Feb. home prices rose at fastest pace in 3 years

 

WASHINGTON (AP) – April 25, 2017 – U.S. home prices rose steadily upward in February as more homebuyers chased fewer available properties, a trend that many analysts say may not be sustainable.

The Standard & Poor's CoreLogic Case-Shiller national home price index, released Tuesday, increased 5.8 percent in February, the most in 32 months. Such strong price gains and slightly higher mortgage rates may eventually cool off demand.

But for now, sales of new and existing homes are robust. Last month, sales of existing homes reached their highest level in a decade. The strong demand, however, hasn't enticed more Americans to sell their homes. The number of houses for sale has dropped to its lowest level in nearly 20 years, which makes finding an available home the toughest challenge awaiting potential buyers in the spring home buying season.

Many homeowners have benefited from the sharp price gains of recent years, but those increases have also made it harder for them to "trade up" to a bigger house, discouraging them from selling. Others have very low mortgage rates and may be reluctant to sell if doing so would force them to take on higher borrowing costs.

The cities with the biggest annual price gains in February were Seattle; Portland, Oregon; and Dallas.

Still, some relief may be on the horizon, though it's not clear when. Average rents are leveling off, which could keep many people in apartments and dampen demand for homes.

Mortgage rates are also up from last year's record lows. Those two trends "could put a dent in home-buyer demand and overall price growth," said Svenja Gudell, chief economist at real estate data provider Zillow. "Those changes won't necessarily be unwelcome, especially in some rapidly growing coastal markets in which buyers, sellers and renters could all use a breather."

The Case-Shiller index covers roughly half of U.S. homes. The index measures prices compared with those in January 2000 and creates a three-month moving average. The February figures are the latest available.

Home builders are ramping up construction to meet the healthy demand, which may provide buyers some relief. Ground breakings on new homes rose 8.1 percent in the first three months of this year compared with 2016.

And the supply of new homes available for sale in February climbed to a seven-year higher of 266,000.

 Copyright © 2017 The Associated Press, Christopher S. Rugaber. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.  

Feb. home prices rose at fastest pace in 3 years

Ins. agents: Citizens will be insuring more Fla. homes

 

ORLANDO, Fla. – April 24, 2017 – Get used to the idea that more South Florida homeowners will be forced back to state-run Citizens Property Insurance Corp., the so-called insurer of last resort.

That's the message members of the Professional Insurance Agents of Florida will be hearing when they convene at the Rosen Plaza Hotel in Orlando on April 27-28 for their annual "Agent Expo."

Prospects for a legislative solution to costly claims abuses in South Florida are dimming again this year with just two weeks left in this year's session. If the Legislature fails to address "assignment of benefits" abuses for a fifth-straight year, more private insurers will likely decide parts or all of the tri-county region are too risky and refuse to take new customers, said Corey G. Mathews, CEO and executive vice president of the insurance agents' trade group.

"Unfortunately, from what we're hearing, it's already happening," Mathews said in an interview Friday. "I'm hearing from agents who say they submitted [a new policy] in a zip code they wrote [a policy in] last week, and the insurer is saying 'Sorry, we're closed in that zip code.'"

Citizens spokesman Michael Peltier said the company expects to grow by about 50,000 in coming months – a sharp reversal from the previous five years in which about a million policies were absorbed into the private market. Most of those policies will be in South Florida, he said.

Last year, Heritage Property & Casualty Insurance stopped writing new policies in Miami-Dade, Broward and Palm Beach counties, then later resumed writing to a "very select" number of homeowners through a small number of agents.

In December, Citizens released a report quoting United Property & Casualty president John Forney as saying his company stopped writing new business in Miami-Dade and Broward because claims had become far more costly there than in the rest of the state.

Citizens and other insurers have been asking the Legislature to help stem a flood of lawsuits generated by South Florida water damage restoration companies and about a dozen law firms. They say the contractors convince policyholders to sign over benefits of their policies, then quickly file suit if insurers refuse to pay inflated claims.

Attorneys are motivated by a law that shields policyholders from paying their insurer's legal fees if they sue a company in a claim dispute and lose, but lets them collect legal fees if the insurer loses or agrees to pay more than originally offered.

Contractors have learned to secure an assignment of benefits to assert the same right, and that encourages them to file large numbers of suits with little risk, insurers say.

This year, insurers backed a legislative bill that would bar contractors from collecting legal fees if working under an assignment, but the chair of the Senate's Banking and Insurance Committee refused to bring it up for debate.

A House bill that would award fees under a complicated formula was advanced this week but faces poor prospects of enactment with so little time left in the session.

Citizens was created to ensure Florida homeowners could buy insurance after a series of hurricanes prompted large national carriers to stop writing new policies in the state.

By 2012, Citizens' policy count had swelled to 1.5 million. But the creation of new private companies, a 10-year hurricane drought, and a state-mandated "depopulation" program incentivizing private companies to absorb Citizens policies, has reduced its policy count to 450,000.

In recent months, Citizens officials have been warning the company will be "repopulated" if the Legislature doesn't act to curb claims abuses.

As the insurer of last resort, state law requires Citizens to accept property owners who cannot otherwise get insured. State law also limits annual rate increases to 10 percent, which Citizens president and CEO Barry Gilway has warned might be necessary for the foreseeable future.

The Citizens workshop at next week's Agent Expo will be moderated by Carl Rockman, Citizens' director of agent services. According to an email flier sent to Professional Insurance Agents of Florida, the session will cover changes that Citizens has implemented "since you last wrote a substantial number of policies with them."

"We all know that writing Citizens [policies] is the last thing any of us want to do, but until and unless something changes, we have to get used to the idea, and more importantly, prepared for the reality," the flier said.

Copyright © 2017 the Sun Sentinel (Fort Lauderdale, Fla.), Ron Hurtibise. Distributed by Tribune Content Agency, LLC.

Ins. agents: Citizens will be insuring more Fla. homes

Fla. home sales up 9.3% year-to-year in March

Fla. home sales up 9.3% year-to-year in March

 

NAR: U.S. home sales jump 4.4%, hit 10-year high

ORLANDO, Fla. – April 21, 2017 – Florida's housing market reported more closed sales, higher median prices and increased pending sales in March, according to the latest housing data released by Florida Realtors. Sales of single-family homes statewide totaled 25,921 last month, up 9.3 percent compared to March 2016.

"March's strong sales likely were influenced by buyers ready to take action before interest rates could move higher," says 2017 Florida Realtors President Maria Wells, broker-owner with Lifestyle Realty Group in Stuart. "Higher demand, coupled with a shortage of available homes for sale, continues to put pressure on prices – so buyers are eager to make an offer when they find the right property.

"That means it's a good time for sellers to list their homes since they continue to receive a higher sales price as inventory remains scarce," Wells adds. "In March, sellers of existing single-family homes received 96.1 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.7 percent – an indication that the listed price is extremely close to market value.

"Consumers who work closely with a local Realtor have an expert guide to help them navigate the often-complex process of buying or selling a home."

The statewide median sales price for single-family existing homes last month was $231,900, up 10.4 percent from the previous year, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in March was $171,000, up 9.4 percent over the year-ago figure.

March marked the 64th consecutive month that statewide median prices for both sectors rose year-over-year. The median is the midpoint; half the homes sold for more, half for less.

According to the National Association of Realtors (NAR), the national median sales price for existing single-family homes in February 2017 was $229,900, up 7.6 percent from the previous year; the national median existing condo price was $216,100. In California, the statewide median sales price for single-family existing homes in February was $478,790; in Massachusetts, it was $330,000; in Maryland, it was $251,816; and in New York, it was $242,000.

Looking at Florida's townhouse-condo market, statewide closed sales totaled 11,193 last month, up 11.4 percent compared to March 2016.

Closed sales data reflected fewer short sales and cash-only sales last month: Short sales for townhouse-condo properties declined 29.7 percent while short sales for single-family homes also dropped 33 percent. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

"March turned out to be one of the strongest months we've seen in a long time for sales of existing homes in the Sunshine State," said Florida Realtors Chief Economist Dr. Brad O'Connor. "Sales for both single-family homes and for townhouse-condo units in March marked the fourth-highest monthly total for any single month over the past decade.

"The data shows that inventory levels in the more affordable price tiers continue to fall, especially in the case of single-family homes. The number of active single-family home listings was down almost 5 percent year-over-year at the end of March. As a result, the single-family sector remained a seller's market, though the inventory situation in the townhouse-condo market appears more balanced."

In a continuing trend, inventory remained at a tight 4.1-months' supply in March for single-family homes and at a 6.3-months' supply for townhouse-condo properties.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.20 percent in March 2017, up significantly from the 3.69 percent average recorded during the same month a year earlier.

To see the full statewide housing activity reports, go to Florida Realtors Media Center and look under Latest Releases, or download the March 2017 data report PDFs under Market Data.

© 2017 Florida Realtors

Fla. home sales up 9.3% year-to-year in March

Is it worth suing a rogue condo board president?

All condo's and HOA's will at some point have issues from people with very different viewpoints on how the issue should be addressed. Below is an article from the Florida Association of Realtors that addresses an extreme situation.

FORT LAUDERDALE, Fla. – April 20, 2017 – Question: I live in a community association where the president of the board is violating several statutory provisions and community rules. When a homeowner brought this up at a board meeting, the president told the audience to deal with it or just sue him. What should we do? – Jeff

Answer: The very large majority of people who take on the often-thankless and time-consuming job of serving on the board have the best of intentions. Unfortunately, sometimes a rogue board member gets in power and wants to carry out his or her own agenda or to abuse the new-found power by ignoring the rules.

Even if the president is just trying to bend the rules for what he perceives to be a good cause, no one in any position of authority should ever substitute his own judgment for what was agreed to in the community documents or the law.

Your best course of action is to discuss the matter with the offending party. Instead of immediately challenging the president, thereby putting him on the defensive, try to find out what his motivations are. He may simply be trying to do the right thing in the wrong way.

However, if his actions are truly harmful, you may need to take legal action. Your choices include suing the board to make it do the right thing or to force a new election to get the right people in place. Of course, you would need to pay the legal fees, and such lawsuits can get expensive. While there is a chance of being reimbursed if you win, there also is the danger of having to pay your community's legal fees if you lose.

Before you go this route, consider whether his actions have any consequences worth fighting over. For example, if he's breaking a technical rule that doesn't have a negative effect on the community or yourself, it's probably not worth spending the time, money and energy on a lawsuit. You might be best served waiting it out and voting for someone better at the next election, no matter how emotionally frustrating it may be.

About the writer: Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He practices real estate, business litigation and contract law from his office in Sunrise, Fla. He is the chairman of the Real Estate Section of the Broward County Bar Association and is a co-host of the weekly radio show Legal News and Review. He frequently consults on general real estate matters and trends in Florida with various companies across the nation.

Copyright © 2017 Sun Sentinel (Fort Lauderdale, Fla.), Gary M. Singer. Distributed by Tribune Content Agency, LLC.  

Related Topics: Legal

Is it worth suing a rogue condo board president?

Small nest egg, big dreams? Retirement home tips

ORLANDO, Fla. – April 19, 2017 – Planning for retirement means making a lot of decisions, including when you'll stop working, how much you'll withdraw from your savings each year, and where you'll live. Many Americans view retirement as an opportunity to move into a house they'll love and live in for all their golden years. In fact, 64 percent of retirees either have moved or plan to move, according to a Merrill Lynch survey.

Some retirees move to be closer to children or grandchildren, to downsize into a more manageable home, live in a warmer locale, or to secure a more luxurious home where they can easily age in place.

"The decision of where to live in retirement is important and can directly affect quality of life in your golden years," says Geoff Lewis, president of RE/MAX, LLC. "Research by Trulia shows that in virtually all areas of the country, it makes better financial sense for retirees to buy a home, rather than rent. In fact, buying is nearly 42 percent cheaper than renting for seniors across the country."

RE/MAX agents have helped millions, including retirees, find the home of their dreams. Lewis and the RE/MAX team offer some advice for buying your retirement home:

Have a plan

Ideally, you should think about where you want to live long before retirement, but it's never too late to think about your priorities. Do you want to be close to family or health care resources? Do you desire a home in the mountains or somewhere you'll never see snow again?

Trulia's research shows that some of the cities most popular for retirees are also ones where buying a home can save you the most money over renting. Desirable, warm-weather locations in Florida and Arizona offer significant value, even in regions where average home prices are higher.

Make a list of what you want in a home location so you'll have a starting point for your search.

Don't delay

If possible, don't wait until poor health or declining finances force you to move somewhere that's not your ideal location. Move while you're still young enough to enjoy your dream retirement home.

Get professional financial advice

It's important to protect your nest egg and keep it growing throughout retirement. A professional financial planner can help you understand what size mortgage is right for you, so your dream home doesn't strain your finances.

Be mindful of amenities

When choosing a location and a home, in addition to your personal priorities, it's important to keep in mind accessibility to amenities important to seniors. Community features such as good transportation, quality of roads, safe neighborhoods, and access to health care, socialization opportunities, shopping and cultural venues are all options to consider.

Focus on must-haves

Make a list of must-have features and those you would like your retirement home to have. Share the list with your agent to help him or her focus on properties that meet your criteria. Your list of must-haves and desirables will likely be very different from the list you made when you bought your first home. Now, a single-level house with large bathrooms and a level lot may be more desirable than a two-story with lots of bedrooms and a big backyard.

Finally, says Lewis, keep in mind whether you plan to age in place.

"More Americans are looking for homes that will allow them to stay independent and living on their own throughout their retirement years," he says. "If that's your plan, look for home features that will help facilitate that, like wider doors, few or no exterior stairs, and good lighting."

Copyright © 2017 Chestnut Hill Local. All rights reserved.

Small nest egg, big dreams? Retirement home tips

Flipping property? Legal details can be challenging By Meredith Caruso   April 17, 2017 – There are many ways to transfer real property beyond "Joe Buyer purchased a property from Bob Seller." Realtors who call the Legal Hotline about transfers often ask about property "flips" or "simultaneous closings." Usually the scenario involves a buyer interested in a property that the seller only recently acquired; in some cases, it's a property the seller will acquire very soon but doesn't even own yet. If a customer wants to use any type of unfamiliar transfer method, it can be intimidating – and potentially risky – unless you know the issues your customer might face during the transaction. Here are some factors to keep in mind if you're considering involvement in a transaction like this: 1. Who is the seller and how did the seller acquire the property? Is it a bank/REO sale? Or is it an investor who acquired the property after the lender foreclosed? Or is it the son or daughter of a deceased homeowner? Was it acquired at a tax sale? If the seller hasn't owned the property long, he probably has little-to-no knowledge of its history, and your buyers should plan to have all inspections done to verify the property's condition – including ones beyond a physical inspection of the property. There can often be property issue(s) that the seller doesn't know about, making these inspections extremely important. Even if a buyer gets a seller's property disclosure form, it likely won't contain much usable information. Depending on how the seller acquired the property, there could also be title issues that need addressed, which likely involves the use of an attorney. It's always better to tackle potential title issues upfront rather than discover one right before closing. 2. Does the seller actually own the property – or is he in the process of acquiring title before closing? Many times, lenders foreclosing on a property will go under contract with a buyer before the foreclosure is finalized to shorten the length of time they hold title and lessen their financial losses. Usually the fine print within REO contracts contains a clause about this, detailing what happens if the lender can't obtain title to the property before closing. It's important for buyers to read – and fully understand – provisions like this in the sales contract, which can vary by lender. Sellers should make sure they have language in the contract that addresses this contingency (i.e. obtaining title) and verify the contingency language with their attorney. For example, if the seller is the son or daughter of a deceased parent, is that parent's name still on the title? If so, showing up at closing with a death certificate isn't normally enough for a title company to close the transaction, and the son/daughter must take additional legal steps to pass marketable title on to the buyer. It's always advisable for the seller to check with the closing agent (or his or her attorney) when the process starts to find out what, if any, documents may be required for the closing to occur on time. 3. How does the buyer intend to purchase the property? Cash? Mortgage? If mortgage, what type of financing? Certain types of financing, like FHA/VA loans, require the seller to have owned the property for a certain number of days before they'll lend money to a buyer. While there's nothing illegal about an investor purchasing and reselling property in a short period of time, he or she might want to note the type of financing a buyer intends to pursue because it could affect the transaction. These transactions can be legally complex, and if buyers or sellers have additional legal questions or concerns, they should seek assistance from their personal attorney. Meredith Caruso is Manager of Member Legal Communications for Florida Realtors © 2017 Florida Realtors

Flipping property? Legal details can be challenging

Floridians’ confidence hits 15-year high in March

GAINESVILLE, Fla. – April 4, 2017 – Consumer sentiment among Floridians rose last month to the highest level in 15 years, according to the latest University of Florida (UF) consumer survey.

The reading of 99 in March was the highest since March 2002 and the second-highest since November 2000. The 5.2-point March increase followed a dip in February, which ended the month with a revised reading of 93.8.

All five of the components that make up the index increased.

Current perceptions
Floridians' perception of their personal financial situation now compared with a year ago ticked up four-tenths of a point, from 88.1 to 88.5. Perceptions as to whether it's a good time to buy a major household item such as an appliance rose 3.8 points, from 99.7 to 103.5.

"The increase in these two components shows that current economic conditions improved among Floridians in March," says Hector H. Sandoval, director of the Economic Analysis Program at UF's Bureau of Economic and Business Research. "In particular, women and those under age 60 displayed more optimistic perceptions."

Short-term future expectations
The sub-index measuring Floridians' personal finance expectations a year from now rose 7.8 points from 99.5 to 107.3. Opinions of anticipated U.S. economic conditions over the next year increased 7.2 points, from 92.0 to 99.2.

Similarly, expectations of U.S. economic conditions over the next five years rose 7.2 points, from 89.5 to 96.7.

"Overall, Floridians are far more optimistic in March than the previous month. The gain in March's index came mainly from consumers' future expectations about the economy. Importantly, these views are shared by all Floridians, independent of their demographic characteristics and socioeconomic status," Sandoval says. "These expectations are particularly strong among women and those with an income under $50,000."

U.S. consumer sentiment at the national level also remained positive in March at 96.9, according to the University of Michigan's survey of consumers.

In Florida, consumer sentiment may have been lifted by good economic news. The Florida labor market has continued expansion, adding jobs on a monthly basis for more than six years. The unemployment rate in Florida remained unchanged at 5 percent in February, the most recent figure available. Over the last year, the unemployment rate has remained stable: Between March and December 2016, the unemployment rate was 4.9 percent, and since January the rate has been 5 percent.

According to the U.S. Bureau of Economic Analysis, Florida ranked third out of all states in the country in personal income growth, with a growth rate of 4.9 percent in personal income between 2015 and 2016. The main contributor to this change came from net earnings, which includes wages, salaries and supplements but excludes contributions for government social insurance.

Nationwide, economic activity and the labor market has continued to expand and strengthen, and household spending has risen. As a consequence, last month the Federal Open Market Committee decided to raise the federal funds rate to a target range of 0.75 to 1 percent.

"In general, the economic outlook is very positive and the positive sentiment will aid the economy to expand even further," Sandoval said.

Conducted March 1-30, the UF study reflects the responses of 507 individuals who were reached on cellphones, representing a demographic cross section of Florida. The index used by UF researchers is benchmarked to 1966, which means a value of 100 represents the same level of confidence for that year. The lowest index possible is a 2, the highest is 150.

© 2017 Florida Realtors  

Floridians’ confidence hits 15-year high in March