A new Trulia study shows that owning a home is more affordable than renting over a seven-year time frame in America's 100 biggest cities.
Trulia collected data on homes for sale and for rent from its Web site between June 1, 2012 and August 31, 2012, and factored in such items as transaction costs, taxes, and opportunity costs. The study assumes that the home is sold after seven years and includes closing costs, maintenance, insurance, property taxes and other costs. The cost of renting includes security deposit and renters insurance.
Trulia found that nationally, owning is 45 percent cheaper than renting, with affordability highest in Detroit and lowest in Honolulu and San Francisco.
Download Trulia's full buy vs. rent cost analysis (PDF).
Source: "Homeownership 45 Percent Cheaper Than Renting, But Factors Vary," eCredit Daily (09/17/12)
(c) Copyright 2012 Information, Inc
Thursday, September 20, 2012
Wednesday, September 19, 2012
Florida's housing market continues positive trend in August
NAR: August existing-home sales and prices rise
ORLANDO, Fla. – Sept. 19, 2012 – Florida’s housing market had more closed sales, more pending sales, higher median prices and a reduced inventory of homes for sale in August, according to the latest housing data released by Florida Realtors®.
“Florida’s housing marketing continues its momentum,” said 2012 Florida Realtors President Summer Greene, regional manager of Better Homes and Gardens Real Estate Florida 1st in Fort Lauderdale. “Buyers who have been waiting on the sidelines should see this as a sign to jump in before the market escapes them again. Sellers who have been hesitant to sell should put their homes on the market now. Chances are they will entertain multiple offers and be able to take advantage of historically low interest rates to buy their next home. Now our biggest challenge will be appraisals keeping up with the pace of this market.”
Statewide closed sales of existing single-family homes totaled 18,669 in August, up 10.8 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. Closed sales typically occur 30 to 90 days after sales contracts are written.
Meanwhile, pending sales – contracts that are signed by not yet completed or closed – of existing single-family homes last month rose 40.2 percent over the previous August. The statewide median sales price for single-family existing homes in August was $147,000, up 5.8 percent from a year ago.
According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in July 2012 was $188,100, up 9.6 percent from the previous year. In California, the statewide median sales price for single-family existing homes in July was $333,860; in Massachusetts, it was $325,000; in Maryland, it was $261,772; and in New York, it was $233,000.
The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that 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.
Looking at Florida’s year-to-year comparison for sales of townhomes/condos, a total of 8,767 units sold statewide last month, up 5.7 percent from those sold in August 2011. The statewide median for townhome-condo properties was $102,980, up 13.2 percent over the previous year. NAR reported the national median existing condo price in July 2012 was $180,700.
Last month, the inventory for single-family homes in August stood at a 5.3-months’ supply; inventory for townhome-condo properties was also at a 5.3-months’ supply, according to Florida Realtors. Industry analysts note that a 5.5-months’ supply represents a market balanced between buyers and sellers.
“Florida’s housing market is still reviving,” said Florida Realtors Chief Economist Dr. John Tuccillo. “Everything that should be going up is going up, and everything that should be going down is going down. After the six years of turmoil that we had, it’s good to see the trends strongly moving in the right direction. We’re hurting for inventory, but it’s possible that the improving conditions will lure more sellers into the market and mitigate the housing inventory crunch.”
The interest rate for a 30-year fixed-rate mortgage averaged 3.60 percent in August 2012, lower than the 4.27 percent averaged during the same month a year earlier, according to Freddie Mac.
To see the full statewide housing activity report, go to Florida Realtors website and click on the Research page; then look under Latest Housing Data, Statewide Residential Activity and get the August report. Or go to Florida Realtors Media Center and download the August 2012 data report PDF under Market Data.
© 2012 Florida Realtors®
ORLANDO, Fla. – Sept. 19, 2012 – Florida’s housing market had more closed sales, more pending sales, higher median prices and a reduced inventory of homes for sale in August, according to the latest housing data released by Florida Realtors®.
“Florida’s housing marketing continues its momentum,” said 2012 Florida Realtors President Summer Greene, regional manager of Better Homes and Gardens Real Estate Florida 1st in Fort Lauderdale. “Buyers who have been waiting on the sidelines should see this as a sign to jump in before the market escapes them again. Sellers who have been hesitant to sell should put their homes on the market now. Chances are they will entertain multiple offers and be able to take advantage of historically low interest rates to buy their next home. Now our biggest challenge will be appraisals keeping up with the pace of this market.”
Statewide closed sales of existing single-family homes totaled 18,669 in August, up 10.8 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. Closed sales typically occur 30 to 90 days after sales contracts are written.
Meanwhile, pending sales – contracts that are signed by not yet completed or closed – of existing single-family homes last month rose 40.2 percent over the previous August. The statewide median sales price for single-family existing homes in August was $147,000, up 5.8 percent from a year ago.
According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in July 2012 was $188,100, up 9.6 percent from the previous year. In California, the statewide median sales price for single-family existing homes in July was $333,860; in Massachusetts, it was $325,000; in Maryland, it was $261,772; and in New York, it was $233,000.
The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that 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.
Looking at Florida’s year-to-year comparison for sales of townhomes/condos, a total of 8,767 units sold statewide last month, up 5.7 percent from those sold in August 2011. The statewide median for townhome-condo properties was $102,980, up 13.2 percent over the previous year. NAR reported the national median existing condo price in July 2012 was $180,700.
Last month, the inventory for single-family homes in August stood at a 5.3-months’ supply; inventory for townhome-condo properties was also at a 5.3-months’ supply, according to Florida Realtors. Industry analysts note that a 5.5-months’ supply represents a market balanced between buyers and sellers.
“Florida’s housing market is still reviving,” said Florida Realtors Chief Economist Dr. John Tuccillo. “Everything that should be going up is going up, and everything that should be going down is going down. After the six years of turmoil that we had, it’s good to see the trends strongly moving in the right direction. We’re hurting for inventory, but it’s possible that the improving conditions will lure more sellers into the market and mitigate the housing inventory crunch.”
The interest rate for a 30-year fixed-rate mortgage averaged 3.60 percent in August 2012, lower than the 4.27 percent averaged during the same month a year earlier, according to Freddie Mac.
To see the full statewide housing activity report, go to Florida Realtors website and click on the Research page; then look under Latest Housing Data, Statewide Residential Activity and get the August report. Or go to Florida Realtors Media Center and download the August 2012 data report PDF under Market Data.
© 2012 Florida Realtors®
Tuesday, September 18, 2012
Fed economic plan could lower mortgage rates
Fed economic plan could lower mortgage rates
WASHINGTON – Sept. 14, 2012 – In a bold effort to reduce borrowing costs for homebuyers and bolster the recovery, the Federal Reserve says it will buy mortgage-backed securities until job growth picks up significantly.
Thursday’s announcement marks the first time the Fed has committed to an open-ended plan to buy government bonds until the economy improves. Economists say that can have more powerful effects than the Fed’s previous $2.3 trillion in Treasury and mortgage bond purchases.
Investors cheered, pushing stock markets to their highest levels in at least five years.
The Fed agreed to buy $40 billion a month in mortgage-backed securities. It also extended its likely timetable for keeping short-term interests near zero from late 2014 to mid-2015.
“We don’t have tools strong enough to solve” high unemployment, Fed Chairman Ben Bernanke said. “We’re just trying to get the economy moving in the right direction.”
Along with an existing Treasury bond-buying program ending in December, the Fed plans to purchase $85 billion a month in long-term bonds through year’s end. That should lower long-term rates and make loans less costly for consumers and businesses.
The Fed said it will continue buying mortgage bonds and may buy other assets if “the labor market doesn’t improve substantially.” It vowed to keep its easy-money policies going even after the recovery strengthens.
“It’s a bold move,” says economist Michael Gapen of Barclays Capital.
He predicts it will bring down mortgage rates by up to a half-percentage point and add two tenths of a percentage point to economic growth over the next year. Unemployment should fall by another two-tenths of a percentage point, says Mark Zandi, chief economist of Moody’s Analytics.
The Fed slightly cut its 2012 forecast, projecting the economy will grow at a 1.7 percent to 2 percent annual rate. It expects unemployment, now 8.1 percent, to dip to 7.6 percent to 7.9 percent by the end of 2013.
With interest rates low and banks tight-fisted, the benefits of the Fed’s plan may be limited. Almost two-thirds of the 40 economists that USA TODAY surveyed after the announcement said the Fed’s actions would help the economy only a little by January. As many said the impact on the housing market would be as slight.
© Copyright 2012 USA TODAY, a division of Gannett Co. Inc., Paul Davidson
Thursday’s announcement marks the first time the Fed has committed to an open-ended plan to buy government bonds until the economy improves. Economists say that can have more powerful effects than the Fed’s previous $2.3 trillion in Treasury and mortgage bond purchases.
Investors cheered, pushing stock markets to their highest levels in at least five years.
The Fed agreed to buy $40 billion a month in mortgage-backed securities. It also extended its likely timetable for keeping short-term interests near zero from late 2014 to mid-2015.
“We don’t have tools strong enough to solve” high unemployment, Fed Chairman Ben Bernanke said. “We’re just trying to get the economy moving in the right direction.”
Along with an existing Treasury bond-buying program ending in December, the Fed plans to purchase $85 billion a month in long-term bonds through year’s end. That should lower long-term rates and make loans less costly for consumers and businesses.
The Fed said it will continue buying mortgage bonds and may buy other assets if “the labor market doesn’t improve substantially.” It vowed to keep its easy-money policies going even after the recovery strengthens.
“It’s a bold move,” says economist Michael Gapen of Barclays Capital.
He predicts it will bring down mortgage rates by up to a half-percentage point and add two tenths of a percentage point to economic growth over the next year. Unemployment should fall by another two-tenths of a percentage point, says Mark Zandi, chief economist of Moody’s Analytics.
The Fed slightly cut its 2012 forecast, projecting the economy will grow at a 1.7 percent to 2 percent annual rate. It expects unemployment, now 8.1 percent, to dip to 7.6 percent to 7.9 percent by the end of 2013.
With interest rates low and banks tight-fisted, the benefits of the Fed’s plan may be limited. Almost two-thirds of the 40 economists that USA TODAY surveyed after the announcement said the Fed’s actions would help the economy only a little by January. As many said the impact on the housing market would be as slight.
© Copyright 2012 USA TODAY, a division of Gannett Co. Inc., Paul Davidson
Friday, September 14, 2012
Wednesday, September 12, 2012
Coldwell Banker announces the top Agents
Coldwell Banker Residential Real Estate has just announced the top agents as of August 2012 and once again Hughes Shelton Realtors are the number one agents in Hillsborough County Florida.
More good news for Tampa Bay real estate
Home sales have risen 13 percent to 3,000 in Hillsborough, Pinellas, Pasco and Hernando counties since August of last year, according to data from My Florida Regional Multiple Listing Service, as reported by the Tampa Bay Times.
What’s more, homes are selling for more money and they are selling in less time. Conventional sales and short sales of homes at deep discounts each climbed 25 percent in the past year. Conventional homes sold for an average of $170,000, and short sale homes sold for an average of $107,000.
During the past year, sales of foreclosed homes contributed less to the area’s real estate picture, dipping 20 percent to just over 500 homes sold. Agents report that foreclosed homes in good condition are now rare and are selling fast.
Overall, inventory has dropped substantially, falling to just three-months’ supply of homes in Hillsborough County
What’s more, homes are selling for more money and they are selling in less time. Conventional sales and short sales of homes at deep discounts each climbed 25 percent in the past year. Conventional homes sold for an average of $170,000, and short sale homes sold for an average of $107,000.
During the past year, sales of foreclosed homes contributed less to the area’s real estate picture, dipping 20 percent to just over 500 homes sold. Agents report that foreclosed homes in good condition are now rare and are selling fast.
Overall, inventory has dropped substantially, falling to just three-months’ supply of homes in Hillsborough County
Tuesday, September 11, 2012
Number of Improving Housing Markets Grows
Number of Improving Housing Markets Grows
The number of metro areas showing signs of real estate market improvement expand in September, rising from 80 to 99 metro areas, according to the National Association of Home Builders/First American Improving Markets Index.
"This solid growth is an encouraging sign that housing continues on a slow but steady recovery path that is gradually advancing from one local market to the next," says Barry Rutenberg, chairman of the National Association of Home Builders.
The index identifies metro areas that have shown improvement in housing permits, employment, and home prices for at least six consecutive months. This month, the markets added to the list include Tucson, Ariz., Jacksonville, Fla., Springfield, Ill., Greenville, N.C., and Bend, Ore., among others.
"More metros across the country are experiencing a sustained uptick in house prices, employment, and new building activity as rising consumer confidence in local market conditions pushes more people to consider a new-home purchase," says NAHB Chief Economist David Crowe.
Download and view a complete list of the 99 metro areas that made the Improving Market list, visit www.nahb.org/imi (Excel).
Source: National Association of Home Builders
"This solid growth is an encouraging sign that housing continues on a slow but steady recovery path that is gradually advancing from one local market to the next," says Barry Rutenberg, chairman of the National Association of Home Builders.
The index identifies metro areas that have shown improvement in housing permits, employment, and home prices for at least six consecutive months. This month, the markets added to the list include Tucson, Ariz., Jacksonville, Fla., Springfield, Ill., Greenville, N.C., and Bend, Ore., among others.
"More metros across the country are experiencing a sustained uptick in house prices, employment, and new building activity as rising consumer confidence in local market conditions pushes more people to consider a new-home purchase," says NAHB Chief Economist David Crowe.
Download and view a complete list of the 99 metro areas that made the Improving Market list, visit www.nahb.org/imi (Excel).
Source: National Association of Home Builders
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