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 have cut back the building of new homes in many existing projects or cancelled them all together.
  
  
• Mortgage interest rates are stable for now.
  
  
• Anxious sellers are more flexible about terms and are offering many enticements.

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 thirteenth month in a row, Florida’s existing home and condominium sales rose on a year over year basis in September. All of Florida’s metropolitan statistical areas (MSAs) reported increased existing-home and condominium sales in September and the majority of the MSAs have reported increased sales for 15 consecutive months.

Florida Real Estate - A Mid Year Southwest Florida Sales Update

Statewide, sales of existing single-family homes totaled 14,419, up 34% year over year. The statewide existing home median price was $142,000, down 19% from a year ago. Existing home sales last month also increased 4.1% over sales activity in August. 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 discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.

Existing condominium sales in September totaled 5,088 statewide and were up 77% from a year ago. The statewide median sales price for condos was $102,500, down 33% from a year ago. Existing condo sales last month also increased 8.9% over sales activity in August.

August Florida Real Estate Sales Remain Strong

Realtors® around the state are reporting ongoing increased business activity as many buyers are now scrambling 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.

National Home Sales

The National Association of Realtors said the annualized pace of existing home sales rose by 9.4% in September to 5.57 million. It is their highest sales level in two years and was 9.2% above the 5.10 million pace of September 2008. NAR's practitioner survey showed first-time buyers purchased 31% of the homes in September and distressed home sales accounted for 29% of the transactions.

The national median existing-home price for all housing types was $174,900, down 8.5% from a year ago. There remains a significant downward distortion in the current median price from the large number of distress 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 7.5% last month to 3.6 million and represented 7.8 months worth of supply. Raw inventory levels are 15% lower than a year ago when the number of unsold homes was at a record high.

Around the country regionally, sales were up in all regions. Sales increased in the Northeast by 4.4%, in the Midwest by 9.6%, in the West by 13% and in the South by 9%. The median price in the South was $153,500, which is 7.6% lower than a year ago.

Single-family home sales rose 9.4% to a rate of 4.89 million and were up 7.7% from a year ago. The median existing single-family home price was $174,900, down 8.1% from September 2008.

Existing condominium and co-op sales rosel 9.7% to a rate of 680,000 units and are 9.7% above the 561,000 unit pace in September 2008. The median existing condo price was $175,100, down 11.7% from a year ago.

The Commerce Department reported the annualized pace of housing starts rose by 0.5% in September to 590,000 units. New construction of single-family homes increased 3.9% to an annual rate of 501,000 versus 482,000 in August. The data release, a monthly report from the Census Bureau, also revealed that building permits fell by 1.2% to a rate of 573,000. The increase in starts was weak across the country. The start's rate was flat in the Northeast and Midwest and fell by 1.7% in the West and the South.

September's new home sales report showed sales fell for the first time in 5 months. Sales were down by 3.6% to 402,000 and August's number was revised downward to 417,000. The report seems to indicate that builders may have finally reached a point where a lack of lower end inventory is causing them problems, especially with first time home buyers. The median new home sales price was $204,800, down 9.1% from September 2008, but 2.5% higher than August's price of $199,900.

Sales varied around the country, falling 11% in the West and 10% in the South. Sales rose in the Midwest by 33% and were flat in the Northeast. The level of new homes on the market at the end of the month was was also down to 251,000. That's 3.8% lower than August's supply of 261,000 and the lowest inventory level in nearly 17 years. At September's sales pace, the current inventory represents 7.5 months of supply.

September's seasonally adjusted index of pending home sales rose by 6.1% and was almost 20% above September 2008 sales numbers. Pending home sales have risen for eight straight months, a pattern not seen in the history of the index since it began in 2001. The index has improved lately with many fist time homebuyers taking advantage of the $8,000 buyer tax credit. On a regional basis, the pending home sales index increase was broad based. It rose by 8.1% in the Midwest, by 10.2% in the West and by 4.9% in the South. Sales fell in the Northeast by 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 the it is just an indicator of upcoming actual sales.

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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.

Amendment 3 Set to Become Law
The Florida Amendment creating property tax exemptions for residential hurricane-proofing and energy efficiency improvements is set to become law on January 1, 2009. Amendment 3 needed a 60% approval from the voters to pass on the November 4th ballot and it received 60.5%. According to Govenor Crist, it just missed the recount threshold and has been released from the Elections Canvassing Commission.

The Amendment authorizes the Florida legislature to prohibit the consideration of certain improvements and changes to property when assessing the property's value to ad valorem taxation. These changes and improvements include those which increase resistance to wind damage, as well as the installation of renewable energy source devices. Proponents hope it will spur property owners into weatherizing and using alternative energy sources for their homes as the amount of the tax break will be equal to the increased market value from making such improvements. In addition, it applies equally to both homesteaded and non-homesteaded property owners, so rental and investment properties are also eligible for the exemption.

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

And the Foreclosure Beat Goes On - Florida Task Force Recommends Mandatory Mediation for Primary Homesteaded Foreclosure Homes

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

Gov. Crist Announces Launch of New "Government Performace" Information Website

U.S. Legislative Update

Consumer Product Safety Commission Launches Chinese Drywall Information Website

HUD Announces New Permanent FHA Mortgage Loan Limits

Property Tax Break Broadened

Guest Blogs, Articles and more...

NAR moves to ban Realtors® from using the term "MLS" on their websites, public will be left with only third party vendors and lead sellers when they look for homes using this generic search term...FreeTheMLS.com

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