Pending Home Sales Leap 5.5% in February

WASHINGTON (March 29, 2017) — Pending home sales rebounded sharply in February to their highest level in nearly a year and second-highest level in over a decade, according to the National Association of Realtors®. All major regions saw a notable hike in contract activity last month.

The Pending Home Sales Index,* www.nar.realtor/topics/pending-home-sales, a forward-looking indicator based on contract signings, jumped 5.5 percent to 112.3 in February from 106.4 in January. Last month’s index reading is 2.6 percent above a year ago, is the highest since last April (113.6) and the second highest since May 2006 (112.5).

https://www.nar.realtor/news-releases/2017/03/pending-home-sales-leap-55-in-february  

Easter Weekend Open House Saturday 10-1pm…..Egg-Ceptional Value, under $100 per SQ FT

The good ole days……. so they thought

Like any frontier town, Cape Coral’s first businesses included a grocery, a bank, a newspaper and, well, like any Florida frontier town, a realty—aptly named Wonderland Realty, as most early buyers were wondering what they had gotten themselves into. They seemed to be abandoned in the middle of a strip-mining operation. In one direction, nothing but miles of white sand and raw canal banks; in the other, glittering water. They were marooned in “Wonderland.”  more

The Top 3 Hottest Real Estate Markets

Trulia recently published its list of the 10 hottest real estate markets to watch in 2017, and-no surprise-several coastal markets made the list. Trulia based its ranking of the 100 largest metro areas across the country on five criteria: a high search interest, a decreasing rate of vacancy, high affordability, a high rate of job growth, and a high population of people happy with the outcome of the presidential election.

The “hottest” markets vary depending on who you talk to-Zillow’s ranking of the hottest markets of the year looked very different. But if you’re looking for coastal real estate in an affordable city that has few people moving out of it, this list of the hottest coastal markets of 2017 might offer some suggestions. If you’re looking to capitalize on the recovering housing market and purchase your dream coastal escape, consider these hot markets:

1. JACKSONVILLE, FLORIDA

Number one overall and number one on the coastal list, Jacksonville has a high rate of job growth and high interest from out-of-towners looking to move there. Best of all, it’s more affordable than other, similar markets in the state.

2. CAPE CORAL-FORT MYERS, FLORIDA

Coming in at number two both overall and for coastal metro areas, the Cape Coral-Fort Myers area on Florida’s Gulf Coast has the fourth-highest rate of job growth in the country and a falling vacancy rate as people flock to its sunny shores.

3. DELTONA-DAYTONA BEACH-ORMOND BEACH, FLORIDA

Number three for coastal areas and number three overall on Trulia’s list, this area on Florida’s Atlantic side has a rate of job growth to match the Cape Coral-Fort Myers area and a great ratio of people looking to move there vs. people looking to move away-not to mention its long, sunny days and high temperatures year-round.

4. TAMPA-ST. PETERSBURG-CLEARWATER, FLORIDA

The Tampa-St. Petersburg-Clearwater metro area is on the Tampa Bay, on Florida’s Gulf side. It came in at five overall but is number four for coastal areas, with great job growth and affordability.

5. CHARLESTON-NORTH CHARLESTON, SOUTH CAROLINA

Charleston has been in the spotlight as a tourist hotspot so much lately that it’s not surprising that it’s also a great place to move. Ranked number seven overall and number five for coastal areas, this Lowcountry port city has a huge number of people looking to move there (while few are looking to move away), good affordability, and decent job growth-and an amazing culinary scene.

The next five coastal cities share the previous five’s high interest, good affordability, and job growth. Read on for the next best coastal areas to live:

6. NORTH PORT-SARASOTA-BRADENTON, FLORIDA

7. WEST PALM BEACH-BOCA RATON-DELRAY BEACH, FLORIDA

8. FORT LAUDERDALE-POMPANO BEACH-DEERFIELD BEACH, FLORIDA

9. NEW ORLEANS-METAIRIE, LOUISIANA

10. SAN DIEGO-CARLSBAD, CALIFORNIA

This article was originally published on CoastalLiving.com

Daniel’s Land Project

Changes in county land use rules that could bring another 2,000 homes to sites near Daniels Parkway will go before county commissioners in the coming weeks.

Neighbors of one are battling against the change, while the other faces little opposition.

A county panel that makes recommendations to county commissioners on changes in the Lee Plan, the county’s basic land planning document, has endorsed the development of 1,315 new homes on a site at Daniels and State Road 82 that’s currently a part of the protected Density Reduction/Groundwater Resource area.

The Local Planning Agency gave a negative recommendation to a county proposal that would rezone an area at Palomino and Apaloosa lanes off Daniels to allow an additional 693 housing units.


Read More:
New Daniel’s Complex

 

 

Look For Us In This Saturday’s News-Press!

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This Saturday’s Issue of The News-Press features TechVenture Real Estate and largest unit located in the luxurious Marina South at Cape Harbour!
click here for details!

Housing Starts Up In Fort Myers/Naples Area

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Builders started construction on 818 houses in the Naples/Fort Myers housing market in the first quarter of 2014, up 21 percent from a year earlier, according to a report by Metrostudy, a national provider of housing data.

“Finished, vacant home supply continues to be virtually non-existent,” said David Cobb, Metrostudy’s Regional Director in the Naples Market. “Lee County has only a 0.7 month’s supply, while Collier remains below equilibrium as well at 1.7 months of supply. As in the previous quarter, this is a reflection that almost every home under construction has been sold.”

In Lee County, there were 381 lot deliveries in the first quarter, up 29 percent from a year earlier.

The county has 6,902 vacant developed lots, down 5 percent from a year earlier, according to the report.

In addition to the developed lots, there are plans for 48,012 future lots. Many of these lots lie in the northern and eastern sections of the county, where development has been slow to recover.

Collier County housing starts rose 36 percent in the first quarter to 1,624. The annual starts rate has risen for 19 consecutive quarters, from a low of 399 in early 2009, the report states.

“Builders report that the labor market remains tight, which in some cases is limiting the supply of new homes,” said Cobb. “The supply of vacant, developed lots declined 9 percent year over year to 4,496.”

Lee County Real Estate Enters the Moderation Era

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Both foreclosures and new-home permits were little changed in February in Lee County as the real estate economy settled into something approaching normal after the wild swings of the past decade.

Contractors in the county pulled 213 single-family home permits in the month, up only slightly from 209 in January, the county’s municipalities reported Monday.

Meanwhile, lenders in the county filed 223 mortgage foreclosure lawsuits, about the same as the 216 in January,, according to statistics released Monday by the Southwest Florida Real Estate Investors Association.

There’s little chance foreclosures will rebound to the levels they reached six years ago when investors and home buyers were abandoning their mortgages, said Jeff Tumbarello, director of the association and owner/broker of North Fort Myers-based Steelbridge Realty.

At present, he said, “Over 60 percent of the home sales are cash. At some point there’s just not enough leverage to do it.”

Bob Knight, vice president and co-owner of Cape Coral-based Paul Homes, said the month’s steady numbers showed there was relatively strong demand three months ago when those home buyers were signing the deals that led to February’s permits.

Now, he said, further growth will depend in part on getting enough qualified tradesmen back in the market to support the “nice normal pace of 400” homes per month that the county sees in a healthy housing market.

That hasn’t happened yet, Knight said, because the plumbers and electricians who were working during the boom by and large have either gone on to new occupations or left the area entirely.

Now the construction jobs here are back but some of those workers are reluctant to get back into the business – still wary of another crash.

Even so, Knight said, the industry is starting to ramp up as demand grows: Some developers are building “on spec” (without a specific buyer committed. “Quite a few are rolling out right now and they’re being absorbed.”

Tumbarello said that normal market forces are starting to reassert themselves after years when foreclosures and a huge inventory of unsold homes created atypical conditions.

“Right now you’re looking at a rational market that’s driven by supply and demand, buyers and sellers,” he said.

Another wild wave of construction likely won’t happen now, Tumbarello said, because in most areas the price of existing homes still isn’t as high as the cost of replacing a typical home with new construction.

Average Home Upsized Post-Recession

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The average new-home size has increased more than 300 square feet since 2009, growing from 2,362 square feet in 2009 to 2,679 square feet in 2013, according to recently released Census Bureau data.

With that added square footage, new homes are adding more bedrooms, bathrooms, and amenities than they had in 2009.

Forty-eight percent of homes built in 2013 had four bedrooms compared to 34 percent with that number in 2009.

Thirty-five percent of homes in 2013 had three or more full baths compared to 23 percent in 2010.

Also, homes today are also accommodating more garage space. Twenty-two percent of homes built in 2013 had garage space to fit three cars or more compared to 16 percent in 2010.

The amenities that builders say they are most likely to include in new homes are a walk-in closet in the master bedroom, low-e windows, a laundry room, and a great room, according to the National Association of Home Builders. Amenities favored by many builders are granite countertops, double sinks, and a central island in kitchens, as well as nine-foot or higher ceilings, a front porch, exterior lighting, and a patio.

Bigger homes are also meaning higher prices. The average sales price rose from $248,000 in 2009 to $318,000 in 2013.

At the bottom of the list of features that builders will include in new homes in 2014, according to NAHB: laminate kitchen countertops, an outdoor kitchen, an outdoor fireplace, a sunroom, a two-story foyer, and a whirlpool in the master bathroom.

5 Housing Trends Winter 2014

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If you plan to buy a house this winter, we have good news for you. Buyers will face less competition and will likely find a greater number of homes available for sale.

Now the bad news: Mortgage rates will keep climbing in 2014. They won’t necessarily spike overnight, but you may run out of time to grab the best mortgage rate if you wait too long. The size of your loan also may have to be adjusted after new rules and new loan limits go into effect this year.

Not sure this is the right time for you to buy a home? Maybe renting is a better option for you, but depending on where you live, expect rents to climb, as well.

Here are five housing trends you can expect to see this winter.

 

Mortgages Get More Expensive

It’s time to kiss extra-low mortgage rates goodbye.

Several factors will put upward pressure on rates in the next few months, including the Federal Reserve’s recent decision to scale back on its bond-purchasing stimulus program.

Higher mortgage fees on Fannie Mae and Freddie Mac loans also will make mortgages more expensive in 2014, as they will result in higher rates for borrowers, says Brian Koss, executive vice president for Mortgage Network in Danvers, Mass.

The fee hike could affect many borrowers because Fannie and Freddie own or guarantee about two-thirds of new mortgage loans.

With the higher fees, even borrowers with credit scores above 740 would pay more for mortgages, regardless of the size of their down payments. In addition, Fannie and Freddie have plans to raise the fees they charge lenders, which will translate into higher mortgage rates for consumers.

Mel Watt, the incoming director for the Federal Housing Finance Agency, which oversees Fannie and Freddie, says he will delay the implementation of higher fees, but has not offered details on when they could go into effect.

“It doesn’t make sense to add additional barriers now that the market is healing,” says Lawrence Yun, chief economist at the National Association of Realtors. Still, he says buyers should act quickly if they are ready to make a commitment now.

 

Buyers Face Less Competition

The housing market will march at a slower pace this winter. That’s good news for potential buyers who struggled to ink a deal during the fall.

Home sales have taken a dip after more than two years of year-over-year increases. A housing report by Re/Max found that home sales dropped 15.9 percent in November, compared with the previous month, and 7.8 percent compared with a year ago. The report is based on Multiple Listing Service data in 52 metro areas.

Home prices won’t follow the same trend as home sales, Yun says.

“But there will be less of a bidding frenzy than before,” he says. And don’t dare call this a buyer’s market yet. “It’s slightly tilted towards favoring the seller over the buyer.”

Still, buying a home should be a bit easier this year as the inventory of homes for sale increases.

“We are going to see more inventory coming online,” says Errol Samuelson, president of Realtor.com. “Homebuilders are calling for 1.1 (million) to 1.2 million housing starts next year, which is much better than a couple of years ago. And as home prices appreciate, people who were underwater will feel more comfortable putting their homes on the market.”

Loans Shrink

The Federal Housing Administration has reduced the maximum loan amount on FHA loans in 650 counties across the country. The new limits went into effect Jan. 1.

In high-cost areas the loan limit was reduced from $729,750 to $625,500. You may think that’s not such a big deal, but it affects the purchasing power of many buyers with low down payments in cities like New York and San Francisco.

The FHA also drastically reduced the loan limits in some counties. Limits in Salt Lake County, Utah, for example, dropped from $729,750 to $300,150.

Fannie Mae and Freddie Mac also are considering reducing their loan limits from $417,000 to $400,000 in most markets, but have not made a final decision.

These reductions could hurt the housing market as buyers who want to buy outside the loan limits would face stricter underwriting requirements, says Matt Hackett, operations manager for Equity Now, a mortgage bank in New York City.

“In general, the reduction in explicit and implicit government-backed loan amounts pushes buyers on the margin into ‘non-agency’ loans, which tend to have more stringent qualification standards, reducing the overall pool of buyers which can qualify for a loan,” he says.

New Mortgage Rules

A series of new mortgage rules goes into effect in January. Most of the rules were created to protect consumers from lender abuses and to shield the mortgage market from the irresponsible lending standards seen during the last housing boom.

You may have heard that the new rules will make it harder for consumers to qualify for mortgages, will hinder mortgage lending and hurt the housing market. But in reality, most borrowers won’t be affected by the new rules when applying for a mortgage.

One controversial part of the new Qualified Mortgage rule, or QM, says a loan to a borrower with debt-to-income ratio of more than 43 percent will lack certain legal protections for lenders. Debt-to-income ratio is the percentage of monthly income that goes toward debt obligations.

Loans will be exempt from the 43 percent DTI cap for seven years, as long as the loans meet FHA, Fannie or Freddie Mac guidelines.

“Generally speaking, (the underwriting requirements) will stay about the same for most people,” says Michael Becker, a mortgage banker for WCS Funding in Baltimore.

Another part of the rule, which puts a cap on maximum points and fees that borrowers can be charged, could hurt borrowers seeking smaller loans, he adds.

Rents Get Less Affordable
As homeownership gets more expensive in 2014, many Americans may choose to rent instead of buy. That could put more pressure on already unaffordable rents.

Although rent growth has somewhat stabilized after a steady rise in 2011, rents are still increasing at a faster pace than overall inflation, according to a recent study by the Joint Center for Housing Studies of Harvard University. One in four renting households spend more than half of their income on rent and about half spend more than 30 percent of their income, according to the study.

Demand for rentals continues to grow, especially for single-family homes, says Wally Charnoff, founder and chief executive officer of RentRange LLC, a rental market data company.

“We are seeing a shift where people seem more comfortable renting single-family homes in suburban neighborhoods instead of apartments,” he says.

Rents aren’t increasing everywhere in the nation, he says. But they are more likely to rise in areas with strong job growth, shows the Harvard study.