Is Home Seller Enthusiasm Waning?

The latest report from Redfin shows that home sale prices in March were still on the way up—they were 9 percent higher than a year ago, closing the month at a median $297,000 nationally.

But homes for sale were down across the board as well. Compared to March 2017, the number of on the market in the United States was down 12 percent. More telling, the number of newly listed homes fell 5.6 percent from last year, something Redfin classifies as “a sign of possible waning seller enthusiasm and ongoing tight market conditions.”

Redfin Chief Economist Nela Richardson said one explanation for the dropoff in housing movement this March might have been the fact that Easter came so early.

“Sellers are slow to list this year and we aren’t seeing enough new construction homes to fill the gap,” Richardson said. “If we don’t see the new listings number turn around next month or a pickup in new housing starts, inventory will be a persistent drag on sales for the remainder of the year.”

If seller enthusiasm is waning, buyer demand is still strong. According to Redfin, the typical home went under contract in 43 days in March. That’s eight days faster than a year earlier and faster than any March on record.

Among homes that sold last month, 24 percent sold above their list price, up from 22.3 percent last March. One in five homes that sold in March went under contract within two weeks of their debut, compared to 18.4 percent last year. The Bay Area had much higher numbers than the average, though. In San Jose, 83 percent of houses sold above list price. In San Francisco and Oakland, three-quarters of houses sold higher than listed.

Seattle (for the second month in a row) and Denver were the fastest-moving markets in the country. Houses there were on the market for a median of just seven days in March. The Bay Area also saw houses close in less than two weeks.

As is typically the case, prices grew most in the Bay Area. San Jose saw prices leap by 32 percent from a year ago; San Francisco almost 17 percent.

But less-typical markets showed price growth as well. Allentown, Pennsylvania, saw prices climb 22 percent since last year, just 1 percent more than the prices in Detroit.

At the same time, inventory dropped in 65 of the 73 most populous metros Redfin tracked. In 48 of those metros, inventory fell more than 10 percent compared to last year. Baton Rouge; Washington, D.C.; and Allentown bucked the declining inventory trend, respectively adding 26.6 percent, 11.8 percent, and 11.4 percent to housing supply from last year.

Here are Central Florida’s 25 Wealthiest ZIP Codes ranked by per capita income

If you’ve ever wondered where individuals making the most money live, we’ve got you covered.

Here, we compiled a ranking of the area’s wealthiest ZIP codes ranked by per capita income in the slideshow above, using data collected by OBJ parent company American City Journals.

Here’s how the ZIP codes break down by county:

Click through to see if your ZIP made the list.

And later this year, we’ll give you the region’s wealthiest ZIP codes ranked by median household income.

Top 10 States for Retirement

 

Florida found a place among the top 5 dream retirement is living in a location that’s affordable, safe and popular with older residents. These were the considerations that MoneyRates.com took into account while looking for the most retirement-friendly states in the U.S.

It ranked the states across the country on five parameters—healthy environment, personal security, local , weather conditions, and popularity with older residents. By averaging each state’s ranking in these five categories, MoneyRates.com determined the 10 best states to retire.

Coming in at a surprising No.1 position was Iowa, with its across-the-board consistency on all parameters. Despite its high cost of living, Hawaii was the second alternative for people looking to retire in style. The Aloha state’s tropical climate offered an attractive alternative as did its record of life expectancy at age 65, which is longer in Hawaii than in any other state.

With its maximum number of clear weather days, Arizona was ranked third on the list especially for people who valued sunshine. On the downside though, it wouldn’t be ideal for those looking at security. With some of the highest incidents of property crime, Arizona is one of the worst states as far as home security is concerned, the study found.

It’s no surprise that Florida found a place among the top 5 states in these rankings. At No. 4, Florida has been associated with retirement for a long time, with the highest portion of residents aged 65 or older. However, despite its favorable climate conditions, the study found that like Arizona, Florida too had a high incidence of both property and violent crime—fifth-highest across the U.S. to be precise.

At No.5 Maine trailed Florida only in the proportion of its population that is aged 65 or older. But unlike Florida, Maine is one of the safest states in the country with the second-lowest rate of violent crime.

While Idaho, Vermont, and New Hampshire came in at sixth, seventh, and eighth rank respectively, Kansas and Virginia tied for the ninth spot in these rankings.

Here’s how Orlando-area home prices, sales did in January

 

 

 

 

Orlando’s median home price increased in January year over year, while sales held steady with a 0.5 percent uptick compared to January 2017, a new report from the Orlando Regional Realtor Association shows.

The overall median price of Orlando homes sold in January was $225,000, a 12.6 percent increase above the January 2017 median price of $199,900 and 2.2 percent below the December 2017 median price of $230,000.

In addition, 2,225 sales of all home types were recorded in January, 0.5 percent more than the 2,213 sales in January 2017. However, sales declined by 26.9 percent when compared to last month.

“The nearly 27 percent drop between December and January is a decline that historically follows a big push to close in December as buyers seek to take advantage of homeownership tax benefits,” said ORRA President Lou Nimkoff. “While low inventory conditions remain a significant challenge, Realtors anticipate an improvement in month-to-month sales. In fact, the January pending sales tally increased by more than 1,000 compared to December 2017, making it the greatest month-to-month increase since ORRA began tracking pendings in 2006.”

Meanwhile, the overall inventory of homes that were available in January — 7,604 — represents a decrease of 11.1 percent when compared to the year-ago period and a 1.3 percent decrease compared to last month.

Current inventory combined with the current pace of sales created a 3.42-month supply of homes in Orlando for January. There was a 3.86-month supply in January 2017 and a 2.47-month supply last month.

Tavistock proposes upscale Isleworth-area mixed-use project

 

 

 

 

 

 Group is lining up plans for a new Windermere mixed-use development it wants to build on vacant land on the shores of Lake Down.

The developer of the upscale Isleworth Golf and Country Club is seeking Orange County approval for the yet-to-be-named project on 43 acres zoned for agriculture at the northwest corner of Conroy Windermere and South Apopka Vineland roads, in what’s called the Isleworth Four Corners planned development.

Plans include 21 single-family homes; a 107-bed assisted-living and memory-care facility; 72 independent-living units; 40,000 square feet of medical office space in a two-story that may include a clinic or emergency department; a 30,000-square-foot big-box retailer; and about 40,000 square feet of additional shops and eateries east of Isleworth that Tavistock already owns through its related Windermere Property Holdings LLC.

The county will host a community meeting at 6 p.m. on Feb. 27 at the Chain of Lakes Middle School Cafeteria, where Tavistock will present its plans. Previous versions included a gas station and hotel, but residents shot down those plans, said Tavistock spokeswoman Jessi Blakley.

may begin sometime in 2019, pending approvals, said Tavistock spokeswoman Jessi Blakley, adding that it was still too early to have a project general contractor chosen.

Andres Duany of architect and town planning firm DPZ Partners LLC is a project consultant; Vero Beach-based Merrill, Pastor & Colgan Architects principal Scott Merrill is the architect; Winter Park-based Donald W. McIntosh Associates Inc. is the civil engineer; and Rulon Munns of Bogin Munns & Munns is the zoning attorney.

This is one of several projects Tavistock already has in the works. It also has more than $3 billion worth of construction in southeast ‘s 17-square-mile community, and plans in the works for the 24,000-acre Sunbridge community, for which it recently snagged another 200 acres of land in Orange and Osceola counties.

 

 

The forecast from Kansas City Fed President Esther George: Despite blustery market, expect rate hikes.

George told a Kansas group that the stock market may have had a wild ride of late, but the ’s outlook remains strong, the Wichita Business Journal reports. She pointed to preliminary estimates of the gross domestic product growing at slightly less than three percent, low unemployment rates and signs of compensation increasing.

All of which should lay the ground for the Federal Reserve to continue raising the interest rate — perhaps half a dozen times through 2019.

 

 

“The federal funds rate remains well below what estimates are that its longer-run value should be,” George said. “I’m often asked how many rate increases we’ll see this year. Together, the (Federal Open Market Committee) is calling for about three 25-basis-point hikes in the fed funds rate this year and about the same number next year.”

top 5 favorite Valentine’s Day gifts

Good morning, !

With Valentine’s Day just a few days away, many of us are making reservations and hitting the stores to find the perfect gift.

But did you know that the “perfect” gift varies drastically by state, as do many Valentine’s Day trends and traditions.

For example, while roses and chocolates may be considered classic Valentine’s gifts, but that’s not the case in several states that prefer, instead, to find more unique gifts for their loved one.

Here in the Sunshine State, we do prefer to go the more traditional gift route, with roses, teddy bears, chocolates, flower bouquets and a pedicure coming in as the top five gifts. In contrast, Florida shoppers said a bottle of alcohol and lingerie were their least favorite gifts for Valentine’s Day.

Here’s some other interesting data, courtesy of Offers.com:

  • To celebrate the holiday, 39% of Floridians said they would be staying in for the night. 28% will be heading to a romantic restaurant for dinner, while 2% plan to spend the night out on the town.
  • While shopping early can help you snag the best deals, 13% of Florida shoppers admitted that they wait until the week of Valentine’s Day to buy their gifts.
  • When it comes to the top treats they hope to receive on Feb. 14, Floridians want a box of chocolates (32%) and chocolate-covered strawberries (30%).
  • Roses steal the show as the top Valentine’s Day flower in Florida (42%). If you want to give a more unique gift this year, consider daisies (16%) and sunflowers (14%).

US Economic Observations: January 2018

It is well known that there are issues in the home purchase market, but there is less information on the single-family rental market, which makes up one-half of residential rentals. The CoreLogic Single Family Rental Index reflects rents paid on single-family houses and condos, and using this index we can dissect rent growth by both price tier and metro area.

LPI Blog

Figure 1 shows the 12-month change in our national rental index from 2005 to today. Rents for single-family fell during the Great Recession but then bounced back strongly from their low point in mid-2009 and have been trending up, mirroring home price growth. In October 2017, the index measured rent growth of 2.7 percent from a year ago. We can also show rent changes for the high-end (those rents 25 percent or more above the median rent in that market) and the low end (those rents 25 percent or less below the median in that market). The low-end single-family rental tier lagged the high-end tier from mid-2009 to early 2014, but then the low-end began steadily outpacing the high-end and the difference is growing. This mirrors the same high demand, low- supply forces that have caused low-end home prices to outpace high-end prices, as evidenced by shorter days-on-market and tighter inventory for low-end homes. Investors who entered the market to buy up distressed properties during the housing crisis might be exacerbating this trend in the rental market. High-end rents increased 2 percent in October from a year ago, while low-end rents increased by more than twice as much – 4.2 percent.

LPI Blog

We can also look at the difference between low-end and high-end rent growth by metro area. Figure 2 shows that low-end rents have been increasing in the largest 20 markets, with Seattle leading the large metros with the biggest increase in rents at 7.9 percent in October. Austin had the smallest increase in low-end rents of the large metros. In most of the 20 markets shown in the chart, low-end rents are increasing faster than high-end rents, and the trend is happening all over the country, not just in one region. The one exception is Warren, Mich., where low-end and high-end rents are increasing at about the same rate. The biggest spread in low-end and high-end rent increases was in Charlotte, N.C., where the low-end increased 5.6 percent and the high-end showed no increase.

The single-family rental market is an important and often overlooked segment of the and is affected by rising demand and constrained supply just like the rest of the housing market. The demand and supply pressures are especially apparent for lower-cost homes, for which rents are increasing at a much faster rate than for higher-cost homes

February 06, 2018, Irvine, Calif. –

  • Largest Price Gains During 2017 Were in California, Idaho, Nevada, Utah and Washington
  • Affordability Continues to Erode, Especially in Low-Price Range
  • Home Prices Projected to Increase by 4.3 Percent by December 2018

CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled solutions provider, today released its CoreLogic Home Price Index (HPI) and HPI Forecast for December 2017, which shows home prices are up both year over year and month over month. Home prices nationally increased year over year by 6.6 percent from December 2016 to December 2017, and on a month-over-month basis home prices increased by 0.5 percent in December 2017 compared with November 2017,* according to the CoreLogic HPI.

Looking ahead, the CoreLogic HPI Forecast indicates that home prices will increase by 4.3 percent on a year-over-year basis from December 2017 to December 2018, and on a month-over-month basis home prices are expected to decrease by 0.4 percent from December 2017 to January 2018. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

“The number of homes has remained very low,” said Dr. Frank Nothaft, chief economist for CoreLogic. “Job growth lowered the unemployment rate to 4.1 percent by year’s end, the lowest level in 17 years. Rising income and consumer confidence has increased the number of prospective homebuyers. The net result of rising demand and limited for-sale inventory is a continued appreciation in home prices.”

According to CoreLogic Market Condition Indicators (MCI) data, an analysis of housing values in the country’s 100 largest metropolitan areas based on housing stock, 35 percent of metropolitan areas have an overvalued housing market as of December 2017. The MCI analysis categorizes home prices in individual markets as undervalued, at value or overvalued by comparing home prices to their long-run, sustainable levels, which are supported by local market fundamentals such as disposable income. Also, as of December, 28 percent of the top 100 metropolitan areas were undervalued and 37 percent were at value. When looking at only the top 50 markets based on housing stock, 48 percent were overvalued, 14 percent were undervalued and 38 percent were at value. The MCI analysis defines an overvalued housing market as one in which home prices are at least 10 percent higher than the long-term, sustainable level, while an undervalued housing market is one in which home prices are at least 10 percent below the sustainable level.

“Home prices continue to rise as a result of aggressive monetary policy, the economic and jobs recovery and a lack of housing stock. The largest price gains during 2017 were in five Western states: California, Idaho, Nevada, Utah and Washington,” said Frank Martell, president and CEO of CoreLogic. “As home prices and the cost of originating loans rise, affordability continues to erode, making it more challenging for both first time buyers and moderate-income families to buy. At this point, we estimate that more than one-third of the 100 largest metropolitan areas are overvalued.”

*November 2017 data was revised. Revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results.

Methodology

The CoreLogic HPI is built on industry-leading public record, servicing and securities real-estate databases and incorporates more than 40 years of repeat-sales transactions for analyzing home price trends. Generally released on the first Tuesday of each month with an average five-week lag, the CoreLogic HPI is designed to provide an early indication of home price trends by market segment and for the “Single-Family Combined” tier representing the most comprehensive set of properties, including all sales for single-family attached and single-family detached properties. The indexes are fully revised with each release and employ techniques to signal turning points sooner. The CoreLogic HPI provides measures for multiple market segments, referred to as tiers, based on property type, price, time between sales, loan type (conforming vs. non-conforming) and distressed sales. Broad national coverage is available from the national level down to ZIP Code, including non-disclosure states.

CoreLogic HPI Forecasts are based on a two-stage, error-correction econometric model that combines the equilibrium home price—as a function of real disposable income per capita—with short-run fluctuations caused by market momentum, mean-reversion, and exogenous economic shocks like changes in the unemployment rate. With a 30-year forecast horizon, CoreLogic HPI Forecasts project CoreLogic HPI levels for two tiers—“Single-Family Combined” (both attached and detached) and “Single-Family Combined Excluding Distressed Sales.” As a companion to the CoreLogic HPI Forecasts, Stress-Testing Scenarios align with Comprehensive Capital Analysis and Review (CCAR) national scenarios to project five years of home prices under baseline, adverse and severely adverse scenarios at state, Core Based Statistical Area (CBSA) and ZIP Code levels. The forecast accuracy represents a 95-percent statistical confidence interval with a +/- 2.0 percent margin of error for the index.

More Than A High Appraisal

Homes appraised above contract price had above-market appreciation rates

Housing Trends

For homebuyers, the outcome of appraisal is one of these three scenarios: (1) appraised value closely matches sales price, (2) appraisal falls short of sales price or (3) appraisal is higher than sales price. If a home sells for less than its appraised value, does that mean that the buyers got ‘a bargain,’ and should anticipate above-average appreciation during their ownership period?  Conversely, if a home sells for more than its appraised value, does that mean the buyers may have ‘overpaid,’ and could expect a below-market rate of price growth during the length of time they own the home?

Evidence seems to support the hypothesis that there is “money left on the table” in high-appraisal transactions. When property price appreciation was calculated for twice turned-over in the California market – first sale observed with a full appraisal and sales closing price in 2010 or later, and then a second time with a sale by the owner – homes previously appraised with a sizable premium above the contract sales price were found to have above-market appreciation rates.

Yanling Mayer Blog Post

As shown in Figure 1, excess rates of price appreciation averaged about 3.3 percent per year.  By comparison, closely appraised homes appreciated at about the market average, while homes with appraised value below their contract sales price appreciated 0.3 percent per year slower than the market.  Excess appreciation rates were annualized price gains at re-sale—annualized percentage difference between prior purchase price and subsequent re-sale price, in excess of average market appreciation during the same ownership period.  The CoreLogic county-level Home Price Index (HPI) was used as the benchmark of market-wide appreciation.

Yanling Mayer Blog Post

Figure 2 shows that high-appraisal homes – whether a distressed sale or not – had above-market price appreciation, averaging 3.15 percent among non-distressed sales or 3.9 percent among distressed sales. Real estate owned (REO) and short sales exhibited above-market appreciation rates across all three appraisal valuation outcomes, likely driven by their below-market pricing to motivate sales.  Investors’ value-enhancing repair and refurbishing work could also be a factor for their higher re-sale values – despite that only homes that were held for at least 18 months since initial purchase/appraisal were included in the analysis.  For both non-distressed and distressed sales, median prices of high- and low-appraisal homes were lower than closely appraised homes. Since both high- and low-appraisal homes may have drawn disproportionately from lower-priced homes, faster price appreciation experienced by low-valued homes alone could not explain away the large disparities in price appreciation between the two.[1]

In Figure 3, sample homes were further sub-grouped by the year in which they were initially purchased and appraised. Given significant market dynamics during 2010-2015, property appreciation rates were likely to vary depending on the timing of initial purchase.  They ranged between 2 and 5 percent, reaching the highest during the 2012 market bottom when market-wide underpricing was likely the severest.

Yanling Mayer Blog Post

A city-level breakdown is shown in Figure 4. Stockton (5.87 percent) and Riverside (5.22 percent) had the highest excess price gains, followed by San Francisco (4.62 percent), Los Angeles (4.35 percent), Bakersfield (4.24 percent), and San Jose (4.04 percent).  Due to the use of county-wide HPIs for benchmarking, some cities – such as Oakland, Riverside and others – that may have experienced faster-rising prices than its county as a whole could well see across-the-board positive excess price appreciation.

Regardless of the reason(s) why a home may have sold for less than its appraised value, the buyers appear to have benefitted by having a faster-than-market appreciation during their ownership tenure.

Here are changes planned for UCF’s downtown and Lake Nona campuses

 

 

The University of Central Florida plans to create some new colleges for UCF Downtown and Lake Nona, while eliminating others from the main campus

The creation of the new colleges will take effect July 2. “I see these changes as opportunities for to be a national leader in inventing 21st-century higher education and best preparing our students for the world of graduation,” UCF Provost Dale Whittaker said in a prepared statement.

UCF will create an Academic Health Sciences Center and the College of Health Professions & Sciences at Lake Nona, which will include the College of Medicine and the College of Nursing. As a result, the College of Education & Human Performance and the College of Health & Public Affairs on UCF’s main campus no longer will exist.

The programs that will move to the College of Health Professions & Sciences at Lake Nona include:

  • School of social work
  • Communication sciences and disorders
  • Sports and exercise science (that will be renamed kinesiology)
  • Physical therapy
  • Athletic training

UCF hasn’t yet identified the dates for those programs will move to Lake Nona, however, that will not happen before 2020. “This restructuring aligns our strengths in areas of opportunity and organizational changes that will better position our students, faculty and staff for the future,” said Whittaker.

UCF also will create an urban innovation and education college that will anchor UCF Downtown, said Whittaker. It will focus on civic engagement and governing, safety and justice, and health.

UCF Downtown also will get a new interdisciplinary, inter-college school with programs that redefine content creation, digital art and communication for the 21st century. It will include journalism, radio/TV, advertising/public relations and communication, and digital media, film and the Florida Interactive Entertainment Academy.

As the colleges are created and programs moved, the first to be relocated to the downtown campus in August 2019 include:

  • School of public administration
  • Health management and informatics
  • Legal studies
  • Public affairs doctoral program
  • Digital media
  • Communication

The geography and the timing of other programs moving downtown will be determined over the next several months.