GreyHawk Landing by Homes by Towne

New Homes For Sale in Bradenton, Florida - GreyHawk Landing by Homes by Towne.

Greyhawk Landing is a delightful, upscale, family friendly neighborhood. This guard-gated community offers exceptional home designs surrounded by pristine lakes, natural preserves, and beautiful wildlife. Extraordinary recreational features abound at Greyhawk Landing such as their enormous lagoon-style pool with water slides, waterfalls and spa.

Your kids will love the playground and it’s many activities. Get your daily workouts in at the fitness center or on the tennis and basketball courts. Enjoy peaceful, walks; runs or bike rides along nearly 2 miles of nature trails. The fishing pier, soccer and baseball fields complete the family experience.

Homes by Towne have models available with a variety of options for you to consider.

Sarasota Makes Top Ten in America's Most Exciting Cities

Sarasota placed in the top ten for America's most exciting cities, with its live music and nightlife where it placed first overall, and active life options being another standout at seventh overall, helped in no small way by its numerous beaches. While its ninth place finish in non-fast food eateries was thanks to its eclectic and individual restaurants, especially in the downtown area.

Florida Will Lead Emergence From Great Recession

News that the economy was growing at a surprisingly robust pace when some were still questioning the basic strengths of a recovery has economists who closely track Florida convinced that the state will lead the emergence from the Great Recession.

More encouraging state and local unemployment figures — and a growing national itch for retirees to again move to the Sunshine State in large numbers — seem to support their contention.

On Friday, the federal government revealed a revised national economic growth rate for the third quarter of 4.1 percent, the strongest in nearly two years.

That came as state government reported that the jobless rate in Manatee, Sarasota and Charlotte counties eased again in November, dropping to 6.2 percent. That marked the lowest reading since the start of the deep economic downturn.

Meanwhile, a strong stock market and recovering home prices in the North provide ideal elements for a rebound: in-migration leading to gains in housing and commercial construction, and a spinoff effect for professionals selling everything from insurance to furniture.

Source: Sarasota Herald-Tribune (December 20, 2013)

Florida to Outperform U.S. in 2014

Florida became the third most populous state in the United States in 2013, bumping New York from its long-standing status and positioning the state for increased economic gains in 2014. According to a report released by TD Economics, an affiliate of TD Bank, strong population growth, income growth and reflation in household wealth will drive the Sunshine State to outperform the nation by a considerable margin in 2014 and 2015.

“Florida experienced a watershed year in 2013,” says Beata Caranci, TD Economics deputy chief economist. “After lagging for six years, its economic expansion allowed the state to reclaim its place of being a national outperformer, alongside a population that is estimated to have swelled to the third largest in the nation, second only to California and Texas.”

TD Economics estimates that Florida’s population will stand 20 million strong next year, an important fundamental for the state’s long-term economic outlook thanks to continued strength in consumer spending and housing demand.

The expansion is on track to hit 2.4 percent in 2013 before accelerating to 3.5 percent in 2014 and 4 percent in 2015. That would outstrip the national pace of 1.8 percent, 2.7 percent and 3.1 percent for those three years, respectively. TD Economics expects the housing, retail, tourism, and professional and business service sectors to fuel the state’s growth over the next two years.

Read more at Florida Realtors®

Sarasota Single Family Home Median Prices Up 20.6%

Median sale prices for single family homes sold in Sarasota County in November 2013 were up 20.6 percent over last November, a clear sign that recent price appreciation in the single family home market is continuing unabated. Single family home prices were at $187,000 this November compared to only $155,000 last November. The median sale price for single family for the 12 month period ending Nov. 30, 2013 was $181,700, up 23 percent over last year at this time ($147,000). Comparing November to October, prices were up slightly for single family from $185,776 last month.

Condo prices were slightly down this November compared to last year at this time - $157,750 compared to $160,000 in November 2012. But the 12-month rolling median, which moderates monthly swings, for condos was $163,000, up 10.1 percent over last year at this time. Condo prices were down 10.9 percent from October's figure of $175,000.

Total property sales in Sarasota County continued to moderate in November 2013. Overall property sales stood at 760 (531 single family homes and 229 condos), compared to 818 in October 2013 (582 and 236, respectively). In November 2012, 552 single family homes and 278 condos were sold.

"The November 2013 statistics indicate that the local market has leveled off at a high sales rate," said SAR President Roger Piro. "Word of mouth continues to indicate strong attendance at open houses, and we seem to be experiencing the traditional increase in seasonal residents and visitors. Judging from past trends, we should anticipate a busy market in the mid-winter and early spring months."

The declining inventory trend appears to have reversed, as there are now 4,288 properties on the market, up from 4,032 last month. Last November, the inventory stood at 4,188 total properties on the market.

Overall, November 2013 pending sales (properties that went under contract during the month) were at 758, down 7.7 percent from the October pending sales of 820. Last November, pending sales stood at 815 total.

"Despite some of the moderating numbers we are seeing, I am still confident in our current market dynamics and Sarasota County's future real estate direction," said Piro. "I consider this period a lull following dynamic growth in sales and prices for almost the entire year of 2013. Once we get into early 2014, I wouldn't be surprised if this market expanded once again."

The November 2013 months of inventory in Sarasota County stood at 5.4 months for single family and 6.1 months for condos. A figure of 6 months is considered a balanced market between buyers and sellers. Months of inventory represents the time it would take to deplete the current inventory at the current sales rate. Last November there were 4.8 months of inventory for single family homes and 5.4 months of inventory for condos. In October 2013, the figures were 4.8 and 5.5, respectively.

Currently, 567 properties listed for sale in Sarasota County in the MLS are short sales or foreclosures, compared to 596 properties in October. This represents 13.2 percent of available properties, down slightly from last month's figure of 14.1 percent, due in part to the rise in inventory. Last November, the figure was 15.7 percent.

Sales of distressed properties represented 29.3 percent of the overall sales in November 2013, up from the October 2013 figure of 25.5 percent. In November 2012, the figure was 27.7 percent.

Click HERE for the complete press release in PDF format, plus three pages of statistical charts.

Source: Sarasota Association of REALTORS®

U.S. Home Construction Hits Highest Pace in 5 Years

U.S. builders broke ground on homes at the fastest pace in more than five years, strong evidence that the housing recovery is accelerating despite higher mortgage rates.

The Commerce Department said Wednesday that developers began construction on houses and apartments in November at a seasonally adjusted annual rate of 1.09 million. That’s 23 percent more than October’s pace of 889,000 and the fastest since February 2008, just a few months after the recession began.

Construction of single-family homes jumped 21 percent to an annual pace of 727,000, also the highest in more than five years. Apartment construction soared 26 percent to a 354,000 annual pace.

Permits for future building slipped 3 percent to just over 1 million, down from 1.04 million in October. The drop reflected a decline in apartments, which can be volatile. Permits for single-family homes rose.

“Evidently, builders in the field are genuinely confident about the outlook for sales of new single-family houses, despite the rise in mortgage rates,” said Pierre Ellis, an economist at Decision Economics.

The housing market has been improving steadily since early last year, but construction had leveled off this summer after first reaching a 1 million annual pace in March. Last month’s surge comes as mortgage rates remain about a percentage point higher than they were in the spring. That suggests home building will boost economic growth in the final three months of the year.

The average rate on a 30-year mortgage fell to 4.42 percent last week. That’s down from a peak of 4.6 percent in August.

Rates jumped by more than a full percentage point after Federal Reserve Chairman Ben Bernanke first suggested in May that the Fed would pull back on its $85 billion bond-buying program before the end of the year. The Fed concludes a two-day meeting Wednesday, but most economists expect it won’t start reducing its purchases until January or March.

Home construction soared in the Midwest and South, while it fell in the Northeast and rose modestly in the West.

The surge comes as homebuilders are more confident. The National Association of Home Builders/Wells Fargo builder sentiment index, released Tuesday, matched an eight-year high first reached in August.

Though new homes represent only a fraction of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to NAHB statistics.

Copyright © 2013 The Associated Press

Home Builders End the Year More Upbeat

Home builders are getting more optimistic over the single-family home market, specifically over current sales conditions, sales expectations, and prospective buyer traffic, according to the December reading of the National Association of Home Builders/Wells Fargo Housing Market Index.

"Following a two-month pause in the index, this uptick is due in part to release of the pent-up demand caused by the uncertainty generated by the October government shutdown,” says David Crowe, the NAHB’s chief economist. “We continue to look for a gradual improvement in the housing recovery in the year ahead."

The overall index rose four points in December to a 58 reading. Any number above 50 indicates that more builders view conditions as good than poor.

"This is definitely an encouraging sign as we move into 2014," says Chairman Rick Judson, NAHB chairman. "The HMI is up 11 points since December of 2012 and has been above 50 for the past seven months. This indicates that an increasing number of builders have a positive view on where the industry is going."

The builder sentiment gauge measuring sales conditions increased six points in December to 64, and the gauge measuring future sales ticked up two points to 62. Builder sentiment over prospective buyer traffic increased three points to 44.

Source: National Association of Home Builders

Blackstone Becomes Lender to Smaller Investors

Blackstone Group, a giant investor in the single-family rental home market, is introducing a new lending platform to offer cash to smaller investors who also want to jump into the rental market.

Blackstone Group has invested nearly $7 billion in rental properties through its Invitation Homes unit in recent years, and it sees an opportunity in now helping smaller investors break into the single-family rental market, too.

"The market for financing for small and medium-sized borrowers in the single-family rental space is underserved — they don't have access to good capital now," John Beacham, president of Blackstone's B2R, a buy-to-rent lending platform, told CNBC.

Blackstone is originating loans of $500,000 to $50 million to small and mid-size investors who want to purchase a minimum of five single-family rental properties. Each home they purchase must be valued at $50,000 or more, and borrowers must have a 25 percent to 30 percent stake in each of the homes.

"We underwrite our loans on a very conservative basis ... like a commercial real estate loan," Beacham says. "We confirm the lease and the rent on the lease. We think that by underwriting this like a multifamily building, on pools of houses with more sophisticated borrowers, we have a pretty conservative loan product."

Source: “Looking to play the rental market? Blackstone wants you,” CNBC (Dec. 16, 2013)

Growth in Home Prices Will Slow by Half in 2014

Economists are predicting housing prices to continue to rise next year — but only at about half the rate that they did in 2013, Money Magazine reports.

However, “for a sustainable recovery, you want to see more balance between buyers and sellers,” says David Stiff, chief economist at CoreLogic Case-Shiller.

Home sales will likely see modest growth next year, says Lawrence Yun, chief economist at the National Association of REALTORS® . Strict underwriting practices by lenders, rising interest rates, and tight inventories in many markets will moderate sales growth. NAR has predicted home sales of about 5.12 million for 2014, which is close to the same level forecasted for 2013.

Meanwhile, inventory levels are expected to see some improvement in 2014. In September, they rose 1.8 percent compared to a year earlier, according to NAR data. That marked the first increase in inventory levels since late 2011.

Still, expect 2014 to continue to be a seller’s market while inventory levels remain tight, analysts say.

Fewer distressed homes on the market also will likely mean investors will take a step back, leaving more room for home buyers to step in. Investors’ share of residential home purchases dropped from 23 percent earlier this year to 17 percent in September, according to the Campbell/Inside Mortgage Finance HousingPulse Tracking survey.

But buyers will likely be greeted by higher mortgage rates. The 30-year fixed-rate mortgage is expected to increase from a 4.5 percent average to more than 5 percent in the new year.

Also, buyers will still face tight underwriting standards. While real estate professionals are reporting that qualifying for a loan is getting easier, the speed of processing the loan has not improved. Virginia real estate professional Rob Wittman told Money Magazine that buyers might want to consider using local lenders with ties to nearby appraisers for faster closings.

And sellers shouldn’t underestimate buyers in the new year, either.

"Buyers are smart these days — they know where the market is and know that rates are higher. They aren't going to bite on a list price above recent comparables," says Sara Fischer, an agent with San Diego-based Redfin.

Source: “Real estate: Look for value in 2014,” Money Magazine (December 2013) and “NAR: Price Gains, Not Sales, to Drive Housing Growth,” REALTOR® Magazine Daily News (November 2013)

More Homes Back Into Positive Equity

CoreLogic released its third quarter 2013 analysis, and it finds that about 791,000 more residential U.S. properties returned to a state of positive equity and are no longer underwater.

However, nearly 6.4 million homes – 13 percent of all residential properties with a mortgage – were still in negative equity at the end of the third quarter. Still, that number is down from 7.2 million homes – 14.7 percent of all residential properties with a mortgage – at the end of the second quarter of 2013.

In a state-by-state comparison, Florida ranked second in percentage of underwater mortgages with 28.8 percent. Nevada had the highest percentage of mortgaged properties in negative equity at 32.2 percent, followed by Arizona (22.5 percent), Ohio (18.0 percent) and Georgia (17.8 percent). The top five states accounted for 36.4 percent of negative equity in the U.S.

Florida also ranked high in a city-by-city breakdown of underwater mortgages. Of the largest 25 metropolitan areas, Orlando-Kissimmee-Sanford, Fla., had the highest percentage of mortgaged properties in negative equity at 32.3 percent, followed by Tampa-St. Petersburg-Clearwater, Fla. (30.1 percent). The last three metro areas in the top five include Phoenix-Mesa-Scottsdale, Ariz. (23.2 percent), Riverside-San Bernardino-Ontario, Calif. (20.8 percent) and Chicago-Naperville-Arlington Heights, Ill. (20.5 percent).

Negative equity, often referred to as “underwater” or “upside down,” means that borrowers owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in value, an increase in mortgage debt or a combination of both.

Of 42.6 million residential U.S. properties with positive equity, 10 million have less than 20 percent. Borrowers with less than 20 percent, referred to as “under-equitied,” may have a more difficult time obtaining new financing for their homes due to underwriting constraints. Under-equitied mortgages accounted for 20.4 percent of all residential properties with a mortgage nationwide in the third quarter of 2013, with more than 1.5 million residential properties at less than 5 percent equity, referred to as near-negative equity. Properties with near-negative equity are considered at risk should home prices fall.

“Negative equity will decline even further in the coming quarters as the housing market continues to improve,” says Mark Fleming, chief economist for CoreLogic.

© 2013 Florida Realtors®

Benderson Park Continues Transformation

As Nathan Benderson Park readies to become a world-class venue, officials are also working to make it fit for people at home.

Construction on the west side of the park — and its five “pocket parks” — is ongoing.

The original plan for this now-closed portion of the park, dubbed phase two of the overall project, calls for separate ornamental, water and butterfly gardens, a playground and a fitness center.

Carolyn Brown, director of Sarasota’s Parks and Recreation department, says the west side of the park will be ready for public use in the spring.

Other amenities, such as running paths around the lake, picnic areas and a “bird island” observational area, should be ready at that time, as well.

“Nathan Benderson Park will be an amazing, world-class place,” Brown said. “It’s an evolving, ever-changing plan that will continue to morph to meet the needs of these competitions. But, we want to make the park attractive for all types of recreational activities, as well.”

Read more at East County Observer (December 11, 2013)

Lindvest Hopes to Build Village in Eastern Sarasota County

When the Villages of Lakewood Ranch South project eventually gets off the ground in Sarasota County, it could have neighbors.

Canadian developers are seeking to build a village of their own, dubbed the Lindvest Fruitville project, at Fruitville Road and Dog Kennel Road in eastern Sarasota. The development would be situated just south of Schroeder-Manatee Ranch Inc.'s Villages, which are slated to include more than 5,000 homes on about 5,500 acres south of University Parkway and east of Interstate 75.

The Lindvest Fruitville project is much smaller, with plans calling for 900 units on about 450 acres. If approved, it could pop up as early as 2014.

Its developer, Toronto-based Lindvest, is seeking a rezone from Sarasota County for its project to be considered a "village," according to Sarasota 2050, a 50-year plan aimed at shaping future growth and development in the county.

Lindvest Fruitville's developers say their project encourages smart growth because it is adjacent to the county's major employment center on Sarasota Center Boulevard and is in proximity to existing roads and services, allowing people to live near where they work and shop. Their project "provides new housing options for this part of the county" and includes a minimum of 33 percent open space, according to its pre-application to the county.

Source: Bradenton Herald (December 12, 2013)

It’s (almost) Official – Foreclosure Crisis is 'Over'

RealtyTrac’s Foreclosure Market Report for November shows foreclosure filings – all default notices, scheduled auctions and bank repossessions – decreased 15 percent from the previous month and 37 percent year-to-year.

The 15 percent monthly decrease in November was the biggest month-over-month decrease since November 2010 when U.S. foreclosure activity plummeted 21 percent in one month following the revelation of the so-called robo-signing scandal in October 2010.

While the drop reflects all homes somewhere within the foreclosure process, a decline in the number of homes receiving their first foreclosure notice reflects a stronger improvement. A total of 52,826 U.S. properties started the foreclosure process for the first time in November, down 10 percent from the previous month and 32 percent from a year ago, hitting its lowest level since December 2005.

In Florida, the percentage drop in owners receiving a first-time foreclosure notice was also dramatic. The state had 6,744 foreclosure starts in November, an 18.02 percent decline month-to-month and a 45.9 percent drop year-to-year.

The number of Florida foreclosure completions – the final step where a lender takes back the home – also dropped in November, though not as dramatically. Completed state foreclosures were down 2.72 percent month-to-month and 15.59 percent year-to-year.

Florida foreclosure activity in November – starts, in progress and completions – decreased 15 percent from the previous month and 23 percent from a year ago for the fourth consecutive month with an annual decrease. However, the state still has the nation’s highest state foreclosure rate: one in every 392 housing units with a foreclosure filing.

Read more at Florida Realtors®

Trulia Optimistic for 2014

Trulia, Inc. last week published its look back at the U.S. housing market’s uneven recovery in 2013. It finds a housing market moving back to its pre-bubble 'normal' level from the worst of the recession.

Throughout 2013, the housing recovery has progressed on most fronts but remains unbalanced, according to Trulia’s analysis. Of the five key indicators that Trulia now follows, three are on track towards a full recovery: Non-distressed home sales and prices are approaching normal levels and could reach them in 2014; and the delinquency plus foreclosure rate also improved significantly. But construction starts and young-adult employment remain closer to recession levels than to 'normal'.

Key housing market indicators

• Existing home sales, excluding distressed (NAR): The market was operating at 79% of 'normal' in 2013 compared to 51% at the end of 2012
• Home price level (Trulia): 71% of normal in 2013 compared to 16% at the end of 2012
• Delinquency plus foreclosure rate (LPS): 59% of normal in 2013 compared to 37% at the end of 2012
• New home starts (Census): 36% of normal in 2013 compared to 24% at the end of 2012 
• Employment rate, 25-34 year-olds (BLS): 23% of normal in 2013 compared to 28% at the end of 2012

Among the 100 largest U.S. metros, 10 housing markets are back to normal or nearly there, relative to local norms for both home prices and permits. However, most are in Texas and California – none are in Florida, which points towards room for further growth in the sunshine state.

Read Trulia's five housing predictions for 2014 at Florida Realtors®

Obama Scorecard Shows Housing Making Gains

The Obama administration’s Housing Scorecard for November showed an improving housing market, with home prices remaining strong and foreclosures falling. But the administration cautions in the report that the recovery remains “fragile.”

Economic and job growth and rising home prices “have helped to reduce foreclosure starts to levels not seen since 2005,” says Kurt Usowski, the U.S. Department of Housing and Urban Development’s deputy assistant secretary for economic affairs.

“And although the number of home owners 'underwater' ... is down more than 40 percent from its peak, the number remains historically elevated, meaning more work needs to be done to ensure the continued stability of the housing market.”

The scorecard reviews housing data to gauge the health of the housing market.

Existing-home sales dropped in November, but remained strong over last year’s numbers (426,700 in November 2013 compared to 402,500 in November 2012), according to National Association of REALTORS® data.

New-home sales also posted year-over-year gains: 37,000 in October 2013, up from 30,400 in October 2012, according to U.S. Census and HUD data.

Inventory levels of existing homes inched up slightly in November to a 5-month supply compared to a 4.9-month supply in October, NAR reports. But inventory levels are down from a 5.2-month supply last year.

The inventory of new homes for sale took a big fall, to a 4.9-month supply in November compared to a 6.4-month supply in October, the Census bureau and HUD report.

“Although the housing market has largely recovered, there are still home owners struggling, and it is key that we continue to help them,” says Treasury Deputy Assistant Secretary Tim Bowler.

The government’s foreclosure mitigation programs are providing some relief to struggling home owners. For example, more than 1.8 million home owner assistance actions have taken place through the Making Home Affordable Program. Home owners who have taken part through the government’s Home Affordable Modification Program have saved on average about $547 monthly on their mortgage payments — nearly a 40 percent savings from their previous payment.

View the full Housing Scorecard at www.hud.gov/scorecard.

Source: U.S. Housing and Urban Development

Smaller Lenders Increasing Their Share of Mortgage Market

Rising mortgage rates and tighter underwriting standards are prompting some borrowers to seek smaller lenders for a mortgage.

Smaller banks and non-bank lenders’ share of the mortgage market is increasing, rising to 60 percent in the third quarter compared to 39 percent in 2009, according to data from Inside Mortgage Finance.

Meanwhile, larger lenders have gradually pulled back on their lending: Only five of the top 20 single-family mortgage originators in 2006 remain active in today’s market, according to Fannie Mae.

"If you're buying a house, our advice is to find a local lender that's reputable," Eric Egenhoefer, president of Waterstone Mortgage, a subsidiary of Milwaukee-based WaterStone Bank, told CNBC. "An independent company in general is more nimble, can get to a closing faster, and provides better service."

Customers may not find the lowest mortgage rates at smaller banks, but some say it's easier to get in touch with a loan officer, and they provide better service.

Even larger lenders are taking note of the shift. Wells Fargo, the nation’s largest lender, has overhauled its Web site to give consumers a “smaller-bank” feel.

"The lending space for Wells Fargo mortgage feels much more like a local community bank than a giant bank with a call center," Franklin Codel, head of Wells Fargo's mortgage production, told CNBC. "Most consumers are looking for a personal relationship with someone who can help them through the process, and not just looking for the lowest rate if it doesn't come with a reasonable amount of service."

Source: “Rising mortgage rates a boon to smaller lenders,” CNBC (Dec. 6, 2013)

Housing Confidence Grows in South (and West)

States in the South and West are expected to see the highest price gains in the next 12 months of about 4 to 8 percent, according to the REALTORS® Confidence Index Survey, a survey of about 3,000 REALTORS®. Tight inventory conditions persist in these areas, driving up home prices.

Nationally, REALTORS® expect prices to move up by about 4 percent in the next 12 months, according to the latest survey, based on data gathered in November.

The highest price growth in the next year is projected for California, Nevada, Utah, Arizona, Texas, Louisiana, Florida, Georgia, and South Carolina. Other states outside of the region that also are expected to see some of the larger price jumps include North Dakota, Minnesota, Michigan, and Massachusetts.

Source: “Expected Price Growth Strongest in West and South Markets,” National Association of REALTORS®’ Economists Outlook (Dec. 9, 2013)

Market at 86% of 'Normal': NAHB Index

Markets in 54 out of approximately 350 metro areas nationwide returned to, or exceeded, their last normal levels of economic and housing activity, according to the National Association of Home Builders (NAHB)/First American Leading Markets Index (LMI), released today. Smaller metros accounted for most of the markets operating at or above normal levels, with almost half of them located in states with energy industries.

The index’s nationwide score of .86 indicates that, based on current permits, prices and employment data, the nationwide market is running at 86 percent of its normal economic and housing activity.

In a look at just housing markets, the LMI for November found that 55 were operating at or above their last normal levels, and the nationwide market was operating at 85 percent of normal growth.

“The fact that more than 125 markets on this month’s LMI are showing activity levels of at least 90 percent of previous norms bodes well for a continuing housing recovery in 2014,” says Kurt Pfotenhauer, vice chairman of First American Title Insurance Co., which co-sponsors the LMI report.

Baton Rouge, La., tops the list of major metros on the LMI, with a score of 1.42 - or 42 percent better than its last normal market level. Other major metros at the top of the list include Honolulu, Oklahoma City, Austin and Houston, Texas, as well as Pittsburgh.

The LMI is a new index for NAHB. It replaces the Improving Markets Index.

To calculate the index, more than 350 metro areas are scored based on their average permit, price and employment levels for the past 12 months, divided by their annual average over the last period of normal growth.

For single-family permits and home prices, 2000-2003 is used as the last normal period. For employment, 2007 is the base comparison. The three components are then averaged to provide an overall score for each market. A national score is calculated based on national measures of the three metrics.

An index value above one indicates that a market has advanced beyond its previous normal level of economic activity.

© 2013 Florida Realtors®

New Home Sales Rise Sharply in October

Sales of newly built, single-family homes rose 25.4 percent to a seasonally adjusted annual rate of 444,000 units in October, according to data released today by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

The government also reported that new-home sales fell 6.6 percent in September. The release of both the September and October report were delayed by the partial government shutdown in early October.

“The October sales numbers show that there is clearly a demand for new housing and the recovery remains on track,” said Rick Judson, chairman of the National Association of Home Builders (NAHB) and a home builder from Charlotte, N.C. “However, the recovery continues to be slowed by political uncertainty in Washington and ongoing constraints builders face with regard to tight credit conditions for consumers and the availability of labor, lots and materials.”

“The strong October results return us to the sales levels we saw earlier this year and negate the pause caused by the sudden jump in interest rates,” said NAHB Chief Economist David Crowe. “We expect sales to continue to rise as pent up demand is released and first-time home buyers creep back into the market.”

All four regions posted double-digit sales gains in October. Sales rose 19.2 percent in the Northeast, 34 percent in the Midwest, 28.2 percent in the South and 15.2 percent in the West.

The months’ supply of new homes fell to 4.9 due to the quicker sales pace in October, and the inventory of new homes for sales also edged down to 183,000 units.

© 2013 National Association of Home Builders

US Home Prices Post Moderate Gains; Florida Above Average

A measure of U.S. home prices rose only modestly in October, adding to signs that prices have stabilized after big gains earlier this year

Real estate data provider CoreLogic said Tuesday that prices increased 0.2 percent in October from September. That’s up from a 0.1 percent gain in September. But it is down sharply from a 0.9 percent increase in August.

One reason for the slowdown is that the figures aren’t adjusted for seasonal patterns. Prices usually decline in the fall and winter, when sales slow.

Still, big gains in previous months, along with higher mortgage rates, may be pricing some buyers out of the market.

Home prices have risen 12.5 percent from a year ago. The increase could encourage more sellers to put their homes on the market, easing a shortage of homes for sale.

Only 1.88 million homes were for sale at the end of October, down 2.1 percent from the previous month and the fewest since March.

The shortage of inventory has slowed sales. Home re-sales fell in October for a second straight month to a seasonally adjusted annual pace of 5.12 million, the lowest since June, according to the National Association of Realtors. That pace is still 6 percent higher than it was a year earlier. But it’s below the roughly 5.5 million sold each year in healthier markets.

Some sales were delayed in October due to the 16-day partial government shutdown, the Realtors’ group said. The shutdown prevented the IRS from verifying incomes, a critical part of the mortgage-approval process. Those sales may have been pushed into November or December.

But a measure of signed contracts to buy homes fell for a fifth straight month in October. That points to weaker final sales in the coming months. Final sales typically occur one to two months after contracts are signed.

According to CoreLogic, prices rose in October from the previous year in all states except New Mexico. The biggest gains were in Nevada (25.9 percent), California (22.4 percent), Georgia (14.2 percent), Michigan (14.1 percent) and Arizona (14 percent).

Ninety-six of the 100 largest metro areas reported price gains from the previous year. That’s down from September, when all 100 cities reported gains.

The biggest increase was in Riverside, Calif., with 24.1 percent, followed by Los Angeles (22.1 percent), Atlanta (16.4 percent), Phoenix (15.9 percent) and Chicago (12.3 percent).

Home prices are still about 17 percent below the peak reached in April 2006, according to CoreLogic.

Copyright © 2013 The Associated Press

How Much Do You Need to Earn to Afford to Buy a Home?

The necessary income it takes to buy a median-priced home varies quite a bit across the country. In Cleveland, you could earn $22,000 a year and still afford a house, but in San Francisco, you need to earn six times that — $125,072.

HSH Associates, a publisher of mortgage data, evaluated 25 major metros to see how much income home buyers need to earn in order to purchase a median-priced home and cover the principal and interest payment on the mortgage. The survey uses median home price data from the National Association of REALTORS®’ third-quarter report, and subtracts a 20 percent down payment from those numbers. The list does not factor in taxes, mandatory insurance, or home owner fees.

Here are some of the cities where you would need to earn the least amount in order to purchase a median-priced home there:

• Cleveland: $22,348
• Cincinnati: $25,151
• St. Louis: $25,228
• Atlanta: $26,863
• Tampa: $26,930
• Orlando: $29,631

Here are some of the cities that require the highest salaries to afford a median-priced home:

• San Francisco: $125,072
• San Diego: $85,843
• Los Angeles: $79,177
• New York City: $71,255
• Boston: $68,956
• Washington, D.C.: $68,345

Source: “The Salary You Must Earn to Buy a Home in 25 Cities,” HSH.com (November 2013)

Condo Sales and Prices on the Rise in Manatee and Sarasota Counties

Cheap condos in Manatee and Sarasota counties are getting harder to find.

Year-end incentives from homebuilders and demand from Canadian buyers are pushing area condo sales up to 21 percent higher than the same time last year, according to Multiple Listing Service data for Manatee County.

It's great news for sellers, but the surge is cutting into the choices buyers have as the residential real estate season heads into the prime winter months. It's also giving sellers good reason to increase prices.

As of the end of October, Manatee County had 756 condos and townhomes on the market, according to statistics compiled by Florida Realtors Association from multiple listing data. That's roughly a third as many on the market four years ago.

The relative scarcity hasn't kicked off a building boom. But area real estate professionals do agree that it's getting more difficult to find condos in the $150,000-and-under range.

Source: Manatee County's condo sales and prices are on the rise, Bradenton Herald (Dec 2, 2013)

Foreclosed Owners Getting a Second Chance

Those who lost their home due to financial hardships may get another shot at being home owners again soon. The Federal Housing Administration recently announced that they would shorten the waiting period for qualified borrowers who’ve had a bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale who want to buy a home again. Under the FHA's Back-to-Work program, home owners must show that they have their finances back in order and they must receive counseling from a HUD-approved agency. Those who meet the requirements can apply to buy a property in as little as a year.

“The Back to Work program is a great opportunity for us to help those impacted by the recent housing crisis,” Heather Shanahan, a representative with a HUD-approved housing counseling agency called Springboard, told HousingWire. "Our goal in our counseling sessions is to enable the borrower to better understand their loan options and the obligations.”

Counselors provide borrowers with a customized action plan that reflects household budgets and shows borrowers how they can meet their financial obligations to prevent default again in the future.

The Back-to-Work program is also helping borrowers purchase their first homes, in some cases.

Source: “Springboard helps formerly distressed borrowers get back on track,” HousingWire (Nov. 19, 2013)

University Place: Family-Friendly Neighborhood

University Place is a sprawling, clean community full of families and dog-walkers. It's quiet and peaceful except for the laughter of young children coming off the school bus in the afternoon. Moms chat at the gate while waiting for their kids.

It is definitely a family-friendly neighborhood with lots of young families with kids and good schools nearby.

The neighborhood is social where mostly everyone knows their neighbors. You invite them over for a barbecue on the weekend. Your kids play with their kids after school.

Homes for sale in University Place

Most residents don't have pools, but there are two large community pools on property: One for the kids with a mini water park; one for the adults -- no floats or toys allowed.

The pools are a reason to get together. There's a happy hour every month and several big events throughout the year. At the moment, the social committee is putting the finishing touches on Winterfest, a neighborhood Christmas party by the pool with a pot luck lunch and live music. Nearly 200 people are expected to attend.

There's a fitness center and a nature trail that recently underwent a $20,000 renovation. The subtle whirring of cars cruising down the interstate can be heard from the winding trail made of crushed shell and sand.

Read more at Bradenton Herald

U.S. Property Tax Comparisons

Property taxes are an important source of revenue for city governments, but rates can vary substantially across the country.

Property taxes make up about one quarter of home ownership costs over the median duration of ownership, according to a study by two researchers with the Urban-Brookings Tax Policy Center.

The study’s authors—Benjamin H. Harris, policy director of the Hamilton Project, and Brian David Moore, a research assistant at the Urban-Brookings Tax Policy Center—note that several counties and states have tried to decrease the burden through homestead exemptions and other laws.

But property taxes tend to make up a big part of local revenues. Indeed, property taxes comprise 34.6 percent of total local revenues, and nearly 64 percent of local own-source revenue, the researchers note.

Nationwide, 60 percent of counties in the country had an average tax burden between $500 and $1,500 per home owner. Home owners in about 13 percent of counties paid less on average, and 27 percent paid more. Only 3 percent of counties had average bills that were more than $4,000.

New York and New Jersey tend to have the highest number of counties with the highest property tax burdens. Westchester, Nassau, and Bergen counties in New York had the three highest average tax burdens, all more than $8,500. This reflects higher home prices as well as a higher reliance on property taxes by the state and local governments there.

Higher rates of property taxes are mostly found in the Northeast and parts of the Midwest, according to the researchers.

On the other hand, 24 counties had average taxes below $250, with the majority of those counties located in Alabama or Louisiana.

Source: “Role of Property Tax in Health of Housing Market,” Mortgage News Daily (Nov. 22, 2013)

Lenders Forecast Further Housing Market Gains

Prepare buyers for heavy documentation requirements starting in January, according to CEOs and senior executives from the biggest names in mortgage lending at the recent National Association of Realtors® (NAR) annual convention.

New regulatory hurdles could temporarily restrict lending to some buyers, but their effects will likely even out over time.

The Qualified Mortgage (QM) or ability-to-repay rule becomes effective in January and contains a number of underwriting standards that will constrict mortgage availability and deny credit to some first-time homebuyers. The QM rule requires significant documentation from consumers to justify lenders’ underwriting decisions, and lenders face strict penalties if a loan is made outside the specific criteria.

Among the new rules:

• Borrowers can still get a private loan, as long as the loan does not have risky features and the borrower’s total debt to income (DTI) isn’t over 43%. This means that a borrower’s total debt expense (including total mortgage payment) does not exceed 43% of their gross income (before taxes are withheld). The lower DTI, however, means some buyers will be offered less mortgage money than they were this year.
• Origination fees can’t exceed 3% of the loan, and affiliate fees and points count towards the 3% cap. This could create a problem for lower-income homeowners, however, since many closing costs are fixed: 3% of $50,000 is significantly less than 3% of $300,000.
• Some of the riskier loans offered before the housing slowdown won’t be allowed, such as interest-only, negative amortization and balloon house loans.

Read more at Florida Realtors®

30-Year Mortgages Drop to 4.22% This Week

Fixed-rate mortgages dropped this week due to weaker economic data, particularly a decline in manufacturing growth and overall inflation rates, says Frank Nothaft, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages in mortgage rates for the week ending Nov. 21:

• 30-year fixed-rate mortgages: averaged 4.22 percent, with an average 0.7 point, dropping from last week’s 4.35 percent average. Last year at this time, 30-year rates averaged 3.31 percent. 
• 15-year fixed-rate mortgages: averaged 3.27 percent, with an average 0.7 point, dropping from last week’s 3.35 percent average. A year ago, 15-year rates averaged 2.63 percent. 
• 5-year hybrid adjustable-rate mortgages: averaged 2.95 percent, with an average 0.5 point, dropping from last week’s 3.01 percent average. Last year at this time, 5-year ARMs averaged 2.74 percent. 
• 1-year ARMs: averaged 2.61 percent, with an average 0.4 point, holding steady from last week. A year ago, 1-year ARMs averaged 2.56 percent. 

Source: Freddie Mac

Tight Inventories Signal Home Prices Rising Further

A low number of homes for sale is pushing home prices up to double-digit gains year-over-year, the National Association of REALTORS® reports in its latest existing-homes report.

“Low inventory is holding back sales while at the same time pushing up home prices in most of the country,” says Lawrence Yun, NAR’s chief economist. “More new-home construction is needed to help relieve the inventory pressure and moderate price gains.”

In October, the national median existing-home price was $199,500 — a 12.8 percent surge above what it was a year ago. It also marks the 11th consecutive month of double-digit year-over-year increases, NAR reports.

Meanwhile, housing inventories are falling, dropping 1.8 percent in October to 2.13 million existing homes for sale. That represents a 5-month supply at the current sales pace.

The median time on the market for all home types was 54 days in October, up from 50 days in September. In October 2012, the median time on the market was 71 days.

Florida Housing Market Continues Positive Movement in October

Florida’s housing market continued its upswing in October 2013, with more closed sales, higher median prices, more new listings and a stabilizing supply of homes for sale, according to the latest housing data released by Florida Realtors®.

“Florida’s economy continues to improve, and that’s good news for the housing market,” says 2013 Florida Realtors President Dean Asher, broker-owner with Don Asher & Associates Inc. in Orlando. “October marks 23 months in a row that statewide median sales prices rose year-over-year for both single-family homes and for townhouse-condo properties. Last month, the median days on market (the midpoint of the number of days it took for a property to sell) was 46 days for single-family homes and 48 days for townhouses and condos. That means 50 percent of homes on the market in Florida sell in less than two months.

“On average, sellers received about 94 percent of their asking price in October. Interested home sellers are paying attention to this positive trend and entering the market, which in turn is helping to stabilize inventory levels.”

Read more at Florida Realtors®

Mortgage Applications Rise 6%

Mortgage applications for home purchases, viewed as one of the leading gauges of future homebuying activity, rose to its highest level since September, the Mortgage Bankers Association reports. The MBA’s index measuring loan demand for home purchases increased 5.8 percent last week.

However, while mortgage applications for home purchases rose, applications for refinancings fell to a two-month low, which brought the MBA’s overall index down 2.3 percent for the week ending Nov. 15. It marked the third consecutive week that the MBA’s index showed a decrease in overall loan demand. Refinance applications made up 64 percent of applications in the MBA’s index, which measures mortgage applications for both home purchases and refinancings.

The MBA’s index measuring refinancing applications dropped 6.5 percent last week, posting its lowest level since mid-September.

The MBA reports the average 30-year fixed-loan rate rose last week to 4.46 percent, the highest level in a month. Rates on 15-year loans remained unchanged last week at 3.52 percent.

Source: “Mortgage Applications in U.S. Retreated for Third Straight Week,” Bloomberg Businessweek (Nov. 20, 2013) and “U.S. Mortgage Application Volume Fell 2.3% in Latest Week, MBA Says,” The Wall Street Journal (Nov. 20, 2013)

2014 Economic Recovery to be Led by 'Resurgent Housing Sector'

Mortgage giant Freddie Mac is expecting a good 2014 for housing. Economists predict a much stronger economic recovery will take hold next year, “led by a resurgent housing sector,” according to Freddie Mac’s November U.S. Economic & Housing Market Outlook report. Despite rising interesting rates and home values, Freddie Mac economists believe “housing will remain generally affordable in most parts of the country.”

“Even if rates were to go to 5 percent next year, housing in most of the country would remain affordable,” Frank Nothaft, Freddie Mac’s chief economist, notes in the report. “Large metro areas along the Atlantic and Pacific coasts are already expensive for the typical family, so rising rates will have a bigger effect there. But in most of the country, incomes and home prices are such that rising rates by themselves will not be enough to end the recovery. What we need is some better income growth.”

Economic growth is expected to be in the 2.5 percent to 3 percent range, more than half a percentage point better than what is expected for this year. Economic growth will help spur more jobs, and Freddie economists predict that the unemployment rate will fall below 7 percent by mid-2014.

Freddie predicts that in 2014 single-family home sales and housing starts will reach their highest levels since 2007.

Buyers will likely face increasing borrowing costs, with mortgage rates expected to continue to rise in 2014, Freddie predicts. Mortgage rates have climbed about a full percentage point since early May.

“We look for fixed-rate mortgage rates to creep higher in 2014, gradually moving up throughout the year and ending at close to 5 percent,” Nothaft notes. “However, expect some volatility in the short-term from renewed concerns about the debt ceiling or other fiscal policy.”

Source: Freddie Mac November 2013 U.S. Economic & Housing Market Outlook

Is the 2013 Real Estate Buying Frenzy Starting to Cool?

Bidding wars in recent months have fueled large gains in home values in some parts of the country. But bidding wars and the buying frenzy seen just a few months ago seem to be cooling at a time when housing affordability has been reduced due to higher mortgage rates and home prices.

“The bidding wars were creating a false market,” homebuyer Mike Imgarten told Bloomberg about his two-month house hunt in Sacramento, Calif., area. “Now is a good time to jump back in and see where we’re at.”

Inventories have risen in many markets, leaving homebuyers with more options. The National Association of Realtors® reported that inventory levels of unsold homes rose in September from a year earlier – the first time since 2011.

More homeowners are seeing the return of equity (more than 2.5 million homes saw positive equity return in the second quarter alone), which has prompted more people to list their properties.

“We are shifting from a frenzy to where buyers are taking a step back and being more analytical and unwilling to just make rash decisions,” says Ellen Haberle, an economist for the real estate brokerage, Redfin.

Home sales typically slow during this time of year, but some analysts say the seasonal drop-off has been higher than expected. They blame the increase in mortgage rates for a lot of that drop-off. Since May, mortgage rates have risen a full percentage point, which has led to an increase in borrowing costs that is holding some buyers back, housing experts say.

The government shutdown also has weakened consumer confidence, says Michael Orr, director of the Center for Real Estate Theory and Practice at Arizona State University.

“The frenzy has died down,” says Selma Hepp, a senior economist for the California Association of Realtors. “The question in the summer of this year was, ‘is this sustainable, or is this a bubble again?’ Now the data is showing that we’re returning to more of a traditional market.”

Source: “Bid Wars Wane in U.S. Housing Markets on Supply Rise: Mortgages,” Bloomberg Businessweek (Nov. 14, 2013)

Mortgage Rates Move Higher Again

Fixed-rate mortgage raters moved higher last week for the second consecutive week, with the 30-year fixed-rate mortgage reaching its highest level since Sept. 19 when it averaged 4.50 percent, Freddie Mac reports.

"Fixed mortgage rates increased this week following stronger than expected economic data releases,” said Frank Nothaft, Freddie Mac’s chief economist. Nothaft notes the employment report for October was stronger than expected with revisions adding 60,000 additional jobs to the prior two month of releases.

Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 14:

• 30-year fixed-rate mortgages: averaged 4.35 percent, with an average 0.7 point, rising from last week’s 4.16 percent average. Last year at this time, 30-year rates averaged 3.34 percent. 
• 15-year fixed-rate mortgages: averaged 3.35 percent, with an average 0.7 point, rising from last week’s 3.27 percent average. Last year at this time, 15-year rates averaged 2.65 percent. 
• 5-year hybrid adjustable-rate mortgages: averaged 3.01 percent, with an average 0.4 point, rising from last week’s 2.96 percent average. A year ago at this time, 5-year ARMs averaged 2.74 percent. 
• 1-year ARMs: averaged 2.61 percent, with an average 0.4 point, holding the same average as last week. A year ago, 1-year ARMs averaged 2.55 percent. 

Source: Freddie Mac

As Market Rebounds Homebuyers Look for Luxuries

Builders are busy again now that the housing market is rebounding. More importantly, buyers are buying. Sitting on the sidelines for years didn’t stop future homeowners from dreaming big, with a long list of bells and whistles on their wish lists.

Now that buyers are spending money, they want what they want. Items that were once rare expensive add-ons are now becoming more commonplace.

And when buyers demand it, builders deliver it, often as part of the base price of a new home.

Now, with the touch of a button, you can dim the lights and close the blinds as a movie screen lowers from above. Or if you’re out of town, a high-tech security system lets you log onto a computer and view the inside and outside of your house from many angles.

Some condominiums are including concierge and maid services. On top of that, the penthouses have private pools, and guests of the owners can stay in their own units for the duration of their visits.

“It’s part of the mentality now,” said Truly Burton, executive vice president of the Florida Atlantic Building Association, a Hollywood, Fla.-based trade group. “People have begun to expect that in their homes.”

First-time buyers and young professionals aren’t likely to find these amenities when shopping for new homes priced at $300,000 or less. But the extras are becoming more common for move-up buyers looking for properties below $1 million.

Source: Florida Realtors®

Homes Are Selling 30 Days Faster Than Last Year

Nationwide, homes listed for sale on real estate marketplace Zillow sold a month faster in September 2013 than they did in the same month one year earlier – 86 days compared to 116 days in September 2012.

The fastest home turnover markets in the U.S., according to Zillow, include the San Francisco Bay Area (48 days); Sacramento, Calif. (59 days); and Dallas (60 days).

Homes sold faster this September compared to last September in all 30 of the largest metros. Large metros that saw the greatest gain in turnover rate include Las Vegas (44 days faster), Sacramento (43 days) and San Antonio (37 days).

In order to correct for homes that are listed, removed and re-posted with new prices, Zillow considered multiple listings within 40 days at the same address as one listing. Since the beginning of 2010, homes nationwide have spent a median of 119 days listed before being sold or taken off the market.

“Home shoppers in today’s environment need to be prepared to move quickly, with pre-approvals in place and an established sense of what they’re willing to pay for a home,” says Zillow Chief Economist Dr. Stan Humphries.

© 2013 Florida Realtors®

Is The Foreclosure Crisis Over?

Mortgage delinquency rates fell in the third quarter, marking it the seventh consecutive quarter for such a decrease, according to TransUnion data.

Mortgage delinquencies of at least 60 days dropped 4.09 percent in the third quarter, following a 4.32 percent drop in the second quarter. A year ago, mortgage delinquencies posted a 5.33 percent drop, according to TransUnion.

"We looked at all 52 million installment-based mortgages in the U.S., and the trend is clear — the percentage of borrowers willing and able to make their mortgage payments continues to improve," says Tim Martin, a TransUnion executive. "The overall delinquency rate is still high relative to 'normal,' but a 23 percent year-over-year improvement is great news for home owners and their lenders."

Source: “Mortgage Delinquencies Decline in 3rd Quarter -- TransUnion,”The Wall Street Journal (Nov. 12, 2013)

Mortgage Rates Move Higher for the First Time in Three Weeks

Mortgage rates reversed course this week, moving upwards for the first time in three weeks amid more positive economic data, Freddie Mac reports in its weekly mortgage market survey. Production in the manufacturing industry and non-manufacturing sector alike showed signs of expanding.

Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 7: 

• 30-year fixed-rate mortgages: averaged 4.16 percent, with an average 0.8 point, rising from last week’s 4.10 percent average. Last year at this time, 30-year rates averaged 3.40 percent. 
• 15-year fixed-rate mortgages: averaged 3.27 percent, with an average 0.7 point, rising from last week’s 3.20 percent average. A year ago, 15-year rates averaged 2.69 percent. 
• 5-year hybrid adjustable-rate mortgages: averaged 2.96 percent, with an average 0.5 point, holding the same average as last week. Last year at this time, 5 year ARMs averaged 2.73 percent. 
• 1-year ARMs: averaged 2.61 percent, with an average 0.5 point, dropping from last week’s 2.64 percent average. A year ago, 1-year ARMs averaged 2.59 percent. 

Source: Freddie Mac

Sellers Having to Reduce List Prices

One in four home sellers are reporting they’ve had to lower their list price, according to a new report released by the real estate brokerage Redfin. That represents the highest level since 2011, according to the Redfin survey. It also represents a far greater number than in February, when just one in seven sellers reduced list prices.

More home buyers are showing a willingness to wait until the price is right, according to Redfin. This is called pricing ahead of the market and sellers should be wary of pricing too far ahead of the market as time works against you and overpriced homes will not sell.

Price drops for homes were most prevalent in Atlanta, in which 42 percent of home sellers reported lowering their prices in September. Sacramento, Phoenix, San Diego, and Seattle also saw price reductions of more than 30 percent on homes for sale, according to Redfin.

On the other hand, the area that saw the fewest price drops was Long Island, N.Y. Raleigh, N.C., San Antonio, Houston, and Philadelphia also saw some of the fewest price drops.

Source: Redfin