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March 2006

Florida Home Sales Ease in February; Statewide Median Price Continues Rise

By Leanne Paynter | 10:18 AM on Mar. 23, 2006 | Florida Real Estate Blog

 
Rising inventory levels and still-low mortgage rates continued to affect Florida's housing market,, which is adjusting to a better balance between buyers and sellers following a five-year run of record-pace sales. Statewide, sales of single-family existing homes totaled 13,539 in February compared to 16,916 homes a year ago, for a 20 percent decrease, according to the Florida Association of Realtors® (FAR).

Realtors from across the state report that the supply of homes available for sale in their markets is improving, offering buyers more housing opportunities. The statewide median price for single-family existing homes last month was $244,200, up 24 percent from the February 2005 statewide median of $197,700.

In February 2001, the statewide median sales price was $118,200, which shows an increase of about 106 percent over the five-year period, according to FAR records. The median is a typical market price where half the homes sold for more, half for less. Nationally, the median sales price for existing single-family homes in January was $210,500, up 13.1 percent from January 2005.

Sales of existing condominiums in Florida also decreased last month, with a total of 4,342 condos sold statewide compared to 5,643 in February 2005 for a 23 percent decline, according to FAR. The statewide median sales price for condos rose 11 percent to $218,700 last month; a year ago, it was $197,000. The national median existing condo price was $216,900 in January 2006.

Along with the University of Florida Real Estate Research Center, the Florida Association of Realtors began compiling data on closed condo sales for comparison purposes in 2005; the condo data series began in January 2006.

Favorable mortgage rates continued to spark buyers' interest in markets across the state. Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.25 percent, up from the 5.63 percent average rate in February 2005. FAR's sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state's larger markets, the Jacksonville Metropolitan Statistical Area (MSA) reported a total of 1,200 single-family existing homes sold in the area in February compared to 1,218 homes a year ago for a 1 percent decrease. The median sales price rose 14 percent to $196,200; a year ago, it was $171,800.  

As for smaller markets in Florida, the Tallahassee Florida MSA, reported strong resales activity last month with a total of 330 single-family homes changing hands compared to 298 homes a year ago for an increase of 11 percent. The area's median sales price rose 15 percent to $185,800; a year ago, it was $161,300. 

Two charts showing statistics for Florida and its 20 MSAs are attached. One chart compares the volume of existing, single-family home sales and median sales prices in February 2006 to February 2005, based on Realtor transactions. The second chart compares the volume of existing condo sales and median sales prices in February 2006 to February 2005, based on Realtor transactions.

Single-Family  PDF  HTML

Condominium  PDF  HTML

© 2006 Florida Association of REALTORS®

Florida Homes Have International Appeal

By Leanne Paynter | 7:38 AM on Mar. 23, 2006 | Florida Real Estate Blog

International buyers are major players in the Florida residential real estate market, accounting for 15 percent of total home sales, according to a new joint study conducted for the Florida Association of Realtors® (FAR) by the National Association of Realtors (NAR). For a long time, anecdotal evidence from Realtors® has suggested that international buyers play a sizable role in Florida home sales, but this study marks the first attempt to quantify the trend. 

Of the 986 Realtors who participated in the 2005 Profile of International Home Buyers in Florida survey, 87 percent reported that they did at least one home sale transaction with international buyers in the previous 12 months (between May 2004 and May 2005). Two thirds -- 66 percent -- of those Realtors who brokered foreign-buyer purchases noted that one to four of all their transactions were with international clients. Altogether, the Realtors surveyed closed 1,844 home sale transactions to non-U.S. buyers. 

Highlights of the survey findings include: 

Florida Rental Properties and Screening Tenants

By Leanne Paynter | 7:53 PM on Mar. 22, 2006 | Florida Real Estate Blog

Do you own investment property in Florida? It's important to remember that tenant screening when trying to rent out your real estate investment properties can be fraught with potential liability. Major risks include violating federal acts such as the Federal Fair Housing Act or the Federal Credit Reporting Act. The Fair Housing Act identifies seven protected classes: religion, national origin, race, ancestry, sex, familial status and disability. The Credit Reporting Act requires that if you turn potential tenants down you are required to provide them with a written notice explaining why they were turned down if the reason was to any extent based on their credit report.

To reduce your liabilities and increase your odds of getting good tenants for your Florida investment properties, consider using a property management company or an objective third party (such as a screening company) to handle the screening of your tenants.

Articles for further reading:

• When You Screen Tenants, Make Sure the Law is on Your Side
• Fair Housing: What Does It Really Mean?
• Property Management: Good Investment?

Florida Home Prices

By Leanne Paynter | 11:15 AM on Mar. 22, 2006 | Florida Real Estate Blog

Florida State Facts

By Leanne Paynter | 10:08 AM on Mar. 22, 2006 | Florida Real Estate Blog

• Florida Capital: Tallahassee
• Number of Counties: 67
• Florida became the 27th state of the U.S. in 1845.
• Florida Population: 15,982,378 (2000 Census)
• Florida is the 4th most populated state in the U.S.
• Florida's Major Industries: tourism is first, followed by agriculture,
  then banking, electronics, plastics, construction, and real estate.
• Florida has 1197 miles of coastline and 663 miles of beaches.
• The highest point in Florida is Britton Hill which is located in Lakewood, FL 
  (Walton County) and is Florida's highest elevation at 345 feet above sea level.
• Florida's geographic center is 12 miles NW of Brooksville, FL (Hernando County).
• The St. Johns River is the longest river in Florida, measuring 273 miles.
• Lake Okeechobee is the largest lake in Florida at 700 square miles.

Protect Your Home While You Travel

By Leanne Paynter | 10:12 AM on Mar. 10, 2006 | Florida Real Estate Blog

Is spring fever prompting you to head for the beaches or some other vacation getaway?  If you're planning to travel during the spring holidays this year, you can help protect your home while you're away by following these tips from the Florida Association of Realtors®:

• Make it look like you're home. Install timers on interior lights so they turn on and off periodically. Many timers cost less than $25. Some more costly products are capable of varying the time that your lights turn on. Also consider leaving your radio on and tuned to an all-news or talk-show station.

Home Energy Analysis / Energy Conservation Tips

By Leanne Paynter | 1:51 PM on Mar. 9, 2006 | Florida Real Estate Blog

There's been a lot of talk lately about how much our home energy bills have risen. To find out if your energy use is above average, take 5 minutes to complete this home energy analysis. To perform this worthwhile test you'll need to know your home's age, square footage, number of occupants, and energy bill totals for a consecutive 12-month period (1 year).

Here's a breakdown of what the typical energy bill pays for:

• 45% - Heating and Cooling
• 15% - Other*
• 11% - Water Heater
• 10% - Clothes Washer & Dryer
• 7% - Lighting
• 6% - Refrigerator
• 2% - Dishwasher
• 2% - TV / VCR / DVD
• 2% - Computer & Monitor

* "Other" represents an array of household products including stoves, ovens, microwaves, and other small appliances. Individually, these products account for no more than about 2% of a household's energy bills. Source: EnergyStar.gov

Wondering what to do to reduce your home's energy consumption? Here are some resources to assist you:

• Home Energy Checklist for Action
• Energy Savers: Tips on Saving Energy and Money
• "Ask an Energy Expert" free service, US Dept. of Energy
• Home Energy Saver: The First Web-Based
  Do-It-Yourself Energy Audit Tool
• Swimming Pool Heating

An Energy Efficient Mortgage?

By Leanne Paynter | 1:46 PM on Mar. 9, 2006 | Florida Real Estate Blog

Chances are you've never heard of one. According to the EnergySavers.gov website, "Energy Efficient Mortages (EEMs) recognize that reduced utility expenses can permit a homeowner to pay a higher mortgage to cover the cost of the energy improvements on top of the approved mortgage. FHA EEMs provide mortgage insurance for a person to purchase or refinance a principal residence and incorporate the cost of energy-efficient improvements into the mortgage. The borrower does not have to qualify for the additional money and does not make a downpayment on it. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, or savings and loan association, and the mortgage is insured by HUD."

If you are buying a Energy Star-certified home or are considering making energy-efficient improvements to your home, learn more about FHA Energy Efficient Mortages and the eligibility requirements.

Why Choose an e-PRO Certified RealtorŪ?

By Leanne Paynter | 1:25 PM on Mar. 9, 2006 | Florida Real Estate Blog

e-PRO is the mark of an Internet savvy REALTOR®. e-PROs are familiar with marketing to a global audience via e-mail and the Internet. Only members of the National Association of REALTORS® can become e-PROs after taking an online course that takes an average of 20 hours to complete and includes various assignments to ensure the candidates' comprehension of the subject matter. In January 2002 Leanne Paynter was awarded the e-PRO Internet Professional Certification by the National Association of REALTORS® for her expertise in Internet-based marketing and business practices.

Tips for a Successful Garage Sale

By Leanne Paynter | 1:14 PM on Mar. 9, 2006 | Florida Real Estate Blog

Spring is just around the corner and this is a great time to plan for and hold a garage sale (or yard sale). Although a successful garage sale takes good planning, time and effort, the benefits usually make it worthwhile. It can help declutter your home and depending on the quantity and quality of the items you put up for sale, it has the potential to be reasonably profitable.

If you are planning on putting your Florida home on the market in the near future, consider having a garage or yard sale to make your move lighter as well as help potential home buyers see the amount of (not lack of) storage space in your home. Perhaps you'll even decide to use the profits from the garage sale to replace a stained carpet or an old appliance, or pay for any necessary repairs you know would show up on a home inspection report.

Most local newspapers charge a nominal amount for anyone wanting to advertise a garage sale in the classified section.

More articles for tips on having a successful garage sale:

• Garage Sales: Minding Your Manners
• Garage Sales II: The 'Rules' For Sellers
• How to Hold a Successful Garage Sale
• The High and Low-Tech of Yard Sales

Florida Housing Market Update

By Leanne Paynter | 11:58 AM on Mar. 6, 2006 | Florida Real Estate Blog

The Florida Association of Realtors announced that Florida's housing market showed strong price gains in January even while sales eased off the last few year's record pace.

Coming off several years of blistering home sales at a record pace, Florida's housing sector followed the national trend in January and showed signs of some market adjustments, according to the Florida Association of Realtors® (FAR). Still, the statewide median sales price for existing single-family homes last month rose 21 percent to $248,600; a year ago, it was $205,100.

 

Housing industry analysts nationwide noted it may take a while for home price growth to cool, following a long period of short supply and sellers accustomed to exceptional price gains. In January 2001, the statewide median sales price for single-family homes was $115,800, which means a gain of about 114.6 percent over the five-year-period, according to FAR records.

In recent months, the inventory of Florida homes for sale has increased, giving buyers more choices.

© 2006 Florida Association of REALTORS®

Home Improvement Tips: Cost vs. Value

By Leanne Paynter | 1:49 PM on Mar. 5, 2006 | Florida Real Estate Blog

As a Florida Realtor, I'm occasionally asked which home improvements provide the greatest return on investment (ROI).  My answer really depends on several factors and in order for me to provide useful advice, I must be familiar with the property in question as the options can vary somewhat from house to house.  Having said that, there are a few rules of thumb that are rather standard no matter what the property.

Generally speaking, kitchen and bathroom improvements will provide sellers with the greatest resale value.  However, this does not mean it must be a complete makeover.  Sometimes replacing items such as flooring, countertops, sinks, faucets, cabinet hardware and/or lighting fixtures can make a room look considerably more updated than before.  Applying a fresh coat of neutral-colored paint is among the easiest and least expensive improvements you can make to any room.  On the outside of the property, well-maintained front yard landscaping can also provide a good return on investment. 

Another factor to consider when deciding what home improvements to make is the neighborhood the property is located in. Many real estate investment books advise home buyers and real estate investors to purchase the worst home in the best neighborhood in order to get the best value for their money.  Keeping this in mind, you don't want to over-improve your home or landscaping so that it becomes the best house in the neighborhood unless you are doing it for your own enjoyment and not for resale value.

The suggestions in this article can be useful even if you own a condo. If you are thinking of placing your Florida condo for sale, it helps to know what types of improvements or upgrades your neighbors have made before deciding what, if any, updating you will make to your own condo before selling.  The older the condo building is, the more useful this knowledge and research will be to you.

High on the list of things to take into account when making decisions about home improvements is whether you will be selling during a buyer's or seller's market.  In the hot seller's market that we experienced in recent years, I found that even properties that were not in good condition were selling quickly, sometimes at or near full price.  However, now that the market has cooled down somewhat and there are more properties on the market for buyers to choose from, buyers have the luxury of being pickier and expect more for their money.

Articles for further reading:

How To Increase The Value Of Your Home through Landscaping

By Leanne Paynter | 7:06 PM on Mar. 3, 2006 | Florida Real Estate Blog

We've all heard it before: first impressions are lasting impressions.  If you're planning on selling your Florida home in the near future, one way to increase your home's curb appeal as well as your Florida home's value is through landscaping.  In this article, we'll concentrate on the front yard since that's among the first things a prospective home buyer will notice as they pull up to your home. 

At a minimum, the lawn should be free of weeds, fertilized when appropriate, mowed and watered regularly and any patchy areas should be replaced with new grass or sod.  Any dead or dying plants, shrubs, etc. should be removed or replaced.  While mature trees can be great providers of shade and help reduce home energy costs, they should be pruned back if they touch your home or thinned out if they shade such a large area that grass won't grow under their branches.  Applying a fresh layer of mulch around trees, plants and in flower beds is one of the quickest and least expensive ways to improve your home's curb appeal.  Finally, placing a nice container full of flowering plants next to the front door makes for an inviting entrance.

Articles for further reading:

• Numerous Ways To Spruce Up Your Landscaping Before You Sell
• Grass: Just Say 'Yes!'
• Learning to Mulch

REALTORŪ or Real Estate Agent? You choose.

By Leanne Paynter | 8:32 AM on Mar. 2, 2006 | Florida Real Estate Blog

Most people believe that those two terms can be used interchangeably. However, they do not carry equal significance for property buyers and sellers. The term REALTOR® is a Registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® (N.A.R.) and subscribes to it's strict Code of Ethics. Since 1908 the N.A.R. has been working toward improving the benefits of home ownership. The National Association of REALTORS® is the world's largest professional association. Although there are approximately 2.6 million real estate licensees, only about 60% of them are REALTORS®. When buying or selling a home, be sure to only work with a REALTOR®.

Articles for further reading:

• The REALTOR® In Your Corner
• Tips for working with a REALTOR®

Real Estate Network

By Leanne Paynter | 7:11 AM on Mar. 2, 2006 | Florida Real Estate Blog