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WaterColor Real Estate, Rosemary Beach and Scenic 30A

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Housing Trends for 2013

Housing Recovery to Continue in 2013

 

 

 

 

Mortgage News Daily BY JANN SWANSON

Three economists told attendees at the International Builders Show that the housing market should continue to improve on an accelerating basis in 2013. But each cautioned that there are many factors, especially on the federal government level, that could still derail the recovery

David Crowe, Chief Economist, said that nearly every indicator of housing market strength, permits, prices, sales, housing starts, and builder confidence, has been trending upwards in recent months. He noted that home prices, which are up nearly 6 percent on an annualized basis over the last 10 months, are particularly important because they are a trigger for people to return to the market.

He pointed as well to other positive indicators including low rates and strong affordability, rising household formation and a general improvement in the economy. Housing is now also contributing to rather than acting as a drag on the economy and increased its share of economic growth to 12.8 percent in the fourth quarter of 2012.

Setting the 2000-2003 period as baseline benchmark for normal housing activity, Crowe ticked off other positive indicators:

Residential remodeling has returned to previously normal levels and activity is expected to increase 2.4 percent this year.

The hardest-hit market, single-family houses, was running at 44 percent of normal production in the fourth quarter of 2012 but should rise to 52 percent of what is considered a typical market by the fourth quarter of this year and 70 percent by the fourth quarter of 2014.

Single-family starts are anticipated to rise 22 percent from 535,000 last year to 650,000 in 2013 and to 844,000 units in 2014.

On the multifamily side, NAHB is anticipating that starts will increase 22 percent from 246,000 units last year to 299,000 in 2013, and rise an additional 6 percent to 317,000 units in 2014.

However, Crowe cautioned that builders continue to face several challenges, including stubbornly tight mortgage lending conditions, inaccurate appraisals, rising materials prices and a declining inventory of buildable lots. He also cited the potential that the continuing gridlock in Washington over the debt ceiling, sequestration, and the budget along with calls by some policymakers for major changes to the mortgage interest deduction, could negatively impact consumer confidence and future housing demand.

Prices rose in 42 states between September 2011 and September 2012 Nothaft said, and prices increased nationwide by 4 percent. They are projected to increase 2 to 3 percent in 2013 and with the oversupply of vacant homes at their lowest level in a decade, this will further ease downward price pressure.

 

Housing Starts Strong in 2012

U.S. builders started work on homes in December at the fastest pace since the summer of 2008 and finished 2012 as their best year for residential construction since the early stages of the housing crisis. It is an increase of 28.1 percent from 2011. And it is the most since 2008 – shortly after the housing market began to collapse in late 2006 and 2007.

In December, the pace of single-family home construction, which makes up two-thirds of the market, increased 8 percent. It is now 75 percent higher than the recession low reached in March 2009.

Applications for building permits, a sign of future construction, inched up to a rate of 903,000 – a 4 1/2-year high.

Confidence among homebuilders held steady in January at the highest level in nearly seven years. But builders are feeling slightly less optimistic about their prospects for sales over the next six months, according to a survey released Wednesday.

In November, sales of previously occupied homes rose to their highest level in three years, while new-home sales reached a 2 1/2-year high.

Those factors have helped make homebuilders more confident and spurred new home construction. But homebuilders’ are still warily watching the current standoff in Washington between President Barack Obama and Congress over several approaching budget deadlines, including the need to boost the nation’s $16.4 trillion borrowing limit.

Though new homes represent less than 20 percent of the housing sales market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to data from the homebuilders association.
AP LogoCopyright © 2013 The Associated Press, Martin Crutsinger, AP economics writer. All rights reserved.

 

 

Watercolor Florida Price Reduction

 

 

PRICE REDUCED to $1,125.00

102 Red Cedar Way

Watercolor, Florida  32459

Year Built: 2004
Style: Florida Cottage
4 Bedrooms
5 Baths
2,772.00 SqFt

Don’t miss this opportunity. This is the largest home for the money in the Camp district of Watercolor. Just Steps away from Camp Watercolor, this fabulous home was built by Monte Hewitt Homes. Home is being sold furnished excluding art. This wonderful home features 4 bedrooms, all with private baths, including one main floor bedroom. The wonderful Master suite features a private screened porch. The open floor plan is great for entertaining large groups. The spacious kitchen features custom stained cabinetry, stainless steel appliances and center island. The open living and dining area features a fireplace and screened porch with additional seating for outdoor dining. The expansive wrap-around porches are great overflow areas when entertaining large groups. Located beside the home is one of the many nature trails in Watercolor. Located on a private and wooded lot, makes this home an appealing property. .5% of sale paid at time of close to St. Joe Community Foundation.

 

Karen Holder

Broker Owner

Homes on 30a

850.687.1064

 

 

Florida Realtors – “Bank Owned Sales No Longer A Bargain”

An article published on FloridaRealtors.org explains how the market has shifted and bank owned sales are no longer a bargain.  Many people are still seeking the hottest deals and biggest steals with an inherit belief that foreclosures are the way to go.  In all actuality with today’s market, the discount is much less than in the past.

“According to a study by Zillow, the national average discount of a real estate owned (REO) property compared to a non-REO was only 7.7 percent in September – a sizable change from the 23.7 percent average discount that peaked nationally in August 2009 and less than the average 9.1 percent discount one year earlier.”

Foreclosures in parts of Florida show to be anything but a bargain.  Zillow included 3 Florida metro areas in an analysis that touts an average REO saving of 2.9% in the Miami-Ft Lauderdale market which is down nearly 20% in August 2008 and in 2011 down almost half.  In November of 2008, Tampa REO’s peaked selling at a 29.1% discount compared to only a 9% discount this September.

“The smallest foreclosure discount is found in places where competition for homes” is high, says Zillow Chief Economist Dr. Stan Humphries. “People are willing to pay the same amount for a foreclosure re-sale that they would for a non-distressed home simply to take advantage of historic affordability.”

Real estate on a hyper-local level is on par with the claims from this article published November 9, 2012 by Florida Realtors Organization.  It has become the norm to see “feeding frenzies” when REO’s hit the market in our area and not uncommon to have 10+ offers on a particular property within 24 hours of it hitting the market.  In 2008, the discount from original list price vs sales price on 30A was 63.3% compared to 2011 which was 95.8% off the original list price.

The lesson here is to be educated and ready.  If you have been watching a property that is going through the foreclosure process –

1)  Have a pre-qualification and/or proof of funds letter from your lender ready.  All banks will require these documents to accompany an offer so if you have them ready, you have an edge against competing offers.

2)  Ask your realtor to provide a comprehensive comparable market analysis so you know what the property is worth prior to it hitting the market.  Many banks are listing just at or slightly under market value and knowing the true market value ahead of time will give you  a better idea of what to expect for the final purchase price.

3)  Be prepared to offer more than asking price but know your limits prior to entering into the offer process.

4)  Be Ready!  The realtors in our area are looking out for you and the minute they get wind of REO’s hitting the market, they are preparing their buyer’s to be ready.  It is up to you to prepare yourself for when your realtor calls informing you that the opportunity is knocking.

 

30A YTD Closed/Sold Profile Report

Karen Holder

Broker Associate

The Beach Group

850.687.1064

www.Homeson30A.com

 

30A  Real Estate Sales Stats for Detached Single Family Homes 2011-2012

 

       Sales Price Range 2011 2012   Percentage Change
$0- $99,999 5 1 -80.00%
$100,000- $149,999 4 7 75.00%
$150,000- $199,999 22 26 18.18%
$200,000- $249,999 19 21 10.52%
$250,000- $299,999 28 35 25.00%
$300,000- $349,999 41 22 -46.34%
$350,000- $399,999 23 32 39.13%
$400,000- $449,999 30 34 13.33%
$450,000- $499,999 32 37 15.62%
$500,000- $549,999 15 27 80.00%
$550,000- $599,999 15 20 33.33%
$600,000- $699,999 12 37 208.33%
$700,000- $799,999 20 21 5.00%
$800,000- $899,999 22 26 18.18%
$900,000- $999,999 19 27 42.10%
$1,000,000-$1,499,000 47 59 25.53%
$1,500,000-$1,999,999 19 26 36.84%
2Million and Above 30 28 -6.66%
Total 403 489 20.59%