Positively looking up in Florida

The latest market statistics show continued improvement for Florida. Existing home and condo sales are up in November in year-to-year comparisons. Jobless claims are down slightly and employment growth is up.

Despite national and global headwinds, Florida’s real estate market is entering 2012 on an upward trend, according to three leading U.S. economists : Dr. John Tuccillo for Florida Realtors, Mark Vitner for Wells Fargo, and Dr. Lawrence Yun, chief economist for the National Association of Realtors. 

Looking around the state, Vitner said Jacksonville’s unemployment rate has dropped and home prices are stabilizing. In Orlando, prices have not yet reached bottom, he said, but the winter tourism season should help the regional economy. Tampa and Southwest Florida have seen solid job growth, with little new home construction. South Florida’s economy is growing thanks to trade relationships with Latin America and the Caribbean, while in the Panhandle, Fort Walton Beach is outperforming Panama City and Pensacola, according to Vitner. 

Dr. Tuccillo stated that in Florida, the homes today may be undervalued, and added. “That a buyer who plans to own the home for five to seven years can get some great bargains today.” “Our state is in a mini-recovery,” he said.

“Florida’s economy is recovering, with tourism and healthcare leading the way,” Vitner said. “International tourism has been particularly strong in Miami and Orlando.”

Dr. Yun, , said many Florida markets are showing sharp drops in inventories of homes for sale – a sign that demand is picking up and prices are stabilizing. “That’s a major change from just a year ago,” he said. “Buyers have stepped back into the Florida market.”

Yun said he was particularly optimistic about the outlook for South Florida due to international buyers. “Don’t be surprised to see a gain in home prices in the Miami and Naples markets in the next 18 months,” he said. “From there, the recovery is likely to roll northward to Central Florida and then North Florida.”

Tuccillo noted that foreclosed and distressed properties will remain a significant part of the Florida market in 2012, and that lenders are feeding these properties into the market at a gradual pace rather than pushing them out all at once.

 

Source: Florida Realtors®

Florida ranks high among states in lowering unemployment-

Encouraging news for Floridians-our state had the second best year among all the states in reducing unemployment over 2011. According to a report from the Bureau of Labor Statistics this week, Florida came in second to New Mexico in lowering its official jobless rate from 11.9 percent in November 2010 to 10 percent last month, the bureau said. New Mexico's jobless rate dropped 2.1 percentage points from 8.6 to 6.5 percent.

 Also, the 98,100 jobs that Florida added over the year put us third in the nation, behind only California and Texas. Still, Florida is just one of eight remaining states with double digit unemployment. Who has it worse? Nevada comes in at 13 percent, and California follows at 11.3 percent.  

We have got to get more jobs in the state, but it feels good to know things are improving.

Source: News Service of Florida

Existing home sales continue to climb in November in Florida

Florida’s existing home and existing condo sales continued its positive upswing in November, according to the latest housing data released by Florida Realtors®. Existing home sales increased 11 percent last month with a total of 12,993 homes sold statewide compared to 11,664 homes sold in November 2010, according to Florida Realtors.

 According to Florida Realtors Chief Economist Dr. John Tuccillo, home prices are stabilizing. Prices have not turned around but they are stabilizing, which is vital for the market to gain equilibrium.

 © 2011 Florida Realtors®

Snap shot on Florida real estate and slow recovery

At the recent Florida Realtors’ 2012 Real Estate and Economic Forecast Conference, Chief Economist Dr. John Tuccillo stressed the slow but steady upward trends in Florida housing and employment, both of which have been overlooked. With prices at attractive levels, investors are back in the market and the distressed property market has stabilized. International demand has risen over the last year, adding to the positive trends in Florida real estate.

In Florida and nationwide, restrictions on credit have slowed the real estate market’s recovery. While the average credit scores of approved loans under “normal” circumstances are around 720, in 2009 and 2010 the average was around 760. Easing credit conditions to “normal” could increase sales 15-20% higher according to Dr. Lawrence Yun, NAR chief economist. He stated that there could be a 10% price increase in South Florida as bargain hunters and foreign buyers boost sales – taking advantage of prices that are too good to pass up.

Experts outside the industry agree that Florida should have positive growth in 2012. While Florida employment growth has been weak and its recovery sluggish, Mark Vitner, senior economist at Wells Fargo, also had encouraging remarks on the state. He pinpointed tourism and healthcare as leaders in the employment recovery.

International visitors to Florida’s many vacation destinations have boosted tourism, while concurrently stepping up as investors in the state’s housing market. Vitner indicated specific areas in the state where prices have bottomed-out and employment has turned around.

More on Florida Real Estate  from the 2011 Real Estate and Economic Forecast Conference.

Source: Florida Realtors’ 2012 Real Estate and Economic Forecast Conference, and Florida Realtors

Mixed reviews for luxury homebuyer visa bill

Buy a house for half a million dollars and get a visa to stay in the United States for three years.

That’s part of a bill in Congress that aims to stoke the weak U.S. real estate market by attracting wealthy foreign buyers. The provisions are part of a bill co-sponsored by Sens. Charles Schumer, D-New York, and Mike Lee, R-Utah, that would change travel visa programs to attract more foreigners to America. But the plan is getting mixed reviews in South Florida according to the Sun Sentinel.

Critics say the incentives for foreign investors, as written, won’t attract many buyers. For example, the bill does not allow foreigners to work while they’re here, and it does not offer them a path to permanent residency.

The bill also would classify the housing investors as full-time residents, requiring them to pay U.S. taxes on their worldwide income. Many Latin Americans and Europeans now buy U.S. real estate as an investment but don’t stay full-time, so they won’t be taxed on their global holdings, said immigration lawyer Larry Behar of Fort Lauderdale.

The bill would let foreigners stay in the country for three years if they invest at least $500,000 in housing, including at least $250,000 for what would become their principal residence. The travel visa could be renewed.

Many Florida lawmakers are still studying the bill, dubbed VISIT-USA NS Some say they’re encouraged by creative efforts to reduce the state’s glut in housing.

“In Florida, if we can help the real-estate market, we can help the general economy,” said Rep. Ted Deutch, D-Boca Raton. He said the terms of the bill could be tweaked to boost its effectiveness.

Travel leaders in South Florida give rave reviews to provisions that would modernize the visa process. It now can take three months for qualified applicants in Brazil and China to get U.S. travel visas.

The bill would let foreigners pay extra to get their visas processed within three business days and let U.S. officials interview applicants by video conference to speed approvals, among other measures.

But details of the travel visa-for-homes proposal are prompting the most concerns locally. The Schumer-Lee bill does not require that new jobs be created, something Behar is not excited about. Behar said the new bill might distract Congress from extending a different law that brings foreign investment to job-creating ventures. The employment-based visa program, known as EB5, is helping fund Miami’s Life-Science Technology Park and other regional projects and it will expire Sept. 30 unless renewed.

Said developer Mo Abbas, who promotes EB5 projects in Hollywood: “In my opinion, the bill will result in sellers’ inflating residential prices so their homes qualify for the proposed three-year tourist visa. What we need is long-term investment, not a quick fix.”

Source: the Sun Sentinel (Fort Lauderdale, Fla.), Doreen Hemlock.  

Florida Real Estate Market Snapshot

Key trends affecting the Florida residential market include strong demand from international buyers, a growing population – 348 people a day net growth in 2010-11 – and an upswing in employment.

Inventories of for-sale homes have fallen to 7.4 months on a statewide average, and just 5.4 months for listings priced under $250,000.

Bank-owned properties (REOs or “real estate owned”) now constitute about 6 percent of inventory, but 40 percent of sales.

Short sales, where the market value of the home is below the mortgage loan value, make up about 31 percent of current inventory and 18 percent of sales.

Property management and leasing will be an increasingly important segment of the market in 2012, reaching $11 billion or more, due to the large numbers of investor buyers and multifamily buildings with few owners.

In the Florida commercial  real estate markets, investors are increasingly interested in buying office, retail and industrial properties. Vacancy rates, while high, have stabilized, along with rental rates. Lenders are getting more realistic regarding the pricing needed to dispose of their distressed commercial properties. There is a lot of existing commercial space that needs to be absorbed.   
 
Vacant Land-Overall, Florida has about 34.7 million acres of land, with only 3 million acres now developed. Local, state and federal governments own about 10 million acres. Florida has seen a 34 percent decrease in its citrus acreage in the last six years.
Source: Realtors® 2012 Real Estate and Economic Forecast Conference

Fla.’s housing market bouncing back according to leading U. S. economists

Despite national and global headwinds, Florida’s real estate market is entering 2012 on an upward trend, according to three leading U.S. economists : Dr. John Tuccillo for Florida Realtors, Mark Vitner for Wells Fargo, and Dr. Lawrence Yun, chief economist for the National Association of Realtors.

Looking around the state, Vitner said Jacksonville’s unemployment rate has dropped and home prices are stabilizing. In Orlando, prices have not yet reached bottom, he said, but the winter tourism season should help the regional economy. Tampa and Southwest Florida have seen solid job growth, with little new home construction. South Florida’s economy is growing thanks to trade relationships with Latin America and the Caribbean, while in the Panhandle, Fort Walton Beach is outperforming Panama City and Pensacola, according to Vitner.

Dr. Tuccillo stated that in Florida, the homes today may be undervalued, and added. “That a buyer who plans to own the home for five to seven years can get some great bargains today.” “Our state is in a mini-recovery,” he said.

“Florida’s economy is recovering, with tourism and healthcare leading the way,” Vitner said. “International tourism has been particularly strong in Miami and Orlando.”

Dr. Yun, , said many Florida markets are showing sharp drops in inventories of homes for sale – a sign that demand is picking up and prices are stabilizing. “That’s a major change from just a year ago,” he said. “Buyers have stepped back into the Florida market.”

Yun said he was particularly optimistic about the outlook for South Florida due to international buyers. “Don’t be surprised to see a gain in home prices in the Miami and Naples markets in the next 18 months,” he said. “From there, the recovery is likely to roll northward to Central Florida and then North Florida.”

Tuccillo noted that foreclosed and distressed properties will remain a significant part of the Florida market in 2012, and that lenders are feeding these properties into the market at a gradual pace rather than pushing them out all at once.
 

Source: Florida Realtors®