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Florida’s Existing Home, Condo Sales Rise in 3Q 2009

Statewide sales of existing condominiums in the third quarter rose 56 percent compared to the same time the previous year. This marks the fourth consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.

Statewide sales activity in 3Q 2009 also increased over 2Q 2009’s sales figure in both the existing home and existing condo markets, Florida Realtors’ records show. For 3Q 2009, statewide sales of existing homes rose 2.82 percent over the 2Q 2009 figure; existing condo sales statewide in 3Q 2009 increased 0.37 percent over the 2Q 2009 level.

To gain insight into current trends in Florida’s real estate industry, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a quarterly survey of industry executives, market research economists, real estate scholars and other experts.

“Most economists think the recession is over, but people are afraid to spend money as unemployment keeps going up, which creates problems for every sector of the real estate market,” said Tim Becker, the center’s director.

On the positive side, survey respondents expressed increasing optimism about their own business outlook, and predicted great opportunities for future investment. Becker noted that the euro’s favorable exchange rate against the dollar and the availability of desirable commercial property at low prices is encouraging international investors.

“Everybody thinks that Florida will rebound because we have so much going for us – the sun shines every day and there are a lot of advantages to living here,” he said. “Foreign investors see that too and believe their prospects are good for long-term investments.”

All of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in the third quarter compared to the same three-month-period a year earlier, while 17 MSAs showed gains in condo sales.

The statewide existing-home median sales price was $145,400 in the third quarter; a year earlier, it was $185,600 for a decrease of 22 percent. The 3Q 2009 statewide existing-home median sales price was 1.25 percent higher than 2Q’s statewide existing-home median sales price of $143,600. According to industry 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 a typical market price where half the homes sold for more, half for less.

In the year-to-year quarterly comparison for condo sales, 14,797 units sold statewide for the quarter compared to 9,488 in 3Q 2008 for a 56 percent increase. The statewide existing-condo median sales price was $106,100 for the three-month period; in 3Q 2008, it was $160,100 for a decrease of 34 percent.

Low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5.16 percent in 3Q 2009; one year earlier, it averaged 6.32 percent.

Two charts showing statistics for Florida and its MSAs are attached. One chart compares the volume of existing, single-family home sales and median sales prices in the third quarter of 2009 to the third quarter of 2008, based on Realtor closed transactions from local Realtor boards/associations within the MSAs. The second chart compares the volume of existing condo sales and median sales prices in third quarter 2009 to third quarter 2008, based on Realtor closed transactions from local Realtor boards/associations within the MSAs.

Single-Family pdf html
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Florida Realtors®, formerly known as the Florida Association of Realtors®, serves as the voice for real estate in Florida. It provides programs, services,

Yes, the Housing Market Has Rarely Looked Better

by James B. Stewart
Wednesday, September 2, 2009provided by

Passing through the Fort Myers, Fla., airport a few weeks ago, I noticed people eagerly signing up for a free bus tour of foreclosed real estate — with all properties offering water views. During the ride to my hotel, the young driver volunteered that he’d just bought his first house, paying $65,000 for a foreclosed property in nearby Cape Coral that had last sold for over $250,000. He said he’d never expected to be able to buy anything on a driver’s salary, let alone something that nice.

Last week, Standard & Poor’s reported that its S&P/Case-Shiller U.S. National Home Price index of real estate values increased this past quarter over the first quarter of 2009, the first quarter-on-quarter increase in three years. Its index of 20 major cities also rose for the three months ended June 30 over the three months ended May 31, with only hard-hit Detroit and Las Vegas experiencing declines. The week before that, the National Association of Realtors reported that sales volume of existing homes was up 7.2% in July from June.

More from SmartMoney.com: • 5 Strategies to Lower Your Rent Now • Return of the First-Time Homebuyer • Is an FHA-Insured Mortgage Right for You?

In short, the data suggest that real-estate prices hit a bottom some time during the second quarter, and have now begun to rise. There’s no way to be certain that this marks the end of the long, painful correction that followed the real-estate bubble, but clearly prices are no longer in free fall. That means if you’ve been sitting on the fence, it’s time to act.

Ordinarily I’d never try to time the real-estate market, but I can understand why buyers have been cautious. Few want to buy in down markets, just as stock buyers avoid bear markets. And for most people, of course, buying a house is a much bigger decision than buying a stock. But with real estate prices nationally now down about 30% from their 2006 peak, and showing signs of turning up, the prices aren’t likely to go much lower. Every real-estate market is local, and so there may be a few exceptions. Overall, though, I can’t imagine a better time to buy than right now.

In addition to bargain prices, buyers should find plenty of homes to choose from. The inventory of unsold homes was 4.09 million units in July, up 7.3% from June, according to the National Association of Realtors. And mortgage rates this week were at a two-month low of close to 5%, according to Zillow. Even the stricter appraisal process is working to the advantage of buyers. Appraisals are coming in far lower than most sellers have been expecting, forcing them to face the new reality of sharply lower prices. And with stricter standards, lenders aren’t going to let buyers borrow more than they can afford, which protects buyers and helps to keep prices down.

Unless you’re really prepared to accept the demands (and headaches) of being a landlord, I don’t recommend direct ownership of real estate as an investment. The days of buyers lining up to buy and flip Miami Beach and Las Vegas condos are mercifully gone. There are much easier ways to make money in real estate, such as real-estate investment trusts or buying shares in home builders and other housing-related businesses (such as Home Depot (HD)). Historically, the mean rate of return on real estate has been around 3%, according to research from Yale economist Robert Shiller, who co-developed the Case-Shiller index. Shares in REITs and other stocks have often done much better.

But there’s a good reason home ownership has been such a central part of the American dream. It delivers security, pride of ownership, a sense of community and decent investment returns as a bonus. I felt glad for my driver in Florida. He represents the other side of the foreclosure crisis. For every hardship story, and no doubt there are many, others are realizing their dreams of home ownership and getting what may well turn out to be the deals of their lives.

Copyrighted, SmartMoney.com. All Rights Reserved.

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Rates

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• Mortgage

  Loan Type	Today	Last Week
  30 Year Fixed	5.20%	5.29%
  15 Year Fixed	4.67%	4.85%
  1 Year ARM	4.03%	3.97%
  30 Year Fixed Jumbo	6.09%	6.22%
  5/1 ARM	4.47%	4.60%
  3/1 ARM	4.91%	4.91%

  Source: Bankrate
• Home Equity

  Loan Type	Today	Last Week
  $30K Home Equity Loan	8.42%	8.48%
  $50K Home Equity Loan	8.44%	8.55%
  $75K Home Equity Loan	8.48%	8.58%
  $30K HELOC	5.25%	5.21%
  $50K HELOC	4.99%	4.93%
  $75K HELOC	5.00%	4.93%

  Source: Bankrate
• Savings

  Savings Type	Today	Last Week
  6 month CD	1.24%	1.24%
  1 year CD	1.61%	1.60%
  3 year CD	2.18%	2.18%
  MMA	1.15%	1.16%
  $10K MMA	1.17%	1.17%
  $25K MMA	1.40%	1.42%

  Source: Bankrate
• Auto

  Loan Type	Today	Last Week
  36 Month New Car Loan	7.19%	7.22%
  48 Month New Car Loan	7.38%	7.43%
  60 Month New Car Loan	7.47%	7.53%
  36 Month Used Car Loan	8.14%	8.22%
  48 Month Used Car Loan	8.08%	8.11%

  Source: Bankrate
• Credit Cards

  Card Type	Today	Last Week
  Balance Transfer Credit Cards	10.14%	10.14%
  Low Interest Credit Cards	10.62%	10.62%
  Business Credit Cards	11.07%	11.07%
  Cash Back Credit Cards	11.77%	11.77%
  Reward Credit Cards	12.16%	12.16%
  Instant Approval Credit Cards	12.99%	12.99%

  Source: CreditCards.com

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Lee existing home sales almost double year-over-year
By DICK HOGAN • dhogan@news-press.com • September 24, 2009

 Read Comments(6) RecommendPrint this pageE-mail this articleShare
Del.icio.usFacebookDiggRedditNewsvineBuzz up!TwitterThere were 1,252 existing single-family homes sold in August in Lee County with the help of a Realtor, almost twice the 684 from a year earlier, according to statistics released today by the Florida Association of Realtors.

The median price of a house sold was $89,300, off 39 percent from the $146,900 a year earlier.

In Charlotte County, the number of homes sold rose 31 percent from 176 to 230 and the median price fell 25 percent from $138,100 to $103,300 in the same period, according to the association.

In a separate report also issued today, the National Association of Realtors reported that home resales nationally dipped unexpectedly last month after a four-month streak of gains, providing evidence that the housing market recovery remains fragile.

Sales dropped 2.7 percent to a seasonally adjusted annual rate of 5.1 million in August, from a pace of 5.24 million in July, according to the national association’s report.

Sales, which were still up 3.4 percent from a year earlier, had been expected to rise to an annual pace of 5.35 million, according to economists surveyed by Thomson Reuters.

“We suspect it is just a temporary blip in the improving trend rather than a sign of renewed weakness,” wrote Paul Dales, U.S. economist at Capital Economics.

First-time buyers purchased almost one in three homes last month. New homeowners will get an $8,000 tax credit if they complete the transaction by Nov. 30, which the credit expires.