Florida’s existing home sales rose in February, making it the sixth consecutive month that sales activity showed increases in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR).
February’s statewide sales also increased over January’s figures in both the existing home and existing condo markets.Existing home sales rose 20 percent last month with a total of 9,858 homes sold statewide compared to 8,181 homes sold in February 2008, according to FAR. February’s statewide existing home sales were 16.7 percent higher than January’s statewide sales.
Thirteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing-home sales in February. It marks the eighth month in a row that a number of markets have reported increased sales.
Significant variations in local markets continue, according to NAR’s latest housing outlook, which also notes that it will take time for the impact of the economic stimulus to show in housing data. “Some markets appear to have reached the tipping point of accelerating home buying,” said NAR Chief Economist Lawrence Yun. “Improvement from the economic stimulus isn’t likely to show as closed home sales before summer, although we may see an earlier lift from lower mortgage interest rates.”
NAR analysts estimate the impact of the federal economic stimulus package and lower interest rates on the housing market to be about 900,000 additional home sales in 2009 compared to conditions before the stimulus package. By the end of the year, NAR expects inventory to fall below an eight-month supply, which would be consistent with home price stabilization.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
Edited by Elliot Koolik
Monday, March 23, 2009
Monday, March 02, 2009
Now is the Time to Buy!
Every where you turn around, you can see, hear and read about affordable housing and programs for buyers. President Obama is now promising a first time home buyers credit up to 10% of the purchase price up to $8000 as well as lower mortgage costs and new loan programs. Coupled with historically lower interest rates, it’s no surprise that Florida’s overall existing home sales rose by 27% in January. In year to year comparison, this was the fifth straight month that sales have increased, according to the latest housing data released by the FAR.
“Buyers are looking at the real estate market and taking advantage of the current economy,” said Elliot Koolik. “People who sat on the sidelines in the past, are now realizing it’s a great time to buy because of the low interest rates, affordable prices and wide range of housing options available.”
Investors are now seeing great opportunities for themselves too. Mortgage giant, Fannie Mae has just announced that they are modifying their investor policy, which will now allow investors to own 5 to 10 properties depending on certain requirements, rather than the previous maximum of four properties. “Now is a great time to buy, said Wendy Koolik. “With more affordable options, we are ready to handle the influx of investors purchasing homes to increase their portfolio as well as vacation home owners.”
First time home buyers are in an extremely great position. Not only can they take advantage of the higher homestead exemption, low interest rates and the home buyers credit, but now Gov. Charlie Crist has proposed a new policy giving property tax breaks as much as $5000 to first time homebuyers. The proposal would tax only half the property value and then phase out the policy over the first five years of ownership.
For current owners, Gov Crist is proposing to ensure that homeowners do not receive higher property tax bills in times when house values are declining. He is also proposing to make it easier for homeowners to challenge tax assessments by requiring property appraisers to prove their work is valid, rather than leave the burden of proof on the homeowner.
“With so many policies working in our favor, it’s no wonder Palm Beach County sales have risen, said Steven Koolik, Broker of Koolik Group Realty. “Buyers are realizing that it will be a very long time before they will have the opportunity to own a home at the prices we are seeing in today’s market.”
In deed, it seems that those who don’t take advantage and buy now - may regret it in future years.
**Published on the front page of the Sun Sentinel Homespot.**
“Buyers are looking at the real estate market and taking advantage of the current economy,” said Elliot Koolik. “People who sat on the sidelines in the past, are now realizing it’s a great time to buy because of the low interest rates, affordable prices and wide range of housing options available.”
Investors are now seeing great opportunities for themselves too. Mortgage giant, Fannie Mae has just announced that they are modifying their investor policy, which will now allow investors to own 5 to 10 properties depending on certain requirements, rather than the previous maximum of four properties. “Now is a great time to buy, said Wendy Koolik. “With more affordable options, we are ready to handle the influx of investors purchasing homes to increase their portfolio as well as vacation home owners.”
First time home buyers are in an extremely great position. Not only can they take advantage of the higher homestead exemption, low interest rates and the home buyers credit, but now Gov. Charlie Crist has proposed a new policy giving property tax breaks as much as $5000 to first time homebuyers. The proposal would tax only half the property value and then phase out the policy over the first five years of ownership.
For current owners, Gov Crist is proposing to ensure that homeowners do not receive higher property tax bills in times when house values are declining. He is also proposing to make it easier for homeowners to challenge tax assessments by requiring property appraisers to prove their work is valid, rather than leave the burden of proof on the homeowner.
“With so many policies working in our favor, it’s no wonder Palm Beach County sales have risen, said Steven Koolik, Broker of Koolik Group Realty. “Buyers are realizing that it will be a very long time before they will have the opportunity to own a home at the prices we are seeing in today’s market.”
In deed, it seems that those who don’t take advantage and buy now - may regret it in future years.
**Published on the front page of the Sun Sentinel Homespot.**
Wednesday, February 18, 2009
Home Sales Gain in December
Existing-home sales rose unexpectedly while inventory declined, led by a surge of sales in the West, according to the National Association of Realtors®.
Existing-home sales - including single-family, townhomes, condominiums and co-ops - jumped 6.5 percent to a seasonally adjusted annual rate1 of 4.74 million units in December from a downwardly revised pace of 4.45 million units in November, but are 3.5 percent below the 4.91 million-unit pace in December 2007.
For all of 2008 there were 4,912,000 existing-home sales, which was 13.1 percent below the 5,652,000 transactions recorded in 2007. This is the lowest volume since 1997 when there were 4,371,000 sales.
Lawrence Yun, NAR chief economist, said home prices continue to fall significantly. "It appears some buyers are taking advantage of much lower home prices," he said. "The higher monthly sales gain and falling inventory are steps in the right direction, but the market is still far from normal balanced conditions. Buyers will continue to have an edge over sellers for the foreseeable future."
Total housing inventory at the end of December fell 11.7 percent to 3.68 million existing homes available for sale, which represents a 9.3-month supply2 at the current sales pace, down from a 11.2-month supply in November.
Yun said the market is underperforming and hurting the broader economy. "We've added 25 million people to our population over the past decade and housing affordability conditions are the best we've seen since 1973, but household formation is much lower than expected," he said. "Consequently, there is a pent-up demand which could be unleashed with the right stimulus, including a non-repayable home buyer tax credit. The Obama administration and Congress need to move fast to stimulate a spring sales upturn which will help to stabilize home prices and set the foundation for a sustainable economic recovery."
The national median existing-home price3 for all housing types was $175,400 in December, which is 15.3 percent below December 2007 when the median was $207,000. There remains a significant downward distortion in the current median from a large number of distress sales at discounted prices, currently 45 percent of transactions; the median is where half of the homes sold for more and half sold for less. For all of 2008, the median price was $198,600, down 9.3 percent from $219,000 in 2007.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said it's an excellent time for first-time home buyers with good jobs. "The typical buyer plans to stay in their home for 10 years, which is the correct approach in today's market," he said. "With historically low mortgage interest rates, flexible sellers, a large inventory, and homes that are selling for less than replacement construction costs in much of the country, buyers who've been on the fence should take a closer look at today's market." McMillan added that first-time buyers may want to consider an FHA loan, which offers downpayments of 3.5 percent on a safe 30-year fixed-rate mortgage.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.29 percent in December from 6.09 percent in November; the rate was 6.10 percent in December 2007. Last week, Freddie Mac reported the 30-year rate was 5.12 percent.
Single-family home sales rose 7.0 percent to a seasonally adjusted annual rate of 4.26 million in December from a level of 3.98 million in November, but are 1.4 percent below a 4.32 million-unit pace in December 2007. For all of 2008, single-family sales fell 11.9 percent to 4,349,000.
The median existing single-family home price was $174,700 in December, down 14.8 percent from a year ago. For all of 2008, the single-family median was $197,100, which is 9.5 percent below 2007.
Existing condominium and co-op sales increased 2.1 percent to a seasonally adjusted annual rate of 480,000 units in December from 470,000 in November, but are 18.4 percent below the 588,000-unit level a year ago. For all of 2008, condo sales dropped 21.0 percent to 563,000 units.
The median existing condo price4 was $181,400 in December, down 18.3 percent from December 2007. For all of 2008, the median condo price was $210,000, which is 7.2 percent below 2007.
Regionally, existing-home sales in the Northeast slipped 1.4 percent to an annual pace of 720,000 in December, and are 14.3 percent below December 2007. The median price in the Northeast was $235,000, which is 7.8 percent lower than a year ago.
Existing-home sales in the Midwest increased 4.0 percent in December to a level of 1.04 million but are 10.3 percent below a year ago. The median price in the Midwest was $140,800, down 11.4 percent from December 2007.
In the South, existing-home sales rose 7.4 percent to an annual pace of 1.74 million in December, but are 11.2 percent lower than December 2007. The median price in the South was $158,600, which is down 8.0 percent from a year ago.
Existing-home sales in the West jumped 13.6 percent to an annual rate of 1.25 million in December and are 31.6 percent higher than a year ago. The median price in the West was $213,100, down 31.5 percent from December 2007.
Reprinted from REALTOR® Magazine January 2009 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2009. All rights reserved.
Existing-home sales - including single-family, townhomes, condominiums and co-ops - jumped 6.5 percent to a seasonally adjusted annual rate1 of 4.74 million units in December from a downwardly revised pace of 4.45 million units in November, but are 3.5 percent below the 4.91 million-unit pace in December 2007.
For all of 2008 there were 4,912,000 existing-home sales, which was 13.1 percent below the 5,652,000 transactions recorded in 2007. This is the lowest volume since 1997 when there were 4,371,000 sales.
Lawrence Yun, NAR chief economist, said home prices continue to fall significantly. "It appears some buyers are taking advantage of much lower home prices," he said. "The higher monthly sales gain and falling inventory are steps in the right direction, but the market is still far from normal balanced conditions. Buyers will continue to have an edge over sellers for the foreseeable future."
Total housing inventory at the end of December fell 11.7 percent to 3.68 million existing homes available for sale, which represents a 9.3-month supply2 at the current sales pace, down from a 11.2-month supply in November.
Yun said the market is underperforming and hurting the broader economy. "We've added 25 million people to our population over the past decade and housing affordability conditions are the best we've seen since 1973, but household formation is much lower than expected," he said. "Consequently, there is a pent-up demand which could be unleashed with the right stimulus, including a non-repayable home buyer tax credit. The Obama administration and Congress need to move fast to stimulate a spring sales upturn which will help to stabilize home prices and set the foundation for a sustainable economic recovery."
The national median existing-home price3 for all housing types was $175,400 in December, which is 15.3 percent below December 2007 when the median was $207,000. There remains a significant downward distortion in the current median from a large number of distress sales at discounted prices, currently 45 percent of transactions; the median is where half of the homes sold for more and half sold for less. For all of 2008, the median price was $198,600, down 9.3 percent from $219,000 in 2007.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said it's an excellent time for first-time home buyers with good jobs. "The typical buyer plans to stay in their home for 10 years, which is the correct approach in today's market," he said. "With historically low mortgage interest rates, flexible sellers, a large inventory, and homes that are selling for less than replacement construction costs in much of the country, buyers who've been on the fence should take a closer look at today's market." McMillan added that first-time buyers may want to consider an FHA loan, which offers downpayments of 3.5 percent on a safe 30-year fixed-rate mortgage.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.29 percent in December from 6.09 percent in November; the rate was 6.10 percent in December 2007. Last week, Freddie Mac reported the 30-year rate was 5.12 percent.
Single-family home sales rose 7.0 percent to a seasonally adjusted annual rate of 4.26 million in December from a level of 3.98 million in November, but are 1.4 percent below a 4.32 million-unit pace in December 2007. For all of 2008, single-family sales fell 11.9 percent to 4,349,000.
The median existing single-family home price was $174,700 in December, down 14.8 percent from a year ago. For all of 2008, the single-family median was $197,100, which is 9.5 percent below 2007.
Existing condominium and co-op sales increased 2.1 percent to a seasonally adjusted annual rate of 480,000 units in December from 470,000 in November, but are 18.4 percent below the 588,000-unit level a year ago. For all of 2008, condo sales dropped 21.0 percent to 563,000 units.
The median existing condo price4 was $181,400 in December, down 18.3 percent from December 2007. For all of 2008, the median condo price was $210,000, which is 7.2 percent below 2007.
Regionally, existing-home sales in the Northeast slipped 1.4 percent to an annual pace of 720,000 in December, and are 14.3 percent below December 2007. The median price in the Northeast was $235,000, which is 7.8 percent lower than a year ago.
Existing-home sales in the Midwest increased 4.0 percent in December to a level of 1.04 million but are 10.3 percent below a year ago. The median price in the Midwest was $140,800, down 11.4 percent from December 2007.
In the South, existing-home sales rose 7.4 percent to an annual pace of 1.74 million in December, but are 11.2 percent lower than December 2007. The median price in the South was $158,600, which is down 8.0 percent from a year ago.
Existing-home sales in the West jumped 13.6 percent to an annual rate of 1.25 million in December and are 31.6 percent higher than a year ago. The median price in the West was $213,100, down 31.5 percent from December 2007.
Reprinted from REALTOR® Magazine January 2009 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2009. All rights reserved.
Friday, February 13, 2009
Kooliks Optimistic for 2009!
Every four years, the race for the Presidency brings a unique feeling of both opportunity and uncertainty. This upcoming year is forecasted to be one of many changes in all areas of the economy. "Right now, we are seeing the government work hard to bring forth new mortgage programs. says Elliot Koolik.
With plans to create future jobs, salary increases and the possibility of a new stimulus package, the housing market has a lot to look forward to. Recently, the government has discussed possibly using $50 to $100 billion of the remaining $700 billion Troubled Asset Relief Program to use towards reducing foreclosures and an $825 billion stimulus package.
“We’ve seen an increase in activity lately with a lot of foreign investors continuing to show their confidence in the U.S. real estate market.” says Elliot Koolik. According to a survey released by the Association of Foreign Investors in Real Estate, foreign investors are planning to spend significantly more this year than 2008. Foreign lenders are planning to increase loans by 58% in U.S. according to transactions completed in October.
Mortgage rates are now at a record low and buyers in Florida are taking advantage of the tremendous opportunity offered in the real estate market. The median sales price in Palm Beach county rose between October and November 2008 and the same is expected to come in the future months.
“Elliot and I know that the economy will continue to push through and begin to turn around. says Wendy Koolik. Florida is one of the most popular states and it’s a fact that tourists, both local and foreign, flock to Boca Raton to partake in our beautiful weather, sandy beaches and our wonderful cultural community.” “The fundamentals of why people want to live in the Boca Raton area have not changed. We always seem to have a constant flow of people, between the baby boomers, young families, relocations, and international buyers who want to live and visit our warmer weather. says Elliot Koolik. I believe that the Boca Raton area will be able to bounce back a lot faster than other communities.”
The Kooliks believe that it is important that we as a community have a positive attitude and remain optimistic. “We should not allow the media to create a “self-fulfilling” prophecy and paint a picture of our real estate market as doom and gloom. Deals are being done everyday when realistic buyers and sellers come together.” says Elliot Koolik.
“The reality is that it’s easy to be optimistic about the future when you think about the fact that there is no denying that the Greater Boca Raton/Delray Beach area is still and will always remain a top destination.” says Wendy Koolik.
With plans to create future jobs, salary increases and the possibility of a new stimulus package, the housing market has a lot to look forward to. Recently, the government has discussed possibly using $50 to $100 billion of the remaining $700 billion Troubled Asset Relief Program to use towards reducing foreclosures and an $825 billion stimulus package.
“We’ve seen an increase in activity lately with a lot of foreign investors continuing to show their confidence in the U.S. real estate market.” says Elliot Koolik. According to a survey released by the Association of Foreign Investors in Real Estate, foreign investors are planning to spend significantly more this year than 2008. Foreign lenders are planning to increase loans by 58% in U.S. according to transactions completed in October.
Mortgage rates are now at a record low and buyers in Florida are taking advantage of the tremendous opportunity offered in the real estate market. The median sales price in Palm Beach county rose between October and November 2008 and the same is expected to come in the future months.
“Elliot and I know that the economy will continue to push through and begin to turn around. says Wendy Koolik. Florida is one of the most popular states and it’s a fact that tourists, both local and foreign, flock to Boca Raton to partake in our beautiful weather, sandy beaches and our wonderful cultural community.” “The fundamentals of why people want to live in the Boca Raton area have not changed. We always seem to have a constant flow of people, between the baby boomers, young families, relocations, and international buyers who want to live and visit our warmer weather. says Elliot Koolik. I believe that the Boca Raton area will be able to bounce back a lot faster than other communities.”
The Kooliks believe that it is important that we as a community have a positive attitude and remain optimistic. “We should not allow the media to create a “self-fulfilling” prophecy and paint a picture of our real estate market as doom and gloom. Deals are being done everyday when realistic buyers and sellers come together.” says Elliot Koolik.
“The reality is that it’s easy to be optimistic about the future when you think about the fact that there is no denying that the Greater Boca Raton/Delray Beach area is still and will always remain a top destination.” says Wendy Koolik.
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