UF: Florida real estate market has hit bottom
GAINESVILLE, Fla. – April 29, 2010 – Florida real estate markets show the first tentative signs of recovering from the most painful recession in the state's history, according to the latest University of Florida (UF) report.
"Results of our first quarter survey indicate that the real estate market in Florida has hit bottom and is in the process of stabilizing across most property types," says Timothy Becker, director of UF's Bergstrom Center for Real Estate Studies.
But while most of the survey respondents report the market probably won't get any worse, few say it has actually begun to improve yet, Becker says. "One of our respondents summed it up by stating that 'if anything, we will get less bad.'"
On the positive side, private capital – both foreign and domestic – is continuing to enter the state in search of quality investment deals. As banks start to deal with their problem assets, more deals will come to market.
Another good sign: Life insurance companies have started to re-invest in commercial properties after backing off for the last year and a half, Becker says. Because these companies use premiums from life insurance policies to make investments, they are not deterred by the lack of available bank financing.
"(Life insurance companies) see the fundamentals of the economy stabilizing and they see the opportunity to get quality assets at a good price," Becker says. "So if they think things aren't going to get worse and they may actually get better, it follows that they're going to want to start investing again."
On the negative side, unemployment continues to be one of the state's biggest problems, edging up to 12.3 percent in March, its highest level since the state began keeping count in the 1970s. Florida has lost more than 880,000 jobs since 2007.
Although there is a potential for job growth later in the year, even under the most optimistic assumptions it will take three to four years to return to 2006 levels, Becker says.
Also of concern is the continued reluctance of commercial banks to lend money because of pressure from regulators to manage risks along with depressed values that make it difficult to refinance mortgages.
The retail and office markets are the worst off, Becker says. "Until there is an increase in job growth, there is no need for more office space, and people aren't spending as much money as they used to."
Apartments continue to be the best market in the state due to high demand from people moving out of foreclosed homes. "More people are going to be living in temporary spaces than trying to buy homes just because it's gotten a lot more difficult to buy homes from a financing perspective," Becker says.
Statewide, Florida's new housing market will continue to be slow, a result of more foreclosed homes becoming available. "That competition makes it very difficult for new homes to get built and purchased because buyers can often get an equal or nicer home for a much cheaper price on the foreclosure market," Becker says.
One of the strongest areas of the state is South Florida, especially Miami-Dade and Broward counties, with their diverse economies, steady migration and influx of foreign capital. "The glut of condos in South Florida is actually starting to change hands – they're beginning to rent them – and I think there is more life in downtown Miami than there has been in a long time," Becker says.
Orlando, Tampa and Jacksonville also are picking up. "Florida's big cities – those four areas – are less bad off than the rest of the state, and they're going to recover quicker than other places," Becker says.
Jacksonville, in particular, is in a good position because its housing market never got as hot as other markets; and, as a result, it doesn't have as many foreclosures. "I think Jacksonville is primed to really take off, and with the expansion of the port is going to have a lot of jobs coming into the marketplace," Becker says.
A positive note overall is that survey respondents' confidence in their own business has risen for the fifth consecutive quarter. In previous breakdowns by profession, developers and lenders had extremely low expectations for their own businesses, and that has grown substantially in the last few surveys.
"It's always a good sign for us that the lenders think their business is going to get better," Becker says. "Maybe it means there is some light at the end of the tunnel, even though we're still not at a great spot."
© 2010 Florida Realtors®
Thursday, April 29, 2010
Thursday, April 22, 2010
Orlando home sales increase
April 22, 2010
From today's ORLANDO BUSINESS JOURNAL
Orlando home, condo sales up in March
Existing home sales in Florida rose 24 percent in March, with 16,294 homes sold statewide compared to 13,090 homes sold in March 2009, said Florida Realtors.
In addition, while March's statewide existing-home median price of $137,000 was down 3 percent from $141,300 a year ago, it was 4.3 percent higher than February's statewide existing-home median price.
Florida Realtors also reported a 63 percent increase in statewide sales of existing condos in March compared to the previous year's sales figure, with 7,148 units sold compared to 4,387 in March 2009.
March's statewide existing-condo median price of $96,900 was down 11 percent compared to the year-ago figure of $108,500, but it was 5.1 percent higher than February's statewide existing-condo median price.
In metro Orlando, 2,489 existing home sales took place in March, a 36 percent increase over 1,828 in March 2009.
The median price for homes in March 2010 was $132,200 in the metro area, a 12.7 percent decrease from $151,500 in the year-ago period.
Meanwhile, 790 condo units sold in March compared with 364 a year ago, a 117 percent increase. However, the median price fell 11 percent to $49,700 compared with $55,700 a year ago.
From today's ORLANDO BUSINESS JOURNAL
Orlando home, condo sales up in March
Existing home sales in Florida rose 24 percent in March, with 16,294 homes sold statewide compared to 13,090 homes sold in March 2009, said Florida Realtors.
In addition, while March's statewide existing-home median price of $137,000 was down 3 percent from $141,300 a year ago, it was 4.3 percent higher than February's statewide existing-home median price.
Florida Realtors also reported a 63 percent increase in statewide sales of existing condos in March compared to the previous year's sales figure, with 7,148 units sold compared to 4,387 in March 2009.
March's statewide existing-condo median price of $96,900 was down 11 percent compared to the year-ago figure of $108,500, but it was 5.1 percent higher than February's statewide existing-condo median price.
In metro Orlando, 2,489 existing home sales took place in March, a 36 percent increase over 1,828 in March 2009.
The median price for homes in March 2010 was $132,200 in the metro area, a 12.7 percent decrease from $151,500 in the year-ago period.
Meanwhile, 790 condo units sold in March compared with 364 a year ago, a 117 percent increase. However, the median price fell 11 percent to $49,700 compared with $55,700 a year ago.
Monday, April 19, 2010
Delinquent Mortgage Numbers Decline
Daily Real Estate News | April 19, 2010 |
Number of Delinquent Mortgages Declines
The number of delinquent mortgages declined 8.6 percent in March, says LPS Applied Analytics, which tracks the performance of loans for investors. Totals also declined in February.
The biggest decline was in loans more than 30 days past due, which are now at about the same level as they were in spring 2008.
"We're not out of the woods, but this appears to be a turning point," says LPS Applied Analytics President Ted Jadlos. "This is the first time we've seen improvement across all stages of mortgage delinquency."
Source: The Wall Street Journal, Ruth Simon (04/19/2010)
Number of Delinquent Mortgages Declines
The number of delinquent mortgages declined 8.6 percent in March, says LPS Applied Analytics, which tracks the performance of loans for investors. Totals also declined in February.
The biggest decline was in loans more than 30 days past due, which are now at about the same level as they were in spring 2008.
"We're not out of the woods, but this appears to be a turning point," says LPS Applied Analytics President Ted Jadlos. "This is the first time we've seen improvement across all stages of mortgage delinquency."
Source: The Wall Street Journal, Ruth Simon (04/19/2010)
Friday, April 16, 2010
7 Cities with Great Real Estate Deals
April 16, 2010
From today's Forbes' Investopedia:
7 U.S. Cities With Great Real Estate Deals
Bobbi Dempsey
You've probably heard it a million times recently: it's a buyer's market right now in real estate. That's actually a big understatement - it's a huge buyer's market. That's bad news for sellers, but good news for you if you're in the market for a new house (and can get financing). While there are attractive deals to be had nationwide, certain areas have a big inventory of affordable homes available now. You can see a full list of such places on HousingTracker.net, but here are some cities our experts have cited as being especially good choices for bargain-minded buyers.
Phoenix
This city has one of the strongest economies in the country right now, according to our experts.
"Good universities in the area have provided a skilled and educated workforce, which has positioned Phoenix as a competitive force in business," says Bill Humphrey, senior vice president and managing director of XONEX Relocation, which provides global relocation services for transferring employees.
"Phoenix is projected to see more growth, especially since the technology, green energy and healthcare/life sciences industries have started to put down roots in the area." Humphrey says houses that were selling for $500,000 before the recession are now in the $300,000 range. (With houses going cheap, there are bound to be problems. Find out more in Avoiding Foreclosure Scams.)
Houston
"The Houston market has a very diversified economy and is home to numerous industries including technology, energy, aerospace and aviation, logistics and manufacturing," Humphrey says. Humphrey credits Houston's solid employment numbers - and the projected growth - to its business-friendly environment, adding that the city's crime rates have seen double-digit decreases over the past ten years.
"There is lots of inventory available, and prices are still very reasonable."
New Orleans
Needless to say, the Big Easy is in a rebuilding period right now, in the wake of some challenging times. The silver lining: "the city has major growth potential and is on the cusp of a big renaissance," says Humphrey. "The community has really come together to rebuild its infrastructure, pride and spirits, making it a nice place to live. Also, Louisiana has shown the greatest unemployment improvement and New Orleans has the lowest jobless rate of any other metro city in its class."
While Humphrey admits there is still some work to be done, he says the city is headed in the right direction and smart shoppers will buy now. "Prices are low and inventory is available."
Atlanta
"Prices have tumbled dramatically, and there are multiple 'mini-mansions' available at bargain prices," says Robert Eisenstein of HomeRun Homes, which operates the Lease2Buy.com site targeting rent-to-own buyers and sellers.
"Most of the properties are not in need of anything more than a little bit of cosmetic work." Inventory seems to be plentiful in this area. According to HousingTracker, there are currently 87,000 single family homes and condos available in Atlanta.
Orlando, Florida
The central Florida area has always been a hotspot for bargains, says Eisenstein, "but with the recent beating the market has taken, prices are lower than ever. There is a mix of very beautiful homes that don't need any work - and there are also homes that need some renovation, but the prices are reflective of this."
Haverhill, Massachusetts
Several experts mentioned the Boston suburbs in general as a good place for great deals, but Haverhill in particular seems to have a lot to offer - no matter what your price range is.
"You can buy a brand new mid-level executive style home in the mid $380,000 to $450,000 range or find a first time buyer move-in condition property at around $170,000," says Lisa Johnson, vice president at Coldwell Banker Residential Brokerage in Haverhill. "Condominiums can be found in the $50,000 to $60,000 range."
Johnson says the area has a lot of great perks, from a thriving bar/club scene to a downtown restaurant district that can rival those of big cities.
Philadelphia
"The MLS lists many properties selling for less than $50,000," says Diane Smith, a real estate agent and Lexicon Realty mortgage broker. "In the $100,000 range there are many houses selling for $10,000 to $20,000 under value as a result of foreclosures and other economic issues."
The Housing Bottom Line
If you're looking for a great deal - and want to explore exciting new areas - focusing on areas with high inventory and low prices can be your ticket to a fantastic bargain on your next home.
From today's Forbes' Investopedia:
7 U.S. Cities With Great Real Estate Deals
Bobbi Dempsey
You've probably heard it a million times recently: it's a buyer's market right now in real estate. That's actually a big understatement - it's a huge buyer's market. That's bad news for sellers, but good news for you if you're in the market for a new house (and can get financing). While there are attractive deals to be had nationwide, certain areas have a big inventory of affordable homes available now. You can see a full list of such places on HousingTracker.net, but here are some cities our experts have cited as being especially good choices for bargain-minded buyers.
Phoenix
This city has one of the strongest economies in the country right now, according to our experts.
"Good universities in the area have provided a skilled and educated workforce, which has positioned Phoenix as a competitive force in business," says Bill Humphrey, senior vice president and managing director of XONEX Relocation, which provides global relocation services for transferring employees.
"Phoenix is projected to see more growth, especially since the technology, green energy and healthcare/life sciences industries have started to put down roots in the area." Humphrey says houses that were selling for $500,000 before the recession are now in the $300,000 range. (With houses going cheap, there are bound to be problems. Find out more in Avoiding Foreclosure Scams.)
Houston
"The Houston market has a very diversified economy and is home to numerous industries including technology, energy, aerospace and aviation, logistics and manufacturing," Humphrey says. Humphrey credits Houston's solid employment numbers - and the projected growth - to its business-friendly environment, adding that the city's crime rates have seen double-digit decreases over the past ten years.
"There is lots of inventory available, and prices are still very reasonable."
New Orleans
Needless to say, the Big Easy is in a rebuilding period right now, in the wake of some challenging times. The silver lining: "the city has major growth potential and is on the cusp of a big renaissance," says Humphrey. "The community has really come together to rebuild its infrastructure, pride and spirits, making it a nice place to live. Also, Louisiana has shown the greatest unemployment improvement and New Orleans has the lowest jobless rate of any other metro city in its class."
While Humphrey admits there is still some work to be done, he says the city is headed in the right direction and smart shoppers will buy now. "Prices are low and inventory is available."
Atlanta
"Prices have tumbled dramatically, and there are multiple 'mini-mansions' available at bargain prices," says Robert Eisenstein of HomeRun Homes, which operates the Lease2Buy.com site targeting rent-to-own buyers and sellers.
"Most of the properties are not in need of anything more than a little bit of cosmetic work." Inventory seems to be plentiful in this area. According to HousingTracker, there are currently 87,000 single family homes and condos available in Atlanta.
Orlando, Florida
The central Florida area has always been a hotspot for bargains, says Eisenstein, "but with the recent beating the market has taken, prices are lower than ever. There is a mix of very beautiful homes that don't need any work - and there are also homes that need some renovation, but the prices are reflective of this."
Haverhill, Massachusetts
Several experts mentioned the Boston suburbs in general as a good place for great deals, but Haverhill in particular seems to have a lot to offer - no matter what your price range is.
"You can buy a brand new mid-level executive style home in the mid $380,000 to $450,000 range or find a first time buyer move-in condition property at around $170,000," says Lisa Johnson, vice president at Coldwell Banker Residential Brokerage in Haverhill. "Condominiums can be found in the $50,000 to $60,000 range."
Johnson says the area has a lot of great perks, from a thriving bar/club scene to a downtown restaurant district that can rival those of big cities.
Philadelphia
"The MLS lists many properties selling for less than $50,000," says Diane Smith, a real estate agent and Lexicon Realty mortgage broker. "In the $100,000 range there are many houses selling for $10,000 to $20,000 under value as a result of foreclosures and other economic issues."
The Housing Bottom Line
If you're looking for a great deal - and want to explore exciting new areas - focusing on areas with high inventory and low prices can be your ticket to a fantastic bargain on your next home.
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