Mortgage Rates Climb to Highest Level in Year

Fixed-rate mortgages soared higher this week, reaching their highest averages in a year, Freddie Mac reports in its weekly mortgage market survey. 

The 30-year fixed-rate mortgage -- the most popular choice among home buyers -- has climbed nearly half a percentage point since the beginning of this month -- from 3.35 percent to 3.81 percent this week.

"Fixed mortgage rates followed long-term government bond yields higher, following a growing market sentiment that the Federal Reserve may lessen its accommodative policy stance,” says Frank Nothaft, Freddie Mac’s chief economist. “Improving economic data may have encouraged those views.”

Despite the uptick, mortgage rates remain low by historical standards, Freddie Mac reports.

The mortgage giant reports the following national averages with mortgage rates for the week ending May 30:

• 30-year fixed-rate mortgages: averaged 3.81 percent, with an average 0.8 point, rising from last week’s 3.59 percent average. A year ago at this time, 30-year rates averaged 3.75 percent. 
• 15-year fixed-rate mortgages: averaged 2.98 percent, with an average 0.7 point, rising from last week’s 2.77 percent average. Last year at this time, 15-year rates averaged 2.97 percent. 
• 5-year adjustable-rate mortgages: averaged 2.66 percent, with an average 0.5 point, also up from last week’s average of 2.63 percent. Last year at this time, 5-year ARMs averaged 2.84 percent. 
• 1-year ARMs: averaged 2.54 percent, with an average 0.5 point, dropping from last week’s 2.55 percent average. A year ago, 1-year ARMs averaged 2.75 percent. 

Source: Freddie Mac

Siesta Key - the Jewel in the Crown of Florida's Gulf Coast

Located on the shores of the beautiful Gulf of Mexico, across the bay from the mainland Sarasota, you might be tempted to think that Siesta Key is just a beach town with miles of "the world's finest, whitest sand", but that's just a really good start...

Siesta Key is the perfect place to spend a holiday, a season or a lifetime and, whether you are visiting for a week, planning to relocate, or a long-time resident of this beautiful barrier island, we are the perfect place to find everything you need to know about this little piece of paradise.

There's more to Siesta Key than just beaches and water. This island is a destination for all who stay or live in the Sarasota area thanks to the wide variety of entertainment and dining options that stretch its length. On the north end, a short walk from one of Siesta's large expanses of public beach, lies Siesta Key Village. In the village's quaint few blocks you'll find dozens of shops that cater to the island lifestyle, offering necessities like groceries and hardware alongside souvenirs and bathing suits. Siesta Key Village restaurants -- most with large, open-air dining -- range from pancake and egg joints to award-winning fine dining spots.

No matter how fancy, though, dress codes are always casual: sandals are not only allowed, they're expected!

Down at the south end of Siesta Key you'll find more restaurants, shops and public beaches, as well as marina and boat rental facilities. Within minutes, you can putter in a pontoon boat or slice through waves in a high-powered jet ski. Try parasailing for more high-flying adventure, where you'll experience a unique view of Siesta Key while suspended from a parachute over 100 feet in the air. Or exercise more than just your sense of wonder by renting a bike or a kayak to explore the island on your own.

A short drive from downtown Sarasota, Siesta Key sits adjacent to the glittering Gulf of Mexico and its Siesta Public Beach has been named one of the nation’s best. This quaint yet quirky eight-mile-long island offers one-of-a-kind shopping, resorts, dining and nightlife. Known for its brilliant quartz sand, turquoise waters and many beachside amenities, Siesta Key is a must-visit island paradise. Siesta Key offers something for everyone. It's a romantic getaway for lovers, a family vacation destination and a playground for active sports enthusiasts. And don’t forget: Wherever you stay, the beach and bay are always nearby.

Siesta Key homes for sale

Lakewood Ranch Community Information

Lakewood Ranch is an 8,500-acre master-planned community located east of I-75 on the border of Manatee and Sarasota counties. This award-winning community is composed of seven villages, each offering a range of residential options amid lake and nature preserve views.

Notable golf courses include the private Lakewood Ranch Golf and Country Club, featuring 36 holes of championship golf designed by the Palmer Course Design Company and 18 holes of championship golf designed by Rick Robbins, as well as the public Legacy Golf Course, an 18-hole Arnold Palmer signature links course.

Club members enjoy a 44,000-square-foot Italian Villa Clubhouse and an Athletic Center with 18 lighted clay tennis courts, a fitness center with steam rooms and saunas, Junior Olympic pool and resort pool for younger children.

Several commercial parks, a medical center, colleges, a polo club and cricket club are also found here, as well as upscale shopping, dining and cultural venues.

Main Street at Lakewood Ranch is located across from the Lakewood Ranch Medical Center. This outdoor venue offers stylish boutiques and international restaurants, the Lakewood Ranch Cinemas and the Fish Hole, a miniature golf course. Main Street combines elements of the ideal downtown with easy to access stores that make year-round shopping a pleasure. Famous names and specialty shops line the streets.

The open-air environment provides a unique plaza for strolling and shopping. Main Street has its own theater of six screens and shows new release movies, as well as independent films from the Sarasota Film Society. Other events at Main Street include the following: Music on Main, Evening Under the Stars, Suncoast Wine Festival, and Art at the Ranch. During the Christmas season, Main Street attracts locals by creating a huge tree in the middle of its circle drive, decorations, and fake snows that fall from the store’s rooftops; Christmas music is piped in through speakers on the street.

Lakewood Ranch has dedicated half of its land for parks, trails, and recreational fun. The trails alone stretch over 150 miles of the land.

Other recreational activities include polo and cricket. Lakewood Ranch has nine fields and a regulation size arena that can be played on throughout the winter season. The polo fields are located on 35 private ranches with over 600 horses stabled around the Club during the season.

Here, homage is paid to the breathtaking environment that surrounds Lakewood Ranch, which is why the community is proud to have been designated as the largest green-certified community in the US. The commitment to remaining green in all aspects of residential and commercial development remains unwavering.

Lakewood Ranch homes for sale

Rising Mortgage Rates May Spark Buying Frenzy

Rising mortgage rates are prompting some renters to jump off the fence and consider buying a home, so they don’t miss out.

Mortgage rates have seen a sharp rise in recent weeks. Mortgage applications for home purchases have risen 3 percent and are up 14 percent over year-ago levels, according to the Mortgage Bankers Association.

Fed Chairman Ben Bernanke recently suggested that the Fed’s efforts to keep mortgage rates at record lows may be nearing an end soon.

"It's amazing to see the frenzied pick-up in home buying, as renters get nervous that both home prices and rates will rise quickly," Craig Strent, CEO of Maryland-based Apex Home Loans, told CNBC. "They are trying to catch the beginning of the curve here."

The 30-year fixed-rate mortgage -- the most popular among home buyers -- recently ticked up to 3.90 percent, the highest level in a year. Coupled with rising mortgage rates, home prices have been on the rise too.

Every 1 percentage point that mortgage rates rise reduces the average home shopper’s maximum purchase price by 11 percent, according to Dan Green, a loan officer with Waterstone Mortgage in Cincinnati.

Still, mortgage rates are low by historical standards, and remain below the 4 percent historical low threshold. The 30-year fixed-rate mortgage reached a record low in December last year -- averaging 3.47 percent.

Source: “Rising mortgage rates could dissuade new home buyers,” CNBC.com (May 29, 2013)

Short Sales Losing Favor with Lenders?

Lenders may be less inclined to approve short sales due to rising home prices, according to a new report by RealtyTrac.

During the first quarter, short sales posted a 35 percent drop compared to year-ago levels.

"The decrease in short sales was a bit of surprise given that 11 million home owners nationwide still owe more on their homes than they're worth," says Daren Blomquist, spokesman for RealtyTrac. "Rising home prices are taking away the incentive for short sales on the part of both home owners and lenders."

Foreclosure prices are on the rise, increasing 28 percent in the first quarter. The banks may be realizing they won’t necessarily lose a lot more money by letting a home go into foreclosure instead, Blomquist says.

However, foreclosure sales have been plummeting too, reaching their lowest levels since early 2008. Foreclosure sales made up 21 percent of the total market during the first quarter, which is down from 25 percent one year ago, according to RealtyTrac.

Foreclosure sales peaked in early 2009, when they made up 45 percent of all homes sold nationally.

Still, foreclosures are making up the biggest bulk of sales in certain states, such as Georgia (where 35 percent of sales were foreclosures in the first quarter), Illinois (32 percent), and California (30 percent), according to RealtyTrac.

Source: “Foreclosure sales fall to lowest level since 2008,” CNNMoney (May 30, 2013)

CoreLogic: April Foreclosure Inventory Drops 24%

CoreLogic’s latest National Foreclosure Report found 52,000 completed foreclosures in the U.S. in April 2013. That’s down from 62,000 in April 2012 for a year-over-year decrease of 16 percent. Compared to completed foreclosures one month earlier, the number was relatively flat.

Prior to the 2007 decline in the housing market, completed foreclosures averaged 21,000 per month nationwide.

In April 2013, about 1.1 million U.S. homes were in some stage of foreclosure, making them part of the foreclosure inventory, a drop from 1.5 million in April 2012 for a year-over-year decrease of 24 percent.

The foreclosure inventory declined 2 percent in one month. As of April 2013, it represented 2.8 percent of all homes with a mortgage compared to 3.5 percent in March 2013.

“The shadow of foreclosure and distress continues to fade, with the annualized sum of completed foreclosures having declined for 17 straight months,” says Dr. Mark Fleming, chief economist for CoreLogic. “Six states have year-over-year declines in the foreclosure inventory of more than 40 percent, and in Arizona and California the year-over-year decline is more than 50 percent.”

Florida

Florida continued to lead the nation in the percent of homes in foreclosure. According to CoreLogic, 9.5 percent of Florida homes were in some state of foreclosure compared to the 2.8 percent national average. New Jersey ranked second at 7.4 percent, but only five states have an inventory of 4 percent or larger. Still, Florida’s foreclosure inventory fell 2.6 percent year-over-year.

In the year ending April 2013, Florida saw 101,614 completed foreclosures, or 14 percent of all national foreclosures. Illinois and Ohio followed with slightly over 30,000 completed foreclosures each. No other state had more than 20,000 completed foreclosures.

The CoreLogic report also focused on two Florida city areas, Orlando (including Kissimmee and Sanford) and Tampa (including St. Petersburg and Clearwater).

Orlando had 11,180 completed foreclosures in the year ending in April 2013, and 9.5 percent of homes in its foreclosure inventory – a 3 percent year-to-year drop.

Tampa had 15,130 completed foreclosures for the year, and 9.9 percent of homes in its foreclosure inventory – a 2.5 percent year-over-year drop.

Report highlights (numbers rounded)

• The five states with the highest number of completed foreclosures for the 12 months ending in April 2013 were: Florida (102,000), California (79,000), Michigan (68,000), Texas (53,000) and Georgia (47,000). These five states account for almost half of all completed foreclosures nationally.

• The five states with the lowest number of completed foreclosures for the 12 months ending in April 2013 were: South Dakota (81), District of Columbia (100), North Dakota (461), Hawaii (466) and West Virginia (527).

• The five states with the highest foreclosure inventory as a percentage of all mortgaged homes were: Florida (9.5 percent), New Jersey (7.4 percent), New York (5.1 percent), Maine (4.4 percent) and Nevada (4.3 percent).

• The five states with the lowest foreclosure inventory as a percentage of all mortgaged homes were: Wyoming (0.5 percent), Alaska (0.6 percent), North Dakota (0.7 percent), Nebraska (0.8 percent) and Virginia (0.9 percent).

Source: 2013 Florida Realtors®

U.S. Home Prices Rise 10.9% – Most Since 2006

U.S. home prices jumped 10.9 percent in March compared with a year ago, the most since April 2006. A growing number of buyers are bidding on a tight supply of homes, driving prices higher and helping the housing market recover.

The Standard & Poor’s/Case-Shiller home price index released Tuesday also showed that all 20 cities measured by the report posted year-over-year gains for the third straight month.

And prices rose in 15 cities in March from February. That’s up from only 11 in the previous month. The monthly figures aren’t seasonally adjusted and may reflect the beginning of the spring buying season.

Prices rose in Phoenix by 22.5 percent over the past 12 months, the biggest gain among cities. It was followed by San Francisco (22.2 percent) and Las Vegas (20.6 percent).

New York City had the smallest year-over-year increase at 2.6 percent, followed by Cleveland at 4.8 percent.

“Rising home prices may begin to alleviate a lack of housing inventory … by encouraging more homeowners to put their properties on the market,” said Maninder Sibia, an economist with Economic Advisory Service, in a note to clients. “The housing market is clearly improving.”

The index covers roughly half of U.S. homes. It measures prices compared with those in January 2000 and creates a three-month moving average. The March figures are the latest available.

The U.S. housing market is steadily recovering, buoyed by solid job gains and near-record low mortgage rates. Sales of new homes rose in April to nearly a five-year high. And sales of previously occupied homes ticked up in April to the highest level in three and a half years.

Despite the gains, a limited number of homeowners are putting their houses on the market. That’s helped lift home prices. And it’s made builders more willing to ramp up construction. Applications for building permits rose in April to the highest level in nearly five years.

The supply of available homes jumped in April, but was still 14 percent below its level a year earlier.

Stan Humphries, chief economist at Zillow, a real estate data provider, said that the increase in the Case-Shiller index has been skewed higher by cities such as Phoenix and San Francisco. Fewer homes are available in those areas because many homeowners still owe more on their mortgages than their homes are worth. That makes it difficult to sell.

Still, even excluding those markets, home prices are rising steadily nationwide, Humphries said. The increases are “certainly confirmation that the housing market is experiencing a brisk recovery,” he added.

The housing recovery is creating more construction jobs and bolstering the economy in other ways. Higher home prices make homeowners feel wealthier and encourages them to spend more.

Rising prices also encourage more would-be buyers to purchase homes, before prices rise further. They also enable more homeowners to sell homes, by reducing the number of people who owe more on their mortgages than the homes are worth.

Prices have been increasing steadily since last summer. Still, they are about 29 percent below the peak reached in July 2006.

Banks have raised their credit standards since the housing bubble burst and are demanding larger downpayments. That’s made it particularly hard for potential first-time buyers to get a mortgage.

Source: Associated Press 2013

House Flippers Re-Emerge, Looking to Cash In

With rising home prices, investors are eyeing house flipping again as a way to make a profit in real estate.

Much of the house flipping is centered in California, where prices are on the rise by some of the highest amounts. For example, the number of homes sold in California recently that have been bought and resold within six months has reached its highest level since late 2005, according to PropertyRadar research. About 5 percent of all homes in the state have been flipped this year through April, according to the data.

House flipping is different from the housing bubble days. For example, in a tight lending environment, house flippers nowadays are mostly using all-cash transactions for their home purchases. Also, many investors are fixing up foreclosures or neglected homes that other buyers may pass up.

Still, some in the housing industry are concerned that investors are snatching up the limited inventories of homes for sale from other buyers.

Flippers get a "bad rap" in the public eye, says Robert Ganem, who flipped about 20 houses in the last year. "Most buyers want a home that's move-in ready. We come in and make repairs that a bank or an underwater owner is not going to do."

Source: “Flippers Ride Housing Wave,” The Wall Street Journal (May 27, 2013)

Investors Betting on Housing Recovery

Investors are picking up shares of appliances, building materials, and even pickup trucks in betting on a widening housing recovery, The Wall Street Journal reports. Investors say that the increase in residential construction and home renovation represents a big opportunity on Wall Street.

The recovery is in "the very early innings," Russell Croft, a portfolio manager at Croft Leominster Inc., told The Wall Street Journal. "[I’m trying] to find the secondary or tertiary stocks that might be influenced by housing."

Following a run-up in shares of homebuilder stocks -- like Lennar, KB Home, and Toll Brothers -- investors are now diversifying, looking at such companies like appliance maker Whirlpool (which has surged more than 170 percent since the end of 2011) and Ford Motor Co. for pickup trucks. Investors are looking for anything housing-related, including companies that manufacture related items from roofing and floorboards to drywall and faucets.

Home improvement retailers Lowe’s and Home Depot have each soared by about 60 percent over the last 12 months.

With home prices still below about 28 percent from their 2006 peak, investors are seeing plenty of opportunity ahead for the housing market.

"The housing market is one of the best investible themes out there for 2013 and for 2014 as well," says analyst Kevin O'Keefe with Brown Advisory, which oversees $33 billion in assets.

Source: “Investors Spread Their Housing Bets,” The Wall Street Journal (May 27, 2013)

Longboat Key, FL - the ideal vacation getaway

Longboat Key is a town in Manatee and Sarasota counties along the central west coast of the U.S. state of Florida, located on and coterminous with the barrier island of the same name. Longboat Key is south of Anna Maria Island, between Sarasota Bay and the Gulf of Mexico. It is almost equally divided between Manatee and Sarasota counties. The town of Longboat Key was incorporated in 1955 and is part of the Bradenton–Sarasota–Venice Metropolitan Statistical Area.

Known for tasteful luxury and manicured surroundings, Longboat Key is rich in gorgeous beaches, wildlife and upscale amenities. High-end boutiques and five-star restaurants make it an ideal destination for vacationers who like their beaches on the swankier side. Ignored by spring breakers and devoid of the garish attractions that characterize many Florida beach towns, Longboat Key is one of quietest barrier islands on the Gulf Coast—and all the more beloved for it.

Its history includes tales of explorers and Native Americans, pirates and pioneers. There are grand mansions and even grander yachts, plus some of the world’s most beautiful sunsets lining the tranquil Gulf of Mexico.

Scores of retirees, young families and romantic couples relocate or visit each year to take advantage of the superb angling, shelling, biking, shopping, dining and the luxury homes that dot its 12-mile stretch of shoreline. Just minutes away from the cultural attractions of Sarasota and world-famous St. Armand’s Circle, Longboat Key is the ideal base from which to explore the area.

Although Longboat Key is a locale that prizes its tranquil nights and lazy beach days, it also offers plenty of opportunities. Let us take the guess work out of our island by providing our local services.

Longboat Key homes for sale

Greenbrook Village, Lakewood Ranch in the Spotlight

Greenbrook Village in Lakewood Ranch is in the spotlight for its family-friendly and nature-oriented way of life. 

Lush nature preserves and lakes surround the residences, which face curving roads and cul de sacs. Neighborhoods meander around many lakes and are wrapped by a beautifully preserved natural Florida habitat. 

Two large parks have jogging and hiking paths, pavilions and playgrounds. Adventure Park offers active play areas, an obstacle course, in-line skate/hockey rink and a dog park. 

Pedestrian trails connect across the Braden River Preserve to Heron's Nest Nature Park and Braden River Nature Trail. 

All homes in Greenbrook East are built to Florida Green Building Coalition standards.

Source: Herald Tribune

More Buyers Willing to Make Higher Offers

Home buyers are saying they’re willing to pay more for a residential property due to concerns over low inventory. In the second quarter of 2013, 41 percent of buyers said they’re willing to offer more, up from 34 percent in the first quarter, according to a survey of more than 1,300 home buyers in 22 major markets by the real estate brokerage Redfin.

The number of buyers who say they’re concerned about rising home prices has more than doubled in the past year, according to the survey. Seventy-nine percent of home buyers say they believe prices will increase in the next 12 months—with 23 percent of that group saying by “a lot.”

“Home buyers are accepting the reality of a seller’s market and expressing a willingness to pay more,” according to the brokerage’s survey.

Source: Redfin

Will Fed Slow Its Bond Buying Program?

The Federal Reserve is torn over when to slow its aggressive efforts to stimulate the economy.

Its uncertainty burst into view Wednesday, when Chairman Ben Bernanke testified to Congress in the morning and the Fed in the afternoon released the minutes of its last policy meeting.

Stock prices gyrated through the day as investors struggled to determine whether the Fed might soon pull back – even gradually – on its extraordinary efforts.

At one point, the Dow Jones industrial average had jumped more than 150 points after Bernanke’s testimony signaled his belief that it was too soon for the Fed to pull back on its support for the economy, including its $85 billion a month in Treasury and mortgage bond purchases.

But the Dow plunged and closed down 80 points after minutes from the Fed’s April 30-May 1 meeting showed that several members favored cutting the level of purchases, perhaps as early as June. Even that was hard to decipher because the minutes said members would have to agree that the economy had shown strong and sustained growth before the Fed would slow its bond purchases.

The Fed is buying the bonds to try to ease long-term borrowing costs, encourage borrowing and accelerate growth. And it’s said it will maintain its pace of bond purchases until the job market improves substantially.

Economists don’t expect the Fed to curtail the bond purchases next month. But Paul Ashworth, chief U.S. economist for Capital Economics, said the September meeting is a real possibility.

For one thing, Bernanke told lawmakers Wednesday that the Fed might reduce the purchases within the next few meetings if the job market showed “real and sustainable progress.” Bernanke is scheduled to hold a news conference after the September meeting, so Ashworth said it would allow him to directly explain the change then.

Still, whatever the Fed does is likely to be done gradually, Ashworth said.

“It could begin with a relatively trivial reduction to gauge market reaction,” he said.

Most of Bernanke’s testimony Wednesday to the Joint Economic Committee focused on the many risks the U.S. economy still faces and the help the Fed’s support programs have provided. His remarks suggested that the Fed isn’t ready to taper the bond purchases.

In recent weeks, the job market and the broader economy have shown renewed vigor. The unemployment rate has reached a four-year low of 7.5 percent. A resurgent housing market has helped lift consumer confidence. And a powerful stock market rally has made many consumers feel wealthier.

Unemployment does remain well above levels consistent with healthy economies. And some economic sectors like manufacturing are struggling. Bernanke also said higher taxes and deep federal spending cuts will likely slow growth this year.

David Wyss, a former Fed economist who teaches at Brown University, said recent economic data has been mixed, suggesting that the Fed is unlikely to change course soon.

Wyss said Fed policymakers will want to see more data and that any reduction in the Fed’s current pace of bond purchases would probably not occur until the end of this year at the earliest.

“I can’t see them doing anything before fall and they may well wait until next year,” he said.

And when the Fed does start trimming its bond purchases, Wyss predicts they will cut the pace to around $50 billion as a first step and then spend most of 2014 gradually reducing that level to zero.

He expects investors’ reaction by then to be “fairly muted.”

“I would assume the market will be expecting it by the time they finally do it,” Wyss said.

The prospect of a pullback in bond purchases is on the minds of several Fed policymakers, as the minutes of last meeting made clear. It wasn’t what most investors wanted to hear Wednesday.

A slowing of the Fed’s bond purchases would ease downward pressure on long-term interest rates. As a result, they would likely rise from near-record lows, along with mortgage rates and rates on many others loans. Stocks, which have been boosted by investors shifting money out of low-yielding bonds, would likely fall.

Though the Fed’s tapering of its bond purchases would be gradual, any change from its current record-low-rate policy tends to incite anxiety.

Still, Wyss said he didn’t expect any panic in the stock market because the Fed will be acting in response to a stronger economy, which is good for stocks.

“But the details are hard to know because it will depend on what the economy is doing at that point,” Wyss said.

Source: Associated Press

April New Home Sales Increase 2.3%

Sales of new U.S. homes rose in April to the second highest level since the summer of 2008 while the median price for a new home hit a record high, further signs that housing is recovering.

New-home sales rose to a seasonally adjusted annual rate of 454,000 in April, the Commerce Department said Thursday. That was up 2.3 percent from March and just slightly below January’s 458,000.

Both January and April had the fastest sales rates since July 2008.

The median price of a home sold in April was $271,600, the highest level on government records going back to 1993. The April price was 8.3 percent higher than in March and 13.1 percent higher than a year ago.

Steady job creation and near-record-low mortgage rates are spurring more Americans to buy homes.

With the April increase, sales are now 29 percent higher than a year ago, but sales are still below the 700,000 level considered healthy by economists.

The strength in April was led by a 10.8 percent rise in sales in the West. Sales in the South were up 3 percent but sales fell 16.7 percent in the Northeast and were down 4.8 percent in the Midwest.

Sales of previously owned homes rose in April to a seasonally adjusted annual rate of 4.97 million, the highest level in 3½ years.

Greater demand, along with a tight supply of available homes for sale, is also boosting prices in most markets and encouraging more construction.

Applications for permits to build homes rose in April to the highest level in nearly five years. While construction of new homes and apartments slipped a bit in April, the drop came one month after construction topped 1 million for the first time since June 2008.

Higher prices tend to make homeowners feel wealthier. That encourages consumers to spend more, which accounts for 70 percent of economic activity.

Federal Reserve Chairman Ben Bernanke cited the revival in housing as a significant benefit of the Fed’s super-low interest rate policies.

“Higher prices of houses and other assets, in turn, have increased household wealth and consumer confidence, spurring consumer spending and contributing to gains in production and employment,” Bernanke said in an appearance before the congressional Joint Economic Committee.

Several major homebuilders have reported strong annual increases in orders for the first three months of the year, Ryland Group Inc., said that its orders in April jumped 59 percent from a year earlier.

Though new homes represent only a fraction of the housing market, they have a sizable 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 data from the National Association of Home Builders.

Source: Associated Press

Florida Housing Market Showing Strong Gains in April 2013

Florida’s housing market reported more closed sales, rising median prices, increased pending sales, more new listings and a lower inventory of homes for sale in April, according to the latest housing data released by Florida Realtors®.

“Buyer demand is rising, but the inventory of homes continues to be tight in many areas across Florida,” says 2013 Florida Realtors President Dean Asher, broker-owner with Don Asher & Associates Inc. in Orlando. “That’s putting some upward pressure on prices. April is the 16th month in a row that we’ve seen the statewide median sales prices increase year-over-year for both single-family homes and for townhome-condo properties.

“In another positive sign for Florida’s housing market, sellers received over 93 percent of their original listing price in April, whether they were selling a single-family home or a condo. Now is a good time for sellers who have been waiting on the sidelines to enter the market.”

Statewide closed sales of existing single-family homes totaled 20,662 in April, up 17.4 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.

Meanwhile, pending sales – contracts that are signed but not yet completed or closed – for existing single-family homes last month rose 31.9 percent over the previous April. The statewide median sales price for single-family existing homes last month was $165,000, up 14.2 percent from the previous year.

According to the National Association of Realtors (NAR), the national median sales price for existing single-family homes in March 2013 was $185,100, up 12.1 percent from the previous year. In California, the statewide median sales price for single-family existing homes in March was $378,960; in Massachusetts, it was $290,000; in Maryland, it was $241,413; and in New York, it was $220,000.

The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Looking at Florida’s year-to-year comparison for sales of townhouse-condos, a total of 11,183 units sold statewide last month, up 13.6 percent compared to April 2012. Meanwhile, pending sales for townhouse-condos last month increased 22.7 percent compared to the year-ago figure. The statewide median for townhouse-condo properties was $128,000, up 16.4 percent over the previous year. NAR reported that the national median existing condo price in March 2013 was $178,900.

The inventory for single-family homes stood at a 5.2-months’ supply in April; inventory for townhouse-condos was at a 5.6-months’ supply, according to Florida Realtors.

“To a certain extent, the real estate story remains the same: prices and sales are up and inventory is low,” said Florida Realtors Chief Economist Dr. John Tuccillo. “We are also seeing a continued stabilization of the distressed property market with short sales down, and foreclosure and REO (real estate owned) sales essentially unchanged. But there is also a bit more to the story.”

He explained, “Because the government is selling foreclosed properties in bulk and also using online auctions, our sales numbers actually understate the vigor of the market. The increased importance of government sales in this market is reflected in the continuing fall in inventory in MLS listings.” MLS stands for multiple listing service.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.45 percent in April 2013; lower than the 3.91 percent average during the same month a year earlier.

Source: Florida Realtors®

Keep Calm and Buy Real Estate!

For Sale/Sold/Pended in Sarasota County

At the end of April, Sarasota County had 3856 homes for sale, a 6.3% drop compared to March. With 1157 homes sold in the month of April and 1308 pended, this has led to an Absorption Rate of 30% or 3.3 months of inventory (closed sales) and 33.9% or 2.9 months of inventory (pended sales) maintaining very much a seller's market.

Click for Chart: For Sale/Sold/Pended in Sarasota County

For Sale/Sold/Pended in Zip Code 34202

At the end of April, zip code 34202 had 170 homes for sale, a 6.1% drop compared to March. With 78 homes sold in the month of April and 80 pended, this has led to an Absorption Rate of 45.9% or 2.2 months of inventory (closed sales) and 47.1% or 2.1 months of inventory (pended sales) maintaining very much a seller's market.

Click for Chart: For Sale/Sold/Pended in Zip 34202

Florida Cash Investors Lured by Distressed Homes

House hunters looking to buy a foreclosure in South Florida often discover they are getting outflanked by the pros: investors wielding cash.

“If you don’t have cash, or you’re looking for financing, you can’t play in the distressed arena,’’ said Doug DeWitt, owner and broker at Concierge Real Estate Services in Miami Beach, who markets bank-owned properties for some major lenders.

When a bank-owned house in the Hammocks in West Kendall went on the market in late April, the 3-bedroom, 2-bath villa drew 29 purchase offers and 60 showings over a 10-day listing period mandated by the bank. The asking price was $159,900.

The lender narrowed the field to the all-cash buyers, who were told to make their highest and best offer, and the house is now under contract.

“It went for well above asking price. They all do,’’ said DeWitt, who is the listing agent. “I have one happy buyer and 28 people I sent on their way.’’

DeWitt said he feels sorry for the first-time buyers and other house hunters looking simply to finance the purchase of a home they plan to live in.

“The banks need to move these properties. The cash offers weren’t low, they were right in line,’’ DeWitt said. “If you can take the [uncertainties of] the appraisal and inspection out of the parameters, your chance of closing goes up substantially.’’

To be sure, homebuyers still can ferret out opportunities to purchase distressed properties. Fannie Mae, for instance, offers financing with low downpayments and no mortgage-insurance requirement on select Fannie Mae-owned homes under its HomePath mortgage program.

“On some of Fannie Mae’s foreclosed properties, Fannie Mae is putting them back on the market and offering up to 97 percent financing,’’ said Ray Barkett, regional vice president and district sales manager at Keyes Realtors in Fort Lauderdale.

Another option, Fannie’s HomePath mortgage renovation program, even provides funds to fix up rundown foreclosures.

One of the top worries during the real estate crash was that the housing market would take another nosedive when lenders dumped a slew of distressed properties on the market. So far, that simply hasn’t come true. Lenders have managed the flow of properties onto the market. Indeed, many real estate agents are clamoring for more such inventory in South Florida, where the inventory of homes and condos for sale has plunged to its lowest level since 2005.

“There is definitely an increase in REO [bank-owned] inventory,’’ said Dewitt, “but the whole theory of shadow inventory dragging down the market has proven completely false.’’

Victor Gonzalez, a Miami real estate investor who bids on foreclosures at Miami-Dade county’s cash-only online courthouse auctions, said banks have gotten more aggressive in bidding on properties they have foreclosed on, rather than letting them go at discounts.

“It’s getting very competitive again. Prices are going up,’’ Gonzalez said.

Even in auctions where lenders don’t take back properties themselves, competition is keen from institutional buyers like hedge funds and investor groups created to snap up distressed properties, Gonzalez said.

And the process is fraught with uncertainty. Scheduled auctions of homes often get cancelled at the last minute for a host of reasons, such as a lender’s decision to go with a short sale.

Those bidding at auctions need to know how to search records for liens. Even so, they can’t be sure how much is due in homeowners’ association or condominium fees. “I research 20 or 30 properties before bidding on one,’’ Gonzalez said.

Source: The Miami Herald. Distributed by MCT Information Services.

Florida Homebuyers Writing Letters to Sellers

In a housing market characterized by a short supply of properties and by bidding wars, some buyers are hoping to get a competitive edge by writing sellers short notes about why they fell in love with a home and want to become its new owners.

Michael Citron, an agent in Florida's Broward and Palm Beach counties, says, "Money talks, but a letter gives a human element to an offer. Sellers want to sell to a buyer who they're comfortable with and can relate to."

Although finding the right buyer can make people feel better about selling their home, experts say these letters will do little to help a buyer's case if the offer is significantly lower than competing bids. Moreover, lenders care little about such letters and only want the highest price and earliest closing possible.

Source: "Pick Me, Please: Homebuyers Writing Letters to Sellers," South Florida Sun-Sentinel (05/17/13)

Builders More Upbeat About New-Home Sales

Builders are feeling more confident about new-home sales, sales expectations for the next six months, and prospective buyer traffic, according to the May reading on the National Association of Home Builders/Wells Fargo Housing Market Index.

The index—which gauges builders’ sentiment on those three indicators—rose three points to 44 in May. Still, it takes a number over 50 on the index to indicate that more builders view conditions as good rather than poor.

All three indicators posed gains in May, with expectations for future sales reaching 53 on the index—the highest level since February 2007, NAHB reports.

"Builders are noting an increased sense of urgency among potential buyers as a result of thinning inventories of homes for sale, continuing affordable mortgage rates, and strengthening local economies," says NAHB Chairman Rick Judson. "This is definitely an encouraging sign even amidst rising challenges with regard to the cost and availability of building materials, lots, and labor."

The new-home sector continues to battle against low inventories. It will take time for builders to “re-establish themselves following recession-related cutbacks,” says NAHB Chief Economist David Crowe. “Builders’ view of current sales conditions have improved and expectations for the future remain quite strong as consumers head back to the market in force.”

Source: National Association of Home Builders

Strong Fundamentals Shore Up Home Sales

Home sales are on a sustained upswing, with solid gains in volume and price predicted for the next few years thanks to improved market fundamentals. But whether the federal government will derail further improvement remains a question, REALTORS® heard Thursday.

Existing-home sales are expected to hit 5 million at the end of this year and then grow to 5.3 million in 2014, up from 4.3 million in 2011, National Association of REALTORS® Chief Economist Lawrence Yun told a packed audience at his residential economic forum at the 2013 Midyear Legislative Meetings & Trade Expo in Washington.

Click here for Lawrence Yun's presentation

Price appreciation will be strong, too. Yun said he expects gains of 8 percent this year and 5 percent next year.

The strong price growth reflects the overly tight inventory conditions in many markets, Yun said. And that’s not a healthy condition. What’s needed is a return to the market by small builders, but they can’t get financing because community banks, leery of banking regulations coming out of Washington, aren’t lending.

Until that regulatory uncertainty clears up, only the country’s largest builders, which have access to Wall Street bond financing, will be building. As a result, although building has picked up in the last year after years of flat-lining, the number of new units is barely at replacement level. To meet the pent-up demand that’s in the market right now, builders need to get some 1.5 million units on the market. They’re only getting about 1 million right now.

The good news is that the housing recovery is based on deep-seated improvements in market fundamentals. So as long as the economy stays on track, which economists generally say will be the case, the housing market should continue to improve well into the future.

To the extent that there are market risks, they largely stem from the federal government, which continues to look at ways to reduce its budget deficit. Washington is also writing rules to protect against future mortgage market problems.

Will the government pare back the availability of Federal Housing Authority financing through tightened lending rules? Will it require banks to meet stringent capital standards and underwriting requirements under Dodd-Frank Wall Street reform rules?

Another unknown is whether the government will it impose strict limits on the points and fees lenders charge for loan originations–what Yun called a kind of price control that could end up dampening loan availability.

Until these and other uncertainties are cleared up, the improving market will face headwinds, Yun said. As a result, although the market should continue improving, its gains are unlikely to be as robust as they otherwise would be.

Source: Robert Freedman, REALTOR® Magazine

Housing Starts Fell in April but Permits Surged

U.S. builders broke ground on fewer homes in April, one month after topping the 1 million mark for the first time since 2008. But most of the decline was in apartment construction, which tends to vary sharply from month to month.

And applications for new construction reached a five-year peak, evidence that the housing revival will be sustained.

The Commerce Department said Thursday that builders started construction at a seasonally adjusted annual rate of 853,000, a 16.5 percent drop from the March pace of 1.02 million. Applications for building permits rose 14.3 percent to a rate of 1.02 million, the most since June 2008.

Builders are benefiting from a sustained rebound in housing that began a year ago. Steady job growth, rock-bottom mortgage rates and rising home values have boosted demand.

New construction of single-family homes declined 2.1 percent in April to an annual rate of 610,000. Multi-family construction, which is volatile, plunged 39 percent to a rate of 243,000. That drop more than reversed a 26 percent surge in March.

Housing starts fell last month in every region except the Midwest, where it rose 11 percent compared with March. New construction dropped 28 percent in the South. It fell 13 percent in the Northeast and 6 percent in the West.

Even with the sharp drop in construction last month, confidence among builders is rising. The National Association of Home Builders says its builder confidence index rebounded in May to a reading of 44, up from 41 in April. The outlook for sales reached its highest point in more than six years.

New-home sales rose 1.5 percent in March to a seasonally adjusted annual rate of 417,000. That’s still below the 700,000 pace considered healthy. But sales are 18.5 percent higher than a year ago.

Several major homebuilders have reported strong annual increases in orders for the first three months of the year. That includes the start of the spring home-selling season, the traditional peak period for sales.

Ryland Group Inc. said this week that orders in April jumped 59 percent from a year earlier. And over the first three months of this year, orders have jumped 54 percent.

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 data from the homebuilders’ group.

Source: The Associated Press 2013

Appraisals Catching Up to Rising Home Values

In recent months, real estate professionals have had to hold their breath as they waited for an appraisal on a property to come back. Would it be lower than the agreed-upon selling price -- and by how much?

Many real estate professionals have blamed a high number of derailed transactions on low-ball appraisals.

But now the industry is noticing a change in appraised values: Appraisals are getting more in line with the agreed upon selling price, CNNMoney reports.

Appraisers are valuing homes at or above their selling prices as home prices nationwide climb and inventories of homes decrease, says Lawrence Yun, chief economist for the National Association of REALTORS®.

For example, in Wallingford, Wash., real estate pro Michael Ackerman told CNNMoney that he was concerned a transaction would fall apart when a buyer agreed to pay $755,000 for a home since other comparable homes in the area had sold for $690,000.

“Everybody’s jaws dropped” when the appraised value came in at the full, agreed-upon selling price,” says Ackerman.

In some cases, appraisals are even coming in higher -- which was practically unheard of just a few months ago. For example, real estate pro Cara Ameer in Jacksonville Beach, Fla., says with home prices in the area rising 15 percent over the past year, she was concerned the appraisal on a two-bedroom townhouse wouldn’t reflect the current rise. A buyer offered to pay $5,000 above the $189,000 asking price. The appraisal came in above the selling price, Ameer says.

Source: “Home appraisals no longer derailing sales,” CNNMoney (May 15, 2013)

Luxury Homes in Higher Demand

The luxury home market is gaining momentum, with prices rising and many areas where upscale housing once struggled now turning into a seller’s market, according to the Institute for Luxury Home Marketing.

“Prices have been trending up fairly strongly since the beginning of the year,” Laurie Moore-Moore, the institute’s founder, recently told the Chicago Tribune. “Inventory has been tight, though we're starting to see a little growth in inventory again. It's not stock-market driven, not necessarily. When you look back at the housing-market downturn, the low point probably was in 2007. Typically, a downturn would be driven by high mortgage-interest rates, but this time it was the whole real estate market that crashed. And at that time, the number of wealthy people in America actually declined, and the number of wealthy households is an extremely important driver of demand.”

But by 2010, there were nearly as many wealthy households as before the downturn, with affluent households recovering fairly quickly, Moore-Moore says.

“This group focused on residential real estate as a pretty desirable asset — for them, a second or third home turned out to be a portfolio play,” Moore-Moore notes. “Driving the recovery, we've had record low interest rates and a perception of bargain prices and then we've had this very affluent group saying, maybe real estate is a smart buy.”

The high-end markets flourishing the most are Baltimore; Charlotte, N.C.; San Francisco; and Washington, D.C., according to a monthly analysis by the Altos Research data firm on behalf of the Luxury Home Marketing. The report tracks 31 ZIP codes with the highest median prices.

But not all luxury home markets are gaining momentum, according to the report. For example, some luxury markets are considered stable, including Atlanta, Los Angeles, Miami, Las Vegas, Denver, and Dallas. Also, luxury-home markets are still seeing prices fall in areas like Chicago, New York, Seattle, and Orlando.

Source: “Luxury home sellers feeling rich again,” The Chicago Tribune (May 10, 2013)

Rising Housing Market Likely to Lift Job Mobility

Home owners are starting to feel freer to move where the jobs are, Reuters reports, as worries about homes that won't sell or will sell at a loss begin to fade.

Since early 2012, home prices in the major metro areas have been rising. Homes are also selling faster: It took 62 days, on average, to sell a home, compared with 91 days one year prior, according to March data from the National Association of REALTORS®.

The increase in mobility from the recovering housing market is expected to have a hand in lowering the jobless rate.

"Until the real estate market picked up, people wouldn't even consider a move without the certainty that they could sell their homes," Jerry Funaro, vice president of global marketing for TRC Global Solutions, a Milwaukee-based relocation service, told Reuters. "Companies are now more inclined to make offers since we're seeing real estate markets across the country coming back.”

The number of people who moved last year increased to 35.6 million, with the mover rate climbing to 12 percent, according to the U.S. Census Bureau. That marked an increase over the 11.6 percent low set in 2011.

"It's not a huge gain, but when you consider that for two years, we've had the lowest migration rates since World War II, any move up is good news," William Frey, a demographer at the Brookings Institution in Washington, told Reuters.

Meanwhile, in April, the jobless rate dropped to its lowest point in more than four years, reaching 7.5 percent, due to an increase in hiring among employers.

Source: “Insight: Housing improvement may herald return of U.S. workforce mobility,” Reuters (May 13, 2013)

April’s new listings rose 3.12%, but more buyers began a search

The good news: New listings in April rose 3.12%

The bad news: The number of potential homebuyers rose even more, keeping inventory tight in many areas, according to data compiled from realtor.com

Read more at Florida Realtors 2013

Inventories and Asking Prices Get a Boost

Inventories of homes for sale nationwide increased 4 percent in April, but remain 13.5 percent lower than last year’s inventory levels, according to realtor.com®’s latest report.

The number of homes for sale remains particularly tight out West. Inventories have dropped the most -- more than 52 percent compared to a year ago -- in Orange County, Calif. In Oakland, San Jose, Los Angeles, and Stockton, Calif., inventories of for-sale homes were down more than 40 percent year-over-year in April, according to the report, which reflects listings from more than 800 multiple listing services nationwide.

With tight inventories, asking prices are on the rise across the country. Nationwide median asking prices rose 2.6 percent in April, and were 3.1 percent higher than last year’s levels.

California posted some of the largest jumps in asking prices too. Oakland, for example, had the largest median asking price increase in April, climbing 47 percent over a year ago. Other big gainers for asking prices also include: Santa Barbara (+47%), Sacramento (+40%), San Jose (+35%), and Los Angeles (+34%).

Buyer demand remains strong and homes are spending less time on the market. On average, homes were on the market in April for at least 81 days, down 2.4 percent from March and a drop of 11 percent from a year ago.

Source: “Housing Inventories Rose in April,” The Wall Street Journal (May 14, 2013)

Venice, Florida - a beautiful and idyllic place to visit

Venice, Florida abounds in natural beauty and splendor. Venice offers something for everyone including beautiful beaches, its quaint downtown shopping area and the old Florida scenery along the Myakka River. 

Venice homes for sale

The shark tooth capital of the world, Venice, Florida, is known for its spectacular shoreline. Stroll down Venice Avenue with its pink, Italian Renaissance buildings, Mediterranean-style shops and "umbrella-topped" Canary Island date palms.

Venice is a friendly and vibrant city nestled between Sarasota and Fort Myers, directly on the beautiful Gulf of Mexico. Crossing one of Venice's bridges to the historic downtown area, known as "The Island of Venice", instantly transports you to a place of unparalleled charm where palm tree lined avenues host an endless array of exciting things to do and see. You’re sure to find a shop or boutique to satisfy your style out of the 100+ unique shops, salons, and other businesses along the Island Avenues of Venice. If dining is your idea of excitement, your palate will be especially pleased. With many sidewalk cafes and several picturesque waterfront restaurants, Venice offers a total dining experience that is truly second to none

In Venice, you’re guaranteed to find the experience you desire along our 7 miles of beautiful beaches from surfing and fishing to golfing, nature trails, a dog-friendly beach or just relaxing with your toes buried in the soft white sand and soaking up the sun. Our “main” beach, Venice Beach, plays host to live music nearly every night of the week.

Always alive with excitement, downtown Venice hosts or sponsors an extensive schedule of events throughout the year. Venice's fall and spring outdoor art shows some of south Florida's best, are signature events, showcasing art created by talented local artists. Outdoor music performances in the Centennial Park Gazebo, holiday gatherings, winter and summer craft fairs and old fashioned Main Street parades are also regular events.

Many Buyers Confused About Mortgage Process

Most homeowners, especially first-timers, borrow a large amount of money to buy a home. But how much do they know about the process? A survey conducted by Ipsos Ipsos for Zillow attempted to find out.

According to the Zillow Mortgage Marketplace survey of first-time homebuyers, they answered one-third (32.5 percent) of the questions about basic mortgage information incorrectly.

For example, one-third (34 percent) of first-time homebuyers don’t realize it’s possible to get a home loan with a downpayment less than 5 percent.

Many first-time buyers also don’t understand how to secure the best possible interest rate and loan terms. One-quarter (26 percent) incorrectly believe they’re obligated to close their loan with the lender that pre-approved it; and, separately, 24 percent incorrectly believe that the best interest rates and fees can always be found through the bank they currently use.

Additionally, one-third of buyers (34 percent) believe all lenders are required by law to charge the same fees for credit reports and appraisals, even though it’s best to shop multiple lenders to compare rates and fees.

Confusion also reigns after the home sale. Almost half (47 percent) of current homeowners believe they must wait at least one year between refinancing.

“All too often buyers focus on negotiating a lower home price and ignore the importance of finding the right loan,” says Erin Lantz, director of mortgages for Zillow. “If a homebuyer can lower their interest rate by even half a percentage point, they can not only increase their purchasing power, but save thousands of dollars over the life of the loan.”

Additional survey findings

• One-third (34 percent) of polled prospective homebuyers do not know what the term “annual percentage rate” (APR) means. The annual percentage rate (APR) is a yearly rate that reflects the true cost of a mortgage and is inclusive of the interest rate, points, mortgage insurance (when applicable), and other fees, including origination and underwriting fees. The APR will typically be higher than the interest rate quoted by lenders, and should be used as a starting point when comparing loan quotes between lenders.

• Half (50 percent) of prospective homebuyers do not understand that mortgage rates change throughout the day. In reality, much like the stock market, mortgage rates can change rapidly. To get the optimum rate, it is important to monitor rates and shop around.

• Nearly one-third (31 percent) of current homeowners incorrectly believe that you must wait seven years after a short sale or foreclosure to purchase again. In most cases, homebuyers with a short sale history typically only need to wait 2-4 years depending on their downpayment and the loan type. The waiting period after a foreclosure is longer – typically, buyers need to wait 3-7 years before they can qualify for a new home loan.

• More than one-third (34 percent) of current homeowners incorrectly believe that you can only refinance your home every 12 months. In reality, homeowners can refinance as often as they want. However, homeowners should weigh the cost of the refinance against the time they will own the home and the monthly payment change to determine if refinancing makes sense.

Source: 2013 Florida Realtors®

Florida's Housing Market Shows Momentum In Q1 2013

Florida's housing market gained strength in first quarter 2013 with increased closed sales, more pending sales, higher median prices and a reduced supply of homes for sale compared to the same quarter in 2012, according to the latest housing data released by Florida Realtors®.

“The first three months of 2013 demonstrate that Florida’s housing market is gaining momentum and continuing to bolster the state’s economy,” said 2013 Florida Realtors President Dean Asher, broker-owner with Don Asher & Associates Inc. in Orlando. “More people went back to work as more jobs were created in Florida during the first quarter, and our population is also growing – which provide a solid foundation for growth in the housing market. It’s taking less time to sell a home and, coupled with tight inventory, that shows buyers are eager to lock in historically low mortgage interest rates and take advantage of favorable, but rising prices.”

Statewide closed sales of existing single-family homes totaled 48,976 in 1Q 2013, up 10.2 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.

Meanwhile, pending sales – contracts that are signed but not yet completed or closed – for existing single-family homes rose 26.8 percent in the first quarter compared to the 1Q 2012 figure. The statewide median sales price for single-family existing homes in 1Q 2013 was $153,000, up 13.4 percent from the same quarter a year ago.

The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Looking at Florida’s year-to-year comparison for sales of townhouse-condos, a total of 24,655 units sold statewide in the first quarter, up 3.2 percent from the first three months of 2012. Pending sales for townhouse-condos in 1Q 2013 increased 13.7 percent compared to a year ago, while the statewide median for townhouse-condo properties was $116,000, up 18.4 percent over the same quarter last year.

In 1Q 2013, the median days on market (the midpoint of the number of days it took for a property to sell that month) was 60 days for both single-family homes and for townhouse-condo properties.

The inventory for single-family homes stood at a 5.3-months’ supply for 1Q 2013; inventory for townhouse-condos was at a 5.8-months’ supply for the same period, according to Florida Realtors.

Florida Realtors Chief Economist Dr. John Tuccillo said, “In a sense, these numbers are old news since we release the monthly numbers separately. But they are important in that they confirm the sales and price trends we have seen shaping up in the market. If you look back at the quarterly numbers, comparing year to year, you see, at least in single-family sales, the steadiness of the market since 2009. We expect that the year-over-year increases we have seen for the past several years will continue into 2014.”

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.50 percent for 1Q 2013 down from the previous year’s average of 3.92 percent, according to Freddie Mac.

To see the full statewide housing activity reports, go to Florida Realtors Media Center and look under Latest Releases, or download the 1Q 2013 data report PDFs under Market Data.

Source: 2013 Florida Realtors®

Florida Foreclosures Increase As Lenders Speed Up Process

RealtyTrac released its U.S. Foreclosure Market Report for April 2013 yesterday. It finds that foreclosure filings – default notices, scheduled auctions and bank repossessions – were reported on 144,790 U.S. properties in April, a decrease of 5 percent from the previous month and down 23 percent from April 2012.

Total foreclosure activity hit a 74-month low in April – at its lowest level since February 2007.

Foreclosure activity represents all homes in the foreclosure process, including those that received a first notice. The drop suggests stability.

On the other side of the coin, judicial foreclosure auctions represent homes leaving the foreclosure process in states such as Florida where they go through the court system. Nationally, judicial foreclosure auctions increased 22 percent and 31 percent year-to-year, suggesting a new push to move foreclosure inventory.

Scheduled foreclosure auctions increased from a year ago in 15 of the nation’s 26 judicial or quasi-judicial foreclosure states, including Florida, where they rose 55 percent.

Other judicial states saw an even bigger boost, including Maryland (199 percent increase), New Jersey (91 percent increase), Ohio (73 percent increase) and Oklahoma (57 percent increase).

On a RealtyTrac city analysis, Florida had five cities in the top 10 for foreclosure rates, including No. 2 Ocala (one in every 255 housing units had at least one foreclosure filing), No. 3 Miami (one in every 269 units), No. 4 Orlando (one in every 287 units), No. 7 Jacksonville (one in every 345 units) and No. 9 Tampa at No. 9 (one in every 384 units).

Nationally, one in every 905 U.S. housing units had a foreclosure filing during April.

“The April numbers indicate that the pig is moving through the python when it comes to deferred foreclosures in judicial foreclosure states,” says Daren Blomquist, vice president at RealtyTrac.

“Foreclosure starts have been increasing for several months in many of the judicial states, and now that increased volume is showing up in the second stage of the process: the public foreclosure auction,” he adds. “Scheduled foreclosure auctions in judicial states jumped to a 30-month high in April, evidence that lenders are serious about moving forward with completing the foreclosure process – either through repossession or sale to a third party investor at public auction.

Other report findings

• Scheduled non-judicial foreclosure auctions in states where foreclosures don’t need to go through the court system were down 7 percent in April from March and 43 percent year-to-year. These auctions were at an 88-month low – since April December 2005.

• A total of 70,133 U.S. properties started the foreclosure process in April, down 4 percent from the previous month and down 28 percent from a year ago.

• Lenders repossessed 34,997 U.S. properties in April, down 20 percent from March and down 32 percent from April 2012 to the lowest level since July 2007 – a 69-month low.

• Lender repossessions (REO) decreased from a year ago in 37 states and the District of Columbia.

• Non-Florida cities in the top 10 for foreclosure rates include No. 1 Akron, Ohio, with a 147 percent annual increase; Columbus, Ohio; Las Vegas, Myrtle Beach, S.C., and Chicago.

• At the beginning of May, A total of 11.3 million mortgages nationwide were seriously underwater, meaning combined amount of mortgages secured by the home was at least 25 percent more than the estimated value of the home. That represented 26 percent of all outstanding mortgages, but it’s down nearly 1.5 million from the 12.8 million seriously underwater mortgages in May 2012.

Source: 2013 Florida Realtors®

States With the Highest Foreclosure Inventories

Foreclosures rates are falling, but some states are still battling high levels. According to nationwide averages, the foreclosure inventory as of March represented 2.8 percent of all homes with a mortgage — that’s down from 3.5 percent in February.

In CoreLogic’s latest report reflecting March data, the following five states posted the highest foreclosure inventories (as a percentage of all mortgaged homes):

• Florida: 9.7 percent
• New Jersey: 7.3 percent
• New York: 5 percent
• Maine: 4.4 percent
• Illinois: 4.4 percent

Meanwhile, the five states with the lowest foreclosure inventories were:

• Wyoming: 0.5 percent
• Alaska: 0.7 percent
• North Dakota: 0.7 percent
• Nebraska: 0.9 percent
• Montana: 0.9 percent

Source: CoreLogic

Sarasota, FL #9 in best markets for flipping homes

Sarasota is one of 5 Florida places in the top 10 of the best markets to flip your home.

As investor activity continues to thrive in 2013, more and more homes will be flipped as home prices are expected to continue climbing. Investors who bought while prices were still depreciated and interest rates at record-low will rehabilitate and sell these homes for a profit.

RealtyTrac researched the top 25 markets nationwide where flipping single-family homes offers the highest rate of return based on the flipper’s gross profit — the difference between average original purchased price and the eventual flipped sales price of a flipped home. 

To create the list, RealtyTrac studied more than 600 metro areas throughout the country where flips of single-family homes occurred in 2012.

Source: RealtyTrac

U.S. rate on 15-year mortgage at record 2.56%

How low will mortgage rates go before they start to rise again?

The question of course is not that will rates rise but when rates will rise, and this will have an effect on the US housing recovery as some borrowers will back out of the market as they may no longer feel that a higher interest rate is good value for them given the record lows over the past few years.

This is despite (an assumed) improving confidence in the economy, improving credit worthiness and a higher flow of credit from lenders.

One in four (25%) mortgage industry experts polled by Bankrate.com this week expect rates to sink even lower, while the majority (58%) see little change over the short term. The remaining 17% expect an increase.

As the economy grows, then borrowers' improving income levels will need to accelerate to stay ahead of future interest rate rises to maintain the housing recovery.

Source: Florida Realtors

'Pocket Listings' Spark Controversy

With the housing rebound in full swing, “pocket listings” are growing in many parts of the country as some sellers look to preserve their privacy, and brokers use them to trigger an aura of exclusivity to a listing. But some in the industry worry that exclusivity may be crossing an ethical line. 

Pocket listings refer to situations in which real estate agents purposely keep sales information about a home off the multiple listing services, and brokers only show that house to people they expect to actually purchase it. 

The National Association of REALTORS® does not have an official policy on pocket listings, spokesman Walt Molony told CNNMoney. But some real estate boards say they don’t like the practice. 

In New York, the practice of “pocket listings” violates the Universal Co-Brokerage Agreement, which requires agents to share listings, maintains Neil Garfinkel, counsel for the Real Estate Board of New York. 

Some housing experts also say that pocket listings create a gray area when an agent is able to collect double commission from the deal by acting as the agent for both the buyer and seller. "If an agent is putting their own economic interest ahead of the seller’s, it’s a violation of state law," Garfinkel says. 

However, "most of the time, pocket listings are done ethically and fairly," Betty Graham, president of Coldwell Banker Previews International/NRT, told CNNMoney.

If the home doesn’t sell quickly as a "pocket listing," many agents say they’ll then advise their clients to readjust their price and list the home publicly on the MLS. But some agents say a few sellers may prefer the privacy of pocket listings because they’re not highly motivated to move — unless someone offers them a “make-me-move” deal with a great price, CNNMoney reports. 

Source: “Secret 'pocket listings' return in hot housing markets,” CNNMoney (May 2, 2013)

This Month in Real Estate April 2013

Lenders Chip Away at Foreclosure Inventories

Completed foreclosures rose in March, but the big drop in the number of distressed properties entering the pipeline remains encouraging, analysts say.

In March, 55,000 foreclosures were completed, a 6 percent increase from February, according to a newly released report from CoreLogic. But, overall, foreclosures have fallen more than 16 percent year-over-year. Completed foreclosures are down 52 percent from their 2010 peak, and nearly all of the top 100 major metro areas are posting declining foreclosure rates, says Mark Fleming, CoreLogic’s chief economist.

About 1.1 million homes were in the foreclosure process in March, a drop of 23 percent year-over-year.

“For 17 consecutive months, foreclosures have declined year over year across the U.S,” says Anand Nallathambi, president and CEO of CoreLogic. “Although we still have more than a million homes in some stage of foreclosure, this trend, combined with rising home prices, is another signal of a gradually improving housing market.”

The foreclosure inventory now makes up about 2.8 percent of all mortgaged homes. In February, that percentage stood at 3.5 percent.

The following five states accounted for nearly half of all completed foreclosures in March:

• California 
• Florida 
• Georgia 
• Michigan 
• Texas 

Source: CoreLogic and “More home foreclosures completed in March: CoreLogic,” Reuters (April 30, 2013)

Buyers Try Their Luck at Housing Lotteries

Where buyer demand is high, some builders are holding lotteries to determine who gets to purchase homes in their developments.

For example, O’Brien Homes has been holding monthly housing lotteries in Sunnyvale, Calif., for its development Fusion, a 228-unit development. The builder decided to start having lotteries after potential buyers had camped out for the openings of other new condos in the area.

Each month, O’Brien Homes has attracted around 50 eager, pre-qualified buyers—who already have their down payments secured—to enter the lottery. Only about 10 or so sites are available to lottery participants each month. Participating buyers are given a bingo ball and then must wait for the builder to pick a ball from the tumbler to see if they have a chance at purchasing a home. O’Brien has begun to give returning buyers and extra bingo ball to better their chances of winning.

For some buyers, the lottery system has proven frustrating, as they return month after month trying to snag a chance for one of the homes, says Susie Frimel, a spokeswoman for O'Brien Homes. Also, the prices are rising practically every time. Two-, three-, and four-bedroom homes ranged from $420,000 to $620,000 when the lotteries first began, but now have posted a 32 percent increase, ranging from $555,000 to $815,000.

Other builders are reportedly trying the lottery system too, such as Shea Homes in Livermore, Calif., GL Homes in Florida, and Camberley Homes in northern Virginia.

"[O]ur homes are at a price that we are willing to accept and not force customers to potentially get into a bidding war," said Marcie DePlaza, GL Homes division president, explaining to CNNMoney the company's decision to hold a lottery recently to sell off 11 of its model homes in Delray Beach, Fla. "So for us, the lottery is the fairest way to determine the priority in which customers will be able to purchase our model homes."

Source: “Builders hold lotteries for eager new homebuyers,” CNNMoney (April 30, 2013)