Florida’s Housing Market Continues Steady Course in 2Q 2014

ORLANDO, Fla., Aug. 12, 2014

Florida’s housing market reported higher median prices, more new listings and gains in inventory during the second quarter of 2014, according to the latest housing data released by Florida Realtors®. Closed sales of single-family homes statewide totaled 67,579 in 2Q 2014, up 7.3 percent over the 2Q 2013 figure.

“Florida’s housing market continued its steady course during the second quarter of 2014,” said 2014 Florida Realtors® President Sherri Meadows. “As of June, the state’s unemployment rate is 6.2 percent. More jobs are being created, which is good news for Florida’s economy and a strong housing market.

“And in another positive trend, median prices continue to rise, though the pace has slowed somewhat over the past several months. The statewide median price for single-family homes for 2Q 2014 was $180,000, up 22 percent over two years (compared to the 2Q 2012 median price of $147,450); and the statewide townhome-condo median price of $142,000 rose 29 percent looking at the same period ($110,000 in 2Q 2012).”

The 2Q 2014 statewide median sales price for single-family existing homes rose 5.3 percent from the same time a year ago, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties during the second quarter was up 10.1 percent over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

Statewide, new listings for single-family homes over the three-month-period rose 11.5 percent year-over-year, while new townhouse-condo listings rose 2.8 percent.

Looking at Florida’s townhouse-condo market, statewide closed sales totaled 30,918 during 2Q 2014, down 3.4 percent compared to 2Q 2013. The closed sales data continued to reflect fewer short sales over the three-month period: Short sales for condo-townhouse properties declined 59.8 percent while short sales for single-family homes dropped 52.6 percent. Closed sales typically occur 30 to 90 days after sales contracts are written.

“The second quarter numbers show that Florida’s real estate market is settling in,” said Florida Realtors Chief Economist Dr. John Tuccillo. “While prices throughout the state tend to be up, sales are mixed with single family sales growing, and condos and townhouses declining. There are a lot of reasons for this, but the major factors are the reduced role of bulk investors, along with the difficulties faced by households with essentially flat incomes and thus limited access to mortgage credit. This market is sustainable, but either or both of these roadblocks must be removed if it’s to take off again.”

In20 2Q 2014, the median days on market (the midpoint of the number of days it took for a property to sell during that time) was 55 days for single-family homes and 56 days for townhouse-condo properties.

Inventory was at a 5.6-months’ supply in the second quarter for single-family homes and at a 5.8-months’ supply for townhouse-condo properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.23 percent for 2Q 2014, up from the 3.69 percent average recorded during the same quarter a year earlier.

To see the full statewide housing activity reports, go to Florida Realtors Media Center at http://media.floridarealtors.org/ and look under Latest Releases, or download the 2Q 2014 data report PDFs under Market Data at: http://media.floridarealtors.org/market-data

June Existing-Home Sales Reach Recent Highs

RISMEDIA, Wednesday, July 23, 2014

During the month of June, existing-home sales reached an annual pace of 5 million sales for the first time since October 2013, according to data recently released by the National Association of REALTORS®. In addition to the heightened existing-home sales, rising inventory continued to move the housing supply forward, signaling a strengthened and more balanced market.

Lawrence Yun, NAR chief economist, says housing fundamentals are moving in the right direction. “Inventories are at their highest level in over a year and price gains have slowed to much more welcoming levels in many parts of the country. This bodes well for rising home sales in the upcoming months as consumers are provided with more choices,” he says. “On the contrary, new home construction needs to rise by at least 50 percent for a complete return to a balanced market because supply shortages—particularly in the West—are still putting upward pressure on prices.” Read the full article

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Area home prices to jump by double-digits in next year, research group says

By JUNE FLETCHER | Wednesday, June 4, 2014

NAPLES — Single-family home prices in Naples-Marco Island are the highest in Florida — and still have room to run, researcher Local Market Monitor said.

Prices in Cape Coral-Fort Myers also will stay on a tear for the next few years, the Cary, N.C.-based firm forecast.

Ingo Winzer, the firm’s president, is bullish on Southwest Florida because of strong job growth, particularly in tourism and retail; incomes that rank among the highest in Florida; and continued interest from investors.

“Combine speculative interest with good fundamental economic demand and you have a lot of people who want to buy property,” he said Wednesday.

In its residential real estate report for the second quarter, Local Market Monitor said single-family home prices for the Naples area reached a median of $276,086, the highest in any of the 20 cities they tracked in Florida. That’s an 8 percent bump from the same quarter a year earlier.

Cape Coral-Fort Myers was ninth on the list, with prices reaching a median of $184,976 for the quarter, a 12 percent jump from the year before.

Both markets will experience double-digit growth over the coming year, Local Market Monitor predicted.

Prices in Naples-Marco Island are expected to rise an additional 11 percent by the second quarter of 2015, while Cape Coral-Fort Myers will rise another 12 percent.

By the second quarter of 2017, cumulative price increases for the three-year period will have reached 29 percent in Naples-Marco Island and 31 percent in Cape Coral-Fort Myers.

Despite the predicted increases, Winzer is confident Southwest Florida isn’t headed for bubble territory.

Given rising demand and the healthy local economy, “prices are 20 percent lower than they ought to be,” he said.

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NABOR First Quarter Report Indicates 2014 Off to a Strong Start

A service from the Naples Area Board of REALTORS® | Naples, Fla. (April 17, 2014)

Million dollar home sales in Naples continue to skyrocket with the $2 million and above single family home market increasing 83 percent from 48 sales in the first quarter of 2013 to 88 sales in the first quarter of 2014, according to the 2014 First Quarter Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Overall closed sales increased 5 percent from 2,237 in the first quarter of 2013 to 2,352 in the first quarter of 2014. However, closed sales in all price categories above $300,000 increased by double digits with the $2 million and above price category experiencing the highest increase of 80 percent from 61 sales in the first quarter of 2013 to 110 sales in the first quarter of 2014.

Overall, homes in the $300,000 and below price category realized the biggest median closed price adjustment from $159,000 in the first quarter of 2013 to $173,000 in the first quarter of 2014, which reflected a 9 percent increase.

“NABOR reports statistics based on activity in the Southwest Florida MLS [multiple listing system],” said Pat Pitocchi, NABOR® president and corporate trainer at Downing-Frye Realty. “However, the system does not compile all commercial real estate activity or new construction activity.”

According to Wes Kunkle, a commercial broker at Kunkle Realty and NABOR® president in 2013, activity has increased in commercial real estate for the first quarter as well. Activity was also impressive in the new home construction market during the first quarter according to Brett Brown, Director of Sales and Managing Broker for Fiddler’s Creek Realty, Inc.

In the first quarter of 2014, a total of 270 homes with a median closed price of $1 million and above exchanged hands in Collier County (excluding Marco Island), up 65 percent from 176 closed sales in that category during the first quarter of 2013, according to the report.

“The Naples area housing market does not appear to be slowing down,” said Pitocchi. “REALTORS are busy; especially agents who are showing homes priced over $1 million. In addition, for the first quarter of 2014, cash sales are continuing to dominate the market as shown by sales of 74 percent versus financed sales of 26 percent.”

Inventory in all price ranges has continued to decline. In the first quarter of 2014 there were 4,405 available properties, a 14 percent decrease from the 5,136 available during the same quarter last year.

As reflected in the statistics, the tight supply and high demand of homes is not triggering dramatic price increases. The median closed price in the price segments above $300,000 increased 9 percent from $540,000 in the first quarter of 2013 to $590,000 in the first quarter 2014.

The NABOR® 2014 First Quarter Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® First Quarter 2014 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

• Overall closed sales increased 5 percent from 2,237 sales in the first quarter 2013 to 2,352 sales in the first quarter of 2014.
• The overall median closed price increased 15 percent from $230,000 in the first quarter 2013 to $265,000 in the first quarter 2014. The overall median closed price of homes $300,000 and under increased 9 percent from $159,000 in the first quarter 2013 to $173,000 in the first quarter 2014.
• The overall average days on market are at 95 for the first quarter of 2014.
• Overall pending sales increased 45 percent for homes $2 million and above from 120 contracts in the first quarter of 2013 to 174 contracts in the first quarter of 2014.
• Inventory for condominiums decreased 23 percent from 2,758 units in the first quarter of 2013 to 2,110 units in the first quarter of 2014, while inventory for single-family homes decreased only 3 percent from 2,378 units in the first quarter of 2013 to 2,295 units in the first quarter of 2014.

The NABOR® March 2014 Report reflects sales statistics presented in chart format, with these overall single-family and condominium statistics:

• Overall closed sales increased 42 percent in the $2 million and above price category from 245 sales in the 12-months ending March 2013 to 348 sales in the 12-months ending March 2014.
• Overall pending sales increased 4 percent from 10,633 contracts in the 12-months ending March 2013 to 11,083 contracts in the 12-months ending March 2014.
• Overall median closed price increased 15 percent from $215,000 in the 12-months ending March 2013 to $248,000 in the 12-months ending March 2014, with the under $300,000 price segment experiencing the largest increase of 11 percent from $148,000 in the 12-months ending March 2013 to $165,000 in the 12-months ending March 2014.
• Closed sales for condominiums increased 10 percent from 4,694 sales in the 12-months ending March 2013 to 5,140 sales in the 12-months ending March 2014.
• The median closed price of single-family homes increased 25 percent from $248,000 in the 12-months ending March 2013 to $310,000 in the 12-months ending March 2014.

“According to the report, distressed sales – foreclosures and short sales – now account for only one in ten transactions,” said Steve Barker, Advising Broker for Equity Realty. “This represents an important milestone and indicates that Naples has returned to a stable real estate market.”

“Despite a low inventory, sales are strong because the inventory is continually being sold and replenished. List your home with a REALTOR® who can help you price it correctly and it will likely sell quickly,” said Pitocchi.

The Naples Area Board of REALTORS® (NABOR®) is an established organization (Chartered in 1949) whose members have a positive and progressive impact on the Naples Community. NABOR® is a local board of REALTORS® and real estate professionals with a legacy of nearly 60 years serving 4,000 plus members. NABOR® is a member of the Florida Realtors and the National Association of REALTORS®, which is the largest association in the United States with more than 1.3 million members and over 1,400 local board of REALTORS® nationwide. NABOR® is structured to provide programs and services to its membership through various committees and the NABOR® Board of Directors, all of whose members are non-paid volunteers.

The term REALTOR® is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribe to its strict Code of Ethics.

More About Buying A Home:
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Naples Makes Top 10 Turnaround List

From realtor.com

Naples, FL is a newcomer to the Top 10 Turnaround Town list this quarter, powered by a 13.38 percent year-over-year increase in median list prices, seventh best in the nation overall, and a 35.94 percent reduction in for sale inventory. The median age of inventory in Naples is down 13.64 percent compared to a year ago. Demand in Naples, FL has been fueled by foreign buyers as the MSA attracts 6 percent of Florida?s international sales.  While not everyone is bullish on Naples, sales are up and prices are moderating.  The latest sales data from the Naples Board of Realtors confirms that the market is in the midst of change, but moving in the right direction.  Sales of November single family homes are up 8 percent from November 2010 but sale prices are down 13 percent.  Inventory is down 21 percent from a year ago.

“This past year, in general, has been swift for buyers putting pen to paper, however since our season (generally Christmas time through Easter) has started, our buyer clients have been intent on getting something under contract.  This is a different perspective than many of our clients had last season.  Our last two listings went under contract in 30 days and both closed for 97% of asking price,?said Rowan Samuel, Realtor. ?We have been saying this all along; if you are priced competitively to the market, your home will sell.  The inventory in our area continues to decrease, and the presence of short sales and foreclosures has reduced dramatically.  In some of the more popular areas, we have not seen a distressed sale enter the market in months.”  Read the full article on realtor.com

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