GreyHawk Landing by Homes by Towne

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

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

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

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

Sarasota Makes Top Ten in America's Most Exciting Cities

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

Florida Will Lead Emergence From Great Recession

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

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

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

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

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

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

Florida to Outperform U.S. in 2014

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

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

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

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

Read more at Florida Realtors®

Sarasota Single Family Home Median Prices Up 20.6%

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

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

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

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

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

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

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

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

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

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

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

Source: Sarasota Association of REALTORS®

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

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

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

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

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

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

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

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

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

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

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

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

Copyright © 2013 The Associated Press

Home Builders End the Year More Upbeat

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

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

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

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

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

Source: National Association of Home Builders

Blackstone Becomes Lender to Smaller Investors

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

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

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

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

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

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

Growth in Home Prices Will Slow by Half in 2014

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

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

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

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

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

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

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

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

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

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

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

More Homes Back Into Positive Equity

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

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

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

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

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

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

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

© 2013 Florida Realtors®

Benderson Park Continues Transformation

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

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

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

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

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

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

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

Lindvest Hopes to Build Village in Eastern Sarasota County

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

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

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

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

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

Source: Bradenton Herald (December 12, 2013)

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

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

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

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

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

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

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

Read more at Florida Realtors®

Trulia Optimistic for 2014

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

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

Key housing market indicators

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

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

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

Obama Scorecard Shows Housing Making Gains

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

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

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

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

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

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

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

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

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

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

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

Source: U.S. Housing and Urban Development

Smaller Lenders Increasing Their Share of Mortgage Market

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

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

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

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

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

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

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

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

Housing Confidence Grows in South (and West)

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

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

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

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

Market at 86% of 'Normal': NAHB Index

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

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

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

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

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

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

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

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

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

© 2013 Florida Realtors®

New Home Sales Rise Sharply in October

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

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

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

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

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

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

© 2013 National Association of Home Builders

US Home Prices Post Moderate Gains; Florida Above Average

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

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

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

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

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

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

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

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

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

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

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

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

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

Copyright © 2013 The Associated Press

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Foreclosed Owners Getting a Second Chance

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

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

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

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

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