Florida’s existing home sales rose in January, marking 17 months that sales activity has increased in the year-to-year comparison, according to the latest housing data released by Florida Realtors®.
Existing home sales increased 24 percent last month with a total of 10,465 homes sold statewide compared to 8,444 homes sold in January 2009, according to Florida Realtors. January’s statewide sales of existing condos rose 81 percent compared to the previous year’s sales figure.
Sixteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing home sales in January; all MSAs had higher condo sales. A majority of the state’s MSAs have reported increased sales for 19 consecutive months.
“Now is the time for anyone thinking of buying a home in Florida to make that decision,” said 2010 Florida Realtors President Wendell Davis, a broker and regional vice president with Watson Realty Corp. in Jacksonville. “Markets across the state are seeing increased sales, yet conditions remain very favorable with still-low mortgage rates, a range of housing inventory and attractive prices. As an added incentive, buyers need to accelerate their plans because a purchase contract must be in place by the end of April to take advantage of the extended and expanded federal tax credit. To find out more, consult a Realtor about options, qualification criteria and opportunities in your local housing market.”
Florida’s median sales price for existing homes last month was $130,900; a year ago, it was $139,400 for a 6 percent decrease. Analysts with the National Association of Realtors (NAR) note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.
The national median sales price for existing single-family homes in December 2009 was $177,500, up 1.4 percent from a year earlier, according to NAR. In California, the statewide median resales price was $306,820 in December; in Massachusetts, it was $305,000; in Maryland, it was $244,820; and in New York, it was $222,000.
According to NAR’s latest outlook, homebuyers are taking advantage of the federal tax credit. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices,” said NAR Chief Economist Lawrence Yun.
In Florida’s year-to-year comparison for condos, 4,631 units sold statewide last month compared to 2,554 units in January 2009 for an increase of 81 percent. The statewide existing condo median sales price last month was $97,300; in January 2009 it was $113,300 for a 14 percent decrease. The national median existing condo price was $183,700 in December 2009, according to NAR.
Interest rates for a 30-year fixed-rate mortgage averaged 5.03 percent last month, slightly lower than the average rate of 5.05 percent in January 2009, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
Among the state’s smaller markets, the Fort Walton Beach MSA reported a total of 143 homes sold in January compared to 118 homes a year earlier for a 21 percent increase. The market’s existing home median sales price last month was $201,400; a year ago it was $188,300 for an increase of 7 percent. A total of 70 condos sold in the MSA in January compared to 25 units sold the same month a year earlier for an increase of 180 percent. The existing condo median price last month was $270,800; a year earlier, it was $268,800 for a gain of 1 percent.
© 2010 Florida Realtors
Friday, February 26, 2010
Tuesday, February 23, 2010
Judge weighs damages in Chinese drywall case
A federal judge heard emotional testimony Monday from a group of Virginia homeowners who blame corrosive Chinese drywall for ruining their homes and finances and are seeking more than $2.5 million in damages.
U.S. District Judge Eldon Fallon didn’t immediately rule on the plaintiffs’ bid for a judgment against Chinese drywall manufacturer Taishan Gypsum Co., which hasn’t responded to lawsuits and didn’t have a lawyer representing the company for a two-day hearing that ended Monday.
Jerry Baldwin, 59, of Williamsburg, Va., said he and his wife, Inez, can’t afford to move out of the home they bought in 2006. The couple blames Chinese drywall for ruining appliances, electronics and the home’s air conditioning system.
Baldwin said the problem has cost him his financial security and left him worried for his family’s health.
“A retirement that looked six years away now looks a lot farther away,” he said.
Attorneys for the seven Virginia families said a favorable ruling could benefit hundreds of other plaintiffs whose claims have been consolidated in the New Orleans federal court. But recovering money from Taishan Gypsum could be difficult, since civil judgments in U.S. courts aren’t enforced in China.
Plaintiffs’ lawyers said they will try to seize the company’s U.S.-bound vessels and shipments if the company continues to ignore the litigation.
“They’re just thumbing their nose at the American judicial system. I don’t think they realize what’s going to happen to them,” said plaintiffs’ attorney Daniel Becnel Jr.
Judge Fallon, who said he will rule “as fast as I reasonably can,” also heard testimony Monday from engineers who have inspected homes with Chinese drywall and estimated the cost of removing and replacing damaged building materials, appliances and belongings. The testimony was designed to help the judge craft formal guidelines for fixing damaged homes.
Fallon’s ruling will be limited to the seven Virginia families, but other plaintiffs are waiting for their day in court. A first trial, which is for a lawsuit a Louisiana family filed against a different Chinese company, is scheduled to start March 15.
The Virginia plaintiffs watched Monday’s proceedings from the courtroom’s jury box, then took turns sharing their stories.
Lisa Orlando, whose family moved from upstate New York to a new home in Williamsburg, Va., last year, noticed a “baby diaper smell” in the house that she attributed to the previous owners. But the source of the odor wasn’t clear until a builder told them about their drywall problem a month after they moved into the house.
Orlando’s family has since moved out of the home, but their rent for their new place is higher than their mortgage.
“We’re having to start all over again,” she said. “We’re just happy to be out of our house and hopefully detoxifying.”
William Morgan and his wife, Deborah, moved to Williamsburg after he retired from the Norfolk, Va., police department. They quickly realized something was wrong with their “dream house.” Fixtures and mirrors turned black. Their lights malfunctioned. Their smoke detector system and water heater failed.
The problems drove them from their house into a rental home, leaving them in a financial mess that forced the couple to file for bankruptcy protection last year.
“We put our money into our home,” William Morgan said. “We didn’t have a safety net.”
Copyright © 2010 The Associated Press,
U.S. District Judge Eldon Fallon didn’t immediately rule on the plaintiffs’ bid for a judgment against Chinese drywall manufacturer Taishan Gypsum Co., which hasn’t responded to lawsuits and didn’t have a lawyer representing the company for a two-day hearing that ended Monday.
Jerry Baldwin, 59, of Williamsburg, Va., said he and his wife, Inez, can’t afford to move out of the home they bought in 2006. The couple blames Chinese drywall for ruining appliances, electronics and the home’s air conditioning system.
Baldwin said the problem has cost him his financial security and left him worried for his family’s health.
“A retirement that looked six years away now looks a lot farther away,” he said.
Attorneys for the seven Virginia families said a favorable ruling could benefit hundreds of other plaintiffs whose claims have been consolidated in the New Orleans federal court. But recovering money from Taishan Gypsum could be difficult, since civil judgments in U.S. courts aren’t enforced in China.
Plaintiffs’ lawyers said they will try to seize the company’s U.S.-bound vessels and shipments if the company continues to ignore the litigation.
“They’re just thumbing their nose at the American judicial system. I don’t think they realize what’s going to happen to them,” said plaintiffs’ attorney Daniel Becnel Jr.
Judge Fallon, who said he will rule “as fast as I reasonably can,” also heard testimony Monday from engineers who have inspected homes with Chinese drywall and estimated the cost of removing and replacing damaged building materials, appliances and belongings. The testimony was designed to help the judge craft formal guidelines for fixing damaged homes.
Fallon’s ruling will be limited to the seven Virginia families, but other plaintiffs are waiting for their day in court. A first trial, which is for a lawsuit a Louisiana family filed against a different Chinese company, is scheduled to start March 15.
The Virginia plaintiffs watched Monday’s proceedings from the courtroom’s jury box, then took turns sharing their stories.
Lisa Orlando, whose family moved from upstate New York to a new home in Williamsburg, Va., last year, noticed a “baby diaper smell” in the house that she attributed to the previous owners. But the source of the odor wasn’t clear until a builder told them about their drywall problem a month after they moved into the house.
Orlando’s family has since moved out of the home, but their rent for their new place is higher than their mortgage.
“We’re having to start all over again,” she said. “We’re just happy to be out of our house and hopefully detoxifying.”
William Morgan and his wife, Deborah, moved to Williamsburg after he retired from the Norfolk, Va., police department. They quickly realized something was wrong with their “dream house.” Fixtures and mirrors turned black. Their lights malfunctioned. Their smoke detector system and water heater failed.
The problems drove them from their house into a rental home, leaving them in a financial mess that forced the couple to file for bankruptcy protection last year.
“We put our money into our home,” William Morgan said. “We didn’t have a safety net.”
Copyright © 2010 The Associated Press,
Monday, February 22, 2010
U.S. DOJ focuses on asbestos in Fla. condos
The U.S. Department of Justice unsealed an 11-count indictment on Friday charging four Florida individuals with conspiracy, violations of the Clean Air Act, and making false statements for their roles in a scheme to improperly remove and dispose of asbestos from multiple condominiums in Florida.
John Loder, 43, of Redington Beach, Fla.; Stephen J. Spencer, 48, of Clearwater, Fla.; Guy Gannaway, 53, of Safety Harbor, Fla.; and Keith McConnell, a/k/a “Animal,” 54, of Largo, Fla., were charged in the indictment.
According to the indictment, John Loder and Stephen J. Spencer were members of an entity called Sun Vista Development Group LLC, which carried out the day-to-day operations and administrative work associated with the purchase, renovation and resale of large-scale condominium developments. Guy Gannaway owned Gannaway Builders Inc., a construction company hired as the general contractor. Keith McConnell was a supervisory employee of Gannaway Builders Inc.
The developments mentioned in the indictment under Sun Vista include Barefoot Beach Resort, formerly known as Indian Pass Apartments, in Indian Shores, Fla.; and Shore Club Pasadena, formerly known as Pasadena Apartments, in Pasadena, Fla. Units at these developments had ceilings coated with a “popcorn”-texture that contained greater than 1 percent asbestos. Gannaway Builders Inc. was general contractor for both.
According to the indictment, from November to December 2004, the defendants directed renovation work to begin at Barefoot Beach Resort without first conducting an asbestos survey for the building. From Dec. 10, 2004 until April 2005, the defendants discussed the asbestos at Barefoot Beach Resort and rejected at least one bid for complete removal of the asbestos-containing ceiling material. They decided, instead, to cover the existing ceilings with a new layer of drywall using Gannaway Builders employees and subcontractors to install the new drywall.
The indictment alleges that the work practice standards for asbestos, developed as part of the National Emission Standards for Hazardous Air Pollutants, were not followed. In some units, the asbestos-containing popcorn ceiling material was completely removed following a roof leak on or about June 24, 2005, also without following the asbestos work practice standards. Additionally, the indictment alleges that the defendants made and caused others to make false statements to the Pinellas County Air Quality Division in response to a notice of violation issued to Sun Vista Development Group and Gannaway Builders on Nov. 18, 2005.
Further, according to the indictment, from May 25, 2005 to Nov. 30, 2006, the defendants directed renovation work at Shore Club Pasadena without removing the asbestos-containing ceiling material prior to activity that disturbed the material. The renovation work that caused improper disturbances to the asbestos-containing material occurred without the presence of a properly trained on-site representative.
All four defendants are charged with conspiracy to violate the Clean Air Act and to make false statements. The indictment additionally charges Loder and Spencer with five counts of violating the Clean Air Act and one count of making a false statement. The indictment charges Guy Gannaway with eight counts of violating the Clean Air Act and two counts of making a false statement. The indictment further charges Keith McConnell with eight counts of violating the Clean Air Act and one count of making a false statement.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty in a court of law. The maximum penalty for each count of the indictment includes five years in prison and a $250,000 fine.
The Environmental Protection Agency Criminal Investigation Division investigated this case with assistance from the Florida Department of Law Enforcement. It is being prosecuted by the U.S. Attorney’s Office for the Middle District of Florida and the Justice Department’s Environmental Crimes Section.
Source: U.S. Department of Justice
© 2010 Florida Realtors®
John Loder, 43, of Redington Beach, Fla.; Stephen J. Spencer, 48, of Clearwater, Fla.; Guy Gannaway, 53, of Safety Harbor, Fla.; and Keith McConnell, a/k/a “Animal,” 54, of Largo, Fla., were charged in the indictment.
According to the indictment, John Loder and Stephen J. Spencer were members of an entity called Sun Vista Development Group LLC, which carried out the day-to-day operations and administrative work associated with the purchase, renovation and resale of large-scale condominium developments. Guy Gannaway owned Gannaway Builders Inc., a construction company hired as the general contractor. Keith McConnell was a supervisory employee of Gannaway Builders Inc.
The developments mentioned in the indictment under Sun Vista include Barefoot Beach Resort, formerly known as Indian Pass Apartments, in Indian Shores, Fla.; and Shore Club Pasadena, formerly known as Pasadena Apartments, in Pasadena, Fla. Units at these developments had ceilings coated with a “popcorn”-texture that contained greater than 1 percent asbestos. Gannaway Builders Inc. was general contractor for both.
According to the indictment, from November to December 2004, the defendants directed renovation work to begin at Barefoot Beach Resort without first conducting an asbestos survey for the building. From Dec. 10, 2004 until April 2005, the defendants discussed the asbestos at Barefoot Beach Resort and rejected at least one bid for complete removal of the asbestos-containing ceiling material. They decided, instead, to cover the existing ceilings with a new layer of drywall using Gannaway Builders employees and subcontractors to install the new drywall.
The indictment alleges that the work practice standards for asbestos, developed as part of the National Emission Standards for Hazardous Air Pollutants, were not followed. In some units, the asbestos-containing popcorn ceiling material was completely removed following a roof leak on or about June 24, 2005, also without following the asbestos work practice standards. Additionally, the indictment alleges that the defendants made and caused others to make false statements to the Pinellas County Air Quality Division in response to a notice of violation issued to Sun Vista Development Group and Gannaway Builders on Nov. 18, 2005.
Further, according to the indictment, from May 25, 2005 to Nov. 30, 2006, the defendants directed renovation work at Shore Club Pasadena without removing the asbestos-containing ceiling material prior to activity that disturbed the material. The renovation work that caused improper disturbances to the asbestos-containing material occurred without the presence of a properly trained on-site representative.
All four defendants are charged with conspiracy to violate the Clean Air Act and to make false statements. The indictment additionally charges Loder and Spencer with five counts of violating the Clean Air Act and one count of making a false statement. The indictment charges Guy Gannaway with eight counts of violating the Clean Air Act and two counts of making a false statement. The indictment further charges Keith McConnell with eight counts of violating the Clean Air Act and one count of making a false statement.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty in a court of law. The maximum penalty for each count of the indictment includes five years in prison and a $250,000 fine.
The Environmental Protection Agency Criminal Investigation Division investigated this case with assistance from the Florida Department of Law Enforcement. It is being prosecuted by the U.S. Attorney’s Office for the Middle District of Florida and the Justice Department’s Environmental Crimes Section.
Source: U.S. Department of Justice
© 2010 Florida Realtors®
Friday, February 19, 2010
Legislature tries again to tackle insurance mess
Randi Schuknecht worried that her longtime, established insurance company was about to leave Florida – and leave her without a homeowner’s policy. So she found a new insurer – one she wouldn’t have to worry about if a big storm struck the state and damaged or destroyed her home.
But that switch from State Farm Florida to Florida Farm Bureau is costing the Tallahassee elementary school teacher about $400 more annually. It was the best deal Schuknecht could find with a company she was confident was solvent.
“I was afraid that if you waited too long and State Farm did pull out, you would sort of be at the mercy of the insurance companies with so many people needing insurance at the same time,” she said. “All the other quotes I was getting from the Web site were double and some were triple. I didn’t want to get caught in that.”
When the Legislature convenes March 2, it will again try to solve the state’s insurance puzzle – how to make policies more affordable while making sure that the companies are profitable and able to cover claims if a major hurricane hits the state. Because if the companies can’t pay, the state could be on the hook for billions. It also needs to get more customers off the state-backed, underfunded insurer of last-resort, Citizens Property Insurance Corp.
“It’s like a kaleidoscope,” said Rep. Bill Proctor, a St. Augustine Republican who is spearheading an effort in the House to pass legislation this spring he believes will help companies – and the state – become solvent. “You think you see (the solution) one minute and the next minute it’s different.”
“We have a long way to go,” concedes Senate President Jeff Atwater, R-North Palm Beach. “How we get there, I don’t know.”
This should be a profitable period for the insurance companies – no major storms have hit the state since the devastating years of 2004 and 2005, when eight struck. But many of the companies claim to be losing money.
“The thing that’s worrisome is you see that 102 of them are reporting losses when you’ve had no storms,” Proctor said.
A handful of proposals have already been introduced, including one similar to a measure vetoed last spring by Gov. Charlie Crist that would largely leave premium rates up to the insurers. Currently, the rates have to be approved by the state.
“It’s time, we’re going to have to come to grips with the reality we’re going to pay rates equal to the risk,” Proctor said.
Atwater, however, wants to reduce the risk for worried homeowners like Schuknecht.
And while luck has been on the side of property owners and insurers in recent hurricane seasons, Florida’s $2.1 trillion exposure dramatically exceeds any available insurance coverage.
“Florida taxpayers remain on the hook for potentially billions of dollars of claims following a major catastrophe,” said Sam Miller, executive vice president of the Florida Insurance Council, an industry association. He noted that many of the newer, small companies – that make up roughly half the market now – would likely go bankrupt if a cataclysmic event happened. The state would have to step in.
“It is not all OK,” said House Speaker Larry Cretul, one of thousands of Floridians whose homeowners policy was canceled by his carrier. Cretul, however, was able to pick up a replacement policy for a slightly lower rate.
Lawmakers and many consumers breathed a sigh of relief in December when State Farm reached a truce with state regulators and will continue to do business in Florida despite Crist’s animosity toward the multibillion-dollar company that continues to trim its exposure.
State Farm, which insurers slightly more than 700,000 homeowners in the state, isn’t taking on much new business and will shed another 125,000 policies in the next 18 months.
“It’s very limited,” State Farm spokesman Justin Glover said. “It’s basically folks who are already customers of ours who move from one area of the state to another.”
The possibility of deep pocket insurers like State Farm pulling out of Florida also created an industry ripple that sent homeowners scurrying.
“I started getting kind of scared and started looking around,” said Sandy Payne, a Tallahassee resident who switched her family’s insurance to Tower Hill at about $100 more annually and lost a discount she had with State Farm on auto coverage for multiple policies.
And after 16 years without a claim during her stay with State Farm, Payne had pipes burst in her attic and filed a $3,000 claim with Tower Hill in her first few months as a customer.
“It’ll be interesting to see what my rates will be in June when my renewal comes up,” she said.
While big national companies like State Farm and Allstate have substantially reduced their stake in Florida, creating space for more new competitors, it’s a risky business for everyone involved and costs are likely to increase despite the politics.
“Competition is what drives prices down,” said Sen. Garrett Richter, a Naples Republican who chairs the Senate Banking and Insurance Committee. “It’ll be important for us to continue to work on property insurance reform with the goal to increase competition in the state.”
Copyright © 2010 The Associated Press
But that switch from State Farm Florida to Florida Farm Bureau is costing the Tallahassee elementary school teacher about $400 more annually. It was the best deal Schuknecht could find with a company she was confident was solvent.
“I was afraid that if you waited too long and State Farm did pull out, you would sort of be at the mercy of the insurance companies with so many people needing insurance at the same time,” she said. “All the other quotes I was getting from the Web site were double and some were triple. I didn’t want to get caught in that.”
When the Legislature convenes March 2, it will again try to solve the state’s insurance puzzle – how to make policies more affordable while making sure that the companies are profitable and able to cover claims if a major hurricane hits the state. Because if the companies can’t pay, the state could be on the hook for billions. It also needs to get more customers off the state-backed, underfunded insurer of last-resort, Citizens Property Insurance Corp.
“It’s like a kaleidoscope,” said Rep. Bill Proctor, a St. Augustine Republican who is spearheading an effort in the House to pass legislation this spring he believes will help companies – and the state – become solvent. “You think you see (the solution) one minute and the next minute it’s different.”
“We have a long way to go,” concedes Senate President Jeff Atwater, R-North Palm Beach. “How we get there, I don’t know.”
This should be a profitable period for the insurance companies – no major storms have hit the state since the devastating years of 2004 and 2005, when eight struck. But many of the companies claim to be losing money.
“The thing that’s worrisome is you see that 102 of them are reporting losses when you’ve had no storms,” Proctor said.
A handful of proposals have already been introduced, including one similar to a measure vetoed last spring by Gov. Charlie Crist that would largely leave premium rates up to the insurers. Currently, the rates have to be approved by the state.
“It’s time, we’re going to have to come to grips with the reality we’re going to pay rates equal to the risk,” Proctor said.
Atwater, however, wants to reduce the risk for worried homeowners like Schuknecht.
And while luck has been on the side of property owners and insurers in recent hurricane seasons, Florida’s $2.1 trillion exposure dramatically exceeds any available insurance coverage.
“Florida taxpayers remain on the hook for potentially billions of dollars of claims following a major catastrophe,” said Sam Miller, executive vice president of the Florida Insurance Council, an industry association. He noted that many of the newer, small companies – that make up roughly half the market now – would likely go bankrupt if a cataclysmic event happened. The state would have to step in.
“It is not all OK,” said House Speaker Larry Cretul, one of thousands of Floridians whose homeowners policy was canceled by his carrier. Cretul, however, was able to pick up a replacement policy for a slightly lower rate.
Lawmakers and many consumers breathed a sigh of relief in December when State Farm reached a truce with state regulators and will continue to do business in Florida despite Crist’s animosity toward the multibillion-dollar company that continues to trim its exposure.
State Farm, which insurers slightly more than 700,000 homeowners in the state, isn’t taking on much new business and will shed another 125,000 policies in the next 18 months.
“It’s very limited,” State Farm spokesman Justin Glover said. “It’s basically folks who are already customers of ours who move from one area of the state to another.”
The possibility of deep pocket insurers like State Farm pulling out of Florida also created an industry ripple that sent homeowners scurrying.
“I started getting kind of scared and started looking around,” said Sandy Payne, a Tallahassee resident who switched her family’s insurance to Tower Hill at about $100 more annually and lost a discount she had with State Farm on auto coverage for multiple policies.
And after 16 years without a claim during her stay with State Farm, Payne had pipes burst in her attic and filed a $3,000 claim with Tower Hill in her first few months as a customer.
“It’ll be interesting to see what my rates will be in June when my renewal comes up,” she said.
While big national companies like State Farm and Allstate have substantially reduced their stake in Florida, creating space for more new competitors, it’s a risky business for everyone involved and costs are likely to increase despite the politics.
“Competition is what drives prices down,” said Sen. Garrett Richter, a Naples Republican who chairs the Senate Banking and Insurance Committee. “It’ll be important for us to continue to work on property insurance reform with the goal to increase competition in the state.”
Copyright © 2010 The Associated Press
Insurance claims continue from 2005 storms
The Florida Hurricane Catastrophe Fund, which offers reinsurance to private insurers in Florida, will seek a 0.3 percent increase in the surcharge it places on nearly all insurance policies in the state. The additional surcharge could increase rates for consumers by $3 per every $1,000 in coverage beginning in January 2011.
The reinsurance pool needs to raise an additional $710 million to cover continued losses from the 2005 hurricane season when four storms battered Florida. Assessments on insurance policies were set to end in 2012, but they have been extended through July 2016.
The only policies exempt from surcharges are workers’ compensation and medical malpractice.
The fund has raised $1.9 billion to cover claims from the 2005 hurricane season thus far, but claims continue to trickle in as claims are reopened and homeowners discover additional damage from the storms.
Source: Miami Herald (02/18/10) Garcia, Beatrice
© Copyright 2010 INFORMATION, INC. Bethesda, MD
The reinsurance pool needs to raise an additional $710 million to cover continued losses from the 2005 hurricane season when four storms battered Florida. Assessments on insurance policies were set to end in 2012, but they have been extended through July 2016.
The only policies exempt from surcharges are workers’ compensation and medical malpractice.
The fund has raised $1.9 billion to cover claims from the 2005 hurricane season thus far, but claims continue to trickle in as claims are reopened and homeowners discover additional damage from the storms.
Source: Miami Herald (02/18/10) Garcia, Beatrice
© Copyright 2010 INFORMATION, INC. Bethesda, MD
Friday, February 12, 2010
Florida’s existing home, condo sales rise in 4Q 2009
Sales of existing single-family homes in Florida rose 44 percent in fourth quarter 2009 compared to the same period a year earlier, according to the latest housing statistics from Florida Realtors®. A total of 43,926 existing homes sold statewide in 4Q 2009; during the same period the year before, a total of 30,610 existing homes sold. It marks the sixth consecutive quarter that Florida has seen higher existing year-to-year home sales, according to the state association.
Statewide sales of existing condominiums in the fourth quarter rose 93 percent compared to the same time the previous year. This marks the fifth consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.
To gain insight into current trends in Florida’s real estate industry, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a quarterly survey of industry executives, market research economists, real estate scholars and other experts. The survey noted uncertainty over the tight credit market, foreclosures and the jobs outlook.
On the positive side, private investors – both foreign and domestic – are starting to “kick the tires” in many markets, said Timothy Becker, the center’s director. In addition, investor expectation for returns is starting to fall to more realistic levels, helping to close the spread between bidding and asking prices, he said.
“These developments bode well for the transaction market when quality properties start coming to the marketplace,” Becker added.
Eighteen of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in the fourth quarter compared to the same three-month-period a year earlier, while all of the MSAs showed gains in condo sales.
The statewide existing-home median sales price was $140,000 in the fourth quarter; a year earlier, it was $160,600 for a decrease of 13 percent. According to industry analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is a typical market price where half the homes sold for more, half for less.
In the year-to-year quarterly comparison for condo sales, 16,255 units sold statewide for the quarter compared to 8,410 in 4Q 2008 for a 93 percent increase. The statewide existing-condo median sales price was $105,500 for the three-month period; in 4Q 2008, it was $136,600 for a decrease of 23 percent.
Low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 4.92 percent in 4Q 2009; one year earlier, it averaged 5.86 percent.
© 2010 Florida Realtors®
Statewide sales of existing condominiums in the fourth quarter rose 93 percent compared to the same time the previous year. This marks the fifth consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.
To gain insight into current trends in Florida’s real estate industry, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a quarterly survey of industry executives, market research economists, real estate scholars and other experts. The survey noted uncertainty over the tight credit market, foreclosures and the jobs outlook.
On the positive side, private investors – both foreign and domestic – are starting to “kick the tires” in many markets, said Timothy Becker, the center’s director. In addition, investor expectation for returns is starting to fall to more realistic levels, helping to close the spread between bidding and asking prices, he said.
“These developments bode well for the transaction market when quality properties start coming to the marketplace,” Becker added.
Eighteen of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in the fourth quarter compared to the same three-month-period a year earlier, while all of the MSAs showed gains in condo sales.
The statewide existing-home median sales price was $140,000 in the fourth quarter; a year earlier, it was $160,600 for a decrease of 13 percent. According to industry analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is a typical market price where half the homes sold for more, half for less.
In the year-to-year quarterly comparison for condo sales, 16,255 units sold statewide for the quarter compared to 8,410 in 4Q 2008 for a 93 percent increase. The statewide existing-condo median sales price was $105,500 for the three-month period; in 4Q 2008, it was $136,600 for a decrease of 23 percent.
Low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 4.92 percent in 4Q 2009; one year earlier, it averaged 5.86 percent.
© 2010 Florida Realtors®
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