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

Buzzwords That Are Helping to Sell Homes

Marble, big windows, and wine cellars are becoming popular words in listing ads to sell high-end homes, according to a new study by Trulia. The study defined luxury listings as those valued four times the median asking price in an area.

The following buzz words have grown in luxury listings the past two years: 

• Marble bath: +78%
• Oversized windows: +56%
• Ceiling windows: 37%
• Floor-to-ceiling windows: +39%
• Wine cellars: +30%
• Marble floors: +30%
• Gyms: +28%
• Private elevators: +24%
• Tennis courts: +24%

Source: “The Keywords Being Used to Sell Homes,” The Wall Street Journal (Nov. 6, 2013)

Florida Housing Market Continues Improvement in Q3 2013

Florida’s housing market continued to improve in third quarter 2013 with more closed sales, higher median prices, more pending sales and a stabilizing supply of homes for sale compared to the same quarter in 2012, according to the latest housing data released by Florida Realtors®.

“Data from the third quarter of 2013 shows that Florida’s housing market continues to grow and gain strength,” said 2013 Florida Realtors President Dean Asher, broker-owner with Don Asher & Associates Inc. in Orlando. “The housing sector is vital to the state’s economy, and Realtors across the state are reporting increased activity in their markets.

“At 7.0 percent, Florida currently has a lower unemployment rate than the nation, according to the August unemployment figures (the latest state data available.) More jobs will provide more stability for future growth in the state’s housing market and overall economy.” 

Read more at Florida Realtors®

Banks Offering Loans with 5% Down Payment

For the last few years, buyers have been hard-pressed to land a mortgage if they didn’t have a 20 percent down payment, unless they turned to the Federal Housing Administration’s low down-payment loans.

But a growing number of banks are now offering loans with just 5 percent down, CNNMoney reports. For example, Bank of America, Wells Fargo, and TD Bank are among the banks reportedly offering mortgages with down payments as low as 5 percent.

TD Bank is offering a “Right Step” loan product that allows borrowers to get a loan with a 5 percent down payment while also allowing borrowers to get up to 2 percent of the sales price as a gift from a relative or third party. In actuality, then, borrowers would only need to come up with a 3 percent down payment themselves.

Banks that are offering 5-percent down payment loans, however, are requiring borrowers to purchase private mortgage insurance. Borrowers will have to keep PMI until they build up 20 percent equity in the home.

Source: “Banks Offering Mortgages with Only 5% Down Payments,” CNNMoney (Nov. 5, 2013)

Pricier Properties Leading Housing Recovery

Sales growth is strongest among homes in the highest home tiers, according to a new analysis of housing data from the National Association of REALTORS®. Homes in the above-median-priced categories are outselling homes in the lower-priced tiers.

Over the past year, more than 11 percent of homes sold were priced at over $500,000.

A big variation exists among regions for median prices. The median price reflects half of the homes in an area that sold at a higher price and half of the homes that sold at a lower price than the median.

One explanation behind the trend of pricier homes outselling lower priced homes is that “home sales are shrinking in the lowest price tier -- most likely a result of limited inventory in this price range as would be expected in a housing market where prices are rising,” says Danielle Hale, a research economist at NAR.

Sales in the lowest price range fell by more than 7 percent nationwide. On the other hand, sales in higher-priced tiers rose more than 30 percent in September compared to year ago levels, Hale notes.

An expected decrease in distressed sales in the months ahead could mean even smaller inventories of lower-priced homes for sale compared to high-priced homes. That would “mean continued upward pressure on the median price of homes compared to one year ago until inventories help relieve some of this pressure.”

Source: “Pricier Properties Lead the Recovery,” Real Estate Economy (Oct. 28, 2013)

Home Buyers Who Use Internet More Likely to Hire an Agent

Internet growth in home buying is growing, but buyers who use the Internet are more likely to say they need a real estate agent, according to the National Association of REALTORS®’ 2013 Profile of Home Buyers and Sellers survey.

In fact, the highest share of buyers in the survey’s history -- 92 percent -- reported using the Internet to search for a home to buy. Forty-two percent of buyers reported starting their home search by looking for properties online, while 17 percent said their first step was to contact a real estate agent.

The Internet is helping buyers to find the home they ultimately purchase too. Forty-three percent of buyers said they found the home they purchased online, up from 8 percent in 2001.

Despite home buyers increasingly relying on the Internet for their home search, the overwhelming majority turns to a real estate agent for extra help.

Eighty-eight percent of buyers said they purchased their home through a real estate agent. Among those who used the Internet to search for homes, that share grew higher -- up to 90 percent, according to the NAR survey.

“While the vast majority of buyers use the Internet during the homebuying process, the Internet does not replace the real estate agent in the transaction,” according to the report. “In fact, buyers who used the Internet were more likely than those who did not use the Internet to purchase their home through an agent.”

Buyers ranked the following services highest that agents’ can provide them in their search: finding the right property, helping to negotiating terms of the sale and price negotiations, identifying comparable properties, and assisting with paperwork.

Source: “Homebuyers More Likely to Use Real Estate Agents, Even as Internet Usage Hits an All-Time High,” Inman News (Nov. 4, 2013)

Overseas Buyers Are Purchasing Sight Unseen

More people are buying houses in Florida without setting foot inside the door because they live overseas. And with limited inventory of for-sale homes, they’re forced to become more aggressive. Technology that helps them understand what a home and community feels like can close absent-buyer sales.

Agents handling these purchases can accomplish it by shooting community and neighborhood videos that showcase the area’s lifestyle. They can direct house-hunters to school and demographic information, answer questions about commute time and encouraging clients to use Google Street View to explore a neighborhood from afar.

Agents also need to help buyers feel like they’re actually inside the house, taking advantage of prerecorded video or live streaming video tours and tools like MagicPlan to create accurate floor plans.

Once an overseas buyer settles on a home, digital signature software, phone calls and emails can help agents coordinate and complete the transaction.

Home Builders Merge to Provide Scale in the Industry

TRI Pointe Homes Inc. announced a $2.7 billion merger with a larger home-building division than itself, Weyerhaeuser Co. The deal is expected to turn TRI Pointe into one of the nation’s top 10 publicly traded builders in market value.

Irvine, Calif.-based TRI Pointe Homes went public in January, and company officials at the time announced plans to become a bigger player in the housing industry.

TRI sold 254 homes in the first half of the year, and Weyerhaeuser sold 1,708 homes. Weyerhaeuser's brands include Pardee Homes in California and Las Vegas; Maracay Homes in Arizona and Trendmaker Homes in Texas.

“Providing scale in this industry at this point was very important,” Barry Sternlicht, chairman of TRI, told investors during a recent conference call. “There is no question that the home-building market is in for multiple years of expansion.”

The merger is yet another sign of a wave of consolidation in the home-building industry as the housing market recovers.

“Seeking growth at a time when traditional sources of financing are tight, builders are looking to grow through mergers, acquisitions, and by accessing capital through the public markets,” The Wall Street Journal reports.

In just the first half of this year, five builders have offered initial public offerings, and three more are set to debut soon. More builders see going public as a way to access sources of financing at a time when lenders have been less willing to lend on land development.

Source: “Home Builder Clinches $2.7 Billion Deal,” The Wall Street Journal (Nov. 4, 2013)

Sarasota is Hot Spot for Foreign Investors

There are a growing number of international buyers taking advantage of Southwest Florida's still relatively low home prices by snapping up primary residences and investment properties alike.

The Sarasota-Manatee region ranks sixth statewide in the percentage of foreign buyers of existing homes, according to a new report by the National Association of Realtors.

The two counties were the state's second most popular region among buyers from the United Kingdom and third among Canadians.

British buyers tend to look at investment properties at $300,000 and under, while Canadians focus on $200,000 and under. Much of that inventory has been snapped up by the giant Blackstone Group and other equity-fund buyers, together with baby boomers and retirees, in the past year.

Source: Herald Tribune

Florida Leads U.S. for Foreign Buyers

Interest in single-family homes from corporate buyers such as equity firms has been a major factor in moving Florida’s residential real estate market out the recessionary doldrums.

But there’s been another big source of demand for Florida residences: In 2012, one in five sales of Florida homes was to a nonresident foreigner, according to a March report from the National Association of Realtors. Florida accounted for 23 percent of all U.S. home sales to foreigners, leading the nation in sales to international buyers.

International interest is still focused on southeast Florida – close to one-third of all international home sales in Florida are in Miami, thanks to an influx of Brazilians, Venezuelans and Argentines. The Fort Lauderdale and Orlando markets are a distant second and third, accounting for 11.6 percent and 8.9 percent of sales to international buyers.

But interest from foreign buyers is spreading throughout the state as Florida real estate brokers actively market their regions overseas. In July, Teresa Witte, sales manager for RE/MAX Platinum Realty’s new global new homes division in Sarasota, traveled to Sao Paulo, Brazil, on behalf of three builders to promote home buying in southwest and central Florida.

The response was enthusiastic, says Witte. “They were really interested. They’ve heard about the Gulf of Mexico, but they’ve never been here.”

Most potential foreign buyers, she says, are familiar with Miami Beach and Orlando because they’ve vacationed there, says Witte, but “they don’t have the time to explore other areas. I think it’s up to us to take these areas to them.” She’s on the marketing trail again, with stops planned in the U.K., followed by Toronto, Russia and Colombia.

Home sales to foreigners have proved a boon not just to brokers, but also to local property tax receipts in counties hit hard by the recession. According to Bloomberg News, property assessments in the 10 counties that have had the largest influx of international cash have risen nearly twice as fast as assessments in the rest of the state.

Also benefiting are businesses like Moneycorp, a London-based provider of foreign currency exchange services, which helps foreigners - most of whom pay cash - transfer their currencies into dollars.

“We deal with lots of Germans and Canadians on the southwest coast of Florida. Down in Miami and central Florida, we’re seeing lots of Brazilian activity,” says Kelly Cutchin, USA country manager for Moneycorp.

International buyers’ top states:-

• Florida: 23 percent of U.S. total
• California: 17 percent
• Arizona: 9 percent
• Texas: 9 percent

In Florida:-

• Canada: 39 percent of all foreign buyers
• Latin America/Caribbean: 29 percent
• Europe: 23 percent
• Asia/Oceania: 6 percent
• Africa/Middle East: 4 percent

© 2013 Trend Magazine Inc.

Looking For A Bargain? Buy an Older Home

More than 70 percent of the U.S. housing stock was built prior to 1990, and an aging housing stock may present more opportunities for buyers searching for a bargain, according to RealtyTrac’s Aging Homes Analysis.

"The high percentage of homes that are at least 20 years old and likely in need of some major repairs is eye-opening," says Jake Adger, chief economist at RealtyTrac. "However, given the low inventory of homes available for sale in today's market, this challenge of aging U.S. housing supply can also be an opportunity for buyers looking for a bargain and home owners looking to update their living space and improve the value of their homes."

Older homes often need upgrades for energy efficiency and may lack floor plans or amenities that home buyers desire today, according to RealtyTrac’s analysis.

On average, homes built prior to 1990 sold for $233,211 this year, compared to $256,292 for newer homes.

"The lower price point on older homes is not surprising given many are in need of some rehab and are more likely to have maintenance issues," Adger says. "But this also presents an opportunity for buyers willing to take on that older inventory. Those buyers can purchase at lower price points and face less competition from institutional investors," who tend to buy newer homes.

Fourteen states were found to have the largest number of homes built prior to 1990 (making up more than 80 percent of its home sales). Nearly all of those states were located in the Northeast, except for Louisiana, New Mexico, and Kentucky, RealtyTrac notes.

Meanwhile, older homes made up less than 40 percent of sales in Utah and Nevada.

Source: “Aging Housing Inventory Presents Bargain-Hunting Opportunities,” Mortgage News Daily (Oct. 31, 2013)

Delinquent Borrowers Not Giving up on the American Dream

For delinquent borrowers, the majority say they aren’t giving up on the American Dream, despite their recent struggles.

A survey conducted by Fannie Mae finds that delinquent borrowers – those late on their mortgage payments and at risk of foreclosure – are still committed to the idea of home ownership, even if they are having some difficulties with it now.

Particularly in the past year, and as home prices rise, delinquent borrowers have become more upbeat about housing, the survey shows. The survey found that the majority still believe in the financial and lifestyle benefits of home ownership.

In the survey, the delinquent borrowers were asked if renting or home ownership was better for building wealth. Seventy-four percent said owning was better for building wealth. What’s more, 70 percent said home ownership was also better for their overall tax situation.

Many delinquent borrowers say they’ve been unsuccessful at refinancing and lowering their monthly mortgage payments. The most common barriers cited are not qualifying and not trusting lending institutions, the survey found.

The survey also found that delinquent borrowers share stronger concerns about their finances, income level, debt stress, and employment than the general public.

Source: Fannie Mae and “A nation of renters? Not so, delinquent borrowers say,” HousingWire (Oct. 31, 2013)