Fla.’s Housing Market Continues Positive Track in Dec. 2012

Florida’s housing market had more closed sales, higher pending sales, higher median prices and a reduced inventory of homes for sale in December, according to the latest housing data released by Florida Realtors®.

“Florida is an international destination: Owning a home here appeals to people of all ages from all over the world,” said 2013 Florida Realtors President Dean Asher, broker-owner with Don Asher & Associates Inc. in Orlando. “Realtors from across the state are reporting increases in home sales and median prices. As a result of rising demand from investors and other buyers, there’s a shortage of inventory in many markets, and it’s putting pressure on prices.”

Statewide closed sales of existing single-family homes totaled 18,031 in December, up 15.8 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.

Meanwhile, pending sales – contracts that are signed but not yet completed or closed – for existing single-family homes last month rose 39.7 percent over the previous December. The statewide median sales price for single-family existing homes last month was $154,000, up 14.1 percent from the previous year.

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in November 2012 was $180,600, up 10.1 percent from the previous year. In California, the statewide median sales price for single-family existing homes in November was $349,300; in Massachusetts, it was $295,000; in Maryland, it was $246,294; and in New York, it was $215,000.

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 downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Looking at Florida’s year-to-year comparison for sales of townhouse-condos, a total of 8,470 units sold statewide last month, up 8.6 percent compared to December 2011. Meanwhile, pending sales for townhouse-condos in December increased 31.8 percent compared to the year-ago figure. The statewide median for townhouse-condo properties was $117,500, up 26.3 percent over the previous year. NAR reported that the national median existing condo price in November 2012 was $181,000.

December marks the 12th consecutive month of higher statewide median sales prices for both single-family homes and for townhouse-condo units year-to-year, according to Florida Realtors’ data.

The inventory for single-family homes stood at a 5.5-months’ supply in December; inventory for townhouse-condos was at a 6-months’ supply, according to Florida Realtors.

“The market continues to improve, and it’s doing so in all parts of the state,” said Florida Realtors Chief Economist Dr. John Tuccillo. “Of note is the fact that inventory levels are now clearly consistent with a sellers’ market. When the final year-end statistics are compiled, expect that sales in 2012 will be more than 10 percent higher than they were in 2011. Once again, all the positive indicators are up significantly. The Florida real estate market is rapidly improving.”

The interest rate for a 30-year fixed-rate mortgage averaged 3.35 percent in December 2012, down from the 3.96 percent averaged during the same month a year earlier, according to Freddie Mac.





© 2013 Florida Realtors®

Tim Shelton, Realtor Advertisement

Freddie Mac: Short sale process cut in half or more

Jan. 24, 2013 – Short sales are getting much shorter, Freddie Mac says. The mortgage giant launched a Freddie Mac Standard Short Sale program on Nov. 1 that sought to speed up the short sale process and make it easier and more transparent.

“We estimate that the time to complete a short sale will decrease by approximately 50 percent to 75 percent,” as a result of the changes, writes Tracy Mooney, Freddie Mac’s executive vice president in her recent blog post. “We worked with our regulator, the Federal Housing Finance Agency, to remove obstacles and streamline the process, so we can help more borrowers and reduce costs for the company and taxpayers. The end result is a shorter short sale process that’s long in benefits for borrowers.”

Among the Nov. 1, 2012, changes:

• Mortgage servicers have 30 days to make a decision on a short sale once they receive an application. If they need to negotiate with a third party, they have 30 additional days. A final decision on the short sale must be made within 60 days.

• Mortgage servicers must acknowledge receipt of a short sale application within three days of submission. Servicers must provide weekly status updates if they need more time to review the application past the initial 30-day period.

• Mortgage servicers have the authority to approve short sales when qualifying financial hardships for homeowners who are past due or current on their mortgage payments.

• Mortgage servicers may also approve short sales without a separate review by the mortgage insurance company.

Following a short sale, homeowners may be able to qualify for up to $3,000 in relocation assistance.

 







Source: “The Shorter Short Sale: Long on Borrower Benefits,” Freddie Mac Executive Perspectives Blog (Jan. 22, 2013)

© Copyright 2013 INFORMATION, INC. Bethesda, MD (301) 215-4688

More Young Americans Forming Households

 Household formation, which stagnated when recession kept many young Americans from leaving their parents’ home or forced others to return to them, is finally on the rise.

The number of households increased 1.1 million in 2011 and nearly 1.2 million last year, underpinned by gradual labor market gains and steady economic improvement.

RBS analyst Guy Berger remarks, “The rise in household formation bodes well for the housing recovery. Instead of having too many houses, we are turning to a situation where there aren’t enough.”

The gains are felt the most in the rental market, where rising demand has triggered a spike in new apartment construction. Increased building activity, in turn, has also stimulated such related areas as furniture sales. By comparison, the U.S. homeownership rate has not risen much from a 15-year low reached in the first quarter of last year.

“We are going to see more recovery in the rental market in the very short run,” says Gary Painter, a public policy professor at the University of Southern California. “As the market improves, people will start to face higher rents and over time, that will spill over into the owner-occupied market.”

A monthly National Association of Home Builders survey shows that growing demand and tightening supply have pushed homebuilder sentiment to a near seven-year high. NAHB Chairman Barry Rutenberg, a homebuilder from Gainesville, Fla., says that more residential developers appear undaunted by the possibility that banks could dump an increasing number of foreclosed homes onto the market as conditions improve. He estimates that approximately 916,000 new residential projects would break ground in 2013 versus around 780,000 last year.















Source: “Analysis: More Americans Leave Parental Nest in Boost for Housing” Reuters (01/18/13)
© Copyright 2013 INFORMATION, INC. Bethesda, MD (301) 215-4688

Can I Buy Your House? Pretty Please?

In the District of Columbia, Seattle, San Diego, Chicago and other markets, sales are heating up and listings are getting multiple bids. Consequently, buyers are, once again, writing letters to tell a seller what they love about their home.

Pitch letters – which typically include personal photos and heartfelt language – attempt to forge an emotional connection between the buyer and seller, with an eye toward giving the buyer a competitive edge.

The strategy worked for one couple that put in an offer on a three-bedroom townhouse in Mountain View, Calif., even though their offer was less than ones submitted by 11 other buyers. The buyer told the seller why the home was perfect for them and their soon-to-be-born first child. It struck a chord with the seller, who also has a toddler and liked the idea of the home going to someone in a similar situation.

“The market has gotten so crazy that money alone doesn’t talk,” says Redfin CEO Glenn Kelman.
















Source: Wall Street Journal (01/10/13) P. M1; Lublin, Joann S.

© Copyright 2013 INFORMATION, INC. Bethesda, MD (301) 215-4688

Sneak Peek at my 2013 Calendar

Take a sneak peek at my 2013 Calendar that's in the mail! Simply click here to see it!

Leasing Program Helps Move-up Buyers Who are Underwater

JACKSONVILLE – Jan. 8, 2013 – Dawn and Victor Pellot were stuck in their 1,300-square-foot home off Wilson Boulevard on Jacksonville’s Westside, owing more on the mortgage than the home was worth, and they wanted more room.

Two months ago, they got it. The Pellots and their two children, ages 3 and 18 months, moved into a newly-built, 3,500-square-foot home in Orange Park through a program that allowed them to lease their old place and move into the new one.

“It was extremely important,” Dawn Pellot said. “That made all the difference” in deciding to look for a new home to build as early as April, she said.

A Detroit-based company, Marketplace Homes, has partnered with homebuilders in several markets in the United States to offer the program, one of few such in the nation and the only one available on the First Coast.

It works on the premise of leasing the existing home under a six-year deal while the existing homeowner gets a new mortgage to build a new house. Although the previous homeowner is still financially responsible for the mortgage on the existing home, Marketplace essentially manages the property for six years and assumes 100 percent of the risk if it can’t be rented. Generally, Marketplace representatives will try to incorporate a lease-to-own agreement for the new tenant.

On the First Coast, Marketplace has hooked up with homebuilders D.R. Horton and Drees Homes. The two local companies did not respond to requests for interviews.

Marketplace’s vice president of marketing, Chintan Pathak, said the approach is new and started on the First Coast in March. It targets homeowners who want to take part in the buyer’s market but can’t sell.

Essentially, Pathak said, the six-year lease will stabilize the existing home’s value by turning it into a rental property, which decreases foreclosures or short sales by property owners who struggle with negative equity in a house or condominium. Company officials say there are “fewer than five” foreclosures of properties they’ve turned into leases.

“It allows (property owners) to take advantage of the market today and allows you to sell when the market recovers,” Pathak said.

At the end of the six years, Marketplace will continue to manage the property or the homeowner can decide to list it for sale. The homeowner would still be responsible for the mortgage, as they are even under the six-year lease deal. The guarantee on the rent lapses, but the homeowner has the option to continue the lease and property-management agreements.

Marketplace gets no commission on the existing home. It assists in trying to find a lease-to-own tenant, but the homeowner can market the sale of the house on their own, given considerations for the lease stipulations.

The company evaluates each home and mortgage to determine the custom lease rate. If a renter pays more than the monthly mortgage costs, Marketplace gets the difference. If the lease doesn’t cover costs, the property owner has to pay the difference.

Marketplace also gets a “standard” commission from the builder of the new home.

Although Victor Pellot and his wife found a renter on their own, the guaranteed lease removed a worry.

“If you don’t have a renter, then you don’t have two mortgages to pay,” Victor Pellot said. “The only pitfall is you have to pay the first two months of rent for marketing and all that.”

The program is so new that many homebuilders and real estate workers on the First Coast are unaware of it.

Daniel Davis, executive director of the 1,000-member Northeast Florida Builders Association, was one.

“It is a new concept. But you’re seeing more confidence and you’re going to see creative ways to get people into new homes,” said Davis.

Part of the housing collapse that started in 2008 was attributed to a glut of new construction. But Davis said that’s now behind the First Coast market and programs like Marketplace’s can only help to literally rebuild the industry.

“I think it’s very attractive and I think it’s good for the community and good for creating jobs in North Florida,” said Davis, who is also a Republican member of the Florida House of Representatives. “We need to figure out ways to help out people who are underwater in their existing homes and this is one of the ways that can do it.”

The Northeast Florida Association of Realtors was more cautious. Communication Director Melanie Green hadn’t heard of the program, either, and advised anyone considering it to seek real estate legal advice.

“The only thing I would offer to any potential homeowner is get legal counsel,” she said. “Certainly, there’s some sort of contractual agreement they’ll be entering into.”

The Times-Union contacted a real estate attorney who declined to comment on the program, and several messages left with other lawyers requesting an interview were not returned.

Marketplace says it understands the caution and welcomes the scrutiny.

“We’re the only ones doing this on this large of a scale,” said spokeswoman Elyse Sarnecky. “For the caution, I welcome any Realtor to call us. If they advise legal counsel, our leases are one-page documents and they’re written in plain language.”

The program has not been without its problems.

Sarnecky acknowledged its early stages brought issues with bogus lessees. But that’s been aggressively addressed.

“Our property management department underwent a huge overhaul over a year ago,” Sarnecky said. “Since then, we’ve gotten a lot of this under control and we’ve been able to place high-quality tenants.”

© 2013 The Florida Times-Union (Jacksonville, Fla.), Drew Dixon. Distributed by MCT Information Services

5 Bargain Renovations that Add Value

 

Do you have grand visions of gutting your dated kitchen, or maybe blowing out the bathroom walls to create a spa-like retreat? While major remodeling projects such as these can bring value to a home, budget-friendly projects can also deliver a fresh look - and real value for you and potential buyers.

"Something as simple as replacing the hardware in the kitchen can give you a whole new look," says Paul Wyman, a regional vice president with the National Association of Realtors. Wyman is also an expert at determining if a remodeling project will add value to a home.

Curious which simple projects will give your home the most value? Keep reading to learn about a few affordable facelifts and bargain renovations that could boost your home's value and add appeal.

Bargain Renovation #1: Reface Kitchen Cabinets

Would you believe that something as simple as replacing dated cabinetry doors could get you a higher return on investment than other major remodels? We didn't either, until Remodeling Magazine's 2011-2012 "Cost vs. Value Report" told us otherwise.

If the cabinets in your kitchen are well laid-out, sturdy, and plentiful but unappealing, refacing can be a cost-effective alternative to complete replacement. This process, which maintains the existing cabinetry's frames and boxes but replaces the hardware and door and drawer fronts, can be just a quarter of the price of installing all-new cabinetry.

What does that look like in hard figures? Kitchen Solvers, a resurfacing company in La Crosse, Wisc., offers the example of a client paying $6,000 to install solid cherry doors on existing cabinetry, rather than shelling out $24,000 to install everything new. That sure sounds like a good savings to us.

Bargain Renovation #2: Install a New Kitchen Countertop

If you adore the luxurious look of a stone countertop but don't love the high price, there are ways to achieve the high-end feel of granite or marble without breaking the bank.

You can save on granite, for example, by buying remnants from a stone yard, according to a July 2012 Consumer Reports article titled "Get the luxury look for Less." Or, if you have your eye on marble, a slab from Vermont will cost at least 20 percent less than one from Italy, according to the report.

For a truly budget-friendly option, Consumer Reports suggests that you consider a laminate countertop. Laminate, which is made of sheets of plastic resin and paper bonded to particle board or fiberboard, could resemble granite or marble with today's printing technologies, notes Consumer Reports.

Bargain Renovation #3: Update the Bathroom

According to HGTV's "Maximum Value Projects," on FrontDoor.com, updating a bathroom is a great way to add value to your home. And it doesn't take much to make a big difference.

In fact, HGTV says updating the sink and fixtures will yield more value than replacing the countertop, flooring, toilet, or even the tub and shower. To avoid the premium price and save "hundreds of dollars without compromising quality," Consumer Reports' bathroom remodeling guide recommends selecting sinks and fixtures with basic finishes.

Looking for more value-adding updates that are gentle on your wallet? Consumer Reports suggests replacing an outdated wall-to-wall mirror with individual framed mirrors over each sink, or replacing stained grout with stain-resistant grout.

Bargain Renovation #4: Boost Curb Appeal With a New Roof

Honestly, who looks at a roof? Homebuyers, evidently. Even if most of your roof isn't visible from the street, it is still an important aesthetic and functional feature that's in a prime position to elevate - or squash - your home's curb appeal.

"When people buy a house, they expect it to have a roof, but if it's recently been redone, they will really see the value in that," Wyman says.

Fortunately, for a flashy and durable roof, you don't have to select a costly specialty material - like slate, tile, or metal. Composite asphalt shingles is the most common material, and it fits easily in many types of budgets, according to HGTV's "Maximum Value Home Exterior Projects: Roof."

Composite shingles are now available in a wide range of styles and colors, according to HGTV, allowing homeowners to create a custom look that matches the home's façade or plays up its architectural details.

Bargain Renovation #5: Add a Deck

Looking for a new living space that will add value to your home? Look no further than the square footage waiting right outside your back door.
In fact, adding a deck to your home could offer one of the highest cost-recoup opportunities, according to the cost-value report. And you don't have to choose a high-priced composite material. The survey found that decks built with wood actually delivered a greater return at resale than those built with composite material - boasting a 70 percent return on cost, compared to 62.8 percent.

Because deck-building is a potential DIY project - depending on your familiarity with a power saw, of course - savings could be even higher.

"Any type of work you have the ability to do yourself, with quality, makes it a bigger bargain because you're saving on labor costs," Wyman points out.

But if your home improvement skills are a little iffy, or you would rather sit back and relax during the renovation, it's probably best to leave this one up to the pros.






By Amy Howell Hirt | Yahoo! Homes – Fri, Nov 16, 2012 8:17 PM EST

The Greens at Tuscawilla

The Greens At Tuscawilla from AMW on Vimeo. Take a tour of the luxurious townhomes located in The Greens at Tuscawilla. Contact me for more information or to schedule a private showing.

Top Places to Raise Kids 2013

Congratulations to my hometown of Oviedo, Florida for making the list of the Top Places to Raise Kids in 2013! Take a moment and see if your town made the Bloomberg Business Week list by clicking here.

Orlando Housing Market Report

Orlando area home sales soared 19.88 percent in November, led by a thunderous 50 percent increase in the number of traditional sales, reports the Orlando Regional REALTOR® Association.

The jump in traditional sales, which typically have steeper price tags than foreclosures and short sales, drove Orlando’s median price to its highest in three years. The November median of $129,000 is 12.17 percent above that of November 2011 ($115,000) and 5.31 percent above that of October 2012 ($122,500).

Orlando’s overall median price has now posted positive year-to-year gains for 17 consecutive months. In addition, the median price has climbed 19 percent since January 2012 and 36 percent since January 2011.

"All of our indicators point to a clearly improving housing market in Orlando,” says ORRA Chairman Stephen Baker, RE/MAX Central Realty. "I’m particularly heartened by the jump in traditional sales, which illustrates a pent-up demand from buyers. This is what owners who want to sell — but have been reluctant to put their homes on the market — have been waiting for.”

 All sales types experienced year-to-year increases in median price in November. The median price of normal sales increased 4.76 percent, while the median price of foreclosures increased 12.43 percent and short sales increased 4.76 percent.

Completed Sales

Members of ORRA participated in 2,430 home sales that closed in November 2012, an increase of 19.88 percent compared to November 2011 and a 5.89 percent decrease compared to October 2012.

Compared to November of 2011, the number of short sales (705) decreased 6.62 percent and foreclosures (507) increased 9.74 percent. The number of completed traditional sales (1,218), however, jumped 50.37 percent compared to last year.

Homes of all types spent an average of 83 days on the market before coming under contract in November 2012, and the average home sold for 96.27 percent of its listing price. In November 2011 those numbers were 99 days and 95.19 percent, respectively.

The average interest rate paid by Orlando homebuyers in November, 3.47 percent, set yet another record as lowest average interest rate since ORRA began tracking the statistic in 1989. A year ago, homebuyers paid an average interest rate of 4.10 percent.

Pending Sales

Pending sales – those under contract and awaiting closing – are currently at 8,847. The number of pending sales in November 2012 is 0.70 percent lower than it was in November 2011 (8,909) and 4.38 percent lower than it was in October 2012 (9,252).

Short sales, which take much longer to process from contract to close, made up 67.37 percent of pending sales in November 2012. Normal properties accounted for 21.04 percent of pendings, while bank-owned properties accounted for 11.60 percent.

Inventory

The number of existing homes (all types combined) available for purchase in Orlando is continuing a steady decline that began back in July 2010 at 16,563 and now rests at 7,847. In November 2012, inventory was 22.58 percent less than it was in November 2011.

The inventory of single-family homes is down by 25.53 percent when compared to November of 2011, while condo inventory has decreased by 3.71 percent.

The month-of-supply increased a bit in November when compared to last month: Current inventory combined with the current pace of sales equates to a 3.23-month supply of homes in Orlando (there was a 3.13-month supply in October 2012).

Affordability

This month’s increase in median price has led to a decrease in Orlando’s affordability index: The October index of 247.25 percent is eight points lower than October 2012’s index of 259.29 percent. (An affordability index of 99 percent means that buyers earning the state-reported median income are 1 percent short of the income necessary to purchase a median-priced home. Conversely, an affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.)

Buyers who earn the reported median income of $54,758 can qualify to purchase one of 4,441 homes in Orange and Seminole counties currently listed in the local multiple listing service for $318,947 or less.

First-time homebuyer affordability in November decreased to 175.82 percent from last month’s 184.38 percent. First-time buyers who earn the reported median income of $37,235 can qualify to purchase one of the 3,195 homes in Orange and Seminole counties currently listed in the local multiple listing service for $192,786 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area increased by 22.74 percent in November when compared to November of 2011 (367 to 299).

The most (110) condos in a single price category that changed hands in November were yet again in the $1 - $50,000 price range and accounted for 29.97 percent of all condo sales.

Orlando homebuyers purchased 219 duplexes, town homes, and villas in November 2012, which is a 1.35 percent decrease compared to November 2011. Most (32 each) fell equally within the $100,000 - $120,000 and the $140,000 - $160,000 price range categories.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in November were up by 13.40 percent when compared to November of 2011. Throughout the MSA, 2,869 homes were sold in November 2012 compared with 2,530 in November 2011. To date, sales are up 0.82 percent for all counties combined.

Each individual county’s monthly sales comparisons are as follows:

• Lake: 27.87 percent above November 2011 (390 homes sold in November 2012 compared to 305 in November 2011);
• Orange: 5.80 percent above November 2011 (1,440 homes sold in November 2012 compared to 1,361 in November 2011);
• Osceola: 3.62 percent above November 2011 (458 homes sold in November 2012 compared to 442 in November 2011); and
• Seminole: 37.68 percent above November 2011 (581 sold in November 2012 compared to 422 in November 2011). 

For detailed statistical reports, please click on "Market Info” on the top menu bar.

This representation is based in whole or in part on data supplied by the Orlando Regional REALTOR® Association and the My Florida Regional Multiple Listing Service. Neither the association nor MFRMLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or MFRMLS may not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to record those closings posted after our reporting date.

ORRA REALTOR® sales, referred to as the core market, represent all sales by members of the Orlando Regional REALTOR® Association, not necessarily those sales strictly in Orange and Seminole counties. Note that statistics released each month may be revised in the future as new data is received.

Orlando MSA numbers reflect sales of homes located in Orange, Seminole, Osceola, and Lake counties by members of any REALTOR® association, not just members of ORRA.   

Coldwell Banker: The Value of a Home