February 2014 - Market Pulse Report

Inventory is at the highest I've seen it in years and it has really allowed me to show buyers several houses and not be rushed into making an offer that same day. Sure, we have within a week or there's another offer, but that's much better than the multiple offers occurring on the day or two after a home as been on the market.

Things are looking good for buyers!

Sales


*Orlando home sales (all home types and all sales types combined) in January 2014 were down 10.67 percent when compared to January of 2013 and down 26.32 percent when compared to December 2013.


*Single-family home sales in the Orlando area decreased by 11.38 percent in January when compared to January 2013 and decreased 28.57 percent compared to December 2013. Condo sales decreased by 13.91 percent year to year; townhomes and villa sales inched up by 0.54 percent.


*Of the 1,800 sales in January, 1,126 normal sales accounted for 62.56 percent of all sales, while 463 bank-owned and 211 short sales respectively made up 25.72 percent and 11.72 percent.


*The number of normal sales in January increased by 13.05 percent compared to January 2013, while short-sales decreased 56.13 percent and foreclosures decreased by 13.94 percent.


*The 6,460 pendings in January of this year is a decrease of 23.39 percent compared to the 8,432 pendings in January of last year (and a 7.20 percent increase compared to the 6,062 pendings last month).


*Short sales made up 48.98 percent of pendings in January, a decline of 41.81 percent from January of last year. Normal properties accounted for 32.76 percent (an increase of 9.92 percent) and bank-owned properties accounted for 18.27 percent (and increase of 10.28 percent).


Median Price

*The median price of all existing homes combined sold in January 2014 — $149,950 — is an 18.07 percent increase from the $127,000 median price recorded in January 2013.


*The median price for "normal” existing homes sold in January is $171,750, an increase of 10.81 percent from the median price of "normal” existing homes in January 2013.


*The year-to-year median price for short sales increased by 11.11 percent to $120,000 in January, while the median price for bank-owned sales increased by 11.92 percent to $108,000.


Inventory

*There are currently 9,927 homes available for purchase through the MLS. The January 2014 overall inventory level is 35.32 percent higher than it was in January 2013; inventory is up 5.37 percent compared to December 2013.


*The inventory of normal sales increased 45.72 percent compared to January 2013, while foreclosure inventory is up 103.25 percent and short sales are down 20.17 percent.


*Year-to-year single-family home inventory is up 38.32 percent; condo inventory is up 19.32 percent.


*The current pace of sales translates into 5.52 months of inventory supply.


Other

*New contracts are down 6.79 percent compared to January of 2013. New listings are up 16.96 percent.


*The Orlando affordability index increased to 191.09 percent in January. First-time homebuyer affordability in January increased to 135.89 percent.


*Homes of all types spent an average of 72 days on the market before coming under contract in January 2014, and the average home sold for 96.35 percent of its listing price.

Market Pulse Report - July 2013

It's exciting to see that there are finally more homes on the market. Still not as many as one would like when dealing with so many buyers, however I'm seeing that there are definitely more options for my buyers.

There's some great news for sellers as well! Single-family home sales INCREASED by almost 18% compared to this time last year and normal sales are making a comeback (finally!) as they showed an increase by 55%. Traditional sales account for 65% of the total sales. This is great news!

The best good news for sellers is that the median price for existing homes has increased.

I love seeing that short sales decreased by almost 30%. Hopefully we'll start getting back to having a regular level of short sales, rather than the influx we've seen over the past 7 years.

Here's the rundown of what's going on in today's market:


Sales
*Orlando home sales (all home types combined) in July 2013 were up 15.28 percent when compared to July of 2012 and up 6.67 percent when compared to June 2013.

*Single-family home sales in the Orlando area increased by 17.89 percent in July when compared to July of last year. Villa sales increased by 19.18 percent; condo sales decreased 1.14 percent.

*Of the 2,836 sales in July, 1,855 normal sales accounted for 65.41 percent of all sales, while 491 bank-owned and 490 short sales respectively made up 17.31 percent and 17.28 percent.

*The number of normal sales in July increased by 55.88 percent compared to July 2012, while short-sales decreased 29.39 percent and foreclosures decreased by 14.76 percent.

*The 7,990 pendings in July of this year is a decrease of 17.66 percent compared to the 9,704 pendings in July of last year (and a 5.34 percent decrease compared to the 8,441 pendings last month). (But at least we're increased from last month!)

*Short sales made up 55.16 percent of pendings in July. Normal properties accounted for 31.40 percent and bank-owned properties accounted for 13.44 percent.

*Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in July were up by 11.90 percent when compared to July of 2012. Throughout the MSA, 3,377 homes were sold in July 2013 compared with 3,018 in July 2012. To date, sales throughout the MSA are 9.09 percent above this time last year.

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

• Lake: 25.54 percent above July 2012;
• Orange: 10.30 percent above July 2012;
• Osceola: 4.02 percent above July 2012; and
• Seminole: 13.08 percent above July 2012.

Median Price
*The median price of all existing homes combined sold in July 2013 — $157,000 — is a 24.60 percent increase from the $126,000 median price recorded in July 2012.

*The median price for "normal” existing homes sold in July is $185,000, an increase of 10.45 percent from the median price of "normal” existing homes in July 2012.

*The year-to-year median price for short sales increased by 13.64 percent to $125,000 in July, while the median price for bank-owned sales increased by 16.99 percent to $105,000.

Inventory
*There are currently 8,099 homes available for purchase through the MLS. The July 2013 overall inventory level is 0.09 percent lower than it was in July 2012; inventory is up 6.34 percent compared to June 2013.

*Year-to-year single-family home inventory is down 2.15 percent; condo inventory is up 2.53 percent.

*The current pace of sales translates into 2.86 months of inventory supply.

Other
*New contracts are up 1.83 percent compared to July of 2012. New listings are up 17.78 percent.

*The Orlando affordability index decreased to 180.54 percent in July. First-time homebuyer affordability in July decreased to 128.38 percent.

*Homes of all types spent an average of 62 days on the market before coming under contract in July 2013, and the average home sold for 96.69 percent of its listing price.

Market Pulse Report - June 2013

The most important points of today's market seem to reflect more of the same, but then some new items:

• Inventory is down from this time last year, but increased by 400 homes compared to last month
• Prices have increased steadily the past few months 
• Listing and sales of traditional homes have increased (this is the best news! - I think we were all getting sick and tired of all the short sales).

For a complete list of homes available in Central Florida register and start searching at www.JenelleFerrer.com. 

Home Prices Rise - Most in almost 7 years

Source: http://sophiadegroen.com/realestate/wp-content/uploads/2012/06/homespricerise.jpg 

When we say the home prices have risen, it's not a small percentage. Compared with last year in February, home prices in Central Florida saw a rise of 9.3%. This increase hasn't been seen in Central Florida for almost 7 years.

This does not come as a surprise to buyers in today's market searching for a home, only to find themselves in one bidding war after another. With inventory shrinking monthly and a growing number of buyers, there is a limited selection in the amount of homes on the market.

Source: http://www.hollysellsaz.com/briefcase/19709_13201181241AM45174.jpg

Foreclosures are down, bank owned homes are down, and the growing number of traditional sales get swept off the market before even hitting 5 days.

This is a great time for seller's to get back into the game. If your home is in good condition in a desirable neighborhood, it will sell. 

"Steady home price gains can help drive the housing recovery. Higher home prices encourage more people to buy before prices rise further." -Associated Press

Buyers: Don't get discouraged if you get outbid. Your home is out there, it may just take some time. I have great testimonials from buyers that were outbid month after month (this was even after offering over asking price). When we finally bid on the perfect home, they got it.  Hopefully it's sooner rather than later, for the sake of interest and price.

Sellers: This is a great time to sell if you're ready. If you feel like hanging on a little longer, prices will continue to steadily increase.

If you're ready to buy or sell in Central Florida, let me know and I'll be more than happy to assist you!

Happy House Hunting!

Market Pulse Report- April 2013

Interest rates have jumped, inventory has dropped and the days a home is staying on the market has shortened. 

Things are looking good for sellers and a little challenging for buyers. In the spirit of staying up to speed with infographics, here is a great one on today's market compared to last year:

Feel free to contact me with any questions about today's market!

Market Pulse Report- August 2012

 
Overall, the same remains: inventory is down again and continues to decline. If you like a home, don't wait! One day, may really be too late. Here's the quick points on the month overview:

Sales

*Orlando home sales (all home types combined) in August 2012 were up 5.36 percent when compared to August of 2011 and up 7.07 percent when compared to July 2012.

*Single-family home sales in the Orlando area increased by 6.03 percent in August when compared to August of last year. Villa sales increased by 1.59 percent; condo sales increased by 4.72.

*Of the 2,634 sales in August, 1,265 normal sales accounted for 48.03 percent of all sales, while 610 bank-owned and 759 short sales respectively made up 23.16 percent and 28.82 percent.

*The number of normal sales in August increased by 23.29 percent compared to August 2011, while short-sales decreased 7.78 percent and foreclosures dropped 6.30 percent.

*The 9,362 pendings in August of this year is a decrease of 1.47 percent compared to the 9,502 pendings in August of last year.

*Short sales made up 69.66 percent of pendings in August. Normal properties accounted for 19.39 percent and bank-owned properties accounted for 10.95 percent.



Median Price
*The median price of all existing homes combined sold in August 2012 — $120,550 — is a 5.10 percent increase from the $114,700 median price recorded in August 2011.

*The median price for "normal” existing homes sold in August is $158,230, an increase of 2.08 percent from the median price of "normal” existing homes in August 2011.

*The median price for short sales increased by 19.05 percent to $110,000, while the median price for bank-owned sales increased by 4.71 percent to $85,000.

Inventory
*There are currently 8,128 homes available for purchase through the MLS. The August 2012 overall inventory level is 19.16 percent lower than it was in August 2011.

*Single-family home inventory is down 23.96 percent; condo inventory is up 11.52 percent.

*The current pace of sales translates into 3.09 months of inventory supply.

Other
*Homes of all types spent an average of 80 days on the market before coming under contract in August 2012, and the average home sold for 96.26 percent of its listing price.

Market Pulse Report: June 2012

INVENTORY IS DOWN AGAIN!!! We dropped another 400 homes from inventory and we are down to 8243 homes.  

I've been saying this every month hoping it will change the following, but believe it or not: this is the lowest inventory level since 2006 when we were in a boom!  

In this market, if you see a house and like it, do not hesitate in letting me know so we can write an offer!  

The average days on market dropped again as well, another confirmation of the changing environment!  It is no longer a time for low-ball offers!!  

Here's the Market Pulse Link   http://www.orlrealtor.com/resource/resmgr/Images_Market_Pulse/MarketPulse062012.pdf

Market Pulse Report: May 2012

The market has definitely not been for the faint of heart. I have clients that I have been working with for more than 7 months; some under contract and others still searching for a home. 

We're beyond the "perfect home" and simply at trying to find "a" home. 

Why? 

With inventory dropping every single month, it has left a scarcity of properties available. Most of which have several offers a few days into being listed on the market. It's fierce and competitive. Those under contract, the delays from the bank have been anywhere from 4 months to over 8. 

It's a long wait, but perseverance and patience are the only ways that buyers are becoming homeowners in this market. 

Check out the stats in today's market:

Sales

*Orlando home sales (all home types combined) in April 2012 were down 4.50 percent when compared to April of 2011 and down 3.37 percent when compared to March 2012.

*Of the 2,353 sales in April, 1,063 "normal” sales accounted for 45.18 percent of all sales, while 598 bank-owned and 692 short sales respectively made up 25.41 percent and 29.41 percent.

*The number of "normal” sales in April increased by 25.95 percent over April 2011, while short-sales increased 10.02 percent and foreclosures dropped 39.66 percent.

*The 10,078 pendings in April of this year is an increase of 1.24 percent compared to the 9,955 pendings in April of last year.

*Short sales made up 67.78 percent of pendings in April. Normal properties accounted for 19.47 percent and bank-owned properties accounted for 12.75 percent.

Median Price

*The median price of all existing homes combined sold in April 2012, $116,000, is a 10.48 percent increase from the $105,000 median price recorded in April 2011.

*The median price for "normal” existing homes sold in April is $158,000, is a decrease of 2.23 percent from the median price of "normal” existing homes in April 2011.

*The median price for short sales increased by 5.56 percent to $95,000, while the median price for bank-owned sales increased by 6.01 percent to $84,700.

Inventory

*There are currently 8,642 homes available for purchase through the MLS. The April 2012 overall inventory level is 24.72 percent lower than it was in April 2011.

*Single-family home inventory is down 26.58 percent; condo inventory is down 8.04 percent.

*The current pace of sales translates into 3.67 months of inventory supply.

Other

*The Orlando affordability index decreased to 254.69 percent in April. First-time homebuyer affordability in April decreased to 181.11 percent.

*Homes of all types spent an average of 87 days on the market before coming under contract in April 2012, and the average home sold for 95.42 percent of its listing price.

*New contracts are down 15.86 percent compared April of 2011. New listings are up 1.21 percent.

Market Pulse Report: April 2012

The Central Florida market has continued to make it difficult for buyers to find the home they want and actually get their contract accepted. Inventory is at an all time low with only 8,666 homes available for sale. It's an advantage to Seller's that have been wanting to sell their home because offers are being placed on those HOT properties at an alarming rate. I've personally experienced multiple offer scenarios at least in 5 cases just this month alone. 

I've even noticed an increase in offering above asking price just to attempt to make a more tempting offer to the seller; however, it seems the competition is thinking the same thing.

Here is the latest information on an accurate stance in today's market:

Sales

*Orlando home sales (all home types combined) in March 2012 were up 17.82 percent when compared to February of 2012 and down 10.95 percent when compared to March 2011.

*Of the 2,327 sales in March, 942 "normal” sales accounted for 40.48 percent of all sales, while 617 bank-owned and 768 short sales respectively made up 26.51 percent and 33.00 percent.

*The number of "normal” sales in March increased by 23.62 percent over March 2011, while short-sales increased 20.75 percent and foreclosures dropped 49.22 percent.

*The 9,748 homes pendings in March of this year is an increase of 2.50 percent compared to the 9,510 pendings in March of last year.

*Short sales made up 69.07 percent of pendings in March. Normal properties accounted for 17.90 percent and bank-owned properties accounted for 13.03 percent.

Median Price

*The median price of all existing homes combined sold in March 2012, $115,000, is a 12.94 percent increase from the $102,000 median price recorded in March 2011.

*The median price for "normal” existing homes sold in March is $155,000, is an increase of 3.33 percent from the median price of "normal” existing homes in March 2011.

*The median price for short sales decreased by 0.73 percent to $102,000, while the median price for bank-owned sales increased by 5.25 percent to $84,200.

Inventory

*There are currently 8,666 homes available for purchase through the MLS. The March 2012 overall inventory level is 30.85 percent lower than it was in March 2011.

*Single-family home inventory is down 31.95 percent; condo inventory is down 20.78 percent.

*The current pace of sales translates into 3.72 months of inventory supply.

*New contracts are down 15.93 percent compared March of 2011. New listings are down 18.45 percent.

Other


*Homes of all types spent an average of 97 days on the market before coming under contract in March 2012, and the average home sold for 94.83 percent of its listing price.

Market Pulse Report: March 2012

Sales
*Orlando home sales (all home types combined) in February 2012 were down 15.19 percent over February 2011.

*Single-family home sales in the Orlando area decreased by 2.82 percent in February when compared to February of last year. Condo sales decreased by 34.27 percent; duplex, town home, and villa sales decreased by 27.31 percent.

*Of the 1,854 sales in February, 738 "normal” sales accounted for 39.81 percent of all sales, while 498 bank-owned and 618 short sales respectively made up 26.86 percent and 37.98 percent.

*The number of "normal” sales in February increased by 29.02 percent over February 2011, while short-sales increased 20.00 percent and foreclosures dropped 54.02 percent.

*The 9,348 homes pending closing in February of this year is an increase of 1.37 percent compared to the 9,223 pendings in February of last year.

*Short sales made up 69.84 percent of pendings in February. Normal properties accounted for 17.02 percent and bank-owned properties accounted for 13.14 percent.

Median Price
*The median price of all existing homes combined sold in January 2012, $108,000, is a 13.80 percent increase from the $94,900 median price recorded in January 2011.

*The median price for "normal” existing homes sold in February is $150,000, is a decrease of 3.23 percent from the median price of "normal” existing homes in February 2011.

*The median price for short sales increased by 5.26 percent to $100,000, while the median price for bank-owned sales increased by 8.11 percent to $80,000.

Inventory

*There are currently 9,253 homes available for purchase through the MLS. The February 2012 overall inventory level is 31.36 percent lower than it was in February 2011, and almost equal to what it was in January 2012.

*Single-family home inventory is down 32.68 percent; condo inventory is down 18.46 percent.

*The current pace of sales translates into 4.99 months of supply.

Other
*The Orlando affordability index decreased to 271.61 percent in February. First-time homebuyer affordability in February decreased to 193.14 percent.

*Homes of all types spent an average of 96 days on the market before coming under contract in February 2012, and the average home sold for 93.14 percent of its listing price.

Market Pulse Report: February 2012

Two main things to notice in this month's report:

Inventory of Homes: 9258 now vs. 22,000+ 3 years ago and even 14,000 1 year ago

Days on Market: 96 Lowest in a year!

We are also blessed that mortgage rates are at historic lows, and we are finally seeing some downward trends in unemployment rates, but it is a seller's market. The amount of homes available does not match the overwhelming amount of buyers, especially within the same price range (under $250,000).

Sales

*Condo sales decreased by 48.11 percent; duplex, town home, and villa sales decreased by 20.00 percent.

*Of the 1,677 sales in January, 608 "normal” sales accounted for 36.26 percent of all sales, while 432 bank-owned and 637 short sales respectively made up 25.76 percent and 37.98 percent.

*The number of "normal” sales in January increased by 19.92 percent over January 2011, while short-sales increased 23.69 percent and foreclosures dropped 57.61 percent.

*The 8,709 homes pending closing in January of this year is a decrease of .77 percent compared to the 8,777 pendings in January of last year. Short sales made up 71.99 percent of pendings in January. Normal properties accounted for 14.84 percent and bank-owned properties accounted for 13.17 percent.

Median Price

*The median price of all existing homes combined sold in January 2012, $108,000, is a 13.80 percent increase from the $94,900 median price recorded in January 2011.

*The median price for "normal” existing homes sold in January is $140,000, is a decrease of 2.10 percent from the median price of "normal” existing homes in January 2011.

*The median price for short sales decreased by 5.26 percent to $90,000, while the median price for bank-owned sales increased by 13.33 percent to $85,000.

Inventory
*There are currently 9,258 homes available for purchase through the MLS. The January 2012 overall inventory level is 35.70 percent lower than it was in January 2011, and 4.87 percent lower than it was in December 2011. <------ MOST IMPORTANT POINT TO NOTICE

*Single-family home inventory is down 36.35 percent; condo inventory is down 26.46 percent.

*The current pace of sales translates into 5.52 months of inventory supply.

Other

*The Orlando affordability index increased to 273.32 percent in January. First-time homebuyer affordability in January increased to 194.36 percent.

*Homes of all types spent an average of 96 days on the market before coming under contract in January 2012, and the average home sold for 95.19 percent of its listing price. <----SECOND MOST IMPORTANT POINT

Please feel free to contact me with more information regarding today's market in Central Florida!

Market Pulse Report - November 2011

Sales
*Orlando home sales (all home types combined) in October 2011 were up 5.89 percent over October 2010.

*Single-family home sales in the Orlando area increased by 18.16 percent in October when compared to October of last year. Condo sales decreased by 26.55 percent; duplex, town home, and villa sales remained exactly the same.

*Of the 2,068 sales in October, 854 "normal” sales accounted for 41.30 percent of all sales, while 500 bank-owned and 714 short sales made up 58.70 percent.

*The number of "normal” sales in October increased by 34.91 percent over October 2010, while short-sales increased 40.83 percent and foreclosures dropped 38.50 percent.

*The 8,937 homes pending closing in October of this year is an increase of 1.36 percent compared to the 8,817 pendings in October of last year.

Median Price

*The median price of all existing homes combined sold in October 2011, $112,700, is a 7.33 percent increase from the $105,000 median price recorded in October 2010.

*The median price for "normal” existing homes sold in October is $153,000, a decrease of 11.70 percent from the median price of "normal” existing homes in October 2010. The median price for bank-owned sales is $80,000 and the median price for short sales is $95,000.

Inventory

*There are currently 9,973 homes available for purchase through the MLS. The October 2011 overall inventory level is 35.41 percent lower than it was in October 2010.

*Single-family home inventory is down 33.52 percent; condo inventory is down 38.69 percent.

*The current pace of sales translates into 4.82 months of inventory supply.

*Homes of all types spent an average of 106 days on the market before coming under contract in October 2011, and the average home sold for 94.66 percent of its listing price.

Market Pulse Report: October 2011

Here's a little overview of what's going on in Orlando:

Main 

• Orlando home sales in September 2011 were down 13.48 percent over September 2010.
• Of the 2,054 sales in September, 790 “normal” sales accounted for 38.46 percent of all sales, while 533 bank-owned and 731 short sales made up 61.54 percent.
• The number of “normal” sales in September increased by 18.44 percent over September 2010, while short-sales increased 25.82 percent and foreclosures dropped 52.66 percent.
• The 9,369 homes pending closing in September of this year is an increase of 7.53 percent compared to the 8,713 pendings in September of last year.

Median Price

• The median price of all existing homes combined sold in September 2011, $115,000, is a 9.52 percent increase from the $105,000 median price recorded in September 2010.
• The median price for “normal” existing homes sold in September is $153,500, a decrease of 2.22 percent from the median price of “normal” existing homes in September 2010. The median price for bank-owned sales is $82,000 and the median price for short sales is $100,000.

Inventory

• There are currently 9,931 homes available for purchase through the MLS. The September 2011 inventory level is 39.29 percent lower than it was in September 2010.
• Orlando’s condo inventory is 50.16 percent lower than it was in September 2010.
• The current pace of sales translates into 4.83 months of inventory supply.

Other

• The Orlando affordability index increased to 250.11 percent in September. First-time homebuyer affordability in September increased to 177.87 percent.
• Homes of all types spent an average of 100 days on the market before coming under contract in September 2011, and the average home sold for 93.80 percent of its listing price.

The problems with short sales...

This article rings especially true in today's market. I am seeing more and more delays in short sale transactions and then falling through. This frustrates not just first time homebuyers but anyone really looking to move.

As much as I can, I try to steer clear of these transactions to best assist my buyers. Short sales (ironic name) can be a very lengthy process. I've been under contract with 3 for over 3 months without a response from the bank. This can be frustrating to not just the buyers, but the agents and sellers as well.


Short sales lose appeal among first-time buyers

WASHINGTON – Sept. 29, 2011 – Short sale transactions are becoming less popular among first-time homebuyers. Buying a home in a short sale transaction may offer a huge bargain – sale prices average 27 percent lower than non-distressed properties – but more first-time home buyers say the processing delays aren’t worth the trouble.

First-time buyers’ share of all short sales dropped to 39.7 percent of transactions in August – a three-month drop and the lowest share ever recorded for first-time homebuyers, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. In November 2009, first-time homebuyers’ share of short sales reached a peak of 54.1 percent of all short sale transactions.

With bargain deals, why are short sales losing their appeal?

Buyers complain that short sale transactions take too long to close, with approval times often taking several months after a buyer submits an offer. Some buyers, frustrated at the delays, place offers on multiple properties with plans to close on whichever one is approved fastest.

The average time on market for short sales is 16.6 weeks, and the majority of that time is spent waiting for short sale approval, the HousingPulse Tracking Survey found.

Source: “First-Time Buyers Losing Interest in Short Sales,” RISMedia (Sept. 26, 2011)

© Copyright 2011 INFORMATION, INC. Bethesda, MD

Wondering why there's hardly homes for sale???

Shadow inventory continues to decline

SANTA ANA, Calif. – Sept. 28, 2011 – Current residential shadow inventory as of July 2011 declined slightly to 1.6 million units – representing a supply of 5 months – from a six-month supply of 1.9 million units one year earlier, according to CoreLogic. It’s also down from April 2011 when shadow inventory stood at 1.7 million units.

The reason is simple: Banks are disposing of distressed assets faster than they’re adding new ones into the system.

CoreLogic estimates the shadow inventory, also known as pending supply, based on the number of distressed properties not currently listed on multiple listing services (MLSs) that are seriously delinquent (90 days or more) – properties most likely to become bank-owned listings (REOs). Properties not yet delinquent aren’t included in the estimate of shadow inventory.

Data highlights:

• The shadow inventory of residential properties as of July 2011 fell to 1.6 million units, or a five-month supply, down from 1.9 million units, or a six-month supply, as compared to July 2010.

• Of the 1.6 million properties currently in the shadow inventory, 770,000 units are seriously delinquent (2.2-months’ supply), 430,000 are in some stage of foreclosure (1.2-months’ supply) and 390,000 are already in REO (1.1-months’ supply).

• As of July 2011, the shadow inventory is 22 percent lower than the peak in January 2010 at 2 million units, an 8.4-months’ supply.

• The total shadow and visible inventory was 5.4 million units in July 2011, down from 6.1 million units a year ago. The shadow inventory accounts for 29 percent of the combined shadow and visible inventories.

• The aggregate current mortgage debt outstanding of the shadow inventory was $336 billion in July 2011, down 18 percent from $411 billion a year ago.

“The steady improvement in the shadow inventory is a positive development for the housing market,” says Mark Fleming, chief economist for CoreLogic. “However, continued price declines, high levels of negative equity and a sluggish labor market will keep the shadow supply elevated for an extended period of time.”

© 2011 Florida Realtors®

Home listing prices rising in Florida



Go Florida!

ORLANDO, Fla. – Sept. 26, 2011 – Prices are rising in Florida.

Florida cities have had the largest year-over-year increases in average list prices, according to the latest real estate data from Realtor.com. Based on August data of 2.2 million listings in 146 markets, Florida cities make up nine of the top 10 places for highest year-over-year list price spikes.

Nationwide, the average list price is $320,325, up 2.36 percent year-over-year.

Here are the top 15 cities boasting the highest percentage of year-over-year increases in average list prices.

1. Miami
Average list price: $640,332
Year-over-year increase: 27.4%

2. Fort Myers-Cape Coral, Fla.
Average list price: $443,570
Year-over-year increase: 26.27%

3. Central-Fla. rural service area
Average list price: $405,809
Year-over-year increase: 19.41%

4. Punta Gorda, Fla.
Average list price: $267,066
Year-over-year increase: 16.37%

5. Macon, Ga.
Average list price: $193,520
Year-over-year increase: 15.98%

6. Sarasota-Bradenton, Fla.
Average list price: $466,785
Year-over-year increase: 15.86%

7. Naples, Fla.
Average list price: $713,087
Year-over-year increase: 15.13%

8. West Palm Beach-Boca Raton, Fla.
Average list price: $591,895
Year-over-year increase: 14.68%

9. Ocala, Fla.
Average list price: $193,360
Year-over-year increase: 12.07%

10. Lakeland-Winter Haven, Fla.
Average list price: $181,409
Year-over-year increase: 11.48%

11. Orlando, Fla.
Average list price: $319,419
Year-over-year increase: 10.56%

12. Portland-Vancouver, Ore.-Wash.
Average list price: $314,537
Year-over-year increase: 10.52%

13. Boise City, Idaho
Average list price: $212,588
Year-over-year increase: 10.43%

14. Springfield, Illinois
Average list price: $174,537
Year-over-year increase: 9.12%

15. Shreveport-Bossier City, La.
Average list price: $211,414
Year-over-year increase: 8.34%

Source: Melissa Dittmann Tracey, Realtor® Magazine Daily News

© 2011 Florida Realtors®

More home sellers paying full real estate commissions

FORT LAUDERDALE, Fla. – Sept. 22, 2011 – Someone selling a home is more likely to pay a full real estate commission today than during the housing boom, when discounts ruled and most properties sold quickly.

Commissions have steadily increased in recent years, despite a rash of foreclosures and falling home values that have left sellers with little spare cash to pay a broker.

The average commission nationally at year-end 2010 was (higher than) 2005, according to Real Trends, a publishing and consulting company based in Castle Rock, Colo.

In the housing frenzy of 2000 to 2005, sellers often questioned the value of agents. The number of brokers ballooned, and the competition for listings led some agents to cut commissions.

But when the housing market soured beginning in 2006, agents couldn’t leave the profession fast enough, and it became much harder to sell homes. Agents say sellers have since grown more appreciative of what they do.

“Sellers are very happy to pay the full commissions, even though they’re getting less money for their homes,” said Claire Sheres of Coldwell Banker in south Palm Beach County, Fla.

“They’re not quibbling …” added Scott Agran, head of Boca Raton, Fla.-based Lang Realty. “They’re saying, ‘What can you do to sell my house for the highest price and in the quickest amount of time?’ “

Agents now have to spend more time and money marketing the properties, and their jobs aren’t limited to finding buyers and securing contracts, said Beverly Rothstein of the Christopher White Group in northwest Broward County.

Agents also have to help arrange financing and title insurance to keep the sales moving toward the closing table.

“No one really has given me any grief about commissions,” Rothstein said. “In this market, your best friend is your real estate agent.”

Robin Craig didn’t think she’d need an agent to sell her two-bedroom cottage in Fort Lauderdale’s Victoria Park. So in May she created a website and flyer and stuck a sign in her front yard.

But for Craig, a 43-year-old accountant, negotiating with prospective buyers’ real estate agents was challenging, and so was coordinating the many showings. Three weeks later, with the house still unsold and a deadline looming for her to move to a new job in Atlanta, Craig hired Tim Singer of Coldwell Banker.

She said she’ll happily pay the … commission on the $529,000 listing.

“I underestimated the amount of time that was involved,” she said. “And he’s got market data and experience that I don’t have.”

Agents say they typically avoid showing homes that owners are selling themselves. Some of the sellers are hostile toward agents and have no intention of paying a commission to the buyer’s broker, Singer said.

Jon Holbrook, president of Delray Beach, Fla.-based BuyOwner.com, said he encourages his clients to work with buyers’ agents and come to terms on some sort of compensation, should a sale result.

Still, with dwindling home equity an issue in South Florida and across the country, sellers would be wise to try selling their homes on their own, Holbrook said. Those who don’t end up losing much of their profit to commissions. “It’s painful,” he said.

Many homeowners who bought during the housing boom are “underwater,” owing more than the properties are worth.

Nearly half the homes with mortgages in Broward County – more than 205,000 properties – are underwater, according to a second quarter report Tuesday from CoreLogic, a California research firm. In Palm Beach County, 42 percent of the homes with mortgages, or more than 137,000 properties, are worth less that what’s owed.

Some of these homeowners will pay the real estate commissions out of their own pockets. But many are falling into foreclosure or completing short sales, in which they unload the properties for less than they owe, with the bank’s blessing. In those transactions, the sellers don’t have to worry about the commissions, which are paid by the lenders.

Banks tend to hold down commissions on short sales and foreclosures to minimize their losses, but some agents say lenders are paying the full (amount) so that the agents will actively market the homes.

“These homes aren’t selling by themselves,” said Douglas Rill, a longtime broker at Century 21 America’s Choice in West Palm Beach.

Copyright © 2011 the Sun Sentinel, Fort Lauderdale, Fla., Paul Owers. Distributed by McClatchy-Tribune News Service.

Market Pulse Report: September 2011

 

Orlando Market Overview

• Of the 2,342 sales in August, 968 “normal” sales accounted for 41.33 percent of all sales, while 610 bank-owned and 764 short sales made up 58.67 percent.
• The 9,502 homes pending closing in August of this year is an increase of 6.23 percent compared to the 8,945 pendings in August of last year.
• Condo sales in the Orlando area decreased by 41.43 percent in August when compared to August of last year. Duplex, town home, and villa sales increased 1.34 percent.
• The median price of all existing homes combined sold in August 2011, $115,000, is a 15.12 percent increase from the $99,900 median price recorded in August 2010.
• The median price for “normal” existing homes sold in August is $155,000, a decrease of 6.57 percent from the median price of “normal” existing homes in August 2010. The median price for bank-owned sales is $81,750 and the median price for short sales is $96,950.
• The Orlando affordability index increased to 247.95 percent in August. First-time homebuyer affordability in July increased to 176.32 percent.
• Homes of all types spent an average of 101 days on the market before coming under contract in August 2011, and the average home sold for 95.05 percent of its listing price.
• The current pace of sales translates into 4.29 months of supply.
• There are currently 10,055 homes available for purchase through the MLS. The August 2011 inventory level is 39.19 percent lower than it was in August 2010.
• Orlando’s condo inventory is 51.84 percent lower than it was in August 2010.

Now is a good time to buy a house in Orlando because…

• Although many try to forecast when prices will hit bottom, the truth is that no one can predict the bottom of any market until it has already happened.

• Even within the Orlando market, different areas will “bottom” out at different times. Price fluctuations within each area of the Orlando market also differ.

• Buyers who hold off purchasing a home because they are waiting for prices to fall further may miss out on the home that they really want. The inventory of homes available for purchase, especially condos, is on a steady decline.

• Home prices have moderated, interest rates are at 40-year lows and the supply of homes for sale is plentiful. However, inventory has decreased by almost 60 percent since this time three years ago.

• Currently, about 58 percent of Orlando homes sales are foreclosures and short sales, which are typically priced much lower than “normal” homes. These types of homes sales continue to put downward pressure on the reported median or average sales price.

• Low interest rates, coupled with price declines, give trade-up buyers a unique opportunity to take advantage of market conditions. What an owner may lose on the sell side can be more than recovered on the buy side.

Florida Market Overview

• Sales, existing single-family: 15,517 in July 2011 (12 percent increase compared to July 2010).

• Sales, existing condo: 6,619 in July 2011 (12 percent increase compared to July 2010).

• Median price, existing single-family: $136,500 in July 2011 (1.00 percent decrease compared to July 2010).

• Median price, existing condo: $90,000 in July 2011 (4 percent increase compared to June 2010).

National Market Overview

• Sales, existing single-family: 4.12 million in July 2011 (21.5 percent decrease compared to July 2010).

• Sales, existing condo: 550,000 in July 2011 (17.3 percent decrease compared to July 2010).

Rental market: Sweet spot in real estate

WASHINGTON – Sept. 8, 2011 – The rental market is continuing to heat up and can offer potentially big returns for buyers willing to jump into the landlord role.

For investors looking to take advantage of low record-reaching mortgage rates and big discounts on home prices, the opportunities are plenty. Rents are rising and demand is up too, partially due to the 4 million former homeowners who’ve faced a foreclosure and are now renters.

In response, more homes are turning into rentals: Nearly 35 percent of occupied homes were rented in 2010, which is a 33.8 percent increase from 2000, according to a recent study.

In more than 500 cities, demand for rentals has increased, with vacancies for rental housing reaching its lowest level since 2003, according to U.S. Census data. Plus, rents are on the rise too: Nationwide, rents increased 11.6 percent in 2010 to $1,320 a month, on average, according to Hotpads.com, a real estate research firm.

Investors are buying rental properties with the intention to hold onto it for a longer time too: On average, investors say they plan to hold onto the property for 10 years before selling, according to a survey by the National Association of Realtors®.

“Whereas leverage is dangerous when buying stocks, [buying a rental] can be a good long-term strategy with real estate,” real estate investor Marshall Sonenshine told Money Magazine.

Experts suggest the wisest move for investors is buying a property near their permanent residence and sticking to buildings with four units or fewer to avoid stricter financing requirements, such as larger downpayments and higher mortgage rates. Also, experts say rental income should cover at least the mortgage payments on the property as well as an extra 20 percent cushion to pay for any repairs, property management or get you through any vacancies.

Source: “Cashing in on Rental Property,” Money Magazine (Sept. 2, 2011)

© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688

Recent News Poll

So you know:

According to a CBS News Poll on the Housing Market, some 60% of those polled expect the value of their home to increase over the next 10 years. Some 6% expect their home to decrease in value, and 30% expect no change.