Archives

May 2006

Florida Real Estate News

By Leanne Paynter | 2:12 PM on May. 26, 2006 | Florida Real Estate Blog

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• Western Orange County, Florida: Disney, owner of about 30,000 acres in and around Walt Disney World, is selling more of its land for housing, including a 349-acre parcel that will be part of the Horizon West community - a 23,000 acre planned community that stretches for miles. Full Article...
• Cape Coral, Florida (Lee County): A growing water crisis is forcing city officials to consider curtailing some of the growth in the northern part of Cape Coral. The Mid-Hawthorn aquifer that serves wells in the city is stressed and Cape Coral has been growing by about 10,000 people a year over the last five years. Full Article...
• Daytona Beach, Florida (Volusia County) : In an effort to avoid high rises on both sides of A1A, a Planning Board recommendation which would require City Commission and state approval, has set the building height limit to three stories for buildings on the west side of Atlantic Avenue. Full Article... 

Florida Economic Indicators - April 2006

By Leanne Paynter | 6:41 AM on May. 26, 2006 | Florida Real Estate Blog

FL existing home sales:    -31%

FL existing condo sales:    -37%

FL existing home median price:  $249,700

FL existing condo median price:  $222,900

Florida Median Home Price Rises in April

By Leanne Paynter | 2:24 PM on May. 25, 2006 | Florida Real Estate Blog

Florida's Existing-Home Median Price Rises; Sales Ease in April 2006


Florida's housing sector continued to show signs of market adjustments in April as mortgage rates edged up and the inventory of homes available for sale remained at higher levels in many markets. Statewide, the existing-home median price rose 13 percent to $249,700 last month; a year ago, it was $221,100, according to the Florida Association of Realtors® (FAR). A total of 16,392 existing single-family homes sold statewide last month, a decrease of 31 percent from the 23,844 homes that changed hands during the previous April, according to FAR.

In 2001, the statewide median sales price was $127,100, which is an increase of about 96.4 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 sold for less.

Nationally, the median sales price for existing single-family homes was $217,300 in March, up 7.8 percent from a year earlier, according to the National Association of Realtors® (NAR). In California, the statewide median resales price was $561,350 in March; in Massachusetts, it was $344,000; in Maryland, it was $298,617; and in New York, it was $260,000.

Most of the U.S. is entering a period of equilibrium in the housing market, which is good for the long-term health of the sector, according to NAR housing industry analysts. NAR notes that sales overall remain historically strong and are providing a solid foundation for the overall economy.

Looking to Florida's existing condominium market, sales of existing condos also decreased in April, with a total of 5,556 condos sold statewide compared to 8,775 in April 2005 for a 37 percent decline, according to FAR. The statewide median sales price for condos rose 4 percent to $222,900 last month; a year ago, it was $213,400. The national median existing condo price was $225,500 in March 2006.

The interest rate for a 30-year fixed-rate mortgage in April averaged 6.51 percent, up from the 5.86 percent averaged during the same month a year ago. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Amongthe state’s larger markets, the Orlando metropolitan statistical area (MSA) reported 2,491 existing homes sold last month compared to 3,375 homes sold in April 2005 for a decrease of 26 percent. The market’s median existing home price rose 24 percent to $263,100; a year ago, it was $211,500. A total of 486 existing condos changed hands in Orlando last month for a 61 percent gain over the 302 condos sold in April 2005. The market's median existing condo price rose 10 percent to $166,100; a year ago, it was $150,800.

Of the state’s smaller markets, the Tallahassee MSA reported a 5 percent gain in existing home sales in April, with a total of 436 homes changing hands compared to 415 homes sold last year. The area’s median existing home sales price rose 11 percent to $172,000; a year ago, it was $154,800. Thirty-six existing condos sold in Tallahassee last month for an increase of 112 percent over the 17 condos sold a year ago. The market's median existing condo price rose 11 percent to $152,900; a year ago, it was $137,500.

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 April 2006 to April 2005, based on Realtor transactions within the MSAs. The other chart compares the volume of existing condo sales and median sales prices in April 2006 to April 2005, based on Realtor transactions within the MSAs.

[ Single-Family  PDF   HTML ]   [ Condominium  PDF   HTML ]

© 2006 FLORIDA ASSOCIATION OF REALTORS®

Florida McMansions

By Leanne Paynter | 8:35 AM on May. 22, 2006 | Florida Real Estate Blog

According to the National Trust for Historic Preservation, Florida is among the 20 states they identified in 2002 that is experiencing teardowns in historic neighborhoods. In 2002 they identified 100 communities in 20 states and, unfortunately, as of May 2006 that number has soared to more than 300 communities in 33 states that are being impacted by teardowns.

 

There were 21 Florida cities identified: Boca Raton, Bradenton Beach, Coral Gables, Delray Beach, Fort Lauderdale (Rio Vista), Gulf Stream, Hollywood (Lakes), Juno Beach, Jupiter Island, Lighthouse Point, Marco Island, Miami (Coconut Grove, West Grove), Naples, North Miami Beach, Ocean Ridge, Old Marco, Palm Beach, Sarasota, St. Petersburg, Tallahassee, and Tampa.

 

The term "McMansions" is a slang architectural term and is often used to describe the house built to replace the teardown.  In Florida, McMansions are typically much bigger than the original house on the site and they tend to stand out in a neighborhood that mostly consists of older and smaller, one-story homes with roomy front and back yards. Oftentimes, this new construction is not welcomed by neighbors because it destroys the original character of the neighborhood. Immediate neighbors sometimes complain of the negative impact it has on their property with regards to restricted views, reduced sunlight to their house or yard, as well as property values.  Local leaders are often either not able or willing to prevent these teardowns that forever change the landscape of historic neighborhoods.

 

Among other terms used in place of "McMansions" are: "monster home," "faux chateaux," and "starter castle."

 

Additional information:

• Florida Trust for Historic Preservation
  
• Teardowns / McMansions in the News (PDF format)
  
• Glossary of Teardown Terms (PDF format)

Tax Free Hurricane Supplies

By Leanne Paynter | 6:32 AM on May. 21, 2006 | Florida Real Estate Blog

Today was the beginning of Florida's sales tax holiday for hurricane preparedness.  The 2006 holiday runs from Sunday, May 21st through Thursday, June 1st.  No sales tax shall be collected on specific items related to hurricane preparedness. The specific items must be in the price ranges specified on the list.

 

Click here for a list of tax-exempt hurricane preparedness items (in PDF format).

 

A few stores are discounting some items by matching the tax-exempt portion. As an example, if a generator would normally sell for $600, the store is offering it for $564, tax-free, for a total savings of $72.  The amount calculated above is based on a 6% sales tax; some Florida counties have a tax rate that is slightly higher.

Florida Real Estate News

By Leanne Paynter | 1:37 PM on May. 18, 2006 | Florida Real Estate Blog

• Navarre Beach, Florida (Santa Rosa County): Port Navarre, the largest residential and retail complex ever planned for Navarre Beach is ready to get started.  Full Article...
• Islamorada, Florida (Monroe County): Property owners to challenge vacation rental ordinance.  Full Article...
• Tampa, Florida (Hillsborough County): Condo conversions are changing the market.  Full Article...
• Collier County, Florida: County restricts development in coastal zone while critics say the decision will prevent development of affordable housing in key areas.  Full Article...

Florida's Housing Market for 1Q 2006: Median Price Up, Sales Ease

By Leanne Paynter | 12:47 PM on May. 15, 2006 | Florida Real Estate Blog

In first quarter 2006, Florida's housing sector followed the national trend, demonstrating signs of a market adjusting to rising mortgage rates, higher inventory levels and a better balance between buyers and sellers. Statewide sales of single-family existing homes totaled 45,864 during the three-month period, a decrease of 20 percent compared to 57,532 homes sold during the same quarter a year ago, according to the Florida Association of Realtors® (FAR).

"Sales of existing single-family homes in Florida behaved like much of the U.S. across the 2006 first quarter," says Dr. David Scott, executive director of the Dr. Phillips Institute for the Study of American Business Activity and professor of finance at the University of Central Florida (UCF). "The stress points on unit sales come from two key sources: One, rising inventories of dwellings for sale and two, rising mortgage rates. On the latter, conventional mortgage rates closed the 2006 initial quarter at 6.35 percent and are trending up."

The statewide existing-home median sales price rose 20 percent to reach $248,000 in the first quarter; a year ago, it was $206,700. In 2001, the first-quarter statewide median sales price was $119,500, which is an increase of about 107.5 percent over the five-year period.

"The rate of increase in unit prices continued on the upswing, albeit at a pace that is beginning to more closely reflect underlying economic trends and capabilities," Scott says. "Median sales prices were still up a strong 20 percent in the first quarter; but, this was down from the 29 percent pace that ended with the fourth quarter of 2005." He notes that inflationary pressures are beginning to register with the state's economy as the price of gasoline at the retail level is at about $3.00 per gallon and the price of oil per barrel is in the $68 to $72 range.

Looking to Florida's existing condominium market, sales of existing condos also decreased during the quarter, with a total of 15,386 condos sold statewide compared to 19,657 in first quarter 2005 for a 22 percent decline, according to FAR. The statewide median sales price for condos rose 8 percent to $217,700 for the three-month period; a year ago, it was $201,800.

The latest economic outlook from the National Association of Realtors® (NAR) notes that while the housing market is adjusting, it should experience its third best year in 2006 with job creation and a growing economy offsetting some of the effects of rising interest rates.  According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 6.24 percent in first quarter 2006; last year, it was 5.76 percent.

Among the state’s larger markets, the Jacksonville metropolitan statistical area (MSA) reported 3,987 existing homes sold for the quarter, a 5 percent increase over the 3,795 homes sold a year ago. The market’s median sales price increased 17 percent to $200,000; a year ago, it was $171,400. The median is a typical market price where half the homes sold for more, half for less.

The Ocala MSA, one of the smaller market's in the state, had a 5 percent increase in resales for the quarter, with 1,464 homes changing hands compared to 1,395 homes sold a year ago. Over the same period, the market’s median home price rose 32 percent to $161,400; a year ago, it was $122,100.

Another smaller market reporting an increase in existing-home sales for the first quarter was Tallahassee, where 1,161 homes sold for a gain of 11 percent. The market's existing-home median sales price rose 12 percent to $176,800.

A chart showing statistics for Florida and its MSAs is attached. The chart compares the volume of existing, single-family home sales and median sales prices in the first quarter of 2006 to the first quarter of 2005, based on Realtor closed transactions from local Realtor boards/associations within the MSAs.

 

© 2006 Florida Association of REALTORS®

 

[ Single Family  PDF  HTML  ]  [ Condominium   PDF  HTML  ]

Negotiating Home Price

By Leanne Paynter | 10:14 AM on May. 7, 2006 | Florida Real Estate Blog

There are a few valuable home improvements that Florida home buyers often forget to factor in when negotiating the price of a house they are interested in.  Today I will discuss two of them: hurricane shutters and sprinkler systems.

 

The number of hurricanes that have affected us in recent years has caused many Florida homeowners to invest in hurricane shutters. This is good.  However, the vast majority of Florida homes still do not currently have hurricane shutters, which is unfortunate because they can make a difference in the severity of damage caused by a hurricane.  The cost of hurricane shutters can vary greatly - from a low of about $1,200 to well over $10,000 - and depends on a few things, but most importantly on the number of openings (doors/windows) you want protected as well as the type of shutters chosen. Accordion shutters cost more than panel-type shutters but are generally easier and faster to open and close.  There are other types but these are the two most often installed nowadays. When comparing one home that includes hurricane shutters with another home that does not, it's important to take the cost into account when negotiating the house price.

 

The importance of having an automatic sprinkler system is another item that Florida home buyers often overlook. The cost of having an automatic sprinkler system installed varies - probably around $1,400 on the low end to over $5,000 if the property is very large. An automatic sprinkler system can also save you money via a lower water bill as most homes that have one use either well or lake water, so the cost is usually limited to the electricity used by the pump and system maintenance. While some home buyers may not think this is an important amenity, they often change their minds after a few months or years of having to water their lawns themselves. If a Florida lawn is badly neglected and needs replacing, it can cost hundreds of dollars to replace with new sod. Here, again, when comparing a home that has a functioning automatic sprinkler system with another home that does not already have one, it's important to take this into account when negotiating the purchase price of the house. One last note about sprinkler systems: be sure to find out (preferably first hand) whether a home's sprinkler system is in working order. Just because you see sprinkler heads in the lawn does not mean the system is functioning properly, though a lush green lawn is usually evidence enough.

Katrina Cottage

By Leanne Paynter | 1:18 PM on May. 1, 2006 | Florida Real Estate Blog

  

The Katrina Cottage is certainly an interesting option for those wanting to stay in a hurricane-devastated area while their house is being rebuilt.

If you click on the "Using the Cottage" link, it's interesting to see how it can provide people with three options of where to place it on the lot so as to eventually incorporate the cottage into the final plans. If you click on the "Plan Options" link and then on each of the artist's renderings, you'll see how the same 308 sq. ft. cottage can offer 3 different floorplans. There's even a 434 sq. ft. version for those needing a second bedroom. Though the second bedroom is only 7' x 6' it could be used as an office or small child's bedroom. Overall, I'd give this option a definite "thumbs up!"