Friday, February 19, 2010
Naples FL Market Stabilization
The Single Family Home Market in Naples, Fl is experiencing signs of stabilization. The number of new listings to the market is on the decrease, in addition to a 22% increase in pending sales since January 2009.
Tuesday, October 27, 2009
U.S. home sales beat forecast, rise 9.4 percent in September
WASHINGTON — Home resales rose in September to the highest level in more than two years, beating expectations, as buyers scrambled to complete their purchases before a tax credit for first-time owners expires.
The National Association of Realtors said Friday that sales rose 9.4 percent to a seasonally adjusted annual rate of 5.57 million in September, from a downwardly revised pace of 5.1 million in August. Sales had been expected to rise to an annual pace of 5.35 million, according to economists surveyed by Thomson Reuters.
The median sales price was $174,900, down 8.5 percent from a year earlier, and slightly lower than August's median of $177,300.
"There's a mini-boom going on in the housing market," said Thomas Popik, who conducts a monthly survey of real estate agents for Campbell Communications, a research firm.
The inventory of unsold homes on the market fell about 7 percent to 3.63 million. That's a 7.8 month supply at the current sales pace, and the lowest level since March 2007. Nationwide sales are up nearly 24 percent from their bottom in January, but are still down 23 percent from four years ago.
Sales rose around the country, especially in the West, where they grew 13 percent from a month earlier. Foreclosure sales are booming in cities like Los Angeles, San Diego and Las Vegas.
First-time homebuyers and investors are snapping up those homes and taking advantage of low mortgage rates. These buyers can also take advantage of a tax credit of 10 percent of the sales price, up to $8,000, if the sale is completed by the end of November.
The tax credit is so important to some buyers that they are adding a clause to their contracts, allowing them to back out if the sale doesn't close by Nov. 30.
While home sales and housing construction have risen steadily after hitting bottom earlier this year, most economists believe that the worst isn't over for home values.
Prices could see a double dip because rising unemployment is causing more foreclosures. The jobless rate, currently at 9.8 percent is expected to rise as high as 10.5 percent next year, causing more people to be unable to afford their monthly mortgage payment.
"There's more supply that's going to come into the marketplace," said Stan Humphries, chief economist at real estate Web site Zillow.com. "That additional supply will outpace demand."
With concerns about the housing market still prominent, Congress is considering several proposals to extend the tax credit for first-time buyers. Senators Johnny Isakson, R-Ga., and Christopher Dodd, D-Conn., want to extend it through June 30, and expand it to include all home buyers, at an estimated cost of $16.7 billion.
Realtors and homebuilders are pressing lawmakers to do so, arguing that the tax credit is crucial to get the housing market back on its feet.
"We are not there in terms of removing the consumer fear factor," said Lawrence Yun, the Realtors' chief economist.
One potential roadblock, however, emerged this week. There are concerns that some of the 1.5 million applications for the tax credit are fraudulent.
At a hearing on Thursday the Treasury Department's inspector general for taxes questioned the legitimacy of some 100,000 claims for the credit, potentially including some illegal immigrants and 580 people under 18. The youngest taxpayers to apply for the credit were 4 years old.
source: http://www.naplesnews.com/news/2009/oct/23/us-home-sales-beat-forecast-rise-94-percent-septem/
The National Association of Realtors said Friday that sales rose 9.4 percent to a seasonally adjusted annual rate of 5.57 million in September, from a downwardly revised pace of 5.1 million in August. Sales had been expected to rise to an annual pace of 5.35 million, according to economists surveyed by Thomson Reuters.
The median sales price was $174,900, down 8.5 percent from a year earlier, and slightly lower than August's median of $177,300.
"There's a mini-boom going on in the housing market," said Thomas Popik, who conducts a monthly survey of real estate agents for Campbell Communications, a research firm.
The inventory of unsold homes on the market fell about 7 percent to 3.63 million. That's a 7.8 month supply at the current sales pace, and the lowest level since March 2007. Nationwide sales are up nearly 24 percent from their bottom in January, but are still down 23 percent from four years ago.
Sales rose around the country, especially in the West, where they grew 13 percent from a month earlier. Foreclosure sales are booming in cities like Los Angeles, San Diego and Las Vegas.
First-time homebuyers and investors are snapping up those homes and taking advantage of low mortgage rates. These buyers can also take advantage of a tax credit of 10 percent of the sales price, up to $8,000, if the sale is completed by the end of November.
The tax credit is so important to some buyers that they are adding a clause to their contracts, allowing them to back out if the sale doesn't close by Nov. 30.
While home sales and housing construction have risen steadily after hitting bottom earlier this year, most economists believe that the worst isn't over for home values.
Prices could see a double dip because rising unemployment is causing more foreclosures. The jobless rate, currently at 9.8 percent is expected to rise as high as 10.5 percent next year, causing more people to be unable to afford their monthly mortgage payment.
"There's more supply that's going to come into the marketplace," said Stan Humphries, chief economist at real estate Web site Zillow.com. "That additional supply will outpace demand."
With concerns about the housing market still prominent, Congress is considering several proposals to extend the tax credit for first-time buyers. Senators Johnny Isakson, R-Ga., and Christopher Dodd, D-Conn., want to extend it through June 30, and expand it to include all home buyers, at an estimated cost of $16.7 billion.
Realtors and homebuilders are pressing lawmakers to do so, arguing that the tax credit is crucial to get the housing market back on its feet.
"We are not there in terms of removing the consumer fear factor," said Lawrence Yun, the Realtors' chief economist.
One potential roadblock, however, emerged this week. There are concerns that some of the 1.5 million applications for the tax credit are fraudulent.
At a hearing on Thursday the Treasury Department's inspector general for taxes questioned the legitimacy of some 100,000 claims for the credit, potentially including some illegal immigrants and 580 people under 18. The youngest taxpayers to apply for the credit were 4 years old.
source: http://www.naplesnews.com/news/2009/oct/23/us-home-sales-beat-forecast-rise-94-percent-septem/
Tuesday, October 20, 2009
Shrinking Housing Inventory Favors Short-Term Recovery
There are plenty of signs that the housing market can sustain a short-term recovery, even though the sector has lost some of its momentum and will continue to feel the effects of the weak labor market.
First, the government's incentives to attract first-time homebuyers has been a success.
Second, the inventory of new homes is starting to diminish.
Third, there seems to be a healthy correction in the inventory of existing homes.
Lastly, mortgage rates are becoming very attractive.
Source: http://www.nuwireinvestor.com/articles/shrinking-housing-inventory-favors-short-term-recovery-53820.aspx
The short-term recovery looks favorable, though the US is not out of the woods yet so to speak. Other trends such as the rate of unemployment, number of foreclosures, will affect the real estate recovery and the rate of that recovery.
First, the government's incentives to attract first-time homebuyers has been a success.
Second, the inventory of new homes is starting to diminish.
Third, there seems to be a healthy correction in the inventory of existing homes.
Lastly, mortgage rates are becoming very attractive.
Source: http://www.nuwireinvestor.com/articles/shrinking-housing-inventory-favors-short-term-recovery-53820.aspx
The short-term recovery looks favorable, though the US is not out of the woods yet so to speak. Other trends such as the rate of unemployment, number of foreclosures, will affect the real estate recovery and the rate of that recovery.
Tuesday, July 28, 2009
Real Estate Sales Increase For Three Straight Months
Real estate agents in the US are reporting another increases in residential property sales, the third monthly rise in a row, giving rise to further talk of a recovery in the beleaguered property market.
The latest figures from the National Association of Realtors show that overall sales transactions increased 3.6% in June, just slightly below the year-ago level and at a quicker rate than expected. But house prices were still down 15.4% on a year ago. The average sale price now stands at $181,000.
But the figures are injecting hope into the troubled real estate market. ‘This is another hopeful sign. The housing market is healing,’ said Lawrence Yun, the association’s chief economist. ‘The increase in existing home sales occurred in all major regions of the country,’ he added. source: nuwireinvestor.com
Three straight months of increase of sales. This is one sure sign that not only has the market reached the bottom, but recovery is on its way for the US real estate market and the worst may be behind us. View Naples Beachfront Homes for Sale
The latest figures from the National Association of Realtors show that overall sales transactions increased 3.6% in June, just slightly below the year-ago level and at a quicker rate than expected. But house prices were still down 15.4% on a year ago. The average sale price now stands at $181,000.
But the figures are injecting hope into the troubled real estate market. ‘This is another hopeful sign. The housing market is healing,’ said Lawrence Yun, the association’s chief economist. ‘The increase in existing home sales occurred in all major regions of the country,’ he added. source: nuwireinvestor.com
Three straight months of increase of sales. This is one sure sign that not only has the market reached the bottom, but recovery is on its way for the US real estate market and the worst may be behind us. View Naples Beachfront Homes for Sale
Friday, July 10, 2009
Naples & Bonita Springs Area - Pending & Closed Sales Trends
As each graph shows, pending and closed sales have been on the rise for both Naples & Bonita Springs Areas.
Residential Real Estate Is Starting To Bounce Back
Economic growth in the second half of the year is expected to come in “substantially” above previous consensus, according to economic commentary this week from Bank of America/Merril Lynch analysts.
Lori Helwing, an economist at BofA/Merrill Lynch, says the analysts there now expect a 2.1% slip in real gross domestic product (GDP) in 2009, 30 bps improved from the old -2.4% estimate. The US economics team also expects 2.6% growth in real GDP in 2010, up significantly from the old 1.8% estimate.
The revised projections come as the analysts see residential investment starting to bounce back.
Residential investment is now projected to decline 20.1% for all of 2009, nearly two full percentage points improved from the old -22% estimate. Residential investment is seen to grow 4.5% in 2010, a vast improvement over the 4% decline previously projected.
“We are now tracking positive sequential growth in 3Q after 3-1/2 years of declines and a 53% correction from the peak is set to add to growth over the second half” of 2009, Helwing says. “This stabilization in homebuilding and slightly positive home sales could continue going forward.” Source: nuwireinvestor.com
Estimates by analyists are now being revised from previous doom and gloom to a slighly more positive outlook. The real estate market is slowly starting to recover, because of this estimates of home prices will be impacted. Signs in Naples are pointing to the bounce back of the real estate market
View Bonita Bay Beachfront Homes for Sale
Lori Helwing, an economist at BofA/Merrill Lynch, says the analysts there now expect a 2.1% slip in real gross domestic product (GDP) in 2009, 30 bps improved from the old -2.4% estimate. The US economics team also expects 2.6% growth in real GDP in 2010, up significantly from the old 1.8% estimate.
The revised projections come as the analysts see residential investment starting to bounce back.
Residential investment is now projected to decline 20.1% for all of 2009, nearly two full percentage points improved from the old -22% estimate. Residential investment is seen to grow 4.5% in 2010, a vast improvement over the 4% decline previously projected.
“We are now tracking positive sequential growth in 3Q after 3-1/2 years of declines and a 53% correction from the peak is set to add to growth over the second half” of 2009, Helwing says. “This stabilization in homebuilding and slightly positive home sales could continue going forward.” Source: nuwireinvestor.com
Estimates by analyists are now being revised from previous doom and gloom to a slighly more positive outlook. The real estate market is slowly starting to recover, because of this estimates of home prices will be impacted. Signs in Naples are pointing to the bounce back of the real estate market
View Bonita Bay Beachfront Homes for Sale
Monday, May 18, 2009
Makeovers of condominiums along Vanderbilt Beach inspire sales
Sales of condominium property throughout the area spiked in the past quarter compared to first quarter 2008 activity, according to statistics released by the Naples Area Board of Realtors (NABOR). Along Vanderbilt Beach, part of the good news is the result of a proactive effort to spruce up buildings and residences up and down Gulf Shore Drive.
Vanderbilt Beach, a 1.3-mile stretch of land between the Ritz-Carlton, Naples and Delnor-Wiggins Pass State Park, contains prime beachfront real estate, much of it in high-rise towers. Upscale dining in the immediate vicinity includes Baleen at La Playa Beach & Golf Resort and the Turtle Club. The neighborhood even holds vestiges of Old Florida with Buzz’s Lighthouse Restaurant and Lighthouse Inn on Vanderbilt Lagoon.
A perfect example of the what is happening in many of Southwest Florida’s more mature high-rise condominium communities is found at Vanderbilt Gulfside Condominium, where exterior common areas as well as residences are sporting sophisticated new looks.
Flexible living space and innovative storage solutions are high on the priority list for those wanting to turn dated vacation condos into year-round residences. In one condominium, the transformation of a two-bedroom layout resulted in two additional remodel contracts for K2 Design Group, a single-source architectural, interior design and construction management firm.
Sitting on 8.8 acres, the 1980s-era high-rise property — 72 residences in each of two towers — is in the midst of an exterior facelift. Parking structures, entry gate and porte-cochère have been replaced. Landscaping has been enhanced and is receiving increased attention with a new irrigation system. Attractive pavers replaced asphalt along the winding driveway and Italian stone was installed around the pool and walkway. In addition to fresh paint, exterior balconies, railings and screens are being upgraded. Source: naplesnews.com
View Naples Beachfront Condos for Sale
Vanderbilt Beach, a 1.3-mile stretch of land between the Ritz-Carlton, Naples and Delnor-Wiggins Pass State Park, contains prime beachfront real estate, much of it in high-rise towers. Upscale dining in the immediate vicinity includes Baleen at La Playa Beach & Golf Resort and the Turtle Club. The neighborhood even holds vestiges of Old Florida with Buzz’s Lighthouse Restaurant and Lighthouse Inn on Vanderbilt Lagoon.
A perfect example of the what is happening in many of Southwest Florida’s more mature high-rise condominium communities is found at Vanderbilt Gulfside Condominium, where exterior common areas as well as residences are sporting sophisticated new looks.
Flexible living space and innovative storage solutions are high on the priority list for those wanting to turn dated vacation condos into year-round residences. In one condominium, the transformation of a two-bedroom layout resulted in two additional remodel contracts for K2 Design Group, a single-source architectural, interior design and construction management firm.
Sitting on 8.8 acres, the 1980s-era high-rise property — 72 residences in each of two towers — is in the midst of an exterior facelift. Parking structures, entry gate and porte-cochère have been replaced. Landscaping has been enhanced and is receiving increased attention with a new irrigation system. Attractive pavers replaced asphalt along the winding driveway and Italian stone was installed around the pool and walkway. In addition to fresh paint, exterior balconies, railings and screens are being upgraded. Source: naplesnews.com
View Naples Beachfront Condos for Sale
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