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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.

7 things to know today and Orlando housing market

 

Good morning, Orlando!

It was a good year for Orlando-area Home Sales, says Allyn Maycumber of WeKnowNona, as both home sales and the median price showed increases over the year-ago period, the Orlando Regional Realtor Association reports.

Home sales last year totaled 37,198, an uptick of 3.8% above 2016’s 35,829. In addition, Orlando’s annual median home price of $220,000 is 10% higher than the 2016 annual median price of $200,000.

ORRA President Lou Nimkoff said the median price was driven during 2017 primarily by a combination of strong buyer demand and very low inventory levels, and “Realtors expect prices to continue their upward trend in 2018, albeit at a slower rate.”

“We also expect low inventory to continue to exert its influence on the market in 2018, especially in the highly desired lower-priced categories,” said Nimkoff. “In fact, the lack of affordable housing in Orlando is a concern that Realtors anticipate will be at the forefront of community discussion in 2018.”

Meanwhile, a look at sales county by county shows Lake County was 7.2% above 2016; Orange County, 2.8%; Osceola County, 7.9%; and Seminole County, 3.8% below 2016.

And be sure to check out these other Tuesday headlines:

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Lucky’s Market to open its 2nd C. Fla. store, hire 150 people

Lucky’s Market, a natural foods grocer, plans to open its second Central Florida store this spring in a 30,000-square-foot space at 1720 E. Highway 50 in Clermont that formerly was occupied by Sweetbay Supermarket. More here.

Here’s what ULA is shooting to space in January from Florida’s Space Coast

United Launch Alliance’s Atlas 5 rocket will launch from Cape Canaveral on Jan. 18,between 7:40-8:20 p.m., carrying a missile detection satellite to orbit. Click here to see photos of what ULA is shooting into space.

Orlando International Airport food vendor to hire 145 new workers

Beverage and food provider for traveler HMS Host, the Orlando International Airport’s primary food concessionaire, will host a job fair this week to hire 145 people. The in-person hiring event will be on Thursday, Jan. 18 at the Hyatt Regency Orlando International Airport. More here.

Orlando gas prices face upward pressure

Area gas prices are holding steady, but there is upward pressure on prices at the pump due to rising oil prices, AAA said. The most expensive gas in Florida is in West Palm Beach-Boca Raton ($2.58) and Miami ($2.53). The least expensive gas price averages in Florida are in Orlando ($2.39), Jacksonville ($2.39) and Tampa-St. Petersburg-Clearwater ($2.39).

Equifax was 2017’s most-complained-about finance company

Atlanta-based Equifax Inc., which was hit with a massive hacker attack last year, not surprisingly received the most consumer complaints in 2017, a new report says. In fact, in 49 states (every one except North Dakota) Equifax (NYSE: EFX) received the most complaints.

Whirlpool, Apple partner on home appliance front

Whirlpool Corp. and Apple Inc. will now be involved in how consumers use their home appliances. Whirlpool, the Benton harbor, Mich.-based maker of consumer appliances, said Apple Watch users will be able to control various home appliances later this year. More here.

Existing-Home Sales Retreat 1.8 Percent in June

Existing-Home Sales Retreat 1.8 Percent in June

WASHINGTON (July 24, 2017) — Existing-home sales slipped in June as low supply kept selling at a near record pace but ultimately ended up muting overall activity, according to the National Association of Realtors®. Only the Midwest saw an increase in sales last month.

Total existing-home sales1, https://www.nar.realtor/topics/existing-home-sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, decreased 1.8 percent to a seasonally adjusted annual rate of 5.52 million in June from 5.62 million in May. Despite last month’s decline, June’s sales pace is 0.7 percent above a year ago, but is the second lowest of 2017 (February, 5.47 million).

Lawrence Yun, NAR chief economist, says the previous three-month lull in contract activity translated to a pullback in existing sales in June. “Closings were down in most of the country last month because interested buyers are being tripped up by supply that remains stuck at a meager level and price growth that’s straining their budget,” he said. “The demand for buying a home is as strong as it has been since before the Great Recession. Listings in the affordable price range continue to be scooped up rapidly, but the severe housing shortages inflicting many markets are keeping a large segment of would-be buyers on the sidelines.”

Added Yun, “The good news is that sales are still running slightly above last year’s pace despite these persistent market challenges.”

The median existing-home price2 for all housing types in June was $263,800, up 6.5 percent from June 2016 ($247,600). Last month’s median sales price surpasses May as the new peak and is the 64th straight month of year-over-year gains.

Total housing inventory3 at the end of June declined 0.5 percent to 1.96 million existing homes available , and is now 7.1 percent lower than a year ago (2.11 million) and has fallen year-over-year for 25 consecutive months. Unsold inventory is at a 4.3-month supply at the current sales pace, which is down from 4.6 months a year ago.

First-time buyers were 32 percent of sales in June, which is down from 33 percent both in May and a year ago. NAR’s 2016 Profile of Home Buyers and Sellers – released in late 20164 – revealed that the annual share of first-time buyers was 35 percent.

“It’s shaping up to be another year of below average sales to first-time buyers despite a healthy that continues to create jobs,” said Yun. “Worsening supply and affordability conditions in many markets have unfortunately put a temporary hold on many aspiring buyers’ dreams of owning a home this year.”

According to Freddie Mac, the average commitment rate(link is external) for a 30-year, conventional, fixed-rate mortgage declined for the third consecutive month, dipping to 3.90 percent in June from 4.01 percent in May. The average commitment rate for all of 2016 was 3.65 percent.

Properties typically stayed on the market for 28 days in June, which is up from 27 days in May but down from 34 days a year ago. Short sales were on the market the longest at a median of 102 days in June, while foreclosures sold in 57 days and non-distressed homes took 27 days. Fifty-four percent of homes sold in June were on the market for less than a month.

Inventory data from realtor.com® reveals that the metropolitan statistical areas where listings stayed on the market the shortest amount of time in June were Seattle-Tacoma-Bellevue, Wash., 23 days; Salt Lake City, Utah, 26 days; San Jose-Sunnyvale-Santa Clara, Calif., 27 days; San Francisco-Oakland-Hayward, Calif., 29 days; and Denver-Aurora-Lakewood, Colo., at 30 days.

“Prospective buyers who postponed their home search this spring because of limited inventory may have better luck as the summer winds down,” said President William E. Brown, a Realtor® from Alamo, California. “The pool of buyers this time of year typically begins to shrink as households with children have likely closed on a home before school starts. Inventory remains extremely tight, but patience may pay off in coming months for those looking to buy.”

All-cash sales were 18 percent of transactions in June, down from 22 percent both in May and a year ago, and the lowest since June 2009 (13 percent). Individual investors, who account for many cash sales, purchased 13 percent of homes in June, down from 16 percent in May and unchanged from a year ago. Fifty-six percent of investors paid in cash in June.

Distressed sales5 – foreclosures and short sales – were 4 percent of sales in June, down from both May (5 percent) and a year ago (6 percent) and matching last September as the lowest share since NAR began tracking in October 2008. Three percent of June sales were foreclosures and 1 percent were short sales.

Single-family and Condo/Co-op Sales

Single-family home sales dipped 2.0 percent to a seasonally adjusted annual rate of 4.88 million in June from 4.98 million in May, but are still 0.6 percent above the 4.85 million pace a year ago. The median existing single-family home price was $266,200 in June, up 6.6 percent from June 2016.

Existing condominium and co-op sales were at a seasonally adjusted annual rate of 640,000 units in June (unchanged from May), and are 1.6 percent higher than a year ago. The median existing condo price was $245,900 in June, which is 6.5 percent above a year ago.

Regional Breakdown

June existing-home sales in the Northeast fell 2.6 percent to an annual rate of 760,000, but are still 1.3 percent above a year ago. The median price in the Northeast was $296,300, which is 4.1 percent above June 2016.

In the Midwest, existing-home sales rose 3.1 percent to an annual rate of 1.32 million in June (unchanged from June 2016). The median price in the Midwest was $213,000, up 7.7 percent from a year ago.

Existing-home sales in the South decreased 4.7 percent to an annual rate of 2.23 million (unchanged from a year ago). The median price in the South was $231,300, up 6.2 percent from a year ago.

Existing-home sales in the West declined 0.8 percent to an annual rate of 1.21 million in June, but remain 2.5 percent above a year ago. The median price in the West was $378,100, up 7.4 percent from June 2016.

Flash Back on Orlando Real Estate Market!

Are you ready for a real estate “flash back” from now to 10 years ago? Here are some interesting facts for you take in and contact Allyn and Pam Maycumber of Keller Williams Realty Advantage III for a detailed FREE market analysis of your home today.
 

According to the National Association of Realtors, existing-home sales took off in March 2017 to their highest pace in over 10 years, and severe supply shortages resulted in the typical home coming off the market significantly faster than in February and a year ago. Only the West saw a decline in sales activity in March.

Total existing-home sales, which are completed transactions that include single-family , townhouses, condominiums and co-ops, ascended 4.4 percent to a seasonally adjusted annual rate of 5.71 million in March from a downward revised 5.47 million in February. March’s sales pace is 5.9 percent above a year ago and surpasses January as the strongest month of sales since February 2007 (5.79 million).

Lawrence Yun, NAR chief economist, says existing sales roared back in March and were led by hefty gains in the Northeast and Midwest. “The early returns so far this spring buying season look very promising as a rising number of households dipped their toes into the market and were successfully able to close on a home last month,” he said. “Although finding available properties to buy continues to be a strenuous task for many buyers, there was enough of a monthly increase in listings in March for sales to muster a strong gain. Sales will go up as long as inventory does.”

The median existing-home price for all housing types in March was $236,400, up 6.8 percent from March 2016 ($221,400). March’s price increase marks the 61st consecutive month of year-over-year gains.

Total housing inventory at the end of March increased 5.8 percent to 1.83 million existing homes available , but is still 6.6 percent lower than a year ago (1.96 million) and has fallen year-over-year for 22 straight months. Unsold inventory is at a 3.8-month supply at the current sales pace (unchanged from February).

Lawrence Yun also noted, “Bolstered by strong consumer confidence and underlying demand, home sales are up convincingly from a year ago nationally and in all four major regions despite the fact that buying a home has gotten more expensive over the past year.”

Properties typically stayed on the market for 34 days in March, which is down significantly from 45 days in February and 47 days a year ago. Short sales were on the market the longest at a median of 90 days in March, while foreclosures sold in 52 days and non-distressed homes took 32 days (shortest since NAR began tracking in May 2011). Forty-eight percent of homes sold in March were on the market for less than a month.

“Last month’s swift price gains and the remarkably short time a home was on the market are directly the result of the home building industry’s struggle to meet the dire need for more new homes,” said Yun. “A growing pool of all types of buyers is competing for the lackluster amount of existing homes on the market. Until we see significant and sustained multi-month increases in housing starts, prices will continue to far outpace incomes and put pressure on those trying to buy.”

According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage rose for the fifth straight month in March to 4.20 percent from 4.17 percent in February. The average commitment rate for all of 2016 was 3.65 percent.

First-time buyers were 32 percent of sales in March, which is unchanged from February and up from 30 percent a year ago. NAR’s 2016 Profile of Home Buyers and Sellers – released in late 2016 – revealed that the annual share of first-time buyers was 35 percent.

All-cash sales were 23 percent of transactions in March, down from 27 percent in February and 25 percent a year ago. Individual investors, who account for many cash sales, purchased 15 percent of homes in March, down from 17 percent in February but up from 14 percent a year ago. Sixty-three percent of investors paid in cash in March.

Distressed sales – foreclosures and short sales – were 6 percent of sales in March, down from 7 percent in February and 8 percent a year ago. Five percent of March sales were foreclosures and 1 percent were short sales. Foreclosures sold for an average discount of 16 percent below market value in March (18 percent in February), while short sales were discounted 14 percent (17 percent in February).

Single-family and Condo/Co-op Sales

Single-family home sales climbed 4.3 percent to a seasonally adjusted annual rate of 5.08 million in March from 4.87 million in February, and are now 6.1 percent above the 4.79 million pace a year ago. The median existing single-family home price was $237,800 in March, up 6.6 percent from March 2016.

Existing condominium and co-op sales increased 5.0 percent to a seasonally adjusted annual rate of 630,000 units in March, and are now 5.0 percent higher than a year ago. The median existing condo price was $224,700 in March, which is 8.0 percent above a year ago.

Regional Breakdown

March existing-home sales in the Northeast surged 10.1 percent to an annual rate of 760,000, and are now 4.1 percent above a year ago. The median price in the Northeast was $260,800, which is 2.8 percent above March 2016.

In the Midwest, existing-home sales jumped 9.2 percent to an annual rate of 1.31 million in March, and are now 3.1 percent above a year ago. The median price in the Midwest was $183,000, up 6.2 percent from a year ago.

Existing-home sales in the South in March rose 3.4 percent to an annual rate of 2.42 million, and are now 8.5 percent above March 2016. The median price in the South was $210,600, up 8.6 percent from a year ago.

Existing-home sales in the West decreased 1.6 percent to an annual rate of 1.22 million in March, but are still 5.2 percent above a year ago. The median price in the West was $347,500, up 8.0 percent from March 2016.

Once again, if you would like a detailed analysis of your specific neighborhood then contact us www.WeKnowNona.com and www.WeKnowOrlando.com – call at 407-251-1314. Whether you are buying or selling it is imperative to have all the facts at your disposal to make an informed decision. Our homes are typically one of our greatest assets in our portfolio.

Orlando’s housing market: Median prices up in Dec. 2016

Central ’s housing market saw an increase in sales and median sales price in December,

Local sales of existing single-family totaled 2,822 last month, up 2.4 percent from December 2015. Statewide, sales of single-family homes totaled 22,332 last month, up 0.8 percent from December 2015.

Stateside, the housing market reported higher median prices and fewer all-cash sales in December, according to the Florida Realtors. “The trend of tight housing supply continued to have an impact on Florida’s housing market in December,” said 2017 Florida Realtors President Maria Wells, in a prepared statement. “Last month, statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year for 61 months in row. While that’s good news for sellers, it’s continuing to put pressure on inventory for first-time homebuyers and those who may be looking for their next ‘move-up’ home.”

The median sales price for a single-family home in Central Florida was $230,000 last month, up 8.5 percent from the year-ago period, and higher than the statewide median of $226,000, which was up 9.2 percent from the previous year. For townhomes anSold house sign in Midwest suburban setting. Focus on sign.d condos, the local median sales price was $137,000 in December, up 14.2 percent from the year-ago period, and lower than the statewide median of $166,900, which was up 7.7 percent from the prior year. The median is the midpoint; half the homes sold for more, half for less.

There were 719 townhomes and condos sold last month in Central Florida, down 2.8 percent from the year-ago period; and 8,673 townhomes and condos sold statewide in December, down 5.2 percent when compared to December 2015.

The national median sales price for existing single-family homes in November 2016 was $236,500, up 6.8 percent from the prior year; and the national median existing condo price was $222,600, according to the National Association of Realtors.

Closed sales data for Florida showed fewer short sales and cash-only sales last month: Short sales for townhouse-condo properties fell 45 percent, while short sales for single-family homes declined by 39.2 percent. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

Florida’s housing market in July

Existing home sales dropped 8%

ORLANDO, Fla. –.Existing home sales dropped 8% inventory shortage, rising prices. NAR Closed sales of single-family homes statewide totaled 24,083 last month, down 8 percent from July 2015, reflecting the state’s current shortfall in inventory.

“Florida’s supply of for-sale homes remains tight, which is putting pressure on median prices and having a dampening effect on closed sales,” said 2016 Florida Realtors® President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. “But the state’s strong jobs outlook and growing economy are attracting more and more new residents, which provides a solid foundation for the housing market. Florida businesses created 26,500 jobs in July and our population is growing by more than 1,000 new residents each day, according to recent economic reports.”

Home sellers continued to get more of their original asking price at the closing table in July: Sellers of existing single-family homes received 96.4 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.6 percent (median percentage).

The statewide median sales price for single-family existing homes last month was $223,238, up 11.6 percent from the previous year, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in July was $160,000, up 6.8 percent over the year-ago figure.

In July, statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year for the 56th month in a row, Veissi noted. The median is the midpoint; half the homes sold for more, half for less.

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in June 2016 was $249,800, up 5 percent from the previous year; the national median existing condo price was $231,600. In California, the statewide median sales price for single-family existing homes in June was $519,440; in Massachusetts, it was $380,000; in Maryland, it was $291,892; and in New York, it was $248,500.

Looking at Florida’s townhouse-condo market, statewide closed sales totaled 8,934 last month, down 11.5 percent compared to July 2015. Closed sales data reflected fewer short sales and cash-only sales in July: Short sales for townhouse-condo properties declined 41.1 percent while short sales for single-family homes dropped 34 percent. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

“Compared to July of 2015, closed single-family home sales were down in 18 out of Florida’s 22 metro areas this July,” said Florida Realtors® Chief Economist Brad O’Connor. “This translates into a statewide sales decline of 8 percent year-over-year, which is the largest drop we’ve seen for any month in 2016. But a closer look at the data shows the same underlying trend we’ve been seeing all year, which is that these sales declines are occurring almost exclusively in sub-$200,000 price tiers.

“Florida continues to suffer from a drought in the supply of affordable housing for sale, resulting from the gradual exhaustion of the state’s inventory of distressed properties and the lack of new construction in these price ranges. The same story is largely playing out in the markets for condos and townhouses.”

Inventory was at a 4.3-months’ supply in July for single-family homes and at a 5.9-months’ supply for townhouse-condo properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.44 percent in July 2016, significantly lower than the 4.05 percent average recorded during the same month a year earlier.

Homes near good schools worth more

Housing data firm’s research shows homes near good elementary schools are valued 77 percent higher

  • homes-near-good-schools-worth-more The average estimated home value across 1,661 ZIPs with at least one good school was $427,402
  • The average home value in ZIPs that lack high-performing elementary schools is of $241,096.
  • Median home prices in ZIP codes with good schools are up 4.5 percent compared to the same period in 2006.
  • The overwhelming majority (83 percent) of metros showed stronger home values near highly-ranked elementary schools.
  • Real estate agents can agree that high-performing school districts make for good home investment locations.Many homebuyers figure good schools make for stronger demand at resale, and Attom Data Solutions’ Schools and Housing Report shows that ZIP codes with at least one good elementary school truly do hold higher home values.

    The average estimated home value across 1,661 ZIPs with at least one good school was $427,402 — or 77 percent higher than the average home value of $241,096 in the remaining ZIPs that lack high-performing elementary schools.

  • Intuitively, buyers already know that schools are important when buying a home, even if they don’t have school-aged children. It’s a nice amenity to have for quality of life,” said Daren Blomquist, senior vice president at Attom.“But this data proves that there is a tangible financial impact that good schools have on home values and home price appreciation over time.”

    In order to school rankings and nearby home values, Attom considered good schools to hold test scores 33 percent higher than the statewide average.

    Compared to 2006, year-to-date median home price in ZIP codes without good schools is 1 percent less. But, median home prices in ZIP codes with good schools are up 4.5 percent compared to the same period in 2006.good schools and home values

  • ROI typically stronger near good schools

    Since purchase, homeowners near good schools have gained an average of $74,716, or a 32 percent return on investment (ROI). The average ROI for homes farther from highly rated schools is 27.5 percent, or $23,311.

    Homeowner ROI in ZIP codes with at least one good school was 3.1 percent higher in San Francisco and 6 percent stronger in New York. In Miami and Chicago, good school ZIP code ROI was 6.7 and 5.9 percent higher, respectively.

    In the Houston metro area, the difference in ROI was a staggering 773.9 percent — favoring the good school ZIPs.

    On the other hand, Los Angeles and Washington, D.C., showed stronger ROI in ZIP codes without at least one highly-rated school. In both metros, ROI was 4.2 percent higher in ZIPs outside of the good school district.

    Blomquist says in these metros specifically, home prices may be lower in ZIP codes without a good school, but those areas are in higher demand right now. Affordability has somewhat outweighed the school affect in certain metros.

Housing market sees 2Q 2016 increase in listings, prices

Realtors, Housing market sees 2Q 2016 increase had more new listings, higher median prices and fewer days to a sales contract during the second quarter of 2016, according to the  Realtors.lake-nona-homes-for-sale

Closed sales of single-family statewide totaled 76,748 in second-quarter 2016, up 1.4 percent from second-quarter 2015.

“Florida continued to add new jobs, which attracts new residents, encourages economic growth and strengthens the housing market,” said 2016 Florida Realtors President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. “Traditional housing sales increased statewide over the three-month period, while sales of distressed properties continued to decline. In another positive sign, new listings for single-family homes over the three-month-period rose 2.9 percent year-over-year.”

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Orlando Homes

 

The statewide median sales price for single-family existing homes in second-quarter 2016 was $220,000, up 10 percent from the year-ago period, according to data from Florida Realtors. “Existing home sale prices throughout most of Florida’s metro areas are continuing to exhibit robust year-over-year growth,” said Florida Realtors Chief Economist Brad O’Connor. “Demand is strong and supply is limited. The inventory of homes at the more affordable end of the price spectrum – which includes the vast majority of distressed properties – continues to decline significantly, and new construction has not come close to making up the difference.”

Meanwhile, traditional sales for single-family homes increased 14.4 percent year-over-year. Closed sales typically occur 30 to 90 days after sales contracts are written. In second-quarter 2016, the median time to a contract (the midpoint of the number of days it took for a property to receive a sales contract during that time) was 42 days for single-family homes and inventory was at a 4.3-months’ supply, according to Florida Realtors.

The interest rate for a 30-year fixed-rate mortgage averaged 3.59 percent for second-quarter 2016, down from the 3.96 percent average during the same quarter a year earlier, according to Freddie Mac.

Beware, warns Gary Keller ‘shift’ in housing market

Keller Williams co-founder is not bullish on the

Keller Williams co-founder Gary Keller — who owns the largest real estate company in the world, according to its count — is very bullish about his company.

But he’s not as bullish about economic and housing market conditions.

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Gary Keller

He points to five indicators of a downturn of some sort. Days on the market are up, the supply of move-up and higher end housing is now growing, home prices are going down in some markets, unit sales are slowing and construction is flat. “Only four times in U.S. history have home sales been higher, it’s a sign of a shift,” said Keller.

Plus, the “median home price is higher that it has ever been in the history of recorded time — last time we were here we were on the verge of a recession,” he said.

“It wouldn’t take much right now to push us into a buyer’s market.”

“I want you to get ahead” of these trends, he implored his troops. And there can be long-term implications. “We lost homebuilders in the last downturn that we never got back.”

And in the meantime, “nationally, home sales are on pace for another post-crisis record; sales are slowing in some markets as affordability becomes a serious issue.”

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Housing market

He also said that, “we are now seeing many markets split by price point. Entry-level remain in a seller’s market, but some and move-up markets show signs of shifting.”

The macroeconomic picture is not helping. Economic growth has been held back by low levels of investment in 2016, even though consumer spending remains strong. Low interest rates and an improved employment picture are good news, according to Keller.

But affordability has been declining since January as prices continue to outpace wage growth, hurting home sales. Construction has been focused on the high-end market, which is now showing signs of stress as high net worth buyers sit on the sidelines due to political and economic uncertainty here and abroad.

 

‘Boomerang’ buyers poised for Homeownership

Seven years after the housing crash, Orlando has been dubbed a “” as former homeowners begin to restore their credit enough to purchase another house. Check out this Video on the now.’Boomerang’ buyers poised for homeownership in Orlando.  https://www.youtube.com/watch?v=D1azdK3G4_k

More than almost anywhere in the country, Metro Orlando has the makings of a housing market poised to benefit from foreclosed homeowners ready to buy again, according to a report released Tuesday by RealtyTrac.

The first wave of more than 100,000 foreclosures and short sales engulfed the Orlando market seven years ago, and some of those former homeowners have cleaned up their credit in that time. Whether they re-enter the market depends largely on wage increases and home-price appreciation.

“We are now paying in rent what we couldn’t afford in mortgage back then,” said Orlando resident Hilary Liermann. Following a short sale of her Gotha home in 2010, her family of four now lives in the Dr. Phillips area. She said they could consider buying a home again, depending on her family’s income and on home prices in their school district.

In the four-county Metro Orlando region, more than 123,000 “boomerang” buyers who lost their in foreclosure and short sales since the market crashed in 2007 could regain the ability to purchase houses through 2022, according to RealtyTrac.

Typically, it takes seven years for homeowners to repair their credit score after a foreclosure, or as little as four years for homeowners who went through a short sale. Andy Insua, Florida director of mortgage for Fifth Third Bank, said new types of mortgage loans are even more forgiving of distress-home sales.

Northlake Park home photo

Homeownership

But potential boomerang buyers might still face problems.

“There’s going to be some head winds for people coming back into the market: One is that wages haven’t grown significantly, and prices have gone up, so affordability has come down,” Insua said. “And, also, the inventory in that space is thinner, so it can be tougher to find what you’re looking for.”

And then there is a “kind of emotional scar tissue” and also a lack of understanding that prospective buyers may, in fact, qualify for a mortgage, Insua added.

In Dr. Phillips, Liermann said it’s been nice to see her children settle into high-performing schools and to call the landlord last summer when the air conditioning needed to be replaced. Financially, though, it’s not easy to write a mortgage-sized check for the monthly rent. And while renters risk being forced to relocate if their landlord decides to sell, the pain of a short sale isn’t easily forgotten, she added.

Boomerang Buyer

“We’re real nervous, and we’re kind of putting it off and putting it off … maybe in the next few years,” she said Tuesday.

During the last 10 years, Orlando’s homeownership rate has dropped from 77 percent to 66 percent, property records show. About a third of Orange County’s new residential construction last year was apartments — more than double the rate from the housing-boom years of 2003 through 2006, property records show.

A shift of former Orlando-area homeowners from their rentals back into homeownership could strengthen the housing market, but it could also signal weakening demand for new apartments and the region’s expanding pool of rental houses.

“It’s not a slam-dunk they’re going to become buyers. At this point, it’s still a wild card,” said RealtyTrac Vice President Daren Blomquist. “But how they behave moving forward will affect a lot of people in the industry.

“If they do move forward, that could be a problem for some of these developers who are counting on them to remain renters for some time.”

RealtyTrac outlined three factors driving the boomerang market for Metro Orlando:

•The area has enough former homeowners to purchase 13 percent of the housing stock in the four-county area during the next seven years.

•Orlando-area buyers pay a median of just 23 percent of their income for a median-priced home — far below the 28 percent point at which a market is no longer considered affordable.

•The two Orlando groups most likely to have lost their homes — Generation X and baby boomers — have grown larger from 2007 to 2013, the real-estate-research company found.