March Pending Sales Plunge 20.8%; NAR Calls It Temporary

By Kerry Smith, Florida Realtors

The usual spring home-selling season took a hit due to the pandemic, but most experts consider it a bump in the road rather than a long-term change.

WASHINGTON – Pending home sales fell 20.8% in March – expected declines as a result of the coronavirus outbreak, according to the National Association of Realtors® (NAR).

The drop was widespread, and each of the four major regions tracked by the index saw drops in month-over-month contract activity and year-over-year pending home sales transactions.

The Pending Home Sales Index (PHSI) – a forward-looking indicator based on contract signings – decreased 20.8% to 88.2 in March. Year-over-year, contract signings declined too though not as much at 16.3%. An index of 100 is equal to the level of contract activity in 2001.

“The housing market is temporarily grappling with the coronavirus-induced shutdown, which pulled down new listings and new contracts,” said Lawrence Yun, NAR’s chief economist. “As consumers become more accustomed to social distancing protocols, and with the economy slowly and safely reopening, listings and buying activity will resume, especially given the record low mortgage rates.”

“The usual spring buying season will be missed, however, so a bounce-back later in the year will be insufficient to make up for the loss of sales in the second quarter,” Yun says. “Overall, home sales are projected to have declined 14% for the year.

“Although the pandemic continues to be a major disruption in regards to the timing of home sales, home prices have been holding up well,” Yun adds. “In fact, due to the ongoing housing shortage, home prices are likely to squeeze out a gain in 2020 to a new record high. I project the national median home price to increase 1.3% for the year, though there will be local market variations and the upper-end market will likely experience a reduction in home price.”

March pending home sales regional breakdown

The Northeast PHSI dropped 14.5% to 82.3 in March – 11.0% lower than a year ago. In the Midwest, the index decreased 22.0% to 85.6 last month, and it’s down 12.4% from March 2019.

Pending home sales in the South sank 19.5% to an index of 103.7 in March, a 17.8% drop from March 2019. The index in the West fell 26.8% in March 2020 to 71.4, down 21.5% from a year ago.

© 2020 Florida Realtors®

Mortgage Rates Hit All-Time Low – 3.23%

By Kerry Smith

The pandemic-slowed economy pushed the average 30-year mortgage rate to its lowest point in at least 50 years – since Freddie Mac started tracking rates in 1971.

WASHINGTON – The pandemic-slowed U.S. economy pushed the average 30-year mortgage rate to its lowest point in at least 50 years, according to Freddie Mac, which started tracking rates in 1971.

The size and depth of the secondary mortgage market is helping keep rates at record lows, Freddie Mac says. Today’s low rates are driving higher refinance activity and a modest uptick in demand for new-home purchases.

However, not everyone can take advantage of today’s low rates. In some cases, banks have tightened lending restrictions and are making loans only to well-qualified buyers or home refinancers. In addition, some potential homebuyers in January are now out of work as applications for unemployment skyrocket.

At 3.23%, the average 30-year fixed-rate mortgage is down 0.10% week-to-week (from 3.23%) and 0.91% compared to this same time last year.

The 15-year fixed-rate mortgage dropped to 2.77% this week. That’s down .0.09% from last week (from 2.86%) and down 0.83% year-to-year.

The 5/1 hybrid adjustable-rate mortgage averaged 3.14 % this week.

Economists at Fannie Mae predicted this week that 30-year rates could go as low as 2.9% in 2021, however it’s unclear yet what effect the COVID-19 pandemic will have over the long term.

“In our view, the negative shock will apply to both the home purchase and rental markets. On the demand side, early indications are that the purchasing benefit of lower interest rates are being offset by the downturn in employment,” says Doug Duncan, senior vice president and chief economist at Fannie Mae.

“On the supply side, the number of listings is falling, as those with homes to offer may either be hesitant to allow strangers to tour their home or worry that the lack of demand is placing downward pressure on the sales price they might otherwise receive,” Duncan adds.

© 2020 Florida Realtors®

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Fla.’s Home Sales and Median Prices Show Gains at End of 2019

Fla.’s Home Sales and Median Prices Show Gains at End of 2019

Fla. Realtors data: Single-family sales up 5.9%, median price up 3.7% year-over-year while condo median price up 3.8% over 2018’s end. Condo sales eased slightly, down 0.8%, compared to a year ago. A growing economy and strong jobs outlook bode well for 2020.

ORLANDO, Fla. – Florida’s housing market wrapped up 2019 with more sales, higher median sale prices and more pending inventory compared to the year before, according to the latest housing data released by Florida Realtors®.

“Florida’s economy is growing and every day, more than 900 people are moving to the Sunshine State, according to state economists,” says 2020 Florida Realtors President Barry Grooms, a Realtor and co-owner of SaraBay Suncoast Realty Inc. in Bradenton.

“The state’s jobs market remains strong with the latest unemployment rate (December 2019) at a record low of 3% – even better than the national unemployment rate of 3.5%. Mortgage interest rates have continued to remain at historically low levels, which is good news for homebuyers. And Florida’s homeownership rate in 4Q 2019 was 66.6%. All of these factors are positive signs for the state’s housing market in 2020.”

4Q 2019

Statewide closed sales of existing single-family homes totaled 70,839 in the fourth quarter of 2019, up 11.6% compared to the year-ago figure, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.

“Fueled by low mortgage interest rates, sales of Florida homes in the 4th quarter were very strong compared to a year ago,” says Florida Realtors Chief Economist Dr. Brad O’Connor. “Meanwhile, the number of properties being listed for sale has not been changing much, so the result is that the surge in sales is continuing to drive down inventory levels. As long as we continue to see these low rates, we should expect this trend to keep pushing home values upward.”

The statewide median sales price for existing single-family homes for 4Q 2019 was $265,900, up 4.3% from 4Q 2018. New pending sales for existing single-family homes for the quarter rose 13.2% compared to a year ago, while pending inventory was up 8.7% from 4Q 2018.

Looking at Florida’s year-to-year comparison for sales of condo-townhouses, a total of 26,932 units sold statewide in 4Q 2019, up 3.3% compared to the same period a year earlier. The statewide median price for condo-townhouse properties for the quarter was $195,000, up 5.9% over the previous year. New pending sales for condo-townhouses for 4Q 2019 increased 6.8% compared to a year ago, while pending inventory was up 4% from the same quarter the previous year.

Year End 2019

Statewide closed sales of existing single-family homes totaled 294,120 at the end of 2019, up 5.9% compared to the 2018 figure, according to data from Florida Realtors research department in partnership with local Realtor boards/associations.

Looking to 2020, Chief Economist O’Connor forecasts a robust outlook for Florida’s housing market this year. In-migration to the Sunshine State from other states remains strong, with the five top origin states being New York, Georgia, Virginia, Pennsylvania and New Jersey, respectively. In fact, in-migration to Florida helped to drive increased home sales in 2019, according to O’Connor.

“It was exciting to see the almost 6% growth (5.9%) in closed single-family sales in 2019 from 2018,” O’Connor says. “Florida topped over $100 billion (total of $101.9 billion) in volume in home sales last year, up 8.3% from 2018; for condo-townhouses, we reached $31.6 billion in volume, up 1.8% over the 2018 figure.”

The statewide median sales price for single-family existing homes at year’s end was $264,000, up 3.7% from the previous year. New pending sales for existing single-family homes rose 5.2% at the end of 2019 compared to the previous year, while pending inventory for single-family homes increased 8.7% from a year ago.

Looking at Florida’s year-to-year comparison for sales of condo-townhouses, a total of 115,659 units sold statewide in 2019, down slightly (0.8%) from 2018. The statewide median price for condo-townhouse properties at the end of the year was $192,000, up 3.8% from year-end 2018. New pending sales for condo-townhouse units for the end of 2019 increased 0.2% compared to a year ago, while pending inventory for condo-townhouses was up 4% from year-end 2018.

At the end of 2019 and also for 4Q 2019, inventory for single-family homes stood at a 3.4-months’ supply, while inventory for condo-townhouse properties was at a 5.2-months’ supply, according to Florida Realtors.

The interest rate for a 30-year fixed-rate mortgage averaged 3.94% for 2019, down significantly from the previous year’s average of 4.54%, according to Freddie Mac.

To see the full statewide housing activity reports, go to Florida Realtors Media Center at and look under Latest Releases, or download the 4Q 2019 and Year End 2019 data report PDFs under Market Data.

© 2020 Florida Realtors®

National Home Warranty Day

A question I get a lot from home buyers is “Do I need a home warranty?”

Since today is National Home Warranty Day, I wanted to go over what a home warranty is, and what it covers.

A home warranty is different from home owner’s insurance in that the home warranty covers the repair or replacement of your appliances that break down through normal wear and tear.

There’s also different types of home warranties out there that cover various things in your home, so you can choose the one that best fits your needs. Home warranties can be handy and help give you piece of mind knowing that if something does break, you’re covered.

Do you have a question about home warranties? Feel free to give Robert “Bobby” Keith a call/text at 386-793-1426.

U.S. Housing Supply Reaches All-Time Low

Realtor.com: Housing inventory dropped 13.6% in Jan. – the steepest year-over-year decline in over four years. The current supply of for-sale homes in the U.S. is the lowest it’s been since realtor.com began tracking it in 2012. It’s down 10%-20% in the four Fla. cities tracked.

SANTA CLARA, Calif. – National housing inventory declined 13.6% in January – the steepest year-over-year decrease in more than 4 years – pushing the supply of for-sale homes in the U.S. to the lowest level ever since realtor.com began tracking the data in 2012.

Based on realtor.com’s analysis, January’s steep year-over-year decline amounted to a national loss of 164,000 listings that tightens the housing shortage plaguing the U.S.

And based on realtor.com’s data, a dearth of for-sale homes shows no signs of easing in the near future as the volume of newly listed properties also declined by 10.6% since last year.

“Homebuyers took advantage of low mortgage rates and stable listing prices to drive sales higher at the end of 2019, further depleting the already limited inventory of homes for sale,” says Danielle Hale, realtor.com’s chief economist. “With fewer homes coming up for sale, we’ve hit another new low of for sale-listings in January.”

Hales calls it a “challenging sign for the large numbers of millennial and Gen Z buyers coming into the housing market this homebuying season, as it implies the potential for rising prices and fast-selling homes – a competitive market.”

The supply shortage is found at every price tier throughout the U.S., but it’s especially pronounced at the entry-level. In January, properties priced under $200,000 declined by 19%, an acceleration compared to December’s decline of 18.1%.

The decline in inventory of mid-tier properties priced between $200,000 and $750,000 also accelerated, to a decline of 12% year-over-year, compared to December’s 10.2% decline. Even upper-tier properties priced at more than $750,000 declined by 5.9% year-over-year compared to December’s decline of 4.4%.

As inventory dropped, both listing prices and days-on-market reacted to the imbalance of supply and demand. The median U.S. listing price grew by 3.4% year-over-year, to $299,995 in January, while prices in 18 metros grew by more than 10%.

Of the 50 largest metros, 46 saw year-over-year gains in median listing prices, with Philadelphia as the nation’s standout with a 16.0% increase over last year. Additionally, with the lack of supply, homes are selling in an average of 86 days – two days more quickly than January of last year.

Florida housing markets’ year-to-year changes

• Tampa-St. Petersburg-Clearwater: Active listings down 20.2%, with 4 fewer days on the market

• Orlando-Kissimmee-Sanford: Active listings down 15.8%, with 6 fewer days on the market

• Miami-Fort Lauderdale-West Palm Beach: Active listings down 11.2% with 3 fewer days on the market

• Jacksonville: Active listings down 10.5% with 5 fewer days on the market

© 2020 Florida Realtors®

January 2020 - Flagler County Canal Home Sales Report

Hello and thank you for checking out this months Saltwater Canal Home Sales Report for Flagler County. Below are saltwater canal property sales along with the addresses & selling prices of each property sold in January 2020.

If you’re looking to buy or sell a waterfront home feel free to browse the website and register yourself for free market updates. You can also give me a call or text directly at 386-793-1426 anytime!

12 Saltwater Canal Homes sold in the first month of 2020 in Flagler County.

The Top Sale was 3164 N Ocean Shore Blvd selling at $785,500. This property has 5BR 4BA with a total of 3,618 living square feet.

The Deal of the Month was 7 Cheyenne Court selling for $221,000. This property has 2BR 2BA with a total living square feet of 1645.

Here’s all the saltwater canal home sales for January 2020.

Northern Penninsula

3164 N Oceanshore Blvd - $785,500

Palm Coast - Palm Harbor

20 Cloverdale Ct. N - $515,000

24 Conley Court - $480,000

13 Crandon Court - $436,000

5 Chestnut Ct.- $390,000

8 Corning Court - $330,000

49 Cottonwood Court - $295,000

31 Cottonwood Court - $295,000

17 College Court - $284,000

241 Coral Reef Ct N - $239,000

34 Columbia Lane - $225,500

7 Cheyenne Court - $221,000

Thank you for checking out this months Saltwater Canal Home Sales Report in Flagler County.  All information is believed to be true and accurate, but not guaranteed.  The source for the information above is from the Flagler County MLS.  This is not intended to be an estimate of any ones home value.  To find your homes value in this market, give me a call and we will schedule a free valuation on your property give me a call or text at 386-793-1426.

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Congress Votes to Extend National Flood Insurance

No lapse in NFIP yet: Congress passed an extension to keep it going until Nov. 21 – the 13th time it’s been extended. President Trump is expected to sign the bill.

WASHINGTON – Don’t expect a lapse – not yet anyway – in the National Flood Insurance Program, the country’s largest flood insurer. The program has been set to expire on Sept. 30, but the U.S. Senate recently passed an extension that would keep the program afloat until Nov. 21. The House had previously passed the extension.

The bill is expected to be signed by President Donald Trump.

This extension will mark the 13th time the program – which is billions of dollars in debt – has been rescued by lawmakers with extensions. The NFIP provides flood insurance coverage to 22,000 communities nationwide and protects property owners against loss from flooding, the most common and costly natural disaster in the U.S.

Federal law requires the purchase of flood insurance for a federally backed mortgage in special flood hazard areas designated by FEMA. Private flood insurance is also available in many high-risk areas, but the NFIP may be the only option for some homeowners.

Any lapse in NFIP funding could jeopardize up to 40,000 home sales a month, the National Association of Realtors® has warned in the past. NAR has long called on long-term reforms to the program. NAR supports reforms to the National Flood Insurance Program, including calls to strengthen flood mapping and mitigation and the development of more private-market flood insurance options.

Meteorologists warn that rising sea levels and increasingly powerful storms will continue to threaten more areas with flooding.

Source: REALTOR® Magazine

© 2019 Florida Realtors®

SOLD! 3 Floyd Court Palm Coast, FL 32137

3 Floyd Court is SOLD! 9/27/19