars.

• Home inspection. Hire a professional home inspector to determine if there are any potential problems that can be expensive to repair.

• Have a backup plan. You and a seller may reach a stalemate when negotiating. Consider developing a back-up plan, just in case you are unable to reach an agreement. Define your maximum offer and don’t go over it – there are almost always other homes that will meet your criteria.

© 2013 Florida Realtors®

Reprinted with permission. Florida Realtors®. All rights reserved.

NAR Survey Says There are More Vacation Home Buyers and Fewer Investor Buyers Out There

WASHINGTON – April 2, 2013 – The National Association of Realtors® (NAR) released its 2013 Investment and Vacation Home Buyers Survey, which covers existing- and new-home transactions in 2012.

The survey finds an increase of 10.1 percent for vacation home sales, to 553,000 from 502,000 a year earlier in 2011.

Investment-home sales declined a bit year-to-year, but they remain higher than historic norms. In 2012, investment home sales were 2.1 percent (1.21 million), down from 1.23 million in 2011. But investor sales were well less than 1 million during the downturn, according to NAR.

Owner-occupied purchases jumped 17.4 percent to 3.27 million last year from 2.79 million in 2011.

Vacation-home sales accounted for 11 percent of all transactions (investor, vacation and owner-occupied) last year, unchanged from 2011. The portion of investment sales was 24 percent in 2012, down from 27 percent in 2011, marking the second highest share since 2005.

“We had a strong stock market recovery, which helps more people in the prime ages for buying vacation homes. Attractively priced recreational property is also a big draw,” says NAR Chief Economist Lawrence Yun.

Even with a slight drop in investor purchases, Yun notes an ongoing investor presence.

“Investors have been very active in the market over the past two years, attracted mostly by discounted foreclosures that could be quickly turned into profitable rentals,” Yun says. “With rising prices and limited inventory, notably in the low price ranges, investors are likely to step back in coming years.”

The median investment-home price was $115,000 in 2012, up 15 percent from $100,000 in 2011, while the median vacation-home price was $150,000, compared with $121,300 in 2011, reflecting a greater number of more expensive recreational property sales in 2012.

All-cash purchases remain common in the investment- and vacation-home market: half of investment buyers paid cash in 2012, as did 46 percent of vacation-home buyers. Forty-seven percent of investment homes purchased in 2012 were distressed homes, as were 35 percent of vacation homes.

Of buyers who financed their purchase with a mortgage in 2012, large downpayments remain typical. The median downpayment for both investment- and vacation-home buyers was 27 percent, the same as in 2011.

Investment-home buyers in 2012 had a median age of 45, earned $85,700 and bought a home that was relatively close to their primary residence – a median distance of 21 miles, although 29 percent were more than 100 miles away. Thirty-five percent of investment buyers purchased more than one property.

“Property flipping modestly increased in 2012,” Yun says. “However, this isn’t flipping in the sense of what took place during the housing boom. Rather, investors generally are renovating and improving properties before placing them back on the market to resell at a profit.”

Six percent of homes purchased by investment buyers last year have already been resold, and another 8 percent are planned to be sold within a year. In the 2011 study, 5 percent of investment homes were already resold, and 8 percent were planned to be sold within a year. Overall, investment buyers plan to hold the property for a median of 8 years, up from 5 years in 2011.

Seventy-eight percent of all second-home buyers said it was a good time to buy, compared with 68 percent of primary residence buyers. “This suggests that second-home buyers tend to be a step ahead of general buyers in sensing a market recovery,” Yun says.

The typical vacation-home buyer was 47 years old, had a median household income of $92,100 and purchased a property that was a median distance of 435 miles from their primary residence; 34 percent of vacation homes were within 100 miles and 46 percent were more than 500 miles. Buyers plan to own their recreational property for a median of 10 years.

Lifestyle factors remain the primary motivation for vacation-home buyers, while rental income is the main factor in investment purchases.

Buyers listed many reasons for purchasing a vacation home: 80 percent want to use the property for vacations or as a family retreat; 27 percent plan to use it as a primary residence in the future; 23 percent plan to rent to others; and 23 percent wanted to diversify their investments or saw a good investment opportunity.

Fifty-five percent of investment buyers said they purchased for rental income, 30 percent wanted to diversify their investments or saw a good investment opportunity, and 20 percent wanted to use the home for vacations or as a family retreat.

Eleven percent of vacation buyers and 16 percent of investment buyers purchased the property for a family member, friend or relative to use, often for a son or daughter to use while attending school.

Forty-five percent of vacation homes purchased last year were in the South, 25 percent in the West, 17 percent in the Northeast and 12 percent in the Midwest.

Thirty-six percent of investment properties purchased last year were in the South, 28 percent in the West, 20 percent in the Northeast and 16 percent in the Midwest.

Forty-seven percent of investment buyers said they were likely to purchase another investment property within two years, as did 37 percent of vacation-home buyers. Twenty-nine percent of vacation buyers said they were likely to purchase another vacation home within two years, as did 31 percent of investment buyers.

About 42.8 million people in the U.S. are ages 50-59 – a group that dominated second-home sales in the middle part of the past decade and established records. An additional 43.1 million people are 40-49 years old, which is the prime age for current buyers, while another 40.1 million are 30-39.

NAR’s analysis of U.S. Census Bureau data shows there are 7.9 million vacation homes and 43.7 million investment units in the U.S., compared with 75.2 million owner-occupied homes.

NAR’s 2013 Investment and Vacation Home Buyers Survey, conducted in March 2013, includes answers from 2,326 usable responses about homes purchased during 2012. The survey controlled for age and income, based on information from the larger 2012 NAR Profile of Home Buyers and Sellers, to limit any biases in the characteristics of respondents.

© 2013 Florida Realtors®

Reprinted with permission. Florida Realtors®. All rights reserved.

Buyer's Age Often Influences the Size of the Home That is Purchased!

WASHINGTON – March 21, 2013 – A recent study from the National Association of Home Builders (NAHB) finds that age, race and ethnicity impact the size home the average buyer wants.

NAHB’s survey – What Home Buyers Really Want – surveyed more than 3,600 homebuyers across the country about new home characteristics. Based on the results, the median desired home size is 2,226 square feet. However, the data broken down by buyer characteristics shows differences in preferred home size.

Age plays an important role in a buyer’s preferences, with the amount of space requirements dropping steadily as a buyer gets older. Among those younger than 35, the desired home size is 2,494 square feet, but that drops to 2,065 square feet among those 65 and older.

“The building industry wants to know how much space buyers want in their homes” says Rose Quint, NAHB’s assistant vice president for survey research and one of the study’s authors. “This study provides us with new insight into the home size preference of home buyers as a whole, but also across different demographic groups.”

Race and ethnicity also impacted home size preferences, with minority buyers desiring more space than White, non-Hispanic buyers. White, non-Hispanic buyers report wanting about 2,197 square feet, while Asian buyers desire 2,280 square feet, Hispanic buyers want 2,347 square feet, and African-American buyers prefer 2,664 square feet.

According to the U.S. Census Bureau, after peaking in 2006, median home size fell in 2007, 2008 and 2009, but reversed course and has risen for the past three years. Estimates indicate that the median size of all single-family homes started in 2012 was 2,309 square feet, and the average was 2,521 square feet.

The primary reason for the home-size reversal has to do with buyers’ ability to access credit. Due to stringent mortgage lending requirements in recent years, less financially solid buyers had been shut out of the market. As a result, homes built in the last few years largely reflect the preferences of buyers still able to obtain credit and put down larger down payments – typically wealthier buyers who can afford larger homes.

© 2013 Florida Realtors®

Reprinted with permission. Florida Realtors®. All rights reserved.

Average Mortgage Interest Rates Mostly Unchanged This Week. Still at Historically Low Levels!

Today, 1/17/2013 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgage was 3.38% down from 3.40% last week. The average interest rate for 15 year fixed-rate mortgages was 2.66%, unchanged from last week. A year ago the 30 year rate was 3.88%.

Freddie Mac's spokesperson said, "Mortgage rates were flat to down a little this week amid reports that inflation remains contained. The overall producer price index rose 0.1 percent between November and December, below the market consensus forecast, and the consumer price index was unchanged. For the year as a whole, consumer prices rose just 1.7 percent in 2012, almost half that of 2011's increase of 3.0 percent."

Do keep in mind that we are a very large country, So figures that come out for the entire nation, may have little or no relevance for your particular area. In the end, it is best if you speak with a local REALTOR or financing expert to see what the situation is for your part of the United States. Florida is not Michigan, nor is Maine the same as California. Market conditions can be very different from place-to-place. Also, your own credit history, the property you want to buy, etc. will effect your specific loan options and interest rates. Your mortgage broker or bank loan officer can give you more specific information.

If you want to learn more about Freddie Mac or see the details of their survey, go to: www.freddiemac.com and click on the link for "Current Weekly Survey". They break down the survey by specific regions in the United States so you can see how your state compares to other parts of the country. They also explain the mission of Freddie Mac and offer a lot of useful information for consumers.

If you would like to speak with a lender you can find some at my website: www.jelwell.century21bnr.com . You can also speak with your own bank, credit union, or mortgage broker to see what your particular interest rate would be, should you decide to finance a home purchase.

I would also be happy to assist you in any way that I can. Just call JOHN ELWELL - REALTOR at CENTURY 21 Bill Nye Realty, Inc. : 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com You are also welcome at my webpage: www.jelwell.century21bnr.com  Licensed in Florida.

What Did Typical Florida Home Buyers & Sellers Look Like in 2012?

ORLANDO, Fla. – Jan. 15, 2013 – There is no “typical” Florida homebuyer or seller, but the just-released “2012 Profile of Home Buyers and Sellers Florida Report” provides an overview of the types of buyers and sellers currently operating in the state.

The report provides a baseline for Realtors’ business decisions. Where do most Floridians start a home search? How do they finance the purchase? How many home sellers choose to go it alone and sell FSBO?

Report highlights: Homebuyers

• 25 percent of recent homebuyers were first-time buyers in Florida, compared to a national level of 39 percent – a slight rise from 2011.

• The typical Florida buyer was 55 years old; nationally, the typical buyer was 42 years old, a modest decrease from 45 in 2011.

• The 2011 median household income of Florida buyers was $74,200 ($78,600 nationally). The median income was $55,600 among first-time buyers ($61,800 nationally) and $82,200 among repeat buyers ($93,100 nationally).

• In Florida, 66 percent of buyers were married (65 percent nationally).

• In Florida and nationally, 16 percent of buyers were single females.

• In Florida, 22 percent of buyers cited “desire to own a home” as their primary reason for buying a home, compared to 30 percent nationally.

Characteristics of homes purchased

• New homes made up 20 percent of Florida home sales (16 percent nationally).

• 76 percent of Florida buyers chose a detached single-family home (79 percent nationally.

• Top three factors influencing neighborhood choice: Quality of neighborhood, convenience to job and overall affordability of homes. However, neighborhood choice varies considerably among households.

• A home’s heating and cooling costs were at least somewhat important to 84 percent of Florida buyers (87 percent nationally); commuting costs were at least somewhat important to 63 percent (76 percent nationally).

Home search process

• For 40 percent of Florida buyers, the first home buying step was to look at properties online (41 percent nationally); and 10 percent looked for info about the home buying process online (11 percent nationally).

• In Florida, 86 percent of all buyers (90 percent nationally) and 95 percent of buyers younger than 44 (96 percent nationally) used the Internet in their home search.

• 99 percent of Florida buyers who used a real estate agent viewed it as a useful information source (97 percent nationally).

• The typical homebuyer in Florida searched for 10 weeks and viewed 10 homes, compared to 12 weeks and 10 homes on a national level.

• Nine in 10 recent buyers were satisfied with the home buying process in Florida and nationally.

• In Florida, 84 percent bought a home through a real estate agent or broker (89 percent nationally).

• In Florida, 35 percent of buyers in Florida used a referral from a friend or family member to find an agent and 8 percent used an agent they had used previously to buy or sell a home. Nationally, 40 percent of buyers found their agent through a referral and 10 percent used an agent they had used before.

• Slightly more than 57 percent of recent buyers in Florida only interviewed one agent before they found the agent they worked with, compared to about two-thirds of recent buyers nationally.

• In Florida, 87 percent of buyers would use their agent again or recommend him or her to others.

Financing the home purchase

• In Florida, 70 percent of buyers financed their recent purchase (87 percent nationally); and if they did, 89 percent of the purchase price was financed (91 percent nationally).

• In Florida, 87 percent of first-time buyers financed their home purchase (95 percent nationally); and 64 percent of repeat buyers financed (81 percent nationally).

• More than a third of homebuyers in Florida and nationally said they made some sacrifices to buy, such as reducing spending on luxury items.

• 25 percent of Florida buyers reported the mortgage application and approval process was somewhat more difficult than expected (23 percent nationally); and 19 percent reported it was much more difficult than expected (17 percent nationally).

Home sellers and their selling experience

• In Florida, the typical seller lived in their home 11 years (9 years nationally, up from only 6 years in 2007).

• In Florida, a real estate agent assisted 92 percent of sellers (88 percent nationally).

• In Florida, recent sellers sold their homes for 93 percent of the listing price (95 percent nationally) and 67 percent reduced the asking price at least once (60 percent nationally).

• In Florida, 32 percent of sellers offered incentives to attract buyers (40 percent nationally).

Home selling and real estate professionals

• In Florida, 40 percent of sellers found their real estate agent through a referral (38 percent nationally); 16 percent used an agent they worked with before (23 percent nationally).

• Two-thirds of home sellers only contacted one agent before making a selection, both in Florida and nationally.

• 88 percent of Florida sellers say their home was listed or advertised online (93 percent nationally).

• In Florida, 81 percent of sellers (84 percent nationally) reported they would definitely or probably use the same real estate agent again or recommend him or her to others.

For-Sale-by-Owner (FSBO) sellers

• In Florida, 5 percent of home sales were FSBO (9 percent nationally); of those FSBO sales, 40 percent knew the buyer beforehand (33 percent nationally).

• In Florida, 46 percent of FSBO sellers took no action to market the home (60 percent nationally), and 68 percent did not offer any incentives (60 percent nationally).

The 2012 Profile of Home Buyers and Sellers Florida Report can be downloaded through Florida Realtors’ website.

© 2013 Florida Realtors®

Reprinted with permission. Florida Realtors®. All rights reserved.

John Elwell Amongst the TOP 100 CENTURY 21 Agents in North & Central Florida

I was pleased to note on the CENTURY 21 National Site that again I am in the TOP 100 agents in North and Central Florida based on the number of sale sides closed in 2012. It was due to a lot of hard work and also the cooperation of many great buyers and sellers. Working together, we made it a productive years for all concerned.

I appreciate the recognition accorded me, and would be happy to use my experience, education, and internet knowledge to help you as well. Whether as a buyer or seller, or both, I am "ready, willing, and able" to help you achieve your real estate goals. Just call me.

JOHN ELWELL - REALTOR at CENTURY 21 Bill Nye Realty, Inc. in Zephyrhills, Florida. 813-783-4444 I also invite you to visit my webpage at: www.jelwell.century21bnr.com  Licensed in Florida.

My January 2013 Florida Real Estate Newsletters are Ready for You!

My January 2013 Real Estate Newsletters are now available for download as a PDF (Adobe Acrobat) file that all computers should be able to open.

Notice that now I say NEWSLETTERS with an "s" at the end. Our program now creates 2 newsletters. One for buyers and one for sellers. Some parts of them are the same, but others have articles specifically for one type of client or the other.

Just click on the following link to down the Buyers Version:  Download January 2013 Buyers Newsletter To get the Sellers Version, click here: Download January 2013 Sellers Newsletter  I hope that you will find this month's articles interesting and helpful.

If you would like to receive these newsletters automatically each month in the future, just send me an e-mail and let me know. I would be glad to add you to my e-mailing list. You can e-mail me at: jelwell1@tampabay.rr.com or call me at: 813-783-4444

I also invite you to visit my my website where I think you will find a lot of useful information and links to other real estate resources. To get there just click on the following link: www.jelwell.century21bnr.com

JOHN ELWELL - REALTOR at CENTURY 21 Bill Nye Realty, Inc. 813-783-4444 Licensed in Florida.

According to Survey, Buyers See Bright Future for Housing Markets

SEATTLE – Dec. 18, 2012 – Redfin surveys active buyers to gauge attitudes about the current real estate market. In its latest survey, Redfin found improved attitudes about the direction of home prices and whether it’s a good time to buy.

Overview

• 71 percent of homebuyers surveyed believe that home prices will increase in their neighborhood in the next year, up from 61 percent last quarter and more than double the 34 percent who expected rising prices in the first quarter survey

• 33 percent saw rising home prices as a major concern, up from 23 percent last quarter

• 22 percent were concerned about a weak economy, down from 27 percent in the third quarter

• 57 percent cited low interest rates as a reason to buy now, down seven percentage points from last quarter and sixteen percentage points from the first quarter – but it’s still the most common motivator for buying now

• 59 percent indicated that low inventory was their top concern with buying a home, consistent with last quarter’s rate

• 37 percent of respondents said they’re first-time homebuyers, down from 48 percent last quarter

• 5 percent of respondents are concerned about the “fiscal cliff” and possible changes to the U.S. tax code’s Mortgage Interest Deduction.

Over the past year, Redfin says its survey has showed increasing faith that home prices will continue to rise and, at the same time, worry over those rising prices. Low inventory has been a constant source of frustration for buyers.

© 2012 Florida Realtors®

Reprinted with permission. Florida Realtors®. All rights reserved.