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Median Home Prices Hits All Time High

Originally From Market Data
Tuesday, August 07, 2018

Homes At An All Time High

Single family homes and condos sold for a median price of $255,000 in the second quarter, according to ATTOM Data Solutions’ Q2 2018 U.S. Home Sales Report.

The report said the median price during the second quarter was up 6.3 percent year-over-year and reached an all-time high. However, the annual appreciation in the second quarter was the slowest since 2016.

“Annual home price appreciation nationwide has now slowed for five consecutive quarters following a post-election spike to double-digit appreciation in the first quarter of 2017,” ATTOM Senior Vice President Daren Blomquist said in a release. “Although home sellers are still in the driver’s seat of this housing market, moderating home price appreciation is good news for prospective homebuyers and signals that rising mortgage rates and other housing headwinds are cooling red-hot home price appreciation in some areas.”

Good News For Sellers

According to the report, second-quarter, annual home price appreciation slowed in 66 percent of the markets analyzed, including in Los Angeles, Chicago, Dallas-Fort Worth, Houston and Philadelphia. The report found that annual home price appreciation accelerated in 34 percent of markets, including in New York, Washington, D.C., Boston, San Francisco and Detroit.

ATTOM said the biggest year-over-year increase in median prices were in San Jose, California (25 percent); Flint, Mich. (23.7 percent); Seattle (14.3 percent); Boise, Idaho (14.3 percent) and in San Francisco (14.2 percent).

Median home prices in 65 percent of the metro areas analyzed were above their pre-recession peaks in the second quarter, the report found. Those areas included Houston (79 percent above); Dallas-Fort Worth (78 percent above); Greeley, Colo. (76 percent above); Denver (75 percent above) and San Antonio (68 percent above).

During the second quarter, Median home prices were still below pre-recession peaks in 35 percent of the metros analyzed, including in Atlantic City (36 percent below); York, Pa. (34 percent below); Salisbury, Md. (21 percent below); Naples, Fla. (19 percent below) and in Trenton, N.J. (18 percent below).

Hey aspiring snowbirds: The Florida housing market could be rebounding

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The following article is from Canadian Real Estate Wealth Magazine.

Florida is known for its amusement parks, but no white-knuckle ride has been quite like the last real estate cycle. From 2004 to 2007, Florida experienced one of the biggest property booms in America. Lax lending policies coupled with borrower greed led to massive growth in a relatively short period of time. Despite the meteoric rise in prices, many believed the market couldn’t fall. But when the U.S. market imploded, Florida was one of the first states to crash. And, like the rest of the country, many watched helplessly as prices and demand plunged.

As ‘Foreclosure’ and ‘For Sale’ signs popped up like weeds, many Canadians – retired snowbirds and keen investors alike – started taking interest. Florida prices plunged more than 40 per cent peak-to-trough on the FHFA Index and top destinations such as Orlando experienced a 56 per cent drop in prices from an average $258,000 (U.S.) at the peak, down to $113,400 in 2011. Rock bottom prices and a high exchange rate made purchasing U.S. property an attractive proposition for northern neighbours. According to the National Association of Realtors, nearly a quarter of home sales in the 12 months ending in March 2012 were by Canadians.

Times, however, are changing. A 2012 report from BMO indicates that while the housing market in Florida is relatively stressed, the worst is over. “Florida was one of the epicentres of the housing bubble-bust cycle, but there are mounting signs that a recovery is under way,” it said.

Economists indicate that the Florida economy is recovering at a modest pace with real GDP expected to grow 1.9 per cent in 2013.

Unemployment is trending down, but it is still an above-average 8.7 per cent. Certain pockets of the housing market are showing promise, with prices in Miami and Tampa bouncing up 9 per cent from their late-2011 lows. Another positive sign is a reduction in the supply of homes. Property market expert and owner of The Pink Flamingo, Erica Muller, indicates inventory has diminished by more than 50 per cent.

“We are seeing bidding wars and multiple offers on almost every property. As long as a home is not overpriced, we are seeing it sell within the first week of listing and sometimes it’s sold before it even hits the public MLS. Building starts are up and more and more people are paying builder prices for a new home due to the lack of inventory available.”

However, it should be noted that the foreclosure rate is still the highest in the U.S. at 13.7 per cent.

“Overall, Florida’s housing market is one of the most stressed (second of 50) in the country, behind Nevada, but a draw down in inventories and upward price momentum are positive indications that the worst is over,” states BMO.

While this might be the beginning of the end for Florida’s negative market cycle, Florida Home Finders of Canada vice president Brian Ellis, says it’s not too late for Canadians looking to buy.

“Most savvy real estate investors will tell you the best time to buy is just when the market has turned a corner and is starting to go up – and that’s where Florida is now,” Ellis says.

All of the factors that have made U.S. property an attractive real estate proposition still hold true; Florida real estate prices are low, the Canadian dollar is strong, and low interest rates at home make it easier for Canadians to equity out of their home and put cash down on a U.S. property. The only drawback to the Florida market, says Ellis, is that this situation will not last forever.

“So, Canadians have to jump and they have to jump fast if they want to take advantage of this marketplace.”

While factors that make buying south of the border attractive to Canadians can apply to several states in the lower 49th, investment experts argue Florida has unique economic advantages that set it apart from other destinations. According to Florida Investment Real Estate owner Steven Silverman, Florida – which is already the fourth largest state in the country – has long been one of the fastest growing regions in the U.S., and by the next census will surpass New York as the third largest state in population.

Florida’s attractions make it one of the top tourist destinations in America and its weather will always be a selling point for retirees looking to escape cooler climes. As Jerry Seinfeld quipped, “my parents didn’t want to move to Florida, but they turned 60, and that’s the law.”

Silverman also points out there is no state tax for individuals and business structures in the state, making it attractive for entrepreneurial activity. Major changes to the Panama Canal – which will allow container ships to reach Florida in 2014 – will make the state a stopping point for distribution of imports to the Eastern Seaboard. Silverman also suggests major intermodal expansion is being planned for Central Florida.

The recovery in Florida is not happening uniformly across the state. As a top tourist destination, Orlando is starting to benefit from a recovery in tourism-related employment and expansions to Disney World’s Magic Kingdom Park, SeaWorld Orlando, and Universal Studios Florida.

Meanwhile, Miami is experiencing a turnaround in prices, thanks in large part to foreign investment. The Miami Association of Realtors reported a 34 per cent increase to $160,000 in median sales price of condominiums in Miami-Dade County in 2012 over the previous year.

According to Shalimar Santiago, CEO of Investors Adviser’s Network, the hottest market is currently central Florida, from Orlando to the Tampa region, with returns yielding on average 8–12 per cent.

“In the south Florida market returns are less, ranging from 6–10 per cent, but appreciation and prices are much greater. However, it depends on the investor’s appetite for risk and investment goals.”

According to Ellis, about 80 per cent of Canadians buying real estate in Florida are purchasing condos. “With this product, they can lock the door and walk away and not have to worry about the exterior maintenance. So that’s what most Canadians are buying.”

While single-family properties are more labour intensive, they are currently producing higher yields, argues Santiago.

Townhouses are also hot, says Muller, because they have lower monthly fees than condos but you can typically pick them up for around the same prices. Also, the rents tend to be higher and they attract more family-oriented renters than condos do.

She adds: “The areas we recommend our investors purchase in are many of the mid-upper middle class suburbs of Orlando such as Winter Garden, Windermere, Lake Nona and Lake Mary. Vacation rentals are also a very popular option right now for those not as concerned with the short-term return but are looking to win big on the capital gain over the long run.”

 

From Canadian Real Estate Wealth Magazinea monthly publication focused on building value through property investment, covering topics such as values and trends, mortgages, investment strategies, surveys of regional markets and general tips for buyers and sellers.

U.S. homeowners think it’s a good time to renovate

PALO ALTO, Calif. – April 1, 2013 – Significantly more U.S. homeowners are moving forward with renovation projects compared to this time last year, according to the second annual Houzz & Home survey.

A majority of the homeowners surveyed believe now is a good time to remodel (53 percent), and 58 percent of those planning projects in the next two years will hire professional help. The study also found that three-quarters of homeowners believe that now is a good time to buy a home.

Together with the recent U.S. Commerce Department report showing the rate of single-family home construction is at its highest level in four and a half years, the results of this study point to a strengthening economy, housing and renovation market.

The 2013 Houzz & Home survey garnered more than 100,000 responses from the Houzz community of 14 million monthly unique users. The study yielded detailed data at the national, regional and metropolitan area level.

The number of homeowners who say they will delay projects because of the economy has dropped to 45 percent from 52 percent last year, and homeowners are more likely to cut back in other areas, such as vacations and other big ticket purchases, rather than delay or decrease budgets for their home plans. While improving the look and feel of the space is still the key driver for recently completed projects (83 percent), the number of homeowners who remodeled to increase their home value has increased to 54 percent from 47 percent in 2012.

“We’ve collected an unprecedented volume of data from the community, and we are pleased to share the findings with everyone looking to renovate or decorate their home,” said Liza Hausman, vice president of community for Houzz.

Bathrooms and kitchens top America’s renovation project list again this year, with 28 percent of respondents planning a bathroom remodel or addition, and 23 percent planning a kitchen remodel or addition in the next two years.

In terms of dollars spent, kitchens command the lion’s share. Over the last five years, nearly four in ten home improvement dollars have gone into kitchens and survey data indicates future spending is likely to follow the same trend.

Over the last five years, homeowners on average spent $28,030 to remodel their kitchens; however spending varies widely at different budget levels. Homeowners spent an average of $54,942 nationwide for a high-end kitchen, $22,390 for a mid-range kitchen and $7,133 for a lower-budget kitchen.

The study also found that homeowners renovating at the higher-end were more likely to go over budget than those doing more modest renovations, though a significant number reported going over budget at all project levels. Fifty-six percent of those doing a high-end renovation, 42 percent of those who did a mid-range renovation and 31 percent of those whose renovation was lower budget also spent more than expected on their projects.

Other key U.S. findings

• Spending more time in a room does not necessarily correlate with decorating dollars. Homeowners report spending the most time in their family/TV rooms, but not the most money there.

• Nobody was willing to admit to spending significant time in their bathroom – but apparently the time we do spend there is worth significant investment. The percentage of money spent on kitchens and bathrooms far exceeds the percentage of time spent in these spaces.

• A majority of the homeowners surveyed who are planning to complete a project in the next two years will hire a general contractor (58 percent), and a third a kitchen/bath (36 percent) or carpet/flooring professional (34 percent). Twenty-three percent plan to hire architects and 22 percent interior designers.

• When it comes to hiring a professional for their project, 67 percent of homeowners surveyed rated a “personality I can work with” as a 5 (very important) on a 5-point scale.

• Thirty-four percent of U.S. homeowners cited making their home more energy efficient as a key driver for completing their most recent project.

The Houzz & Home Survey was emailed to registered users of the Houzz website between January and February 2013. Edge Research conducted the survey. To download the full report, go to the Houzz website.

Source: Houzz.com

© 2013 Florida Realtors®

 

FEMA officials prep for sticker shock

WASHINGTON – April 1, 2013 – Federal officials are encouraging homeowners in flood-prone communities to consider elevating their homes and increasing their deductibles to cut down on the sticker shock some homeowners have begun to experience as their flood insurance premiums increase.

Congress approved legislation last year designed to put the National Flood Insurance Program on firmer financial footing. The legislation gradually eliminates government-subsidized premiums for more than 1 million properties in flood-prone communities.

The insurance premiums for vacation and rental homes participating in the program increased 25 percent on Jan. 1. Those premiums will continue to go up each year until rates reach the level that the Federal Emergency Management Agency considers sufficient to cover flood claims and administrative costs for a flood in that particular community.

Properties that have suffered repetitive losses or substantial damage over the years will also be subject to gradual 25 percent rate increases beginning Oct. 1.

Meanwhile, in July, new property owners as well as owners who let their policies lapse will no longer be able to buy government-subsidized insurance.

Congress created the flood insurance program back in 1968 because few private insurers covered flood damage, leaving the federal government to cover the costs of disasters. Many of those covered by the program live where flood insurance is mandatory for those with mortgages from federally regulated lenders. The program was $18 billion in debt when Congress took action.

Officials with the Federal Emergency Management Agency (FEMA) held a conference call with reporters Friday to provide an update of the changes taking place.

“Our concern is that we get the word out to folks so they’re not surprised,” said Edward Connor, a deputy associate administrator at FEMA.

Connor encouraged property owners to work with their insurance agent to obtain an elevation certificate, which will verify the property’s distance from the ground. He said that increasing the elevation of a property by a foot can save hundreds of dollars per year in insurance costs.

He also said local communities can take steps to mitigate flood damage that could lead to discounts for property owners. Such steps typically include increasing the elevation of certain flood-prone properties or relocating them.

FEMA offers more flood insurance information on its website.
AP Logo Copyright © 2013 The Associated Press, Kevin Freking. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 

FHFA to crack down on insurance forced by lenders

WASHINGTON – April 1, 2013 – The Federal Housing Finance Agency (FHFA) that oversees government-owned Fannie Mae and Freddie Mac says there’s a problem with force-placed insurance policies that lenders issue in the name of a homeowner who has allowed his property insurance to lapse.

In the March 29, 2013, Federal Register (Vol. 78, No. 61), FHFA says premiums for force-placed insurance can be “double those for voluntary insurance and, in certain instances, significantly higher.” FHFA claims overpriced policies can impact Fannie and Freddie if they force a homeowner into foreclosure and “the expense is passed along to (Fannie Mae and Freddie Mac) for reimbursement.”

FHFA cites two general solutions for force-placed insurance in the Federal Register:

1. Ban lenders and loan servicers from “receiving, directly or indirectly” payments for placing coverage with an insurer or maintaining placement.

2. Ban lenders and loan servicers from receiving money from any reinsurer (a non-public insurer that covers private insurance companies) that is “owned by, affiliated with or controlled by the sellers or servicer.”

To read the complete rule proposal, check the Federal Register.

FHFA is accepting public comment on the new rules until May 28, 2013.

Specifically, FHFA says it wants to enhance “transparency and consumer and investor protections” on force-placed insurance. It also wants to find out if there is any downside to its proposals – any “data or information that would run contrary to the intended results sought by FHFA.”

FHFA will accept public input through its Office of Housing and Regulatory Policy (OHRP). Communications may be addressed to Federal Housing Finance Agency, OHRP, Constitution Center, 400 Seventh Street SW., Ninth Floor, Washington, DC 20024.

 

© 2013 Florida Realtors®

Real estate Q&A: Bankruptcy doesn’t stop foreclosure

FORT LAUDERDALE, Fla. – Oct. 15, 2012 – Question: I filed for bankruptcy over two years ago and included my primary and rental home loans in the bankruptcy. Even though the loans are not on my credit report, two recent foreclosures for those properties show up on the report. My finances are back on track, and my credit score is over 700, but I can’t get another home loan. I’ve been told I have to wait three more years until those foreclosure judgments disappear from my record. Is there anything that I can do? -Gina

Answer: Here’s what happened: When you filed for bankruptcy and were relieved of having to pay back the loans, the bankruptcy trustee abandoned the properties and allowed your lenders to finish the foreclosures. That’s standard procedure. When your lenders finally got the foreclosure judgments, the judgments showed up on your credit report much later than your initial bankruptcy.

The key here is that while the bankruptcy relieved you of the debt on your homes, it left you as the owner of the properties with the mortgage liens intact. In order for the banks to get their collateral back, they had to foreclose. The bankruptcy does not automatically transfer a house to the lender, even though it wipes away the responsibility of repaying the mortgage.

Most lenders have underwriting guidelines that require several years to go by after a major negative event such as a bankruptcy or foreclosure. You have two options: Wait out the remaining time, or search for a lender with less stringent underwriting rules that will most likely charge you a higher interest rate.

About the writer: Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He is the chairperson of the Real Estate Section of the Broward County Bar Association and is an adjunct professor for the Nova Southeastern University Paralegal Studies program. The information and materials in this column are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed. Nothing in this column is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.

Copyright © 2012 Sun Sentinel (Fort Lauderdale, Fla.), Gary M. Singer. Distributed by McClatchy-Tribune News Service.

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