Tuesday, June 12, 2012
South Florida cities among top U.S. home rental markets: report
Fort Lauderdale, West Palm Beach and Miami are among the top 50 markets for expected returns on rental properties, according to a survey from HomeVestors of America and Local Market Monitor. Fort Lauderdale ranked 12th on the list, followed by West Palm Beach at 19 and Miami at 28. “We think this is the best opportunity for investors to accumulate rentals in the last 30 years,” said HomeVestors Co-President David Hicks. The rental data was gathered in the second quarter of 2012, examining future relative returns of single-family homes. While Florida tied with Texas for the most cities of any state on the list, Local Market Monitor urged caution on the Sunshine State. “Overall, the Florida markets will be slow to recover because so many homes were sold as ‘investments’ and now sit empty,” Local Market Monitor President Ingo Winzer said. Miami’s rental market has seen a stark turnaround in years since the downturn, reaching 93 percent occupancy in March, according to the Downtown Development Authority. — Alexander Britell
Home prices going up???
More Americans are optimistic that home prices will inch up over the next year, with expectations that prices will rise at least 1.4 percent in that timeframe. That marks the highest amount ever recorded in Fannie Mae’s monthly National Housing Survey.
Thirty-four percent — also the highest ever recorded — of the 1,000 respondents in the May housing survey say they expect to see a boost in home prices in the next year. Forty-one percent say they think mortgage rates also will rise over the next year.
“Both indicators suggest the potential that consumers may consider moving off the sidelines to purchase a home,” according to the survey.
Survey respondents also say they expect rental prices to continue to edge up over next year, projecting a 4.1 percent increase in that period.
Still, a slowdown in the pace of new jobs and income growth is creating a plateau in consumer sentiment that might delay a full recovery in the housing market, according to Fannie Mae’s survey. Fifteen percent of those surveyed reported that their household income is significantly lower than it was 12 months ago, which marks a record low in the annual survey.
"Our May consumer data show that Americans are taking a 'wait and see' approach about buying or selling a home,” says Doug Duncan, Fannie Mae’s chief economist. “This is not surprising given their assessment that their income during the past 12 months and their personal financial expectation for the next 12 have leveled off. ... Current jobs data are reminiscent of the spring slowdown that continued into the summer months during the last two years. If this pattern continues, we do not expect to see any significant upturn in consumer sentiment during the summer and a meaningful housing recovery likely will be delayed once again."
Thirty-four percent — also the highest ever recorded — of the 1,000 respondents in the May housing survey say they expect to see a boost in home prices in the next year. Forty-one percent say they think mortgage rates also will rise over the next year.
“Both indicators suggest the potential that consumers may consider moving off the sidelines to purchase a home,” according to the survey.
Survey respondents also say they expect rental prices to continue to edge up over next year, projecting a 4.1 percent increase in that period.
Still, a slowdown in the pace of new jobs and income growth is creating a plateau in consumer sentiment that might delay a full recovery in the housing market, according to Fannie Mae’s survey. Fifteen percent of those surveyed reported that their household income is significantly lower than it was 12 months ago, which marks a record low in the annual survey.
"Our May consumer data show that Americans are taking a 'wait and see' approach about buying or selling a home,” says Doug Duncan, Fannie Mae’s chief economist. “This is not surprising given their assessment that their income during the past 12 months and their personal financial expectation for the next 12 have leveled off. ... Current jobs data are reminiscent of the spring slowdown that continued into the summer months during the last two years. If this pattern continues, we do not expect to see any significant upturn in consumer sentiment during the summer and a meaningful housing recovery likely will be delayed once again."
Sunday, June 10, 2012
Home prices up for 2nd straight month in April 2012
U.S. home prices rose on both an annual and monthly basis for the second month in a row in April, according to a home-price index compiled by data aggregator CoreLogic.
Prices increased 1.1 percent in April compared to April 2011 and 2.2 percent compared to revised figures for March. When distressed sales -- short sales and real estate owned (REO) properties -- are excluded, prices jumped 1.9 percent year over year and 2.6 percent month to month.
With this report, CoreLogic also introduced a pending home price index based on recent prices changes gleaned from multiple listing service data. That index forecasts that home prices rose another 2 percent between April and May, CoreLogic said.
Anand Nallathambi, CoreLogic's president and CEO, said in a statement that the increases are a sign "the housing market is stabilizing."
"Home prices are responding to a restricted supply that will likely exist for some time to come -- an optimistic sign for the future of our industry."
Mark Fleming, CoreLogic's chief economist, said in a statement that, when distressed sales are excluded, home prices in March and April improved at a rate not seen since late 2006 and faster than in 2010, when a federal tax credit program boosted sales.
"Nationally, the supply of homes in current inventory is down to 6.5 months, a level not seen in more than five years, in part driven by the 'locked in' position of so many homeowners in negative equity," he said.
Of the 100 most populous metro areas in the country, 44 saw year-over-year price declines in April, down 10 from March, CoreLogic said. Six of the 10 largest markets saw price increases with the Phoenix metro leading the pack.
10 most populous metro markets, ranked by percent price change in April:
Core-based statistical area (CBSA)
Single-family change from year ago
Excluding distressed
Chicago-Joliet-Naperville, Ill.
-7.3%
-1.1%
Atlanta-Sandy Springs-Marietta, Ga.
-5.3%
1.9%
Riverside-San Bernardino-Ontario, Calif.
-1.4%
0.3%
Los Angeles-Long Beach-Glendale, Calif.
-0.5%
1.2%
New York-White Plains-Wayne, N.Y.-N.J.
1.3%
1.7%
Philadelphia, Pa.
1.7%
3.0%
Houston-Sugar Land-Baytown, Texas
2.0%
3.6%
Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.
2.8%
3.1%
Dallas-Plano-Irving, Texas
3.5%
5.4%
Phoenix-Mesa-Glendale, Ariz.
11.3%
7.0%
Prices increased 1.1 percent in April compared to April 2011 and 2.2 percent compared to revised figures for March. When distressed sales -- short sales and real estate owned (REO) properties -- are excluded, prices jumped 1.9 percent year over year and 2.6 percent month to month.
With this report, CoreLogic also introduced a pending home price index based on recent prices changes gleaned from multiple listing service data. That index forecasts that home prices rose another 2 percent between April and May, CoreLogic said.
Anand Nallathambi, CoreLogic's president and CEO, said in a statement that the increases are a sign "the housing market is stabilizing."
"Home prices are responding to a restricted supply that will likely exist for some time to come -- an optimistic sign for the future of our industry."
Mark Fleming, CoreLogic's chief economist, said in a statement that, when distressed sales are excluded, home prices in March and April improved at a rate not seen since late 2006 and faster than in 2010, when a federal tax credit program boosted sales.
"Nationally, the supply of homes in current inventory is down to 6.5 months, a level not seen in more than five years, in part driven by the 'locked in' position of so many homeowners in negative equity," he said.
Of the 100 most populous metro areas in the country, 44 saw year-over-year price declines in April, down 10 from March, CoreLogic said. Six of the 10 largest markets saw price increases with the Phoenix metro leading the pack.
10 most populous metro markets, ranked by percent price change in April:
Core-based statistical area (CBSA)
Single-family change from year ago
Excluding distressed
Chicago-Joliet-Naperville, Ill.
-7.3%
-1.1%
Atlanta-Sandy Springs-Marietta, Ga.
-5.3%
1.9%
Riverside-San Bernardino-Ontario, Calif.
-1.4%
0.3%
Los Angeles-Long Beach-Glendale, Calif.
-0.5%
1.2%
New York-White Plains-Wayne, N.Y.-N.J.
1.3%
1.7%
Philadelphia, Pa.
1.7%
3.0%
Houston-Sugar Land-Baytown, Texas
2.0%
3.6%
Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.
2.8%
3.1%
Dallas-Plano-Irving, Texas
3.5%
5.4%
Phoenix-Mesa-Glendale, Ariz.
11.3%
7.0%
Tuesday, May 29, 2012
How Long Will you be underwater?
About 16 million homeowners owe more on their mortgage than their homes are worth, which means they are "underwater." So long as that condition continues, they have no equity that can be used to help finance the purchase of another house.
On the contrary, they can't sell the house without digging into their pockets to pay the difference between what they owe and what they can realize from the sale net of expenses.
But time heals most wounds, and negative equity is no exception. The principal component of the monthly mortgage payment reduces the loan balance by the same amount.
Refinancing into a mortgage carrying a lower interest rate reduces the interest portion of the monthly mortgage payment, thereby increasing the principal component and the rate at which the balance is paid down.
On the contrary, they can't sell the house without digging into their pockets to pay the difference between what they owe and what they can realize from the sale net of expenses.
But time heals most wounds, and negative equity is no exception. The principal component of the monthly mortgage payment reduces the loan balance by the same amount.
Refinancing into a mortgage carrying a lower interest rate reduces the interest portion of the monthly mortgage payment, thereby increasing the principal component and the rate at which the balance is paid down.
Palm Beach Rents on the Rise 3.8%
The boom in demand for rentals, coupled with dwindling inventory – even as developers race to build multi-family housing in South Florida – is driving prices up fast, the Palm Beach Post reported. Despite the affordability of South Florida’s housing market, bad credit and slow lending are driving former homeowners toward rentals. “We’ve seen places jump $100 just like that,” said Dan Gallien, president of West Palm Beach-based Rent 1 Sale 1 Realty. “We tell people to offer full price. You don’t mess around for $50.” [Palm Beach Post]
Thursday, May 24, 2012
Buying a No Pet policy Condo
I am surprised that so many condos have a "no pets" policy. How strict is this policy? For instance, I have a cat that would not go outside, so would my cat be banned also?
A: As a devoted dog mom, this is an issue that's near and dear to my heart, especially as my first dog years ago was what I call a real estate rescue.
At the time, I was a real estate broker working in a big office, and adopted my Pekinese, Mr. Chom Chom Nelson (RIP), after answering the SOS email of an agent who was selling the home of some clients who were (you guessed it!) moving out of state, to a condo that wouldn't allow pets.
I have personally only owned single-family homes, and all the condo transactions I've managed have been in California, which has a law prohibiting no-pet condo deed restrictions (California Civil Code Section 1360.50), so I was completely outraged at the idea of such a ban. It was a real education for me to find out that in states like Florida and New York, it is extremely common for every condo complex in town to have an outright deed restriction on all pets.
A: As a devoted dog mom, this is an issue that's near and dear to my heart, especially as my first dog years ago was what I call a real estate rescue.
At the time, I was a real estate broker working in a big office, and adopted my Pekinese, Mr. Chom Chom Nelson (RIP), after answering the SOS email of an agent who was selling the home of some clients who were (you guessed it!) moving out of state, to a condo that wouldn't allow pets.
I have personally only owned single-family homes, and all the condo transactions I've managed have been in California, which has a law prohibiting no-pet condo deed restrictions (California Civil Code Section 1360.50), so I was completely outraged at the idea of such a ban. It was a real education for me to find out that in states like Florida and New York, it is extremely common for every condo complex in town to have an outright deed restriction on all pets.
Wednesday, May 23, 2012
New Homes Inventory Shrinking
Sales of new homes remain anemic by historic measures, but homebuilders have cut back so drastically on construction that new-home inventories are no longer bloated.
New single-family homes were selling at a seasonally adjusted annual rate of 343,000 homes per year during April, up 3.3 percent from March and 9.9 percent from a year ago, the Census Bureau reported.
That represents a supply of 5.1 months at the current rate of sales, down from 5.2 months in March and an all-time high of 12.1 months in January 2009. Many analysts consider a six-month supply of homes an even balance of supply and demand.
Sales of new single-family homes exceeded 1 million per year from 2003 through 2006, dipping below 500,000 in 2008 for the first time since 1982. The 306,000 new homes sold last year was an all-time low in records dating back to 1963.
New single-family homes were selling at a seasonally adjusted annual rate of 343,000 homes per year during April, up 3.3 percent from March and 9.9 percent from a year ago, the Census Bureau reported.
That represents a supply of 5.1 months at the current rate of sales, down from 5.2 months in March and an all-time high of 12.1 months in January 2009. Many analysts consider a six-month supply of homes an even balance of supply and demand.
Sales of new single-family homes exceeded 1 million per year from 2003 through 2006, dipping below 500,000 in 2008 for the first time since 1982. The 306,000 new homes sold last year was an all-time low in records dating back to 1963.
South Florida - Distressed Home Loans
A greater proportion of home loans in South Florida are distressed than in any other region in the United States, according to data from Foreclosure-Response.org, the Sun Sentinel reported. The Web site is a joint initiative between Local Initiatives Support, Urban Institute and the Center for Housing Policy. It is the seventh quarter in a row in which South Florida has led the country in the rate of home loan delinquency. [Sun Sentinel]
10 markets to invest in realestate for foreign buyers
The 10 markets, ranked by highest share of foreign buyers, according to public records data, are:
1.Lakeland-Winter Haven, Fla.
2.Cape Coral-Fort Myers, Fla.
3.Orlando-Kissimmee-Sanford, Fla.
4.North Point-Bradenton-Sarasota, Fla.
5.Miami-Fort Lauderdale-Pompano Beach, Fla.
6.Phoenix-Mesa-Glendale, Ariz.
7.New York County, N.Y. (Manhattan)
8.Honolulu, Hawaii.
9.Tampa-St. Petersburg-Clearwater, Fla.
10.Las Vegas-Paradise, Nev.
1.Lakeland-Winter Haven, Fla.
2.Cape Coral-Fort Myers, Fla.
3.Orlando-Kissimmee-Sanford, Fla.
4.North Point-Bradenton-Sarasota, Fla.
5.Miami-Fort Lauderdale-Pompano Beach, Fla.
6.Phoenix-Mesa-Glendale, Ariz.
7.New York County, N.Y. (Manhattan)
8.Honolulu, Hawaii.
9.Tampa-St. Petersburg-Clearwater, Fla.
10.Las Vegas-Paradise, Nev.
Sales and closing prices of existing U.S. homes
Sales and closing prices of existing U.S. homes grew in April and listed inventory fell, indicating a strengthening recovery, according to data released today by the National Association of Realtors.
Completed sales on existing homes increased 3.4 percent from March to a seasonally adjusted annual rate of 4.62 million in April 2012. Sales are up 10 percent from the 4.2 million rate recorded in April 2011. The median price for all types of existing homes rose 10.1 percent from last year to $177,400.
The inventory of listed existing homes has fallen 20.6 percent from April 2011, although total inventory increased 9.5 percent to 2.54 million from March 2012.
“It is no longer just the investors who are taking advantage of high affordability conditions. A return of normal home buying for occupancy is helping home sales across all price points, and now the recovery appears to be extending to home prices,” Lawrence Yun, NAR chief economist, said. “The general downtrend in both listed and shadow inventory has shifted from a buyers’ market to one that is much more balanced, but in some areas it has become a seller’s market.”
Despite the importance of these apparent improvements in housing for national financial markets, the accuracy of the NAR’s past monthly existing-home data has been called into question and the organization had to adjust years worth of data because it had been gathered incorrectly. — Christopher Cameron
Completed sales on existing homes increased 3.4 percent from March to a seasonally adjusted annual rate of 4.62 million in April 2012. Sales are up 10 percent from the 4.2 million rate recorded in April 2011. The median price for all types of existing homes rose 10.1 percent from last year to $177,400.
The inventory of listed existing homes has fallen 20.6 percent from April 2011, although total inventory increased 9.5 percent to 2.54 million from March 2012.
“It is no longer just the investors who are taking advantage of high affordability conditions. A return of normal home buying for occupancy is helping home sales across all price points, and now the recovery appears to be extending to home prices,” Lawrence Yun, NAR chief economist, said. “The general downtrend in both listed and shadow inventory has shifted from a buyers’ market to one that is much more balanced, but in some areas it has become a seller’s market.”
Despite the importance of these apparent improvements in housing for national financial markets, the accuracy of the NAR’s past monthly existing-home data has been called into question and the organization had to adjust years worth of data because it had been gathered incorrectly. — Christopher Cameron
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