Posts Tagged ‘Buying a Southwest Florida home’

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Economists Say Buy Now, as Housing Market is Turning Around

Friday, 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)

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Homes in Naples to appreciate by 10% this year

Wednesday, 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.

 

 

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Pending Home Sales 12.8% Higher Than This Time Last Year

Tuesday, 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.

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

Friday, 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.

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Real Estate Market – What do the Experts Say?

Tuesday, 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.

 

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Naples, Florida Real Estate – Gulf Shore Blvd Q1 Market Report

Monday, April 23rd, 2012

The John R. Wood Realtors’ Quarter One Gulf Shore Blvd Market Report is now available! Get real estate market information about beachfront and bayfront properties in Naples, Florida!

Click HERE for the full report!

 

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.

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John R. Wood Realtors’ Q1 Real Estate Market Report Now Available!

Friday, April 20th, 2012

 

The 2012 Q1 John R. Wood Realtors Market Report is now available!

Some highlights include:

  • Demand f0r Southwest Florida properties remains strong.
  • On a rolling twelve month basis, the number of annual sales has stabilized around the 10,000 level since April 2010.
  • Although demand has remained consistent at this level, inventory continued to decline another 23.5% during this period.
  • Short sales and  foreclosures as a percentage of the overall inventory are also decreasing.  In march 2010 there were 1,687 distressed properties in inventory representing 16% of the market.
  • At the end of first quarter 2012, this number stands at 788, comprising only 10% of available units.

To learn more about market dynamics in your neighborhood, contact your John R. Wood Professional or our Customer Service department at (239) 262-1900. Visit our award-winning website at www.JohnRWood.com to see the full Q1 Market Report and to preview all of Southwest Florida’s finest properties.

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.

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Now is the Time to Buy a Home According to a Consumer Survey

Thursday, April 19th, 2012

A convergence of factors is leading more Americans to believe that now is a good time to buy a home, according to the latest Fannie Mae Housing Survey.  The belief that rents, home prices and mortgage rates all will rise this year contributed to that determination.

The monthly survey conducted in March found that 73% of respondents believed now is a good time to buy a home, up from 70% in February. “Conditions are coming together to encourage people to want to buy homes,” Doug Duncan, vice president and chief economist of Fannie Mae, said in a news release. “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.”

Get more information HERE.

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.

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John R Wood Realtors March 2012 Market Report- Median Sales Price Increases as Inventory Continues to Decrease

Monday, April 16th, 2012

Closed Sales

March 2012 remained the same as March 2011 with 22 closings priced at $2,000,000 or more. However, the price segment between $500,000 and $750,000 posted the biggest gains for the first three months on 2012 with a 34% increase over prior year. Additionally, the Average sales price year-to-date is the highest in four years, while median sales price increased 9% over this time in 2011.

Pended Sales

March 2012 pended sales priced at $1,000,000 and higher showed a 32% increase over March 2011. The pended sales year-to-date show a slight decrease from 2011, but remain among the highest on record for the period.

New Listings

Inventory is decreasing, as the number of properties placed on the market in March 2012 is the lowest for the month in nine years. On April 1, 2012, available inventory in the combined Naples, Bonita Springs and Estero market was just 7,625 units (4,106 condominiums and 3,519 single-family homes). This represents a 5% decrease from April 1, 2011 and is approximately an 8.9 month supply based on closings for the past 12 months.

 

For the full market report, click on the links below.

Market Report March 2012

Neighborhood Snapshot March 2012

 

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.

 

 

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Southwest Florida Real Estate – 6 Ways to Delay (or Kill) Your Real Estate Deal

Friday, April 13th, 2012

If you’re like many people,  you are taking advantage of the Southwest Florida real estate market by purchasing a home in paradise.  And, perhaps you’re looking at properties and just applied for a mortgage.

Now is a critical time to keep your ducks in a row, especially as it pertains to your mortgage application and finances. Here are six ways to delay or kill your real estate deal.  To be perfectly clear, you DON’T want to do any of these things once you’ve applied for a mortgage.

  1.  1.  Don’t deposit cash into your bank accounts. Lenders need to source your money and cash is not really traceable.  Small, explainable deposits are fine, but getting $10,000 from your parents as a gift in cash is not. Discuss the proper way to track your assets with your loan officer.
  2. Don’t make any large purchases like a new car or a bunch of new furniture. New debt comes with it, including new monthly obligations. New obligations create new qualifications. People with new debt have higher ratios…higher ratios make for riskier loans…and sometimes qualified borrowers are no longer qualifying.
  3. Don’t co-sign other loans for anyone. When you co-sign, you are obligated. With that obligation comes higher ratios, as well. Even if you swear you won’t be making the payments, the lender will be counting the payment against you.
  4. Don’t change bank accounts. Remember, lenders need to source and track assets. That task is significantly easier when there is a consistency of accounts. Frankly, before you even transfer money between accounts, talk to your loan officer.
  5. Don’t apply for new credit. It doesn’t matter whether it’s a new credit card or a new car, when you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), your FICO score will be affected. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.
  6. Don’t close any credit accounts. Many clients have erroneously believed that having less available credit makes them less risky and more approvable. Wrong. A major component of your score is your length and depth credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both those determinants of your score.

The best advice is to fully disclose and discuss your plans with your loan officer before you do anything financial in nature. Any blip in income, assets, or credit should be reviewed and executed in a way to keep your application in the most positive light.

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.

 

source: kcmblog.com

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