Southwest Florida – Vacation Home Sales Are Showing Increased Activity

May 8th, 2012

If you’re thinking of buying a second home in the next five years, this might be your best opportunity according to a recent article in the Wall Street Journal.

Reports of bidding wars are coming to the surface for some markets.  On a national level, vacation-home sales are perking up as low prices pull more buyers off the fence. However, buyers are looking for vacation homes closer than further away.

Near-record-low mortgage rates, bargain prices and dwindling home inventories are bringing some once-untouchable markets within reach for the first time in a decade, say housing-market experts.  Those factors are “creating a sense of urgency,” says Pam O’Connor, president of Leading Real Estate Companies of the World, a broker network. “People feel like they might miss this window.” (**John R. Wood Realtors is a member of Leading Real Estate Companies of the World.)

Sales of vacation properties fell 56% between 2006 and 2010, but climbed 7% in 2011 to 502,000, according to the most recent survey by the National Association of Realtors, a trade association. Yet prices remain soft; according to the NAR, the median price on vacation homes dropped more than 19% in 2011 to $121,300.

Cash sales dominate in some markets like Southwest Florida.

In Naples, Florida, the drop from peak prices has been 55%, but the market is forecasted to rise +1.3% per year.

Realtor Brenda Fioretti of Prudential Florida Realty says that about 70% of home sales in Naples are cash-only deals and that buyers are flocking to high-rise condominium buildings on the Gulf of Mexico. The number of properties on the market as of April 1, 2012 was the lowest in nine years.

Are you ready to buy or sell in Southwest Florida?

To search for real estate in Naples, Bonita Springs, Estero or Marco Island, Florida, click HERE.

John R. Wood Realtors – The Symbol of Local Knowledge.

**John R. Wood Realtors is proud to be part of the largest network of independent real estate brokers. As a member of RELO, the Wood firm specializes in satisfying the needs of people who are relocating or need real estate assistance across town or across country. RELO Independent Brokers sell more homes than any national franchise.

Tags: , , , , , , , , , , , ,
Posted in Vacation homes in Florida | No Comments »





Southwest Florida Real Estate – Mortgage Rates Go Down Again

May 7th, 2012

For home buyers or refinancers, borrowing costs for home ownership just got a little cheaper as mortgage rates took another dip to new all-time record lows late last week

In its weekly mortgage market survey, Freddie Mac reported that “signs of slowing economic growth and inflation remaining subdued allowed yields on Treasury bonds to ease somewhat and brought most mortgage rates to new all-time record lows this week,” says Frank Nothaft, Freddie Mac’s chief economist.

 

Based on their report, here is an overview for week-ending May 3:

•30-year fixed-rate mortgages: averaged 3.84 percent, with an average 0.8 point, reaching a new historical low. The previous record for 30-year rates was 3.87 percent, which was set on Feb. 9 of this year. A year ago at this time, rates averaged 4.71 percent.

•15-year fixed-rate mortgages: averaged 3.07 percent, with an average 0.7 point, another historical low. The previous record for 15-year rates was 3.11 percent set on April 12 this year. A year ago at this time, 15-year rates had averaged 3.89 percent.

•5-year adjustable-rate mortgages: averaged 2.85 percent, with an average 0.7 point, holding the same as last week. Last year at this time, 5-year ARMs averaged 3.47 percent.

•1-year ARMs: averaged 2.70 percent this week, with an average 0.6 point, also registering at a new all-time low. Last year at this time, 1-year ARMs averaged 3.14 percent.

 

Are you ready to buy or sell in Southwest Florida?

To search for real estate in Naples, Bonita Springs, Estero or Marco Island, Florida, click HERE.

John R. Wood Realtors – The Symbol of Local Knowledge.

 

Tags: , , , , , , ,
Posted in Mortgages in Southwest FLorida | No Comments »





Economists Say Buy Now, as Housing Market is Turning Around

May 4th, 2012

According to an article by CNN Money featuring Clear Capital’s Alex Villacorte, an improving job market, a decrease in the number of home owners falling behind on their mortgage, and an anticipated improvement in access to mortgages is expected to help home prices start bouncing back by next year.

Home prices have fallen and mortgage rates are hovering near record lows, pushing home affordability for the average family to record highs. Meanwhile, rents have been on the rise, making owning a home cheaper than renting in most areas of the country, according to recent surveys. But these home prices won’t last for long, especially in key markets like Southwest Florida and Central Arizona.

Also contributing to this predicition are investors eyeing profits in rentals and snapping up bank-owned properties. Clear Capital’s Alex Villacorte attributes this as helping to lead to an increase in prices on foreclosed properties. This “could have a significant impact on the market overall in terms of providing a rising floor to home values,” Villacorte told CNNMoney.

Some areas are already seeing prices rise. In Phoenix, housing prices have already increased 8.4 percent during the three months ending April 30, and South Florida saw prices bump up 4.6 percent quarter over quarter, according to Clear Capital data.

If you want to buy, you want to act quickly because mortgage rates are expected to tick up slightly by the end of the year. The increase is being sparked by greater demand, says Doug Lebda, CEO of LendingTree. He predicts 30-year fixed-rate mortgages will inch up to 4.5 percent by the end of the year, which is still low, however, by historical standards.

The Mortgage Bankers Association is also predicting a big leap in mortgage loans next year. For this year, MBA estimates that buyers will take out loans totaling about $415 billion, but by 2013 that number is expected to nearly double to $706 billion.

Are you ready to buy or sell in Southwest Florida?

To search for real estate in Naples, Bonita Springs, Estero or Marco Island, Florida, click HERE.

John R. Wood Realtors – The Symbol of Local Knowledge.

 

Source: “Buying a Home Won’t get Much Cheaper,” CNNMoney (May 3, 2012)

Tags: , , , , , , , , , , , ,
Posted in Housing Market improving in Southwest Florida | No Comments »





Homes in Naples to appreciate by 10% this year

May 2nd, 2012

According to a Lawrence Yun,  chief economist and senior vice president of research for the National Association of Realtors, homes in Naples will appreciat3e by 10% this year.

Real estate is in recovery, locally and nationally, buyers have stepped up and prices are firming up, said Yun “Some of the hardest hit markets, including Naples, have been leaders in the recovery, he said. That has a lot do with their location. As you all know all real estate is local,” Yun said. “You can not pick it up and move it somewhere else.”

He predicted as much as a 10 percent appreciation in home prices by December in the Naples market over last year. While the markets in neighboring Lee County are recovering too, it’s not happening as fast because they saw more overbuilding during the boom years, Yun also said

Nationally, Yun said he expects home prices to increase by 1 to 3 percent by December. He expects increasing sales nationally, which he said could be boosted by 15 to 20 percent if banks just went back to using “normal underwriting standards,” instead of using such strict standards that are so limiting.

“This is not some wishful thinking,” Yun said, adding that he believed an over correction in the local market has pulled prices down too far.

In Collier County in the first quarter of 2012, pending sales increased 14 percent in the $300,000 to $500,000 market. They were up 29 percent in the $500,000 to $1 million market and rose 14 percent in the $1 million to $2 million market.

The median home price in the quarter increased 14 percent. The median is the price at which half the homes sell for more and half for less.

In addition to Yun, all speakers at the 2012 Economic Summit were optimistic about the real estate market in Southwest Florida.

Yun was just one of five speakers at the 2012 Economic Summit, a first-time event sponsored by the Naples Area Board of Realtors, or NABOR. The event, held at the Realtor association’s conference center off Pine Ridge Road, attracted a sell-out crowd of 250.”It sold out before we could even advertise it to our members,” said Brenda Fioretti, a Naples broker and NABOR spokeswoman.

The other speakers were John Tucillo, a chief economist with Florida Realtors, a statewide trade group; Shelton Weeks, a real estate professor and director of the Lucas Institute for Real Estate Development & Finance at Florida Gulf Coast Univesity, Doug Duncan, a vice president and chief economist for Fannie Mae, and Cindy Carroll, the vice president and manager of the residential division at Carroll & Carroll Real Estate Appraisers and Consultants in Naples. All of the speakers delivered a heavy dose of optimism about the real estate market in Southwest Florida.

Are you ready to buy or sell in Southwest Florida?

To search for real estate in Naples, Bonita Springs, Estero or Marco Island, Florida, click HERE.

John R. Wood Realtors – The Symbol of Local Knowledge.

 

 

Tags: , , , , , , , , , , , , ,
Posted in Naples FL real estate | No Comments »





Pending Home Sales 12.8% Higher Than This Time Last Year

May 1st, 2012

The National Association of Realtors (NAR) released their Pending Sales Report last week.  The reports showed that contracted sales were 12.8% higher than the same month last year and higher than any time since sales were impacted by the Homebuyers’ Credit back in April of 2010.

The index stood at 101.4 which represents a level that is “historically healthy” (see methodology below).

Here is a graph showing pending sales over the last twelve months:

Infograph courtesy of KCMblog.com

 

Based on NAR’s methodology…

The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months. 

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales; it coincides with a level that is historically healthy.

Are you ready to buy or sell in Southwest Florida?

To search for real estate in Naples, Bonita Springs, Estero or Marco Island, Florida, click HERE.

John R. Wood Realtors – The Symbol of Local Knowledge.

Tags: , , , , , , , , , , , , , , ,
Posted in Real Estate Market Reports, Southwest Florida Real Estate | No Comments »





Short Sales as a % of All Sales: Florida just 3.89% from lower level

April 30th, 2012

The chart and information below, courtesy of the KCM blog and RealtyTrac, shows short sales as a % of all sales percentages by state.  Florida comes in at 13.88%, which is well below the cut off level of 19.99% going into the next higher level.

Top states that have experienced similar real estate market activity as Florida did some 5 years ago, like California and Arizona, still remain in the 20% or higher category while Florida is just 3.89% shy of the lower % level of short sales as a % of all sales.

Are you ready to sell or buy in Southwest Florida?

To search for real estate in Naples, Bonita Springs, Estero or Marco Island, Florida, click HERE.

John R. Wood Realtors – The Symbol of Local Knowledge.

 

Tags: , , , , , , , , , , , , ,
Posted in Short Sales in Southwest Florida | No Comments »





NAR Reports That Pending Home Sales Rise To Highest Level in 2 Years

April 27th, 2012

According to the National Association of Realtors, pending home sales increased in March 2012 and is well above this time last year. 

NAR’s pending home sales index, a forward-looking indicator based on contract signings, rose 4.1% to 101.4 in March from an upwardly revised 97.4 in February. It is 12.8% above March 2011 when it was 89.9.  The data reflects contracts but not closings. The index is now at the highest level since April 2010 when it reached 111.3.

Lawrence Yun, NAR chief economist, said 2012 is expected to be a year of recovery for housing. “First-quarter sales closings were the highest first-quarter sales in five years. The latest contract signing activity suggests the second quarter will be equally good,” he said.

“The housing market has clearly turned the corner,” Yun added. “Rising sales are bringing down inventory and creating much more balanced conditions … which means home prices will be rising in more areas as the year progresses.”

 The index is based on a large national sample, typically representing about 20% of transactions for existing-home sales. An index of 100 is equal to the average level of contract activity during 2001, which was the first year of examination.

 Lawrence Yun, NAR chief economist, talks more about it in this VIDEO.

Are you ready to buy in Southwest Florida?

To search for real estate in Naples, Bonita Springs, Estero or Marco Island, Florida, click HERE.

John R. Wood Realtors – The Symbol of Local Knowledge.

Tags: , , , , , , , , , ,
Posted in National Home Sales, Southwest Florida Real Estate | No Comments »





Naples, Florida Real Estate – 5 Things That Will Sell Your Home This Spring

April 26th, 2012
  1. Pay attention to “curb appeal”: First impressions are critical, and homes with inviting landscapes and exteriors tend to sell better, agents say. Pay attention that the driveway is in good condition, lawn well-kept, and the house looks freshly painted.
  2. Set the right price: Your John R. Wood agent will know how to set the price and prepare a home for sale. By setting a realistic price from the beginning, sellers should be reminded that this will prevent having to drop the price of the home several times before getting it sold and having it linger on the market. If no recent comps are available, some experts recommended sellers get an appraisal, which will also offer a realistic price that the bank may be willing to take when a buyer tries to qualify for financing the home.
  3. Talk about energy efficiency: Many buyers don’t fully understand “green” homes but they understand savings. Sellers should point out any features in their homes — such as energy-efficient windows or appliances — that could save buyers money with utility costs.
  4. Give the home Internet appeal: Good photographs make a home stand-out online and help lure more potential buyers to the front door. Realtor.com says that more than 6,300 photos are viewed per minute on listings posted at its site.
  5. Make it move-in ready: Fix any needed repairs, such as water stains, creaky doors, and windows that don’t shut. Flaws in the home — even if relatively minor — can distract buyers, and should be fixed before the home is even listed. Some agents recommend that sellers get a home inspection prior to putting the home up for sale, which can help sellers be proactive in identifying any potential problems that could potentially derail a sale later on. Once a problem is uncovered, sellers are obligated to disclose it or fix it.

Are you ready to sell your home in Southwest Florida?

John R. Wood Realtors – The Symbol of Local Knowledge.

 

 

Tags: , , , , , , , ,
Posted in Selling your home in Naples, Selling your Southwest Florida Home | No Comments »





New Rules to Keep Mortgage Lenders in Check

April 25th, 2012

The Consumer Financial Protection Bureau just rolled out eight new proposed rules that will keep mortgage lenders in check and future homeowners out of financial trouble.  The rules aren’t final yet, as the agency pitches them to Congress this summer, but they could change everything about how consumers borrow money for home purchases.

“The mortgage servicing rules we are considering reflect two basic, common-sense principles – no surprises and no runarounds,” said CFPB Director Richard Cordray in a statement just yesterday. “For too long, mortgage servicers have not been held accountable to their customers, and the result has been profoundly punishing to homeowners in distress. It’s time to put the ‘service’ back in mortgage servicing.”

 Here are the proposed rules:

  • Clear Monthly Mortgage Statements: Statements will have everything out in the open –  a breakdown of payments by principal, interest, fees, and escrow; the amount of and due date of the next payment; and, for delinquent borrowers, alerts and information about counselors who can help them work with servicers and avoid foreclosure.
  • Options for Avoiding Costly “Force-Placed” Insurance: Bank of America and Citigroup are already at the center of a New York state probe into claims they are among several big banks that have been overcharging consumers for insurance. This rule would give the consumers more rights including requiring servicers to give advance notice and pricing information before charging consumers for this insurance.
  • Early Information and Options for Avoiding Foreclosure: This is all about giving customers a chance to modify their loans if they fall into default.
  • Payments Immediately Credited: Servicers generally would have to credit a consumer’s account promptly after receiving payment.
  • Records Kept Up-to-Date and Accessible: Minimize errors, prevent document loss, provide accurate information to borrowers, and assist with error resolution.
  • Errors Corrected Quickly: Another time suck the CFPB hopes to eliminate by requiring lenders to respond promptly to customer complaints.
  • Direct and Ongoing Access to Servicer Foreclosure Prevention Team: Keep lines of communication open by giving easy access to employees for struggling homeowners.

 Are you ready to buy in Southwest Florida?

To search for real estate in Naples, Bonita Springs, Estero or Marco Island, Florida, click HERE.

John R. Wood Realtors – The Symbol of Local Knowledge.

 

Tags: , , , , , , , , , ,
Posted in Buying real estate in Naples Florida, Mortgage Loans | No Comments »





Real Estate Market – What do the Experts Say?

April 24th, 2012

Last week, the National Association of Realtors’ Existing Sales Report was released and stated that sales were down 2.6% from the previous month. However, monthly variations should not be the determining factor in deciding where the market is going. For example, in the same report, NAR explained that sales were up 5.2% over last March’s numbers.

The state of the market should not be solely determined by one figure – namely the decrease in sales figure. Experts should look at the key underlying data that truly determines where the market will be heading.

Here is what leading economists in the housing industry are saying:

Paul Diggle, property economist, Capital Economics

“March’s decline in existing home sales probably reflects the normal month by month volatility rather than renewed underlying weakness. The increase in households’ confidence in the outlook for the housing market, coupled with a gradual improvement in the pace of the economic recovery, should drive a rise in home sales later this year….It is possible that the pattern within the quarter has been driven by the weather, with falls in the most recent two months reflecting a degree of payback after January’s gain.”

Doug Duncan, chief economist, Fannie Mae

“Conditions are coming together to encourage people to want to buy homes. Americans’ rental price expectations for the next year continue to rise, reaching their record high level for our survey this month. With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that homeownership is a more compelling housing choice.”

Celia Chen, senior director of housing economics, Moody’s

“The residential property market is recovering, as the factors underlying demand and supply strengthen. Even after accounting for unusual seasonal patterns brought on by the unusually warm winter, conditions have not been this strong since the government ended homebuyer tax credits in 2010.”

 

Mark Vitner, senior economist, Wells Fargo

“Existing home sales dropped 2.6 percent, but are up 5.2 percent from a year ago. While existing sales are down for the second consecutive month, we are likely continuing to see payback from increases earlier this year. That said, we could see one more month of disappointing data, but we still contend the recent declines are not indicative of the trend. Stabilization will become more apparent once we return to normal weather.”

Mark Fleming, chief economist, CoreLogic

“Since the peak in home prices, mortgages rates have declined and affordability has risen dramatically. Housing affordability is at levels not seen since prior to the early 1990s …While real estate professionals often say that “now is a good time to buy,” it is clear today that April 2006 was probably not a good time to buy, while now may well be the time.”

 

All agree that increasing stability is in the future and now is a good time to buy.

Are you ready to buy in Southwest Florida?

To search for real estate in Naples, Bonita Springs, Estero or Marco Island, Florida, click HERE.

John R. Wood Realtors – The Symbol of Local Knowledge.

 

Tags: , , , , , , , , , ,
Posted in Market Updates, Real Estate News | No Comments »





« Older Entries
Newer Entries »