Looking for 2009 Stonecrest Market Facts click HERE

Looking for 2009 Stonecrest Market Facts click HERE

Let’s take a look at some of the opportunities for today and the future of Florida’s real estate market.

1. Great prices. Statewide, the existing-home median sales price was $161,200 in the fourth quarter of 2008; a year earlier, it was $216,600 for a decrease of 26 percent.

2. The time is right. Home sales volumes are rising again – a clear signal that today’s “buyers market” may be changing soon. In fourth quarter 2008, statewide sales of existing single-family homes were up 13 percent compared to the same period last year, according to FAR statistics.

3. High inventory levels. Conditions are ideal for buyers to find their dream home. Inventory is still plentiful in all price ranges. But as sales volumes increase, inventory levels are likely to shrink. That reality translates into this advice for buyers: Don’t wait too long.

4. Low mortgage rates. Mortgage rates are still at the lowest levels since the 1960s. Lower rates multiply a buyer’s financial power. Even half a percent can make a sizeable difference. For example, on a $200,000 home, half of 1 percent could save the homeowner about $815 a year. Buyers can get more home for the money, which is a perfect scenario for families looking to upsize.

5. Incentives to buy. Federal, state and local housing programs can help buyers make that big purchase. The U.S. Housing and Economic Recovery Act of 2009 includes an $8,000 tax credit for first-time buyers. President Obama’s 2009 economic stimulus package also identifies and offers incentives to help home buyers with mortgages. Talk to a local mortgage lender about state and federal incentive programs.

How to get the $8,000 credit.

6. A long-term-growth state. Long-term economic and demographic trends continue to favor Florida. By 2010 economists forecast that Florida will be the third-most-populated state in the country. Florida’s population is expected to swell about 75 percent by 2030. Florida has been one of the 10 fastest-growing states in the U.S. for each of the past seven decades, and often the state has been in the top four, according to census data. Population growth will continue to provide a foundation for other economic development, such as new jobs and growing incomes.  All of these trends are positive indicators for real estate growth.

7. A migration magnet. Even with a slowdown in economic growth nationally, projections call for Florida’s population to return to more normal growth levels of about 317,000 a year between 2010 and 2020, similar to the 1980s and 1990s, said Stan Smith, director of the University of Florida’s Bureau of Economic and Business Research. That’s a lot of new buyers coming into the market.

8. A favored retirement destination. Over the long term, Florida stands to benefit from the migration of the aging Baby Boomer generation, roughly 80 million strong. Demographic studies show that the Sunshine State’s mild climate and outdoor amenities continue to make Florida a top retirement destination.

9. Business-friendly state. Florida has always been a business-friendly state – no state income taxes, plus incentives from local municipalities encourage businesses to set up shop here. Even with the current economic downturn nationwide, Florida leaders continue to keep business needs in the forefront of planning for the state's future. The Milken Institute/Greenstreet Real Estate Partners ranked five Florida communities on its “Best Performing Cities Index 2008,” which ranks U.S. metropolitan areas by how well they are creating and sustaining jobs and economic growth. Florida’s business climate ranked fourth among executives and sixth overall on “Site Selection” magazine’s 2008 Top State Business Climate rankings.

10. Positive investment outlook. Every quarter, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a survey of industry executives, market research economists, real estate scholars and other experts. In the third quarter 2008 survey, the investment outlook for various types of Florida properties remains steady. “People who have responded to our surveys have not lost their faith in Florida as a place to be and a place to invest,” said Dr. Wayne Archer, director. “We have 40 pages of comments from our respondents, and although the dominant theme is the disruption of financing, perhaps the second theme, as one person put it, is people being on the sidelines with full pads and helmets just waiting to jump back in.”

11. Homeownership has value. Realtors believe – and research supports that belief – that homeownership provides a variety of tangible and intangible benefits to the community and homeowners. Studies show that home equity is still the largest single source of household wealth, both for the individual homeowner and for homeowners as a group.

12. Greater sense of well-being. Owning a home leads to increased personal well-being. Research shows that people who own their own homes tend to show higher levels of personal esteem and life satisfaction, which in turn helps to make homeowners and their children more productive members of society.

13. Beneficial for kids. Studies show that children raised in homes owned by their families are more likely to stay in school and more likely to graduate high school. They’re also shown to have a higher lifetime annual income.

14. Community involvement. People who own homes have a strong financial stake in what happens to their community and tend to become more involved in community and civic affairs. Studies show that homeowners also interact more with their neighbors and communities. Compared to renters, homeowners join up to 41 percent more civic and/or nonprofessional organizations, such as the PTA or Scouts; vote in local elections 15 percent more often; enhance their neighborhoods with gardens 12 percent more often; attend church about 10 percent more often; and have a 3 percent greater chance of being interested in public affairs.

15. An unsurpassed lifestyle. Finally, let’s not forget the things that brought people to Florida in the first place, and will continue to attract them – beautiful beaches, fabulous weather and a friendly business climate, with no state income tax.  It’s no wonder that Florida’s combination of temperate climate, outstanding recreational amenities and economic opportunity has consistently put Florida in the top three of Harris Poll’s “Most Desirable Places to Live” survey.

 

Let’s take a look at some of the opportunities for today and the future of Florida’s real estate market.

1. Great prices. Statewide, the existing-home median sales price was $161,200 in the fourth quarter of 2008; a year earlier, it was $216,600 for a decrease of 26 percent.

2. The time is right. Home sales volumes are rising again – a clear signal that today’s “buyers market” may be changing soon. In fourth quarter 2008, statewide sales of existing single-family homes were up 13 percent compared to the same period last year, according to FAR statistics.

3. High inventory levels. Conditions are ideal for buyers to find their dream home. Inventory is still plentiful in all price ranges. But as sales volumes increase, inventory levels are likely to shrink. That reality translates into this advice for buyers: Don’t wait too long.

4. Low mortgage rates. Mortgage rates are still at the lowest levels since the 1960s. Lower rates multiply a buyer’s financial power. Even half a percent can make a sizeable difference. For example, on a $200,000 home, half of 1 percent could save the homeowner about $815 a year. Buyers can get more home for the money, which is a perfect scenario for families looking to upsize.

5. Incentives to buy. Federal, state and local housing programs can help buyers make that big purchase. The U.S. Housing and Economic Recovery Act of 2009 includes an $8,000 tax credit for first-time buyers. President Obama’s 2009 economic stimulus package also identifies and offers incentives to help home buyers with mortgages. Talk to a local mortgage lender about state and federal incentive programs.

How to get the $8,000 credit.

6. A long-term-growth state. Long-term economic and demographic trends continue to favor Florida. By 2010 economists forecast that Florida will be the third-most-populated state in the country. Florida’s population is expected to swell about 75 percent by 2030. Florida has been one of the 10 fastest-growing states in the U.S. for each of the past seven decades, and often the state has been in the top four, according to census data. Population growth will continue to provide a foundation for other economic development, such as new jobs and growing incomes.  All of these trends are positive indicators for real estate growth.

7. A migration magnet. Even with a slowdown in economic growth nationally, projections call for Florida’s population to return to more normal growth levels of about 317,000 a year between 2010 and 2020, similar to the 1980s and 1990s, said Stan Smith, director of the University of Florida’s Bureau of Economic and Business Research. That’s a lot of new buyers coming into the market.

8. A favored retirement destination. Over the long term, Florida stands to benefit from the migration of the aging Baby Boomer generation, roughly 80 million strong. Demographic studies show that the Sunshine State’s mild climate and outdoor amenities continue to make Florida a top retirement destination.

9. Business-friendly state. Florida has always been a business-friendly state – no state income taxes, plus incentives from local municipalities encourage businesses to set up shop here. Even with the current economic downturn nationwide, Florida leaders continue to keep business needs in the forefront of planning for the state's future. The Milken Institute/Greenstreet Real Estate Partners ranked five Florida communities on its “Best Performing Cities Index 2008,” which ranks U.S. metropolitan areas by how well they are creating and sustaining jobs and economic growth. Florida’s business climate ranked fourth among executives and sixth overall on “Site Selection” magazine’s 2008 Top State Business Climate rankings.

10. Positive investment outlook. Every quarter, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a survey of industry executives, market research economists, real estate scholars and other experts. In the third quarter 2008 survey, the investment outlook for various types of Florida properties remains steady. “People who have responded to our surveys have not lost their faith in Florida as a place to be and a place to invest,” said Dr. Wayne Archer, director. “We have 40 pages of comments from our respondents, and although the dominant theme is the disruption of financing, perhaps the second theme, as one person put it, is people being on the sidelines with full pads and helmets just waiting to jump back in.”

11. Homeownership has value. Realtors believe – and research supports that belief – that homeownership provides a variety of tangible and intangible benefits to the community and homeowners. Studies show that home equity is still the largest single source of household wealth, both for the individual homeowner and for homeowners as a group.

12. Greater sense of well-being. Owning a home leads to increased personal well-being. Research shows that people who own their own homes tend to show higher levels of personal esteem and life satisfaction, which in turn helps to make homeowners and their children more productive members of society.

13. Beneficial for kids. Studies show that children raised in homes owned by their families are more likely to stay in school and more likely to graduate high school. They’re also shown to have a higher lifetime annual income.

14. Community involvement. People who own homes have a strong financial stake in what happens to their community and tend to become more involved in community and civic affairs. Studies show that homeowners also interact more with their neighbors and communities. Compared to renters, homeowners join up to 41 percent more civic and/or nonprofessional organizations, such as the PTA or Scouts; vote in local elections 15 percent more often; enhance their neighborhoods with gardens 12 percent more often; attend church about 10 percent more often; and have a 3 percent greater chance of being interested in public affairs.

15. An unsurpassed lifestyle. Finally, let’s not forget the things that brought people to Florida in the first place, and will continue to attract them – beautiful beaches, fabulous weather and a friendly business climate, with no state income tax.  It’s no wonder that Florida’s combination of temperate climate, outstanding recreational amenities and economic opportunity has consistently put Florida in the top three of Harris Poll’s “Most Desirable Places to Live” survey.

 

 

The Perfect Storm

RE/MAX's Dave Liniger talks about real estate's "perfect storm"
Dave Liniger, is the co-founder and chairman of real estate brokerage giant RE/MAX, with RE/MAX CEO Margaret Kelly. 

On this real estate downturn compared with past ones
"This one is probably more widely spread throughout the entire country, but I don't think it's nearly as bad as the market we had in 1985-1986." By "we," he meant people in Denver, where he and his wife Gail founded RE/MAX in 1973, and other markets where the regional economy depended on the energy industry. In the mid-1980s, falling oil and natural gas prices combined with still-high interest rates to devastate the real estate business in those areas even while the rest of the country kept motoring along.

On the causes of the bust
"The loosening of the money supply and the unreal low interest rates that Greenspan allowed to happen created an unsustainable boom."

On when it will end
"This correction is going to last at least through 2008 and probably into 2009." The National Association of Realtors says that when there are 6 months of housing inventory, you have something close to a market in equilibrium. "For the U.S. as a whole, inventory is now at 10 months. In markets like San Diego and Las Vegas it's 14 to 16 months."

On why it will last so long
1) "Credit standards have tightened significantly, and you're not going to have a subprime market" for a while.
2) "The builders overbuilt. They swore they would never do this again." Builders had tried to avoid past excesses by not constructing houses until they had buyers. But now lots of investor/buyers are walking away from their down payments. "Builders ended up with a tremendous amount of inventory they thought was sold."
3) Lots of foreclosed properties are coming on the market and will continue to do so.
"These three factors are creating a perfect storm, meaning this market is the one we're going to have for the foreseeable future." Still, there will probably be 5 million resales this year and 1 million new homes sold, and about the same amount next year. "That's as good as 1999-2000. It's just not the boom we had."

On why he is more pessimistic than the people at the National Association of Realtors
"The NAR is a fabulous trade association whose job is to protect the industry and its constituent members. I've always found most trade organizations to be overly optimistic in assuming that if they put a positive spin on things there will be a positive outcome. ... The NAR keeps saying we're bottoming out, and every month for seven months they've had to change their forecast."

On slowing growth rates in Florida
Baby boomers from the Northeast aren't moving there in droves like their parents did when they retired. Many "have been buying places within 250-300 miles of their old homes." Also, "South Carolina, Georgia and Alabama have the climate, cheaper houses and lower tax rates. Migration into Florida has slowed significantly."

On the longer-term future for real estate
"I think the future is quite predictable. There is no difference between this downturn and every other downturn I've experienced in 40 years in the business. When this inventory gets worked off, prices will go up again. Not like they did in the last five years, but up."

And finally, a quote from Margaret Kelly
"We haven't had a buyer's market like this in years."
2010 is expected to be the highest amount of short sales and foreclosures to hit the market.
This is the best time to buy in years!

 

 

 

The Perfect Storm

RE/MAX's Dave Liniger talks about real estate's "perfect storm"
Dave Liniger, is the co-founder and chairman of real estate brokerage giant RE/MAX, with RE/MAX CEO Margaret Kelly. 

On this real estate downturn compared with past ones
"This one is probably more widely spread throughout the entire country, but I don't think it's nearly as bad as the market we had in 1985-1986." By "we," he meant people in Denver, where he and his wife Gail founded RE/MAX in 1973, and other markets where the regional economy depended on the energy industry. In the mid-1980s, falling oil and natural gas prices combined with still-high interest rates to devastate the real estate business in those areas even while the rest of the country kept motoring along.

On the causes of the bust
"The loosening of the money supply and the unreal low interest rates that Greenspan allowed to happen created an unsustainable boom."

On when it will end
"This correction is going to last at least through 2008 and probably into 2009." The National Association of Realtors says that when there are 6 months of housing inventory, you have something close to a market in equilibrium. "For the U.S. as a whole, inventory is now at 10 months. In markets like San Diego and Las Vegas it's 14 to 16 months."

On why it will last so long
1) "Credit standards have tightened significantly, and you're not going to have a subprime market" for a while.
2) "The builders overbuilt. They swore they would never do this again." Builders had tried to avoid past excesses by not constructing houses until they had buyers. But now lots of investor/buyers are walking away from their down payments. "Builders ended up with a tremendous amount of inventory they thought was sold."
3) Lots of foreclosed properties are coming on the market and will continue to do so.
"These three factors are creating a perfect storm, meaning this market is the one we're going to have for the foreseeable future." Still, there will probably be 5 million resales this year and 1 million new homes sold, and about the same amount next year. "That's as good as 1999-2000. It's just not the boom we had."

On why he is more pessimistic than the people at the National Association of Realtors
"The NAR is a fabulous trade association whose job is to protect the industry and its constituent members. I've always found most trade organizations to be overly optimistic in assuming that if they put a positive spin on things there will be a positive outcome. ... The NAR keeps saying we're bottoming out, and every month for seven months they've had to change their forecast."

On slowing growth rates in Florida
Baby boomers from the Northeast aren't moving there in droves like their parents did when they retired. Many "have been buying places within 250-300 miles of their old homes." Also, "South Carolina, Georgia and Alabama have the climate, cheaper houses and lower tax rates. Migration into Florida has slowed significantly."

On the longer-term future for real estate
"I think the future is quite predictable. There is no difference between this downturn and every other downturn I've experienced in 40 years in the business. When this inventory gets worked off, prices will go up again. Not like they did in the last five years, but up."

And finally, a quote from Margaret Kelly
"We haven't had a buyer's market like this in years."
2010 is expected to be the highest amount of short sales and foreclosures to hit the market.
This is the best time to buy in years!