MIAMI – March 4, 2011 – The number of homes where sellers have cut their asking price is up 17.6 percent, according to a ZipRealty survey that analyzed MLS-listed properties in 26 markets.
“In more than half of the surveyed markets, sellers are averaging at least two reductions in price,” says John Oldham, director of marketing for ZipRealty. “Inventory has grown throughout much of the year. As sellers face the pressure of more buying options, they seem to be discounting to attract buyers resulting in list prices being cut for over 46 percent of the homes.”
The median reduction amount has averaged 1.7 percent or $19,088.
Florida leads the nation in the largest percentage discount off the original list price, with Orlando (12.5 percent discount), Jacksonville (12.1 percent), and Miami/Fort Lauderdale/Palm Beach (11.9) leading the pack.
The top 5 markets with the largest overall median price reduction in absolute dollars include:
1. San Francisco: $32,500 median price reduction
2. Orange County, Calif.: $31,000
3. San Diego: $29,100
4. Miami/Ft. Lauderdale/Palm Beach: $25,000
5. Seattle: $25,000
Source: “ZipRealty’s monthly price reduction index reports double digit increase in number of price reduced home listings over last year,” ZipRealty (Feb. 10, 2011)
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Friday, March 4, 2011
Thursday, March 3, 2011
Stubborn sellers stand firm on price
COLUMBIA, S.C. – March 3, 2011 – Some sellers say they are unwilling to lower their home’s price to reflect the current real estate market, which some housing experts say is contributing to high inventories and souring the real estate market in their areas.
For example, in Columbia, S.C., some sellers are keeping their prices high and waiting for the market to change, which is causing home sales in the city to continue to slump, even though other parts of the country are already seeing a rebound. The median price for single-family homes in Columbia rose 3.3 percent in January compared to January 2010, but the number of homes sold fell 11.6 percent in January. Home sales have dropped 40 percent since its peak in 2006 in the area.
“This is a price-driven market,” says Doug Bridges, a real estate agent with Coldwell Banker United, Realtors®, in Northeast Richland, S.C. “You’ve gotta have your house better positioned than the next guy’s.” By not lowering the price, the homes linger on the market or have to be put up on the market multiple times, and a buyer often never comes forward.
Seller Jim Brodeur says he refuses to lower the $149,000 price on his two-bedroom, 1,200-square-foot bungalow in Columbia, S.C. He has unsuccessfully put the home up for sale himself three times in the past six years.
Brodeur says a lot of home buyers are looking for a steal nowadays, and “I don’t feel the urge to help anybody steal anything,” says Brodeur. “I don’t have to sell it, and I’m not going to give it away. If I lost my job, it would be different.”
Meanwhile, Bridges suggests sellers get an up-to-date appraisal of their property and have it available to buyers. He says buyers shouldn’t expect to nab the same price they could get a few years ago when housing prices were at their peak.
Source: “Many home sellers won’t budge on price,” The State (Feb. 27, 2011)
For example, in Columbia, S.C., some sellers are keeping their prices high and waiting for the market to change, which is causing home sales in the city to continue to slump, even though other parts of the country are already seeing a rebound. The median price for single-family homes in Columbia rose 3.3 percent in January compared to January 2010, but the number of homes sold fell 11.6 percent in January. Home sales have dropped 40 percent since its peak in 2006 in the area.
“This is a price-driven market,” says Doug Bridges, a real estate agent with Coldwell Banker United, Realtors®, in Northeast Richland, S.C. “You’ve gotta have your house better positioned than the next guy’s.” By not lowering the price, the homes linger on the market or have to be put up on the market multiple times, and a buyer often never comes forward.
Seller Jim Brodeur says he refuses to lower the $149,000 price on his two-bedroom, 1,200-square-foot bungalow in Columbia, S.C. He has unsuccessfully put the home up for sale himself three times in the past six years.
Brodeur says a lot of home buyers are looking for a steal nowadays, and “I don’t feel the urge to help anybody steal anything,” says Brodeur. “I don’t have to sell it, and I’m not going to give it away. If I lost my job, it would be different.”
Meanwhile, Bridges suggests sellers get an up-to-date appraisal of their property and have it available to buyers. He says buyers shouldn’t expect to nab the same price they could get a few years ago when housing prices were at their peak.
Source: “Many home sellers won’t budge on price,” The State (Feb. 27, 2011)
Market rebound for Florida
Until recently Florida was always in the top 2 or 3 for the highest number of foreclosures. This report from CNBC shows that we are now at number 9 and more importantly the change from a year ago is dramatic. The number of foreclosures in this state in down by a whopping 53%! This is HUGE and signals a positive change in our market statewide. Now is the time to buy. As our market continues to improve, prices WILL go up.
Here are the top ten states with the highest number of foreclosures.
10. Colorado
Here are the top ten states with the highest number of foreclosures.
10. Colorado
Rate: One in every 438 households
Properties with filings in 2010: 4,946
Change from Nov. 2010: -3.46%
Change from Dec. 2009: -1.65%
Properties with filings in 2010: 4,946
Change from Nov. 2010: -3.46%
Change from Dec. 2009: -1.65%
9. Florida
Rate: One in every 409 households
Properties with filings in 2010: 21,671
Change from Dec. 2010: -15.48%
Change from Jan. 2010: -53.96%
Properties with filings in 2010: 21,671
Change from Dec. 2010: -15.48%
Change from Jan. 2010: -53.96%
8. Illinois
Rate: One in every 402 households
Properties with filings in 2010: 13,164
Change from Dec. 2010: -6.25%
Change from Jan. 2010: -27.35%
Properties with filings in 2010: 13,164
Change from Dec. 2010: -6.25%
Change from Jan. 2010: -27.35%
7. Georgia
Rate: One in every 318 households
Properties with filings in 2010: 12,772
Change from Dec. 2010: 15.67%
Change from Jan. 2010: 13.29%
Properties with filings in 2010: 12,772
Change from Dec. 2010: 15.67%
Change from Jan. 2010: 13.29%
6. Michigan
Rate: One in every 272 households
Properties with filings in January: 16,716
Change from Dec. 2010: 4.08%
Change from Jan. 2010: -4.88%
Properties with filings in January: 16,716
Change from Dec. 2010: 4.08%
Change from Jan. 2010: -4.88%
5. Utah
Rate: One in every 265 households
Properties with filings in January: 3,601
Change from Dec. 2010: 8.11%
Change from Jan. 2010: -11.89%
Properties with filings in January: 3,601
Change from Dec. 2010: 8.11%
Change from Jan. 2010: -11.89%
4. Idaho
Rate: One in every 241 households
Properties with filings in January: 2,686
Change from Dec. 2010: 29.38%
Change from Jan. 2010: 3.19%
Properties with filings in January: 2,686
Change from Dec. 2010: 29.38%
Change from Jan. 2010: 3.19%
3. California
Rate: One in every 200 households
Properties with filings in January: 67,072
Change from Dec. 2010: 1.76%
Change from Jan. 2010: -6.61%
Brevard Christian Realty is dedicated to providing exceptional, honest service and value to home buyers and sellers based on Christian principles.
Contact us today at 321-684-9900
Properties with filings in January: 67,072
Change from Dec. 2010: 1.76%
Change from Jan. 2010: -6.61%
2. Arizona
Rate: One in every 175 households
Properties with filings in January: 15,757
Change from Dec 2010: 16.19%
Change from Jan. 2010: -25.14%
Properties with filings in January: 15,757
Change from Dec 2010: 16.19%
Change from Jan. 2010: -25.14%
1. Nevada
Rate: One in every 93 households
Properties with filings in January: 12,263
Change from Dec. 2010: -8.97%
Change from Jan. 2010: 3.45%
Properties with filings in January: 12,263
Change from Dec. 2010: -8.97%
Change from Jan. 2010: 3.45%
Brevard Christian Realty is dedicated to providing exceptional, honest service and value to home buyers and sellers based on Christian principles.
Contact us today at 321-684-9900
Wednesday, March 2, 2011
Sellers better off using a Realtor
EMERYVILLE, Calif. – March 1, 2011 – Real estate website HomeGain conducted a survey of 1,000 sellers to gauge their opinion on For Sale By Owner (FSBO) compared to using a Realtor.
Of the sellers surveyed, 83 percent used a Realtor while 17 percent attempted to sell their house on their own. Of those who used a Realtor, 59 percent sold their home; of FSBOs, only 39 percent successfully found a buyer and closed.
Of the successful sellers who used a Realtor, 88 percent said they would do so again; of all Realtor-represented sellers, 81 percent said they would use a Realtor again.
Of FSBOs who successfully sold their homes on their own, 71 percent would attempt to do so again.
However, the survey also found that nearly a quarter of FSBOs ultimately turned to a Realtor to help them sell their properties.
Source: RISMedia (02/25/11)
Of the sellers surveyed, 83 percent used a Realtor while 17 percent attempted to sell their house on their own. Of those who used a Realtor, 59 percent sold their home; of FSBOs, only 39 percent successfully found a buyer and closed.
Of the successful sellers who used a Realtor, 88 percent said they would do so again; of all Realtor-represented sellers, 81 percent said they would use a Realtor again.
Of FSBOs who successfully sold their homes on their own, 71 percent would attempt to do so again.
However, the survey also found that nearly a quarter of FSBOs ultimately turned to a Realtor to help them sell their properties.
Source: RISMedia (02/25/11)
Thursday, February 24, 2011
Existing-Home Sales Rise Again in January
Washington, DC, February 23, 2011 The uptrend in existing-home sales continues, with January sales rising for the third consecutive month with a pace that is now above year-ago levels, according to the National Association of REALTORS®.
Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 2.7 percent to a seasonally adjusted annual rate of 5.36 million in January from a downwardly revised 5.22 million in December, and are 5.3 percent above the 5.09 million level in January 2010. This is the first time in seven months that sales activity was higher than a year earlier.
Lawrence Yun, NAR chief economist, said the improvement is good but could be better. “The uptrend in home sales is consistent with improvements in the economy and jobs, which are helping boost consumer confidence,” Yun said. “The extremely favorable housing affordability conditions are a big factor, but buyers have been constrained by unnecessarily tight credit. As a result, there are abnormally high levels of all-cash purchases, along with rising investor activity.”
A parallel NAR practitioner survey2 shows first-time buyers purchased 29 percent of homes in January, down from 33 percent in December and 40 percent in January 2010 when an extended tax credit was in place.
Investors accounted for 23 percent of purchases in January, up from 20 percent in December and 17 percent in January 2010; the balance of sales were to repeat buyers. All-cash sales rose to 32 percent in January from 29 percent in December and 26 percent in January 2010.
“Increases in all-cash transactions, the investor market share and distressed home sales all go hand-in-hand. With tight credit standards, it’s not surprising to see so much activity where cash is king and investors are taking advantage of conditions to purchase undervalued homes,” Yun said.
All-cash purchases are at the highest level since NAR started measuring these purchases monthly in October 2008, when they accounted for 15 percent of the market. The average of all-cash deals was 20 percent in 2009, rising to 28 percent last year.
The national median existing-home price3 for all housing types was $158,800 in January, down 3.7 percent from January 2010. Distressed homes edged up to a 37 percent market share in January from 36 percent in December; it was 38 percent in January 2010.
NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said the median price is being dampened by unusual market factors. “Unprecedented levels of all-cash purchases, primarily of distressed homes sold at deep discounts, undoubtedly pulls the median price downward,” Phipps said. “Given the levels of inventory we see today, we believe that traditional homes in good condition have held their value.”
Total housing inventory at the end of January fell 5.1 percent to 3.38 million existing homes available for sale, which represents a 7.6-month supply4 at the current sales pace, down from an 8.2-month supply in December. The inventory supply is at the lowest level since December 2009 when there was a 7.3-month supply.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.76 percent in January from 4.71 percent in December; the rate was 5.03 percent in January 2010.
Single-family home sales rose 2.4 percent to a seasonally adjusted annual rate of 4.69 million in January from 4.58 million in December, and are 4.9 percent higher than the 4.47 million level in January 2010. The median existing single-family home price was $159,400 in January, down 2.7 percent from a year ago.
Existing condominium and co-op sales increased 4.7 percent to a seasonally adjusted annual rate of 670,000 in January from 640,000 in December, and are 7.9 percent above the 621,000-unit pace one year ago. The median existing condo price5 was $154,900 in January, which is 10.2 percent below January 2010.
Regionally, existing-home sales in the Northeast fell 4.6 percent to an annual pace of 830,000 in January from a spike in December and are 1.2 percent below January 2010. The median price in the Northeast was $236,500, which is 4.0 percent below a year ago.
Existing-home sales in the Midwest rose 1.8 percent in January to a level of 1.14 million and are 3.6 percent above a year ago. The median price in the Midwest was $126,300, which is 3.2 percent below January 2010.
In the South, existing-home sales increased 3.6 percent to an annual pace of 2.02 million in January and are 8.0 percent higher than January 2010. The median price in the South was $136,600, down 2.1 percent from a year ago.
Existing-home sales in the West rose 7.9 percent to an annual level of 1.37 million in January and are 7.0 percent above January 2010. The median price in the West was $193,200, down 5.7 percent from a year ago.
The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 2.7 percent to a seasonally adjusted annual rate of 5.36 million in January from a downwardly revised 5.22 million in December, and are 5.3 percent above the 5.09 million level in January 2010. This is the first time in seven months that sales activity was higher than a year earlier.
Lawrence Yun, NAR chief economist, said the improvement is good but could be better. “The uptrend in home sales is consistent with improvements in the economy and jobs, which are helping boost consumer confidence,” Yun said. “The extremely favorable housing affordability conditions are a big factor, but buyers have been constrained by unnecessarily tight credit. As a result, there are abnormally high levels of all-cash purchases, along with rising investor activity.”
A parallel NAR practitioner survey2 shows first-time buyers purchased 29 percent of homes in January, down from 33 percent in December and 40 percent in January 2010 when an extended tax credit was in place.
Investors accounted for 23 percent of purchases in January, up from 20 percent in December and 17 percent in January 2010; the balance of sales were to repeat buyers. All-cash sales rose to 32 percent in January from 29 percent in December and 26 percent in January 2010.
“Increases in all-cash transactions, the investor market share and distressed home sales all go hand-in-hand. With tight credit standards, it’s not surprising to see so much activity where cash is king and investors are taking advantage of conditions to purchase undervalued homes,” Yun said.
All-cash purchases are at the highest level since NAR started measuring these purchases monthly in October 2008, when they accounted for 15 percent of the market. The average of all-cash deals was 20 percent in 2009, rising to 28 percent last year.
The national median existing-home price3 for all housing types was $158,800 in January, down 3.7 percent from January 2010. Distressed homes edged up to a 37 percent market share in January from 36 percent in December; it was 38 percent in January 2010.
NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said the median price is being dampened by unusual market factors. “Unprecedented levels of all-cash purchases, primarily of distressed homes sold at deep discounts, undoubtedly pulls the median price downward,” Phipps said. “Given the levels of inventory we see today, we believe that traditional homes in good condition have held their value.”
Total housing inventory at the end of January fell 5.1 percent to 3.38 million existing homes available for sale, which represents a 7.6-month supply4 at the current sales pace, down from an 8.2-month supply in December. The inventory supply is at the lowest level since December 2009 when there was a 7.3-month supply.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.76 percent in January from 4.71 percent in December; the rate was 5.03 percent in January 2010.
Single-family home sales rose 2.4 percent to a seasonally adjusted annual rate of 4.69 million in January from 4.58 million in December, and are 4.9 percent higher than the 4.47 million level in January 2010. The median existing single-family home price was $159,400 in January, down 2.7 percent from a year ago.
Existing condominium and co-op sales increased 4.7 percent to a seasonally adjusted annual rate of 670,000 in January from 640,000 in December, and are 7.9 percent above the 621,000-unit pace one year ago. The median existing condo price5 was $154,900 in January, which is 10.2 percent below January 2010.
Regionally, existing-home sales in the Northeast fell 4.6 percent to an annual pace of 830,000 in January from a spike in December and are 1.2 percent below January 2010. The median price in the Northeast was $236,500, which is 4.0 percent below a year ago.
Existing-home sales in the Midwest rose 1.8 percent in January to a level of 1.14 million and are 3.6 percent above a year ago. The median price in the Midwest was $126,300, which is 3.2 percent below January 2010.
In the South, existing-home sales increased 3.6 percent to an annual pace of 2.02 million in January and are 8.0 percent higher than January 2010. The median price in the South was $136,600, down 2.1 percent from a year ago.
Existing-home sales in the West rose 7.9 percent to an annual level of 1.37 million in January and are 7.0 percent above January 2010. The median price in the West was $193,200, down 5.7 percent from a year ago.
The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
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Wednesday, February 23, 2011
Florida’s existing home, condo sales up in January
ORLANDO, Fla. – Feb. 23, 2011 – Florida’s existing home and existing condo sales rose in January, according to the latest housing data released by Florida Realtors®. Existing home sales increased 14 percent last month with a total of 12,151 homes sold statewide compared to 10,702 homes sold in January 2010, according to Florida Realtors. January’s statewide sales of existing condos rose 36 percent compared to the previous year’s sales figure.
Seventeen of Florida’s metropolitan statistical areas (MSAs) reported increased existing home sales in January; 16 MSAs had higher condo sales.
“Now is a great time for anyone thinking of buying a home in Florida to make that decision,” said 2011 Florida Realtors® President Patricia Fitzgerald, manager/broker-associate with Illustrated Properties in Hobe Sound and Mariner Sands Country Club in Stuart. “Mortgage rates are historically low, although they are beginning to tick up slightly as the economy shows signs of strengthening. Conditions remain very favorable for buyers, with a range of housing inventory and attractive prices.
“Homebuyers soon will have the opportunity to visit a number of open houses in their preferred locales all in a single weekend, as part of the second annual Florida Open House Weekend, March 26-27, 2011! From the Keys to the Panhandle, Realtors across Florida are participating in this statewide open house event sponsored by Florida Realtors. Consult a local Realtor® about Florida Open House Weekend, and find out more about qualification criteria and opportunities in your local housing market.”
Florida’s median sales price for existing homes last month was $122,200; a year ago, it was $131,000 for a 7 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 2010 was $169,300, down 0.2 percent from a year ago, according to NAR. In California, the statewide median resales price was $301,850 in December 2010; in Massachusetts, it was $285,950; in Maryland, it was $240,000; and in New York, it was $225,000.
According to NAR’s latest outlook, improving economic conditions and strong affordability are positive factors for the coming months. “Modest gains in the labor market and the improving economy are creating a more favorable backdrop for buyers, allowing them to take advantage of excellent housing affordability conditions,” said NAR Chief Economist Lawrence Yun. “Mortgage rates should rise only modestly in the months ahead, so we’ll continue to see a favorable environment for buyers with good credit.”
In Florida’s year-to-year comparison for condos, 6,681 units sold statewide last month compared to 4,916 units in January 2010 for an increase of 36 percent. The statewide existing condo median sales price last month was $79,400; in January 2010 it was $97,000 for an 18 percent decrease. The national median existing condo price was $165,000 in December 2010, according to NAR.
The interest rate for a 30-year fixed-rate mortgage averaged 4.76 percent in January, down from the 5.03 percent average during the same month a year earlier, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
© 2011 Florida Realtors®
Seventeen of Florida’s metropolitan statistical areas (MSAs) reported increased existing home sales in January; 16 MSAs had higher condo sales.
“Now is a great time for anyone thinking of buying a home in Florida to make that decision,” said 2011 Florida Realtors® President Patricia Fitzgerald, manager/broker-associate with Illustrated Properties in Hobe Sound and Mariner Sands Country Club in Stuart. “Mortgage rates are historically low, although they are beginning to tick up slightly as the economy shows signs of strengthening. Conditions remain very favorable for buyers, with a range of housing inventory and attractive prices.
“Homebuyers soon will have the opportunity to visit a number of open houses in their preferred locales all in a single weekend, as part of the second annual Florida Open House Weekend, March 26-27, 2011! From the Keys to the Panhandle, Realtors across Florida are participating in this statewide open house event sponsored by Florida Realtors. Consult a local Realtor® about Florida Open House Weekend, and find out more about qualification criteria and opportunities in your local housing market.”
Florida’s median sales price for existing homes last month was $122,200; a year ago, it was $131,000 for a 7 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 2010 was $169,300, down 0.2 percent from a year ago, according to NAR. In California, the statewide median resales price was $301,850 in December 2010; in Massachusetts, it was $285,950; in Maryland, it was $240,000; and in New York, it was $225,000.
According to NAR’s latest outlook, improving economic conditions and strong affordability are positive factors for the coming months. “Modest gains in the labor market and the improving economy are creating a more favorable backdrop for buyers, allowing them to take advantage of excellent housing affordability conditions,” said NAR Chief Economist Lawrence Yun. “Mortgage rates should rise only modestly in the months ahead, so we’ll continue to see a favorable environment for buyers with good credit.”
In Florida’s year-to-year comparison for condos, 6,681 units sold statewide last month compared to 4,916 units in January 2010 for an increase of 36 percent. The statewide existing condo median sales price last month was $79,400; in January 2010 it was $97,000 for an 18 percent decrease. The national median existing condo price was $165,000 in December 2010, according to NAR.
The interest rate for a 30-year fixed-rate mortgage averaged 4.76 percent in January, down from the 5.03 percent average during the same month a year earlier, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
© 2011 Florida Realtors®
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