Florida a Top State When Comparing Taxes Paid to Services Received

Fla. a top state when comparing taxes paid to services received

TALLAHASSEE, Fla. – March 28, 2017 – If ROI (return on investment) is applied to taxes, a WalletHub study ranks Florida. third in the nation for the value residents get from the state taxes they pay.

For the analysis, WalletHub says it used 23 metrics to compare the quality and efficiency of state-government services across five categories – education, health, safety, economy, and infrastructure and pollution. It then compared the services to the "drastically" different rates at which citizens are taxed in each state.

The complete report on the U.S. tax landscape, the Best & Worst Taxpayer Return on Investment in 2017, is available online.

In the overall rankings, Florida outshines most other states. It ranks third for overall ROI, and third for "total taxes per capita." In education, it's No. 17; for infrastructure and pollution it ranks at No. 21.

In the "overall government services" comparison, Florida ranks at No. 34.

© 2017 Florida Realtors

Homeownership Hits 50 Year Record Low

Homeownership hits 50-year record low

BERKELEY, Calif. – March 27, 2017 – Over the past 10 years, homeownership rates in the U.S. stumbled, wiping out more than three decades of increases. Overall, the national homeownership rate dropped from a peak of 69 percent in 2004 to an average of 63.4 percent in 2016.

Rosen Consulting Group (RCG) estimates that more than $300 billion would have been added to the national economy if the homebuilding industry alone returned to a more normalized level in 2016, representing a 1.8 percent boost to GDP (gross domestic product), according to a new report, Homeownership in Crisis: Where are We Now?, released by Rosen Consulting Group and the Fisher Center for Real Estate & Urban Economics, Haas School of Business, University of California, Berkeley.

"Bolstering homeownership in a safe and sound way is not just about helping households secure financial stability, but may be the single most important factor in returning the United States to a path of robust economic growth," says Ken Rosen, chairman of Rosen Consulting Group and UC Berkeley's Fisher Center for Real Estate & Urban Economics. "This report highlights the current state of homeownership and the many factors that contributed to the plunge in homeownership rates during the past decade."

Compared with pre-recession peaks, homeownership declines were largest among minority households, young adults, one-person households and single-parent households.

National homeownership trends: Key findings

• As of 2016, the African American homeownership rate dropped to 41.5 percent, falling by 7.6 percentage points from the previous peak – the largest decline of any major racial group and 30 percentage points lower than white household homeownership. African American homeownership declined even as the total number of African American households increased by 2.7 million (19.8 percent) since 2005.
• By age, young adults were hit hardest by homeownership declines. The homeownership rate for households aged 25 to 29 years old dropped by 10.9 percentage points to 30.9 percent in 2016.
• The homeownership rate for households aged 30 to 34 years fell by 12.0 percentage points to 45.4 percent compared with the pre-recession peak.
• In 2015, the homeownership rate for single-parent families was 48.2 percent – 31 percentage points below married family homeownership rates. One person households performed only slightly better with a homeownership rate of 52.2 percent, 27 percentage points lower than married families.

Why the plunge in homeownership?

• More than 9.4 million homes were lost in the foreclosure crisis through short sales and deed-in-lieu transactions from 2007 through 2015. Access to easy, yet unsafe, credit in the form of non-traditional mortgage products was a major factor.
• After the crisis, lenders moved in the other direction, severely tightening access to safe and affordable mortgages. Since 2010, lending to applicants with credit scores ranging from 620 to 660 retreated sharply and loans to homebuyers with credit scores below 700 declined to 27 percent of first-lien mortgages in 2014, down from 33 percent in 2010. As of third quarter 2016, the median credit score for conventional mortgages was 760, up from 707 in the fourth quarter of 2006.
• The rise in student debt is another factor. Total student debt nationwide quadrupled since mid-2004 to approximately $1.3 trillion, with both the number of borrowers and the average debt load rising, making it harder for many young households to afford homeownership.
• Following multiple years of rising rents and limited income growth, cost-burdened renter households, defined as those paying more than 30 percent of income toward rent, increased by 3.6 million, which lowered the ability to save for a downpayment.
• The overall pace of household formation decreased sharply following the recession, reducing demand for all types of housing. An estimated 3.4 million additional households would have formed between 2008 and 2015 if household formation had remained on pace with the long-term average.

© 2017 Florida Realtors

Most Millennials Plan to Buy First Home in Next 5 Years

Most millennials plan to buy first home in next 5 years

NEW YORK – March 24, 2017 – More than four in five (80%) millennials in the United States who don't own a home intend to buy in the next five years, according to recent HSBC Group research.

HSBC Group's Beyond the Bricks – an independent consumer research survey of 9,000 people in nine countries worldwide including 1,009 respondents in the U.S. – found that homeownership is a dream deferred but not dead for many millennials around the world who name slow wage growth and housing price inflation as the greatest barriers to purchasing a home.

The report also reveals the need for better financial planning as another significant hurdle for millennials.

According to David Gates, U.S. head of mortgage origination and sales for HSBC: "This study highlights that young people strongly value homeownership, yet there are significant challenges to making the dream a reality for millennials around the world. The perfect storm of stagnating salaries and rising house prices, paired with the need for improved financial planning can make buying a home a deferred reality."

Nearly three-quarters (71%) of millennials are saving more money for a deposit and waiting to earn a higher salary before buying a property, the report finds.

Millennials face significant challenges when it comes to housing affordability. With an expected 1.9% increase in salary growth expected in 2017 and average property prices climbing by 4.8% last year, the dream of owning a home remains a challenge for many.

Of the 71% of millennials who seek to both save and earn more money, 49% feel they are being held back because they cannot afford to buy the type of property that they would like.

More than half (57%) of millennials who bought a home in the last two years ended up spending beyond their initial budget.

The report also finds that many millennials do not have their house in order when it comes to financial planning for a home purchase. Among non-owners intending to buy a home in the next two years, nearly one in three (32%) have no overall budget in mind and a further 54% have only set an approximate budget. As a result, 57% of millennials who bought a home in the last two years ended up overspending their budget.

On the other hand, the millennial generation is willing to consider making big sacrifices to afford a home. Among non-owners intending to buy, 55% would consider spending less on leisure and going out, 41% would consider buying a smaller than ideal place, and 27% would even be prepared to delay having children.

Financial support from parents can make a big difference when saving for a home, and 28% of millennials who bought their own home turned to the "bank of Mom and Dad" as a source of funding.

HSBC research identifies four actions that millennials can take to help make their homeownership dream a reality:

• Plan early and don't underestimate the deposit
• Budget beyond the purchase price to account for extra costs other than the home purchase
• Consider what sacrifices you can make to save more and faster
• Get a full view of your finances and find a home loan that suits your needs

Millennials are defined as those born between 1981 and 1998. The findings are based on a survey of homeowners and non-owners aged 18 or older from a nationally representative online sample in eight countries and a nationally representative face-to-face sample in the UAE. The research was conducted by Kantar TNS in October and November 2016.

© 2017 Florida Realtors®

Florida's Housing Market Continues to See Rising Prices in February

Fla.’s housing market continues to see rising prices in Feb.

ORLANDO, Fla. – March 22, 2017 – Florida's housing market continued to report a tight supply of homes for sale and rising median prices in February, according to the latest housing data released by Florida Realtors®. Sales of single-family homes statewide remained relatively flat last month, totaling 18,033, down only 0.5 percent compared to February 2016.

"Florida's economy is growing, with more jobs being created," said 2017 Florida Realtors President Maria Wells, broker-owner with Lifestyle Realty Group in Stuart. "And a growing economy boosts the state's housing sector as well. However, many local markets are reporting a low inventory of for-sale homes at a time of increasing buyer demand.For sellers, it's a good time to list their homes, as theycontinue to get more of their original asking price at the closing table. In February, sellers of existing single-family homes received 95.8 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.7 percent.

"In these kinds of market conditions, serious home buyers must be prepared to act fast, and work closely with a local Realtor to find the right home for their needs and their budget."

The statewide median sales price for single-family existing homes last month was $225,000, up 12.5 percent from the previous year, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. Thestatewide median price for townhouse-condo properties in February was $167,500, up 11.7 percent over the year-ago figure. February marked the 63rd month in a row that statewide median prices for both sectors rose year-over-year. The median is the midpoint; half the homes sold for more, half for less.

According to the National Association of Realtors (NAR), thenational median sales price for existing single-family homes in January 2016 was$230,400, up 7.3 percent from the previous yearthenational median existing condo price was$217,400.In California, the statewide median sales price for single-family existing homes in January was $489,580; in Massachusetts, it was $330,000; in Maryland, it was $261,868; and in New York, it was $250,000.

Looking at Florida's townhouse-condo market, statewide closed sales totaled 7,949 last month, up 4.1 percent compared to February 2016. Closed sales data reflected fewer short sales and cash-only sales last month: Short sales for townhouse-condo properties declined 39.6 percent while short sales for single-family homes also dropped 39.6 percent. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

"Florida's market for existing single-family homes in February continued to perform in line with what we've seen over the past year and a half," said Florida Realtors®Chief Economist Dr. Brad O'Connor."Due primarily to fewer distressed properties on the market, sales of single-family homes edged down. However, non-distressed sales of single-family homes were up almost 10 percent year-over-year, showing that the traditional market – as opposed to the niche distressed market – is healthy and continues to grow.

"Meanwhile, Florida's condo and townhouse sales are off to very good start in 2017. Coming off a 6.2 percent year-over-year increase in January, condo and townhouse sales rose 4.1 percent year-over-year in February. For perspective, the last time statewide condo and townhouse sales rose on a year-over-year basis for two consecutive months was in August and September of 2015."

For the second consecutive month, inventory remained at a tight 4.2-months' supply in February for single-family homes, and was at a 6.4-months' supply for townhouse-condo properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.17 percent in February 2016, up significantly from the 3.66 percent average recorded during the same month a year earlier.

Realtor.com Names Top 10 Cities for Millennials

SANTA CLARA, Calif. – March 23, 2017 – Realtor.com®, a leading online real estate destination operated by News Corp subsidiary Move, Inc., has announced its top cities for millennials. At the top of the list: Salt Lake City, followed by Miami and Orlando, Fla., as No. 2 and No. 3, respectively.

Rounding out the rest of the top 10, in rank order are Seattle, Houston, Los Angeles, Buffalo, Albany, San Francisco and San Jose, Calif.

"High job growth in markets such as Orlando, Seattle and Miami, and the power of affordability in places like Albany and Buffalo are making these markets magnets for millennials." said Javier Vivas, manager of economic research for realtor.com. "But what really stands out is that all these markets already have large numbers of millennials, which translates into strong populations of millennial homebuyers." 

The average share of the 25-34 year old population in the U.S. is 13 percent, but in these top markets, the average share is 14 percent. Salt Lake City, No. 1 on the list, happens to also have the highest share of milllennials, comprising 15.8 percent of its total population. Seattle is close behind with a millennial population at 15.2 percent, Los Angeles and San Francisco tie for third with 15.0 percent.

Economic growth and relative affordability make these markets really attractive to first-time homebuyers. Salt Lake City has the lowest unemployment rate of all the markets on the list at 2.9 percent, which is well below the national unemployment rate of 4.7 percent. The job market is also a factor in San Francisco and San Jose, with the unemployment rate at 3.7 percent. When it comes to affordability, Buffalo is No. 1 with the most affordable home prices relative to salary, at 22.7 percent. It's followed by Albany where people only use 27.3 percent of their income on a home and Salt Lake City where buyers use 30 percent.

Realtor.com analyzed the 60 largest markets in the U.S. and compared the share of millennial page views in each area to the national average. Markets were ranked based on their comparison to the national average. Page view data included in this analysis covers the period from August 2016 to February 2017.

Realtor.com's top cities for millennials

1. Salt Lake City

The draw: The excitement of an urban city with the relaxed vibes of a mountain town. Large tech companies such as Adobe are attracting the millennial generation to this area by offering innovative workspaces, large salaries and an overall high quality of life.

Millennial hotspot:  Sugar House, located southeast of downtown Salt Lake City, offers hip bars and trendy restaurants.

The stats: Millennials make up 15.8 percent of the population. Homeowners spend 30 percent of their income on their home and the unemployment rate is 2.9 percent

2. Miami

The draw: An international mecca for tourism and entrepreneurship.

Millennial hotspots: Wynwood, located just north of downtown, offers a strong art community.

South Beach is a strong draw for business and fashion oriented millennials looking to make it big in their careers.

The stats: The millennial population makes up 13.1 percent of the population. Affordability is tough, requiring the average buyer to spend 49 percent of their income on a home. Its unemployment rate is 5.1 percent, slightly above the national average.

3. Orlando

The draw: Downtown Orlando is becoming a hot area and offers easy access to public transportation, shopping and dining, as well as a proximity to many jobs.

Millennial hotspots: Thornton Park, located just east of downtown has also become popular among millennials who are looking to live in a unique historic neighborhood with cobbled streets and lined with bungalows.

The stats: Millennials account for 14.6 percent of the total population in Orlando. Homes are affordable here and only require 34 percent of income. The unemployment rate is below the national average at 4.4 percent.

4. Seattle

The draw: With big company names such as Starbucks, Amazon, Filson, K2 and REI, it's not hard to imagine why so many millennials want to live and work in Seattle.

Millennial hotspots: Capitol Hill and Belltown are popular neighborhoods for creative millennials who want access to boutique shopping, craft breweries and unique dining experiences.

The stats: Seattle has the second largest millennial population, at 15.2 percent, of all the towns on the list. It offers affordability of 35.6 percent and an unemployment rate of 4.2 percent.

5. Houston

The draw: A booming job market is drawing many young millennials looking to jump-start their careers. Millennial hotspots: The Heights, Oak Forest, and Timbergrove attract millennials with their close proximity to downtown, boutique shops, trendy restaurants and craft breweries.

The stats: Houston's population is made up of 14.5 percent millennials. While people spend 36.1 percent of their income on homes, the unemployment rate in Houston is slightly higher than the national average at 5.4 percent.

6. Los Angeles

The draw: Companies such as Snap Inc. and Airbnb draw tech driven millennials to what is now being referred to as "Silicon Beach," while actors, comedians and music artists are still drawn to the area for a chance at fame.

Millennial hotspots: Silver Lake is a hotbed for millennials looking for a young and creative community. The stats: Millennials make up 15.0 percent of the population. While the unemployment rate is in line with the national average at 4.7 percent, affordability is difficult in Los Angeles with people spending 64.1 percent of their income on a home.

7. Buffalo

The draw: Money is flowing into the area as a tech scene begins to expand from incubation competitions such as 43 North, which awards $5 million in prizes yearly.

Millennial hotspots: With a revitalized waterfront, downtown Buffalo and North Buffalo are becoming hot real estate for trendy millennials who are looking for easy access to shopping and dining as well as a family-oriented community.

The stats: For those millennials looking to spend more time outdoors, Buffalo has a millennial population of 13.4 and an unemployment rate of 5.6 percent. It is the most affordable market on the list, where people only spend 22.7 percent of their salary on their home.

8. Albany

The draw: Albany is slowly becoming what is referred to as the "Silicon Valley of the East Coast," with companies such as GE putting up headquarters and employing over 7,000 people. The large tech scene popping up is attracting many young millennials who want to be in tech, but don't want to pay for real Silicon Valley housing prices.

Millennial hotspot: Specialty cocktail bars, Biergartens, and craft coffee houses make downtown Albany the place to be for millennials.

The stats: Millennials make up 12.7 percent of Albany's population. It offers both affordable housing at 27.3 percent of income and a low unemployment rate at 4.5 percent.

9. San Francisco

The draw: San Francisco's tech fueled job market is pumping millennials into the area left and right, however, sky-high housing prices are pushing many of the newcomers to the outer neighborhoods and forcing them to rent.

Millennial hotspots: North Beach and the Mission have become popular for the young tech generation that have established themselves and earned a large paycheck, while the Sunset District and Daly City offer more affordable housing options – relative to the rest of the city.

The stats: In San Francisco, millennials make up 15 percent of the total population. While the unemployment rate is really low at 3.7 percent, affordability is a concern with people spending 56.2 percent of their income on a home.

10. San Jose

The draw: Opportunity to work in some of the most innovative companies in the U.S. as well as the infamous Silicon Valley paycheck, are major drivers drawing millennials to the area.

Millennial hotspots: Centrally located downtown San Jose is attracting many millennials because of its public transportation as well as trendy shops and unique dining experiences.

The stats: Millennials make up 14.2 percent of the total population in San Jose. Similar to San Francisco, the unemployment rate is low at 3.7 percent but homes cost 53 percent of income.

Source: Realtor.com

© 2017 Florida Realtors

Top Buyer/Seller Regret? Not Prepping Soon Enough

Top buyer/seller regret? Not prepping soon enough

SEATTLE – March 20, 2017 – The spring home-buying season could be one of the most competitive in recent history as listing inventory remains tight and mortgage rates appears to be going up.

In a survey of 13,000 recent home buyers and sellers, the top regret for both focused on preparation: They didn't start the process soon enough, according to the 2016 Zillow Group Report on Consumer Housing Trends.

U.S. home values across the nation are up 7.2 percent over the past year, and there are three percent fewer homes to choose from than a year ago, according to the January Zillow® Real Estate Market Reports.

"Understanding whether you are in a buyer's or a seller's environment will help you manage your expectations and will give you insight into what you're going to need to bring to the table in order to close the deal," says Jeremy Wacksman with Zillow.

Being prepared: Buyers

• Keep options open. 52 percent of buyers said they also considered renting, and 37 percent of first-time buyers seriously considered continuing to rent. Savvy shoppers should have a Plan B in place – hoping to buy if it works out, perhaps, but willing to sign a lease if they don't make a deal by the time they must move.
• Be realistic about your budget. Set it and stick to it. First-time home buyers are more likely to exceed their budget than repeat buyers (39 percent vs 26 percent). Before meeting with a lender, buyers should study their personal finances and spending preferences, and calculate a monthly payment range they feel comfortable with.
• Get financing squared away early. Meet a few lenders four to six months before planning to buy to move quickly if a dream home comes along: 77 percent getting pre-approved by a lender before finding a home.
• Find an agent with a winning track record. Only 46 percent of buyers got the first home on which they made an offer, demonstrating that competition is now part of the process.
• Communication is key. Make sure your preferred method and frequency of communication matches your agent: 33 percent of buyers preferred phone calls, 21 percent preferred emails and 15 percent preferred texts.

Being prepared: Sellers

• Start early, be strategic. Sellers consider putting their home on the market for five months before they list it, but the top seller regret is that they'd spent more time prepping for the sale. Many cities have a magic window in the spring when homes have a higher likelihood of selling quickly for more money.
• Work with an agent from the start. 90 percent of sellers who sold quickly and for more than list price worked with an agent; 58 percent began working with an agent at the very beginning of their selling journey.
• Pay attention to online curb appeal. Most buyers begin their search online. Sellers who sold their home for more than list price made imagery and home information available online: 48 percent had professional photos taken of the home, 30 percent shot video footage and 21 percent shot drone footage.
• Home improvements can be a worthwhile. Many sellers tackled a home improvement before listing their home
• Don't be afraid to try again. In many markets, nearly half of listing views occur in the first week a home is on the market – 26 percent of owners who sold above list price took their home off the market for a while to adjust the sales price.

© 2017 Florida Realtors

Single Family Housing Starts Hit Highest Level in 10 Years

Single-family housing starts hit highest level in 10 years

WASHINGTON – March 16, 2017 – Nationwide housing starts rose 3 percent in February from an upwardly revised January reading, according to new data from the U.S. Department of Housing and Urban Development (HUD) and the Commerce Department.

Single-family production increased 6.5 percent to 872,000 units – its highest reading in nearly a decade. Meanwhile, the multifamily component fell 3.7 percent to 416,000 units.

"This month's gain in single-family starts is consistent with rising builder confidence in the housing market," says Granger MacDonald, chairman of the National Association of Home Builders (NAHB). "We should see single-family production continue to grow throughout the year, tempered somewhat by supply-side constraints such as access to lots and labor."

"The growth in the single-family arena is very encouraging, but may be partly attributable to unusually warm weather conditions throughout most of the country," said NAHB Chief Economist Robert Dietz. "The modest drop in multifamily starts is in line with our forecast, which calls for this sector to continue to stabilize in 2017."

Regionally in February, combined single- and multifamily housing production rose 35.7 percent in the West. Starts fell by 3.8 percent in the South, 4.6 in the Midwest and 9.8 percent in the Northeast.

Future starts
A drop in multifamily permits pulled overall permit issuance down 6.2 percent in February. Multifamily permits fell 21.6 percent to 381,000 units – but single-family permits rose 3.1 percent to 832,000 units – its highest level since September 2007.

Regionally, overall permits rose 25.4 percent in the Midwest. Permits fell 10 percent in the West, 10.4 percent in the South and 22.3 percent in the Northeast.

© 2017 Florida Realtors

Is an Airbnb Rental Uptick Causing a Listing Shortage?

Is an Airbnb rental uptick causing a listing shortage?

WASHINGTON, D.C. – March 10, 2017 – The American Hotel & Lodging Association (AHLA) released a report that examines the rise of commercial activity taking place on Airbnb nationwide. While the hotel industry sees Airbnb type rentals as competition, the study identified some recent trends.

The study, Hosts with Multiple Units – A Key Driver of Airbnb Growth, finds that Airbnb's business in Miami is moving further away from true home sharing: 89 percent of Airbnb's revenue in Miami comes from whole-unit rentals (ones where the owner isn't present during the time of the rental). The lodging association calls these "illegal hotels."

The study was conducted by CBRE Hotels' Americas Research, which is funded by the American Hotel & Lodging Education Foundation. It reviewed Airbnb operations from October 2014 to September 2016 in 13 of the nation's largest markets: Austin, Boston, Chicago, Los Angeles, Miami, Nashville, New Orleans, New York, Oahu, Portland, San Francisco, Seattle and Washington, D.C.

Study claims

• The markets with the highest share of total revenue derived from multi-unit hosts are Miami (57.9%), Oahu (53.5%) and New Orleans (42.3%).
• 89% of Miami Airbnb revenue comes from entire-home rentals.
• Revenue generated by multi-unit, entire-home hosts in Miami increased by 105% over the time study and now totals more than $110 million.

The hotel industry has taken a strong stand against Airbnb, which competes in many markets for tourist dollars, and it claims that Airbnb's expansion is one reason more affordable homes don't make it into the hands of resident owners. It's also a reason, they claim, that rents continue to go up.

"This report confirms a devastating national trend that is exacerbating the affordable housing crisis in cities across the country," says Peter Cohen, Co-director of the Council of Community Housing Organizations. "Affordable housing advocates from coast to coast agree: Airbnb in particular and the short-term-rental industry in general is facilitating a housing crisis by incentivizing property investors to convert homes and apartments into illegal hotels, thus decreasing the available housing stock and driving rent prices up.

The full report, Hosts with Multiple Units – A Key Driver of Airbnb Growth, is available for download on the AHLA website.

© 2017 Florida Realtors

Insurance Claim Satisfaction Rises - But Not so Much in Florida

Insurance claim satisfaction rises – but not so much in Fla.

NEW YORK – March 10, 2017 – Overall customer satisfaction among homeowners filing property insurance claims has reached a new all-time high, according to the J.D. Power 2017 U.S. Property Claims Satisfaction Study. The surge corresponds with a 10-year high in catastrophic events, which usually heralds a decline in satisfaction scores.

Though customer satisfaction improvements are industry-wide, they vary considerably by region and claim type, and a handful of states in the Central and Eastern regions – most notably Texas, Florida and Massachusetts, which had more volatile weather – posted flat to declining customer satisfaction scores.

The West region posted the largest improvement nationwide amid a relatively calm year for claim activity.

Outside of those specific examples, however, weather-related claims drove the highest overall improvement in customer satisfaction, with high wind- and hail-related claims leading the way. Conversely, water-related claims, which tend to take longer to resolve and disrupt the daily lives of homeowners, are linked to lower overall satisfaction scores.

The study measures satisfaction with the property claims experience. Satisfaction is calculated on a 1,000-point scale. It surveys customers who filed a damage claim and examines five factors (listed in order of importance):

• settlement
• first notice of loss
• estimation process
• service interaction
• repair process

The overall Customer Satisfaction Index increased 13 points year over year to a score of 859 in 2017 – a new all-time high for the study. The largest single driver of the improvement is the settlement factor, which encompasses the fairness of the settlement amount, followed by estimation process and service interaction.

"Despite the overall improvement, problem areas are evident, most notably in water-related and other complex claims that take a long time to settle and that cause significant lifestyle disruption," says Greg Hoeg, vice president of U.S. insurance operations at J.D. Power. "Insurers that manage to get the settlement process and customer interaction equation right in these types of disruptive and often catastrophic scenarios are those that raise the bar for the industry."

© 2017 Florida Realtors

2016 Home Flipping Hits 10 Year High

2016 home flipping hits 10-year high

IRVINE, Calif. – March 9, 2017 – Home flipping last year was 3.1 percent higher than it was in 2015, according to ATTOM Data Solutions' 2016 Year-End U.S. Home Flipping Report. The report finds that 193,009 single family homes and condos were flipped – resold in an arms-length transfer for the second time within a 12-month period – in 2016.

In 2006 with a recession on the horizon, 276,067 single family homes and condos were flipped. In 2005, 338,207 single family homes and condos were flipped – 8.2 percent of all sales. The study included 950 U.S. counties that cover 80 percent of the population.

In addition, the number of buyers flipping homes has increased. In 2016, 126,256 entities – a number that includes both individuals and institutions – flipped homes in 2016. That's less than a 1 percent increase of 2015 but the highest number since 2007.

Meanwhile, the share of flipped homes purchased by the flipper with financing increased to an eight-year high of 31.5 percent in 2016. The median age of homes flipped increased to 37 years – a new high going back to 2000, as far back as data is available – and the median square footage of flips decreased to 1,422 – a new record low going back to 2000.

"The combination of more home flips and a greater share of financing for flip purchases resulted in a 19 percent jump in the estimated dollar volume of financing for home flip purchases, up to $12.2 billion for the flips completed in 2016 – a nine-year high," says Daren Blomquist, senior vice president at ATTOM Data Solutions.

Blomquist says that more home flippers are now willing to "move to secondary and tertiary housing markets and neighborhoods with older, smaller properties that are available at a deeper discount," Blomquist says, a change that also led to "a higher share of the flipped homes sold to FHA buyers," a share that hit a four-year high of 19.6 percent in 2016."

2016 home flipping profits: New record highHomes flipped in 2016 sold for a median price of $189,900, a gross flipping profit of $62,624 above the median purchase price of $127,276, with a gross flipping return on investment (ROI) of 49.2 percent. Both the gross flipping dollar amount and ROI were the highest going back to 2000, the earliest year flipping data is available.

While no Florida metro areas hit ATTOM's top 10 for ROI, a one Florida city is noted for having a population of at least 1 million and a flipping ROI over 75 percent: Jacksonville (75.8 percent.

Home flipping rates

Tennessee, California and Florida metro areas logged the higher home flipping rates. Among 117 metropolitan statistical areas with at least 250 home flips in 2016, those with the highest home flipping rate as a percentage of all home sales were Memphis, Tennessee (11.7 percent); Clarksville, Tennessee (10.1 percent); Visalia-Porterville, California (10.1 percent); Tampa-St. Petersburg, Florida (9.9 percent); and Deltona-Daytona Beach-Ormond Beach, Florida (9.9 percent).

Along with Memphis and Tampa-St. Petersburg, other metro areas with a population of at least 1 million and a 2016 home flipping rate of at least 7 percent were Las Vegas (9.2 percent); Miami (8.8 percent); Orlando (8.3 percent); Phoenix (8.0 percent); New Orleans (7.9 percent); Jacksonville, Florida (7.7 percent); Virginia Beach (7.6 percent); Baltimore (7.4 percent); Birmingham (7.4 percent); St. Louis (7.1 percent); and Nashville (7.1 percent).

© 2017 Florida Realtors