Americans Are Feeling Wealthier, More Upbeat

June 17, 2016

Fannie Mae’s Home Purchase Sentiment Index zoomed to an all-time high in May as consumers get more upbeat about their paychecks and home selling. In May, the index reached a reading of 85.3, which follows an 18-month low reached in March.

Three of six components the index measures registered increases last month, led by a 7 percentage point increase in the number of consumers reporting significantly higher income than a year ago. Also, the number of consumers who expect home prices to increase over the next 12 months rose 5 percentage points. Consumers were also upbeat that mortgage rates would decrease over the next year as well.

That said, the index indicator on whether it’s a “good time to buy” dropped 1 percentage point to an all-time survey low in May.

“Continued home price appreciation has been squeezing housing affordability, driving a two-year downward trend in the share of consumers who think it’s a good time to buy a home,” says Doug Duncan, senior vice president and chief economist at Fannie Mae. “The current low mortgage rate environment has helped ease this pressure, and fewer than half of consumers expect rates to go up in the next year. While the May increase in income growth perceptions could provide further support to prospective home buyers as the spring/summer homebuying season gains momentum, the effect may be muted by May’s discouraging jobs report.”

Here’s a closer look at additional findings from Fannie Mae’s latest index reading:

  • 29 percent of Americans say now is a good time to buy a home, a drop of 1 percentage point from March and an all-time survey low for the second consecutive month.
  • 52 percent of consumers believe now is a good time to sell a home – an all-time survey high.
  • 42 percent of Americans believe that home prices will go up.
  • 72 percent of Americans say they are not concerned with losing their job, a drop of 2 percentage points from March.
  • 18 percent of Americans say their household income is significantly higher than it was a year ago, up 7 percentage points from March and at an all-time survey high.

Source: Fannie Mae


Fla.’s recent housing success

June 7, 2016

NEW YORK – June 6, 2016 – Clear Capital’s Home Data Index (HDI) Market Report releases recent and granular data each month. The HDI Market Report provides insights into housing price trends and other leading indices for the real estate market at the national and local levels.

Florida’s markets continue to recover from the devastating lows of the housing market crash, and an increase in baby boomers provides key insight into the market’s future, according to Clear Capital.

Survey results

  • Regionally, the West continues to dominate quarterly growth as it hovers around a 1.1 percent quarter-over-quarter price increase, though that’s a downtick of 0.1 percent from last month. Growth rates in the South remain unchanged at 0.7 percent quarter-to-quarter growth, while Northeast and Midwest regional growth continues to lag behind the rest of the nation at 0.1 percent.
  • Nationally, quarterly market performance remains fixed at 0.6 percent with no change month-to-month.
  • The Seattle and Tampa MSAs tied for the top spot on the Highest Performing Major Metro Markets for June, each reporting a quarter-to-quarter price increase of 2.0 percent.
  • Tampa isn’t the only Sunshine State metro area to make the high-performers list. It also includes Orlando (1.7 percent quarterly price growth), Jacksonville (1.7 percent quarterly price growth), and Miami (1.4 percent quarterly price growth).

The most recent quarterly growth figures for the Floridian markets fit into a longer-term pattern of growth and recovery for the state, according to Clear Capital, and each major MSA has “experienced incredible gains since the market lows of 2011, recovering at least 30 percent or more of the individual market value.”

Jacksonville and Orlando home prices have increased 33 percent and 44 percent respectively; Tampa and Miami home prices have skyrocketed by almost 56 percent and 57 percent, respectively.

The baby boomer influence

Clear Capital compared Census Bureau data on baby boomer moves to the price increase from its index, calling the growth in both an “interesting phenomenon that may be contributing to the stellar price growth in the region.”

The most recent data from the U.S. Census Bureau indicates that this segment of the market – homeowners aged 55 to 74 – has increased more than 2.5X the overall population of homeowners in each of the top four Florida markets since 2011. In Miami and Jacksonville, the increase in homeowners of this generation is more than 500 percent greater than the overall increase in the total population of homeowners.

“It’s evident that the baby boomer demand for housing in the (price growth metro areas) is a significant contributing factor in the market’s overall success,” the report concludes. “In Orlando, the trend is quite similar as the ratio of baby boomer homeownership growth to overall homeownership growth is over 400 percent.”

“Florida has traditionally been regarded as prime real estate by those retirees who may be looking to migrate from colder areas of the nation such as the Northeast to a warmer and sunnier alternative for their golden years,” says Alex Villacorta, Ph.D., vice president of research and analytics at Clear Capital.

“As the top Floridian housing markets continue to grow and return impressive price gains – Tampa is currently reporting 12.2 percent annual price growth – it’s no surprise that this generation continues to invest in real estate in the region,” he adds. “The baby boomer share of homeowners is clearly on the rise here, and as more and more of this generation nears retirement age, Florida markets may be in for a boost in performance if tradition continues and retirees demand homes in the region.”

© 2016 Florida Realtors®


Average rate on 30-year mortgage falls to 3.62%

February 26, 2016

WASHINGTON (AP) – Feb. 25, 2016 – Average long-term U.S. mortgage rates fell this week as anxiety over the global economy persisted. Long-term rates resumed their decline after being unchanged last week following six straight weeks of easing.

Mortgage buyer Freddie Mac said Thursday the average rate on a 30-year, fixed-rate mortgage slipped to 3.62 percent from 3.65 percent last week. That puts it well below the 3.80 percent it marked a year ago.

The average rate on 15-year fixed-rate mortgages declined to 2.93 percent from 2.95 percent last week.


Real estate again Americans’ top investment choice

July 30, 2015

NEW YORK – July 29, 2015 – For many Americans, last decade’s housing bubble is largely forgotten: 27 percent in a recent poll said real estate was the best investment for money they would not need for at least a decade, according to a new Bankrate.com survey of 1,000 investors.

That No. 1 ranking marks the first time real estate claimed the No. 1 spot in the three years that Bankrate has been conducting its research. Cash ranked tops with investors in 2013 and last year.

“It begs the questions if more Americans are once again viewing real estate as a golden ticket,” says Bankrate CFO Greg McBride.

“The singular and best reason to own real estate as an investment is to use leverage,” concluded Stephen Lovell, a certified financial planner in California. “Without it, your return on investment tends to be about 2 percent to 3 percent.”

Source: CNBC News (07/23/15) Anderson, Tom

© Copyright 2015 INFORMATION, INC. Bethesda, MD


Why Isn’t the Condo Market Rebounding?

July 24, 2015

NEW YORK – July 23, 2015 – While construction of single-family homes and multifamily rentals is on the rebound, condo construction sunk to new lows. Any rebound in the condo construction market has been delayed by stringent rules on condo mortgages that took effect post-housing crisis, and stronger demand among young people for rentals.

Condo construction in the first quarter comprised only 5.5 percent of all construction of multifamily housing – the lowest ratio since the Commerce Department began tracking the data in 1974. Historically, condo construction falls at a 24 percent average.

Condos traditionally offer higher returns for investors than apartments.

“Many developers would rather be building condominiums,” says Peter Bazeli, senior vice president at New York-based real estate consulting firm Weitzman Group. “With condos, you’re paying down debt with every closing and then putting money in your pocket right away.”

But many factors hamper the condo market’s recovery. For one, economists say young adults have been flocking to rentals instead, and condos typically cater to entry-level buyers. Also, construction loans limit the supply of condos built. Developers say they can get a construction loan for about 75 percent of the cost of building an apartment complex, but only about 50 percent for a condo complex because lenders deem it a higher risk.

The Federal Housing Administration (FHA) tightened its lending standards from 2008 to 2012, which has made condo funding even tougher, too. In order for the FHA to insure mortgages in a condo complex, at least half the units must be owner-occupied, and no more than half can be FHA-insured. For condo projects under development, at least 30 percent of units must be under contract for sale before the FHA will start backing mortgages.

Economists say those factors have kept the condo market sluggish and still far from recovery. The median condo resale price in May was $216,400, about $15,400 less than its pre-crisis peak in June 2005. On the other hand, the median resale price for single-family homes in May was $230,300 – only $600 less than its pre-crisis peak in July 2006.

But some developers see glimmers of a condo rebound forming.

“Rising apartment rents provide renters more reason to buy instead of renting,” the Journal reports. “Job growth is improving for young would-be buyers. And real estate lobbyists say they are making inroads in Washington to build support for easing the FHA restrictions on condo mortgages.”

Source: “Condos Left Behind in Housing Rebound,” The Wall Street Journal (July 21, 2015)

© Copyright 2015 INFORMATION, INC. Bethesda, MD (301) 215-4688


Celebration Real Estate Sales Totals for June 2015

July 8, 2015
Imagination Realty is pleased to provide the Celebration Real Estate Sales Totals for June 2015.

Please click the two links below to review the SOLD/CLOSED Single Family and Multifamily (condos, townhouses, villas) properties in Celebration as reported on the MLS.

Click the link below to see details of the 19 Single Family homes reported as SOLD/CLOSED.

http://mfr.mlsmatrix.com/Matrix/Public/Portal.aspx?k=3658417X8M08&p=DE-46503724-23

Click the link below to see details of the 17 Multi Family homes reported as SOLD/CLOSED.

http://mfr.mlsmatrix.com/Matrix/Public/Portal.aspx?k=3658417X8M08&p=DE-46503498-484

Looking Back – MLS Closed Statistics……..

June 2014: 10 Single Family – 12 Multi Family
July 2014: 10 Single Family – 16 Multi Family
August 2014: 14 Single Family – 12 Multi Family
September 2014: 16 Single Family – 20 Multi Family
October 2014: 14 Single Family – 9 Multi Family
November 2014: 14 Single Family – 22 Multi Family
December 2014: 12 Single Family – 17 Multi Family
January 2015: 3 Single Family – 15 Multi Family
February 2015: 12 Single Family – 5 Multi Family
March 2015: 14 Single Family – 9 Multi Family
April 2015: 22 Single Family – 8 Multi Family
May 2015: 14 Single Family – 15 Multi Family
June 2015: 19 Single Family – 17 Multi Family

If you would like us to research other parameters (time periods, specific price ranges, other areas),
please call or email Kathy Carlson at:
Kathy@ImaginationRealty.net
Courtesy of Imagination Realty
617 Celebration Ave
Direct # 407-361-7653

Visit us on our website at http://www.imaginationrealty.net/


SPRING FORWARD

March 8, 2014

Spring Forward 2