Florida home prices up in Jan. 2012--Corelogic reports.

CoreLogic released its January Home Price Index (HPI) report today and nationally, home prices, including distressed sales, declined in January 2012 by 3.1 percent year-over-year. Home prices declined by 1.0 percent month-to-month – its sixth consecutive monthly decline.

Florida home sales, on the other hand, increased by 1.8 percent year-over-year. Florida was  one of only 18 states to see a price boost in home sales.

Excluding distressed home sales, national year-over-year prices declined 0.9 percent in January 2012 compared to January 2011, but that same metric posted a month-over-month gain, rising 0.7 percent in January. Distressed sales include short sales and real estate owned (REO) transactions.

In Florida, real estate prices rose even when distressed home sales were excluded – 0.9 percent year-to-year.

Overall, seven states had higher real estate price increases than Florida. South Dakota led the nation with an overall 5.7 percent price increase year-to-year, while Illinois saw the biggest price drop at 8.7 percent.

Mark Fleming, chief economist for CoreLogic,  said that although home price declines are slowly improving, that home prices are still down to nearly the same levels as 10 years ago.

 
CoreLogic January 2012 real estate report highlights

• Including distressed sales, the five states with the highest appreciation were: South Dakota (+5.7 percent), North Dakota (+4.0 percent), West Virginia (+4.0 percent), Montana (+3.6 percent) and Michigan (+3.0 percent).

• Including distressed sales, the five states with the greatest depreciation were: Illinois (-8.7 percent), Nevada (-8.0 percent), Delaware (-7.9 percent), Alabama (-7.7 percent) and Georgia (-7.5 percent).

• Excluding distressed sales, the five states with the highest appreciation were: South Dakota (+6.4 percent), Montana (+5.9 percent), North Dakota (+3.8 percent), Alaska (+3.7 percent) and Indiana (+2.7 percent).

• Excluding distressed sales, the five states with the greatest depreciation were: Nevada (-6.7 percent), Delaware (-5.5 percent), Minnesota (-4.1 percent), New Jersey (-3.5 percent) and Georgia (-3.3 percent).

• Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to January 2012) was -34.0 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -24.2 percent.

• The five states with the largest peak-to-current declines including distressed transactions are Nevada (-60.1 percent), Arizona (-50.8 percent), Florida (-49.0 percent), California (-43.6 percent) and Michigan (-43.2 percent).

• Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 71 are showing year-over-year declines in January, eight fewer than in December.

The entire CoreLogicreal estate report is available online. You can also see Orlando based real estate online.

Florida real estate Existing-home sales rise again in January, inventory down

Florida’s housing market reported gains in median sales prices and a reduced inventory of homes for sale in January, according to the latest housing data released by Florida Realtors.

In both the statewide single-family and condo-townhome markets, pending sales are higher and the statewide median sales price rose – up 5.3 percent to $129,000 for single-family homes and up 18.8 percent to $95,000 for condo-townhomes

The median is the midpoint; half the homes sold for more, half for less. Sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes, according to housing industry analysts.

See OrlandoReal Estate in the greater Orlando area including Winter Park real estate and  Lake Mary homes for sale.

Florida year end home sales up for 2011 by 8 percent.

The close of 2011, looks good for Florida’s existing home and condominium markets sales compared to the previous year, according to the latest housing data released by Florida Realtors®. It was the third year in a row to show improvement for Florida  home and condo sales as higher year-over-year sales were reported at the close of the past three years (2011, 2010 and 2009), records show.

Looking back on 2011, Florida’s existing home sales rose 8 percent for the year. A total of 185,921 homes sold in Florida compared to 172,462 homes sold in 2010. The statewide existing home median price for 2011 was $131,700, a three percent decrease from 2010 when it was $135,900.

 In Florida’s condo market, a total of 87,581 units sold statewide in 2011, a gain of 15 percent compared to 76,209 units sold in 2010. The statewide existing condo median price in 2011 was $88,300; it was $90,000 in 2010 for a 2 percent decrease.

Foreign buyers see big bargains in U.S. real estate

Foreign investors are finding plenty of real estate deals in the U.S.  and those international investors are flocking to key states to buy their next property. And who is at the top when it comes to purchasing real estate in the U.S.?  It is Mexico, according to a recent study by Credit Sesame, which used National Association of Realtors® data for its findings.  This is true especially for California and Texas, two states that are among the top in having foreign real. estate investors Florida, also among the top, has most of its foreign buyers from Cuba, Haiti and Columbia.

MSNBC reported the following breakdown in the three top states:

 1. Florida: Thirty-one percent of all home purchases are made by foreign buyers, with most coming from Cuba, Haiti and Colombia.

2. California: Twelve percent of all home purchases, with most coming from Mexico, the Philippines, China, India and Vietnam.

3. Texas: Nine percent of all home purchases, with most coming from Mexico, India, Vietnam, China and the Philippines.

Many Americans consider homeownership a key part of achieving the “American dream.” But no group values homeownership more than foreign-born U.S. residents: those who have come to the United States seeking a better life. Did you know that nearly 80% of foreign-born U.S. residents owned a home in 2009 while the national homeownership rate at that time was much less :65.4 percent. (it is currently 66.3%).

What is the makeup of each state when it comes to foreign-born residents? The image below will show you which states are most popular among foreign homebuyers and investors. (Note that these stats refer to the overall population, not homeowners alone.).



Use CreditSesame.com to find the best mortgage rates based upon your complete financial profile!

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®

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

Citizens Property Insurance board approves proposals for depopulating in FL

The board overseeing the state’s largest insurer of homes and businesses recommended several proposals aimed at reducing the size of Citizens Property Insurance Corp. this past week.

 Gov. Rick Scott wanted the recommendations ready for the Legislature to take up during the 2012 session that begins in less than a month. He is looking for the state-backed Citizens to be downsized, or even sold, to try to reduce risk to millions of Floridians who are liable for catastrophic losses if the insurer became insolvent.

The plan approved by the Citizens’ board would allow the insurer to increase its rates more quickly and reduce its overall exposure by passing along excessive risk to policy owners. Read more.

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®

Fla. real estate experts still not excited, University of Florida (UF) survey.

Florida real estate experts and investors were pessimistic for a second consecutive quarter, despite encouraging signs in the rise of occupancy rates and prices in the rental apartment market,  according to a new University of Florida (UF) survey.

The survey points to the falling market for single-family houses, condominiums and most types of land as the main reason for the third-quarter malaise.

Uncertainty over unsettling global economic news added to the decline. Respondents anticipate a sluggish recovery for the real estate market in the coming years due to a large inventory of home foreclosures and  high employment. Since January, 70,000 new jobs have been created in Florida, but they were offset by 63,000 lost positions, keeping the unemployment rate at 10.6 percent since April.

Survey takers also believe that a weak economy continues to discourage the private sector from adding new hires. Concern over stock market turmoil, ongoing gridlock in Washington and the upcoming presidential election added to the overall pessimistic outlook.

With widespread home foreclosures forcing displaced homeowners to rent apartments, the rental apartment market, which, according to the survey, is real estate’s “best performing asset.”In addition, many young job seekers who want flexibility are seeking rental units. That trend helps to drive up occupancy, allowing owners to charge more rent.

The survey did identify bright spots in Florida’s economy. Condo projects are under way in Miami, which is also enjoying an influx of investment from South America. Respondents are also somewhat cheered by prospects for Florida ports as the Panama Canal expansion project continues. Read more here.


Source: 2011 Florida Realtors®

U.S. foreclosure activity hit 7-month high in Oct.-Florida in the top three.

More U.S. homes entered the foreclosure process in October than in the previous month. Florida, along with Pennsylvania and Indiana registered among the largest monthly increases. Nationally, the increase was up 10 percent from September, according to RealtyTrac.

The number of homes scheduled to be auctioned or repossessed by lenders also posted monthly increases.Notices of default, scheduled auctions and bank repossessions – warnings that can eventually lead to a home being lost to foreclosure – also hit a seven-month high in October.

The numbers are further evidence foreclosure activity is picking up.The rate that homeowners were 60 or more days late on their mortgage payment rose in the June-to-September period for the first time since the last three months of 2009, according to TransUnion.

The credit reporting agency said 5.88 percent of homeowners missed two or more payments, an early sign of possible foreclosure. That was up from 5.82 percent in the second quarter of 2011.

The number of U.S. homeowners who owe more than their homes are worth, represents another potential source of trouble for lenders. According to CoreLogic, as of June 30, some 22.5 percent of all U.S. homes are in this position. That’s 10.9 million properties. Another 2.4 million borrowers had less than 5 percent equity in their home, the firm said.

Industry experts say a housing market turnaround isn’t likely to occur as long as there remains a glut of potential foreclosures hovering over the market, so October’s increase in foreclosure activity means a potentially faster revival for housing. Read the entire story here.

Source: Florida Realtors/The Associated Press, Alex Veiga

Lost your job and cant pay your Mortgage? Help for Floridians.

Florida continues to operate a federally funded program to help at-risk homeowners facing foreclosure following unemployment. The Florida Housing Finance Corporation administers the state’s HHF fund under the following programs:

• Unemployment Mortgage Assistance Program (UMAP). UMAP provides up to six months of mortgage payments (with a cap of $12,000) paid directly to a mortgage lender to assist unemployed/underemployed borrowers with their first mortgage until they can resume full payments on their own.

• Mortgage Loan Reinstatement Payment (MLRP) Program. MLRP can be used to make a delinquent mortgage current (up to $6,000) for a homeowner who has returned to work or recovered from underemployment/underemployment.

A handful of Florida companies may claim they represent the Florida Housing Finance Corporation’s Hardest Hit Fund (HHF) when they do not.  The FHFC website specifically lists seven companies NOT associated with the program: Mader Law Group, Attorneys Legal Network, The Law Center, NOVA Debt, National Loan Restructuring and LMPrep LLC Hardship Center.

For additional information on the HHF program and to apply, visit www.FLHardestHitHelp.org.

 Source: 2011 Florida Realtors

Florida’s existing home, condo sales rise in the third quarter of 2011

Florida’s existing home and existing condo sales continued to show gains in third quarter 2011 compared to the same period a year earlier, according to the latest housing statistics from Florida Realtors®.

Existing home sales rose 12 percent in the third quarter of  2011 with a total of 46,759 homes sold statewide. Statewide sales of existing condos in the third quarter rose 13 percent compared to the year-ago sales figure.

Florida’s existing-home median sales price continued to stabilize and remained level at $136,000 for the three-month period; in the third quarter of  2010, it was $135,900. The median is a typical market price where half the homes sold for more, half for less.

The statewide existing-condo median sales price was $89,600 in the third quarter; a year earlier, it was $83,700 for a 7 percent increase.

According to Florida Realtors®, their Chief Economist, Dr. John Tuccillo said, “The reality is that the Florida market is improving and it has been for some time – it’s just improving more slowly than initial expectations.”

Mortgage rates continued to hover around historical lows in the third quarter. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 4.31 percent in the third quarter of  2011; one year earlier, it averaged 4.45 percent.  Read full story here.

Source:  Florida Realtors®

1.8M Brazil visitors expected through 2013 in Florida--some will buy real estate

 Brazil has one of the world’s healthy economies, and many residents enjoy visiting – and buying a home – in Florida. That is really good news. According to the State Department, Brazil had 820,000 visa applications in fiscal year 2011 – a 44 percent increase over 2010. And it is expected 1.8 million Brazilians to request a visitor visa by the end of 2013.

To keep up with demand, the U.S. says it will double the number of agents issuing visas in Brazil. The recent announcement by the U.S. State Department to increase the number of visas issued confirms existing demand and even predicts a significant increase in visitors. Read what the Florida Realtors representatives did to on a recent trade mission to spur demand for Florida Real Estate from Brazilians.

 

Fannie Mae, Freddie Mac and FHA loan limits changes due in October-How will this affect the Florida Real Estate Market?

Fannie Mae and Freddie Mac is slated to cut the size of loans they buy from lenders starting Oct 1, 2011 and the Federal Housing Administration (FHA) loan limits will also drop on the same day.    How will this move affect the Florida real estate market? It will mainly affect high-cost home areas.

Fannie Mae and Freddie Mac- According to HUD, Florida currently has six city areas with a maximum loan limit higher than $417,000 for a one-family home: Fort Lauderdale-Pompano Beach-Deerfield Beach (current maximum loan is $423,750), Miami-Miami Beach ($423,750), Bradenton-Sarasota-Venice ($442,500), West Palm Beach-Boca Raton-Boynton Beach ($423,750), Naples-Marco Island ($531,250), and Key West ($729,750).

Of the six, four will drop to the new maximum of $417,000; however, two will not. Effective Oct. 1, the Fannie Mae and Freddie Mac loan maximum for Naples-Marco Island will be $448,500, while Key West-Marathon will be $529,000.

FHA
FHA limits differ by city yet no area in Florida is lower than $271,050 which is 65 percent of the Fannie Mae/Freddie Mac loan limit.    The FHA national loan limit “ceiling” is 150 percent of the national conforming loan limit. In higher-cost areas, the FHA loan limit lowers after Oct. 1, though not necessarily to the floor amount.

In Jacksonville, for example, the current FHA maximum one-family loan limit of $387,500 drops to $304,750; in Miami-Miami Beach-Kendall it drops from the current $423,750 to $345,000; in Key West it goes from today’s $729,750 to $529,000.  The Orlando area (Orange, Seminole, Osceola and Lake Counties) limit will be $274,850.

Still, since many areas  in  Florida already have a $271,050 FHA loan limit – mainly smaller urban areas –buyers in those areas will not notice a difference.

How will your area be affected? You can search the new limits here on the U.S. Department of Housing and Urban Development's searchable database for loan limits, both FHA and Fannie Mae/Freddie Mac.

Want to see homes for sale in the Orlando area? See all the Orlando MLS listings here with no registration.