Developers tweak designs to lure foreign buyers

MIAMI – April 30, 2013 – Foreign buyers are flocking to the U.S. to snag luxury second-homes, and developers increasingly cater to the global buyer by tweaking the design of their properties.  

“New buildings and residences now have kitchens outfitted with wok burners to attract Asian buyers,” according to a Wall Street Journal report. “Others have European-style bathtubs and bidets for Western tastes. South American-inspired residences include sprawling balconies that can accommodate large extended families for dining and playing games.”

In 2012, international buyers purchased $82.5 billion in residential real estate in the U.S. – an increase from $53.4 billion in 2010, according to National Association of Realtors® (NAR) data. What’s more, international buyers spend about double the amount a typical American homebuyer spends.

“I can look at an apartment or house and almost figure out the nationality of the buyers who are there,” says Mark Zilbert, president and CEO of Miami-based Zilbert International Realty. “Whether it’s deliberate or not, [developers] are putting in a lot of features that appeal to that taste and color palette.” In Miami alone, about 60 percent of home buyers were from overseas last year, according to the Miami Association of Realtors.

Developers of twin 49-story towers are showing international models of their Miami apartments, hoping to lift sales. Before employing this strategy, 653 of the 849 apartments were unsold. However, developers realized that the majority of buyers were coming from Argentina, Venezuela and Brazil, so they decided to cater more to their tastes. The developer commissioned models that showcase designers from Venezuela, Brazil, Spain and Colombia, as well as the U.S.

“It's really about the nuance,” says Philip J. Spiegelman, who handles marketing for the developer. “Colombians may like very modern-contemporary, while the Brazilians may like something more conservatively contemporary.”

Source: “Romancing the Overseas Buyer,” The Wall Street Journal (April 18, 2013)

© Copyright 2013 INFORMATION, INC. Bethesda, MD (301) 215-4688

NAR: Pending sales rise modestly as inventory tightens

WASHINGTON – April 29, 2013 – Pending home sales increased in March and remain above year-ago levels, but contract activity in recent months shows only modest movement, according to the National Association of Realtors® (NAR).

NAR’s Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 1.5 percent to 105.7 in March from a downwardly revised 104.1 in February, and is 7 percent above March 2012 when it was 98.8.

Pending sales have been above year-ago levels for the past 23 months; the data reflect contracts but not closings.

“Contract activity has been in a narrow range in recent months, not from a pause in demand but because of limited supply,” says Lawrence Yun, NAR chief economist. “Little movement is expected in near-term sales closings, but they should edge up modestly as the year progresses. Job additions and rising household wealth will continue to support housing demand.”

The pending index in the Northeast was unchanged at 82.8 in March and is 6.3 percent higher than March 2012. In the Midwest, the index increased 0.3 percent to 103.8 in March and is 13.7 percent above a year ago.

Pending home sales in the South rose 2.7 percent to an index of 120 in March and are 10.4 percent higher than March 2012. In the West, the index increased 1.5 percent in March to 102.9 but is 4.3 percent below a year ago.

NAR predicts that total existing-home sales in 2013 will increase 6.5 to 7 percent over 2012 to nearly 5 million sales this year, while the national median existing-home price is forecast to rise about 7.5 percent.

© 2013 Florida Realtors®

Home equity loans: They’re back

NEW YORK – April 26, 2013 – As housing values rise, home-equity loans and lines of credit are staging a comeback, MSN Money reports.

In late 2008 as the housing market slowed dramatically, home-equity borrowing came to nearly a standstill as lenders became cautious because values were falling so quickly. By late 2011, nearly a third of U.S. homes with mortgages owed more on their loan than their house was worth.

In markets where home prices are rising, though, lenders are starting to issue equity loans once again. New players have jumped in too. For example, Discover Financial Services announced in March that it would offer fixed-rate home-equity loans of $25,000 to $100,000. The offer is for current customers but will be extended to others eventually.

While lenders may be more willing to extend a home-equity loan, they’re more cautious than in the past. Lending on 100 percent of owners’ equity is now rare, and borrowers won’t likely get more than 85 percent of a home’s value.

Source: “Home-equity loans make quiet comeback,” MSN Money (April 23, 2013)

© Copyright 2013 INFORMATION, INC. Bethesda, MD (301) 215-4688

Where U.S. economy has, and hasn’t, yet recovered

WASHINGTON (AP) – April 25, 2013 – From household wealth to spending at stores, many of the U.S. economy’s vital signs have recovered from the damage done by the Great Recession.

Home foreclosures and layoffs have dropped to pre-recession levels. Economic output has rebounded. And the Dow Jones industrial average is in record territory.

So is the economy back to full health? Not quite.

Not with unemployment at 7.7 percent and with 3 million fewer jobs than when the recession began. And while the housing market is improving, that engine of economic growth and job creation still has far to go before it can be declared healthy.

Perhaps the best way to think about the U.S. economy is this: After five painful years, it’s nearly back to where it started when the recession began. What’s different now is that the trends are much healthier. Gone are the fears that the economy could fall into another recession.

“We’ve made a lot of progress,” says Michael Gapen, senior U.S. economist at Barclays Capital.

The recession officially began in December 2007. It ended in June 2009. Here’s a look at ways in which the economy has returned to pre-recession levels and ways it hasn’t:

What’s back:

• Household wealth. Americans lost $16 trillion in wealth during the recession, mainly because home values and stock prices sank. Those losses have now been reversed. Household “net worth” reached $66.1 trillion in the final three months of 2012, according to the Federal Reserve. That was just 2 percent below the peak reached in the fall of 2007. And steady increases in stock prices and home values so far this year have allowed Americans as a whole to regain all their lost wealth, though many individual families have yet to recover. Increased net worth is vital to the economy because it typically drives more spending. Net worth equals the value of homes, investments, bank accounts and other assets, minus debts such as mortgages, student loans and credit card balances.

• Retail sales. Just as household wealth has recovered, so has consumers’ willingness to spend more to shop, eat out or go on vacation. That trend has spurred job growth at retailers and restaurants. Retail sales totaled $421.4 billion in February. Adjusted for inflation, that was nearly 18 percent above the recession low and just 0.7 percent below the record level in November 2007.

• Layoffs. The job market remains weak by some measures. But consider this: If you have a job, you’re less likely to lose it than at any other point in at least 12 years. That marks a sharp turnaround from the depths of the recession, when layoffs soared – from 1.8 million in December 2007 to 2.6 million in January 2009. In January this year, employers cut 1.5 million jobs – the lowest monthly total in the 12 years the government has tracked such data. That explains why the number of people seeking first-time unemployment benefits each week has plummeted. That number reached 667,000 one week in March 2009, the most in nearly 25 years. Last month, weekly applications averaged 343,000, about the same as in November 2007, just before the recession began.

• Foreclosures. Among the most visible signs of the recession were the “Foreclosure” and “Bank Owned” signs that dotted housing developments around the country. But home prices have been rising steadily. Foreclosures have sunk back to pre-recession levels. Banks repossessed 45,000 homes in February 2013, according to RealtyTrac, a foreclosure listing firm. That was the fewest since September 2007 and was down from a peak of 102,000 in March 2010.

• Stock market. Last month, the stock market finally regained the painful losses investors suffered during the recession. The Dow Jones industrial average closed at an all-time high of 14,253.77 on March 6. That topped its previous peak of 14,164.53 in October 2007.

• GDP. America’s economy is producing more goods and services than before the recession began. In the final three months of 2007, it produced an annual rate of $13.3 trillion in goods and services, a record high. That figure had shrunk to $12.7 trillion when the recession ended. It then began to recover. The U.S. gross domestic product, the broadest gauge of production, regained its previous peak by the end of 2011. And in the final three months of 2012, GDP was $13.7 trillion. Still, that gain comes with an asterisk, because the population has grown. Viewed on a per capita basis, GDP at the end of 2012 remained 1.5 percent below its pre-recession peak.

What’s not back:

• Total jobs. The United States still has many fewer jobs than in December 2007. The recession eliminated 8.7 million jobs. Since then, 5.7 million jobs have come back, leaving the economy 3 million short. And the population of Americans 16 and older has grown by 13 million since then. As a result, a much smaller proportion of people are either working or looking for work than before the recession. The labor force participation rate – the percentage of adults with a job or seeking one – has sunk from its pre-recession level of 66 percent to 63.5 percent in February. That matches a 30-year low.

• Unemployment rate. When the recession began, unemployment was 5 percent. Now, it’s 7.7 percent. Probably no figure better illustrates the downturn’s lingering damage. The unemployment rate is well below the recession’s peak of 10 percent in October 2009 but far above the 5 percent to 6 percent range associated with a healthy economy. Twelve million people are unemployed. Yet that figure doesn’t include 2.6 million people without jobs who have stopped looking for one. An additional 8 million work part time but want full-time work. Combining all those groups, 22.6 million people are either unemployed or “underemployed.” They represent an underemployment rate of 14.3 percent, down from a peak of 17.1 percent in April 2010.

• Housing. The housing market has been recovering for about a year but still hasn’t reached normal levels. Previously occupied homes were sold in February at a seasonally adjusted annual rate of about 4.98 million. An annual rate of about 5.5 million would be healthy. In the recession, sales had bottomed at 3.8 million. And last month, builders began work on a seasonally adjusted annual rate of 917,000 homes. That’s way up from a recession low of 478,000. But it’s still far from a healthy annual rate of roughly 1.5 million. Prices have risen nearly 9 percent since bottoming in March 2012, according to the Standard & Poor’s/Case-Shiller index, but they remain 29 percent below their pre-recession peak. Still, housing differs from other sectors: Its peaks occurred during a housing bubble that eventually burst. Few expect or even want prices to return to those levels soon. Most economists welcome the steady but modest growth housing has achieved in recent months.

• Auto sales. Auto sales have nearly returned to where they were. Americans bought cars at an annual rate of nearly 16 million in December 2007. Sales plunged to 10.4 million in 2009. In March this year, the annual sales pace was 15.3 million. The rebound has stimulated hiring and restored the once-bankrupt General Motors and Chrysler to health.

• Industrial output. U.S. factories aren’t back to their pre-recession peak of output. But they’re getting closer. Production was about 5 percent lower in February than in December 2007, according to the Federal Reserve. The Fed also tracks industrial output, a broader measure that includes mining and utilities. That figure is just 1.8 percent below its pre-recession peak.
 Copyright © 2013 The Associated Press, Christopher S. Rugaber, AP economics writer.

Later marriage trends don’t postpone homeownership

NEW YORK – April 24, 2013 – A study conducted by Harris Interactive for Coldwell Banker Real Estate looked a changing marriage trends in America and how they impact the purchase of a first home.

According to the study, the timing of a first-home purchase hasn’t changed a lot over the years, but an upswing in later marriages means more couples are buying a home before they walk down the aisle – if they ever do – or making a purchase earlier in the marriage.

About one in four married couples between the ages of 18 to 34 purchased their first home together before their wedding date, compared to 14 percent of those ages 45 and older. According to the survey, 35 percent of all married couples purchased their first home together by their second wedding anniversary; 80 percent of these married homeowners said it strengthened their relationship more than any other purchase.

“What we’re seeing is that young couples are switching up the order and purchasing their first home regardless of whether or not they have set a wedding date,” says Dr. Robi Ludwig, a psychotherapist and Coldwell Banker lifestyle correspondent.

“This is a huge movement within the American culture,” Ludwig adds. “While younger generations may be focusing more on their career, and in turn waiting longer to get married and have children, they are not delaying their dream of homeownership.”

Other survey trends

• 17 percent of all married couples surveyed purchased a home together before their wedding day.

• 72 percent of married Americans in the South waited until after they were married to purchase a home, compared to 60 percent of Americans in the Northeast.

• Only 16 percent of married U.S. adults have not purchased a home together with their current spouse.

Ludwig says the tasks involved with a home purchase can strengthen a marriage. “(Married couples) not only learn about each other’s wishes and dreams during this process, but they also learn how to be practical with each other and compromise,” he says. “Buying a home has more of an impact on a couple’s relationship than any other purchase they will ever make.”

Impact of home buying on a marriage

• 93 percent of homeowners who purchased their first home while married always planned on owning a home after marrying.

• 80 percent said purchasing a home with their spouse did more to strengthen their relationship as a couple and family than any other purchase they have made together.

• Over one-third of married homeowners (35 percent) wish they had taken the plunge (into homeownership) sooner than they actually did.

Ludwig offers the following tips for couples buying their first home together:

1. Decide “needs” vs. “wants,” and be willing to compromise. Ludwig says it’s common for a couple to uncover conflicting values, interests, likes, dislikes and tastes to come that create tension. But no one gets everything on their checklist, so it’s important to compromise to get a home that pleases both people. Patience, understanding, compassion and compromise are key.

2. Work together to prioritize what’s important in a home. Make an independent list and compare notes. Even the closest couples are still two people with separate ideas and agendas. Searching for a home can bring up a couple’s different priorities and ideas about life. Working together to decide what is best for a combined future strengthens the bond between individuals and prepares couples to effectively deal with future disagreements.

3. Be open, honest and organized with finances. This includes the ability to talk about personal savings, debts, budgets and credit ratings. Money is one of the leading causes of marital discord.

4. Think about the future for three, five and even 10 years down the road. Before buying a home, talk about plans for careers, having a family, and what that means in terms of neighborhood and space. For some people, talking about their future needs creates anxiety. Support each other if it does.

© 2013 Florida Realtors®

New-homes sales rise 1.5% in March to 417K

WASHINGTON (AP) – April 23, 2013 – U.S. sales of new homes rose in March to a seasonally adjusted annual rate of 417,000. The increase added to evidence of a sustained housing recovery at the start of the spring buying season.

The Commerce Department said Tuesday that sales of new homes increased 1.5 percent. The gain brought the level higher than February’s pace of 411,000, though below January’s 445,000 – the fastest pace since July 2008.

New-home sales are still below the 700,000 pace considered healthy by most economists. But the pace has increased 18.5 percent from 352,000 a year ago.

Most economists see more gains ahead, as housing is likely to remain a consistent driver of economic growth this year.

“With increasing signs of a softer U.S. economy springing up in the spring, we can take comfort in the resilience of the housing recovery,” said Jennifer Lee, senior economist at BMO Capital Markets.

Steady job creation and near-record-low mortgage rates are spurring more Americans to buy houses. The rise in demand is helping to boost sales and prices in most markets. Higher prices tend to make homeowners feel wealthier and encourage more spending.

A limited supply of both new and previously occupied homes has also helped boost prices.

The inventory of new homes for sale increased 2 percent in March to 153,000, the second straight gain. Still, that’s the equivalent of a 4.4-month supply at the current sales pace and historically lean, according to Jim O’Sullivan, chief U.S. economist at High Frequency Economics.

The median price of a new home rose to $247,000 in March. That’s 3 percent higher than a year ago.

The March sales gain came from a 20.6 percent increase in the Northeast and a 19.4 percent rise in the South. Sales fell 20.9 percent in the West, where problems of supply have hampered home buying. Sales were down 12.1 percent in the Midwest.

Sales of previously occupied homes dipped in March from February, according to the National Association of Realtors. Still, sales were 10.3 percent higher than a year earlier.

The Realtors’ group cited the low housing supply as a reason sales fell in March. But in a positive sign, the inventory of previously occupied homes increased for the second straight month. That suggests more sellers are confident that the recovery will continue and they can sell at a good price.

Low inventories have helped drive more construction of new homes.

U.S. homebuilders started work on more than 1 million new houses and apartments in March at a seasonally adjusted annual rate, the first time it had crossed that threshold in nearly five years. That reflected a surge in volatile apartment building.

Single-family home construction fell in March after reaching the fastest in nearly five years.

Still, a low supply of homes for sale is just one of several constraints that could limit sales. Since the housing bubble burst more than six years ago, banks have imposed tighter credit conditions and required larger down payments. That has made it harder for first-time homebuyers to qualify for the super-low mortgage rates that have resulted from the Federal Reserve’s efforts to ease credit.
 Copyright © 2013 The Associated Press, Martin Crutsinger, AP economics writer. All rights reserved.

Florida’s housing market on upswing in March

Related:

NAR: March existing-home sales slip from February due to tight inventory.

ORLANDO, Fla. – April 22, 2013 – In March, Florida’s housing market reported increased closed sales, more pending sales, higher median prices and a reduced inventory of homes for sale, according to the latest housing data released by Florida Realtors®.

“Florida’s housing market continues to demonstrate its recovery – March marks the 15th consecutive month that the statewide median sales prices for both single-family homes and for townhouse-condo properties rose year-over-year, according to Florida Realtors’ data,” said 2013 Florida Realtors President Dean Asher, broker-owner with Don Asher & Associates Inc. in Orlando. “The median price is up more than 15 percent for both single-family homes and for townhouse-condos.

“Meanwhile, buyer demand is increasing, but supply continues to be constrained in many areas. In March, the median days on market (the midpoint of the number of days it took for a property to sell that month) was 57 days for single-family homes and 61 days for townhouses and condos. That means 50 percent of homes on the market in Florida sell in two months or less.”

Statewide closed sales of existing single-family homes totaled 19,631 in March, up 9 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.

Meanwhile, pending sales – contracts that are signed but not yet completed or closed – for existing single-family homes last month rose 23.4 percent over the previous March. The statewide median sales price for single-family existing homes last month was $160,000, up 15.2 percent from the previous year.

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in February 2013 was $173,800, up 11.3 percent from the previous year. In California, the statewide median sales price for single-family existing homes in February was $333,880; in Massachusetts, it was $278,000; in Maryland, it was $224,048; and in New York, it was $220,000.

The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Looking at Florida’s year-to-year comparison for sales of townhouse-condos, a total of 9,957 units sold statewide last month, up 1.1 percent compared to March 2012. Meanwhile, pending sales for townhouse-condos last month increased 10.6 percent compared to the year-ago figure. The statewide median for townhouse-condo properties was $120,000, up 15.9 percent over the previous year. NAR reported that the national median existing condo price in February 2013 was $172,500.

The inventory for single-family homes stood at a 5.3-months’ supply in March; inventory for townhouse-condos was at a 5.8-months’ supply, according to Florida Realtors.

“We continue to be encouraged by the depth and breadth of the housing recovery,” said Florida Realtors Chief Economist Dr. John Tuccillo. “State numbers are up in virtually all important categories and down where they should be down. Even with the difficulty of access to financing for households, we still see the growth in the market continuing for at least the next 18 months.

“Inventory remains an issue, but this is fast becoming a sellers’ market and as sellers realize this, we expect inventories to rise as we approach the last quarter of 2103. Over the long term, we need to correct the imbalance between investors and owner-occupier households that has developed because of financing issues if the market is to prosper for a long time.”

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.57 percent in March 2013, down from the 3.95 percent average during the same month a year earlier.

To see the full statewide housing activity report, go to Florida Realtors website and click on the Research page; then look under Latest Housing Data, Statewide Residential Activity and get the March reports. Or go to Florida Realtors Media Center  and download the March 2013 data report PDFs under Market Data.

© 2013 Florida Realtors®

Fla. unemployment rate continues to fall

TALLAHASSEE, Fla. – April 19, 2013 – Florida saw 32,400 private-sector jobs created last month, according to data released this morning, knocking down the state’s unemployment rate 0.3 percentage points to 7.5 percent. It’s the strongest unemployment rate since October 2008.

“It is great news that our unemployment rate is below the national average at 7.5 percent and that we created more than 32,000 jobs in March,” Gov. Scott said in a release.

Over the month, the state had an increase of 32,400 private-sector jobs, meaning that 32,400 Floridians have been placed in new jobs and are earning wages. Florida’s job growth rate is faster both over the month and over the year than the nation. Since Dec. 2010, Florida added a total of 321,700 private-sector jobs.

March job data from Florida Department of Economic Opportunity

• Florida had 7,507,100 in March 2013, up 141,300 jobs year-to-year. It was the 32nd consecutive month with positive annual job growth following a three-year period of job losses.

• The leisure and hospitality industry gained the most jobs: 45,300 jobs year-to-year and 4.6 percent month-to-month.

• Other industries gaining jobs included trade, transportation, and utilities (+42,300 jobs, +2.8 percent); professional and business services (+25,100, +2.4 percent); private education and health services (+24,000 jobs, +2.2 percent); construction (+8,500 jobs, +2.5 percent); financial activities (+4,200 jobs, +0.8 percent); and other services (+3,200 jobs, +1.0 percent).

• Industries that lost jobs over the year include government (-8,400 jobs, -0.8 percent), manufacturing (-2,700 jobs, -0.9 percent), and information (-300 jobs, -0.2 percent).

• These industry job losses were partially due to declines in local government, miscellaneous durable goods manufacturing, and telecommunications.

Local unemployment statistics (Not seasonally adjusted)

• In March 2013, Monroe County (3.8 percent) had the state’s lowest unemployment rate, followed by Walton County (4.3 percent), Okaloosa County (4.8 percent), Alachua County (5.1 percent), and St. Johns County (5.3 percent). Many of the counties with the lowest unemployment rates were those with relatively high proportions of government employment. Strong population growth was also a contributing factor.

• Hendry County had the highest unemployment rate (10 percent) in Florida in March, followed by Flagler County (9.5 percent), Putnam County (9.4 percent), Miami-Dade County (9.2 percent), and St. Lucie County (8.8 percent).

Hendry County had the highest unemployment rate in the state mainly due to long-term losses in state government jobs. Hendry County was the only county in Florida with a double-digit unemployment rate in March. In February, three counties had jobless rates above 10 percent.

• Nineteen of 22 metro areas in the state had over-the-year job gains in March. The areas with the largest gains were Tampa-St. Petersburg-Clearwater (+35,900 jobs, +3.1 percent), Jacksonville (+16,700 jobs, +2.8 percent), and Ft. Lauderdale-Pompano Beach-Deerfield Beach (+14,500, +2.0 percent).

• Of the three metro areas experiencing over-the-year job declines, Panama City-Lynn Haven-Panama City Beach (-1,200 jobs, -1.6 percent) experienced the greatest decline followed by Palm Coast (-100 jobs, -0.5 percent) and Punta Gorda (-100 jobs, -0.2 percent).

For a complete breakdown on employment by area, visit the Florida Department of Economic Opportunity website. (Link underlined to: http://www.floridajobs.org/labor-market-information/labor-market-information-press-releases/monthly-press-releases)

© 2013 Florida Realtors®

Study: A smoker’s home can lower value up to 29%

KIRKLAND, Quebec, Canada – April 18, 2013 – A recent survey of Ontario real estate agents and brokers, sponsored by Pfizer Canada, found that smoking in the home could lower the value of property up to 29 percent.

“Smoking has a profound impact on how appealing a home is to a prospective buyer,” says David Visentin “It stains walls and carpets, and leaves a smell that can be hard to eliminate. Many prospective buyers are really put off by homes that have been smoked in, and they can be very challenging to sell.”

Visentin hosts “Love it or List it” on Canadian televisions’ W Network,  which also features "The Property Brothers," who will appear at the Florida Realtors Convention & Trade Expo Aug. 14-18, 2013.

Impact of smoking in the home: Beyond cosmetic
Almost half (44 percent) of the real estate agents and brokers surveyed said smoking in the home affects resale value. Of these, one-in-three (32 percent) said smoking in the home may lower the value by 10-19 percent and a further one-in-three (32 percent) said it may lower the value by 20-29 percent.

An overwhelming majority of Ontario real estate agents and brokers (88 percent) said it’s more difficult to sell a home where owners have smoked. More than half (56 percent) said most buyers are less likely to buy a home where people have smoked, and 27 percent went further and said most buyers are actually unwilling to buy a home where people have smoked.

© 2013 Florida Realtors®

Why New York Buyers Are Flocking to Miami

By Jennifer LeClaire | Miami

MIAMI—For all the talk of foreign buyers flocking to Miami to snap up condos, there’s another demographic that’s migrating south: New Yorkers. Indeed, multiple condo developers and sales teams are reporting a marked uptick in New York condo buyers returning to Miami.

At Palau in Sunset Harbour, the latest boutique condo bySMG Management, developers report that nearly 40 percent of buyers are from the United States, and a large number of those are from the Northeast and New York in particular. The majority of the rest accounting for local buyers.  

Meanwhile, Edgardo Defortuna, CEO of Fortune International, which is most recently developing Jade Signature in Sunny Isles Beach, reports an approximate 15% increase in New York buyers overall this year. And at The Ritz-Carlton Residences in Singer Island, where the developer recently announced 80% sales, the sales team reports that there have been 12 Northeast buyers in the last six months alone.  

Craig Studnicky of Related ISG, who is handling sales for The Related Group's Casa Costa, says that of the recent 65 sales, nearly one-third are from the Northeast. Even as far south as the Bahamas, where a new condo/hotel project is underway called French Leave Marina Village, developers are seeing strong interest from New York City and Northeast buyers and a return of Canadian buyers.

"Aside from the obvious reasons that New York buyers love South Florida—the ease of transit and the fabulous weather, I believe New Yorkers are, above all real estate deal experts, and South Florida is still an excellent value,” Ophir Sternberg, managing partner at Lionheart Capital, developer of The Ritz-Carlton Residences, tells GlobeSt.com. “For instance, our property in Palm Beach, The Ritz-Carlton Residences Singer Island, sells for between $700 to $900 per square foot.”

Indeed, there’s a value story to tell. Sternberg says a similar quality property with compatible location and services in New York would sell for around $3,000 square foot. If a buyer takes into account the state income tax savings by staying in a Miami condo six months and a day, the price is even lower."

“New Yorkers are buying now because Miami has really evolved over the last couple of years with restaurants, hotels, cultural institutions and new developments opening,” Defortnua adds. “New York buyers now make up about 25% of all luxury buyers, compared to around 10% last year.”

Defortuna expects many New York buyers at Jade Signature, where he assembled a team led by Swiss architecture firm Herzog & de Meuron, Parisian interior design firm PYR, and landscape architect firm Raymond Jungles. He says it was Fortune International's mission to deliver a product that the market has never experienced before in Miami—and he thinks the development reflects exactly that and will attract many New Yorkers.

For her part, Ann Nortmann, who handles sales of Palau in Sunset Harbour, sees many reasons for the resurgence of New York buyers in Miami Beach. It starts with the weather, beaches and entertainment but it goes beyond that.

“The price point in Miami Beach is compelling compared to other options buyers may be considering,” Nortmann says. “Sunset Harbour is unique in that it is a very walkable neighborhood that provides a lifestyle similar to New York living, with an urban center with retail amenities in the immediate area. The rejuvenation of this former industrial area to a trendy residential/retail neighborhood is a theme that has been prevalent in many areas of New York City."

Census Bureau: Nation’s rental vacancy rates down

WASHINGTON – April 16, 2013 – The rental vacancy rates for the nation declined from 8.4 percent in 2009 to 7.4 percent in 2011, according to one of two American Community Survey briefs covering the housing market released today by the U.S. Census Bureau. Approximately four times as many metro areas experienced declines in rental vacancy rates as those that experienced increases.

The share of U.S. households that rent rather than own increased from 34.1 percent in 2009 to 35.4 percent in 2011. Nearly a quarter of the nation’s metro areas saw a rise in renting households, while less than 3 percent of the nation’s metro areas saw a decline.

Rental Housing Market Condition Measures: A Comparison of U.S. Metropolitan Areas examines four characteristics of the rental housing stock using American Community Survey data collected in 2009 and 2011: gross rent, gross rent as a percentage of household income, rental vacancy rates, and renter share of total households.

When setting federal policy, a family is categorized as high rental if it spends 35 percent or more of household income on rent and utilities. In the study, the share of renters with high housing costs in the United States rose from 42.5 percent in 2009 to 44.3 percent in 2011. However, average rental rates in the United States declined from 2009 to 2011.

“While we saw a decrease in rental vacancy rates and pricing in some areas, the burden of rental costs on households increased across many parts of the nation,” says Arthur Cresce, assistant division chief for housing characteristics at the Census Bureau. “Factors such as supply and demand for rental housing and local economic conditions play an important role in helping to explain these relationships.”

Nationwide, only 11 metro areas reduced their shares of renters with high housing costs, while 62 metro areas increased their shares.

Among the 50 most populous metro areas, some of the heaviest rental costs were borne by renters in metro areas in Florida, California and Louisiana in 2011, despite rent declines between 2009 and 2011. These includeMiami with 55.7 percent of renters experiencing heavy rental costs. Orlando, Fla. (52.9 percent); Riverside, Calif. (52.2 percent); and New Orleans (51.3 percent), whose shares did not differ significantly from one another, followed closely.

Among the 50 most populous metro areas, only two became affordable for more renters – Richmond, Va., with a decline of 3.2 percentage points in the share of renters with high rental costs from 42.7 percent to 39.5 percent between 2009 and 2011, and Buffalo, N.Y., with a decline of 3 percentage points from 45.6 percent to 42.6.

Rental costs
• The median monthly rent plus the estimated cost of utilities (gross rent) was highest in San Jose, Calif. ($1,460) followed by Honolulu ($1,419).
• The lowest median monthly rent plus the estimated cost of utilities (gross rent) was $502 in Wheeling, W.Va., and $536 in Johnstown, Pa.
• Despite the large share of metro areas with declining vacancy rates, which could signal rent increases, 57 metro areas had gross rent declines and only 23 had gross rent increases.

Rental vacancy rate
• At 40.3 percent, the Myrtle Beach, S.C., metro area’s rental vacancy rate was the highest in the nation.
• Among the 50 most populous metro areas, the increase in the rental vacancy rate in Richmond, Va. (from 7.8 percent to 13.2 percent) was the largest, followed by Virginia Beach, Va. (from 6.2 to 8.5 percent) and St. Louis (from 6.5 to 7.9 percent).
• Among the 50 most populous metro areas, San Jose, Calif. (2.7 percent) and Milwaukee (3.5 percent), had the lowest rental vacancy rates but were not statistically different from each other.
 
Renter share of total households
• Among the 50 most populous metro areas, the areas with the highest share of renting households were Los Angeles (50.8 percent) and New York (48.9 percent).

Physical characteristics of housing

Another brief released today is Physical Characteristics of Housing. Based on American Community Survey data covering 2009 to 2011, it has statistics on basic physical and structural characteristics of the total housing inventory at the national level and metro level.

According to the American Community Survey, there were 131.8 million housing units in the United States on average from 2009 to 2011, with 81.1 million (61.5 percent) single-family houses not attached to another structure. In terms of current housing inventory in the U.S., more than 95 percent of the nation’s metro areas have detached, single-family houses as the primary housing structure. Only 6 percent of all housing units in the United States were newer houses (2005 or later), while older houses (before 1950) accounted for 19.3 percent of the total housing inventory.

Housing inventory
• Metro areas with the lowest shares of detached, single-family houses of the housing inventory were New York (36.3 percent), Naples, Fla. (40 percent) and Miami (42.3 percent).
• Three metro areas had mobile homes account for more than 25 percent of their housing inventory: Farmington, N.M. (32 percent), Yuma, Ariz. (29 percent) and Lake Havasu City, Ariz. (26.7 percent).

Newer/older houses
• Newer houses accounted for more than 10 percent of the housing inventory in 39 metro areas. Gulfport, Miss. (16.4 percent) was the only metro area with more than 15 percent of its housing inventory built in 2005 or later.
• Houses built before 1950 exceeded 45 percent of the housing inventory in Elmira, N.Y. (49.5 percent), Scranton, Pa. (48.8 percent), Johnstown, Pa. (47 percent), and Pittsfield, Mass. (46.9 percent).

© 2013 Florida Realtors®

Open House Weekend kicks-off homebuying season


ELKO, Nev. – April 15, 2013 – Among recent U.S. homebuyers, some 45 percent attended open houses in order to narrow their choices and find the best home for them.

House-hunters currently in the market, meanwhile, will have a similar opportunity during the Realtor Nationwide Open House Weekend taking place April 20 and 21, and sponsored by the National Association of Realtors® (NAR). Agents across the U.S. will be present at open house events to answer questions about local market conditions and the overall homebuying process.

“Buyers need to have a clear idea of what features are important to them and know where they are willing to compromise,” explains Lee Gurr of Coldwell Banker Algerio/Q-Team Realty in Elko County, Nev. – one of many brokerages across the country that are taking part in the event. “That is where visiting open houses can be helpful. Also, working with a Realtor can be a real asset. Realtors visit hundreds of homes with buyers each year, and have a unique understanding of what buyers value in their local markets.”

For more information on Nationwide Open House Weekend, go to NAR’s website.

Source: Elko Daily Free Press (NV) (04/14/13)

© Copyright 2013 INFORMATION, INC. Bethesda, MD (301) 215-4688

NAR’s Open House Weekend: 8 days away

WASHINGTON – April 12, 2013 – Potential homebuyers should be out in full force the weekend of April 20-21, 2013, as the National Association of Realtors® (NAR) promotes its annual Open House Weekend. Realtors who choose to participate can benefit from the advertising and join in on Saturday and Sunday next week.

NAR promotions

• RET Radio is promoting the event this weekend on their “Perfect Open House” show. Several association presidents will be interviewed about NAR’s Open House Weekend. The show can also be heard on the station’s website.
 
• Realtor.com has several Open House Weekend promotions, including an Open house productivity package to help market and promote open houses.  In addition, Realtor.com offers tips for buyers planning to tour open houses.  Realtor.com’s social media coverage has already started and will run through the event.
 
• NAR President Gary Thomas will record a video message about Open House Weekend next week that will be posted on Realtor.org.
 
• NAR will distribute a national press release on Friday, April 19.
 
• Twitter followers: The NOH hashtag is #NOHW13. NAR has already started promoting the event on social media channels.

Who attends open houses

NAR also released a synopsis of open house information taken from its latest Profile of Home Buyers and Sellers:

• Repeat buyers use open houses more frequently than first-time buyers, and they’re more likely to find their home from an open house.

• Mid-income buyers – those with income between $55,000 and $75,000 – are more likely to find a home through an open house compared to other incomes. However, as income increases, the use of open houses actually increases as well: Higher income buyers are walking into open houses, but not finding their home through them.

• Older buyers, 65 years and older, are more likely to find their home through an open house than other age groups. As age increases, the likelihood of using open houses as a search tool increases – 45 percent of buyers aged 45 to 64 used open houses, compared to only 28 percent of buyers aged 18 to 24.

• Buyers in the South are more likely to find a home through an open house compared to other regions.

• Buyers of new homes use open houses much more frequently then buyers of previously owned homes.

• Married couples and unmarried couples are more likely to walk through open houses then single buyers.

• Buyers who’s primary language in the home is not English are more likely to use open houses – 44 percent of buyers who’s primary language is English use open houses, compared to 59 percent who use a language other than English in the home. Similarly, buyers not born in the U.S. are more likely to use open houses as a search tool – 43 percent of those who were born in the U.S. use open houses compared to 57 percent of those who were not born in the U.S.

© 2013 Florida Realtors®

Canadians play big role in Fla. market rebound

SARASOTA, Fla. – April 11, 2013 – According to a report by BMO Financial Group, Florida’s housing market is on the rebound and Canadian Snowbirds are playing an important role in its recovery.

“Beyond the obvious attraction of great weather and beautiful beaches, there are two factors that make Florida real estate an especially good value for Canadians,” says Jack Ablin, BMO’s chief investment officer. “The first is that … the median priced home in Florida is nearly half than that in Canada. At the same time, the Canadian dollar is trading nearly 10 percent above ‘fair’ value versus the U.S. dollar, arming Snowbird shoppers with extra buying power.”

Report findings

• There is growing demand for Florida real estate from foreign buyers, most notably Canadians, who have helped support property prices.

• Canada is Florida’s No. 1 source of foreign tourists and the state’s No. 1 foreign buyer of real estate. In 2010, Canadians accounted for 36 percent of all real estate purchases by foreigners.

• More than 500,000 Canadians currently own property in Florida.

• A BMO report from 2012 found 16 percent of Canadians would consider buying a home south of the border.

• Of those considering property in the U.S. in 2012, 56 percent would do so to gain a vacation or secondary property; 44 percent cited affordability as a motivation; 29% viewed a U.S. home purchase as a long-term investment.

Where in Florida are Canadians buying?

The report outlines the key geographies in Florida where Canadians currently own real estate, based on a study by the National Association of Realtors®. They include:

• Sarasota-Bradenton-Venice (17 percent)
• Orlando-Kissimmee (13 percent)
• Miami-Ft. Lauderdale-Palm Beach (13 percent)
• Cape Coral-Ft. Myers (9 percent)
• Tampa-St. Petersburg (9 percent)
• Naples-Marco Island (9 percent)
• Other areas (30 percent)

© 2013 Florida Realtors®