Bradenton Real Estate

April 24, 2013

Housing Starts Pass 1 Million Starts for First Time in Nearly Five Years

housing reportHousing Starts Pass 1 Million Starts for First Time in Nearly Five Years

Freddie Mac recently released its U.S. Economic and Housing Market Outlook for April showing that despite the ongoing housing recovery and gains on the construction jobs front, large economic headwinds persist. For example, the stubbornly high unemployment rate serves as a reminder of just how far the economy needs to go to get back to a healthy level. A short preview video and the complete April 2013 U.S. Economic and Housing Market Outlook are available here.

Housing starts were up 47 percent from March 2012 to March 2013, passing 1 million starts for the first time in nearly five years.
The pace of construction job growth has been accelerating in recent months. Over the past year, net construction job growth represented 8 percent of all job gains, while in the last six months it represented 15 percent.

Projecting an increase by $100 billion in refinances in 2014 to account for additional Home Affordable Refinance Program volumes with its extension through 2015.

Projecting residential originations, including single-family and apartments, to be nearly $2 trillion in 2013.

Supported by low mortgage rates, expect total homes built in 2013 to come in at the fastest pace since 2007.

“Until aggregate unemployment decreases substantially we will not experience robust growth. Construction employment is showing signs of life, which should help to improve the overall macroeconomic picture,” says Frank Nothaft, Freddie Mac vice president and chief economist.

“Housing construction is starting to pick up, but is well below historical averages. Supported by low mortgage rates we expect more homes to be built in 2013 than in any year since 2007. This increased construction employment should continue to help bring down the overall unemployment rate.”

Freddie Mac compiles data on major economic, housing and mortgage market indicators and offers forecasts based on those indicators.

For more information, visit www.FreddieMac.com.

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Reprinted with permission from RISMedia. ©2013. All rights reserved.

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February 24, 2013

FNC Report: Housing Recovery Takes Hold for the Long Haul

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FNC Report: Housing Recovery Takes Hold for the Long Haul

Though home foreclosures continue to be a challenge in many hard-hit markets, a report released this week by mortgage technology company FNC indicates the ongoing housing recovery should continue for the long haul.


According to FNC’s Foreclosure Market Report, foreclosure prices have bottomed out in recent months and the foreclosure market has stabilized while underlying home values are rising. Foreclosure prices are at a 10-year low (when the sizes of foreclosed homes are factored in).

This trend of a rising underlying market accompanied by stabilizing foreclosure prices is the first encouraging development in the housing recession, according to FNC Senior Research Economist, Dr. Yanling Mayer.

“The fact that we are seeing a combination of rising home prices and a bottoming out of foreclosure prices is a very good sign the housing recovery is taking hold,” Mayer says. “This is the very first time in the long housing recession that the two are happening at the same time.”

FNC’s report shows that foreclosure price discounts, which compare a foreclosed home’s estimated market value to its final sales price, have dropped to pre-mortgage crisis levels at about 12.2 percent in Q4 2012. At the height of the mortgage crisis in 2008 and 2009, foreclosed homes were typically sold at more than 25 percent below their estimated market value. Additionally, the report indicates that the typical size of foreclosed homes is also approaching pre-crisis levels.

“If you look at the period of short-lived recovery under the first-time homebuyer tax credits, the foreclosure market was still in the midst of rapid deterioration with the influx of delinquent mortgages,” Mayer says. “This time, we are witnessing an entirely different development in the foreclosure market.”

FNC publishes the mortgage industry’s first market-valued based foreclosure price discount to gauge the degree of market distress. For more information about the foreclosure price discount, please refer to FNC’s March 2011 report located here.

More highlights from FNC’s Foreclosure Market Report:

• Single-family REO and foreclosure sales are 18.1 percent in Q4 2012, down from 26.5 percent in Q1 2012 and 24.2 percent in Q4 2011.

• The median foreclosure price is $93,000 or $65 per square foot. In comparison, the median price on non-foreclosure sales is $183,500 or $106 per square.

• Foreclosure price discounts are typically larger for low-tier properties, averaging 18.4 percent in Q4 2012. High-end properties, on the other hand, are typically sold close to their market value.

• Collateral depreciation – the difference between a property’s prior purchase price and foreclosure sale price – continues to decelerate, down to 6.4 percent in Q4 2012 from 8.4 percent a year earlier. Among the re-sales of non-distressed homes, homeowners typically broke even and many even realized a small price appreciation (+0.4 percent).

• Michigan has the nation’s highest concentration of foreclosure sales; 56 percent of homes sold in Q4 2012 are foreclosure sales. In contrast, foreclosure sales in judicial states such as New York, New Jersey, and Vermont only make up 5 percent of home sales.

• Foreclosure rates in a number of the hardest hit states are at or below the national average: Arizona (14.3 percent), California (19.8 percent), Florida (20.5 percent), and Nevada (13.0%).

• Midwest cities including Detroit, Chicago, Cleveland, and St. Louis have the largest concentration of foreclosure sales.

• Las Vegas, Phoenix, Riverside, and Sacramento show rapid declines in foreclosure sales in the last 12 months.

• Foreclosure price discounts are much smaller in markets with fast-rising prices. Many buyers in Phoenix, Las Vegas, Sacramento, San Diego, and Riverside paid a price premium on foreclosure sales, meaning foreclosure sales price exceeded estimated market value.

• Judicial foreclosures are generally associated with the largest price discount in foreclosure sales: New York (30 percent), Boston (32 percent), and Philadelphia (32.8 percent).

• Of the cities identified by the Federal Reserve Board as the largest REO inventory markets entering 2012, Phoenix, Los Angeles, and Riverside saw a significant decline in market distress during the year.

Phoenix is leading the nation in recovery with home prices up 26 percent in 2012 and foreclosure down from 29 percent to 12 percent.

For more information, visit www.fncinc.com.

The Serena Group ~ Keller Williams Realty of Manatee

is here for you!  Contact Us Today!

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October 23, 2012

Housing Sector Still Contributing in a Big Way

impact of real estate industry and housing sector on the economy

If you’ve purchased a home recently or intend to purchase soon, you may not have thought about the fact that you’re part of a vast industry that has made, and continues to make, a significant contribution to the American economy.

Consider the following information from an April 2012 report by the National Association of Realtors® (NAR):

“Research has consistently shown the importance of the housing sector on the economy and the long-term social and financial benefits to individual homeowners. The economic benefits of the housing market and home ownership are immense and well documented. The housing sector (in the U.S.) directly accounted for approximately 15% of total economic activity in 2011.

Those statistics include such contributing factors as: mortgage lending; home construction; real estate agents’ commissions; lawyers’ fees, home appraisal costs, and moving costs. These sectors generate taxes and other forms of income for government at all levels.

Beyond that the housing industry also produces long reaching economic ripples that extend well beyond the home purchases and related expenses and expenditures.

Real estate transactions create jobs and, thereby, facilitate economic growth in ways that you might not even have considered.

For instance, a NAR study on the economic impact of real estate in the state of Oregon tells the tale:

For every home sold in Oregon in 2011, there were additional expenditures on consumer items, such as furniture, appliances and paint, totaling, on average, $5,234.

When you consider the number of homes sold across North America, you start to realize the numbers of manufacturers, suppliers of goods and services, trades people and sales forces that are dependent on the health and prosperity of the housing industry. The real estate industry remains, even under less than favorable circumstances, one to be reckoned with. Naysayers notwithstanding, it will continue to be so.

Even now with national housing markets in flux, home ownership remains ingrained in our very psyche. The American dream is alive and well and still very much a reality for many people.

If you’re considering or planning to buy or sell a home in the Bradenton, Sarasota, Manatee County, or Sarasota County areas of Florida

Please consider working with our team of hard working and experienced real estate professionals, The Serena Group.

Learn more about us here → MEET THE TEAM!

You may contact us directly, anytime, at →  941.757.5377.

June 27, 2012

The Post-Purchase Jitters: Tyson’s Tips on Homeownership

Real Estate expert and author of five national bestsellers Eric Tyson sat down with Dottie Herman, CEO of Prudential Douglas Elliman, on June 2 to discuss the housing market and give valuable advice to new homeowners post-purchase.  Elliman is a leading New York-based Real Estate company, and the broadcast “10 Things to Do After Buying Your Home” was part of Herman’s regular show, “Eye on Real Estate with Dottie Herman.”

Tyson, who began his career as a personal financial adviser at Bain & Company in the early 90s, shared tips with Herman’s audience from two of his newest books, “Investing for Dummies” and “Home Buying for Dummies.”  He is also the ONLY AUTHOR to have four of his books simultaneously on Business Week’s bestseller list. Tyson and Herman opened their talk with a discussion about current home pricing and the buyer’s remorse that often accompanies new home purchases.

“Getting the money to buy is hurdle one, and paying is hurdle two,” Herman explained when introducing her guest.

Tyson agreed, explaining that prospective homebuyers should always be confident of their financial and employment situations prior to buying.  Some of the initial tips he gave to buyers made reference to affordability, personal circumstances and comfort level.

“You have to look at your overall financial situation to figure out how much house you can truly afford,” Tyson said.  He added that potential buyers should account for outstanding loans and expected future expenses to make the decision less stressful in the long run.

Herman asked Tyson to share some of the tips from his most recent book.  At that point Tyson delved into several explanations of the material, including why consumers should avoid solicitors, how buyers should go about hiring effective financial planners and Real Estate teams, why new homeowners should get involved in local tax assessments and how buyers can protect their assets in the future.

Tyson explained that recent home buyers should opt for classic life insurance instead of mortgage insurance policies.  “The life insurance decision comes down to ‘how many years worth of your income are you trying to replace?’” Tyson explained. He also stressed that bank solicitations are usually less cost effective for consumers looking to buy life insurance.

In reference to the process of hiring Real Estate teams, Tyson said, “Learn enough so that you can evaluate these people and make a good hiring decision.”  He further suggested that homeowners should not assume that refinancing will save them money but should crunch the numbers themselves or with their financial planners.

Herman then directed the discussion to emergency funds.  When asked of the standard amount for an emergency fund, Tyson said, “I think for most people–at a minimum–they want to have 3 months worth of living expenses.”  He added, “If things are more volatile, you should have at least 6 months worth of living expenses.”

After noting that many home buyers get stressed out during and after the home-buying process, Tyson finished the interview with some key advice from his book:  “Take time to smell the roses.”

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Guest Author Credit:  Megan Gates is an active blogger who provides written work pertaining to home improvement, the latest architecture, design and fashion.  She also writes on behalf of Elliman Real Estate.  Follow her on twitter @MEGatesDesign.

For Dottie Herman | CEO | Prudential Douglas Elliman

http://www.elliman.com/management-team/member/dorothy-herman/63

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