Thursday, September 22, 2011
Tampa Bay home sales rise 15 percent; prices remain soft
Existing home sales in Tampa Bay rose a strong 15 percent in August compared to a year ago, but housing prices have yet to rebound to last year's levels.
The median home sales price in the area was $130,000. While that's down 8 percent from the year-ago level of $140,600, it's up from $124,000 in July and continues to build on momentum throughout the year. Home prices had tumbled to a low of $110,000 in January.
"Over the past few months, it appears that home prices have been stabilizing in many local markets across the state," said Patricia Fitzgerald, Florida Realtors president.
The gap between home prices in the bay area and statewide widened slightly. Prices statewide rose to $137,500, up 2 percent from year-ago levels and up nearly 1 percent from July. Statewide, 16,206 homes changed hands, up 15 percent from August 2010.
Nationally, home sales rose 7.7 percent last month to a seasonally adjusted annual rate of 5.03 million homes. That's below the 6 million that economists say is consistent with a healthy housing market.
Fla.’s home, condo sales and median prices higher in August Sales higher in Aug. over year ago; home median price up 2%, condo median price up 12%. National existing sales up 7.7%.
ORLANDO, Fla. – Sept. 21, 2011 – Sales activity and median prices for Florida’s existing home and existing condo markets rose in August, according to the latest housing data released by Florida Realtors®. Existing home sales increased 15 percent last month with a total of 16,206 homes sold statewide compared to 14,131 homes sold in August 2010, according to Florida Realtors. The statewide median sales price for existing homes last month was $137,500, up 2 percent from the year-ago figure of $134,900. August’s statewide existing home median price was also slightly higher than it was in July.
“Over the past few months, it appears that home prices have been stabilizing in many local markets across the state,” said 2011 Florida Realtors President Patricia Fitzgerald, manager/broker-associate with Illustrated Properties in Hobe Sound and Mariner Sands Country Club in Stuart. “This is another positive sign that the housing recovery is gaining strength.”
According to analysts with the National Association of Realtors® (NAR), 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. The median is the midpoint; half the homes sold for more, half for less.
The national median sales price for existing single-family homes in August 2011 was $168,400, down 5.4 percent from a year ago, according to NAR. In California, the August statewide median resales price was $297,060; in Maryland, it was $241,564.
Fifteen of Florida’s metropolitan statistical areas (MSAs) reported higher existing home sales in August; 15 MSAs also had higher existing condo sales.
In Florida’s year-to-year comparison for condos, 7,098 units sold statewide last month compared to 6,041 units in August 2010 for an increase of 17 percent. The statewide existing condo median sales price last month was $91,100; in August 2010 it was $81,500 for a 12 percent increase. According to NAR, the national median existing condo sales price was $167,500 in August 2011.
NAR’s latest industry outlook notes that despite high affordability conditions, sales activity is underperforming, partially as a result of overly restrictive lending standards.
“Affordability conditions this year have been the most favorable on record dating back to 1970, but many buyers are being held back because banks are offering financing to only the most highly qualified borrowers, ignoring a large share of otherwise creditworthy buyers,” said NAR Chief Economist Lawrence Yun. “Those potential buyers represent the difference between an uneven recovery and a much more robust housing market that could stimulate additional economic activity and create jobs.”
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.27 percent in August, down from the 4.43 percent average during the same month a year earlier. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
“Over the past few months, it appears that home prices have been stabilizing in many local markets across the state,” said 2011 Florida Realtors President Patricia Fitzgerald, manager/broker-associate with Illustrated Properties in Hobe Sound and Mariner Sands Country Club in Stuart. “This is another positive sign that the housing recovery is gaining strength.”
According to analysts with the National Association of Realtors® (NAR), 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. The median is the midpoint; half the homes sold for more, half for less.
The national median sales price for existing single-family homes in August 2011 was $168,400, down 5.4 percent from a year ago, according to NAR. In California, the August statewide median resales price was $297,060; in Maryland, it was $241,564.
Fifteen of Florida’s metropolitan statistical areas (MSAs) reported higher existing home sales in August; 15 MSAs also had higher existing condo sales.
In Florida’s year-to-year comparison for condos, 7,098 units sold statewide last month compared to 6,041 units in August 2010 for an increase of 17 percent. The statewide existing condo median sales price last month was $91,100; in August 2010 it was $81,500 for a 12 percent increase. According to NAR, the national median existing condo sales price was $167,500 in August 2011.
NAR’s latest industry outlook notes that despite high affordability conditions, sales activity is underperforming, partially as a result of overly restrictive lending standards.
“Affordability conditions this year have been the most favorable on record dating back to 1970, but many buyers are being held back because banks are offering financing to only the most highly qualified borrowers, ignoring a large share of otherwise creditworthy buyers,” said NAR Chief Economist Lawrence Yun. “Those potential buyers represent the difference between an uneven recovery and a much more robust housing market that could stimulate additional economic activity and create jobs.”
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.27 percent in August, down from the 4.43 percent average during the same month a year earlier. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
© 2011 Florida Realtors®
Wednesday, September 21, 2011
House fails to vote on extending loan limits FHA, Fannie and Freddie loan limits to drop Oct. 1, but Congress could still consider higher limits before 2012.
WASHINGTON – Sept. 20, 2011 – Conforming loan limits on government-backed mortgages at Fannie Mae and Freddie Mac are set to expire on Oct. 1, because attempts to extend them haven’t gain traction in Congress.
In 2008, Congress raised the limits up to $729,750 in some areas to make larger mortgages available in high-priced housing markets. The limits will drop to $625,500 on Oct. 1 in the many areas of the country, mostly affecting housing markets on West and East Coasts.
The Conforming Loan Limits Extension Act introduced in July by Reps. John Campbell (R-Calif.) and Rep. Gary Ackerman (D-N.Y.) would allow GSEs and the Federal Housing Administration to purchase or guarantee mortgages worth as much as $729,750 in most areas. (Additionally, Reps. Brad Sherman (D-Calif.) and Gary Miller (R-Calif.) introduced a bill in May to make the loan limits permanent.)
Another bill, the Homeownership Affordability Act of 2011, introduced in August by Senators Robert Menendez (D-N.J.) and Johnny Isakson (R-Ga.), would keep the higher limits in place by increasing the guarantee fees charged on loans between $625,500 and $729,500. (Guarantee fees are charged by loan guarantors prior to bundling mortgages into securities.)
Neither the House nor the Senate has voted on any of the loan-limit extension bills, however. The Conforming Loan Limits Extension Act also failed to become part of a short-term spending bill, which will be voted on soon.
“We are focusing all of our effort and attention on making sure that a temporary extension of the current conforming loan limits is included in an omnibus spending bill that it appears the House and Senate will consider late this year,” said a spokesman for Rep. John Campbell (R-Calif.) who introduced the bill in the House.
The National Association of Home Builders has said it fears more than 17 million homes nationwide will become ineligible for more affordable federal funding if the loan limit expires. Federal Reserve Chairman Ben Bernanke has said he’s confident that the private market, including investors and insurers, would step up to fill the void by offering jumbo loans when the conforming loan limits expired – although likely at a higher cost to borrowers.
“We expect to see significant negative consequences for the struggling housing market as a result of the limit drop after Oct. 1,” Campbell’s office said. “Therefore, it will be even more pressing and pertinent that Congress acts quickly to reverse the limit reduction at the next opportunity.”
Source: “Extension of Conforming Loan Limits Fail in House,” HousingWire (Sept. 16, 2011) and “Senators Menendez and Isakson Call for Extending Higher Home Loan Limits to Boost Weak Housing Market,” Office of Sen. Johnny Isakson, R-Ga. (Sept. 16, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
In 2008, Congress raised the limits up to $729,750 in some areas to make larger mortgages available in high-priced housing markets. The limits will drop to $625,500 on Oct. 1 in the many areas of the country, mostly affecting housing markets on West and East Coasts.
The Conforming Loan Limits Extension Act introduced in July by Reps. John Campbell (R-Calif.) and Rep. Gary Ackerman (D-N.Y.) would allow GSEs and the Federal Housing Administration to purchase or guarantee mortgages worth as much as $729,750 in most areas. (Additionally, Reps. Brad Sherman (D-Calif.) and Gary Miller (R-Calif.) introduced a bill in May to make the loan limits permanent.)
Another bill, the Homeownership Affordability Act of 2011, introduced in August by Senators Robert Menendez (D-N.J.) and Johnny Isakson (R-Ga.), would keep the higher limits in place by increasing the guarantee fees charged on loans between $625,500 and $729,500. (Guarantee fees are charged by loan guarantors prior to bundling mortgages into securities.)
Neither the House nor the Senate has voted on any of the loan-limit extension bills, however. The Conforming Loan Limits Extension Act also failed to become part of a short-term spending bill, which will be voted on soon.
“We are focusing all of our effort and attention on making sure that a temporary extension of the current conforming loan limits is included in an omnibus spending bill that it appears the House and Senate will consider late this year,” said a spokesman for Rep. John Campbell (R-Calif.) who introduced the bill in the House.
The National Association of Home Builders has said it fears more than 17 million homes nationwide will become ineligible for more affordable federal funding if the loan limit expires. Federal Reserve Chairman Ben Bernanke has said he’s confident that the private market, including investors and insurers, would step up to fill the void by offering jumbo loans when the conforming loan limits expired – although likely at a higher cost to borrowers.
“We expect to see significant negative consequences for the struggling housing market as a result of the limit drop after Oct. 1,” Campbell’s office said. “Therefore, it will be even more pressing and pertinent that Congress acts quickly to reverse the limit reduction at the next opportunity.”
Source: “Extension of Conforming Loan Limits Fail in House,” HousingWire (Sept. 16, 2011) and “Senators Menendez and Isakson Call for Extending Higher Home Loan Limits to Boost Weak Housing Market,” Office of Sen. Johnny Isakson, R-Ga. (Sept. 16, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Monday, September 19, 2011
Pinellas County Real Estate Statistics August 2011
The housing market in Pinellas County for August has been relatively calm. It appears that the real estate market is looking for news of a recovery or a double recession. Listings across the board continue to fall, and prices are rising, albeit slowly. Distressed property (bank owned and short sales) listings have been steadily declining since January this year. Comparing to August 2010, they are down 43%.
Residential properties in the areas of $30k- $40k, $100k to $140k and $200k to $250k continue to be the strongest market price segments in the county. Sales on homes valued over $500k are continuing to struggle, with buyers looking for bargains rather than to move up.
Overall, residential market sales increased from 971 to 1203, or 23.9%, from August 2010 to August 2011. Median sales price for the same time period dropped 15.4% from $135,000 to $117,000, but is up $3,000 month over month. Active listings continued to slide by 22% from August 2010 to August 2011, for six straight months of listing decreases.
Condo sales from August 2010 to August 2011 are up nearly 26%. The median sales price for condo’s continues to remain relatively stagnate month over month. For August it is $94,200, a decrease of 18.1% from August 2010. Condo listings decreased from 5,546 to 4,222, or -23.9% for the same time period.
Single family listings are down from 6,670 to 4,270, or 37%. The median sales price is down from $135,000 to $126,080 from year over year. Single family sales climbed for a 22% increase for the same time period.
In the distressed market, pending sales of bank-owned properties and short sales ticked up about 7.3%. Median price and sales of distressed properties increased slightly.
With the decreasing number of listings, the absorption rate is steadily rising this year. For August 2011 the single family rate was 17.5%, the highest it’s been since December 2005.
Wednesday, September 14, 2011
Low appraisal killing a deal? Here’s what to do
WASHINGTON – Sept. 13, 2011 – The National Association of Realtors® (NAR) reports that 16 percent of real estate professionals surveyed in June reported a cancelation in a sale, mostly due to a large number of low appraisals.
Many real estate professionals are watching deals unravel, with some appraisals coming in 10 to 20 percent – or even more – below the accepted offer.
“Over the past decade, finding ‘comps’ that accurately reflect values has been a challenge as values rose quickly during the boom and fell just as fast during the bust,” according to a recent article by RISMedia. “Discounts paid for foreclosures and short sales have created a dual price structure between ‘normal’ and distress sales.”
Obviously one of the easiest solutions when a low appraisal comes in: Ask the seller to agree to a lower price. But when that doesn’t work, consider the following tips:
Research
If clients feel the appraisal was completed incorrectly, they have the right to a copy of the appraisal from their lender, including who performed it and what comparables were used. For example, a client can find out where the appraiser is based (maybe it was an out-of-town appraiser who was unfamiliar with the area). If an out-of-town appraiser unfamiliar with the local market does the appraisal, clients can demand a new one.
Also, a client should evaluate the comparables used in the appraisal. If a client feels that the earlier home sales do not fairly compare to the home they wish to buy, they can ask their real estate agent to pull together a fairer list of recent comparable sales – or possibly even pending sales – to justify the agreed-to-sales price. That information should then be submitted to the loan’s underwriter when asking for a review of the appraisal.
Request a new appraisal
If clients feel the appraisal wasn’t done fairly or accurately, they can ask their lender for a new appraisal. A lender has the ability to override an appraisal estimate, though that’s unlikely. The lender could, however, order a new appraisal, which is more likely.
Get an independent appraisal
Clients could opt to get their own appraisal. (If the loan is an FHA loan, they should ask the lender for a list of approved appraisers.) The bank will generally review the appraisal and ask the previous appraiser if they agree or disagree with the new one. Banks may request yet another appraisal, or they could reject a private appraisal altogether. However, the first appraiser could agree with facts in the independent appraisal and return with a better price.
Source: “5 Ways to Fight a Low Appraisal,” RISMedia (Sept. 7, 2011)
Many real estate professionals are watching deals unravel, with some appraisals coming in 10 to 20 percent – or even more – below the accepted offer.
“Over the past decade, finding ‘comps’ that accurately reflect values has been a challenge as values rose quickly during the boom and fell just as fast during the bust,” according to a recent article by RISMedia. “Discounts paid for foreclosures and short sales have created a dual price structure between ‘normal’ and distress sales.”
Obviously one of the easiest solutions when a low appraisal comes in: Ask the seller to agree to a lower price. But when that doesn’t work, consider the following tips:
Research
If clients feel the appraisal was completed incorrectly, they have the right to a copy of the appraisal from their lender, including who performed it and what comparables were used. For example, a client can find out where the appraiser is based (maybe it was an out-of-town appraiser who was unfamiliar with the area). If an out-of-town appraiser unfamiliar with the local market does the appraisal, clients can demand a new one.
Also, a client should evaluate the comparables used in the appraisal. If a client feels that the earlier home sales do not fairly compare to the home they wish to buy, they can ask their real estate agent to pull together a fairer list of recent comparable sales – or possibly even pending sales – to justify the agreed-to-sales price. That information should then be submitted to the loan’s underwriter when asking for a review of the appraisal.
Request a new appraisal
If clients feel the appraisal wasn’t done fairly or accurately, they can ask their lender for a new appraisal. A lender has the ability to override an appraisal estimate, though that’s unlikely. The lender could, however, order a new appraisal, which is more likely.
Get an independent appraisal
Clients could opt to get their own appraisal. (If the loan is an FHA loan, they should ask the lender for a list of approved appraisers.) The bank will generally review the appraisal and ask the previous appraiser if they agree or disagree with the new one. Banks may request yet another appraisal, or they could reject a private appraisal altogether. However, the first appraiser could agree with facts in the independent appraisal and return with a better price.
Source: “5 Ways to Fight a Low Appraisal,” RISMedia (Sept. 7, 2011)
Tuesday, September 13, 2011
Gov’t mulls expanding mortgage refinance program
WASHINGTON – Sept. 12, 2011 – The federal government is looking at how it could help a greater number of homeowners who owe more than their house is worth refinance at today’s historically low rates.
The Federal Housing Finance Agency said Friday that it has been reviewing a program launched two years ago to see if it could be expanded so more homeowners could qualify. The announcement was made in a statement released a day after President Barack Obama mentioned the idea in a speech to Congress.
The Home Affordable Refinance Program, or HARP, allows people whose homes are underwater by as much as 20 percent to refinance their mortgages at lower interest rates. Banks typically require that homeowners have some equity before approving a refinance loan.
The program gives homeowners a chance to reduce their mortgage payments by hundreds of dollars per month. But many people are not eligible for the program because their home values have fallen much further.
Edward J. DeMarco, the housing agency’s acting director, said officials are “carefully reviewing the mechanics” of the program to “identify possible enhancements that would reduce barriers for borrowers already otherwise eligible to refinance using HARP.”
The program only covers mortgages created before June 2009 and owned or backed by government-controlled mortgage buyers Fannie Mae and Freddie Mac. Borrowers also must be current on their payments.
This week, the average rate on a 30-year fixed mortgage fell to 4.12 percent. That’s the lowest level in six decades.
As of July, more than 838,000 homeowners had refinanced through the program. Officials had hoped at least 4 million Americans would take advantage.
Copyright © 2011 The Associated Press, Derek Kravitz, AP economics writer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
The Federal Housing Finance Agency said Friday that it has been reviewing a program launched two years ago to see if it could be expanded so more homeowners could qualify. The announcement was made in a statement released a day after President Barack Obama mentioned the idea in a speech to Congress.
The Home Affordable Refinance Program, or HARP, allows people whose homes are underwater by as much as 20 percent to refinance their mortgages at lower interest rates. Banks typically require that homeowners have some equity before approving a refinance loan.
The program gives homeowners a chance to reduce their mortgage payments by hundreds of dollars per month. But many people are not eligible for the program because their home values have fallen much further.
Edward J. DeMarco, the housing agency’s acting director, said officials are “carefully reviewing the mechanics” of the program to “identify possible enhancements that would reduce barriers for borrowers already otherwise eligible to refinance using HARP.”
The program only covers mortgages created before June 2009 and owned or backed by government-controlled mortgage buyers Fannie Mae and Freddie Mac. Borrowers also must be current on their payments.
This week, the average rate on a 30-year fixed mortgage fell to 4.12 percent. That’s the lowest level in six decades.
As of July, more than 838,000 homeowners had refinanced through the program. Officials had hoped at least 4 million Americans would take advantage.
Copyright © 2011 The Associated Press, Derek Kravitz, AP economics writer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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