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U.S. Home Prices Reach Record High for Sixth Straight Month

U.S. home prices reached a new high in May for the sixth straight month, which may raise fears of another housing bubble roughly a decade after a previous one burst.

The index

Case-Shiller Home Prices Index

Community; one-year change

Seattle +13.3%
Portland, Ore. +8.9%
Denver +7.9%
Dallas +7.8%
Detroit +7.6%
Las Vegas +6.9%
Tampa +6.8%
San Diego +6.6%
Boston +6.1%
Charlotte, N.C. +6.1%
Minneapolis +5.7%
Phoenix +5.7%
Los Angeles +5.6%
Atlanta +5.5%
San Francisco +5.4%
Miami +5.3%
New York +4%
Cleveland +3.6%
Washington D.C. +3.6%
Chicago +3.3%

Source: Standard & Poor’s

The Standard & Poor’s CoreLogic national home price index, released Tuesday, increased 5.6 percent in May, the latest data available. It is now 3.2 percent higher than its July 2006 peak.

Some analysts downplay the notion of a new bubble, and the unrelenting price increases may already be cooling sales. Other aspects of the last decade’s housing boom and bust, such as rapid sales increases and surging home building, are not happening now.

“Price increases vary across the country, unlike the earlier period when rising prices were almost universal,” David Blitzer, chairman of the Index Committee at S&P, said.

A separate price index maintained by the National Association of Realtors is also rising steadily, though it remains about 9 percent below its 2006 peak. The S&P CoreLogic index tracks the same houses over time and is generally considered a better gauge of price changes, while the NAR’s measure is affected by the proportion of higher-priced or lower-priced homes on the market.

Tampa and Miami are included in the list of 20 cities. Tampa saw prices rise 6.8 percent during the last 12 months, while Miami saw an increase of 5.3 percent.

The national picture

Much of the price gain measured by the Case-Shiller Index is being driven by Seattle; Portland, Oregon; and San Francisco.

Herald Tribune July 25, 2017

On Trend for Kitchens – Countertop Selections

New Favorites in Countertop Selections

Is it true? Could granite’s 30-year reign be coming to an end? We can’t say for sure. In fact, we think granite remains a solid choice. After all, it’s both durable and attractive — and it’s become increasingly affordable too. But there’s just no denying granite’s seeming decline. As homeowners opt for more modern kitchen designs, they’re also opting for more understated countertop alternatives.

Engineered Quartz:

Perhaps granite’s top competitor, engineered quartz offers the beauty of stone without the maintenance. It’s tougher than granite, and it’s highly resistant to scratching, cracking, staining and heat. Unlike granite, which offers the unique qualities of natural stone, engineered quartz is largely uniform; because it’s engineered, there’s no choice of one-of-a-kind slab. There are, however, a number of colors and designs available — from stark modern whites to options closely resembling marble. And, because engineered quartz is non-porous, it never has to be sealed like natural stone.

Wood:

Increasingly, homeowners seek and appreciate natural wood countertops — particularly easy butcher blocks and those custom-created by quality craftsmen. While wood countertops can add warmth, balance and beauty to any modern home, they also require a fair amount of maintenance. Because wood is susceptible to damage from heat and moisture, it must be sealed about once a month. The best part about wood, though, is that it can be refinished in the event that damage does occur.

Soapstone:

Soapstone is an attractive, natural quarried stone that ranges from light gray to green-black in color. While the material is soft and pliable, it’s also nonporous. Soapstone is also resistant to stains and acidic materials. The downside to soapstone is that it is susceptible to scratches and deep indentations. Light gray soapstone will also weather and darken over time, occasionally developing a patina finish. The material comes in smaller slabs, so seams will be visible in soapstone countertops longer than seven feet.

Concrete:

Concrete countertops came onto the scene in the 1980s — and they’ve evolved a lot since. These days, precast concrete countertops are available in a number of different colors. Generally, they’re flat and smooth, and they can run from 1.5 inches to 10 feet long. While concrete countertops have historically cracked and chipped easily, recent innovations have made them less prone to damage. Concrete is naturally strong and heat-resistant, and slabs can be sealed to prevent staining.

Stainless Steel:

There’s a reason restaurants use stainless steel countertops in their kitchens. It’s heat-, rust- and stain-resistant; it’s easy to clean; and it won’t absorb or harbor even the toughest bacteria. The downside to stainless steel countertops is that they scratch easily — and they show it too. For this reason, it’s best to use a cutting board any time you’re prepping food on a stainless steel countertop. Also, it’s a good idea to choose a brushed stainless finish that will help conceal any marks. At first blush, you may think that stainless feels ultramodern or cold, but a balance of stainless steel and wood can create a warm, timeless and uber-functional kitchen.

Not Sure Which Countertop to Choose?

When you’re remodeling your kitchen, the most important question to ask yourself is this: Are you remodeling for yourself or a potential buyer? If you’re remodeling for yourself, go with what you like best.

Home Advisor July 2016

It’s Not a Housing Bubble: 3 Reasons

WASHINGTON – March 17, 2016 – Home prices are rising three to four times faster than wages, and credit conditions are loosening, say Lawrence Yun, chief economist for the National Association of Realtors^®. Those conditions usually prompt housing analysts to start uttering the words “housing bubble,” but Yun discounts those warnings.

“Even though the credit conditions appear to be easing somewhat, the move is from overly stringent conditions to not-so-overly-stringent conditions,” Yun writes on Forbes.com. “It is a far-fetched view to imply the current mortgage approval process in any way resembles the loosey-goosey, easy subprime mortgage access conditions of a decade ago.”

Reason one: Mortgage credit scores today aren’t anywhere near where they were during the housing bubble. Today, approval scores average about 740 to 750 compared to 710 to 720 during the housing crisis, according to Fannie Mae data.

Reason two: The no-doc requirements for subprime mortgages of yesteryear are nearly gone today.

Yun also says that while home prices are rising above wages, low mortgage rates have been a silver lining.

“For someone making a 20 percent downpayment, the monthly mortgage payment at today’s mortgage rates would take up 15 percent of a person’s gross income,” Yun writes. “During the bubble years, it was reaching 25 percent of income.”

Reason three: Yun says experts can squash bubble fears by just looking at the housing supply. Inventories are at about four to five months today, which is similar to the bubble years.

However, sales aren’t moving at the same pace. Existing-home sales and new-home sales combined were at 8.4 million back then. In 2015, combined home sales were 5.76 million – about one-third lower.

A limited supply of for-sale homes is mostly behind the latest home-price increases, Yun says.

“We are not in a housing market bubble in terms of an inevitable impending home-price crash,” Yun says. “Rather, we are facing an above-normal home-price growth trend, which admittedly is unhealthy on several levels because of the simple economic law of insufficient supply. We need more homebuilding.”

Source: “Are we Entering a New Housing Bubble?” Forbes.com (March 14, 2016)

Florida Realtors® March 17, 2016

Pinellas County Real Estate Overview for January

Pinellas County Real Estate

Pinellas County Real Estate Report — January 2016 — One of the most impressive figures in the table below is found in the median sales price and average sales price categories.

According to the Florida Association of Realtors®, the Median Sales Price from January of 2015 to January of 2016 increased by over 23 percent. The Average Sale Price from January of 2015 to January of 2016 increased by over 18 percent.

Median Sale Price – The median sale price reported for the month (i.e. 50% of sales were above and 50% of sales were below).

Average Sale Price – The average sale price reported for the month (i.e. total sales in dollars divided by the number of sales).

Economists’ note: Median Sale Price is our preferred summary statistic for price activity because, unlike Average Sale Price, Median Sale Price is not sensitive to high sale prices for small numbers of homes that may not be characteristic of the market area.

From the Florida Association of Realtors® – Summary for January 2016 – February 24, 2016

See the Full Report

Summary	January 2016	January 2015	Percent Change Year
Closed Sales	841	782	7.5%
Pending Sales	795	904	-4.5%
Paid in Cash	319	334	-12.2%
New Listings	1,555	1557	2.5%
Median Sale Price	$193,500	$156,500	23.6%
Average Sale Price	$263,728	$222,350	18.6%

Staging Your Home for Great Photos

Staging for great photos – here’s some great tips for getting the perfect look and making that property shine in photos.

Design for the camera, not for the end user.

When putting together a space, we always think of the camera first. Will this angle look right, will it show off the best feature of the house? Will the light hit these items correctly? The good news is you have a camera in your pocket as you read this. When we stage a house for market, we are constantly taking photographs of it and looking at it through the camera lens. It helps us to see errors in symmetry, lighting, cleanliness, etc.

No more wrinkles.

In real life, wrinkly sheets don’t make a lick of difference. The camera, however, hates wrinkles and makes them look 100 times worse than they really are. Our best advice on this one is to use a professional steamer. The hot steam will take those wrinkles right out and makes the sheets, pillow shams and draperies look perfect in the picture.

Light it up.

Light can be your best friend or your worst enemy. If you don’t know how to control it, you are destined to fail. The time of day and weather conditions can make a huge difference on how well your space photographs. If the afternoon sun is blazing into your room throwing harsh shadows all over, the shot is destined to look “blown out” with areas as dark as night and as bright as a nuclear holocaust. To help combat this problem, look for the best time for indirect sunlight outside and inside your space. It is also a great idea to turn on your interior lights and lamps, this will help to even out the lighting in the space.

Fluff the carpet.

So often we see houses photographed with harsh vacuum lines or matted carpet that looks old and tired. The best way to fluff up your tired wall to wall is to use a broom. Running the broom over the top of the carpet in random directions will bring new life to a sagging floor textile.

Look beyond the window.

It’s true enough you are photographing the interiors of your space but the outside of your windows will be seen in the photos. If there are piles of trash covered with blue tarps right outside your window, they are going to come through in the photos. Clean up the areas outside the window and make it visually quiet so it does not draw attention to itself. If the area can’t be cleaned up, consider a frosted film on the window.

Limit the color scheme.

There are neutrals and there are colors. The neutrals are black, white, grey, brown, beige, cream, silver, and sometimes gold. You can put as many different neutrals in a room as you want. They can form a great base for your color. The colors are the rainbow: red, orange, yellow, green, blue and purple. Colors must be used with great restraint. We endeavor to have only one “color story” per room. A color story might be blues or reds or colors of the peacock, or teal and yellow. If you have more than one color story per room, the photographs will start to look chaotic and visually noisy.

Rely on symmetry, repetition, rhythm.

Symmetry, repetition, and rhythm can be found throughout nature and humans find them to be aesthetically pleasing. Symmetry can be found in most animals and insects. Repetition is why we find flowers so pleasing. Rhythm can be found in the ripples of a sand dune. A quick and easy way to make a space more aesthetically pleasing is to use these simple principles of good design.

Look at the problem from a different angle, then design for the best one.

What is the first impression going to be? Design for that view and the rest will fall into place. Figure out where the camera will most likely be and make every decision for the room based on that. Chances are, it will turn out great.

Hire a professional.

Don’t invest the time to decorate and then run through with an iPhone and snap 16 horrible pictures. If you want great photographs, hire a great photographer.

Put down the toilet seat.

No explanation needed.

Get out of the mirror.

Make sure there is no one in the mirror reflecting back with a camera.

Furnish the house, but don’t over decorate the cake.

Empty houses are hard to see. Furniture provides scale, shows use, and adds light to spaces. Without it, the space is just walls, windows, floors, and ceilings. It is important to show how the space is used and how big the space is. Once you have taken care of these items, then stop decorating. There is a point when the decoration is no longer about the house but more so about the decoration. Stop before you get there.

Homeowners Reap Remodeling Benefits

Homeowners Reap Remodeling Benefits Whether Selling or Staying, Say Realtors®

Homeowners preparing to sell often make improvements, both big and small, to their homes that can help yield positive results and garner top dollar from buyers. According to a new report from the National Association of Realtors®, remodeling projects can also bring major benefits to homeowners who choose to remain in their homes.

“Realtors® know that certain home upgrades and remodels can be beneficial to get more buyer eyes on a property, potentially bring in more offers or gain more equity from a home,” said NAR President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, Florida. “But remodeling projects are just as valuable to homeowners who simply want to get more joy out of their dwellings. Regardless of the situation, Realtors® know what remodeling projects bring the biggest bang for the buck and what projects are most likely to improve a homeowner’s impression of their current place.”

According to NAR’s 2015 Remodeling Impact Report, which uncovers the reasons homeowners choose a remodel and the increased happiness certain projects bring once completed, 64 percent have experienced increased enjoyment in their home after completing a remodeling project.

Additionally, 75 percent of respondents said they felt a major sense of accomplishment when thinking of their completed project. Fifty-four percent of respondents felt happy about the changes to their home, and 40 percent felt satisfied. As for their reasons to complete a remodeling project, 38 percent of homeowners said they wanted to upgrade worn-out surfaces, finishes and materials; 17 percent wanted to add features and improve livability; and 13 percent believed it was time for a change.

Realtors® named kitchen upgrades, complete kitchen renovations, bathroom renovations and new wood flooring as the interior projects that most appeal to potential buyers. Similarly, Realtors® also ranked projects based on expected value at resale (without accounting for project price); the projects that ranked the highest in this category were complete kitchen renovations, kitchen upgrades, bathroom renovations and the addition of a bathroom.

When looking at the interior projects that yield the biggest financial results upon resale, Realtors® ranked hardwood flooring refinishes (100 percent of project cost recovered upon resale), insulation upgrades (95 percent recovered), new wood flooring (91 percent recovered), and converting a basement to a living area (69 percent recovered) as projects to consider.

Exterior projects are also important for both sellers and homeowners looking to increase satisfaction with their current home. Realtors® said new roofing, new vinyl windows, new garage doors and new vinyl siding are most appealing to potential buyers and are highly valued upon resale (both considering project price and disregarding project price).

Upon resale, Realtors® said new roofing would recover 105 percent of its project cost, a new garage door would recover 87 percent, new vinyl siding would recover 83 percent, and new vinyl windows would bring back 80 percent of their cost.

As for exterior projects that bring the most happiness for those not necessarily intending to sell, homeowners said new fiber-cement siding, new fiberglass or steel front doors, new roofing, and new garage doors brought the most satisfaction.

The 2015 Remodeling Impact Report, the first of its kind from NAR that examines personal satisfaction from remodeling projects, surveyed Realtors®, consumers who have completed their own remodeling projects, and members of the National Association of the Remodeling Industry.

“Remodeling projects can greatly improve both the value of and satisfaction with one’s home, which are great things no matter the reason for a project,” said Judy Mozen, president of the National Association of the Remodeling Industry. “This report highlights the best projects to consider in either situation and showcases just how much of a difference a good and professional remodel can make in real numbers.”

Salomone said the report not only assists homeowners who are preparing to sell in choosing the best projects to attract buyers, but it also helps those looking to get more personal satisfaction out of their homes.

“Realtors® know that remodeling projects aren’t just done to get more money for a home once it’s time to sell – a home is your sanctuary, the place you raise your family and where you make lifelong memories, which is why the report can also help consumers decide which projects could enhance their current quality of life and happiness,” he said.

The National Association of Realtors®, December 2015

Pinellas County Real Estate Holds Strong for 2015

Pinellas County Real Estate Statistics for September 2015

Pinellas County real estate holds strong for 2015, even as the typically slower months approach.

Average sale price for a single family home was $256,543 in September 2015, up 15.1% from last September.
The average sale price for townhome/condo was $189,862, up 1% from $187,954 a year ago.
The number of closed sales for single family and townhome/condo combined for September 2015 was 1,863, up 13.8% from 1,637 in September 2014, and down just slightly from August 2015 (1,888).

Median sale price for single family was $190,000, a huge 15.2% increase over $165,000 last September. For the townhome/condo segment, median sales price was $120,000, up 9.1% over a year ago. Median days on market was also a bright spot, at 49 for single family (versus 50 last September), and 57 for townhome/condo (versus 63 last September).

Inventory remains low for single family, with a 3.4 month supply as compared to a 4.6 supply in September 2014. Active listings for single family and townhome/condo combined were 6,591, down 8.8% from 7,224 in September 2014. New listings are up 3.1%, at 2,204 versus 2,138 last September.

The Consumer Financial Protection Bureau’s (CFPB) new loan estimate and closing disclosure rules took effect October 3, with little fanfare. Experts are anticipating any issues that may arise presenting themselves in November, December and January.

Representing more than 6,000 members, the PINELLAS REALTOR® ORGANIZATION is one of the Tampa Bay area’s largest professional trade associations.

Pinellas Realtor Organization – November 2015

Home Equity: You May Have More Than You Think

CoreLogic recently released their 2015 2nd Quarter Equity Report which revealed that 759,000 properties had regained equity in the last quarter. That means that 91% of all mortgaged properties (approximately 45.9 million) are now in a positive equity position. Anand Nallathambi, president and CEO of CoreLogic, reported:

“For much of the country, the negative equity epidemic is lifting. The biggest reason for this improvement has been the relentless rise in home prices over the past three years which reflects increasing money flows into housing and a lack of housing stock in many markets.”

Obviously, this is great news for the financial situation of many homeowners.

But, do they realize their equity position has changed?

A recent study by Fannie Mae suggests that many homeowners are unaware that their equity position has changed…in some cases dramatically. For example, their study showed that 23% of Americans still believe their home is in a negative equity position when, in actuality, only 9% of homes are in that position.

The study also revealed that, though 69% of homes had “significant equity” (greater than 20%), only 37% of Americans realize it.

This means that 32% of Americans with a mortgage fail to realize the opportune situation they are in. With a sizeable equity position, many homeowners could easily move into a housing situation that better meets their current needs (moving to a larger home or downsizing).

Fannie Mae spoke out on this issue in their report:

“Homeowners who underestimate their homes’ values not only underestimate their home equity, they also likely underestimate 1) how large a down payment they could make with their home equity, 2) their chances of qualifying for mortgages, and, therefore, 3) their opportunities for selling their current homes and for buying different homes.”

Bottom Line

Every homeowner should be aware of the true equity in their house and also realize the opportunities that go along with it. If you are unsure of the savings you currently have built up in your home, contact a real estate professional to help ascertain that number. You may be surprised.

Keeping Current Matters 10/2015

Pinellas – Clearwater Real Estate Report July 2015

July 2015 Statistics

While the number of closed home sales continues to rise, the market may not be a rosy as it appears. On one hand, sellers have it made, with “rising home prices, demand from home buyers, and less competition making 2015 a stellar year to sell for many U.S. home owners across the country,” According to Daren Blomquist, RealtyTrac’s vice president.(1)

However, “signs are emerging that housing’s momentum may be destined to falter in coming months. Analysts note that some of the key foundations needed to sustain a brisk pace of home buying in the long run appear to be missing. The main problem is the simplest: There just aren’t enough homes available. Robust demand has failed to draw many sellers into the market. And few in the industry foresee a flurry of home listings arriving soon.”(2)

In Pinellas County, all of this holds true.

Inventory was down 3.3% from July 2014, sitting at 6,953 combined for single family and townhome/condo. This represents a 3.7 month supply for single family and a 4.0 month supply for townhome/condo.
In June there were 7,211 combined active listings, or inventory. Absorption rates have been building steadily all year, but are starting to trend downward slightly, at 40.7% for single family and 30.6% for townhome/condo.
The total sold units for single family and townhome/condo combined in July 2015 was 2,123, down slightly from the 2,192 sold in June 2015.

Sales dipped a bit in May 2015, but for July have again surpassed the ten-year-high record set this April, at 2,103. Year-over-year stats for closed single family and townhome/condo combined sales are maintaining at a 24.2% increase for June 2015 over June 2014, as compared to the 26.2% increase year-over-year from June 2014 to June 2015.

Representing more than 6,000 members, the PINELLAS REALTOR® ORGANIZATION is one of the Tampa Bay area’s largest professional trade associations. The organization advances and promotes the real estate profession through professional development programs, government affairs, and political advocacy and maintains a high standard of conduct by real estate professionals through professional standards training and administration.

(1) Source: Realtor Magazine, “3 Reasons Why It’s a Great Time for Sellers,” (July 24, 2015) via “2015 Great Year to Sell,” RealtyTrac (July 22, 2015)

(2) Source: “Can Housing’s Comeback Endure? The Outlook Dimmer,” The Associated Press, Josh Boak, AP economics writer (Washington), via Florida Realtors (July 27, 2015)

FLORIDA TOURISM HITS RECORD HIGH FOR 2015

Florida tourism is on pace to pass the highly anticipated 100-million visitor mark for 2015, with more than 54.1 million visitors coming to the Sunshine State in the first half of 2015.

New quarterly numbers released Wednesday from Visit Florida, the state’s tourism arm, show a 5.8 increase from last year and the highest amount of visitors of any six months in the state’s history.

In just the second quarter of 2015 ending June 30, 25.8 million visitors came to Florida, an increase of 5.5 percent from the same point in 2014.

With the fifth record-breaking year, the higher tourism is also bringing a record average number of direct travel-related jobs.

In a prepared statement from Gov. Rick Scott, Florida’s tourism industry now employs 1,213,500 people – a number up 4.9 percent from the previous year.

Encouraging tourism helps Florida become the “best place in the world for jobs,” Scott said. “We look forward to exceeding our goal of 100 million visitors to Florida this year.”

Visit Florida also estimates more than 2.7 million overseas visitors, 1.2 million Canadians, and 21.9 million domestic visitors traveled to Florida in the second quarter of 2015, a 6.8 percent increase.

Totals for the first half of 2015 show 45.7 million domestic visitors, 5.5 million overseas visitors and 2.9 million Canadians have come to the Sunshine State, an increase of 6.7 percent, 1.7 percent and 1.1 percent respectively. Top U.S. states for Florida tourism are New York (10 percent), Georgia (8 percent), Texas (6 percent) and Illinois (5 percent).

Most international visitors in 2014 came from Canada (4.2 million), followed by the United Kingdom (1.6 million) and Brazil (1.6 million).

Continued growth of tourism, as well as tourism-related jobs, is putting Florida on track for a fifth consecutive record-breaking year, said Visit Florida Board of Directors Chairman John Tomlin. He emphasized the power of tourism as an economic job creator, crediting the vision of Scott, the Legislature and his staff for “world-class strategies and execution.”

As the number of people visiting Florida increases, so does the amount collected in taxes on sales from recreation and related activities. From January through May 2015, the state enjoyed a 9.0 percent increase in tax revenue.

Visit Florida also estimates the average daily room rate (ADR) for the second quarter of 2015 rose 4.7 percent, with occupancy rates for Florida hotels increasing 2.9 percent and the demand for rooms sold grew 4.4 percent compared to the same period last year.

“This continued growth does not happen by accident,” said Visit Florida CEO Will Seccombe, who thanked Scott and the Legislature for their “unparalleled support.”

Tampa Tribune August 19, 2015