Posts Tagged ‘Florida Realtors’
Inventory of homes for sale shrinks in South Florida
The number of homes and condominiums for sale across South Florida has steadily declined over the past two years, an encouraging sign for the region’s battered housing market. Still, industry observers worry about a sizable “shadow inventory” of foreclosed homes that could complicate any real estate recovery. Broward County had 19,869 properties on the market in July, down 35 percent from July 2008, according to a multiple listing service report compiled by the Keyes Co. Palm Beach County’s inventory of homes and condos slid 31 percent to 23,947 during the same period. The supply of new homes being built in the two counties also has decreased sharply in the past two years, said Brad Hunter of the Metrostudy research firm in Palm Beach Gardens. In 2005, sellers rushed to list their homes, hoping to fetch record prices during the housing boom. But the frenzy led to a collapse and prices plummeted. Thousands of foreclosures and short sales have clogged the market ever since, giving buyers plenty of choices and little reason to pay top dollar. “You won’t get price appreciation until you get the inventory in balance,” said Mike Pappas, president of Keyes. “We’re making great strides.” Declines in homes for sale already have helped stabilize prices recently. The median price in Broward rose 7 percent during April, May and June to $209,800 from a year ago, the Florida Realtors said Wednesday. Palm Beach County’s median increased at the beginning of the year but dipped 2 percent in the second quarter to $235,500. Pappas said his firm is handling fewer transactions involving foreclosed homes, and he thinks that’s an indication the foreclosure market has peaked. But some analysts disagree, pointing to a recent surge in homes repossessed by lenders that is pushing inventory levels higher in recent months. Banks are on pace to take back nearly 50,000 properties in Palm Beach, Broward and Miami-Dade counties this year, according to CondoVultures.com, a real estate consulting firm. Many lenders are careful to hold off listing those properties for sale all at once to prevent widespread price declines. Sean Snaith, an economist at the University of Central Florida, expects more foreclosures to result from homeowners losing their jobs. And he said the sagging labor market likely will discourage potential homebuyers. “You have to have a healthy labor market as a foundation for a healthy housing market,” Snaith said. Another concern is the expiration of the federal homebuyer tax credits. Buyers who signed contracts by April 30 and close by the end of September are eligible for the $8,000 and $6,500 tax rebates. But people who put homes under contract after April 30 don’t qualify. While pending sales still are robust, demand for homes is expected to wane in the second half of the year. Fewer sales would keep the supply of homes elevated and ultimately hurt pricing, said Chris Lafakis, an economist covering Florida for Moody’s Economy.com in West Chester, Pa. “Our forecast is that ... demand won’t be strong enough to work off the excess inventory fast enough to stave off future price declines,” Lafakis said. “But by this time next year, the worst of the declines will be over.” Copyright © 2010 Sun Sentinel, Fort Lauderdale, Fla., Paul Owers. Distributed by McClatchy-Tribune Information Services.
FSU real estate program No. 2 in world
The amount of scholarly research conducted by university faculty members and subsequently published in peer-reviewed journals is widely used to compare academic quality between institutions. And according to one such ranking, the real estate program in the Florida State University College of Business (FSU) is among the very best in the world. An article published in the Journal of Real Estate Finance and Economics – an academic journal for scholarly papers on real estate finance – places FSU’s real estate program at No. 2 in the world based on the number of research published in three core academic real-estate journals from 1973 to 2008. That represents a jump from the No. 26 spot that the program held in a previous ranking. Only the University of Connecticut ranked ahead of Florida State. The University of Florida and the University of California-Berkeley held the No. 3 and 4 spots. “The caliber of research in the real estate program is of the highest quality,” said Caryn L. Beck-Dudley, dean of the College of Business. “These rankings reflect an immense effort from the internationally acclaimed faculty and a dedication by private donors to enhance our program.” This year, U.S. News & World Report ranked the undergraduate portion of the program No. 9 among public institutions in the United States, and No. 12 among both public and private institutions. © 2010 Florida Realtors®
Florida’s existing home, condo sales up in 2Q 2010
Sales of existing single-family homes in Florida rose 21 percent in second quarter 2010 compared to the same period a year earlier, according to the latest housing statistics from Florida Realtors®. A total of 51,564 existing homes sold statewide in 2Q 2010; during the same period the year before, a total of 42,604 existing homes sold. It marks the eighth consecutive quarter that Florida has seen higher existing year-to-year home sales, according to the state association. Statewide sales of existing condominiums in the second quarter rose 45 percent compared to the same time the previous year. This marks the seventh consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels. Statewide sales activity in 2Q 2010 also increased over 1Q 2010’s sales figure in both the existing home and existing condo markets, Florida Realtors’ records show. For 2Q 2010, statewide sales of existing homes rose 32.7 percent over the 1Q 2010 figure; statewide existing condo sales in 2Q 2010 increased 24.2 percent over the 1Q 2010 level. Looking forward, the University of Florida’s Bergstrom Center for Real Estate Studies’ latest quarterly survey of real estate trends reported that job growth and the BP oil spill were cited as top concerns for the future outlook of the state’s real estate industry. The survey polls market research economists, industry executives, real estate scholars and other experts. The center’s director, Timothy Becker, noted in the report that the oil spill has created “a cloud of uncertainty that is affecting all markets across the state. Our respondents indicate that the effect of the oil spill is being felt across Florida despite the fact that oil is only showing up on some beaches in the Panhandle.” The survey reported the outlook for investment in industrial properties continues to brighten and is becoming increasingly positive. Seventeen of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in 2Q 2010 compared to the same three-month period a year earlier; 18 of the MSAs showed gains in condo sales. The statewide existing-home median sales price was $141,300 in 2Q 2010; a year earlier, it was $143,000 for a decrease of 1 percent. The 2Q 2010 statewide existing-home median sales price was 5.6 percent higher than the statewide existing-home median sales price of $133,800 in 1Q 2010. 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, 20,986 units sold statewide for the quarter compared to 14,430 in 2Q 2009 for a 45 percent increase. The statewide existing-condo median sales price was $98,900 for the three-month period; in 2Q 2009, it was $110,300 for a decrease of 10 percent. The 2Q 2010 statewide existing-condo median sales price was 3.2 percent higher than the 1Q 2010 statewide existing-condo median sales price of $95,800. 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 4.91 percent in 2Q 2010; one year earlier, it averaged 5.03 percent.
BP panels prepare for claims switch
BP plans to turn over the processing of personal claims on Aug. 23, when the responsibility will fall to federal independent administrator Ken Feinberg, a company spokeswoman told an oil spill task force on Monday. Cities, counties and the state, however, will continue to work with the oil company to settle millions in claims for protective measures taken and clean-up efforts underway following the biggest oil release in the nation’s history. Mary Shafer-Maliki, retired BP vice president and company deputy incident commander for Florida, told the Oil Spill Recovery Task Force that the company currently has no plans to outsource the government claims, at least for now. “Nothing changes ‘til it changes,” said Shafer, underscoring the evolving nature of the disaster, cleanup and reimbursement efforts. State officials are concerned that BP may shut down the claims process before all damage has been properly assessed. Setting aside an escrow account for government expenses, a pool of cash similar to the $20 billion set aside for private claims, would go a long way toward easing fears of local communities that stepped up quickly to respond. “It gives everybody in the state peace of mind that we are trying to get it out of (BP’s) hands,” said Rep. Jimmy Patronis, R-Panama City. Appointed by Gov. Charlie Crist, the task force is looking at ways to speed up the claims process for local governments that spent money on boom and other items, some of which in hindsight weren’t needed. Realtor compensation continues to be debated, and Florida Realtors Vice President of Public Policy John Sebree is in Washington today to meet with Feinberg. The House Deepwater Horizon Response and Recovery Working Group continues to meet – with discussion scheduled throughout this week – and eventually will make its own slate of recommendations after hearing from affected parties in Tallahassee, Panama City and Pensacola. Estimates collected for that group show the state has spent $75 million on cleanup and recovery efforts. Feinberg is slated to visit the Panhandle Tuesday to meet with local officials as he prepares to take over the private claims process now being handled by BP. The oil company has paid more than $300 million in claims to more than 40,000 claimants so far. Feinberg, who will oversee a $20 billion escrow fund for businesses and others who may have lost money, will be at the University of West Florida on Tuesday to discuss how the fund will work with potential claimants. But so far, local governments won’t have a similar fund, and will continue to deal directly with BP. Maliki said the speed with which local communities responded to the spill took the company by surprise – the response from other states was much slower – and she assured local officials that they wouldn’t be punished for their prudence. “It’s not our intention to have counties left holding the bag on this,” Maliki said. “We intend to make them whole.” Going forward, however, Maliki said the company may be less willing to approve local expenditures that company officials think goes over and above the response need. “I want them to stop spending money on things they may no longer need,” Maliki said. Source: News Service of Florida, Michael Peltier
Big Changes to Condo Laws
A massive condominium bill addressing everything from fire sprinkler retrofits to incentives for moving excess condo inventory is among the real estate-related legislation taking effect today. “Legislators introduced more than 50 bills this session dealing with some aspect of condominiums and condominium associations,” says John Sebree, vice president of public policy for the Florida Realtors®. “At the end of the day, there was one – SB 1196 by Sen. Mike Fasano (R-New Port Richey). We worked hard to make sure this 103-page bill contained at least two of the many changes sought by Realtors: incentives for buyers of multiple condo units and repealing the requirement that individual owners carry hazard insurance.” The “bulk buyer” provision seeks to stimulate condo sales by enabling investors to purchase condo units in bulk (seven-plus units) without incurring the legal and financial liabilities of the original developer. The hazard insurance provision repeals a 2008 law requiring unit owners to provide proof of insurance every year. If a unit owner failed to provide a certificate of insurance, the association was allowed to purchase insurance on the owner’s behalf and assess the unit owner for the cost of the insurance. SB 1196 also specifies that: • Florida law no longer requires owners to purchase individual unit owner insurance coverage, though it could still be required by lenders or through the Declaration of Condominium; • Associations of condos over 75 feet high aren’t required to retrofit sprinkler systems; • Lenders must pay more of past-due assessments on foreclosed properties; • Associations may deny owners or occupants the use of common areas and recreational amenities when the owner is more than 90 days delinquent in paying financial obligations due to the association; and • Associations may divert tenant rents to pay for delinquent assessments owed by unit owners. Other laws taking effect today that impact real estate transactions or real estate practitioners provide that: • Documentary stamp taxes on short sales are based on the purchase price, not on the amount of the outstanding mortgage balance. HB 109 by Rep. Evan Jenne (D-Fort Lauderdale) codifies into law a similar ruling in 2008 by the Florida Department of Revenue. • Real estate and appraiser instructors and real estate school permit holders may serve on the Florida Real Estate Commission and the Florida Real Estate Appraisal Board under HB 713 by Rep. Ritch Workman (R-Melbourne). • Home inspectors, mold assessors and mold remediators must be licensed by the state effective July 1, 2010. All applicants are required to complete a 120-hour course. But the Department of Business and Professional Regulation (DBPR) lacked authority to approve the course until July 1. Consequently, the DBPR says it won’t enforce the licensing requirements until July 1, 2011. Visit the department website for details. On a related note, HB 663 by Rep. Gary Aubuchon (R-Coral Springs) allows these inspectors, as well as appraisers and real estate brokers and sales associates, to take distance learning courses to satisfy pre-license and post-license requirements. A grandfather clause allows some inspectors to get a license without taking the course, providing they’ve conducted at least 120 previous inspections over the past three years. • More housing choices for individuals with disabilities. SB 1166 by Sen. Thad Altman (R-Melbourne) removes, among other things, a requirement that community residential homes for disabled persons be located 1,000 feet from each other within planned residential communities. © 2010 Florida Realtors®
