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NAR Pending Home Sales Report

WASHINGTON (August 29, 2018) — Pending home sales stepped back in July and have now fallen on an annual basis for seven straight months, according to the National Association of Realtors®.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, decreased 0.7 percent to 106.2 in July from 107.0 in June. With last month’s decline, contract signings are now down 2.3 percent year-over-year.

Lawrence Yun, the NAR chief economist, says the housing market’s summer slowdown continued in July. “Contract signings inched backward once again last month, as declines in the South and West weighed down on overall activity,” he said. “It’s evident in recent months that many of the most overheated real estate markets – especially those out West – are starting to see a slight decline in home sales and slower price growth.”

Added Yun, “The reason sales are falling off last year’s pace is that multiple years of inadequate supply in markets with strong job growth have finally driven up home prices to a point where an increasing number of prospective buyers are unable to afford it.”

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Pointing to annual changes in active listings data at realtor. com®, Yun said increasing inventory in several large metro areas, and especially many out West, will likely help cool price growth to more affordable levels going forward. Even as days on market remains swift in many of these areas, Denver, Santa Rosa, California, San Jose-Sunnyvale-Santa Clara, California, Seattle, Nashville, Tennessee, and Portland, Oregon was among the large markets seeing a rise in active listings in July compared to a year ago.

Earlier this week, NAR released commentary reflecting on the past decade since the beginning of the Great Recession. Although supply and headwinds are the biggest issue right now, Yun said it is important to note just how much the housing market has recovered since the depths of the financial crisis. Today, thanks to several years of solid job growth, as well as safe lending and regulatory policy reforms, foreclosures sit near historic lows and record high home values have helped millions of households build substantial wealth.

“Rising inventory levels – especially if new home finally starts picking up – should help slow price appreciation to around two-and-four percent, which will help aspiring first-time buyers, and be good for the long-term health of the nation’s housing market,” said Yun.

Yun expects existing-home sales this year to decrease 1.0 percent to 5.46 million, and the national median existing-home price to increase around 5.0 percent. Looking ahead to next year, existing sales are forecast to increase 2 percent and home prices around 3.5 percent.

July Pending Home Sales Regional Breakdown

The PHSI in the Northeast climbed 1.0 percent to 94.6 in July but is still 2.3 percent below a year ago. In the Midwest, the index inched up 0.3 percent to 102.2 in July but is still 1.5 percent lower than July 2017.

Pending home sales in the South declined 1.7 percent to an index of 122.1 in July, and are 0.9 percent below a year ago. The index in the West decreased 0.9 percent in July to 94.7 and is 5.8 percent below a year ago.

The National Association of Realtors® is America’s largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.

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* The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing . A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.

NOTE: NAR’s August Housing Minute video will be released on August 31, Existing-Home Sales for August will be reported September 20, and the next Pending Home Sales Index will be September 27; all release times are 10:00 a.m. ET.

2018’s Real-Estate Markets

 

Information on the housing markets

Whether you’re joining the real-estate business or just looking for a place to call home, it’s important to get a handle on the housing markets you’re considering before investing in a property. With unemployment falling and house prices rising, the market as a whole has been in a boom. But while home values are rising, up almost $16,000 on average just in the first quarter of 2018, fewer are being built and bought because mortgage rates are rising. However, home prices and rental rates vary widely across the U.S. based on supply and demand.

If you aim for long-term growth, equity and profit, you’ll need to look beyond tangible factors like square footage and style. Those factors certainly drive up property values. From an investor’s standpoint, though, they hold less significance than historical market trends and the economic health of residents.

To determine the best local real-estate markets in the U.S., WalletHub compared 300 cities of varying sizes across 22 key indicators of housing-market attractiveness and economic strength. Our dataset ranges from median home-price appreciation to home sales turnover rate to job growth. Read on for our findings, expert insight from a panel of researchers and a full description of our methodology.

Best Places to Buy a House

http://WWW.WeKnowOrlando.com

Overall rank (1=Best) City Total Score ‘Real-Estate Market’ Rank ‘Affordability & Economic Environment’ Rank
1 Frisco, TX 75.06 8 1
2 McKinney, TX 74.6 7 2
3 Allen, TX 73.93 11 3
4 Santa Clara, CA 73.79 1 247
5 Durham, NC 72.45 5 60
6 Murfreesboro, TN 72.4 10 7
7 Richardson, TX 72.29 12 10
8 Seattle, WA 72.16 3 171
9 Bellevue, WA 72.14 4 142
10 Denton, TX 71.98 9 23
11 Sunnyvale, CA 70.71 2 276
12 Carrollton, TX 70.17 16 24
13 Denver, CO 70.16 6 132
14 Cary, NC 69.39 41 4
15 Fort Worth, TX 69.34 13 88
16 Roseville, CA 69.2 18 37
17 Thornton, CO 69.11 21 30
18 Fort Collins, CO 68.96 19 38
19 Boise, ID 68.95 23 40
20 Aurora, CO 68.86 15 102
21 Irving, TX 68.45 24 62
22 Arvada, CO 68.17 22 82
23 Colorado Springs, CO 68.12 33 26
24 Renton, WA 67.83 17 149
25 Nashville, TN 67.77 29 66
26 Grand Rapids, MI 67.74 25 95
27 Irvine, CA 67.58 40 27
28 Charlotte, NC 67.49 35 42
29 Overland Park, KS 67.41 32 69
30 Longmont, CO 67.32 20 161

Ask the Experts

Economic indicators point to a strong housing market, but does that mean it’s a good time to buy a home? We consulted a panel of experts for their insight. Click on the panelists’ profiles below to read their bios and thoughts on the following key questions:

  1. Is now a good time to buy a home? What economic indicators should potential buyers be watching?
  2. Are foreign buyers driving up the cost of U.S. real estate? Which cities are most affected?
  3. How likely is it that the Federal Reserve will increase interest rates in the coming months? How will this impact the housing market?
  4. Why are Millennials still sitting out of the housing market? What can be done to increase homeownership rates for this cohort?
  5. In evaluating the healthiest housing markets, what are the top five indicators?
  • WaysAICP – Associate Professor and Program Director, MS in Real Estate Development, Jefferson University
  • J. BetancurProfessor, University of Illinois at Chicago
  • AcolinAssistant Professor, University of Washington’s College of Built Environment
  • G. ChernoffProfessor, New York University
  • M. SpringerProfessor of Finance and Real Estate, Department of Finance, Clemson University; President, Faculty Advisory Council and College of Business Faculty and Secretary, American Real Estate Society

 

CoreLogic Home Price Insights – July 2018

 

The CoreLogic Home Price Insights report features an interactive view of our Home Price Index product with analysis through July 2018 with Forecasts from August 2018 including live maps.

CoreLogic HPI™ is designed to provide an early indication of home price trends. The indexes are fully revised with each release and employ techniques to signal turning points sooner.

CoreLogic HPI Forecasts™ (with a thirty-year forecast horizon), project CoreLogic HPI levels for two tiers—Single-Family Combined (both Attached and Detached) and Single-Family Combined excluding distressed sales.

The report is published monthly with coverage at the national, state and Core Based Statistical Area (CBSA)/Metro level and includes home price indices (including distressed sale); home price forecast and market condition indicators. The data incorporates more than 40 years of repeat-sales transactions for analyzing home price trends.

July 2018 National Home Prices
Home prices nationwide, including distressed sales, increased year over year by 6.2 percent in July 2018 compared with July 2017 and increased month over month by 0.3 percent in July 2018 compared with June 2018 (revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results).

Forecast Prices Nationally
The CoreLogic HPI Forecast indicates that home prices will increase by 5.1 percent on a year-over-year basis from July 2018 to July 2019, and on month-over-month basis home prices are expected to decrease slightly by 0.2 from July 2018 to August 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.

Orlando Developer Starts plans for Large Development

 

 

Unicorp ’s most prominent developer is pursuing its latest $200 million projects in an area that’s heating up for retail developers — and that represents a major shift in the market.

That’s according to Jorge Rodriguez, executive managing director at Colliers International Central , who is representing Orlando-based Unicorp National Developments Inc. in the purchase of a roughly 150-acre site in Daytona Beach’s fast-developing area of Interstate 95 and LPGA Boulevard.

“[Historically], all the retail was along International Speedway Boulevard,” Rodriguez said. “What’s happening is Daytona’s gotten to the point where there’s no more land to be developed there … It’s jumped north to LPGA and I-95.”

New projects in that area likely will be more attractive to consumers, added John Albright, president, and CEO of Consolidated-Tomoka Land Co. (NYSE: CTO), Daytona Beach’s largest landowner and soon-to-be seller of the site Unicorp has under contract.

In fact, developers have been buying up chunks of land from Consolidated-Tomoka for years, creating a massive economic impact for the community. The largest land sale was to Minto Communities, which partnered with Margaritaville HoldingsInc. to build the $1 billion Jimmy Buffett-themed Latitude Margaritaville — a massive active-adult, the mixed-use community now under .

Additionally, the $91 million, 350,000-square-foot Tanger Outlets opened in 2016, and North American Development Group is anticipating a fall opening of its estimated $80 million, 400,000-square-foot Tomoka Town Center featuring T.J. Maxx, Hobby Lobby, Academy Sports + Outdoors and more.

Since 2011, Consolidated-Tomoka’s land sales in this area have resulted in $1.5 billion in total capital investment in Daytona Beach, adding more than 3,500 jobs, according to company documents.

“You have a large influx of new population, and a great regional draw as far as the interstate and LPGA [Boulevard],” Albright said. “It’s all coming together.”

Meanwhile, Unicorp plans to start construction on its new project in first-quarter 2019. The first 23-acre phase, dubbed Shoppes at Williamson Crossing, will feature about 100,000 square feet of un-anchored shops and restaurants. No tenants have been signed, but Unicorp President Chuck Whittall said his company is in talks with about 30 potential tenants.

Sales of previously owned US Homes update

US HOME SALES DROP TO 2 YEAR LOW
Sales of previously owned U.S. unexpectedly slumped for a fourth month to the weakest in more than two years, signaling higher prices and tight supplies continue to squeeze demand, a National Association of Realtors report showed Wednesday.
HIGHLIGHTS OF EXISTING-HOME SALES (JULY)
• Contract closings fell 0.7% m/m to a 5.34m annual rate (est. 5.4m), the slowest pace since Feb. 2016, after unrevised 5.38m
• Median sales price increased 4.5% y/y to $269,600
• Inventory of available properties unchanged y/y at 1.92mKey Takeaways
The report adds to other recent signs of cooling in real estate markets. Prospective home buyers are increasingly discouraged by rising borrowing costs and property-price increases that are outpacing wage growth. The share of Americans who say it’s a good time to buy a home fell in August to 63 percent, the smallest since 2008, the University of Michigan consumer sentiment survey showed on Friday.

Continuing declines in purchases of single-family homes and cheaper properties suggest that the market is being supported by an increasing concentration of activity among those with higher income and financial assets.

The slump was led by an 8.3 percent decline in the Northeast, while the South and Midwest also decreased. Sales rose in the West.

Official’s Views
The decline in sales “has been a slow drip, and the is the same story, where we’re lacking inventory,” Lawrence Yun, NAR’s chief economist, said at a press briefing accompanying the report.

Other Details
• At the current pace, it would take 4.3 months to sell the homes on the market, unchanged from the prior month; Realtors group considers less than five months’ supply consistent with a tight market
• Single-family home sales fell 0.2 percent to an annual rate of 4.75 million
• Purchases of condominium and co-op units dropped 4.8 percent to a 590,000 pace
• First-time buyers made up 32 percent of all sales, compared with 31 percent in the prior month
• Homes were on the market for an average 27 days, compared with 26 days in June
• 55 percent of homes sold in July were on market for less than a month, NAR said
• Existing home sales account for 90 percent of the market and are calculated when a contract closes; new home sales, considered a timelier indicator though their share is only about 10 percent, are tabulated when contracts get signed

BY: Jeff Kearns and Katia Dmitrieva

Cinépolis USA will open a nine-screen, 40,000-square-foot cinema in 2020 in the town center

 

 

Theatre

A Dallas-based cinema has pressed play on a new theater in the $780 million Town Center, one of the biggest developments underway in southeast .

Cinépolis USA will open a nine-screen, 40,000-square-foot cinema in 2020 in the town center, according to Tavistock Development Co. LLC. Orlando-based  currently is working on the town center’s $300 million second phase.

It’s the second Cinépolis in Central after the company opened a theater in Winter Garden earlier this month.

Ticket prices typically range from $10-$18 for adults and $8-$14 for children.

Outside of Cinépolis, Lake Nona Town Center’s second phase also will feature a brewery, comedy club and live performance venue, bowling concept, a 215-room luxury hotel and more than 80 restaurants and shops.

“Cinépolis is the entertainment centerpiece for the next phase of the Lake Nona Town Center,” Jim Zboril, president of Tavistock Development Co., said in a prepared statement. “The theater experience is exceptional and epitomizes the quality guests can expect when visiting the town center.

About 37 major retailers are interested in opening shops inside the development. Those retailers range from American Eagle Outfitters (NYSE: AEO) to Dick’s Sporting Goods (NYSE: DKS). Tavistock hasn’t confirmed any of the potential retailers as tenants.

Retail interest in Lake Nona shouldn’t be a surprise since population growth — as evidenced by home sales — drives retail. Lake Nona notched the No. 15 spot among the nation’s top-selling master-planned communities with 523 home sales in 2017, John Burns Real Estate Consulting reported.

In addition, Lake Nona’s daytime population continues to grow with its 650-acre life sciences hub and future developments such as New York-based audit giant KPMG LLP’s $430 million, 55-acre training facility being built on Lake Nona Boulevard, and the teaching hospital being built by University of Central Florida-Hospital Corp. of America (NYSE: HCA).

Residents in Lake Nona often have higher wages and live in pricier than the average Orlando resident. Lake Nona household income was $143,500 in 2017, nearly three times Orange County’s average household income of $49,391, according to Orange County Property Appraiser Rick Singh. And that is attractive to major retailers.

“The market as a whole in Lake Nona has only gotten better and continues to get better,” retail expert Jorge Rodriguez, executive managing director in Central Florida of Colliers International

“Dog Friendly” Orlando is a city for pets

 This is “possibly” the best news ever: The City Beautiful is a pet paradise, according to a new study.

Orlando was ranked as the second-most pet-friendly city in the country behind Scottsdale, Ariz., according to a newWalletHub study.

In 2017, Americans spent $69.51 billion in total U.S. pet industry expenditures and are expected to spend $72.13 billion in 2018, according to the American Pet Products Association.

In total, 60.2 million American had a dog in 2017, while 47.1 million Americans homes had a cat, according to American Pet Products Association pet owners survey. Americans own 89.7 million dogs and 94.2 million cats nationwide.

In Central , several businesses are barking up the right tree and making a lot of money in the pet industry.

Take one of Orlando Business Journal’s Fast 50 companies, Woof Gang Bakery Inc. The firm, known for its gourmet doggy treats and natural pet foods, raked in $47.4 million last year, up 117.8 percent from $21.8 million in 2015. Woof Gang CEO Paul Allen previously told OBJ that he wants to grow his pet-centric bakery from 100 stores to 500 in the future by offering a variety of pet services in the shops.

In order to determine which cities were the best — and worst — for pet friendliness, WalletHub analyzed 24 key factors to determine which locations were “purr-fect” for pets. Check out how stacked up in these key areas:

  • Dog friendly restaurants: No. 1 
  • Veterinarians per capita: No. 3
  • Pet businesses per capita: No. 8
  • Dog friendly shops per capita: No. 10 
  • Minimum pet-care provider rate per visit: No. 10
  • Animal shelters per capita: No. 15
  • Animal trainers per capita: No. 25
  • Weather: No. 28
  • Strength of animal protection laws: No. 39
  • Walk score: No. 50

Best cities for career opportunities

7 Things to know today

By   – Editor, Orlando Business Journal

Good morning, Orlando!

If you’re looking for a city offering low unemployment, affordable homes, and high pay, then you need to head to Ames, Iowa, according to a new study from SmartAsset.

For its fourth annual study, SmartAsset ranked 355 cities on metrics that included a change in total employment, median income, annual housing costs and career support such as counselors and higher education teachers.

Utah claimed two spots among the top 10 cities because of affordability and job opportunities. Included in the top 10 were Provo, Utah, Pocatello, Idaho, Greeley, Colo., Huntsville, Ala., Logan, Utah, Lafayette, Ind., Wausau, Wis., Spartanburg, S.C., and Dayton, Ohio. Alas, Orlando didn’t make the top of the list.

And be sure to check out these other Monday headlines:

South Florida developer aims for new Orlando development

A Miami-based developer is squaring up a new development on a former golf course near Mall at Millenia into nearly 1,000 condo or multifamily units along with commercial retail space. More here.

Space Coast Launch Services LLC lays off 102 positions

Space Coast Launch Services LLC will shed 102 jobs from its location at Patrick Air Force Base. All layoffs will happen on Sept. 30, according to a Worker Adjustment and Retraining Notification filed on July 26. More here.

Of the 10 best cities to raise a family, nine were either in the Midwest or the South, which was due largely to lower mortgage expenses for homeowners, shorter commutes, strong local economic conditions, and lower infant care costs. Meanwhile, Orlando ranked as the 44th best place to raise a family. See the full study here.

NASA names first astronauts for SpaceX, Boeing space station missions

NASA has revealed the nine astronauts — seven men and two women — who will fly the first American-made commercial spacecraft to and from the International Space Station. More here.

More than a third of college students go hungry

As students get ready to head back to school for the fall, here’s a new study worth noting: Buying nutritious food is a problem for more than a third of American college students, many of whom are working at low-income jobs, living off financial aid and student loans or raising families as they work towards a degree.

Why KPMG and USTA built a home in Orlando’s Lake Nona

Located just ten minutes from International Airport sits , one of the nation’s fastest-growing communities on a mission to support a holistically healthy living. Lake Nona encompasses over 13,000 residents and more than 10 million square feet of residential and commercial facilities, including the University of Central Florida () College of Medicine and Nemours Children’s Hospital.20170506_NONA_0005-blog
Aerial view of the Lake Nona community, ten minutes from Orlando International Aiport.

Companies have been attracted to Lake Nona for its extensive land options, proximity to Orlando International Airport, groundbreaking gigabit fiber optic technology (named one of only nine Iconic Smart + Connected communities in the world) and all-inclusive community amenities.

In 2018, the United States Tennis Association (USTA) celebrated a one-year anniversary for its new “Home for American Tennis” at Lake Nona. ’s new Home for American Tennis is the biggest and most innovative facility of its kind in the world, with revolutionary technology built into its 100 outdoor tennis courts – recording training data that coaches and professionals from around the country can take back to their communities.

IMG_3050-blog
USTA’s National Campus in Orlando.

USTA needed a location that would supply enough space for its 63-acre facility and embody the principles of the association. USTA not only found the land it needed to build its new Home in Lake Nona; it found a collaborative community that embraces its mission of inspiring human performance. And by partnering with UCF, Visit Orlando and Visit Florida, USTA felt confident that it could fill its stands at its national and international tournaments.

“It became clear early on that Orlando was our new home because this is an exciting, energetic place to be,” Gordon Smith, Executive Director and Chief Operating Officer of USTA.

In 2017, KPMG began on its new global learning, development and innovation facility. As KPMG’s largest capital investment ever, it was imperative for KPMG to find a location that fit a long list of important criteria: the right culture, climate, community partnerships, incentives, transportation and more. KPMG needed a place that would foster an innovative and collaborative environment for employee training. KPMG considered 49 potential cities including Chicago, Atlanta, and Dallas before choosing Orlando.

KPMG-learning-facility-blog
Rendering of KPMG’s new global training center.

Orlando’s Lake Nona met and exceeded KPMG’s criteria for their largest capital investment project ever. Not only did the city’s future-forward vision resonate with KPMG, but the company was able to fly directly to 90 percent of its other office locations from Orlando International Airport.

“One of the key factors in choosing Orlando was the innovation we see here,” KPMG’s U.S. Chair and CEO Lynne Doughtie said. “The Lake Nona area is known for innovation, and that factor was lacking in many other cities we considered. Of course, all the recreational opportunities in the area are also a big draw.”

KPMG’s $400 million learning, development, and innovation facility in Orlando is scheduled to be complete by the end of 2019.

Happy Sellers and Buyers,and Customers

As a Real Estate  for over 28 years, my ultimate goal is to let my experience and knowledge help my customers realize their goal, which is to sell or buy there home.  Do I get asked how  I differ from all the other agent’s out there? Well, the answer is my experience and my past record does speak for itself not only in what I do but how I do it! Most agents will do the minimum marketing to save a dollar in their pockets and never think “out of the Box”. My team is taught to always find new ways to get every unique customer’s home out to the largest population of potential buyers and sellers by concentrating not on the cost but to find the qualified buyers and sellers. All agents will do the general work as to put you in MLS (Multiple Listing Service} and send out postcards but what else do they generally do? Well if your working with our team you not only get the Standard marketing you get Worldwide Marketing with over 86 different websites as well as we as a team call your neighbors and our database of over 14,000 people to let them know you have placed your home on the market or you are looking for a particular home. In short, we always go above and beyond to help our customers not only get what they want but to save as much money as possible in the process and make everything very smooth all the way through closing.

https://youtu.be/aZ7Dc9cMHGU