Investors Blog

03-19-2017

U.S. foreclosures drop to 9-year low

IRVINE, Calif. – Feb. 2, 2017 – In 2016, distressed sales hit a nine-year low, according to ATTOM Data Solutions latest report. In the U.S., 16.2 percent of single-family home and condo sales were distressed sales – bank-owned sales, short sales or foreclosure auctions sold to third-party buyers – down from 18.8 percent of all sales in 2015.

Bank-owned (REO) sales hit a 10-year low, accounting for 8.0 percent of all sales in 2016, down from 10.0 percent in 2015.
Short sales – homes that sold for less than the combined amount of loans secured by the property – hit an eight-year low, and accounted for 5.5 percent of all 2016 home sales, down from 6.0 percent in 2015.
Foreclosure auction sales (trustee's sales or sheriff's sales) sold to third-party investors (not including those going back to the foreclosing lender) hit a nine-year low, and accounted for 2.8 percent of all home sales in 2016, down from 2.9 percent in 2015.

"The housing market hit several important milestones in 2016, with distressed sales at a nine-year low and home prices at a 10-year high – just barely below the pre-recession peak in 2006," says Daren Blomquist, senior vice president at ATTOM Data Solutions.

"This was all good news for home sellers, who realized their biggest average profits since purchase nationwide in 2016," Blomquist adds. "Even distressed property sellers are benefitting from this hot seller's market, with a record-high share of homes at foreclosure auction being purchased by third-party buyers rather than reverting back to the foreclosing bank."

While foreclosures were generally down, the share sold to third-party investors hit a record high, however: Third-party foreclosure-auction buyers accounted for 28.5 percent of all completed auctions in 2016, with the rest (71.5 percent) going back to the foreclosing lender. That's an increase from 23.5 percent in 2015 and the highest share since ATTOM first recording the numbers in 2000.

Two Florida cities made ATTOM's top-5 list for total numbers of foreclosures sold to third-party buyers, with Miami at No. 1 (4,954), followed by Philadelphia (4,043), Atlanta (3,657), New York-Newark-Jersey City (3,495) and Tampa (3,163).

"Increased competition at the foreclosure auction is resulting in higher sales prices there, which can even result in surplus proceeds going to the distressed homeowner in some cases after other lien holders have been paid," Blomquist says.

"Our analysis of sales prices at completed foreclosure auctions in 2016 shows the smallest average loss from the property's previous sale price since 2007, with 29 percent of properties nationwide selling for more than the previous sales price at the foreclosure auction," he says. "In a handful of markets … more than 50 percent of properties sold at foreclosure auctions in 2016 sold for more than their previous sale price."

In a separate analysis of home prices, ATTOM found that 89 percent of metro areas it tracked saw home prices increases last year, and a few areas saw double-digit increases, including some Florida cities. Among 201 metropolitan statistical areas with a population of at least 200,000 and sufficient home price data, those with double-digit gains include Tampa-St. Petersburg (up 14.0 percent), Denver (up 11.3 percent), Portland, Oregon (up 12.1 percent); Orlando (up 10.1 percent) and Jacksonville (up 12.9 percent).

Among 201 metropolitan statistical areas with a population of at least 200,000 and sufficient home price data, 89 metro areas (44 percent) reached new all-time home price peaks in 2016; and 106 of 201 areas (53 percent) reached new all-time home price peaks since 2010.

Builders to millennials: We need your help

WASHINGTON – Dec. 20, 2016 – The National Association of Home Builders (NAHB) is touting growing job opportunities in residential construction for millennials, as the building industry continues to face a shortage of skilled workers. That lack of manpower has been blamed for project completion delays that, in turn, make projects cost more.

The number of available construction jobs has grown since the end of recession. There were about 214,000 construction sector jobs available as of July – the second highest monthly count of unfilled jobs since May 2007.

"Residential construction offers a number of fulfilling career opportunities, from architects and engineers to carpenters, plumbers, electricians, painters and landscapers," says NAHB Chairman Ed Brady. "Yet, our builders are telling us that access to skilled labor remains a top challenge."

Many workers in the home building industry left the field during the Great Recession for other employment sectors. Not enough have returned since then, builders say.

"As the housing industry continues to recover, we are focused on training more workers and leaders to fill these important roles," Brady says.

NAHB is teaming with HBI, a career training resource in the building industry, to offer educational programs in 41 states and the District of Columbia. They hope to reach more than 13,000 students each year. NAHB is also offering a Student Chapters Program, which has 140 secondary, associate and four-year college chapters nationwide that offer students first-hand exposure to the building industry through NAHB educational programing and networking opportunities.

Source: National Association of Home Builders

For millennial buyers, home is in the heartland

PLEASANTON, Calif. – Dec. 20, 2016 – As housing prices continue to rise, more millennial homebuyers eye cities in the American heartland where prices remain relatively more affordable, according to the October Ellie Mae Millennial Tracker.

Minneapolis topped Ellie Mae's list as the most popular metropolitan area for homes purchased by millennials (44 percent), followed closely by Philadelphia (43 percent), St. Louis (42 percent), Chicago (40 percent) and Detroit (40 percent).

Two states, Florida and California, laid claim to the least popular cities for this new generation of homeowners: Miami (27 percent), Los Angeles (29 percent), San Francisco (30 percent), San Diego (30 percent) and Tampa-St. Petersburg (30 percent).

Snapshot of the typical millennial buyer

Slightly more than half were single (51 percent) while 49 percent were married
The average age was 28.7 years old
Men were more likely to be listed as the primary borrower (64 percent) than women (33 percent)
The average FICO score for was 722
Millennials opted to take out conventional loans (57 percent) more than FHA (40 percent), VA (1 percent) or unspecified financing options (1 percent)
The average loan amount for purchases was $182,498

"As housing prices continue to rebound, millennials are increasingly representing a higher percentage of homeowners in the middle of the country, where they can get more home for their money," says Joe Tyrrell, executive vice president of corporate strategy at Ellie Mae. "The average appraised value of homes purchased by this new generation of buyers was $223,153 in October – a modest increase from $221,383 in September, but nearly a five percent increase from when it was $212,939 in June."

Other notable findings

Purchases represented 77 percent of closed loans to millennials, down from 80 percent in September
Refinances made up 22 percent of all closed loans to millennials in October, up from 20 percent in September
Across all loans, the average debt-to-income ratio (DTI) decreased to 23/36, down from 24/36 in September, while loan-to-value (LTV) remained stable at 87
Average days to close for millennials held steady at 47 overall, with 46 days for conventional loans and 47 for FHA loans
On average, it took millennial borrowers 49 days to close refinances and 45 days to close purchases
The average amount for closed loans to millennial borrowers was $184,733 in October, a slight increase from an average of $184,179 the month prior
The average loan amount for conventional loans made to millennials, $204,059, was essentially flat compared to $203,780 in September
The average FHA loan amount received by millennial borrowers increased to $175,094, up from $174,015 in September

Flipping down in 3Q – but 4 Fla. metros in top 10

IRVINE, Calif. – Dec. 8, 2016 – ATTOM Data Solutions' Q3 2016 U.S. Home Flipping Report finds an overall drop in the percentage of homes being flipped. ATTOM defines a home flip as a property sold in an arms-length sale for the second time within a 12-month period.

Florida saw a fair share of that declining number of home flips, however, with four metro areas making ATTOM's top 10 list of "markets with the highest flipping rate."

Among 92 metropolitan statistical areas with at least 90 homes flipped in Q3 2016, those with the highest flipping rate were:

Memphis (11.0 percent)
Clarksville, Tennessee (9.5 percent)
Deltona-Daytona Beach-Ormond Beach (9.3 percent)
Tampa-St. Petersburg (9.3 percent)
Visalia-Porterville, California (9.3 percent)
York-Hanover, Pennsylvania (9.2 percent)
Lakeland-Winter Haven (9.0 percent)
Fresno, California (8.7 percent)
Miami (8.6 percent)
Las Vegas (8.2 percent)

"While the macro trends of low housing inventory and rising home prices are favorable for flippers, they are also a double-edged sword, attracting more competition and reducing the availability of deals – particularly in the most fundamentally sound local markets," says Daren Blomquist. "This is chasing some investors into markets and neighborhoods that may be less fundamentally sound but also offer more value-add opportunities for flippers in the form of aging housing inventory."

Home flipping profits

Homes flipped in Q3 2016 sold on average for $190,000, with an average gross flipping profit of $60,800 more than the average purchase price of $129,200. That's down from an average gross flipping profit of $62,424 in the previous quarter, which was the highest going back to Q1 2000, the earliest historical data available in the report.

The average gross flipping profit represented an average gross return on investment (ROI) of 47.1 percent of the purchase price, down from an average gross flipping ROI of 49.5 percent in the previous quarter and down from 47.9 percent a year ago.

"While the high-level gross flipping profits are impressive, it's important to note that they do not include all the costs incurred by flippers, including rehab, financing, property taxes and other carrying costs," Blomquist says.

"It's also important to note that the overall averages mask the fact that not every flip ends profitably for the investor," Blomquist adds. "About 8 percent of the homes flipped in the third quarter actually sold for less than what the flipper purchased them for, and about 21 percent of the flips yielded a gross flipping ROI below 10 percent – likely meaning the flipper walked away with a net loss on the deal."

Of all homes flipped in Q3 2016, the flipper bought the property at an average 25.2 percent discount below full "after repair" market value, and he sold the property for a 6.7 percent premium above market value.

Other takeaways

Homes flipped in Q3 2016 took an average of 180 days to flip, down from a 10-year high of 185 days in the previous quarter, but still up from an average 176 days a year earlier.
Flippers sold 53 percent of all homes in Q3 2016 for $200,000 or less; 33 percent were sold for between $200,000 and $400,000. Homes flipped for $500,000 or more accounted for less than 9 percent of all flips during the quarter, and homes flipped for $1 million or more accounted for less than 2 percent.
Flipped homes sold by the flipper for between $50,000 and $200,000 yielded an average gross flipping ROI of 58 percent, the highest among price ranges in the third quarter. Homes flipped for between $2 million and $5 million yielded an average gross flipping ROI of 26 percent, the lowest among price ranges for the quarter.

Fla.’s housing market: Median prices continue to rise in Oct. 2016

ORLANDO, Fla. – Nov. 22, 2016 – Florida's housing marketreported higher median prices and fewer all-cash sales in October, according to the latest housing data released by Florida Realtors®. Shortfalls in inventory continued to impact sales statewide: Single-family home sales totaled 20,194, down 5.3% from October 2015, while townhouse-condo sales totaled 7,955, down 12.3 percent compared to a year ago.

"Florida's housing market continues to experience fewer sales of distressed properties and a restricted supply of homes for sale," said 2016 Florida Realtors®President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. "A shortage of new listings could impact home sales in the long run. When you look at the state's tight inventory of homes and a decline in the median time it takes for a home to sell (go under contract), it shows buyers are still in the market. However, they're not finding as many potential options as they'd like."

Home sellers continued to get more of their original asking price at the closing table in October: Sellers of existing single-family homes received 96.1 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.8 percent (median percentage).

The statewide median sales price for single-family existing homes last month was $220,000, up 11.7 percent from the previous year, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. Thestatewide median price for townhouse-condo properties in October was $161,000, up 8.1 percent over the year-ago figure.

In October, statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year for the 59th month in a row, Veissi noted. The median is the midpoint; half the homes sold for more, half for less.

Accordingto the National Association of Realtors®(NAR), thenational median sales price for existing single-family homes in September 2016 was $235,700, up 5.6 percent from the previous yearthe national median existing condo price was$222,100.In California, the statewide median sales price for single-family existing homes in September was $514,320; in Massachusetts, it was $350,000; in Maryland, it was $266,294; and in New York, it was $250,000.

Closed sales data reflected fewer short sales and cash-only sales in October: Short sales for single-family homes declined 39.4 percent while short sales for townhouse-condo properties dropped 37.2 percent. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

"It's hard to say at this point what may be behind the weaker sales numbers in October – trends are difficult to spot based on one-month's worth of data," said Florida Realtors®Chief Economist Brad O'Connor. "While it's tempting to consider the possibility that Hurricane Matthew or the imminent (at that time) presidential election played a major role in October's sales figures, let's remember the typical property sale that closed in October probably went under contract a month or two prior. And in the particular case of Matthew, the decline in October's sales did not uniformly appear to be any worse along the Atlantic coast than anywhere else in the state.

"Of course, a limited supply of for-sale homes, coupled with rising median prices, are two factors to consider when looking at closed sales data."

Inventory dipped to a 4.2-months' supply in October for single-family homes and was at a 5.9-months' supply for townhouse-condo properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.47 percent in October 2016, significantly lower than the 3.80 percent average recorded during the same month a year earlier.

For the full statewide housing activity reports, go to Florida Realtors Research and Statistics on floridarealtors.org. Realtors also have access to local market stats (password protected) on Florida Realtors’ website.

1 in 4 Fla. owners with mortgage is ‘equity rich’

IRVINE, Calif. – Nov. 17, 2016 – ATTOM Data Solutions' Q3 2016 U.S. Home Equity and Underwater Report finds that 23.4 percent of U.S. homeowners with a mortgage are equity rich, meaning their loan-to-value ratio is 50 percent or lower. It's a year-to-year increase of more than 2.6 million owners.

In Florida, the ratio is similar, according to ATTOM, where 23.2 percent of owners with a mortgage are equity rich.

On the flipside, 16 percent of Florida owners with a mortgage are still "seriously underwater," meaning they have a loan-to-value ratio of 125 percent or higher. Nationwide, the seriously underwater percentage is 10.8 percent – a year-to-year decrease of 854,000-plus homeowners.

"Close to one in every five U.S. homeowners with a mortgage is now equity rich thanks to a combination of rising home prices and lengthening homeownership tenures," says Daren Blomquist, senior vice president at ATTOM Data Solutions.

"Median home prices increased on a year-over-year basis for the 18th consecutive quarter in Q3 2016, and homeowners who sold in the third quarter had owned their home an average of 7.94 years – a new high in our data and substantially higher than the average homeownership tenure of 4.26 years pre-recession," says Blomquist. "As homeowners stay in their homes longer before moving up, they are amassing more home equity wealth."

A closer look by metro areas finds no Florida city in the top 10 on ATTOM's list, however. Still, one city – Cape Coral-Fort Myers – was notable for being the only state city in the list of seven metro areas that saw the number of equity-rich homeowners increase by more than 10 percent as the area logged a 11.5 percentage point increase.

However, one Florida metro area also made ATTOM's list of seven cities where more than 20 percent of homeowners with a mortgage are still underwater: Lakeland-Winter Haven ranked at No. 7 with an even 20 percent.

U.S. foreclosure activity up 27% in Oct.

IRVINE, Calif. – Nov. 10, 2016 – ATTOM Data Solutions' October 2016 U.S. Foreclosure Market Report found a surprising month-to-month increase in U.S. foreclosures. And while Florida continues to improve in the state-by-state rankings – it came in at No. 6 in October – Daren Blomquist, senior vice president at ATTOM Data Solutions, thinks foreclosures could again rise in the Sunshine State.

In Florida, one out of every 895 housing units is somewhere in the foreclosure process. That's still more at-risk homes that the national foreclosure rate: one in every 1,258 U.S. housing units. In New Jersey, the top U.S. foreclosure state, one in every 564 housing units is in some state of foreclosure.

"We would expect to see an increase in Florida foreclosure activity in the coming months given the October ruling by the state supreme court that allows lenders to re-file a foreclosure action against a homeowner in default, even if a previous foreclosure case against that homeowner was dismissed and that original foreclosure case was filed more than five years ago – outside the state's statute of limitations for foreclosure," Blomquist said.

An ATTOM interactive map of Florida is posted online, displaying the total number of foreclosures and for-sale homes by county.

Other states with foreclosure rates ranking among the top 10 were Nevada (one in every 826 housing units with a foreclosure filing during the month), Ohio (one in every 930 housing units), Pennsylvania (one in every 1,018 housing units) and Georgia (one in every 1,028 housing units).

While foreclosures spiked month-to-month in October, they continued to drop in ATTOM's year-to-year comparison, and it was the 13th consecutive month where U.S. foreclosure activity decreased on a year-over-year basis. However, the month-to-month increase was the biggest since August 2007.

Blomquist says that the latest foreclosure increase isn't tied to the Great Recession.

"While some states are still slogging through the remnants of the last housing crisis, the foreclosure activity increases in states such as Arizona, Colorado and Georgia are more heavily tied to loans originated since 2009," says Blomquist. "The increase in October isn't enough evidence to indicate a new foreclosure crisis emerging in these states, but it certainly demonstrates that this housing recovery is not completely devoid of risk."

Blomquist says October's uptick in foreclosures largely comes from mortgage originated as the U.S. recovered from the recession.

"The loans … that appear to be most susceptible to foreclosure are those such as FHA and VA with low downpayments," Blomquist says. "Our data shows FHA and VA loans combined represent 49 percent of all active foreclosure inventory for loans originated in the seven years ending in 2015. By comparison, FHA and VA loans only represent 12 percent of all active foreclosure inventory among loans originated in the previous seven-year period, from 2002 to 2008."

Distressed home sales hit nine-year low in 3Q

IRVINE, Calif. – Nov. 3, 2016 – ATTOM Data Solutions' latest study for the third quarter finds that distressed sales – bank-owned (REO) sales, sales of homes actively in foreclosure and short sales – accounted for 12.9 percent of all U.S. single family home and condo sales in Q3 2016, a drop from 15 percent in the previous quarter and 15.9 percent year-to-year.

Nationwide, distressed sales hit its lowest percentage in nine years – since the third quarter of 2007 – and they're now far below the peak number of 43.9 percent in the first quarter of 2009.

However, distressed sales still play a role in Florida. ATTOM reports that five of the nation's top 15 cities for distressed sales are located in the Sunshine State, with Lakeland-Winter Haven No. 4 at 20.1 percent. Other Florida cities where distressed sales make up at least 15 percent of all sales are Orlando, Miami, Tampa and Jacksonville.

"Distressed inventory for sale is virtually non-existent in many of the nation's hottest housing markets, and when a distressed property is listed for sale in those markets it often sells quickly and at little or no discount," says Daren Blomquist, senior vice president at ATTOM Data Solutions. "The scarcity of discounted distressed inventory is chasing away cash buyers and other bargain hunters, but it's certainly good news for home sellers, who nationwide realized the biggest home price gains since purchase in nine years.

Year-to-year price increases

In one category studied by ATTOM – the year-over-year increase in median sales prices – Florida cities ranked in four of the top five spots: Jacksonville (prices rose 24 percent), Tampa-St. Petersburg (up 17 percent), Palm Bay-Melbourne-Titusville (up 17 percent), Chicago (up 17 percent) and Pensacola (up 15 percent).

Blomquist says seller prices gains have started to "wane in some of the highest-priced markets where appreciation is beginning to cool, indicating those markets are past their prime as sellers' markets." However, he still sees "a number of buyers' markets across the country where a high level of lingering distress and relatively weak demand from owner-occupant buyers provides investors with plenty of bargain-buying opportunities."

Cash sales

ATTOM also found a significant drop in cash sales nationwide, which also hit a nine-year low. Again, however, Florida bucked the trend.

Among metropolitan statistical areas with at least 1,000 single-family and condo home sales in the third quarter of 2016, those with the highest share of all-cash purchases were Raleigh, N.C. (53.1 percent), Miami (45.8 percent); Naples (45.2 percent); Ocala (44.9 percent) and North Port-Sarasota-Bradenton (43.2 percent).

Report highlights

Buyer price gains in two top markets – San Francisco and San Jose – appear to have peaked in the second quarter and have since declined. Five other cities outside Florida also saw home value declines.
The number of FHA-backed home purchases declined for the second quarter in a row. Nationwide, FHA mortgages accounted for 15.9 percent of all single family and condo home sales in the third quarter, down from 16.1 percent in the second quarter and from 16.7 percent a year ago.
Purchases by institutional investors (entities that purchase at least 10 homes in a calendar year) appear to be increasing after dropping for 11 quarters. As a percentage of U.S. buyers, they've now increased for the past two quarters, accounting for 2.7 percent of all single family and condo home sales in the third quarter, up from 2.6 percent in the previous quarter and from 2.2 percent a year ago.
Of the top five U.S. cities for institutional investors, one Florida city makes the list. In Lakeland-Winter Haven, institutional buyers made up 7.5 percent of the market in the third quarter.

NAR: Pending home sales up in Sept.

WASHINGTON – Oct. 27, 2016 – Pending home sales shifted higher in September following August's notable dip and are now at their fifth highest level over the past year, according to the National Association of Realtors®(NAR). Increases in the South and West outgained declines in the Northeast and Midwest.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, grew 1.5 percent to 110.0 in September from a slight downward revision of 108.4 in August. With last month's gain, the index is now 2.4 percent higher than last September (107.4) and has risen year-over-year for 22 of the last 25 months.

A robust increase in the West and a healthy bump in the South pushed pending sales upward in September, says Lawrence Yun, NAR chief economist.

"Buyer demand is holding up impressively well this fall, with Realtors reporting much stronger foot traffic compared to a year ago," Yun says. "Although depressed inventory levels are keeping home prices elevated in most of the country, steady job gains and growing evidence that wages are finally starting to tick up are encouraging more households to consider buying a home."

There are many positive indicators showing the housing market's overall health continues to improve, says Yun reflecting on last week's existing home sales report. In addition to sales matching their third highest pace (5.47 million) since February 2007 (5.79 million), distressed sales – foreclosures and short sales – fell to their lowest share since NAR began tracking them in October 2008 (4 percent). And sales to first-time buyers reached 34 percent, which matched the highest share since July 2012 and was up convincingly from September 2015 (29 percent).

"The one major predicament in the housing market is without a doubt the painfully low levels of housing inventory in much of the country," adds Yun. "It's leading to home prices outpacing wages, properties selling a lot quicker than a year ago, and the home search for many prospective buyers being highly competitive and drawn out because of a shortage of listings at affordable prices."

The Pending Home Sales Index in the Northeast fell 1.6 percent to 96.5 in September, but it's still 7.7 percent above a year ago. In the Midwest, the index declined modestly (0.2 percent) to 104.6 in September and is 1.0 percent lower year-to-year.

Pending home sales in the South rose 1.9 percent to an index of 122.1 in September; it's now 1.7 percent higher than last September. The index in the West jumped 4.7 percent in September to 107.3, and is now 4.0 percent above a year ago.

Yun will present NAR's 2017 economic outlook and forecast on Friday, Nov. 4, at the 2016 Realtors Conference & Expo in Orlando, Florida. Dennis Lockhart, president and CEO of the Federal Reserve Bank of Atlanta, will discuss current economic conditions.

Fla.’s housing market: Median prices rise in Sept.

ORLANDO, Fla. – Oct. 20, 2016 – Florida's housing market had more new listings, higher median prices and fewer all-cash closed sales in September, according to the latest housing data released by Florida Realtors®.

Tight inventory continues to impact the state's housing market, noted Florida Realtors Chief Economist Brad O'Connor. Closed sales of single-family homes statewide totaled 22,704 last month, slightly down (0.5 percent) from September 2015. Meanwhile, in the townhouse-condo market, statewide closed sales totaled 8,818 last month, down 3.9 percent year-to-year.

"Florida's economy continues to grow, resulting in improving jobs and incomes for workers across the state,"says 2016 Florida Realtors President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. "In turn, that is generating interest from many would-be buyers who are ready to enter the housing market. However, the latest data shows that a continued lack of inventory – especially in the mid-$200,000-and-under range – is affecting those potential homebuyers, leaving them with limited choices and higher prices as a result."

Home sellers continued to get more of their original asking price at the closing table in September: Sellers of existing single-family homes received 96.2 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.8 percent (median percentage).

The statewide median sales price for single-family existing homes last month was $222,500, up 11.3 percent from the previous year, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. Thestatewide median price for townhouse-condo properties in September was $160,000, up 6.7 percent over the year-ago figure.

In September, statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year for the 58th month in a row, Veissi notes. The median is the midpoint: half the homes sold for more, half for less.

Accordingto the National Association of Realtors, thenational median sales price for existing single-family homes in August 2016 was $242,200, up 5.3 percent from the previous yearthe national median existing condo price was $225,100.In California, the statewide median sales price for single-family existing homes in August was$526,580; in Massachusetts, it was $375,000; in Maryland, it was $278,578; and in New York, it was $257,291.

Closed sales data reflected fewer short sales and cash-only sales in September: Short sales for single-family homes declined 33.8 percent year-to-year, while short sales for townhouse-condo properties dropped 27.2 percent. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

"Even though the number of Florida single-family home sales in September was essentially the same as last year, the composition of this year's group was quite different – and in a good way," says Florida Realtors Chief Economist Brad O'Connor. "Distressed sales made up only 10 percent of single family home sales this September, compared to over 19 percent in September 2015. And only 28 percent of sales were all-cash deals this time around, compared to 34 percent last year.

"If our housing markets are going to return to some semblance of what many might term 'normalcy,' it's vital that both of these trends continue."

Similar to previous months, inventory was at a 4.2-months' supply in September for single-family homes and at a 5.8-months' supply for townhouse-condo properties.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.46 percent in September 2016, which was lower than the 3.89 percent average recorded during the same month a year earlier.

Study: Fla. ranks fourth as business friendly state

WASHINGTON – Sept. 29, 2016 – The nonpartisan Tax Foundation released its 13th annual State Business Tax Climate Index, which measures how well-structured each state's tax code is by analyzing more than 100 variables in five tax categories: corporate, individual income, sales, property and unemployment insurance.

Wyoming once again took first place with the most competitive tax code in the country, while New Jersey maintained its long-standing position at the bottom of the pack.

Overall, Florida ranked fourth. Only three other states were deemed to have a more business-friendly tax code. This year's most competitive states include:

1. Wyoming
2. South Dakota
3. Alaska
4. Florida
5. Nevada
6. Montana
7. New Hampshire
8. Indiana
9. Utah
10. Oregon

This year's least competitive states include:

41. Louisiana
42. Maryland
43. Connecticut
44. Rhode Island
45. Ohio
46. Minnesota
47. Vermont and D.C.
48. California
49. New York
50. New Jersey

States are penalized for overly complex, burdensome and economically harmful tax codes, and rewarded for transparent and neutral tax codes that do not distort business decisions. A state's ranking can rise or fall in rank because of its own actions or actions taken by other states.

"Our goal with the State Business Tax Climate Index is to start a conversation between taxpayers and policymakers about how their states fare against the rest of the country," says Tax Foundation policy analyst Jared Walczak. "While there are many ways to show how much a state collects in taxes, the index is designed to show how well states structure their tax systems and to provide a roadmap for improvement."

The index can also be used as a tool for identifying state tax trends. For instance, the report shows that a number of states are now opting to simplify their tax systems by consolidating individual income tax brackets or even moving to a flat tax.

Hawaii eliminated its top three individual income tax brackets in 2016 and reduced its top marginal rate from 11 to 8.25 percent, for example. That improved its overall rank from 30th to 27th. North Carolina moved to a flat individual income tax in 2014 and continues to phase in rate reductions, building on its 2013 reforms and shoring up its place at 11th overall.

Another trend is the tendency for states to shift away from taxes on capital. Pennsylvania, for example, has now completely phased out its capital stock tax, boosting its property tax component ranking six places, from 38th to 32nd, and improving its overall state ranking from 28th to 24th.

The full report is available online, along with a map that graphically shows the ranking of each state.

Fla.’s housing sales, median prices rise in August

ORLANDO, Fla. – Sept. 22, 2016 – Florida's housing market reported more closed sales, higher median prices, more new listings and fewer all-cash closed sales in August, according to the latest housing data released by Florida Realtors®. Closed sales of single-family homes statewide totaled 25,070 last month, up 8.2 percent from August 2015.

"A continued lack of inventory – particularly in the mid-$200,000 and under range – is creating obstacles for many buyers who are trying to enter Florida's housing market," said 2016 Florida Realtors President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. "Rising median prices also may be an inhibiting factor for these would-be homeowners; however, the uptick in prices could persuade sellers that now is the time to list their properties for sale, which in turn may help ease the tight supply in many areas."

Home sellers continued to get more of their original asking price at the closing table in August: Sellers of existing single-family homes received 96.4 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.6 percent (median percentage).

The statewide median sales price for single-family existing homes last month was $225,000, up 12.6 percent from the previous year, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. Thestatewide median price for townhouse-condo properties in August was $160,000, up 6.7 percent over the year-ago figure.

In August, statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year for the 57th month in a row, Veissi noted. The median is the midpoint; half the homes sold for more, half for less.

Accordingto the National Association of Realtors (NAR), thenational median sales price for existing single-family homes in July 2016 was $246,000, up 5 percent from the previous yearthe national median existing condo price was $228,400.In California, the statewide median sales price for single-family existing homes in July was$509,830; in Massachusetts, it was $376,750; in Maryland, it was $289,088; and in New York, it was $255,000.

Looking at Florida's townhouse-condo market, statewide closed sales totaled 9,484 last month, up 3.3 percent compared to August 2015. Closed sales data reflected fewer short sales and cash-only sales in August: Short sales for townhouse-condo properties declined 37.4 percent while short sales for single-family homes dropped 37.3 percent. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

"Closed sales of single-family homes in Florida were up by 8.2 percent year-over-year in August, effectively erasing all of the losses from July," said Florida Realtors Chief Economist Brad O'Connor. "August's gains were broad-based, with 20 of Florida's 22 metro areas experiencing a year-over-year increase in sales. However, a single month's worth of data is rarely enough information to make assertions about a market's direction.

"In the present case, it's possible that a number of sales that might ordinarily have occurred in July were pushed back into August. Basically, if you consider the data over July and August together, the net growth rate continues the trend we've been seeing all year of slow but positive growth in the single-family market."

Inventory was at a 4.2-months' supply in August for single-family homes and at a 5.8-months' supply for townhouse-condo properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.44 percent in August 2016, which was notably lower than the 3.91 percent average recorded during the same month a year earlier.

CoreLogic: 548,000 U.S. homeowners regained equity in 2Q 2016

IRVINE, Calif., Sept. 15, 2016 – CoreLogic released a new analysis showing 548,000 U.S. homeowners regained equity in Q2 2016 compared with the previous quarter, increasing the percentage of homes with positive equity to 92.9 percent of all mortgaged properties, or approximately 47.2 million homes.

Nationwide, home equity grew year-over-year by $646 billion, representing an increase of 9.9 percent in Q2 2016 compared with Q2 2015.

In Q2 2016, the total number of mortgaged residential properties with negative equity stood at 3.6 million, or 7.1 percent of all homes with a mortgage. This is a decrease of 13.2 percent quarter over quarter from 4.2 million homes, or 8.2 percent, in Q1 2016 and a decrease of 19 percent year over year from 4.5 million homes, or 8.9 percent, compared with Q2 2015.

Negative equity, often referred to as "underwater" or "upside down," applies to borrowers who owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in home value, an increase in mortgage debt or a combination of both.

For homes in negative equity status, the national aggregate value of negative equity was $284 billion at the end of Q2 2016, decreasing approximately $20.4 billion, or 6.7 percent, from $305 billion in Q1 2016. On a year-over-year basis, the value of negative equity declined overall from $314 billion in Q2 2015, representing a decrease of 9.5 percent in 12 months.

Of the more than 50 million homes with a mortgage, approximately 8.6 million, or 17 percent, have less than 20 percent equity (referred to as under-equitied) and approximately 965,000, or 1.9 percent, have less than 5 percent equity (referred to as near-negative equity).

Borrowers who are under-equitied may have a difficult time refinancing their existing homes or obtaining new financing to sell and buy another home due to underwriting constraints. Borrowers with near-negative equity are considered at risk of shifting into negative equity if home prices fall.

"Home-value gains have played a large part in restoring home equity," said Dr. Frank Nothaft, chief economist for CoreLogic. "The CoreLogic Home Price Index for the U.S. recorded 5.2 percent growth in the year through June, an important reason that the number of owners with negative equity fell by 850,000 in the second quarter from a year earlier."

"We see home prices rising another 5 percent in the coming year based on the latest projected national CoreLogic Home Price Index," said Anand Nallathambi, president and CEO of CoreLogic. "Assuming this growth is uniform across the U.S., that should release an additional 700,000 homeowners from the scourge of negative equity."

Highlights as of Q2 2016:

Nevada had the highest percentage of mortgaged properties in negative equity at 15.3 percent, followed byFlorida (14 percent), Maryland (11.8 percent), Illinois (11.7 percent) and Arizona (11.6 percent). These top five states combined accounted for 33.7 percent of negative equity in the U.S., but only 18.6 percent of outstanding mortgages.
Texas had the highest percentage of homes with positive equity at 98.3 percent, followed by Alaska (98 percent), Colorado (97.8 percent), Hawaii (97.7 percent) and Utah (97.6 percent).
Of the 10 largest metropolitan areas by population, Miami-Miami Beach-Kendall, FL had the highest percentage of mortgaged properties in negative equity at 18.4 percent, followed by Las Vegas-Henderson-Paradise, NV (17.6 percent), Chicago-Naperville-Arlington Heights, IL (13.4 percent), Washington-Arlington-Alexandria, DC-VA-MD-WV (9.9 percent) and New York-Jersey City-White Plains, NY-NJ (5.9 percent).
Of the same 10 largest metropolitan areas, San Francisco-Redwood City-South San Francisco, CA had the highest percentage of mortgaged properties in a positive equity position at 99.4 percent, followed by Denver-Aurora-Lakewood, CO (98.5 percent), Houston-The Woodlands-Sugar Land, TX (98.4 percent), Los Angeles-Long Beach-Glendale, CA (96.7 percent) and Boston, MA (95 percent).
Of the total $284 billion in negative equity, first liens without home equity loans accounted for $159 billion aggregate negative equity, while first liens with home equity loans accounted for $125 billion.
Among underwater borrowers, approximately 2.2 million hold first liens without home equity loans. The average mortgage balance for this group of borrowers is $252,000, and the average underwater amount is $73,000.
Approximately 1.4 million of all underwater borrowers hold both first and second liens. The average mortgage balance for this group of borrowers is $314,000, and the average underwater amount is $88,000.
The bulk of positive equity for mortgaged residential properties is concentrated at the high end of the housing market. For example, 96 percent of homes valued at $200,000 or more have equity compared with 89 percent of homes valued at less than $200,000.
Q1 2016 data was revised. Revisions with public records data are standard and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results.

Home Purchase Sentiment Index retreats slightly, but gradual upward trend continues

WASHINGTON – Sept. 7, 2016 – After reaching an all-time high in July, the Fannie Mae Home Purchase Sentiment Index (HPSI) fell 1.5 points to 85.0 in August, but continued its gradual climb upward from the same period last year. Overall, the HPSI is up 4.2 points since this time last year.

Four of the six HPSI components decreased during the month, most notably the share of consumers who expect home prices to go up in the next 12 months and the share who say now is a good time to sell a home – decreasing 6 and 5 percentage points in August, respectively.

Additionally, more consumers reported a positive employment outlook from the previous month, up 4 percentage points in August, and those reporting significantly higher household income fell 1 percentage point.

Overall, consumers' housing sentiment remains positive and bodes well for continued growth in housing activity.

"Consumers have a fairly optimistic 12-month outlook on housing at the end of the summer homebuying season, supported by increased job confidence and more favorable expectations regarding their personal financial situations compared with this time last year," said Doug Duncan, senior vice president and chief economist at Fannie Mae. "The return to a slight upward trend in the HPSI during the spring and summer is, thus far, in line with our forecast, which calls for 4 percent growth in home sales in 2016 to the best level since 2006 and continued improvement for 2017."

Highlights

Increasing for the third consecutive month, the net share of Americans who say it is a good time to buy a house rose by 1 percentage point to 34%.
The net percentage of those who say it is a good time to sell fell 5 percentage points from an all-time high in July to 15%.
The net share of Americans who say that home prices will go up fell 6 percentage points from last month to 35%.
The net share of those who say mortgage rates will go down over the next year fell 2 percentage points to -38%, after increasing for the past three months.
The net share of Americans who say they are not concerned with losing their job rose 4 percentage points to 73%.
The net share of Americans who say their household income is significantly higher than it was 12 months ago fell 1 percentage point to 10%, stabilizing after June's steep fall.

What’s hampering home sales the most?

CHICAGO – Sept. 1, 2016 – A dearth of homes for sale, declining affordability, appraisal issues and lender processing delays are the key issues affecting sales, according to the latest Realtors® Confidence Index Survey, a survey sent to more than 50,000 real estate professionals about their latest transactions.

That said, most Realtors remain confident about the outlook for the housing market for the next six months across all property types. The index showed confidence registering above 50, and confidence is higher than a year ago.

Most of the Realtors surveyed say that with home prices becoming less affordable they expect prices to moderate, growing at a slower pace of 3.3% in the next 12 months.

Many real estate professionals report that tight inventories of homes for sale have led to multiple offers and price increases in their markets. In July, 41% of homes were sold at or above the list price, up from 36% one year ago, according to the survey.

The tight supply is making affordability a growing problem, real estate professionals report. First-time buyers, in particular, are struggling to save for a downpayment. The median family income is up by 11% compared to January 2012, while the median price of an existing home has risen by 62% over that time.

The report found that homes are still generally affordable, but the gap between actual and qualifying income of first-time homebuyers has narrowed. As of the second quarter of 2016, NAR estimates that the median income of first-time homebuyers is $44,703, only slightly above the qualifying income of $42,720.

While the majority of transactions are being settled on time, Realtors still report that 32% of transactions faced a delay and 6% were terminated from May to July. The top reasons for a delay were due to issues related to obtaining financing (41%); appraisal issues (27%); home inspection or environmental issues (11%); and titling or deed issues (10%).

Source: REALTORS® Confidence Index: July 2016

With rain on horizon, insurers say ‘be prepared’

TALLAHASSEE, Fla. – Aug. 25, 2016 – There's a good chance that a tropical disturbance will become the eighth named storm in the Atlantic this tropical season, according to the Property Casualty Insurers Association of America (PCI). It's urging Floridians to take steps to prepare. Depending on the storm's path, Florida could be directly impacted.

"With peak season storms potentially targeting Florida, PCI encourages property owners to take precautions to protect themselves and their belongings for direct and indirect impacts that (this tropical disturbance) could have on our homes and businesses," says Logan McFaddin, PCI's Florida regional manager. "Should this turn into a tropical storm with heavy rain and flooding, insurers and catastrophe teams will be ready to respond in the event of significant damage."

Flooding from storm surge during hurricanes and tropical storms can be especially dangerous for residents along the coast.

"Flood insurance is not covered by your standard homeowners policy; however, additional coverage can be purchased through the National Flood Insurance Program or your insurance company," says McFaddin. "Florida is unique in that some insurers are offering flood insurance coverage unlike other states, so it's important to contact your agent or company right away. Just be aware that there is typically a 30-day waiting period between the date of purchase and when the actual flood coverage goes into effect," says McFaddin.

PCI recommended storm preparation steps

Review your property insurance policy, especially the "declarations" page, and check whether your policy pays replacement costs, or actual cash value for a covered loss.
Inventory household items, and photograph or videotape them for further documentation. Keep this information and insurance policies in a safe place.
Keep the name, address and claims-reporting telephone number of your insurer and agent in a safe and easily accessible place.
Protect property by covering all windows with plywood or shutters, moving vehicles into the garage when possible, and placing grills and patio furniture indoors.
Keep all receipts for any post-storm repairs so your insurance company can reimburse you.
Check with your insurance adjuster for referrals to professional restoration, cleaning and salvage companies if additional assistance is needed.
Make sure watercraft are stored in a secure area, like a garage or covered boat dock. A typical homeowner's policy will cover property damage in limited instances for small watercraft, and separate boat policies will provide broader, more extensive property and liability protection for larger, faster boat, yachts, jet skis and wave runners.

Fla. population expected to reach 20.7M this year

ORLANDO, Fla. – Aug. 16, 2016 – Cushman & Wakefield released their inaugural Florida Population Report, an examination of population trends and its economic impact in Florida.

The report, compiled by Cushman & Wakefield's Research Team, analyzes population growth, employment levels, home values and retail sales activity in Florida's eight major markets – Fort Lauderdale, Fort Myers, Jacksonville, Lakeland (Polk County), Miami-Dade County, Orlando, Tampa-St. Petersburg and West Palm Beach. It issued a statewide report and individual reports for each of the eight markets.

Key report findings

Florida's population will reach 20.7 million by the end of 2016. In 1910, the state had a population of 1 million people; by 1980 it grew to 10 million. Since then, the population has doubled.
Florida's population grew 1.84 percent in the past year, trailing only North Dakota, Colorado and Nevada as the fastest-growing states. Florida trailed California (39.14 million) and Texas (27.5 million) in overall population.
Florida's population grew by more than 1,000 people per day, a pace that has accelerated over the past year. Jobs are the No. 1 reason people are attracted to the state. The trend is driven, in part, by economic challenges in Puerto Rico. Puerto Rico's population declined 1.7 percent over the past year, with most exiting residents settling initially in Florida.
For the past 38 months, Florida's job-growth percentage has exceeded the national average. In the past 12 months, 244,500 new jobs were added, a 3 percent growth rate. Most new jobs supported the expanding healthcare, logistics and home construction markets. Retail and hospitality also contributed to the state's employment performance.
Current home prices in Florida were down $42,000 compared to fourth quarter 2006 values. Prices have rebounded since bottoming out in 2011, however, rising by an average $83,000 in the span of five years. Tight supply and pent up demand are driving price increases and pace of sales.
Retail sales continued to highlight consumer optimism and a favorable local economic climate. Florida's economy enjoyed elevated consumer confidence despite uncertainty at the national level caused by the upcoming presidential campaign.

"Florida remains a national leader in population growth," says Chris Owen, Florida research manager. "This is driven by excellent employment numbers, lagging home prices and favorable consumer sentiment. We foresee this optimism prevailing in the short term."

Regional and metro area reports

Bubble trouble? Four fundamentals you need to know

By Larry Kendall, chairman of The Group Inc. and author of Ninja Selling

ORLANDO, Fla. – Aug. 4, 2016 – "Are we experiencing a real estate bubble?" This is a question we're being asked more and more by customers, investors, media and even our team members.

Dr. Lawrence Yun, chief economist for the National Association of Realtors® doesn't see a bubble at the present for three reasons:

1.A shortage of supply in both new and resale housing. Bubbles are usually the result of oversupply.

2.Interest rates are lower now than in the bubble years of the mid-2000s resulting in better affordability.

3.There is no sub-prime lending causing people who are unqualified to buy housing and then default.

But real estate markets are local and cyclical. A local market can experience a bubble while the national market is cruising along just fine. Even sub-markets such as condos, apartments, office or retail can experience bubbles within a strong overall real estate market.

Do you know how to forecast the real estate cycle in your market? There are four fundamentals you should be tracking. As a leader, you need to be the first to spot the changes so you can put your team and your customers in a position to exploit the inevitable. Here they are:

1.Employment. Employment is a leading indicator of a real estate market cycle by 12 to 18 months. This is your earliest warning signal of change. Contact your state employment office and get on their mailing list to receive the monthly employment numbers for your county (or go to their website). Watch for a change in employment (either up or down). Compare the number of people employed last month to the same month a year ago. Is the number rising or falling? This is your best crystal ball, giving you a 12- to 18-month head start.

2.Appreciation. Go to the government website www.fhfa.gov and download their quarterly "House Price Index" report. This is a long report (usually 75 pages), so scroll down to the charts that give you "House Price Appreciation by State" and 300 individual metropolitan markets. These charts show the house price appreciation for the last year, the last quarter, the last five years and since 1991. Want to see if a market is speeding up or slowing down? Take the quarterly change in prices for a market and annualize it (multiply times four). Then, compare this number to the annual price change. Some markets are seasonal, so be careful about jumping to conclusions based on just one quarter. Start tracking each quarter and you will spot the trends.

3.Affordability. The three components of affordability are house price, household income and interest rates. Ultimately, home prices and real estate activity are a function of people's ability to pay. Track these components to see if the median household income can afford the median-priced home.

4.Supply and demand ratios. Tracking supply and demand for your various sub-markets will also give you a clue as to whether a sub-market is overheated and a bubble is building. Here are two examples: A six-month supply of homes is considered a balanced market. In our market right now, the price range under $400,000 has a 1.8-month supply (seller's market) while the price range over $700,000 has a 13.3-month supply (buyer's market). We have both a seller's market and a buyer's market at the same time depending on the price range. Here's the second example: Apartments are experiencing a 1 percent vacancy rate and double-digit rent increases, making apartments one of the hottest segments. To get to a balanced market (5 percent vacancy) we need to add about 1,500 apartments in our market. There are currently 1,739 under construction with another 2,165 approved for construction. We see a bubble in apartments a year from now and are warning our investors.

Real estate is a cyclical industry. Knowing where you are in the market cycle is a critical skill. Track the four fundamentals, and you will keep your customers and your team out of bubble trouble.

Fla.’s housing market: Rising median prices in June

ORLANDO, Fla. – July 21, 2016 – Florida's housing market reported higher median prices and fewer days to a contract in June, according to the latest housing data released by Florida Realtors®. Closed sales of single-family homes statewide totaled 27,086 last month – slightly higher (0.4%) than the June 2015 level of 26,973 closed sales.

"Florida's housing market is experiencing tight supply and pent-up demand," said 2016 Florida Realtors®President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. "That's affecting the pace of sales and putting pressure on statewide median prices. Florida's economic growth, rising jobs outlook and acclaimed quality of life continue to draw new residents eager to call the Sunshine State home."

Home sellers continued to get more of their original asking price at the closing table in June: Sellers of existing single-family homes received 96.3 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.6 percent (median percentage).

The statewide median sales price for single-family existing homes last month was $225,000, up 10.8 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 June was $164,000, up 8.6 percent over the year-ago figure.

In June, statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year for the 55th month in a row, Veissi noted. The median is the midpoint; half the homes sold for more, half for less.

Accordingto the National Association of Realtors®(NAR), thenational median sales price for existing single-family homes in May 2016 was $241,000, up 4.6 percent from the previous year thenational median existing condo price was $229,600.In California, the statewide median sales price for single-family existing homes in May was$518,760; in Massachusetts, it was $353,000; in Maryland, it was $282,257; and in New York, it was $212,500.

Looking at Florida's townhouse-condo market, statewide closed sales totaled 10,506 last month, down 2.6 percent compared to June 2015. Closed sales data reflected fewer short sales and cash-only sales in June: Short sales for townhouse-condo properties declined 43.2 percent while short sales for single-family homes dropped 37.2 percent. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

"Much of 2016's slowdown in sales growth is due to the dwindling inventory of distressed properties throughout Florida," said Florida Realtors®Chief Economist Brad O'Connor. "In June of last year, about 20 percent of sales across all property types were of the distressed variety. This June, by contrast, only 10 percent of sales were distressed. These declines are not due a lack of demand, but rather, a clear lack of supply. Florida's distressed properties continue to slowly but surely work their way through the pipeline.

"If distressed properties are taken out of the equation, sales growth among non-distressed properties – the traditional market – remains quite strong. Non-distressed single-family home sales were up 13 percent year-over-year in June, while non-distressed sales of townhouses and condos rose by 7.6 percent."

Inventory was at a 4.3-months' supply in June for single-family homes and at a 6-months' supply for townhouse-condo properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.57 percent in June 2016, a significant drop from the 3.98 percent average recorded during the same month a year earlier.

Florida Realtors Media Centerand look under Latest Releases, or download the June data report PDFs under Market Data.Realtors also have access to local market stats (password protected) on Florida Realtors' website.

Fla.’s foreclosure rate dropping, state now No. 4

IRVINE, Calif. – July 14, 2016 – While Florida continues to have a higher number of foreclosures, the total number continues to drop, and the state's U.S. ranking is in decline as it moves from its often No. 1 spot down to No. 4 in RealtyTrac's 2016 U.S. Foreclosure Market Report.

New Jersey now tops RealtyTrac's foreclosure-rate list (0.98 percent of housing units with a foreclosure filing) followed by Maryland (0.90 percent) and Delaware (0.78 percent). In fourth place, Florida (0.70 percent) still outranks its long-time competitor for the top spot, Nevada (0.68 percent).

The top 10 list of foreclosure-rate states for the first six months of 2016 is rounded out by Illinois (0.61 percent), Ohio (0.54 percent), South Carolina (0.54 percent), Connecticut (0.48 percent) and Indiana (0.47 percent).

In a look at foreclosure rates by metro area, Florida has three cities in the top 10: Lakeland-Winter Haven was No. 4 (0.91 percent), Tampa-St. Petersburg was No. 8 (0.85 percent) and Jacksonville was No. 9 (0.80 percent). The top U.S. foreclosure cities were Trenton, New Jersey (1.31 percent) and Baltimore (0.96 percent).

"South Florida saw a 34 percent drop in foreclosure filings year-over-year," says Mike Pappas, president and CEO at Keyes Company. "With strong employment, low interest rates and with lenders continuing to carefully scrutinize borrowers – foreclosures will soon be at the lowest levels in a decade."

The length of time it takes from first foreclosure notice to final judgment continues to impact the Florida market. In the state with the longest foreclosure timeline, New Jersey, it takes 1,249 days. It's followed by Hawaii (1,236 days), New York (1,058 days), Utah (1,025 days) and Florida (1,012 days).

According to RealtyTrac, investors buy 1 in 4 foreclosed homes: 27 percent of all properties sold at foreclosure auction were purchased by third-party investors. It's the highest share for the first six months of any year since 2000 – the earliest national data is available.

National foreclosure details

The U.S. had a total of 533,813 U.S. properties with foreclosure filings – default notices, scheduled auctions or bank repossessions – in the first six months of 2016, down 20 percent from the previous six months and down 11 percent from the first six months of 2015.

Counter to the national trend, 19 states posted year-over-year increases in foreclosure activity in the first half of 2016. Among the nation's 20 most-populated metro areas, five posted year-over-year increases in foreclosure activity.

"Although there are some local outliers, the downward foreclosure trend continued in the first half of 2016 in most markets nationwide," says Daren Blomquist, senior vice president at RealtyTrac.

"While U.S. foreclosure activity is still above its pre-recession levels, many of the states hit hardest by the housing crisis have now dropped below pre-recession foreclosure activity levels," he adds. "With some exceptions, states with foreclosure activity continuing to run above pre-recession levels tend to be those with protracted foreclosure timelines still working through legacy distress from the last housing bust."

States where Q2 2016 foreclosure activity was still above pre-recession averages: Florida (26 percent above pre-recession levels), New Jersey (215 percent above), Illinois (36 percent above), New York (127 percent above), Indiana (2 percent above), South Carolina (376 percent above), Massachusetts (127 percent above) and Washington (29 percent above).

Few homeowners behind on their mortgage in 1Q 2016

WASHINGTON – July 7, 2016 – Performance of first-lien mortgages improved during the first quarter of 2016 compared with a year earlier, according to the federal Office of the Comptroller of the Currency's (OCC) quarterly report on mortgages.

The OCC Mortgage Metrics Report, First Quarter 2016 found that 94.9 percent of mortgages in the report were current and performing at the end of the quarter – a higher percentage year-to-year. In 2015, it was 94.2 percent.

The report also found that foreclosure activity has declined, suggesting that homeowners are not only current on their mortgages, but fewer are significantly behind. Mortgage servicers initiated 58,921 new foreclosures during the first quarter of 2016 – a 29.1 percent year-to-year decrease.

Since first-lien mortgage performance improved, the need for other loss mitigation actions declined. Servicers implemented 34,481 mortgage modifications in the first quarter of 2016. Of those, 87 percent reduced borrowers' monthly payments.

The first-lien mortgages included in the OCC's quarterly report comprise 38 percent of all residential mortgages outstanding in the United States or about 21.1 million loans. The complete report can be viewed online.

New Fla. laws go into effect today

TALLAHASSEE, Fla. – June 30, 2016 – A number of bills passed by the Florida Legislature and signed by Gov. Scott go into effect today. While the state's new laws impact a wide range of topics, some have a direct connection to real estate-related issues.

Real estate related bills effect July 1

Statewide water policy
SB 552 (Sen. Charlie Dean, R-Inverness) was one of the first bills passed by the Florida Legislature. It's a complex bill that lays the foundation for a comprehensive water management program for the state.

Several aspects of the 134-page bill align with Florida Realtors' view on how to preserve one of Florida's greatest natural assets: (1) protect and restore fresh water springs; (2) give the Department of Environmental Protection (DEP) oversight for scientifically-based water research programs; and (3) allow the DEP to oversee pollution control measures for Lake Okeechobee, the Caloosahatchee Estuary, and the St. Lucie River and Estuary.

Separately, the state budget provides funding for other environmental projects: $159.7 million for Everglades restoration; $56.8 million for northern Everglades and estuaries protection; and $50 million for springs protection projects.

Sinkhole insurance
Property owners in "sinkhole alley" – Hillsborough, Hernando and Pasco counties – where current available coverage only includes catastrophic loss, may now be offered protection against less severe damage.

SB 1274 (Sen. Jack Latvala, R-Clearwater) allows insurance companies to offer a new line of sinkhole insurance that covers more moderate damage, such as sunken floors and cracked walls. Under the bill, policyholders would have to show that they made the repairs; they would not be able to collect insurance money and spend it on other expenses or purchases.

Challenges to property assessments
If a property owner disagrees with the value placed on their property, they may challenge the assessment before their county's Value Adjustment Board (VAB). Currently, only an attorney or "agent" may represent the owner. However, HB 499 (Rep. Bryan Avila, R-Hialeah) expands that list of representatives to include a real estate appraiser or broker.

Faster lease approvals for members of the military
SB 184 (Sen. Aaron Bean, R-Jacksonville), a broad military/veterans affairs bill, took on a House amendment late in the session requiring landlords and condo/homeowners' associations to approve or deny a rental application submitted by active duty service personnel within seven days.

If the application is denied, the prospective tenant must be told why. If the application is not processed within the seven-day period, the landlord and condo/homeowners' association must lease the unit to the service member.

"If you are handling the screenings of tenants for landlords, it's important for you to be aware of the tenant's service member status so you aren't inadvertently violating this new law," says Meredith Caruso, manager of Member Legal Communications for Florida Realtors.

Fla.’s median prices, sales, listings rise in May

ORLANDO, Fla. – June 22, 2016 – Florida's housing market reported higher median prices, more closed sales, increased new listings and fewer days to a contract in May, according to the latest housing data released by Florida Realtors®. Closed sales of single-family homes statewide totaled 25,518 last month, up 4.5 percent over the May 2015 figure.

"Florida's housing market is growing at a more moderate pace," said 2016 Florida Realtors®President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. "New listings for existing single-family homes rose 5.8 percent compared to a year ago, while new listings for townhouse-condo properties rose 4.3 percent. While tight housing supply is having an impact in many areas, still-low mortgage rates, increased jobs and economic growth will continue to boost housing demand."

Meanwhile, sellers continued to get more of their original asking price at the closing table. Sellers of existing single-family homes in May received 96.2 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.6 percent (median percentage).

The statewide median sales price for single-family existing homes last month was $221,050, up 10.5 percent from the previous year, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. Thestatewide median price for townhouse-condo properties in April was $165,000, up 4.4 percent over the year-ago figure.

In May, statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year for the 54th month in a row, Veissi noted. The median is the midpoint; half the homes sold for more, half for less.

Accordingto the National Association of Realtors®(NAR), thenational median sales price for existing single-family homes in April 2016 was $233,700, up 6.2 percent from the previous yearthenational median existing condo price was $223,300.In California, the statewide median sales price for single-family existing homes in April was$509,100; in Massachusetts, it was $350,000; in Maryland, it was $267,041; and in New York, it was $220,000.

Looking at Florida's townhouse-condo market, statewide closed sales totaled 10,455 last month, up slightly (0.1 percent) compared to May 2015. Closed sales data reflected fewer short sales and cash-only sales in May: Short sales for townhouse-condo properties declined 40.4 percent while short sales for single-family homes dropped 37 percent. Closed sales may occur from 30 to 90-plus days after sales contracts are written.

"The renewed level of growth we're seeing for sales of single-family homes statewide this month was largely due to the continued resurgence of local markets throughout North Florida and the I-4 corridor," said Florida Realtors®Chief Economist Brad O'Connor. "Many of these areas began their recoveries from the previous downturn later than most of the markets in the southern part of the state, so they only recently began hitting their stride.

"In addition, these markets are less reliant on international buyers, so they have not been negatively impacted by recent uncertainty in foreign real estate investment activity."

Inventory was at a 4.4-months' supply in May for single-family homes and at a 6.1-months' supply for townhouse-condo properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.60 percent in May 2016, down from the 3.84 percent average recorded during the same month a year earlier.

Florida Realtors Media Centerand look under Latest Releases, or download the May data report Realtors also have access to on Florida Realtors' website.

Downpayment assistance programs keep on giving

NEW ORLEANS – June 9, 2016 — RealtyTrac released a joint report with Down Payment Resource analyzing the impact of downpayment assistance on the cost of buying a home. The savings include not only the money granted toward a downpayment but also the savings over the life of the loan from lower monthly costs.

For the study, RealtyTrac looked at 513 U.S. counties and based savings on a median-priced home in each. It released the report during the National Association of Real Estate Editors 50th Annual Journalism Conference in New Orleans.

Across all 513 counties analyzed, buyers who used available downpayment assistance programs saved an average $17,766 over the life of a 30-year loan compared to buyers who do not use downpayment assistance.

In some Florida cities, the savings is even greater. In Broward County, for example, a downpayment-assistance buyer could save $61,883; in Seminole County $55,538; in Volusia County $50,296; and in Miami-Dade $39,285.

However, in Monroe County, RealtyTrac found that it would actually cost a buyer more to tap into a downpayment assistance program – a loss of $10,652 over the life of the loan.

RealtyTrac created an interactive map to show the potential savings in a number of selected Florida cities, which can be viewed online.

Nationwide, the total breaks down to an average savings of $5,965 on the downpayment for a median-priced home, and an average savings of $11,801 on monthly house payments over the life of the loan.

The report combined public record sales deed data for single-family homes and condos collected by RealtyTrac with average downpayment assistance data by Down Payment Resource and the latest average weekly wage data available by county from the Bureau of Labor Statistics.

"Saving for a downpayment can be difficult for prospective first-time homebuyers given the absence of substantial wage growth in recent years combined with the burden of student loan debt many are struggling under," says Daren Blomquist, senior vice president at RealtyTrac. "Even just a 3 percent downpayment requires 14 percent of annual wages on average across the 513 counties we analyzed, and in 67 counties a 3 percent downpayment requires more than one-fifth of annual wages."

"These programs are now the last frontier in the fight to preserve homeownership affordability," says Rob Chrane, CEO at Down Payment Resource. "Rates are never going to be substantially lower, and home prices continue to trend higher."

1 in 10 home sales flipped in many Fla. metros

IRVINE, Calif. – June 2, 2016 — RealtyTrac's Q1 2016 U.S. Home Flipping Report finds that 6.6 percent of all U.S. single-family home and condo sales in the first quarter of 2016 were flips – a 20 percent increase quarter-to quarter and 3 percent increase year-to-year.

The percent share of flips was still 26 percent below the 9 percent share at the peak of home flipping in the first quarter of 2006 – but was 55 percent above the recent trough in home flipping (4.3 percent in Q3 2014).

For the report, a home flip is a property sold in an arms-length sale for the second time within a 12-month period.

"After faltering in late 2014, home flipping has been gaining steam for the last year and a half thanks to falling interest rates and a dearth of housing inventory for flippers to compete against," says Daren Blomquist, senior vice president at RealtyTrac. "While responsible home flipping is helpful for a housing market, excessive and irresponsible flipping activity can contribute to a home price pressure cooker … and we are starting to see evidence of that pressure cooker environment in a handful of markets.

However, the current rate of home flipping "is not far above its historic norm, and home flippers in most markets appear to be behaving rationally and responsibly," says Blomquist.

In the first quarter, 71 percent of flipped homes were purchased with cash compared to 37 percent at the height of the flipping boom.

"Spending their own money rather than other people's money is keeping flippers conservative," says Blomquist. "On average, they're buying the homes they flip at a 27 percent discount below full market value and selling them at a 6 percent premium above full market value."

Florida metro areas with strong flipping numbers

Home flipping hits new all-time highs in 7 percent of U.S. markets, but in a few Florida metro areas, 1 in 10 home sales involved a flip.

One Florida area – Deltona-Daytona Beach-Ormond Beach – ranked third in RealtyTrac's top five for "highest share of flipping with 11.8 percent of sales a flipped home. Other U.S. cities in the top five include: Memphis, Tennessee (13.3 percent) and Clarksville, Tennessee (12.5 percent) in the top two spots, and Fresno, California (11.3 percent), and Visalia-Porterville, California (11.1 percent) in the last two positions.

Other Florida markets where the share of homes flipped surpassed the national average included Tampa (10.8 percent), Miami (9.5 percent) and Jacksonville (9.4 percent).

"There continues to be good opportunities for cash investors in the South Florida market," says Mike Pappas, CEO and president at the Keyes Company. "One out of 10 transactions in the first quarter were flipped investor deals yielding an average $65,000 gross profit with an average 51 percent gross ROI."

Gross flipping profit

Homes flipped in the first quarter yielded an average gross profit of $58,250 – a more than 10-year high and average 47.8 percent return on the original purchase price. The average gross flipping profit is the difference between the purchase price and the flipped price, and it doesn't include rehab costs and other expenses.

In addition to Flint, Michigan (105.8 percent return on investment), the top metro areas for return on investment (ROI) were in Pennsylvania: East Stroudsburg (212.1 percent), Reading (136.4 percent) and Pittsburgh (126.8 percent). In New Haven, Connecticut, the ROI was 104.8 percent.

One Florida city made RealtyTrac's list for an average gross ROI over 80 percent: Jacksonville with an 81.8 percent return.

NAR: Pending home sales at a 10-year high

WASHINGTON – May 26, 2016 – Pending home sales rose for the third consecutive month in April and reached their highest level in over a decade, according to the National Association of Realtors® (NAR).

All major regions saw gains in contract activity last month except for the Midwest, which saw a meager decline.

The Pending Home Sales Index – a forward-looking indicator based on contract signings for homes that have not yet sold – hiked 5.1 percent higher to 116.3 in April from an upwardly revised 110.7 in March. Year-to-year, it's 4.6 percent above April 2015 (111.2).

After last month's gain, the index has now increased year-over-year for 20 consecutive months. Vast gains in the South and West propelled April's pending sales in April to its highest level since February 2006 (117.4), says Lawrence Yun, NAR chief economist.

"The ability to sign a contract on a home is slightly exceeding expectations this spring, even with the affordability stresses and inventory squeezes affecting buyers in a number of markets," Yun says. "The building momentum from the over 14 million jobs created since 2010 and the prospect of facing higher rents and mortgage rates down the road appear to be bringing more interested buyers into the market."

Mortgage rates have remained below 4 percent in 16 of the past 17 months, but Yun says it remains to be seen how long they will stay this low. Along with rent growth, rising gas prices – and the fading effects of last year's cheap oil on consumer prices – could edge up inflation and push rates higher. For now, Yun foresees mortgage rates continuing to hover around 4 percent in coming months, but inflation could potentially surprise the market and cause rates to increase suddenly.

"Even if rates rise soon, sales have legs for further expansion this summer if housing supply increases enough to give buyers an adequate number of affordable choices during their search," adds. Yun.

Following the housing market's best first quarter of existing-sales since 2007 (5.66 million) and a decent increase (1.7 percent) in April, Yun expects sales this year to climb above earlier estimates and be around 5.41 million – a 3.0 percent boost from 2015. After accelerating to 6.8 percent a year ago, national median existing-home price growth is forecast to slightly moderate to between 4 and 5 percent.

Pending sales in the Northeast climbed 1.2 percent to 98.2 in April, and are now 10.1 percent above a year ago. In the Midwest, the index declined slightly (0.6 percent) to 112.9 in April, but it's still 2.0 percent above April 2015.

Pending home sales in the South jumped 6.8 percent to an index of 133.9 in April – 5.1 percent higher than last April. The index in the West soared 11.4 percent in April to 106.2, and it's now 2.8 percent above a year ago.

Ex-criminals and rentals: Expert offers tips

WASHINGTON – May 18, 2016 – The Department of Housing and Urban Development (HUD) published Fair Housing Act guidance on April 4 that raised concerns for housing providers who use criminal history screening processes to make decisions about sales, rentals, financing and other real estate activity. Since then, real estate professionals have been asking what it means.

Experts at the Realtors® Legislative Meetings & Trade Expo in Washington, D.C., last week offered a number of tips for staying in compliance, especially since nearly a third of Americans –100 million people in all – have a criminal record, with an additional 650,000 released from prison each year.

"The three things we need to do when developing a program are have consistent procedures, uniform standards and an explanation for criminal background check programs," said Caroline Elmendorf, chief compliance officer for Bozzuto Group, at a forum titled, "Criminal Background Checks, Fair Housing Compliance and You." She also added: "HUD has set a very high bar for what explanations we use."

HUD's guidance comes on the heels of a recent Supreme Court ruling that said a party may prove violations of the federal Fair Housing Act by either showing intentional discrimination or that a certain practice has an adverse or "disparate impact" on protected classes.

While persons with criminal records are not a protected class under the Fair Housing Act, HUD's recent guidance maintains that criminal history-based barriers to housing have a statistically disproportionate impact on minority groups. And since minorities are a protected class under the Fair Housing Act, HUD's guidance says that creating arbitrary or blanket criminal-based policies and restrictions could potentially violate the Fair Housing Act.

Although Elmendorf's suggestions should not be considered legal advice, her general tips for real estate professionals, include:

Run a criminal background check last, and only after candidates have passed financial and other screening processes – until credit checks come back clean. However, she admitted that there are timing and logistical issues related to splitting that process.
Consider the nature and severity of the crime, as well as how recently it occurred, when designing criminal screening policies. For example, Elmendorf suggested that companies decide whether to exclude misdemeanors and non-violent felonies, like gambling or tax fraud.
Establish a look-back period that begins at the time of conviction. While the law isn't crystal clear, HUD cited a study supporting a seven-year look-back period, and that state Fair Credit Reporting Act laws also apply a maximum seven years look back.
Allow individuals to present mitigating and extenuating reasons for why they should be considered in light of a conviction. Those may include facts and circumstances surrounding criminal conduct, age at the time of conviction, evidence of good tenant history, employment or rehabilitation.

Elmendorf pointed to criminal background checks that focus on whether or not a potential tenant or homeowner has been arrested, rather than criminally convicted, as an example of policies that might be "tightened" for compliance. She also noted that there might be a benefit to policies that single out violent crimes because a violent past could be tied to resident safety concerns.

NAR has summarized HUD's guidance in a "Do's and Don'ts" guide, with tips that urge real estate professionals to uniformly consider criminal history, regardless of an individual's protected class status, while avoiding policies that exclude anyone based on arrest records alone.

"Part of being a Realtor is committing to the belief that everyone has a right to live wherever they can afford, and that means strong support for the Fair Housing Act and its mission," says NAR President Tom Salomone.