Fla.’s housing market: Median prices continue to rise in Oct. 2016

ScottSorensonRealEstate.Com

 

 

ORLANDO, Fla. – Nov. 22, 2016 – Florida's housing marketreported higher median prices and fewer all-cash sales in October, according to the latest housing data released by Florida Realtors®. Shortfalls in inventory continued to impact sales statewide: Single-family home sales totaled 20,194, down 5.3% from October 2015, while townhouse-condo sales totaled 7,955, down 12.3 percent compared to a year ago.
"Florida's housing market continues to experience fewer sales of distressed properties and a restricted supply of homes for sale," said 2016 Florida Realtors®President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. "A shortage of new listings could impact home sales in the long run. When you look at the state's tight inventory of homes and a decline in the median time it takes for a home to sell (go under contract), it shows buyers are still in the market. However, they're not finding as many potential options as they'd like."
Home sellers continued to get more of their original asking price at the closing table in October: Sellers of existing single-family homes received 96.1 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.8 percent (median percentage).
The statewide median sales price for single-family existing homes last month was $220,000, up 11.7 percent from the previous year, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. Thestatewide median price for townhouse-condo properties in October was $161,000, up 8.1 percent over the year-ago figure.
In October, statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year for the 59th month in a row, Veissi noted. The median is the midpoint; half the homes sold for more, half for less.
Accordingto the National Association of Realtors®(NAR), thenational median sales price for existing single-family homes in September 2016 was $235,700, up 5.6 percent from the previous yearthe national median existing condo price was$222,100.In California, the statewide median sales price for single-family existing homes in September was $514,320; in Massachusetts, it was $350,000; in Maryland, it was $266,294; and in New York, it was $250,000.
Closed sales data reflected fewer short sales and cash-only sales in October: Short sales for single-family homes declined 39.4 percent while short sales for townhouse-condo properties dropped 37.2 percent. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
"It's hard to say at this point what may be behind the weaker sales numbers in October – trends are difficult to spot based on one-month's worth of data," said Florida Realtors®Chief Economist Brad O'Connor. "While it's tempting to consider the possibility that Hurricane Matthew or the imminent (at that time) presidential election played a major role in October's sales figures, let's remember the typical property sale that closed in October probably went under contract a month or two prior. And in the particular case of Matthew, the decline in October's sales did not uniformly appear to be any worse along the Atlantic coast than anywhere else in the state.
"Of course, a limited supply of for-sale homes, coupled with rising median prices, are two factors to consider when looking at closed sales data."
Inventory dipped to a 4.2-months' supply in October for single-family homes and was at a 5.9-months' supply for townhouse-condo properties, according to Florida Realtors.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.47 percent in October 2016, significantly lower than the 3.80 percent average recorded during the same month a year earlier.
For the full statewide housing activity reports, go to Florida Realtors Research and Statistics on floridarealtors.org. Realtors also have access to local market stats (password protected) on Florida Realtors’ website.
Related: NAR: Existing-home sales jump again in Oct.

Single Family Home Inventory Rises

 www.ScottSorensonRealEstate.com

Naples, Fla. (November 20, 2015) - Inventory rose 4 percent in the single-family home resale market during October according to the October 2015 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). This rise in single-family home inventory is needed to meet seasonal demand. Broker analysts reviewing the report said it displayed familiar trends that - historically speaking - will set the stage for what is expected to be a busy winter season in real estate.

"The single-family home market is continuing its pattern of stabilization," said Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc. "Except for Central Naples - where the single family home inventory decreased 17 percent - inventories in all other geographic areas rose, some dramatically."

Unlike the condominium market inventory, which dropped 7 percent, inventory in the single-family home market increased 4 percent overall in October from 2,128 single-family homes in October 2014 to 2,210 single-family homes in October 2015. In North Naples the the single-family home inventory rose 14 percent from 571 single-family homes in October 2014 to 650 single-family homes in October 2015. Single-family home inventory in the $500,000 to $1 million price segment rose 20 percent from 531 single-family homes in October 2014 to 637 single-family homes in October 2015.

John Steinwand, Broker and Principal at Naples Realty Services, Inc., said the report also showed a remarkable upswing in activity in the Immokalee/Ave Maria area. "Overall inventory in this area increased the highest percentage in this area compared to the other geographic areas we track. Single-family home inventory in the Immokalee/Ave Maria area rose 24 percent from 17 single-family homes in October 2014 to 21 single-family homes in October 2015. Despite the increase in inventory, this geographic area also had the highest increase in single-family home median closed price, going up 46 percent from a median closed price of $151,000 in the 12-months ending October 2014 to $220,000 in the 12-months ending October 2015."

"We are starting to see trends in the report that don't reflect the typical supply and demand scenario," said Carroll. "For example, the median closed price of single-family homes in the $2 million and above price segment rose 15 percent in the 12-months ending October 2015, yet the inventory in that same price segment rose 17 percent in the same time period, demonstrating an unexpected statistic."

To clarify, the term "median closed price" reflects a calculation wherein exactly half of the homes sold were above the median closed price and exactly half were below it. It does not reflect the average price of homes for sale.

Carroll, a 30-year Naples appraisal veteran, pointed out that supply and demand in the Coquina Sands, Moorings, and Park Shore neighborhoods is nearly balanced if you include new construction; while the same market sector including new construction in Old Naples is oversupplied, according to her data.

A balanced market occurs when there is between five to seven months of inventory. A seller's market occurs when there is less than five months of inventory. A buyer's market occurs when there is more than seven months of inventory.

Remarking on Carroll's insight, Rick Fioretti, NABOR® President Elect and Broker Associate with Berkshire Hathaway Home Services Florida Realty, said, "Buyers really need to listen closely to advice from their REALTOR® because REALTORS® know how to interpret this Market Report properly. For example, just because there was a 14 percent increase in overall median closed price in October doesn't mean every home's price increased 14 percent. The reality is that the median closed prices for most of the market [homes between $300,000 and $2 million] stayed about the same. With that said, the median closed price in the $300,000 and below price segment rose 11 percent and the median closed price in the $2 million and above price segment rose 14%. And while the overall inventory decreased 1 percent, every geographic area we track - with the exception of Central Naples - saw an increase in single-family home inventory from 9 percent to 21 percent in October 2015 compared to October 2014."

The NABOR® October 2015 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® October 2015 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

• Overall pending sales decreased 11 percent from 911 homes in October 2014 to 807 homes in October 2015.
• Overall closed sales increased 1 percent from 9,746 homes in the 12-months ending October 2014 to 9,828 in the 12-months ending October 2015.
• Overall median closed price increased 14 percent from $265,000 in the 12-months ending October 2014 to $302,000 in the 12-months ending October 2015.
• Overall median closed price for homes over $300,000 decreased 4 percent from $542,000 in the 12-months ending October 2014 to $520,000 in the 12-months ending October 2015.
• Overall inventory decreased 1 percent from 3,939 in October 2014 to 3,903 in October 2015.
• Single-family home inventory increased 4 percent from 2,128 single-family homes in October 2014 to 2,210 single-family homes in October 2015.
• Condominium inventory decreased 7 percent from 1,811 condominiums in October 2014 to 1,693 condominiums in October 2015.
• There is a 4.63 months supply of inventory.
• Average days on market increased 3 percent from 71 days in October 2014 to 73 days in October 2015.

A buyer interested in purchasing a single-family home near the beach will experience some challenges in the coming months, as pointed out by Coco Waldenmayer, a managing broker at John R. Wood Properties, who said, "Anyone looking for a single-family home under $2 million in the Naples Beach area will find most of the remaining properties are ready for tear down. However, there are condominiums available west of 41 in a broad range of prices."

Navigating through the complex Naples real estate market can be challenging. Buyers and sellers can benefit from the guidance of a local REALTOR® who is familiar with the current market. To ensure your next sale or purchase in the Naples area is a success, contact a REALTOR® on Naplesarea.com to guide you through your real estate transaction.

 

View October 2015 Market Statistics

To view the entire report, visit www.NaplesArea.com

Inland Home Sales Activity Outpaced Shoreline During Third Quarter

www.ScottSorensonRealEstate.com   Naples, Fla. (October 23, 2015) - Broker analysts were pleased when they reviewed the Third Quarter Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). The report showed positive trends during the summer months of 2015, with increased activity in neighborhoods located inland (east of 41) including South, East and Central Naples. Overall closed sales for single-family homes in the $1-million to $2-million price category outpaced all other price categories with a 79 percent increase (quarter over quarter) from 56 single-family homes sold in the Third Quarter of 2014 to 100 sold in the Third Quarter of 2015.   "The third quarter report confirmed to us that summer was strong for home sales," said Mike Hughes, NABOR® president, Vice President and General Manager of Downing-Frye Realty, referring to double-digit increases in closed sales for homes priced above $300,000. "I'm especially impressed at how well the high-end single-family home market did in the past three months because we typically see more people buy in this range between Christmas and Easter."   Geographically, activity was most remarkable during the Third Quarter in inland neighborhoods of Naples with activity in the South Naples condominium market leading the pack. According to a quarterly comparison of the Third Quarter of 2014 versus the Third Quarter of 2015, South Naples saw an 8 percent increase in pending sales for condominiums, a 9 percent increase in closed sales for condominiums, and a 24 percent increase in median closed price for condominiums.   Broker analysts agreed that a renewed interest in homes located east of U.S. 41 was not a surprise. "Sales of homes near the beach happened faster following the recession because of their prime location," said Pat Pitocchi, NABOR® media relations chairperson and corporate trainer at Downing-Frye Realty. "But the latest reports show us the housing market in all geographic areas within Naples has recovered as buyers are showing increased interest in our inland properties."   Bill Coffey, Broker Manager of Amerivest Realty Naples, agreed with Pitocchi, noting that the reports also showed a strong trend in how people are purchasing homes, cash versus financing. "There was an 11 percent decrease in cash sales from 66.8 percent in September 2014 to 55.6 percent in September 2015," said Coffey. "When the number of homes being financed continues to increase through the summer months, it's a good indicator that more full-time families are being attracted to the area."   Other inland areas that saw heightened activity during the Third Quarter were Central and East Naples. Of note, Central Naples (which includes neighborhoods between U.S. 41 and Collier Boulevard) saw a 24 percent increase (quarter over quarter) in overall median closed price from $185,000 in the Third Quarter of 2014 to $230,000 in the Third Quarter of 2015, and single-family homes in East Naples (identified as homes located east of Collier Boulevard) experienced a 29 percent increase in median closed price from $221,000 in the Third Quarter of 2014 to $285,000 in the Third Quarter of 2015.   NABOR also released its September 2015 Market Report which showed a 10 percent decrease in pending sales (homes under contract) from 829 homes pending in September 2014 to 749 in September 2015. According to Hughes, the dip in September's pending sales may have been tied to the stock market's erratic behavior, which tends to shake consumer confidence and cause people to delay big purchase decisions.   The Third Quarter and September 2015 Market Reports also uncovered a possible new trend in inventory as the number of homes for sale in the $300,000 and below price range was no longer the largest category of inventory as in the past. As pointed out by Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty, "Out of the 945 homes for sale under $300,000, only 291 are single-family homes. However, there are 505 single-family homes for sale in the $300,000 to $500,000 price category, and 598 single-family homes for sale in the $500,000 to $1 million price category. Due to the increase in home values, many homes previously listed in the lower price categories have crept up to the next higher price category, which is referred to as bracket creep."   The NABOR® Third Quarter 2015 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® Third Quarter 2015 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:  Overall pending sales decreased 1 percent from 2,304 homes in the Third Quarter of 2014 to 2,270 homes in the Third Quarter of 2015. Overall closed sales increased 3 percent from 9,658 in the 12-months ending the Third Quarter of 2014 to 9,956 in the 12-months ending the Third Quarter of 2015. Overall median closed price increased 15 percent from $262,000 in the 12-months ending the Third Quarter of 2014 to $300,000 in the 12-months ending the Third Quarter of 2015. Overall median closed price for homes over $300,000 decreased 5 percent from $545,000 in the 12-months ending the Third Quarter of 2014 to $520,000 in the 12-months ending the Third Quarter of 2015. Overall inventory decreased 3 percent from 3,702 in the Third Quarter of 2014 to 3,606 in the Third Quarter of 2015. There is a 4.24 months supply of inventory. Average days on market decreased 1 percent from 77 days in the Third Quarter of 2014 to 78 days in the Third Quarter of 2015.  The NABOR® September 2015 Market Report was also released and reflected these overall (single-family and condominium) findings:   Overall pending sales decreased 10 percent from 829 homes in September 2014 to 749 homes in September 2015. Overall closed sales increased 3 percent from 9,658 homes in the 12-months ending September 2015 to 9,956 homes in the 12-months ending September 2015. Overall median closed price increased 15 percent from $262,000 in the 12-months ending September 2014 to $300,000 in the 12-months ending September 2015. Overall inventory decreased 3 percent from 3,702 in September 2014 to 3,606 in September 2015. Average Days on market increased 7 percent from 74 days in September 2014 to 79 days in September 2015. "The third quarter report also showed us that a lot more people purchased single-family homes above $1 million this summer than in the same quarter last year," said Steve Barker, Advising Broker for Equity Realty. Indeed, the Third Quarter Market Report reflected the median closed price for single-family homes in the $1 million and above price category decreased 2 percent from $1,350,000 in the Third Quarter of 2014 to $1,325,000 in the Third Quarter of 2015, which may have spurred sales.   Hughes remarked that, "Historically, we see an upswing in the number of homes that go up for sale in October in anticipation of seasonal buyers. It will be interesting to see how this plays out because it appears the increased demand for single-family homes from full-time residents has the potential to keep absorbing our existing inventory."   To ensure your next sale or purchase in the Naples area is a success, contact a REALTOR® on Naplesarea.com to guide you through the process.    The Naples Area Board of REALTORS® (NABOR®) is an established organization (Chartered in 1949) whose members have a positive and progressive impact on the Naples Community. NABOR® is a local board of REALTORS® and real estate professionals with a legacy of nearly 60 years serving 5,000 plus members. NABOR® is a member of the Florida Realtors and the National Association of REALTORS®, which is the largest association in the United States with more than 1.3 million members and over 1,400 local board of REALTORS® nationwide. NABOR® is structured to provide programs and services to its membership through various committees and the NABOR® Board of Directors, all of whose members are non-paid volunteers.    The term REALTOR® is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribe to its strict Code of Ethics.   View 3Q 2015 Market Statistics View September 2015 Market Statistics    To view the entire report, visit www.NaplesArea.com

Fla.’s single-family home sales rose 21.8% in July

www.scottsorensonrealestate.com

 

 

NAR's national home sales

Total existing home sales up 2% despite stubbornly low inventory

ORLANDO, Fla. – Aug. 20, 2015 – Florida's housing market had more closed sales, higher median prices, more pending sales and a tighter inventory in July, according to the latest housing data released by Florida Realtors^®. Closed sales of existing single-family homes statewide totaled 26,916 last month, up 21.8 percent over July 2014.
"Homebuyers and sellers are benefiting from the positive momentum of Florida's housing market," says 2015 Florida Realtors President Andrew Barbar, a broker with Keller Williams Realty Services in Boca Raton. "July's completed or closed sales for single-family homes and townhouse-condo properties both showed double-digit gains over the previous year. Meanwhile median prices keep steadily rising: July marked the 44th consecutive month that median sales prices increased year-over-year for both single-family homes and townhouse-condo properties.
Statewide, new pending sales for single-family homes in July rose 6.5 percent year-over-year, while new townhouse-condo pending sales rose 3.8 percent."
The statewide median sales price for single-family existing homes last month was $199,900, up 8.1 percent from the previous year, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in July was $150,000, up 9.1 percent 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 June 2015 was $237,700, up 6.6 percent from the previous year; the national median existing condo price was $226,500. In California, the statewide median sales price for single-family existing homes in June was $489,560; in Massachusetts, it was $364,900; in Maryland, it was $281,031; and in New York, it was $237,301.
Looking at Florida's townhouse-condo market, statewide closed sales rose last month with a total of 10,235, up 13.9 percent compared to July 2014.
The closed sales data reflected fewer short sales in July: Short sales for townhouse-condo properties declined 39.3 percent while short sales for single-family homes dropped 31.2 percent. Closed sales typically occur 30 to 90 days after sales contracts are written.
"The Florida real estate market continues to boom along, fueled by job growth, immigration and fear of higher interest rates," says Florida Realtors Chief Economist Dr. John Tuccillo. "Tight inventories are beginning to get worrisome, even in price tiers where they had not been a problem. But we're not in any great danger of a runaway market because mortgages are still difficult to get for most households, keeping demand down."
Inventory continues to tighten, with a 4.5-months' supply in July for single-family homes and a 5.3-months' supply for townhouse-condo properties. Most analysts consider a 6-month supply of inventory as the benchmark for a balanced market between buyers and sellers.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.05 percent in July 2015, down from the 4.13 percent average recorded during the same month a year earlier.

2Q Report Indicates Housing Market is On Pace to Be a Great Year

Naples, Fla. (July 17, 2015) - According to the Second Quarter 2015 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), 60 percent of the market experienced inventory growth, and overall sales activity remained on pace with activity experienced in the second quarter of 2014. The report also indicated a 9 percent increase in pending sales (quarter over quarter) for homes priced above $300,000. These factors and other statistics in the 2Q 2015 Market Report have led broker analysts to conclude another great year is very likely.

 

"In this quarter last year, 44 percent of pending sales [homes under contract] were for homes in the price category over $300,000," said Brett Brown, a Broker/Salesperson for Premier Sotheby's International Realty. "The current report shows us that the number of pending sales has increased to 53 percent of the market."

 

Brown pointed out that from 2010 to 2012 80 percent of all pending sales were composed of homes under $300,000. But second quarter reports for 2014 and 2015 identify a shift took place in pending sales activity to homes at higher price points within the market. And while inventory in the under $300,000 price category decreased 24 percent in the 2Q of 2015 (the same rate as in the 1Q of 2015); this price segment no longer makes up the majority of the market's inventory.

 

Broker analysts contend that the market was quite different 10 years ago with a lot of flipping and loose financing going on. But the consumer and industry setting is different today. The 2Q 2015 Market Report revealed where the differences occurred like median closed price, where prices for homes between $300,000 and $2 million leveled out increasing or decreasing 0 to 2 percent. Other differences revealed in the 2Q Report are a gradual increase in financed homes to 38.3 percent of the market in June 2015, and a non-traditional market (short sales and foreclosures) that is dwindling at just 7 percent of the market.   

 

"Prior to 2014, prices in all segments were going up," said Tom Bringardner, Jr., President/CEO of Premier Commercial. "But a side-by-side comparison of overall activity for the first six months of last year to this year signifies a different climate where the market has reached stabilization."

 

According to the 2Q 2015 Market Report, the Naples area experienced a 14 percent increase in overall median closed price from $255,000 in the 12-months ending 2Q of 2014 to $290,000 in the 12-months ending 2Q of 2015. Yet this increase was driven by increases at both ends of the market spectrum during this time period; i.e., an 11 percent increase in homes under $300,000, and a 15 percent increase in homes $2M and above. Incidentally, the median closed price for homes in price categories over $300,000 and under $2M decreased 1 percent.

 

Pockets of market highs and lows will continue to appear in the area, as demand and location continue to be major market influencers. For example, the report showed an 83 percent increase in inventory for condominiums in the $2M and above price category from 29 units in the 2Q of 2014 to 53 units in the 2Q of 2015, and a 23 percent decrease in condominium inventory in the Naples Beach area from 476 units in the 2Q of 2014 to 368 units in the 2Q of 2015.

 

Inventory for single-family homes continued to rise in the 2Q of 2015 with a 9 percent increase from 1,964 single-family homes in the 2Q of 2014 to 2,133 single-family homes in the 2Q of 2015. Whereas the condominium market saw an 11 percent decrease in inventory for 2Q 2015 from 1,759 condominiums in the 2Q 2014 to 1,565 condominiums in the 2Q of 2015.

 

The NABOR® 2Q 2015 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® 2Q 2015 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

• Overall pending sales decreased 4 percent from 2,949 in the 2Q of 2014 to 2,843 in the 2Q of 2015.
• Overall closed sales remained flat with no increase or decrease reported in the 2Q of 2015.
• Closed sales for condominiums in the $300,000 to $500,000 price category increased 38 percent from 682 in the 2Q of 2014 to 938 in the 2Q of 2015.
• Overall median closed price increased 14 percent from $255,000 in the 12-months ending 2Q of 2014 to $290,000 in the 12-months ending 2Q of 2015.
• Overall inventory decreased 1 percent from 3,723 homes in the 2Q of 2014 to 3,698 homes in the 2Q of 2015.
• Overall inventory for homes in the under $300,000 price category decreased 24 percent from 1,366 homes in the 2Q of 2014 to 1,036 homes in the 2Q of 2015.
• Inventory for single-family homes in the $500,000 to $1M price category increased 32 percent from 456 single-family homes in the 2Q of 2014 to 604 single-family homes in the 2Q of 2015.
• Average days on market decreased 20 percent from 94 days in the 2Q of 2014 to 75 days in the 2Q of 2015.  

The NABOR® June 2015 Market Report was also released and reflected these overall (single-family and condominium) findings: 

• Overall pending sales increased 5 percent from 840 homes in June 2014 to 882 homes in June 2015.
• Overall closed sales remained flat with no increase or decrease reported in the 12-months ending June 2015.
• Overall median closed price increased 14 percent from $255,000 in the 12-months ending June 2014 to $290,000 in the 12-months ending June 2015.
• Overall inventory decreased 1 percent from 3,723 homes in June 2014 to 3,698 homes in June 2015.
• Average Days on market decreased 22 percent from 94 days in June 2014 to 73 days in June 2015.

"Overall inventory is almost the same number as it was this time last year. That is amazing when you consider the fact that we have had 9,850 closings over the last twelve months. Overall, this tells you that the properties are being listed almost as fast as we are selling them. Certainly we would like to see more listings come on the market than the 3,698 properties that are currently listed," said Mike Hughes NABOR President, Vice President and General Manager of Downing-Frye Realty, Inc. "If there is a perception that inventory is dramatically shrinking, the 2Q Market Report shows us that this observation is unfounded."

 

"I saw a lot more locals selling and buying homes in the second quarter of 2015," said Steve Barker, Advising Broker for Equity Realty, who added that market conditions are right for this type of transition. "People are no longer underwater in their homes and are confident it's a good time to sell and move into a new community."

 

View June 2015 Market Statistics

View 2Q 2015 Market Statistics

  

Millennials getting ready to buy in next 2-4 years ( 50 Millions purchases)

www.ScottSorensonRealEstate.com

 

WASHINGTON – May 15, 2015 – Seventy percent of millennials who do not yet own a home expect to become homeowners by 2020, and most expect to make the downpayment with money they've saved, according to a survey of 1,270 members of millennials (age 19 to 36) conducted by the Urban Land Institute.
The report finds that contrary to popular belief, most millennials aren't settling into downtowns of large cities; instead, they're living in less centrally located, more affordable neighborhoods, "making ends meet with jobs for which many feel overqualified and living with parents or roommates to save money," according to the report. "Still, despite their current lifestyle constraints, most are optimistic about the odds for improving their housing and financial circumstances in the years ahead."
There are almost 79 million millennials. It's the largest generation in U.S. history, even larger than the Baby Boomers.
The survey found that many millennials still rent, paying a median rent of $925, with the majority living in city neighborhoods or in the suburbs, and only 13 percent living in or near downtowns. Nearly a quarter of those surveyed are still living at home with their parents or other family members.
Millennials say they prefer to live in neighborhoods with urban characteristics, such as those that feature walkability, transportation alternatives, and easy access to shopping and entertainment.
Millennials "want to live where it's easy to have fun with friends and family, whether in the suburbs or closer in," says Leanne Lachman, president of Lachman Associates LLC in New York City, the report's author. "Their desire for an urban lifestyle suggests that the current trend of urbanizing suburbs will present lucrative opportunities for the development community for decades to come. This is a generation that places a high value on work-life balance and flexibility. They will switch housing and jobs as frequently as necessary to improve their quality of life."
The survey found that 45 percent of millennial respondents moved at least twice in the past three years – "which reflects the high mobility of the generation," the report notes.
About 26 percent of the millennials surveyed currently own homes, with the majority of those falling between the ages of 31 to 36 years of age. Of those who do own, less than half (46 percent) say they purchased a home because they believe that owning is a good long-term investment; 41 percent said it offers stability; and 40 percent said they wanted more privacy and space.
Sixty-two percent say they're very satisfied with homeownership, and 64 percent listed the stability and safety of their neighborhood as the most positive feature of their home's location.

Fla.’s housing market continues growth in March

ScottSorensonRealEstate.Com

 

 

Related:

NAR: Existing-home sales spike in March.
 

ORLANDO, Fla. – April 22, 2015 – Florida's housing market continued its positive track in March with more closed sales, higher median prices, increased pending sales and new listings, according to the latest housing data released by Florida Realtors®.
Closed sales of existing single-family homes statewide totaled 24,811 last month, up 24.6 percent in a year-to-year comparison.

"Positive growth in Florida's housing market is encouraging sellers and buyers," says 2015 Florida Realtors President Andrew Barbar, a broker with Keller Williams Realty Services in Boca Raton. "Inventories for existing single-family homes and for townhouse-condo properties remain in a stable range with a 5 to 6 months' supply.

"On the buyers' side, new pending sales for existing single-family homes in March increased 12.9 percent year-over-year, while pending sales for townhouse-condo units increased 1.4 percent. On the sellers' side, new listings for single-family homes rose 8.6 percent year-over-year and new townhouse-condo listings rose 5.5 percent."

March marked the 40th consecutive month that statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year.

"Strong price growth has helped many Florida homeowners rebuild home equity, but it can also pose a challenge for first-time buyers hoping to close on their dream home before rates rise," Barbar adds.
The statewide median sales price for single-family existing homes last month was $190,000, up 9.2 percent from the previous year, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in March was $152,000, up 8.6 percent 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 February 2015 was $204,200, up 8.2 percent from the previous year; the national median existing condo price was $190,200.

Looking at Florida's townhouse-condo market, statewide closed sales totaled 11,083 last month, up 13.7 percent compared to March 2014.

The closed sales data reflected fewer short sales in March: Short sales for townhouse-condo properties declined 36.9 percent while short sales for single-family homes dropped 30.5 percent. Closed sales typically occur 30 to 90 days after sales contracts are written.

"The housing market continues to thrive on the growing Florida economy – jobs are up and so are sales," says Florida Realtors Chief Economist Dr. John Tuccillo. "The continued fall of cash sales as a percentage of total sales suggests that demand is increasingly coming from household owner-occupants, a trend that bodes well for market stability. Days on the market are down, as is inventory, particularly at the low end of the market. This points to a potential sweet spot for homebuilders.
"If there is a concern in the market, it lies in the upper-middle price ranges, where inventories and time on the market are up even though sales growth is strong," adds Tuccillo. "This will bear watching over time."

Inventory was at a 5.1-months' supply in March for single-family homes and at a 6.1-months' supply for townhouse-condo properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.77 percent in March 2015, down from the 4.34 percent average recorded during the same month a year earlier.
To see the full statewide housing activity reports, go to Florida Realtors' website under "Research." Association members (login required) also have access to local data specific to their market.