This summer not only saw record-breaking heat across the nation, it saw new home sales reach levels not seen over the past nine years. Thanks to a surge in demand, a continuation of the low-interest rate environment, and low existing inventory the housing market climbed.
According to the Commerce Department, sales have been showing an over 30% increase each month this summer when compared to the same months last year.
At the same time, the supply of homes entering the market continues a downward trend. The average has been about 4.5 months at current sales prices. When compared to the average benchmark of 6 months in a balanced market it is evident that demand is high.
Houses priced between $200,000 to $399,999 remain the bulk of total housing sales, while transactions of homes priced below $150,000 or higher than $750,000 increased as well.
Matthew Pointon, a property economist at Capital Economics, said that it would not be surprising to see price hikes if builders do not speed up production if the high demand, low inventory and the persisting high sales of new homes continues.
Most economists agree that with new homes starts slowing the market will remain tight, and sales will naturally slow. With this combination, it will be easy to see the theory of supply and demand in full effect.
http://elitetitleagencyfl.com/wp-content/uploads/2016/09/US_Navy_040324-N-3228G-001_Navy_family_members_relax_on_their_front_lawn_while_movers_deliver_household_goods_to_their_new_home_on_Ford_Island.jpg15002250support_8dbahttp://elitetitleagencyfl.com/wp-content/uploads/2019/04/elite-title-400x248.pngsupport_8dba2016-09-16 16:25:292016-09-16 16:25:29Sales of new homes skyrocket to 2007 levels
Florida’s real estate market has followed a mixed pattern since the financial collapse nearly a decade ago. While there has been a significant recovery since 2008, data from the summer of 2015 shows continued increases, while some industry insiders have concerns. Here are facts about the Florida real estate market as of September 15, 2015.
Media Reports on Florida Real Estate
The Miami Herald reported on June 23 that despite price gains, “South Florida real estate may be in for a slowdown” due to a shrinking buyer pool. Then a headline on August 18 in the Washington Post said the state “could be headed for another housing slide.” The article quoted Florida real estate expert Jack McCabe as saying the state will see another “crash in prices in the next few years.” He indicated that a bubble has formed in the Miami, Fort Lauderdale and West Palm Beach markets.
Statewide Trends
While new data will be issued on September 21 at FloridaRealtors.org, the most recent market data from July showed that single family home prices were up 8.1% year-over-year, with a median price of $199,900 versus $185,000 from a year earlier. The number of closed sales in the state for the year so far was at 26,916, which was a 21.8% increase from the previous July. Townhouses and condos were also up 13.9% in sales and 9.1% in price with a median price of $150,000.
Counties with year-over-year double-digit percentage gains in single family home prices were led by Collier (23.1%), followed by Lee (17.2%), Charlotte (16.5%), Marin and St. Lucie (15.6%), Baker, Clay, Duval, Nassau and St. Johns (13%) and Okaloosa (11.4%). Only the combination of Alachua and Gilchrist Counties posted a negative change at -5.2%. Broward, Miami Beach and Palm Beach Counties combined for a 7.3% gain in prices.
Of the closed sales for July 2015, about a third were cash deals, marking a 5.9% increase from the previous July. Inventory of active listings stood at 101,074, which was down 5.3% from a year earlier. New listings were up 5% at 33,706.
2011-2015 Overview
While closed sales stabilized earlier in the decade, a growing trend has been evident since 2013. January and February have been the weakest months for sales this decade, while spring months tend to be the strongest, although June has been the peak month for sales in 2015, followed by a slight pullback in July.
http://elitetitleagencyfl.com/wp-content/uploads/2015/09/photodune-9056506-florida-xs.jpg365548support_8dbahttp://elitetitleagencyfl.com/wp-content/uploads/2019/04/elite-title-400x248.pngsupport_8dba2015-09-20 22:27:442015-09-20 22:34:56The current state of the Florida Real Estate market
Thanks to everyone who came out this weekend for our Brunch and Learn! We discussed the new TRID guidelines, plus other changes to the real estate contract!
http://elitetitleagencyfl.com/wp-content/uploads/2019/04/elite-title-400x248.png00support_8dbahttp://elitetitleagencyfl.com/wp-content/uploads/2019/04/elite-title-400x248.pngsupport_8dba2015-08-31 18:36:022015-09-20 22:35:04Brunch and Learn
We all love living in Florida. The white sandy beaches, diverse culture, active lifestyle and idyllic climate make it the perfect destination to live, work and play. But we’re not the only ones who have found our slice of paradise. The United States, and especially Florida, have seen a boom in real estate sales from foreign investors.
This past year, 23% of all real estate sales were from foreigners, according to the National Association of Realtors. The majority of our new neighbors originate from Canada, Europe, South America and China.
For Canadian buyers, Miami is among the top 5 markets in real estate investment with 73% of purchases in Florida, Arizona and California. 28% of sales of Florida real estate comes from Europeans, specifically France, Italy and Spain. While 26% comes from South Americans, originating from Venezuela, Argentina, Brazil and Columbia. 8% of sales comes from Asia, but is much higher on the West Coast of the United States.
One of the benefits of these types of transactions is that 60% of sales from foreign nationals are in cash. This results in faster and more secured closings.
So why are foreign investors buying Florida?
Besides our enticing climate and cultural landscape, foreign nationals appreciate the attractive prices and investment opportunities that US investment property affords them. With our soft economy in recent years the exchange rate has become favorable for foreign investors. In addition, the real estate bubble of 8 years ago has made home prices attainable for most foreigners looking for an investment vacation or rental property.
Who benefits from these types of transactions?
After coming off of a soft real estate period, sales have been up, making it a sellers marketing once again. Homeowners looking to sell are having an easier time of finding a buyer these days. Further, banks holding foreclosed and short sale properties are able to clear their backlog of bank owned properties.
States, counties and cities are also seeing an influx of tax income from the sale of real estate to foreign nationals. Since these are not permanent residents, they do not benefit from homestead exemption, thus paying higher tax on the full ad valorem value.
In addition, realtors are Realtors have had an increase in transactions from these buyers and the regional economy is benefitted with the boom in retail sales with our snowbird visitors.
There is little doubt that Florida has profited from the influx of buyers from foreign countries. But this type of transaction is a bit more specialized. Hiring the right real estate attorney and title company to handle the transaction will ensure a smooth closing.
http://elitetitleagencyfl.com/wp-content/uploads/2019/04/elite-title-400x248.png00support_8dbahttp://elitetitleagencyfl.com/wp-content/uploads/2019/04/elite-title-400x248.pngsupport_8dba2015-07-14 19:20:212015-09-20 22:35:11Florida's new real estate investors
http://elitetitleagencyfl.com/wp-content/uploads/2019/04/elite-title-400x248.png00support_8dbahttp://elitetitleagencyfl.com/wp-content/uploads/2019/04/elite-title-400x248.pngsupport_8dba2015-04-14 20:16:242018-05-24 20:52:28In The Biz Mixer
Sales of new homes skyrocket to 2007 levels
UncategorizedThis summer not only saw record-breaking heat across the nation, it saw new home sales reach levels not seen over the past nine years. Thanks to a surge in demand, a continuation of the low-interest rate environment, and low existing inventory the housing market climbed.
According to the Commerce Department, sales have been showing an over 30% increase each month this summer when compared to the same months last year.
At the same time, the supply of homes entering the market continues a downward trend. The average has been about 4.5 months at current sales prices. When compared to the average benchmark of 6 months in a balanced market it is evident that demand is high.
Houses priced between $200,000 to $399,999 remain the bulk of total housing sales, while transactions of homes priced below $150,000 or higher than $750,000 increased as well.
Matthew Pointon, a property economist at Capital Economics, said that it would not be surprising to see price hikes if builders do not speed up production if the high demand, low inventory and the persisting high sales of new homes continues.
Most economists agree that with new homes starts slowing the market will remain tight, and sales will naturally slow. With this combination, it will be easy to see the theory of supply and demand in full effect.
The current state of the Florida Real Estate market
UncategorizedFlorida’s real estate market has followed a mixed pattern since the financial collapse nearly a decade ago. While there has been a significant recovery since 2008, data from the summer of 2015 shows continued increases, while some industry insiders have concerns. Here are facts about the Florida real estate market as of September 15, 2015.
Media Reports on Florida Real Estate
The Miami Herald reported on June 23 that despite price gains, “South Florida real estate may be in for a slowdown” due to a shrinking buyer pool. Then a headline on August 18 in the Washington Post said the state “could be headed for another housing slide.” The article quoted Florida real estate expert Jack McCabe as saying the state will see another “crash in prices in the next few years.” He indicated that a bubble has formed in the Miami, Fort Lauderdale and West Palm Beach markets.
Statewide Trends
While new data will be issued on September 21 at FloridaRealtors.org, the most recent market data from July showed that single family home prices were up 8.1% year-over-year, with a median price of $199,900 versus $185,000 from a year earlier. The number of closed sales in the state for the year so far was at 26,916, which was a 21.8% increase from the previous July. Townhouses and condos were also up 13.9% in sales and 9.1% in price with a median price of $150,000.
Counties with year-over-year double-digit percentage gains in single family home prices were led by Collier (23.1%), followed by Lee (17.2%), Charlotte (16.5%), Marin and St. Lucie (15.6%), Baker, Clay, Duval, Nassau and St. Johns (13%) and Okaloosa (11.4%). Only the combination of Alachua and Gilchrist Counties posted a negative change at -5.2%. Broward, Miami Beach and Palm Beach Counties combined for a 7.3% gain in prices.
Of the closed sales for July 2015, about a third were cash deals, marking a 5.9% increase from the previous July. Inventory of active listings stood at 101,074, which was down 5.3% from a year earlier. New listings were up 5% at 33,706.
2011-2015 Overview
While closed sales stabilized earlier in the decade, a growing trend has been evident since 2013. January and February have been the weakest months for sales this decade, while spring months tend to be the strongest, although June has been the peak month for sales in 2015, followed by a slight pullback in July.
Brunch and Learn
UncategorizedThanks to everyone who came out this weekend for our Brunch and Learn! We discussed the new TRID guidelines, plus other changes to the real estate contract!
Florida’s new real estate investors
UncategorizedWe all love living in Florida. The white sandy beaches, diverse culture, active lifestyle and idyllic climate make it the perfect destination to live, work and play. But we’re not the only ones who have found our slice of paradise. The United States, and especially Florida, have seen a boom in real estate sales from foreign investors.
This past year, 23% of all real estate sales were from foreigners, according to the National Association of Realtors. The majority of our new neighbors originate from Canada, Europe, South America and China.
For Canadian buyers, Miami is among the top 5 markets in real estate investment with 73% of purchases in Florida, Arizona and California. 28% of sales of Florida real estate comes from Europeans, specifically France, Italy and Spain. While 26% comes from South Americans, originating from Venezuela, Argentina, Brazil and Columbia. 8% of sales comes from Asia, but is much higher on the West Coast of the United States.
One of the benefits of these types of transactions is that 60% of sales from foreign nationals are in cash. This results in faster and more secured closings.
So why are foreign investors buying Florida?
Besides our enticing climate and cultural landscape, foreign nationals appreciate the attractive prices and investment opportunities that US investment property affords them. With our soft economy in recent years the exchange rate has become favorable for foreign investors. In addition, the real estate bubble of 8 years ago has made home prices attainable for most foreigners looking for an investment vacation or rental property.
Who benefits from these types of transactions?
After coming off of a soft real estate period, sales have been up, making it a sellers marketing once again. Homeowners looking to sell are having an easier time of finding a buyer these days. Further, banks holding foreclosed and short sale properties are able to clear their backlog of bank owned properties.
States, counties and cities are also seeing an influx of tax income from the sale of real estate to foreign nationals. Since these are not permanent residents, they do not benefit from homestead exemption, thus paying higher tax on the full ad valorem value.
In addition, realtors are Realtors have had an increase in transactions from these buyers and the regional economy is benefitted with the boom in retail sales with our snowbird visitors.
There is little doubt that Florida has profited from the influx of buyers from foreign countries. But this type of transaction is a bit more specialized. Hiring the right real estate attorney and title company to handle the transaction will ensure a smooth closing.
Brunch & Learn
UncategorizedA great turnout at the April Brunch & Learn!
In The Biz Mixer
UncategorizedA great time was had by everyone at the In The Biz mixer. Be sure to join us next time!