Southwest Florida News and Articles
Real Estate News
As Realtors® and Lenders, one of the most important tasks we have is to stay aware of news events which affect the real estate markets. We do this not only because it is important for us to be able to provide quality service to our clients, but also to keep ourselves informed of the type of things which may impact all of us here in Southwest Florida.
Therefore, we are providing the following information to help keep you aware of the local, state and national real estate news which may affect either buyers or sellers of Southwest Florida real estate. And, since these type of news events are constantly changing, we update this information on a regular basis. So, check back often to keep yourself abreast of the latest news for Southwest Florida real estate.
A Few Reasons Why the Southwest Florida Real Estate Market is Improving
- With the continued decrease in prices, some by 40% or more, buyers are finding many good deals available.
- Prices have stabilized in many areas and inventory is finally starting to fall.
- Developers are selectively building new homes again in many existing projects and are heavily discounting their pricing.
- Mortgage interest rates are at all time lows.
- Anxious sellers are more flexible about terms and are offering many enticements.
- Reasons Why Florida's Housing Market Will Continue to Prosper
Thus, as we move on from here, buyers can look forward to a good "window of opportunity" for purchasing property in Southwest Florida.
Florida Home Sales and Prices
For the first time in 22 months, Florida’s existing home and condominium sales fell on a year over year basis in July. However, condominium sales continued to rise. Eleven of Florida’s metropolitan statistical areas (MSAs) reported increased existing condominium sales. A majority of the MSAs in Florida have reported an increased home and/or condominium sales for 25 consecutive months. In addition, July also broke a string of four months in a row that the statewide existing home median price had increased over the previous month's median.
Statewide, sales of existing single-family homes totaled 13,589, down 14% year over year. The statewide existing home median price was $138,000, down 7% from a year ago. According to housing industry analysts, sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a 15% - 20% discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.
Existing condominium sales in July totaled 5,557 statewide, up 11% from a year ago. The statewide median sales price for condos was $87,200 down 20% from a year ago.
Realtors® around the state are still reporting ongoing increased business activity as many buyers continue to scramble to buy their piece of paradise. Most are doing so because they have come to the realization that the current prices are just too good to pass up any longer and they need to take advantage of the discounted sales prices before things change again. With inventories declining in many market areas, really good buying opportunities in the most desirable communites are getting harder to find.
National Home Sales
The National Association of Realtors said the annualized pace of existing home sales fell by 27.2% in July to 3.83 million and are 25.5% below the 5.14 million level in July 2009. Sales are at the lowest level since the total existing-home sales series launched in 1999, and single family sales are at the lowest level since May of 1995. NAR's practitioner survey showed first-time buyers purchased 38% of the homes in June and distressed home sales accounted for 32% of the transactions.
The national median existing-home price for all housing types was $182,600, up 0.7% from a year ago. However, there is still a significant downward distortion in the current median price from the large number of distressed sales at discounted prices. Distressed homes are typically selling for 15% to 20% less than the normal market price. Inventories of homes on the market fell 2.5% last month to 3.98 million and represented 12.5 months worth of supply. Raw inventory levels are 12.9% lower than a year ago.
Around the country, sales were down in all four regions. Sales decreased in the Northeast by 29.5% and fell 35% in the Midwest, 25% in the West and 23% in the South. The median price in the South was $156,300, down 3.3% from a year ago.
Single-family home sales fell 27.1% to a rate of 3.37 million and are down 25.6% from a year ago. The median existing single-family home price was $183,400, up 0.9% from June 2009.
Existing condominium and co-op sales fell 28.1% to a rate of 460,000 units and are 24% below the 605,000 unit pace of June 2009. The median existing condo price was $176,800, down 1.7% from a year ago.
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The Commerce Department reported the annualized pace of housing starts rose by 1.7% in July to 546,000 units. Starts for single-family homes fell 4.2% to an annual rate of 432,000 units. Multifamily units rose 33% to a 114,000 unit annual pace. The data release, a monthly report from the Census Bureau, also revealed that building permits fell by 3.1% to a rate of 565,000. The inventory of total houses under construction dropped 1.1% to a record low of 444,000 units last month, while the total number of permits authorized but not yet started fell 1.5% to 89,000 units. By region, the decrease in starts was led by a 6.3% fall in the South. Starts rose by 31% in the Northeast and by 10.7% in the Midwest. Starts were unchanged month over month in the West.
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July's new home sales report showed sales fell 12.4% to an annual rate of 276,000. It was the lowest annual number on record and was 32.4% below July 2009 sales numbers.
Around the country regionally, sales fell in all four regions. They were led by a 25% in the West. Sales also fell by 14% in the Northeast, 9% in the South and 8% in the Midwest. The median new home sales price was $204,000, down 4.8% from a year ago and 6% from June's sales level. The average sale price was $235,300. The level of new homes on the market at the end of the month was unchanged at 210,000. Inventories are at their lowest levels in 42 years and at July's sales pace represents 9.1 months of supply.
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July's seasonally adjusted index of pending home sales rose 5.2% but were 19.1% lower than last years sales. The falloff continues on the heels of the expiration of the home buyers tax credit. Economists are now questioning what happens next in the housing market. On a regional basis, the pending home sales index was up in all of the 4 national regions. Sales rose by 11.6% in the West, 6.3% in the Northeast and 4.1% in the Midwest. Pending sales also rose in the South by 1.2%. It is important to keep in mind that the pending sales information is somewhat dated and its significance is diluted by the fact that it is just an indicator of upcoming actual sales.
Real Estate Articles
Florida Amendment 3 Derailed From November Ballot
Florida Condo Associations Get Welcome Foreclosure Relief
Changes to Lending Rules for Florida Condos
Defective Drywall - New CPSC Guidelines
Southwest Florida Attracting International Buyers
Florida Legislative Update
Short Sales and Florida Doc Stamp Taxes
In a stunning reversal, The Florida Department of Revenue (DOR) issued a new ruling stating that doc stamp taxes owed on a short sale should be based on the sale price paid by the purchaser and "not on the sales price plus any amount forgiven by the home seller's lender." The ruling is effective immediately.
Questions about the January Real Estate Tax Amendment Changes?
The Florida Department of Revenue (DOR) is the best source for up-to-date information, including documents and forms related to portability, the additional homestead exemption and the tangible personal property tax exemption.
For more information on any of the above changes, visit the DOR Website
Florida Homebuyer Opportunity Program (FL HOP)
Short Sales and the Florida Foreclosure Rescue Fraud Law
Florida's Homeowners' Insurance Bill of Rights Signed Into Law
U.S. Legislative Update
New Government Short-Sale Program Starts Monday April 5th
Congress Extends Tax Credit and Flood Insurance Programs
Tax Credit Extended for Qualified Service Members
Two Important IRS Clarifications for Claiming the Tax Credit
New HUD Guidance for Property Flippers and First Time Buyers
New HUD Guidance for FHA Loans and Short Sales
Consumer Product Safety Commission Launches Chinese Drywall Information Website
To view more Florida real estate and mortgage related information, please visit our
Southwest Florida Blog and Southwest Florida Real Estate Blog
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