Monthly Flagler County Waterfront Sales Reports & Florida Realtors® News
By Florida Realtors
NAR: Existing Home Sales Rise 2.5% in May
/While up from April, sales slipped 1% from a year ago, NAR's chief economist says buyers are responding to lower mortgage rates and their greater purchasing power.
WASHINGTON – Existing-home sales rebounded in May, recording an increase in sales for the first time in two months, according to the National Association of Realtors® (NAR). Each of the four major U.S. regions saw a growth in sales, with the Northeast experiencing the biggest surge last month.
Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – jumped 2.5% from April to a seasonally adjusted annual rate of 5.34 million in May. Total sales, however, are down 1.1% from a year ago (5.40 million in May 2018).
Lawrence Yun, NAR’s chief economist, said the 2.5% jump shows that consumers are eager to take advantage of the favorable conditions. “The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding.”
The median existing-home price for all housing types in May was $277,700, up 4.8% from May 2018 ($265,100). May’s price increase marks the 87th straight month of year-over-year gains.
Total housing inventory at the end of May increased to 1.92 million, up from 1.83 million existing homes available for sale in April and a 2.7% increase from 1.87 million a year ago. Unsold inventory is at a 4.3-month supply at the current sales pace, up from both the 4.2-month supply in April and from 4.2 months in May 2018.
Though inventory is up, the months’ supply numbers remain near historic lows, which has a direct effect on price, according to Yun. “Solid demand along with inadequate inventory of affordable homes have pushed the median home price to a new record high,” he said.
Properties remained on the market for an average of 26 days in May, up from 24 days in April and equal to the 26 days in May of 2018. Fifty-three percent of homes sold in May were on the market for less than a month.
Given that housing and properties have been selling so quickly, Yun continues his call for new construction. “More new homes need to be built,” he said. “Otherwise, we risk worsening the housing shortage, and an increasingly number of middle-class families will be unable to achieve homeownership.”
Realtor.com’s Market Hotness Index, measuring time-on-the-market data and listing views per property, revealed that the hottest metro areas in May were Rochester, N.Y.; Fort Wayne, Ind.; Lafayette-West Lafayette, Ind.; Boston-Cambridge-Newton, Mass.; and Midland, Texas.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 4.07% in May, down from 4.14% in April. The average commitment rate across all of 2018 was 4.54%.
“The month of May ushered in the home sales upswing that we had been expecting,” said NAR President John Smaby. “Sales are strengthening in all regions while we see price appreciation for recent buyers.”
First-time buyers were responsible for 32% of sales in May, unchanged from the 32% the month prior and up from the 31% recorded in May 2018.
All-cash sales accounted for 19% of transactions in May, down from April and a year ago (20% and 21%, respectively). Individual investors, who account for many cash sales, purchased 13% of homes in May, down from 16% in April and from 14% a year ago.
Distressed sales – foreclosures and short sales – represented 2% of sales in May, down from 3% in April and from 3% in May 2018. Less than 1% of May 2019 sales were short sales.
Single-family and condo/co-op sales
Single-family home sales sat at a seasonally adjusted annual rate of 4.75 million in May, up from 4.63 million in April and down 0.8% from 4.79 million a year ago. The median existing single-family home price was $280,200 in April, up 4.6% from May 2018.
Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 590,000 units in May, up 1.7% from the prior month and down 3.3% from a year ago. The median existing condo price was $257,100 in May, which is up 5.4% from a year ago.
Regional breakdown
May existing-home sale numbers in the Northeast increased 4.7% to an annual rate of 670,000, about equal to a year ago. The median price in the Northeast was $304,100, up 6.6% from May 2018.
In the Midwest, existing-home sales jumped 3.4% to an annual rate of 1.22 million, which is 3.9% below May 2018 levels. The median price in the Midwest was $220,500, an increase of 5.6% from a year ago.
Existing-home sales in the South grew 1.8% to an annual rate of 2.32 million in May, up 1.3% from a year ago. The median price in the South was $241,400, up 3.6% from a year ago.
Existing-home sales in the West grew 1.8% to an annual rate of 1.13 million in May, 3.4% below a year ago. The median price in the West was $409,100, up 4.1% from May 2018.
© 2019 Florida Realtors®
Florida Housing Market Report: Sales & Median Prices Up in May
/By Florida Realtors
May was “the highest single-family home sales’ monthly total for any single month in … 10 years," says Brad O'Connor, Florida Realtors chief economist.
ORLANDO, Fla – Florida’s housing market reported increased sales, higher median prices, more pending sales and gains in inventory (active listings) in May compared to a year ago, according to the latest housing data released by Florida Realtors®. Sales of single-family homes statewide totaled 30,742 last month, up 9.6% over May 2018.
FLORIDA HOUSING MARKET UPDATE: MAY 2019
May turned out to be one of the strongest months we’ve seen in a long time for single-family homes in the Sunshine State. We're talking a 9.6 percent increase in sales from May 2018 and our highest monthly total for *any* single month over at least the past 10 years.
“Low interest rates continue to fuel buyer demand in Florida’s housing market,” said 2019 Florida Realtors President Eric Sain, a Realtor and district sales manager with Illustrated Properties in Palm Beach. “In May, new pending sales for existing single-family homes were up 5% year-over-year, while pending sales for existing condo-townhouse properties rose slightly (0.5%). Inventory levels have steadily improved, which offers more choices for homebuyers. Statewide, single-family inventory (active listings) last month rose 4% over May 2018, while condo-townhouse inventory increased 4.8%.
“For expert advice and peace of mind, buyers and sellers should consult a local Realtor to learn more about area market conditions.”
In May, statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year for the 89th consecutive month. The statewide median sales price for single-family existing homes was $266,000, up 4.3% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $195,000, up 3.7% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in April 2019 was $269,300, up 3.7% from the previous year; the national median existing condo price was $251,000. In California, the statewide median sales price for single-family existing homes in April was $602,920; in Massachusetts, it was $394,000; in Maryland, it was $295,000; and in New York, it was $271,000.
Looking at Florida’s condo-townhouse market in May, statewide closed sales totaled 12,217, up 1.6% compared to a year ago. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
“May turned out to be our highest single-family home sales’ monthly total for any single month over at least the past 10 years,” said Florida Realtors Chief Economist Dr. Brad O’Connor. “What’s more, this growth was widespread, with sales increasing in 21 of the state’s 22 metropolitan areas.
“This resurgence in single-family home sales is largely being driven by a single factor, which is that mortgage interest rates have been declining sharply since late last year. It’s worth noting, for instance, that all-cash single-family home sales were actually only up 1.5% in May, whereas transactions involving financing were up over 12%.”
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.07% in May 2019, down from the 4.59% averaged during the same month a year earlier.
© 2019 Florida Realtors
Survey: More Homeowners Think It’s a Good Time to Sell
/By Florida Realtors
If current owners were waiting for rising prices to moderate, it’s time to move. NAR’s latest survey finds 46% believe it’s a good time to sell.
WASHINGTON – The latest consumer findings from a National Association of Realtors® (NAR) survey reveal that many more Americans believe that now is a good time to sell a home.
The second quarter of 2019 saw a jump in optimism in selling – 46% strongly held that belief, up from 37% in the first quarter.
NAR’s chief economist Lawrence Yun says that home prices have increased only moderately and are a contributing factor for the reason a majority feel that now is a good time to sell. “With home price appreciation slowing, home sellers understand that the days of large price gains from holding an extra year are over,” he says.
An increased number of Americans also think it’s a good time to buy a home, and of those respondents, 38% strongly believe that notion, and 27% said they moderately believe it. Thirty-five percent disagreed, however, saying it’s not a good time to make a home purchase, which is unchanged from 2019’s first quarter.
NAR’s second quarter Housing Opportunities and Market Experience (HOME) survey also looked at consumer attitudes regarding the nation’s economy, and 55% said that the economy is improving; up from 53% in the previous quarter. Second quarter optimism was greatest among those who earn $100,000 or more and those who reside in rural areas. Fifty-three percent of Gen Xers said they believe the economy is improving, which is also up from 50% last quarter.
Yun said Gen Xers might have more financial pressures compared to other age groups.
“Many in the Generation X population find themselves needing to purchase multi-generational homes,” he says. “Also, they may be feeling financial stress from caring for aging parents and children of all ages. Nonetheless, they have an optimistic outlook about the future.”
To that point, 63% of Gen Xers believe home prices have increased within their communities in the last 12 months, a slight jump from the first quarter’s 61%.
Respondents were also asked to share their thoughts on future home prices in their neighborhoods, and 43% percent believe prices will remain the same in their communities over the next six months, a figure which is consistent with the previous quarter; 49% expect to see a price increase.
Among those surveyed who do not currently own a home, 27% said they believe it would be very difficult to qualify for a mortgage due to their financial state; 30% said it would be somewhat difficult.
Yun said that mortgage affordability was promising over the second quarter, and he predicts this trend will continue. “Lower mortgage rates, along with job and wage growth, will lead to an increase in sales and thereby contribute positively to economic growth in the upcoming quarters.”
© 2019 Florida Realtors®
Lenders Must Accept Private Flood Insurance Policies After July 1
/WASHINGTON – June 18, 2019 – The threat to home closings during a National Flood Insurance Program (NFIP) shutdown may be muted or nonexistent should Congress fail to extend the program in the future. After July 1, a federal law forces mortgage lenders to accept private coverage if it satisfies criteria outlined in the Biggert-Waters Flood Insurance Reform Act of 2012.
In February, five federal regulatory agencies – the FDIC, Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, National Credit Union Administration and Farm Credit Administration – issued a joint final rule to implement provisions of the Act, which outlines the new private flood insurance mandate and the steps insurance companies and mortgage lenders must follow.
The rule, which takes effect July 1, 2019:
Implements the Biggert-Waters Act requirement that regulated lending institutions accept private flood insurance policies that satisfy criteria specified in the Act
Allows institutions to rely on an insurer's written assurances in a private flood insurance policy stating the criteria are met
Clarifies that institutions may, under certain conditions, accept private flood insurance policies that do not meet the Biggert-Waters Act criteria
Allows institutions to accept certain flood coverage plans provided by mutual aid societies, subject to agency approval
Private flood insurance could be offered as a stand-alone policy or as an endorsement attached to a full property insurance policy. Lenders won't have to verify that a flood policy or endorsement is acceptable, providing it includes the following endorsement: "This policy meets the definition of private flood insurance contained in 42 U.S.C. 4012a(b)(7) and the corresponding regulation."
However, the law also allows a lender to do its own due diligence if it prefers not to rely on the statement.
A full copy of the 90-page order is posted on the U.S. Department of the Treasury's Office of the Comptroller of the Currency website.
© 2019 Florida Realtors®
ATTOM: Dollar value of flips hits 12-year high in 1Q
/IRVINE, Calif. – June 6, 2019 – ATTOM Data Solutions' Q1 2019 U.S. Home Flipping Report, finds that 49,059 U.S. single family homes and condos were flipped in the first quarter of 2019 – down 2% from the previous quarter and down 8% from a year ago. By total number of flips, it's at a three-year low.
"With interest rates dropping and home price increases starting to ease, investors may be getting out while the getting is good, before the market softens further," says Todd Teta, chief product officer at ATTOM Data Solutions. "While the home flipping rate is increasing, gross profits and ROI are starting to weaken, and the number of investors that are flipping is down 11% from last year. Therefore, if investors are seeing profit margins drop, they may be acting now and selling before price increases drop even more."
Flips made up 7.2% of all home sales during the quarter, up from 5.9% in the previous quarter and up from 6.7% year-to-year. It's the highest home flipping rate since Q1 2010.
Homes flipped in Q1 2019 sold at an average gross profit of $60,000, down from an average gross flipping profit of $62,000 in the previous quarter and down $68,000 in Q1 2018. It's the lowest average gross flipping profit since Q1 2016.
The average gross flipping profit of $60,000 in Q1 2019 translated into an average 38.7% return on investment compared to the original acquisition price, down from a 42.5% average gross flipping ROI in Q4 2018 and down from an average gross flipping ROI of 48.6% in Q1 2018 to the lowest level since Q3 2011 – a nearly eight-year low.
Overall, Florida metros and zip codes fell somewhere in the middle of ATTOM's numbers, with only two of note: Eight U.S. zip codes have a flipping rate higher than 30%, and ATTOM found that zip code 33147 in Miami-Dade County had a flipping rate of 32.7%.
In addition, Naples was cited as the U.S. city where it takes the longest time to flip a home – 235 days.
© 2019 Florida Realtors
Fla.’s housing market: median prices, inventory up in 1Q
/Fla.’s housing market: median prices, inventory up in 1Q
ORLANDO, Fla. – May 14, 2019 – Florida's housing market reported higher median prices and rising inventory during the first quarter of 2019, according to the latest housing data released by Florida Realtors®. Rising prices continue to put pressure on many homebuyers despite gains in the inventory of for-sale homes: Closed sales of single-family homes statewide totaled 59,505 in 1Q 2019, down 1.2 percent from the 1Q 2018 level.
"Continuing a trend that we've been seeing for quite a while, median sales prices for both existing single-family homes and for condo-townhouse properties rose in Florida during the first three months of 2019," says 2019 Florida Realtors President Eric Sain, "The state's population continues to increase, our jobs outlook is strong and the economy is growing. In fact, Florida continues to be ranked as the second-best state in the U.S. to do business, according to the 2019 survey of CEOs from Chief Executive magazine."
The statewide median sales price for single-family existing homes in 1Q 2019 was $253,000, up 2 percent from the same time a year ago, according to data from Florida Realtors Research department in partnership with local Realtor boards/associations. The statewide median price for condo-townhouse properties during the quarter was $185,575, up 3.1 percent over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Looking at Florida's condo-townhouse market, statewide closed sales totaled 25,060 during 1Q 2019, down 7.3 percent compared to 1Q 2018. Closed sales typically occur 30 to 90 days after sales contracts are written.
"There was a little hiccup in sales in both December and January due to a temporary rise in mortgage rates, but rates have since fallen to just above 4 percent again, which helped to spur sales in February and March," said Florida Realtors Chief Economist Dr. Brad O'Connor. "This effect will likely continue into the second quarter as folks continue to realize this might be their last chance to upgrade, downsize or buy their first home while rates are near historical lows.
"Price growth, in the meantime, will continue to be less pronounced in 2019 than in recent years, as inventory levels across multiple price tiers continue to trend upward."
In 1Q 2019, the median time to a contract (the midpoint of the number of days it took for a property to receive a sales contract during that time) was 51 days for single-family homes and 53 days for condo-townhouse properties.
Inventory was at a 4.2-months' supply in the first quarter for single-family homes and at a 6.3-months' supply for condo-townhouse properties, according to Florida Realtors.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.37 percent for 1Q 2019, up from the 4.27 percent average recorded during the same quarter a year earlier.
To see the full statewide housing activity reports, go to Florida Realtors Research & Statistics section on floridarealtors.org. Realtors also have access to local market stats (password protected) on Florida Realtors' website.
© 2019 Florida Realtors®
Fed agencies propose private flood insurance fix
/WASHINGTON – Jan. 31, 2019 – The National Flood Insurance Program (NFIP) is in trouble. Thanks in part to a multitude of national disasters, the program has paid out far more money than it's taken in by way of premiums but hopes of a federal fix through legislation has been delayed so far. Instead, Congress has authorized a series of short-term delays rather than tackling a broader reform package.
A move by the Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency late last week could be the first step in attacking the problem from a different direction, though.
The rule proposal would make private flood insurance more available in flood zones, but it's not official yet – it still needs three other federal regulators, including the Federal Reserve, to sign off on it. It also doesn't tackle all the important issues for homeowners and buyers.
"It appears that regulators are attempting to adopt, by rule, a portion of what was contained in an earlier bill (Ross-Murphy)," says Trey Goldman, Florida Realtors® legislative counsel in the Office of Public Policy. "Under this proposal, banks must recognize and accept private flood coverage. But the bill's 'continuous coverage' language is just as important to homeowners, and the proposed regulations really don't address that. Without continuous coverage, policyholders who leave the NFIP and later come back could be subject to a full risk rate instead of their previous subsidized rate."
Under the FDIC/Comptroller proposal, lenders would have to accept private flood insurance policies if they offer coverage at least as comprehensive as NFIP. Lenders would also have an option to accept private flood insurance policies that don't offer as much coverage as NFIP, which the insurance industry and others want.
Still, any increase in private policy acceptance by lenders offers a ray of hope for homeowners and buyers, in part because a private policy often costs less.
"This ruling has the potential to open up the private insurance market," Michael Barry, a spokesman at the industry-funded Insurance Information Institute told The Wall Street Journal.
Federal law doesn't generally recognize private flood policies. Owners who leave NFIP and return – perhaps because their new cheaper coverage suddenly becomes more expensive later – can lose their grandfathered status under "continuous coverage" if they return to NFIP. If that happens, they often find themselves stuck with two bad choices: Stick with their current private policy that now has a higher premium or return to NFIP and also pay a higher premium because their coverage is no longer subsidized.
Another problem: Some lenders will accept private flood insurance coverage but some do not. For the latter, a homebuyer only has two choices – take out NFIP coverage or find another lender.
Ideally, Congress will address the "continuous coverage" risk when it updates NFIP, which now expires on May 31, 2019.
Source: The Wall Street Journal, Lalita Clozel
© 2019 Florida Realtors®
Realtor.com: More online listings cutting prices
/SANTA CLARA, Calif. – Jan. 30, 2019 – Realtor.com's January housing report shows the U.S. housing market is off to a slower start in 2019. Although home prices continue to increase, 15 percent of U.S. listings had price cuts in January, and declines in days-on-market have significantly decelerated since last year.
"Although the market is slowing, it's important to remember that we're coming off of four straight years of inventory declines that pushed the market to a record low availability of homes for sale," says Danielle Hale, chief economist for realtor.com. "The real metric to keep an eye on is entry-level homes, which are the key to getting today's market back in balance. These homes are still in short-supply."
Note: Realtor.com analyzes listings' asking prices – not selling prices – and the statistics come only from an analysis of homes advertised on realtor.com's website.
Florida metro listing price changes
Tampa-St. Petersburg-Clearwater: Year-to-year inventory is up 21%; total share of price reductions up 3%; listing prices unchanged
Jacksonville: Year-to-year inventory is up 18%; total share of price reductions up 3%; listing prices down 3%
Orlando-Kissimmee-Sanford: Year-to-year inventory is up15%; total share of price reductions up 6%; listing prices unchanged
Miami-Fort Lauderdale-West Palm Beach: Year-to-year inventory up 12%; total share of price reductions is up 1%; listing prices down 1%
