High-Debt Home Borrowers May No Longer Qualify in 2021

From Florida Realtors

The “Qualified Mortgage Patch” helps Fannie- and Freddie-backed lenders qualify people with higher debt-to-income ratios, but it expires, at least for now, in Jan. 2021.

WASHINGTON – The Consumer Financial Protection Bureau (CFPB) issued an Advance Notice of Proposed Rulemaking (ANPR) relating to its QM Rule, commonly called the qualified mortgage patch. Should the QM Rule expire in January 2021, home borrowers with enough debt to exceed the QM debt-to-income test will likely be turned down for a loan.

The QM patch was designed as a temporary provision applicable to certain mortgage loans eligible for purchase or guarantee by the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac. Fannie and Freddie back loans for more than 50% of all U.S. mortgages.

“On Thursday, members of NAR’s (National Association of Realtors®) policy staff, Joe Ventrone and Ken Fears, were briefed by Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger on the agency’s review of the Qualified Mortgage Patch,” says NAR President John Smaby.

“The QM patch was intended as a temporary measure to prevent turmoil in the mortgage and real estate market as the CFPB implemented the Ability to Repay rule,” Smaby explains. “Analysts estimate that as much as 30% of mortgages for home purchases fall into this market segment, and its disruption could result in higher costs and/or reduced access to mortgages for otherwise creditworthy homebuyers. This, in turn, could send ripples throughout the U.S. housing market.

Through the ANPR, the CFPB will solicit comments on possible amendments to the rule, including whether to revise Regulation Z’s definition of a qualified mortgage in light of the GSE Patch’s scheduled expiration. The ANPR seeks information and comment on whether the definition of qualified mortgage should retain a direct measure of a consumer’s personal finances (for example, debt-to-income ratio), and whether that definition should include an alternative method for assessing financial capacity. 

“The national mortgage market readjusting away from the patch can facilitate a more transparent, level playing field that ultimately benefits consumers through stronger consumer protection,” says CFPB Director Kathleen L. Kraninger. “We want to hear all perspectives on how to move beyond the GSE Patch, the impact on credit, the role of the private mortgage market, and possible modifications to the definition of qualified mortgages and the rules governing the documentation of debt and income. The Bureau is committed to ensuring a smooth and orderly mortgage market throughout its consideration of these issues and any resulting transition away from the GSE Patch.”

“Going forward, NAR will continue to advocate for an extension of the patch and a permanent solution that will prevent disruption as we work with CFPB to secure stability in the housing market,” says Smaby.

A copy of the ANPR with instructions on how to submit a comment are posted online.

© 2019 Florida Realtors®

NAR: U.S. Existing-Home Sales Falter 1.7% in June

“Imbalance persists for mid-to-lower priced homes with solid demand and insufficient supply, which is consequently pushing up home prices,” says NAR economist.

WASHINGTON – Existing-home sales weakened in June, and total sales saw a small decline after a previous month of gains, according to the National Association of Realtors® (NAR).

While two of the four major U.S. regions recorded minor sales jumps, the other two – the South and the West – experienced greater declines last month.

Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-op – dropped 1.7% from May to a seasonally adjusted annual rate of 5.27 million in June. Sales as a whole are down 2.2% from a year ago (5.39 million in June 2018).

“Home sales are running at a pace similar to 2015 levels – even with exceptionally low mortgage rates, a record number of jobs and a record high net worth in the country,” says Lawrence Yun, NAR’s chief economist. Yun says the nation is in the midst of a housing shortage and much more inventory is needed.

“Imbalance persists for mid-to-lower priced homes with solid demand and insufficient supply, which is consequently pushing up home prices,” he adds.

Yun says other factors could also be contributing to the low number of sales.

“Either a strong pent-up demand will show in the upcoming months, or there is a lack of confidence that is keeping buyers from this major expenditure,” he says. “It’s too soon to know how much of a pullback is related to the reduction in the homeowner tax incentive.”

The median existing-home pricefor all housing types in June reached an all-time high of $285,700, up 4.3% from June 2018 ($273,800). June’s price increase marks the 88th straight month of year-over-year gains.

Total housing inventory at the end of June increased to 1.93 million, up from 1.91 million existing-homes available for sale in May, but unchanged from the level of one year ago. Unsold inventory is at a 4.4-month supply at the current sales pace, up from the 4.3-month supply recorded in both May and in June 2018.

Properties typically remained on the market for 27 days in June, up from 26 days in May and in June of 2018 – but 56% of homes sold in June were on the market for less than a month.

According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 3.80% in June, down from 4.07% in May. The average commitment rate across all of 2018 was 4.54%.

“Historically, these rates are incredibly attractive,” says NAR President John Smaby. “Securing and locking in on a mortgage now – given the current, favorable conditions – is a decision that will pay off for years to come.”

First-time buyers were responsible for 35% of sales in June, up from 32% the month prior and up from the 31% recorded in June 2018. NAR’s 2018 Profile of Home Buyers and Sellers – released in late 20184 – revealed that the annual share of first-time buyers was 33%.

As the share of first-time buyers rose, individual investors, who account for many cash sales, purchased 10% of homes in June, down from 13% recorded in both May 2019 and June 2018. All-cash sales accounted for 16% of transactions in June, down from May and a year ago (19% and 22%, respectively).

Distressed sales – foreclosures and short sales – represented 2% of sales in June, unchanged from May but down from 3% in June 2018. Less than 1% of June 2019 sales were short sales.

Regional breakdown
Compared to May, June existing-home sales rose slightly in the Northeast and Midwest but decreased in the South and West regions. Sales in all regions were still lower compared to one year ago, with the most significant declines in the Northeast and West. Median home prices rose in all regions, with the highest gains in the Midwest and South.

June existing-home sale numbers in the Northeast increased 1.5% to an annual rate of 680,000, a 4.2% decline from a year ago. The median price in the Northeast was $321,200, up 4.8% from June 2018.

In the Midwest, existing-home sales inched up 1.6% to an annual rate of 1.25 million, which is a 1.6% decline from June 2018. The median price in the Midwest was $230,400, a 6.7% jump up from a year ago.

Existing-home sales in the South fell 3.4% to an annual rate of 2.25 million in June, down 0.4% from a year ago. The median price in the South was $248,600, up 4.9% from one year ago.

Existing-home sales in the West fell 3.5% to an annual rate of 1.09 million in June, 5.2% below a year ago. The median price in the West was $410,400, up 2.3% from June 2018.

Single-family and condo/co-op sales
Single-family home sales sat at a seasonally adjusted annual rate of 4.69 million in June, down from 4.76 million in May and down 1.7% from 4.77 million a year ago. The median existing single-family home price was $288,900 in June, up 4.5% from June 2018.

Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 580,000 units in June, down 3.3% from the prior month and down 6.5% from a year ago. The median existing condo price was $260,100 in June, which is up 2.8% from a year ago.

“Condos are typically more affordable than a detached single-family home, but only a small fraction of condos are FHA-certified,” says Yun.

© 2019 Florida Realtors®

Fla.’s Housing Market: Median Prices, Inventory Up in June

Florida Realtors Pres. Sain: Fla.’s home sales cooled slightly in June though median prices rose. Year-over-year, single-family median prices up 3.8% to $270,000, sales were down 1.9%. Condo median prices up 2.6% to $194,900, sales were down 9.4%.

ORLANDO, Fla. – In June, Florida’s housing market reported rising median prices and increased inventory, including pending inventory and active listings inventory compared to a year ago, according to the latest housing data released by Florida Realtors®. Sales of single-family homes statewide totaled 27,283 last month, down 1.9% from June 2018.

“Sales cooled slightly in June, following what was a record-breaking month for home sales in Florida in May,”says 2019 Florida Realtors President Eric Sain, a Realtor and district sales manager with Illustrated Properties in Palm Beach.“However, inventory levels continued to improve in June, which helps ease the pressure of rising home prices and offers more options for potential homebuyers who may have been waiting to enter the market. Florida’s single-family inventory (active listings) last month rose 2% over June 2018, while condo-townhouse inventory increased 4.6%. Meanwhile, pending inventory for existing single-family homes was up 4.9% year-over-year, while pending inventory for existing condo-townhouse properties was up 2.5%.

“It may be difficult for a buyer or seller to stay on top of changing conditions in local housing markets, but a local Realtor will put his or her knowledge and expertise to work for you.”

Pending inventory is the number of listed properties that were under contract at the end of the month or data collection period.

June’s statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year for 90 months in a row. The statewide median sales price for single-family existing homes was $270,000, up 3.8% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $194,900, up 2.6% 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 May 2019 was $280,200, up 4.6% from the previous year; the national median existing condo price was $257,100.In California, the statewide median sales price for single-family existing homes in May was $611,190; in Massachusetts, it was $420,000; in Maryland, it was $312,500; and in New York, it was $273,200.

Looking at Florida’s condo-townhouse market in June, statewide closed sales totaled 10,094, down 9.4% compared to a year ago. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

“Sales of existing homes in Florida eases a little in June,”said Florida Realtors Chief Economist Dr. Brad O’Connor. “Single-family home sales were down compared to last June in 14 of the state’s 22 metro areas, falling by slightly less than 2% on a statewide basis. Year-to-date, however, single family home sales are still up by 2.1%.

“The latest figures on inventory levels for June suggest that the recent reprieve in our longer-term single-family home shortage may be coming to an end. Year-over-year differences in inventory levels have been declining since the end of January, when there were almost 14% more homes listed than a year prior. As of the end of June, however, this gap narrowed to just 2%. It’s possible that at the end of July, in fact, we might just be back right where we started a year ago.”

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.80% in June 2019, down from the 4.57% averaged during the same month a year earlier.

To see the full statewide housing activity reports, go to Florida Realtors Research & Statistics section on floridarealtors.org. Realtors also have access to local market stats (password protected) on Florida Realtors’ website.

© 2019 Florida Realtors®

Realogy and Amazon Announce Co-Marketing Agreement

TurnKey, an “Amazon Move-In Benefit,” provides $1,000 to $5,000 of complimentary Amazon home services and fully-installed smart home products courtesy of Realogy.

MADISON, N.J. – Realogy Holdings Corp. announced a collaboration with Amazon to launch TurnKey, a new homebuying program. The program is currently available in 15 U.S. markets, including Orlando and Tampa.

It’s also offered in San Francisco, Chicago, Dallas/Fort Worth, Seattle, Phoenix, Houston, Atlanta, Denver, Minneapolis/St. Paul, Charlotte, Sacramento and Washington, D.C. Expansion is likely but not announced.

“The Amazon move-in benefit will enable homebuyers to adapt the offering to their needs – from help assembling furniture, to assisting with smart home device set up, to a deep clean and more,” says Pat Bigatel, director, Amazon home services.

Amazon calls TurnKey an “easier and more rewarding homebuying experience” that offers Amazon customers the following benefits:

• Real estate agent recommendations: It says that homebuyers will be connected to an agent “according to the homebuyer’s profile,” and that the recommended agent will be “affiliated with one of Realogy’s trusted residential real estate brands … based on their exceptional customer service record and local market expertise.”

• Free Amazon move-in benefit:After closing, Amazon will connect TurnKey buyers with services and experts in their area to perform upgrades, with the value of the upgrade based on the purchase price of the home. At the base level of homes valued from $150,000 to $399,000, buyers get a $450 credit toward moving expenses and three Amazon-brand smart-home products. Homes worth $400,000 to $699,000 get a package worth $2,500 ($1,000 for moving expenses and six various Amazon smart-home products). Homes valued over $700,000 get a $5,000 package ($1,500 toward moving expenses and 26 various smart-home products).

© 2019 Florida Realtors®

What Are You Willing to Do to Own a Home?

Survey: Almost half of Americans saving to buy or renovate a home took a side job; slightly more than a third have done other things, such as selling stuff online.

SAN FRANCISCO – According to a Wells Fargo survey, Americans are willing to do what it takes to make their homeownership goals a reality – such as taking on a side job, cutting expenses or considering a less-expensive location.

The Wells Fargo 2019 “How America Views Homeownership” survey was conducted by The Harris Poll April 17–29, 2019, among 1,004 U.S. adults 21 and older. Key findings include:

• Nearly half of Americans who are saving to buy or renovate a home (49%) have done work outside their primary job to supplement their income to pay for it, such as selling items online (37%), starting a small side business (21%), driving for a rideshare company (18%) and dog sitting/walking (16%).

• Nearly eight in 10 non-homeowners (78%) say they would be willing to accept their second choice of a city or town in order to afford their own home.

• Nearly three quarters of non-homeowners (74%) say they would be willing to buy a smaller home with fewer amenities.

• Over seven in 10 Americans (72%) say they would give up something to save for a down payment, including dining out (44%), going to events (43%) and vacations (38%).

• Millennials who don’t own homes are even more willing to make trade-offs, such as considering a second choice of city (85%), and millennials as a whole say they are more willing to take steps – such as side jobs (70%) or cutting expenses (83%) – in order to save.

Homeownership is still the goal

Even in the wake of the Great Recession and current affordability concerns, Americans see homeownership as a clear metaphor for adulthood and achieving the American Dream. For most Americans (70%), owning a home is seen as a sign that someone is a “successful adult,” on par with having a career (73%). In fact, homeownership is much more widely equated with being a successful adult (more than twice as much) than having children (34%) or getting married (32%).

Nearly nine in 10 adults (89%) say the benefits of homeownership outweigh any drawbacks. Although most current homeowners (69%) had to make hard sacrifices to afford their home, nearly all say buying their home was worth all the sacrifice to save for it (90%). If they had to do it over again, they say they still would choose to buy their home rather than rent (93%). In fact, nearly all homeowners (95%) say that, in the long run, owning a home provides more “bang for your buck” than renting.

Millennials share this commitment: 95% of millennial homeowners say it was worth the sacrifice, and 86% of millennials as a whole say the benefits of homeownership outweigh the drawbacks.

Downpayment is the big thing

The No. 1 hurdle to buying for Americans is saving for the downpayment. More than one in four (27%) say it’s the biggest barrier, and it’s even more pronounced for millennials at 38%.

Americans also have misperceptions about what it takes to increase their opportunity to get financing for a home, citing “perfect” credit (71%), being debt-free (65%), “having a lot of money in the bank” (59%) and having no student debt (38%). In fact, 31% of homeowners say they never thought they would be able to purchase their own home, and that number was even higher (54%) for millennial homeowners.

© 2019 Florida Realtors®

Mortgage Rates Head Up Again – 30-Year At 3.81%

By Florida Realtors

Freddie Mac economist: Continued improvement in consumer spending and optimism over an expected Fed cut of short-term interest rates helped spark the increase.  

MCLEAN, Va. – After three weeks of holding fairly steady, average mortgage rates ticked up this week, according to Freddie Mac’s weekly report.

“Mortgage rates moved higher after remaining at around the same level for about three weeks,” says Sam Khater, Freddie Mac’s chief economist. “The rise in rates was driven by continued improvement in consumer spending and partly due to optimism around a forthcoming cut in short term interest rates, which should provide support for business and investor sentiment.”

Even though rates moved slightly higher, “homebuyers are taking advantage of the multi-year low rates in droves, which is evident in the consistently higher refinance and purchase application volumes,” Khater adds. “The improvement in housing demand should provide sufficient momentum for the housing market and economy during the rest of the year.”  

Weekly mortgage rate changes

• The 30-year fixed-rate mortgage (FRM) averaged 3.81% with an average 0.6 point, up from last week when it averaged 3.75 percent. A year ago, the 30-year FRM averaged 4.52 percent. 

• The 15-year FRM averaged 3.23% with an average 0.5 point, up from last week when it averaged 3.22 percent. A year ago, the 15-year FRM averaged 4.0%. 

• The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.48% with an average 0.4 point, up from last week when it averaged 3.46 percent. A year ago, the 5-year ARM averaged 3.87%.

© 2019 Florida Realtors®

Builder Confidence Up a Bit in July

NAHB’s index rose one point to 65. It’s been in the low- to mid-60s for six months – and any number higher than 50 is considered optimistic.

WASHINGTON – Builder confidence in the market for newly-built single-family homes rose one point to 65 in July, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). It’s the sixth consecutive month that sentiment levels have hovered in the low- to mid-60s.

“Builders report solid demand for single-family homes,” says NAHB Chairman Greg Ugalde. “However, they continue to grapple with labor shortages, a dearth of buildable lots and rising construction costs that are making it increasingly challenging to build homes at affordable price points relative to buyer incomes.”

“Even as builders try to rein in costs, home prices continue to outpace incomes,” adds NAHB Chief Economist Robert Dietz. “The current low mortgage interest rate environment should be getting more buyers off the sidelines, but they remain hesitant due to affordability concerns. Still, attractive rates should help spur new home purchases in large metro suburban markets, where approximately one-third of new construction takes place.”

Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

All the HMI indices inched higher in July:

• The index measuring current sales conditions rose one point to 72

• The component gauging expectations in the next six months moved a single point higher to 71

• The metric charting buyer traffic increased one point to 48

Looking at the three-month moving averages for regional HMI scores, the South moved one point higher to 68 and the West was up one point to 72. The Northeast remained unchanged at 60 while the Midwest fell a single point to 56.

© 2019 Florida Realtors®

30-Year Mortgage Rate Unchanged this Week at 3.75%

30-year FRM still at nearly 3-year lows; a year ago, it was 4.53%. Freddie Mac Chief Economist Khater says recent stabilization reflects Fed’s “accommodative tone.”

MCLEAN, Va. – After declining for most of the year, this week’s mortgage report from Freddie Mac found that mortgage rates remained mostly unchanged this week.

“While rates have moderated, we’re still at nearly three-year lows, which is good news for buyers looking to purchase a home before school starts,” says Sam Khater, Freddie Mac’s chief economist.

“The recent stabilization in mortgage rates reflects modestly improving U.S. economic data and a more accommodative tone from the Federal Reserve to respond to the rising downside economic risk from trade tensions and soft global economic data,” Khater says. “On the housing front, the latest weekly purchase application data suggests homebuyer demand continues to rise, which is consistent with the slowly improving real estate data from the last two months.”

Rates for the week of July 11

• 30-year fixed-rate mortgages (FRM) averaged 3.75% with an average 0.5 point for the week – unchanged from last week. A year ago at this time, the 30-year FRM averaged 4.53%. 

• 15-year FRM averaged 3.22% with an average 0.5 point, up from last week when it averaged 3.18%. A year ago at this time, the 15-year FRM averaged 4.02%. 

• 5-year Treasury-indexed hybrid adjustable-rate mortgages (ARM) averaged 3.46% with an average 0.4 point, up from last week when it averaged 3.45%. A year ago, the 5-year ARM averaged 3.86%.

© 2019 Florida Realtors®

48% of Homeowners Plan to Remodel Within 2 Years

Of those who plan to remodel, 1 in 4 hope to finance it via a home equity line of credit, but most say they’ll dip into savings (48%) or checking accounts (34%).

CHERRY HILL, N.J. – Nearly half of homeowners (48%) plan to renovate their homes in the next two years, and a third of those homeowners expect to spend more than $50,000 on their renovations, according to recent research from TD Bank.

The national survey of more than 1,800 homeowners examines trends in home equity usage and home renovations. According to findings, many homeowners are dipping into their savings (48%) and checking accounts (34%) to fund renovations, many are establishing substantial budgets and seeking financing options. A quarter (25%) say they will borrow through a home equity line of credit (HELOC), and a similar portion will utilize a personal credit card (24%) or a personal loan (18%).

“While there are many viable options for funding a renovation, a home equity line of credit is one of the most affordable ways to borrow,” says Jon Giles, head of Home Equity Lending at TD Bank. “During a HELOC’s 10-year draw period, it functions much like a credit card, whereby you can draw funds when you need them. But while credit cards typically carry interest rates around 17 percent, a well-positioned borrower seeking a HELOC can secure rates close to the Federal Reserve’s prime rate, which is currently around 5.5%.”

The survey uncovered several gaps in understanding home equity:

• Nearly a quarter (23%) of homeowners said they could not define a HELOC.

• Almost a third (32%) of homeowners did not know the current equity in their home.

• One in six (16%) homeowners did not understand the impact of fixed versus variable rates on monthly payments.

DIY or buy? A generational divide

While the desire to renovate spanned all audience segments, key generational differences were observed in respondents’ priorities and strategies for renovating.

More than half (54%) of baby boomers – those over age 55 – said appearance/quality of the final product was their top renovation priority, while 18-34 year-olds were more likely to prioritize cost first (43%). And while 27% of the youngest respondents said that renovation speed was their first priority, it was 0% for boomers.

When it comes to tackling the renovations, 64% of respondents in the 18 to 34 age group said they would do some or all of the work themselves, indicating they are likely looking to save on labor costs. Meanwhile, 60% of boomers said they would hire professionals to carry out all of the work.

Across the board, homeowners said they are planning to renovate their bathroom (26%) and their kitchen (25%) more than any other area of their home. Nearly half (48%) said improving the quality of their outdoor space was a top reason to renovate.

© 2019 Florida Realtors®

April’s Delinquency Rate Hits Lowest Point in 20 Years

CoreLogic: 3.6% of the nation’s mortgages were in some stage of delinquency – a 0.7 percentage point decline from a year earlier when it was 4.3%.

IRVINE, Calif. – CoreLogic’s monthly Loan Performance Insights Report for April found that 3.6% of the nation’s mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure) in April 2019 – a 0.7 percentage point decline in the overall delinquency rate compared with April 2018, when it was 4.3%.

It’s the lowest delinquency rate for any month in more than 20 years.

The foreclosure inventory rate measures only the share of homes in the foreclosure process and doesn’t include those that are late on a mortgage payment but not yet in foreclosure. This share of mortgages was 0.4%, down 0.1 percentage points from April 2018. The April 2019 foreclosure inventory rate tied the prior five months as the lowest for any month since at least January 1999.

Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To monitor mortgage performance comprehensively, CoreLogic examines all stages of delinquency, as well as transition rates, which indicate the percentage of mortgages moving from one stage of delinquency to the next.

The rate for early-stage delinquencies (30 to 59 days past due) was 1.7% in April 2019, down from 1.8% in April 2018. The share of mortgages 60 to 89 days past due in April 2019 was 0.6%, unchanged from April 2018.

The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 1.3% in April 2019, down from 1.9% in April 2018. April’s serious delinquency rate of 1.3% was the lowest for any month since August 2005 when it was also 1.3%.

The nation’s overall delinquency rate has fallen on a year-over-year basis for the past 16 consecutive months. In April, Nebraska’s overall delinquency rate was unchanged from a year earlier and all other states posted at least a small annual decline.

“Thanks to a 50-year low in unemployment, rising home prices and responsible underwriting, the U.S. overall delinquency rate is the lowest in more than 20 years,” says Dr. Frank Nothaft, chief economist at CoreLogic. “However, a number of metros that suffered a natural disaster or economic decline contradict this national trend. For example, in the wake of the 2018 California Camp Fire, the serious delinquency rate in the Chico, California metro area this April was 21% higher than one year ago.”

In April 2019, 10 metropolitan areas logged an increase in the serious delinquency rate. The highest gains continue to plague the hurricane-ravaged parts of the Southeast (in Florida, Georgia and North Carolina), and in Northern California where the Camp Fire devastated communities in 2018.

“The U.S. has experienced 16 consecutive months of falling overall delinquency rates, but it has not been a steady decline across all areas of the country,” says Frank Martell, president and CEO of CoreLogic. “Recent flooding in the Midwest could elevate delinquency rates in hard-hit areas, similar to what we see after a hurricane.”

© 2019 Florida Realtors®

June 2019 Palm Coast - Flagler Beach Waterfront Sales Report

Hello and thank you for checking out this months Waterfront Sales Report for Flagler County. Below are waterfront property sales along with the addresses & selling prices of each property sold in June 2019.

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

June 2019 Palm Coast - Flagler Beach Saltwater Canal Home Sales Report

TL = Tip Lot P = Pool GC = Gated Community SC = Sailboat Country

• There were a total of 16 houses that sold on the saltwater canal in June.

• The top sale of the month was 20 Old Oak Drive South in the gated community of Sanctuary in Palm Coast at $765,000.

• The deal of the month was 28 Clearview Court in the Palm Harbor neighborhood of Palm Coast at $250,000.

• The average sales price for Flagler County saltwater canal homes in June, 2019 was $435,697 with an average of 117 days on market.

Sanctuary

20 Old Oak Dr S Palm Coast, FL 32137 - $765,000 (P, GC, SC)

Flagler Beach

2534 Lakeshore Dr Flagler Beach, FL 32136 - $755,000 (P)

3454 N Ocean Shore Blvd Flagler Beach, FL 32136 - $610,000

Average Flagler Beach Saltwater Canal Sales Price: $682,500

Average Flagler Beach Saltwater Canal Days on Market: 55

Yacht Harbor Village

299 Yacht Harbor Dr Palm Coast, FL 32137 - $600,000

Palm Harbor

7 Cayuse Ct Palm Coast, FL 32137 - $485,000 (TL, P, SC)

22 Cedarview Court Palm Coast, FL 32137 - $480,150 (P, SC)

28 Clearview Ct N Palm Coast, FL 2137 - $429,000 (TL, P)

13 Clermont Court Palm Coast, FL 32137 - $425,000 (P)

42 Cherokee Ct W Palm Coast, FL 32137 - $412,000 (TL, SC)

7 Clee Court Palm Coast, FL 32137 - $325,000 (P)

11 Floral Court Palm Coast, FL 32137 - $320,000

4 Crampton Court Palm Coast, FL 32137 - $320,000 (P)

7 Claridge Ct S Palm Coast, FL 32137 - $275,000

31 Collingdale Court Palm Coast, FL 32137 - $265,000 (SC)

5 Cloverdale Ct S Palm Coast, FL 3213728 - $255,000

28 Clearview Ct S Palm Coast, FL 32137 - $250,000 (P)

Average Palm Harbor Saltwater Canal Sales Price: $353,429

Average Palm Harbor Saltwater Canal Days on Market: 117

June 2019 Palm Coast - Flagler Beach Saltwater Canal Lot Sales Report

• There were a total of 4 lots that sold on the saltwater canal in June.

• The top sale of the month was 163 Lehigh Ave Flagler Beach, FL 32136 at $192,000.

• The deal of the month was 9 Cold Spring Court Palm Coast, FL 32137 at $80,000.

• The average sales price for a saltwater canal lot in June 2019 was $135,500 with an average of 225 days on market.

Below is a summary of each neighborhoods saltwater canal lot sales for June 2019.

Flagler Beach

163 Lehigh Ave Flagler Beach, FL 32136 - $192,000

3532 N Ocean Shore Blvd Palm Coast, FL 32137 - $180,000

Average Saltwater Canal Lot in Flagler Beach Sales Price: $186,000

Average Saltwater Canal Lot in Flagler Beach Days on Market: 221

Palm Harbor

14 Clinton Ct N Palm Coast, FL 32137 - $90,000

9 Cold Spring Court Palm Coast, FL 32137 - $80,000

Average Saltwater Canal Lot in Palm Harbor Sales Price: $85,000

Average Saltwater Canal Lot in Palm Harbor Days on Market: 229

June 2019 Palm Coast - Flagler Beach Saltwater Canal Condo Sales Report

(none for June 2019)

June 2019 Palm Coast - Flagler Beach Intracoastal Waterway Home Sales Report

• There were a total of 3 homes that sold on the Intracoastal Waterway in June.

• The top sale of the month was 3 Pavilion Ct Palm Coast, FL 32137 at $710,000.

• The deal of the month was 4212 N Ocean Shore Blvd Palm Coast, FL 32137 at $625,000.

• The average sales price for a ICW home in June 2019 was $670,667 with an average of 93 days on market.

Below is a summary of each neighborhoods Intracoastal Waterway sales for June 2019.

Tidelands

3 Pavilion Ct Palm Coast, FL 32137 - $710,000

Grand Haven

101 Front Street Palm Coast, FL 32137 - $677,000

A1A North - Palm Coast

4212 N Ocean Shore Blvd Palm Coast, FL 32137 - $625,000

Average ICW Home Sales Price: $670,667

Average ICW Home Days on Market: 93

June 2019 Palm Coast - Flagler Beach Intracoastal Waterway Lot Sales Report

• There were a total of 2 lots that sold on the Intracoastal Waterway in June.

• The top sale of the month was 163 Lehigh Ave Flagler Beach, FL 32136 at $192,000.

• The deal of the month was 101 Riverwalk Dr S Palm Coast, FL 32137 at $175,000.

• The average sales price for a ICW lot in June 2019 was $183,500 with an average of 186 days on market.

Below is a summary of each neighborhoods Intracoastal Waterway lot sales for June 2019.

Flagler Beach

163 Lehigh Ave Flagler Beach, FL 32136 - $192,000

Palm Coast Plantation

101 Riverwalk Dr S Palm Coast, FL 32137 - $175,000

Average ICW Lot Sales Price: $183,500

Average ICW Lot Days on Market: 186

June 2019 Palm Coast - Flagler Beach Intracoastal Waterway Condo Sales Report

• There were a total of 3 condos that sold on the Intracoastal Waterway in June.

• The top sale of the month was 500 Canopy Walk Lane Palm Coast, FL 32137 Unit #521 at $325,000.

• The deal of the month was 63 Ocean Palm Villas S Flagler Beach, FL 32136 at $157,900.

• The average sales price for a ICW condo in June 2019 was $229,300 with an average of 74 days on market.

Below is a summary of each neighborhoods Intracoastal Waterway condo sales for June 2019.

Canopy Walk

500 Canopy Walk Lane Palm Coast, FL 32137 Unit #521 - $325,000

Tidelands

45 S Riverview Bend Palm Coast, FL 32137 Unit #1917 - $205,000

Ocean Palm Villas

63 Ocean Palm Villas S Flagler Beach, FL 32136 - $157,900

Average ICW Condo Sales Price: $229,300

Average ICW Condo Days on Market: 74

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

Gov. DeSantis signs property rights bill

The new law, effective July 1, requires property appraisers to publish new info on their websites and includes additional property rights for homeowners.

TALLAHASSEE, Fla. – Florida Governor Ron DeSantis signed HB 1159 into law yesterday, a property rights bill that includes new measures to protect and promote the rights of the state’s private property owners.

Among other things, HB 1159 requires county property appraisers to publish a list of constitutionally protected property rights on their websites.

The bill also allows property owners to trim or remove trees on their property without consequence, as long as they have a letter from a certified arborist or landscape architect stating the tree is a danger.

The measures included in the bill become effective on July 1, 2019.

© 2019 Florida Realtors®

May Pending Home Sales Bounce Back, Up 1.1%

The number of homes under contract rose everywhere except the Northeast. NAR economist says confidence is up, and he expects pending-sales growth to continue.

WASHINGTON – U.S. pending home sales increased in May, a positive variation from a minor sales dip the previous month, according to the National Association of Realtors® (NAR). Three of major U.S. regions saw growth in contract activity, with the West experiencing a slight sales decline.

NAR’s Pending Home Sales Index (PHSI) – a forward-looking indicator based on contract signings – climbed 1.1% to 105.4 in May, up from 104.3 in April. Year-over-year contract signings declined 0.7%, marking the 17th straight month of annual decreases.

Lawrence Yun, NAR chief economist, said lower-than-usual mortgage rates led to the increase in pending sales for May. “Rates of 4% and, in some cases even lower, create extremely attractive conditions for consumers. Buyers, for good reason, are anxious to purchase and lock in at these rates.”

Yun said consumer confidence about home buying has risen, and he expects more activity in the coming months.

“The Federal Reserve may cut interest rates one more time this year, but there is no guarantee mortgage rates will fall from these already historically low points,” he says. “Job creation and a rise in inventory will nonetheless drive more buyers to enter the market.”

While contract signings and mortgage applications have increased, Yun says there’s still a great need for more inventory, noting, “Home builders have not ramped up construction to the extent that is needed. Homes are selling swiftly, and more construction will help keep home prices manageable and thereby allow more middle-class families to attain ownership opportunities.”

May regional breakdown
The PHSI in the Northeast rose 3.5% to 92.0 in May and is now 0.5% below a year ago. In the Midwest, the index grew 3.6% to 100.3 in May, 1.2% lower than May 2018.

Pending home sales in the South inched up 0.1% to an index of 124.1 in May, which is 0.7% higher than last May. The index in the West dropped 1.8% in May to 91.8 and decreased 3.1% below a year ago.

© 2019 Florida Realtors®

Consumer Confidence Down After 3 Months of Increases

By Florida Realtors

The Consumer Confidence Index dropped from May’s 131.3 to 121.5 in June, with attitudes about both current conditions and future expectations taking a hit.

BOSTON – The Conference Board Consumer Confidence Index declined in June following increases in the three prior months. The Index now stands at 121.5 down from 131.3 in May.

The Present Situation Index – based on consumers’ assessment of current business and labor market conditions – decreased from 170.7 to 162.6. The Expectations Index – based on consumers’ short-term outlook for income, business and labor market conditions – decreased from 105.0 last month to 94.1 this month.

“After three consecutive months of improvement, Consumer Confidence declined in June to its lowest level since September 2017,” says Lynn Franco, senior director of economic indicators at The Conference Board. “The decrease in the Present Situation Index was driven by a less favorable assessment of business and labor market conditions.”

In talking about the decline in expectations over the next six months, Franco says, “The escalation in trade and tariff tensions earlier this month appears to have shaken consumers’ confidence. Although the Index remains at a high level, continued uncertainty could result in further volatility in the Index and, at some point, could even begin to diminish consumers’ confidence in the expansion.”

Current conditions

Consumers claiming business conditions are “good” decreased from 38.4% to 36.7%; however, those saying business conditions are “bad” also decreased, from 11.7% to 10.9%.

Consumers’ assessment of the labor market was also somewhat less upbeat. Those saying jobs are “plentiful” decreased from 45.3% to 44.0%, while those claiming jobs are “hard to get” rose from 11.8% to 16.4%.

Short-term outlook

The percentage of consumers expecting business conditions to be better six months from now decreased from 21.4% to 18.1%, while those expecting business conditions will worsen rose from 8.8% to 13.1%.

Consumers’ outlook for the labor market was also less favorable. The proportion expecting more jobs in the months ahead decreased from 18.4% to 17.3%, while those anticipating fewer jobs increased from 13.0% to 14.8%.

Regarding their short-term income prospects, the percentage of consumers expecting an improvement decreased from 22.2% to 19.1%, while the proportion expecting a decrease inched up from 7.8% to 8.0%.

The monthly Consumer Confidence Survey is based on a probability-design random sample and conducted for The Conference Board by Nielsen. The cutoff date for the preliminary results was June 14.

© 2019 Florida Realtors®

NAR: Existing Home Sales Rise 2.5% in May

While up from April, sales slipped 1% from a year ago, NAR's chief economist says buyers are responding to lower mortgage rates and their greater purchasing power. 

WASHINGTON – Existing-home sales rebounded in May, recording an increase in sales for the first time in two months, according to the National Association of Realtors® (NAR). Each of the four major U.S. regions saw a growth in sales, with the Northeast experiencing the biggest surge last month.

Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – jumped 2.5% from April to a seasonally adjusted annual rate of 5.34 million in May. Total sales, however, are down 1.1% from a year ago (5.40 million in May 2018).

Lawrence Yun, NAR’s chief economist, said the 2.5% jump shows that consumers are eager to take advantage of the favorable conditions. “The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding.”

The median existing-home price for all housing types in May was $277,700, up 4.8% from May 2018 ($265,100). May’s price increase marks the 87th straight month of year-over-year gains.

Total housing inventory at the end of May increased to 1.92 million, up from 1.83 million existing homes available for sale in April and a 2.7% increase from 1.87 million a year ago. Unsold inventory is at a 4.3-month supply at the current sales pace, up from both the 4.2-month supply in April and from 4.2 months in May 2018.

Though inventory is up, the months’ supply numbers remain near historic lows, which has a direct effect on price, according to Yun. “Solid demand along with inadequate inventory of affordable homes have pushed the median home price to a new record high,” he said.

Properties remained on the market for an average of 26 days in May, up from 24 days in April and equal to the 26 days in May of 2018. Fifty-three percent of homes sold in May were on the market for less than a month.

Given that housing and properties have been selling so quickly, Yun continues his call for new construction. “More new homes need to be built,” he said. “Otherwise, we risk worsening the housing shortage, and an increasingly number of middle-class families will be unable to achieve homeownership.”

Realtor.com’s Market Hotness Index, measuring time-on-the-market data and listing views per property, revealed that the hottest metro areas in May were Rochester, N.Y.; Fort Wayne, Ind.; Lafayette-West Lafayette, Ind.; Boston-Cambridge-Newton, Mass.; and Midland, Texas.

According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 4.07% in May, down from 4.14% in April. The average commitment rate across all of 2018 was 4.54%.

“The month of May ushered in the home sales upswing that we had been expecting,” said NAR President John Smaby. “Sales are strengthening in all regions while we see price appreciation for recent buyers.”

First-time buyers were responsible for 32% of sales in May, unchanged from the 32% the month prior and up from the 31% recorded in May 2018.

All-cash sales accounted for 19% of transactions in May, down from April and a year ago (20% and 21%, respectively). Individual investors, who account for many cash sales, purchased 13% of homes in May, down from 16% in April and from 14% a year ago.

Distressed sales – foreclosures and short sales – represented 2% of sales in May, down from 3% in April and from 3% in May 2018. Less than 1% of May 2019 sales were short sales.

Single-family and condo/co-op sales

Single-family home sales sat at a seasonally adjusted annual rate of 4.75 million in May, up from 4.63 million in April and down 0.8% from 4.79 million a year ago. The median existing single-family home price was $280,200 in April, up 4.6% from May 2018.

Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 590,000 units in May, up 1.7% from the prior month and down 3.3% from a year ago. The median existing condo price was $257,100 in May, which is up 5.4% from a year ago.

Regional breakdown

May existing-home sale numbers in the Northeast increased 4.7% to an annual rate of 670,000, about equal to a year ago. The median price in the Northeast was $304,100, up 6.6% from May 2018.

In the Midwest, existing-home sales jumped 3.4% to an annual rate of 1.22 million, which is 3.9% below May 2018 levels. The median price in the Midwest was $220,500, an increase of 5.6% from a year ago.

Existing-home sales in the South grew 1.8% to an annual rate of 2.32 million in May, up 1.3% from a year ago. The median price in the South was $241,400, up 3.6% from a year ago.

Existing-home sales in the West grew 1.8% to an annual rate of 1.13 million in May, 3.4% below a year ago. The median price in the West was $409,100, up 4.1% from May 2018.

© 2019 Florida Realtors®

Florida Housing Market Report: Sales & Median Prices Up in May

By Florida Realtors

May was “the highest single-family home sales’ monthly total for any single month in … 10 years," says Brad O'Connor, Florida Realtors chief economist.

ORLANDO, Fla – Florida’s housing market reported increased sales, higher median prices, more pending sales and gains in inventory (active listings) in May compared to a year ago, according to the latest housing data released by Florida Realtors®. Sales of single-family homes statewide totaled 30,742 last month, up 9.6% over May 2018.

FLORIDA HOUSING MARKET UPDATE: MAY 2019

May turned out to be one of the strongest months we’ve seen in a long time for single-family homes in the Sunshine State. We're talking a 9.6 percent increase in sales from May 2018 and our highest monthly total for *any* single month over at least the past 10 years.

“Low interest rates continue to fuel buyer demand in Florida’s housing market,” said 2019 Florida Realtors President Eric Sain, a Realtor and district sales manager with Illustrated Properties in Palm Beach. “In May, new pending sales for existing single-family homes were up 5% year-over-year, while pending sales for existing condo-townhouse properties rose slightly (0.5%). Inventory levels have steadily improved, which offers more choices for homebuyers. Statewide, single-family inventory (active listings) last month rose 4% over May 2018, while condo-townhouse inventory increased 4.8%.

“For expert advice and peace of mind, buyers and sellers should consult a local Realtor to learn more about area market conditions.”

In May, statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year for the 89th consecutive month. The statewide median sales price for single-family existing homes was $266,000, up 4.3% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $195,000, up 3.7% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in April 2019 was $269,300, up 3.7% from the previous year; the national median existing condo price was $251,000. In California, the statewide median sales price for single-family existing homes in April was $602,920; in Massachusetts, it was $394,000; in Maryland, it was $295,000; and in New York, it was $271,000.

Looking at Florida’s condo-townhouse market in May, statewide closed sales totaled 12,217, up 1.6% compared to a year ago. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

“May turned out to be our highest single-family home sales’ monthly total for any single month over at least the past 10 years,” said Florida Realtors Chief Economist Dr. Brad O’Connor. “What’s more, this growth was widespread, with sales increasing in 21 of the state’s 22 metropolitan areas.

“This resurgence in single-family home sales is largely being driven by a single factor, which is that mortgage interest rates have been declining sharply since late last year. It’s worth noting, for instance, that all-cash single-family home sales were actually only up 1.5% in May, whereas transactions involving financing were up over 12%.”

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.07% in May 2019, down from the 4.59% averaged during the same month a year earlier.

© 2019 Florida Realtors

Survey: More Homeowners Think It’s a Good Time to Sell

By Florida Realtors

If current owners were waiting for rising prices to moderate, it’s time to move. NAR’s latest survey finds 46% believe it’s a good time to sell.

WASHINGTON – The latest consumer findings from a National Association of Realtors® (NAR) survey reveal that many more Americans believe that now is a good time to sell a home.

The second quarter of 2019 saw a jump in optimism in selling – 46% strongly held that belief, up from 37% in the first quarter.

NAR’s chief economist Lawrence Yun says that home prices have increased only moderately and are a contributing factor for the reason a majority feel that now is a good time to sell. “With home price appreciation slowing, home sellers understand that the days of large price gains from holding an extra year are over,” he says.

An increased number of Americans also think it’s a good time to buy a home, and of those respondents, 38% strongly believe that notion, and 27% said they moderately believe it. Thirty-five percent disagreed, however, saying it’s not a good time to make a home purchase, which is unchanged from 2019’s first quarter.

NAR’s second quarter Housing Opportunities and Market Experience (HOME) survey also looked at consumer attitudes regarding the nation’s economy, and 55% said that the economy is improving; up from 53% in the previous quarter. Second quarter optimism was greatest among those who earn $100,000 or more and those who reside in rural areas. Fifty-three percent of Gen Xers said they believe the economy is improving, which is also up from 50% last quarter.

Yun said Gen Xers might have more financial pressures compared to other age groups.

“Many in the Generation X population find themselves needing to purchase multi-generational homes,” he says. “Also, they may be feeling financial stress from caring for aging parents and children of all ages. Nonetheless, they have an optimistic outlook about the future.”

To that point, 63% of Gen Xers believe home prices have increased within their communities in the last 12 months, a slight jump from the first quarter’s 61%.

Respondents were also asked to share their thoughts on future home prices in their neighborhoods, and 43% percent believe prices will remain the same in their communities over the next six months, a figure which is consistent with the previous quarter; 49% expect to see a price increase.

Among those surveyed who do not currently own a home, 27% said they believe it would be very difficult to qualify for a mortgage due to their financial state; 30% said it would be somewhat difficult.

Yun said that mortgage affordability was promising over the second quarter, and he predicts this trend will continue. “Lower mortgage rates, along with job and wage growth, will lead to an increase in sales and thereby contribute positively to economic growth in the upcoming quarters.”

© 2019 Florida Realtors®

Lenders Must Accept Private Flood Insurance Policies After July 1

WASHINGTON – June 18, 2019 – The threat to home closings during a National Flood Insurance Program (NFIP) shutdown may be muted or nonexistent should Congress fail to extend the program in the future. After July 1, a federal law forces mortgage lenders to accept private coverage if it satisfies criteria outlined in the Biggert-Waters Flood Insurance Reform Act of 2012.

In February, five federal regulatory agencies – the FDIC, Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, National Credit Union Administration and Farm Credit Administration – issued a joint final rule to implement provisions of the Act, which outlines the new private flood insurance mandate and the steps insurance companies and mortgage lenders must follow.

The rule, which takes effect July 1, 2019:

• Implements the Biggert-Waters Act requirement that regulated lending institutions accept private flood insurance policies that satisfy criteria specified in the Act

• Allows institutions to rely on an insurer's written assurances in a private flood insurance policy stating the criteria are met

• Clarifies that institutions may, under certain conditions, accept private flood insurance policies that do not meet the Biggert-Waters Act criteria

• Allows institutions to accept certain flood coverage plans provided by mutual aid societies, subject to agency approval

Private flood insurance could be offered as a stand-alone policy or as an endorsement attached to a full property insurance policy. Lenders won't have to verify that a flood policy or endorsement is acceptable, providing it includes the following endorsement: "This policy meets the definition of private flood insurance contained in 42 U.S.C. 4012a(b)(7) and the corresponding regulation."

However, the law also allows a lender to do its own due diligence if it prefers not to rely on the statement.

A full copy of the 90-page order is posted on the U.S. Department of the Treasury's Office of the Comptroller of the Currency website.

© 2019 Florida Realtors®

ATTOM: Dollar value of flips hits 12-year high in 1Q

IRVINE, Calif. – June 6, 2019 – ATTOM Data Solutions' Q1 2019 U.S. Home Flipping Report, finds that 49,059 U.S. single family homes and condos were flipped in the first quarter of 2019 – down 2% from the previous quarter and down 8% from a year ago. By total number of flips, it's at a three-year low.

"With interest rates dropping and home price increases starting to ease, investors may be getting out while the getting is good, before the market softens further," says Todd Teta, chief product officer at ATTOM Data Solutions. "While the home flipping rate is increasing, gross profits and ROI are starting to weaken, and the number of investors that are flipping is down 11% from last year. Therefore, if investors are seeing profit margins drop, they may be acting now and selling before price increases drop even more."

Flips made up 7.2% of all home sales during the quarter, up from 5.9% in the previous quarter and up from 6.7% year-to-year. It's the highest home flipping rate since Q1 2010.

Homes flipped in Q1 2019 sold at an average gross profit of $60,000, down from an average gross flipping profit of $62,000 in the previous quarter and down $68,000 in Q1 2018. It's the lowest average gross flipping profit since Q1 2016.

The average gross flipping profit of $60,000 in Q1 2019 translated into an average 38.7% return on investment compared to the original acquisition price, down from a 42.5% average gross flipping ROI in Q4 2018 and down from an average gross flipping ROI of 48.6% in Q1 2018 to the lowest level since Q3 2011 – a nearly eight-year low.

Overall, Florida metros and zip codes fell somewhere in the middle of ATTOM's numbers, with only two of note: Eight U.S. zip codes have a flipping rate higher than 30%, and ATTOM found that zip code 33147 in Miami-Dade County had a flipping rate of 32.7%.

In addition, Naples was cited as the U.S. city where it takes the longest time to flip a home – 235 days.

© 2019 Florida Realtors

Fla.’s housing market: median prices, inventory up in 1Q

Fla.’s housing market: median prices, inventory up in 1Q

ORLANDO, Fla. – May 14, 2019 – Florida's housing market reported higher median prices and rising inventory during the first quarter of 2019, according to the latest housing data released by Florida Realtors®. Rising prices continue to put pressure on many homebuyers despite gains in the inventory of for-sale homes: Closed sales of single-family homes statewide totaled 59,505 in 1Q 2019, down 1.2 percent from the 1Q 2018 level.

"Continuing a trend that we've been seeing for quite a while, median sales prices for both existing single-family homes and for condo-townhouse properties rose in Florida during the first three months of 2019," says 2019 Florida Realtors President Eric Sain, "The state's population continues to increase, our jobs outlook is strong and the economy is growing. In fact, Florida continues to be ranked as the second-best state in the U.S. to do business, according to the 2019 survey of CEOs from Chief Executive magazine."

The statewide median sales price for single-family existing homes in 1Q 2019 was $253,000, up 2 percent from the same time a year ago, according to data from Florida Realtors Research department in partnership with local Realtor boards/associations. The statewide median price for condo-townhouse properties during the quarter was $185,575, up 3.1 percent over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less. 

Looking at Florida's condo-townhouse market, statewide closed sales totaled 25,060 during 1Q 2019, down 7.3 percent compared to 1Q 2018. Closed sales typically occur 30 to 90 days after sales contracts are written.

"There was a little hiccup in sales in both December and January due to a temporary rise in mortgage rates, but rates have since fallen to just above 4 percent again, which helped to spur sales in February and March," said Florida Realtors Chief Economist Dr. Brad O'Connor. "This effect will likely continue into the second quarter as folks continue to realize this might be their last chance to upgrade, downsize or buy their first home while rates are near historical lows.

"Price growth, in the meantime, will continue to be less pronounced in 2019 than in recent years, as inventory levels across multiple price tiers continue to trend upward."

In 1Q 2019, the median time to a contract (the midpoint of the number of days it took for a property to receive a sales contract during that time) was 51 days for single-family homes and 53 days for condo-townhouse properties.

Inventory was at a 4.2-months' supply in the first quarter for single-family homes and at a 6.3-months' supply for condo-townhouse properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.37 percent for 1Q 2019, up from the 4.27 percent average recorded during the same quarter a year earlier. 

To see the full statewide housing activity reports, go to Florida Realtors Research & Statistics section on floridarealtors.org. Realtors also have access to local market stats (password protected) on Florida Realtors' website. 

© 2019 Florida Realtors®