Southwest Florida News and Articles

Real Estate News

As Realtors®, 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

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 only the third time in the last 40 months, Florida's existing home and/or condominium sales fell in December. Sixteen of Florida's metropolitan statistical areas (MSA's) reported higher existing home and condominium sales, however, overall all sales were down just slightly. A majority of the MSA's have reported increased home and/or condominium sales for 42 consecutive months. In addition, 2011 year end existing home sales were up 8% and year end condominium sales were up 15%. It was the third consecutive year for statewide home and condo sales activity to end the year on a positive upswing – record breaking higher year-over-year sales.

Statewide, sales of existing single-family homes totaled 15,290, down 2% year over year. The statewide existing home median price was $134,300, up 1% 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 10% - 25% discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.

Existing condominium sales totaled 6,836 statewide, also down 2% from a year ago. The statewide median sales price for condos was $91,900. That was up 4% 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 rose by 5% in December to 4.61 million and are 3.6% above the 4.45 million level of a year ago. NAR's chief economist, said "The pattern of home sales in recent months demonstrates a market in recovery." "Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market." For all of 2011, existing home sales rose 1.7% to 4.26 million from 4.19 million in 2010. One drawback in the market continues though. It is that an elevated level of contract failures continues to hold back a broader sales recovery. Contract failures were reported by 33% of NAR members in December, unchanged from November but notably above a year ago levels when it was at 9%. NAR's practitioner survey showed first-time buyers purchased 31% of the homes in December and distressed home sales accounted for 32% of the transactions.

The national median existing-home price for all housing types was $164,500, down 2.5% 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 10% to 25% less than the normal market price. Inventories of homes on the market fell 9.2% last month to 2.38 million and represented 6.2 months worth of supply.

Around the country, sales were up in all four national regions. The Northwest rose by 10.7%, the Midwest by 8.3%, the West by 2.6% and the South by 2.9%. The median price in the South was $146,900, down 1.1% from a year ago.

Single-family home sales rose 4.6% to a rate of 4.11 million and are up 4.3% from a year ago. The median existing single-family home price was $165,100, down 2.5% from December 2010.

Existing condominium and co-op sales were up 8.7% to a rate of 500,000 units and are 2% lower than the 510,000 unit pace of December 2010. The median existing condo price was $160,000, down 3% from a year ago.

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The Commerce Department reported the annualized pace of housing starts fell by 4.1% in December to 657,000 units but were still 24.9% higher than a year ago. Starts for single-family homes rose 4.4% to an annual rate of 470,000 units. Multi-family units fell 27.8% to a 164,000 unit annual pace. A total of 606,900 housing units were started in 2011. That was 3.4% above the 2010 figure of 586,900. The data release, a monthly report from the Census Bureau, also revealed that building permits fell by 0.1% to a rate of 679,000 but were also up by 7.8% from a year ago.

Privately-owned housing completions in December were up 9.2% at a annual rate of 605,000 and were also 7.1% above the November 2010 rate of 554,000. Single-family housing completions were at a rate of 448,000; that was 0.9% below the November rate of 452,000. Multi-family units were up 48.5% to a 147,000 unit completion annual rate.

The inventory of total houses under construction was down 0.3% to 429,000 units, while the total number of permits authorized but not yet started were up at 78,800 units. By region, starts fell in three of the four national areas. The Northeast was down by 41.2%, the West by 17.6% and the South by 3%. The Midwest rose by 54.8%.

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December's new home sales report showed sales were down 2.2% to an annual rate of 307,000 and were 7.3% below the December 2010 numbers. An estimated 302,000 new homes were sold in 2011. That was 6.2% below the 323,000 sold in 2010.

Around the country regionally, sales were down in two of the four national regions. Sales rose by 46.7% in the Northeast and by 9% in the West. Sales were down by 10.1% in the South and by 3.7% in the Midwest. The median new home sales price was $211,3100, down 2% from November. The average sales price was $266,000. The level of new homes on the market at the end of the month was 157,000. Inventories are at their lowest levels since 1967 and at November's sales pace represents 6.1 months of supply.

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December's seasonally adjusted index of pending home sales fell by 3.5% but are still 5.6% above last year's number. After reaching a 19-month high in November along with seven straight previous months of gains, a pullback was not unexpected. In addition, one glaring problem remains evident - contract failures (most due to lending issues) are widespread and effecting the markets. On a regional basis, the pending home sales index was down in 3 of the 4 national regions. Sales fell by 11% in the West, by 3.1% in the Northeast, and by 2.6% in the South. Sales rose by 4% in the Midwest. 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.

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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.

Questions about the Florida 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

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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
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