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10 Cities Where List Prices Soared in the Last Year

Daily Real Estate News | Thursday, January 26, 2012

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List prices are heating up in Florida, as recovery takes hold in the Sunshine State. Florida boasts the highest number of cities in the top 10 for largest increases in median list prices in the last year. In Miami alone, median list prices have jumped 32 percent in the last year. 

Nationwide, median list prices have inched up 5.03 percent from December 2010 to December 2011, according to Realtor.com data. 

The following cities are where median list prices have increased the most in the last year, based on December 2011 data of 146 metro areas from Realtor.com:

1. Miami, Fla.
Year-over-year increase: 32.50%
Median list price: $265,000

2. Naples, Fla.
Year-over-year increase: 21.67%
Median list price: $365,000

3. Fort Myers-Cape Coral, Fla.
Year-over-year increase: 21.47%
Median list price: $229,375

4. Punta Gorda, Fla.
Year-over-year increase: 19.42%
Median list price: $179,000

5. Boise City, Idaho
Year-over-year increase: 19.25%
Median list price: $154,900

6. West Palm Beach-Boca Raton, Fla.
Year-over-year increase: 18.38%
Median list price: $219,000

7. Sarasota-Bradenton, Fla.
Year-over-year increase: 17.62%
Median list price: $241,000

8. Daytona Beach, Fla.
Year-over-year increase: 16.06%
Median list price: $179,900

9. Phoenix-Mesa, Ariz.
Year-over-year increase: 13.79%
Median list price: $165,000

10. Grand Rapids-Muskegon-Holland, Mich.
Year-over-year increase: 13.32%
Median list price: $137,000

By Melissa Dittmann Tracey, REALTOR® Magazine Daily News

Read More

10 Cities Where List Prices Soared Last Month

West Palm Beach went from ranking #10 in the Country in November to #8 in December.
Check it out - 6 out of 10 of these cities are in Florida!!

December Existing-Home Sales Show Uptrend

Washington, DC, January 20, 2012

Existing-home sales continued on an uptrend in December, rising for three consecutive months and remaining above a year ago, according to the National Association of Realtors®.

The latest monthly data shows total existing-home sales¹ rose 5.0 percent to a seasonally adjusted annual rate of 4.61 million in December from a downwardly revised 4.39 million in November, and are 3.6 percent higher than the 4.45 million-unit level in December 2010. The estimates are based on completed transactions from multiple listing services that include single-family homes, townhomes, condominiums and co-ops.

Lawrence Yun, NAR chief economist, said these are early signs of what may be a sustained recovery. “The pattern of home sales in recent months demonstrates a market in recovery,” he said. “Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market.”

For all of 2011, existing-home sales rose 1.7 percent to 4.26 million from 4.19 million in 2010.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to another record low of 3.96 percent in December from 3.99 percent in November; the rate was 4.71 percent in December 2010; recordkeeping began in 1971.

NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said more buyers are expected to take advantage of market conditions this year. “The American dream of homeownership is alive and well. We have a large pent-up demand, and household formation is likely to return to normal as the job market steadily improves,” he said. “More buyers coming into the market mean additional benefits for the overall economy. When people buy homes, they stimulate a lot of related goods and services.”

Total housing inventory at the end of December dropped 9.2 percent to 2.38 million existing homes available for sale, which represents a 6.2-month supply² at the current sales pace, down from a 7.2-month supply in November.

Available inventory has trended down since setting a record of 4.04 million in July 2007, and is at the lowest level since March 2005 when there were 2.30 million homes on the market.

“The inventory supply suggests many markets will see prices stabilize or grow moderately in the near future,” Yun said.

Foreclosures³ sold for an average discount of 22 percent in December, up from 20 percent a year ago, while short sales closed 13 percent below market value compared with a 16 percent discount in December 2010.

The national median existing-home price⁴ for all housing types was $164,500 in December, which is 2.5 percent below December 2010. Distressed homes – foreclosures and short sales – accounted for 32 percent of sales in December (19 percent were foreclosures and 13 percent were short sales), up from 29 percent in November; they were 36 percent in December 2010.

All-cash sales accounted for 31 percent of purchases in December, up from 28 percent in November and 29 percent in December 2010. Investors account for the bulk of cash transactions.

Investors purchased 21 percent of homes in December, up from 19 percent in November and 20 percent in December 2010. First-time buyers fell to 31 percent of transactions in December from 35 percent in November; they were 33 percent in December 2010.

Contract failures were reported by 33 percent of NAR members in December, unchanged from November; they were 9 percent in December 2010. Although closed sales are holding up better than this finding would suggest, contract cancellations are caused largely by declined mortgage applications and failures in loan underwriting from appraised values coming in below the negotiated price.

Single-family home sales increased 4.6 percent to a seasonally adjusted annual rate of 4.11 million in December from 3.93 million in November, and are 4.3 percent higher than the 3.94 million-unit pace a year ago. The median existing single-family home price was $165,100 in December, which is 2.5 percent below December 2010.

Existing condominium and co-op sales rose 8.7 percent to a seasonally adjusted annual rate of 500,000 in December from 460,000 in November but are 2.0 percent below the 510,000-unit level in December 2010. The median existing condo price was $160,000 in December, down 3.0 percent from a year ago.

Regionally, existing-home sales in the Northeast jumped 10.7 percent to an annual pace of 620,000 in December and are 3.3 percent above a year ago. The median price in the Northeast was $231,300, which is 2.7 percent below December 2010.

Existing-home sales in the Midwest rose 8.3 percent in December to a level of 1.04 million and are 9.5 percent above December 2010. The median price in the Midwest was $129,100, down 7.9 percent from a year ago.

In the South, existing-home sales increased 2.9 percent to an annual level of 1.76 million in December and are 3.5 percent above a year ago. The median price in the South was $146,900, down 1.1 percent from December 2010.

Existing-home sales in the West rose 2.6 percent to an annual pace of 1.19 million in December but are 0.8 percent below December 2010. The median price in the West was $205,200, up 0.3 percent from a year ago.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

By Kimberly Miller

Palm Beach Post Staff Writer

Posted: 11:21 a.m. Friday, Jan. 20, 2012

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Palm Beach County home sales jumped 24 percent last year compared to 2010, but median prices continued to fall with a 15 percent dip to $193,700.

According to the Florida Realtors, which released its year-end statistics this morning, sales of existing homes statewide increased 8 percent, with prices droping 3 percent to $131,700.

Sales of existing homes rose 1.7 percent last year nationwide compared with 2010, a small increase that economists said marks a slow slog toward economic recovery.

The National Association of Realtors released its December and year-end sales statistics this morning, showing a 5 percent increase in December from the previous month that brought the seasonally adjusted annual rate of sales for the year to 4.61 million.

"The pattern of home sales in recent months demonstrates a market in recovery," said the association's chief economist Lawrence Yun. "Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market."

According to Freddie Mac, the national average interest rate for a 30-year fixed mortgage fell to a record low of 3.96 in December, from 3.99 percent in November. The rate was 4.71 percent in December 2010.

Florida's existing home sales numbers will be released later this morning by the Florida Realtors.

Median housing prices nationwide continued to slide, dipping 2.5 percent last month to $164,500 from December 2010.

All-cash sales accounted for 31 percent of purchases in December, up from 28 percent in November and 29 percent in December 2010.

Housing outlook is more upbeat

NEW YORK – Jan. 17, 2012 – Optimism is building that the housing industry is nearing a bottom – finally.

Home sales and homebuilding are forecast to rise this year after sliding steeply the past five years in housing’s worst downturn since the Great Depression.

Recovery is expected to be slow, and home prices are widely expected to fall this year. But investors are betting on the start of an upturn, bidding up home builder stocks and causing them to outperform the broader stock market.

Chief executives are more positive. JPMorgan Chase’s Jamie Dimon said last week that housing is near its bottom but could stay there a year. Stuart Miller, CEO of home builder Lennar, said the market has started to stabilize because of low prices and record-low interest rates.

Market researcher RBC Capital Markets has also turned from a “bearish” view on housing to saying that 2012 “will mark a step in the right direction.”

Many economists expect home prices to fall more this year because of foreclosures and other properties sold at very low prices.

As foreclosures pick up this year, “prices will drop,” says Stan Humphries, Zillow chief economist. He says home prices won’t bottom until later in 2012 or next year.

On average, prices have fallen by about a third since 2006.

“This year will feel a lot better to builders, investors and real estate agents than to consumers,” says Jed Kolko, economist for real estate website Trulia.

Housing’s outlook is brightening with signs of a better economy. Last month, U.S. employers added 200,000 jobs, and the unemployment rate fell to 8.5 percent, lowest in nearly three years.

While an economic shock could derail progress, “there’s now more evidence of improvement in the economy, and housing will follow the economy,” says David Crowe, chief economist at the National Association of Home Builders. More improvement is expected for:

Sales. Existing home sales will rise 12 percent this year after a 2 percent increase last year, and new home sales, coming off a horrid year, will jump 74 percent this year, Moody’s Analytics predicts.

November’s existing home sales hit their highest mark in 10 months, and new home sales were the year’s second best, IHS Global Insight says.

Construction. Single-family housing starts will rise 37 percent this year, Moody’s predicts, after falling 9 percent last year.

Home builder stocks are on a run. The S&P 1500 homebuilding index is up 38 percent since mid-October, vs. 7 percent for the S&P 500.

Program educates public on foreclosure scams

WASHINGTON – Jan. 16, 2012 – According to Loan Modification Scam Alert, a program backed by NeighborWorks America and supported by the U.S. Congress, there is a new foreclosure filing every 15 seconds in America.

NeighborWorks is working with 235 community-based affiliates to educate and protect homeowners from unethical practices. The program says it has three goals: First, alert homeowners about scams. Second, help them spot a scam before it’s too late. Third, encourage them to report scammers to the authorities. The campaign hopes to educate owners at higher risk of scams by telling real-life scam stories in fliers, postcards, door hangers, e-cards, posters, print advertising, local PSAs, events, word of mouth and social media.

Three signs of a scam

According to Loan Modification Scam Alert, foreclosure scams generally have three possible red flags:
• The company asks for a fee in advance.
• The offer comes with a guarantee that a foreclosure can be stopped or a loan modified.
• The homeowner is told to stop paying the mortgage and, in some cases, told to pay the foreclosure relief company instead.

Since the U.S. has a new foreclosure filing every 15 seconds – more than 6,100 per day –  and more than 4.5 million households at risk, scam artists see an opportunity, and Florida remains the top state for foreclosure-related scams.

“Loan modification scams are proliferating at a rapid pace,” the program claims on its website. “Every day, more homeowners are falling prey to the slick advertising and sales pitches that guarantee to keep them in their homes. Many scam artists are openly taking advantage of people in difficult circumstances – online, on the telephone, and sometimes audaciously knocking on doors.”

For more information, to read stories of harmed homeowners or to report a scam, visit the Loan Modification Scam Alert website. (Link underlined to: http://loanscamalert.org/)

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

MIAMI – Jan. 16, 2012 – Foreign investors are finding plenty of deals in the U.S. when it comes to real estate, and, as such, more international investors are flocking to key states to buy their piece of the American Dream.

Mexico is the top country of origin for foreign buyers purchasing U.S. homes, according to a recent study by Credit Sesame, which used National Association of Realtors® data for its findings.

“In this period of tremendous uncertainly globally, real estate here is a safe haven,” Susan Wachter, professor of real estate and finance at The University of Pennsylvania, told MSNBC.com.

The top destinations of foreign investors for U.S. real estate purchases are:

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.

Source: “Housing more affordable than ever ... for foreign investors,” MSNBC.com (Jan. 13, 2012)

© Copyright 2012 INFORMATION, INC. Bethesda, MD (301) 215-4688

At Miami economic forum, a sense of cautious optimism

MIAMI – Jan. 16, 2012 – Condo Vultures founder Peter Zalewski sees more confidence in the real estate market this year, as high-rise towers return and prices for luxury real estate inch off a bottom. That could be a problem.

“My biggest concern for 2012 is bravado,” he told an audience during a Friday morning panel discussion on the development industry. “You are starting to see some egos return. You’re starting to see some optimism in pricing.”

Optimism – or what passes for optimism in the post-bust South Florida – set the tone for the Greater Miami Chamber of Commerce’s second annual economic forum.

Bankers said they had money to lend, but few businesses profitable enough for safe loans. Builders said they were almost certain housing prices have finally hit a bottom.

Trade and tourism watchers said foreign buying power continues to shield South Florida from the full impact of domestic economic woes.

Zalewski, who started his Vultures brokerage six years ago in anticipation of a historic real estate bust, specializes in distressed real estate. With condo towers in pre-sales once again and some going vertical, he warned that developers may once again be over-estimating demand for pricey apartments.

“There’s been a lot of hoopla. If these things stall in their tracks, it could create some bad buzz that I think would take us a long time to recover from,” said Zalewski, who also writes a monthly column for The Miami Herald’s Business Monday magazine.

Several speakers at the daylong event at Jungle Island shared an outlook that conditions have improved enough to make 2012 a turning point, with growth slowly gaining steam toward normalcy. But memories of past optimism tempered some of the rosy comments.

Ramiro Ortiz, a Miami banker turned consultant, opened a finance and retail discussion by reminding the audience that, in the same room last year, speakers were bidding good riddance to 2010 and expecting a strong 2011.

“Here we are a year later,” he said. “I would say good riddance to 2011.”

Among the highlights from Friday’s forum:

• Miami-Dade’s retail industry is performing well. Allen Morris, CEO of the Allen Morris Co. commercial brokerage, said retail vacancies were a fraction of the office sector. Only about 4 percent of Miami-Dade’s retail space is available, compared to about 14 percent for office. Industrial space falls roughly in the middle at 8 percent vacant.

• Bank executives insisted they want to lend money, but that demand from small businesses is too low.

“Whoever wants it, come and get it,” said Adolfo Henriques, president of Gibraltar Private Bank in Miami. “We are flush with cash.”

He said his staff rarely hears from stable businesses looking for a loan to fund growth. Instead, most loan requests come from marginal companies needing cash to survive.

• Don’t expect a housing rebound to spark a big return to hiring in the building industry. Carlos Gonzalez, head of the Southeast Florida division for Lennar, said the national homebuilder expects to expand in 2012. But its payrolls won’t, at least not locally.

“I don’t see any hiring this year,” he said. “I am growing my business.”

• The construction industry shakeout continues. Ed McNeil, head of Florida operations for Turner Construction, said the widespread failures of contractors in commercial building did not materialize in 2009 and 2010, despite a nearly idle industry. But in 2011, firms began to go bankrupt and he expects more in 2012. “How long can you hold your breath in this distressed market?”

• Presidential politics looms large in predicting the future of finance. Ken Thomas, a local banking consultant, said he expects the Federal Reserve to continue pumping cash into the financial system by launching a third effort called “quantitative easing” or “QE3.”

Thomas said the influx of cash should help the economy in the short term, boosting President Barack Obama’s reelection chances. The president appoints the Fed chairman, currently Ben Bernanke.

“Ben Bernanke wants to keep his job,” Thomas said. “No Republican will keep him. The only one who will is Obama.”

• Corporate America seems extremely poised for major hiring and spending.

James Glassman, an economist with JPMorgan, presented data showing national business profits were up at levels far above past recoveries. He expected that to spark more hiring, particularly among younger workers, who have been hit hardest by the unemployment crisis. As younger workers feel secure in their careers, first-time homebuyers should surge after years of delayed purchases.

He compared the current dynamics to the 1950s, when homebuying soared as an entire generation of young people made up for lost time.

“The recession is doing to our young people what the war did to the baby boomers,” he said, referring to the generation born after World War II as the country returned to normalcy. “Young people are seeing their situations improve the most.”

U.S. foreclosure rate lowest since pre-recession

NEW YORK (AP) – Jan. 12, 2012 – About 1.9 million homes entered the foreclosure process in 2011, the lowest level since 2007 when the recession began, according to a report Thursday by the foreclosure listing firm RealtyTrac Inc.

The firm cautioned that the decline does not necessarily indicate that the housing market is getting better, as many foreclosures have been delayed due to confusion over documentation and legal issues involved in the process.

There have also been problems with the way some lenders were handling foreclosures. Specifically, signing off on home foreclosures without first verifying documents – a practice referred to as “robo-signing.” Many of the largest U.S. banks reacted by temporarily ceasing all foreclosures, re-filing previously filed foreclosure cases and revisiting pending cases to prevent errors.

“Foreclosures were in full delay mode in 2011, resulting in a dramatic drop in foreclosure activity for the year,” RealtyTrac CEO Brandon Moore said in a statement.

The listing firm anticipates that 2012’s foreclosure rate will be higher than last year’s, but will remain below the peak of 2010.

High unemployment, a sluggish housing market and falling home values remain major factors in homeowners falling behind on their mortgage payments. Many borrowers also have simply stopped paying their mortgage because they owe more on the mortgage than the home is worth.

RealtyTrac said that 2011’s foreclosure activity is 34 percent lower than 2010 and the lowest since 2007. The Great Recession began in December 2007 and ended in June 2009.

In 2011, Nevada, Arizona and California were among those with the most foreclosures. Other states among those with the highest foreclosure rates for the year were Georgia, Michigan, Florida, Illinois, Colorado and Idaho.

The company said that December’s foreclosure filings on 205,024 homes were the lowest monthly total since November 2007. The figure was also 20 percent below the prior-year period’s results.

In the fourth quarter, there were foreclosure filings for 586,133 homes in the U.S., down 27 percent from a year earlier.
Copyright © 2012 The Associated Press.

Florida Realtors PAC gets makeover

TALLAHASSEE, Fla. – Jan. 12, 2012 – Florida Realtors® renamed its political action committee to more accurately reflect its location and influence: Florida Realtors PAC.

The 2012 campaign also features a new logo (view it here) and a new slogan: Invest In Your Profession.

“Florida Realtors PAC has never been more important,” says Florida Realtors Senior Vice President of Public Policy John Sebree. “While we encourage Realtors to give throughout the year, we have major challenges in 2012. The ‘Yes on 4’ campaign will take time and money as we work to explain the advantage of the constitutional amendment to 60 percent of Florida voters.”

The “Yes on 4” campaign refers to a proposed amendment to the state constitution, Amendment 4, that will appear on the November ballot. If passed, Amendment 4 will create a property tax increase cap of 5 percent each year on non-homestead real estate, down from the current 10 percent cap. It will also give some first-time homebuyers a property tax break that decreases over time.

“In short, passage of Amendment 4 will make homeownership obtainable for more people in Florida – and increase business for all Realtors,” says Sebree. “But it will take a major commitment from everyone to work for its passage and to financially support our efforts through Florida Realtors PAC.”

The new logo adapts Florida Realtors’ logo by surrounding it with stars and adding the colors of America – red, white and blue. Every member who donates to Florida Realtors PAC will receive a logo lapel pin. It can be seen on floridarealtors.org.

The new Florida Realtors PAC also features a new “I Give Because …” campaign. In separate videos posted on floridarealtors.org, members will explain why they invest in Florida Realtors PAC and why they personally think it’s important. Current National Association of Realtors® President Moe Veissi, broker-owner of Veissi & Associates Inc. in Miami, for example, is featured in one video. Veissi praises Florida Realtors PAC for its role in stopping a proposed sales tax on services – a tax that would have lowered the income of every Realtor in the state – during his year serving as Florida Realtors president.

“Many times, we work hard to pass legislation or an amendment,” says Sebree. “But at other times, Florida Realtors PAC deserves praise for the issues that don’t pass because it took a stand against changes that would impact every Realtors business, whether it be a sales tax on services, a cut to Florida’s affordable housing trust funds, or a new doc stamp tax.”

For more information or to donate to Florida Realtors PAC, visit the floridarealtors.org website.

© 2012 Florida Realtors®