Clearwater Beach Buyers Archives

National Housing Market News

These are heady days for American home sellers, with a recent report showing that housing prices in March recorded their largest annual increase in nearly three years.

But the gains are inflicting more financial pain on home buyers, though the price run-up has fallen well short of the annual double-digit increases during the mid-2000s housing bubble.

Home prices across the USA were up 5.8 percent annually in March, up from 5.7 percent the prior month, according to the S&P CoreLogic Case-Shiller national index. Driving the increase were a longstanding shortage of both new and existing homes combined with steady job and income growth that’s prompting more Americans to buy houses for the first time or trade up.
The pace of price gains has accelerated in 2017 after year-over-year increases held fairly steady at a healthy 5 percent or so from 2014 to 2016.

“Home buyer demand is sky high, inventory levels are near rock bottom and home prices keep rising,” says Svenda Gudell, chief economist of real estate research firm Zillow.

S&P Case-Shiller’s 10- and 20-city indices, which track the largest metro areas, increased 5.2 percent and 5.9 percent from a year ago, respectively, unchanged from February.

On a monthly basis, the national index rose 0.3 percent seasonally adjusted while the 10- and 20-city indices each increased 0.9 percent. Seventeen of the 20 cities reported monthly increases after seasonal adjustment.

Seattle again led the nation with a 12.3 percent year-over-year gain in home prices, followed by Portland at 9.2 percent and Dallas at 8.6 percent. Half the areas in the 20-city index rose by more than 6 percent. New York posted the smallest gain at 4.1 percent, which was still double the rate of inflation.

Nationally, there’s a 4.2-month inventory of existing homes for sale, down from 4.6 months a year ago and a normal level of about six months, according to the National Association of Realtors.

“People are staying in their homes longer rather than selling and trading up,” says David Blitzer, managing director of S&P Dow Jones’ index committee. “If mortgage rates, currently near 4 percent, rise further, this could further deter more people from selling and keep pressure on inventories and prices.”

He adds “there’s no way to tell” when rising prices and mortgage rates will cool off the market.

Gudell says price increases should moderate as builders add more supply.

The national index is now 1.3 percent above its 2006 peak while the 10-city and 20-city indices are still 7.6 percent and 5.4 percent below their 2006 highs, respectively.

Florida Realtors May 31, 2017

Clearwater Real Estate Report March 2017

March Real Estate Report

As we wrap up the first quarter of 2017, we are seeing some powerful numbers springing into the next season. Dollar Volume for Townhomes/Condos was $199.3 million in March 2017, an astonishing increase of 35.6% from $147.0 million in March 2016. Dollar Volume for Single Family Homes increased 21.5% year-over-year, with $408.9 million in 2017 versus $336.6 million in March 2016.

Median Time to Contract for Townhomes and Condos was down 30.0% year-over-year, going from 40 days in March 2016 to 28 days in March 2017. Median Time to Contract for Single Family Homes was 30 days in March 2017, down 3.2% from last March. Median Time to Sale for Single Family Homes was 71 days this March, down 4.1% from 74 days last March. Median Sale Price for Single Family Homes was up 15.0% from last year, at $230,000 for March 2017 versus $200,000 for March 2016. Average Sale Price for Single Family Homes grew an astounding 16.0%, at $299,356 in March 2017 versus $258,152 in March 2016.

The Townhome/Condo market segment’s sales prices are still holding strong. Median Time to Sale for Townhomes and Condos was down 9.1%, at 70 days in March 2017 and 77 days in March 2016. Median Sale Price for Townhomes/Condos was $139,000 for March 2017, up 4.5% from $133,000 in March 2016.

Year-over-year, Closed Sales for the Single Family segment were up 4.8%, and Closed Sales for the Townhome/Condo segment grew an impressive 26.3%. New Listings for Single Family for March were 1,607, up 4.8% from last March, at 1,533. New Listings for Townhome/Condo for March 2017 were at 1,063, up 5.6% from 1,007 in March 2016.

The strong seller’s market grew even stronger in March, with Months Supply of Inventory down 6.9% year-over-year for Single Family Homes, with a 2.7 Month Supply this March, as compared to a 2.9 Month Supply in March 2016. Months Supply of Inventory for Townhome/Condo fell an astounding 15.0%, with 3.4 months in March 2017 and 4.0 months in March 2016.

Pinellas Realtor Organization, April 21, 2017

Clearwater Beach Real Estate Report May 2016

Clearwater Beach Real Estate – Working with a Realtor® in a seller’s market like the one we’re currently seeing in Pinellas County is vital. Only a Realtor® can see what can’t be uncovered in a simple online search, understands the local market and can help you win in a competitive environment.

The number of Closed Sales for Single Family and Townhome/Condo combined for May 2016 was 2,107, up 3.9% from 2,028 in May 2015. Year-over-year, closed sales for the Single Family segment was way up at 9.4%, and Closed Sales for the Townhome/Condo segment was down at -4.3%.

Median Time to Contract for Single Family was down 20% year-over-year, going from 28 days in May 2016 to 35 days in May 2015.
Median Time to Sale for Single Family was just 74 days in May 2016, down from 79 days in May 2015 (down 6.3%).
For Townhome/Condo Median Time to Sale was 83 days this May, versus 87 days in May 2015, a -4.6% change year-over-year.

Median Sale Price for Single Family was $200,000 this May, versus $185,000 last May, a sizable increase of 8.1%. Median Sale Price for the Townhome/Condo segment was also up from last May at 6.3%, at $138,250 for May 2016 versus $130,000 for May 2015.

Median Percent of Original List Price Received for Single Family was 96.4% in May 2016, up 0.9% from 95.5% in May 2015. Townhome/Condo was 94.6% in May 2016, up 0.9% from 93.8% in May 2015.

New Listings for Single Family for May 2016 were 1,460, up 2.7% from last May, when they were 1,422.
New Listings for Townhome/Condo for May 2016 were 859, up 2.9% from 835 in May 2015.

Months Supply of Inventory for Single Family continues to reflect the lack of homes listed for sale, down 15% year-over-year, with a 3.4 month supply this May, as compared to a 4.0-month supply in May 2015. Months Supply of Inventory for Townhome/Condo was down 8.7% year-over-year, with 4.2-month in May 2016 compared to 4.6 months in May 2015. Active listings for May 2016 Single Family and Townhome/Condo combined were 6,991, down 5.7% from 7,417 in May 2015.

Pinellas Realtor® Organization, June 2016

Clearwater Beach Real Estate Report for March

Clearwater Beach Real Estate
Pinellas County Real Estate Statistics for March 2016

Homes got to contract quicker, closed faster, and sold for more money year-over-year for March of 2016.

The number of closed sales for Single Family and Townhome/Condo combined for March 2016 was 2,069, up 1.9% from 2,030 in March 2015. Year-over-year, the Single Family segment was up big at 18.7% and the Townhome/Condo segment was down 2.2%.

For Single Family, Median Time to Contract was a blistering 31 days in March 2016, compared to 44 days in March 2015 (down 29.5%). Median Time to Sale for Single Family was just 73 days in March 2016, down from 87 days in March 2015 (down 16.1%). This reporting and feedback from members indicates the TRID policies implemented October 1, 2015 have not slowed the closing process as many had feared.

Median Sale Price for Single Family was $200,000 this March, versus $175,000 last March, a wide increase of 14.3%.

Median Sale Price for the Townhome/Condo segment was also up from last March at 10.2%, at $132,000 for March 2016 versus $120,000 for March 2015.

Last month Florida Realtors® added the Median Percent of Original List Price Received stat. For Single Family, it was 95.9% in March 2016, up 1.8% from 94.2% in March 2015. Townhome/Condo was 94.5% in March 2016, up .07% from 93.8% in March 2015.

New Single Family listings for March 2016 were 1,533, down a bit at 0.5% from last March, when they were 1,540.
New Townhome/Condo listings for March 2016 were 1,007, up 5.4% from 955 in March 2015.
Months Supply of Inventory for Single Family was way down at 19.0% from last March, with a 3.4 month supply this March, as compared to a 4.2 month supply in March 2015.
Months Supply of Inventory for Townhome/Condo was down 11.8% year-over-year, with 4.5 months in March 2016 compared to 5.1 months in March 2015.

Active listings for March 2016 Single Family and Townhome/Condo combined were 7,125, down
7.9% from 7,734 in March 2015.

Pinellas Realtor® Organization April 2016

Pinellas County Real Estate Report for December 2015

The year came to a strong close for Pinellas County Real Estate, with closed sales up 4.5% for December 2015 over December 2014, and up 24.7% for the year compared to 2014 (22,952 units in 2015 and 20,007 units in 2014).

The sold dollar volume was up a whopping 21.7% year over year, from $4.1 billion in 2014, to $5 billion in 2015. Average sale price for a single family home was $247,860 in December 2015, up 5.0% from last December ($236,078).

The average sale price for townhome/condo was $191,346, up 7.7% from $177,632 a year ago.
The number of closed sales for single family and townhome/condo combined for December 2015 was 1,955, up 4.5% from 1,870 in December 2014.

New single family listings for December 2015 were 1,131, down 1.5% from December 2014, at 1,148. Median sales price for single family was $186,450 this December, versus $169,000 last December, an increase of 10.3%.

Inventory Remains Low as Median Prices Continue to Rise

The Median sale price for the townhome/condo segment was up 9.2% for December 2015 ($131,000) over December 2014 ($120,000). December 2015 saw only 44 median days on market for single family, down 15.4% from December 2014, when the count was 52. For townhome/condo, the median days on the market were also low, at 49 in December 2015, down 29.0% from 69 days in December 2014.

Total month supply of inventory is down 21.1% from last December for single family, with a 3.3 month supply this December as compared to a 4.2 month supply in December 2014.
Active listings for December 2015 single family and townhome/condo combined were 6,575, down 9.8% from 7,287 in December 2014.
Both stats continue to show the low inventory we’ve seen throughout 2015.

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

Pinellas Realtors® January 2016

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

Southwest Florida Buyers Paying Cash

Home buyers in Southwest Florida are still paying with cash at one of the fastest rates in the nation.

Of the 10 metro areas with the highest share of cash purchases in the first quarter, more than half were in Florida, according to real estate analyst Zillow.

Southwest Florida Buyers Paying Cash
“In Florida, cash is king,” Zillow said. ” At the end of the first quarter, seven of the top 10 metros with the highest share of home purchases made in cash were in Florida, up from six at the end of 2014.”

All 10 of the U.S. metro areas with the highest share of cash buyers were east of the Mississippi River, while cash buyers were less common in the western U.S.

“Homes in many eastern markets are generally less expensive than in their western counterparts, which can be conducive to more cash purchases,” Zillow said. “Cash purchases are also more likely to be made by investors and institutional buyers looking to buy many less-expensive homes all at once to convert into rental housing and/or flip as the market improves.”

In addition, the analyst noted, Florida’s judicial foreclosure process can be slow, extending the period when investors are buying discounted homes from lenders as they clear foreclosure.

Florida posted the second-highest share of cash sales in June, at 45.8 percent, behind only New York’s 47 percent, CoreLogic said.

The U.S. rate was 31.3 percent, down from 34 percent over the year.

“The cash sales share peaked in January 2011, when cash transactions made up 46.5 percent of total home sales nationally,” CoreLogic said. “Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25 percent. If the cash sales share continues to fall at the same rate it did in June 2015, the share should hit 25 percent by mid-2017.”

Jim Quinn, president of the Port Charlotte-North Port-Punta Gorda Association of Realtors, said cash sales have “consistently” accounted for less than 50 percent of activity this year, with distressed properties representing a smaller segment of sales.

“I would say both of these trends are indicative that more of the buyers are purchasing for personal use as opposed to investment,” he said.

No-financing sales accounted for 43 percent of home deals throughout Florida in August, while the U.S. average was 24.5 percent.

Herald Tribune 10/5/2015

Pinellas County Real Estate Statistics for August 2015

After several months of record sales and a blistering seller’s market, statistics in many areas have cooled significantly.

Average sale price for a single family home was $234,647 in August 2015, down 2.8% from last August.
The average sale price for townhome/condo was $187,683, down 1% from $189,528 a year ago.
The number of cash sales is the lowest since January, at 833 for single family and townhome/condo combined. Median sales price for single family was $181,399, a 6.7% increase over last August.
For the townhome/condo segment, median sales price was $135,500, up 13% over a year ago.
Median days on market was also a bright spot, at 47 for single family (down 13% from last August), and 65 for townhome/condo (down 11% from last August).
Inventory is even lower than last month, dropping from 3.9 months to 3.6 months supply.

August 2015 active listings for single family and town home/condo combined were 6,742, the lowest since January 2013, when the count was 6,169. New listings are the lowest they have been since December 2014, at 2,239 versus 1,887 last December.

The lack of inventory continues to be a huge part of the Pinellas County real estate story. The total sold units for single family and townhome/condo combined in August 2015 was 1,888, down significantly from the 2,123 sold in July 2015. In fact, this is the lowest number of sold units since February.

Year-over-year closed sale stats for single family and townhome/condo combined were 12.4% higher this August than a year ago, but almost 50% lower when compared with the 24.2% increase for July 2015 over July 2014.

With the Consumer Financial Protection Bureau’s (CFPB) new loan estimate and closing disclosure rules taking effect October 3, we will be watching closely to see how it impacts the market, particularly the number of closed sales.