Friday, February 24, 2017

NAR predicts stable commercial market in 2017

NAR predicts stable commercial market in 2017

 
WASHINGTON – Feb. 23, 2017 – Steered ahead by strengthening demand in smaller markets, the commercial real estate sector should remain on stable ground in 2017 and offer decent returns for investors, according to the latest National Association of Realtors® (NAR) quarterly commercial real estate forecast.
National office vacancy rates are forecast to retreat 1.1 percent to 12.1 percent over the coming year as job growth in business and professional services brings increased need for office space. The vacancy rate for industrial space is expected to decline 1.3 percent to 7.1 percent, and retail availability to decrease 0.7 percent to 11.2 percent.
Only the multifamily sector is predicted to have little change to its vacancy rate over the next year as new apartment completions keep openings mostly flat at 6.5 percent.
"Last year was the 11th year in a row of subpar GDP growth, but renewed corporate optimism leading to a focus on investment and a desperately needed boost in residential construction should pave the way for modest expansion this year of around 2.4 percent," says Lawrence Yun, NAR chief economist. "Steady hiring and low local unemployment levels are finally supporting higher wages and increased spending, which in turn bodes well for sustained demand for all commercial property types."
The apartment sector is expected to preserve its status as a top performer this year, simply because ongoing supply and affordability challenges are keeping the nation's low homeownership rate from seeing meaningful improvement. Even with a small uptick in the vacancy rate as new building completions catch up with demand, rents will likely maintain their solid growth in most of the country.
"Especially in the costliest metro areas, higher home prices and mortgage rates are squeezing the budget for many renters looking to buy and inevitably forcing them to sign a lease for at least another year," says Yun.
According to Yun, commercial property prices – especially in Class A assets in larger markets – surpassed pre-crisis levels last year because of aggressive bidding and lower inventory levels. However, with the Federal Reserve expected to raise short-term rates three times in 2017, a minor price correction may be in store this year as cap rates move higher.
"Similar to the biggest ongoing challenges in the residential market, supply and demand imbalances continue to put upward pressure on commercial property prices as investors search for yield in smaller markets," says Yun. "Realtors are increasingly citing inventory shortages as their top concern as the pace of new projects slows in large cities, and middle-tier and smaller markets see a growing appetite for space."
The latest NAR Commercial Real Estate Market Survey found strong underlying demand for commercial properties up to $2.5 million, where most transactions from NAR's commercial members reside. Compared to a year ago, sales volume rose 12.9 percent, prices increased 5.5 percent and the average transaction value equaled $1.1 million.
NAR's December Business Creation Index (BCI) also found a positive trend for smaller commercial businesses. Created to monitor local economic conditions from the perspective of NAR's commercial members, Realtors reported more business openings and fewer closings over the past year in their market.
The possibility of a more tax-friendly business environment combined with the positive benefits of 1031 exchanges could quicken the pace of economic growth and support stronger commercial market fundamentals, Yun says.
The industrial sector – already enjoying increased demand from the soaring popularity of e-commerce – could see a further decline in vacancy rates if increased manufacturing comes to fruition and accelerates the need for more warehouse space.
"The positive direction for commercial real estate this year will be guided by the steadily expanding U.S. economy, which has legs to grow and continues to be one of the top economic performers and safest bets in the world," concludes Yun.
© 2017 Florida Realtors  

Thursday, February 23, 2017

Fla.’s Housing Market: More​ Sales,​ Rising Prices in January

Good morning, I read this article this morning and wanted to pass it along to you. Good Florida real estate news for both Sellers and Buyers. For Sellers, their real estate investment(s) continue to grow in value. For Buyers, interest rates still are very affordable, but projected to rises a couple of times this year.

If you are looking for a beautiful southwest Florida home please give me a ring. I am highly skilled, an expert at locating, negotiating and facilitating Florida real estate property sales. I can and will find the perfect southwest Florida home for you and your family. If you are ready to see some magnificent SWFL homes, lets set a time and date to go preview some of your favorites. 

Enjoy the information below and of course, call or send me any question you may have.

Kind regards,


Terence Trombetti Realtor® 
​​Call or Text (239) 560-1574
​Florida Complete Realty​
​3624 Del Prado Blvd., Suite A,
Cape Coral, Florida 33904
​​
Florida Real Estate Professional Since 2004


​​
Fla.’s Housing Market: More​ Sales,​ Rising Prices in January

 
ORLANDO, Fla. – Feb. 22, 2017 – Florida's housing market reported more closed sales, higher median prices, increased pending sales and more new listings in January, according to the latest housing data released by Florida Realtors®. Sales of single-family homes statewide totaled 16,779 last month, up 5.2 percent from January 2016.
"Florida's housing market continues to show positive momentum," says 2017 Florida Realtors President Maria Wells, broker-owner with Lifestyle Realty Group in Stuart. "While existing inventory remains tight, Realtors across the state are reporting interest from both buyers and sellers – and with interest rates expected to rise over the next few months, now is certainly a good time to take action. On the buyer front, new pending sales for existing single family homes in January increased 3.8 percent year-over-year; pending sales for townhouse-condo units increased 6.5 percent. On the sellers' side, new listings for single-family homes rose 7.6 percent year-over-year, while new townhouse-condo listings ticked up 0.9 percent.
"When market conditions are tight, consumers can get ahead by working with a Realtor who's an expert in the local area," Wells says. "A Realtor will have the knowledge needed to help both buyers and sellers through the complex home buying process."
Home sellers continued to get more of their original asking price at the closing table in January: Sellers of existing single-family homes received 95.6 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.6 percent.
The statewide median sales price for single-family existing homes last month was $220,000, up 10.1 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 January was $161,000, up 6.6 percent over the year-ago figure. January marked the 62nd month in a row that statewide median prices for both sectors rose year-over-year. The median is the midpoint; half the homes sold for more, half for less.
According to the National Association of Realtors (NAR), the
​ ​
national median sales price for existing single-family homes in December 2016 was $233,500, up 3.8 percent from the previous year
​ ​
the national median existing condo price was $221,600.In California, the statewide median sales price for single-family existing homes in December was $509,060; in Massachusetts, it was $355,000; in Maryland, it was $269,319; and in New York, it was $240,000.

Looking at Florida's townhouse-condo market, statewide closed sales totaled 7,209 last month, up 6.2 percent compared to January 2016. Closed sales data reflected fewer short sales and cash-only sales last month: Short sales for townhouse-condo properties declined 47.7 percent while short sales for single-family homes dropped 36.3 percent. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
"Florida's markets for existing homes are off to a good start in 2017," says Florida Realtors Chief Economist Dr. Brad O'Connor. "Throughout much of this housing cycle, growth in single-family home sales has outpaced that of condos and townhouses, but in January – for the first time since November 2015 – this was not the case, though one month's worth of data alone doesn't indicate a long-term trend.
Also, new listings of single-family homes were up in January compared to last year, including in the $150,000 to $250,000 range where inventory is sorely needed throughout the state. That said, inventory was still down overall in this range, as this segment of the market remains in high demand throughout the state."
Inventory dipped to a 4.2-months' supply in January for single-family homes and was at a 6.4-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 4.15 percent in January 2016, up significantly from the 3.87 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.
© 2017 Florida Realtors®

Real Estate Data for Cape Coral

Cape Coral market trends indicate an increase of $10,150 (5%) in median home sales over the past year. The average price per square foot for this same period rose to $133, up from $127.
Median Sales Price - $200,000​​
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Real Estate Data for Fort Myers

Fort Myers market trends indicate an increase of $13,490 (7%) in median home sales over the past year. The average price per square foot for this same period rose to $134, up from $125.
Median Sales Price - $200,000
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Real Estate Data for Naples

Naples market trends indicate a decrease of $7,000 (-2%) in median home sales over the past year. The average price per square foot for this same period fell to $213, down from $214.
Median Sales Price - $300,000
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Wednesday, February 22, 2017

NAHB: Home affordability favorable but at eight-year low

NAHB: Home affordability favorable but at eight-year low

 
WASHINGTON – Feb. 21, 2017 – The U.S. has a shortage of buildable lots and skilled labor, excessive regulations, rising mortgage interest rates and high home price appreciation – and those negative factors pushed housing affordability to its lowest point in eight years (3Q 2008) in the fourth quarter of 2016, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI).
"Though builders remain confident that housing markets across the nation will continue to show gradual improvement in the year ahead, they remain concerned that regulatory constraints, and lot and labor supply issues are preventing a more robust recovery," says NAHB Chairman Granger MacDonald. "The rising costs of construction as it relates to land and labor are putting upward pressure on home prices."
However, NAHB says a new home is still affordable for many buyers.
"Affordability remains positive nationwide even as demand is outstripping supply in many markets," says NAHB Chief Economist Robert Dietz. "Though mortgage rates are rising, incomes should rise faster as well, helping to keep home prices affordable."
In all, 59.9 percent of new and existing homes sold between the beginning of October and end of December were affordable to families earning the U.S. median income of $65,700. This is down from the 61.4 percent of homes sold that were affordable to median-income earners in the third quarter.
The national median home price increased from $247,000 in the third quarter to $250,000 in the fourth quarter. Over the same period, average mortgage rates edged higher from 3.76 percent to 3.84 percent.
NAHB identified Youngstown-Warren-Boardman, Ohio-Pa., as the nation's most affordable major housing market, where 90.4 percent of all new and existing homes sold in the fourth quarter were affordable to families earning the area's median income of $53,900. Fairbanks, Alaska, was again rated the nation's most affordable smaller market, with 95.1 percent of homes affordable to families earning the median income of $93,800.
For the 17th consecutive quarter, San Francisco-Redwood City-South San Francisco, Calif., was the nation's least affordable major housing market – only 7.8 percent of homes sold in the fourth quarter were affordable to families earning the area's median income of $104,700. Other major metros at the bottom of the affordability chart were also in California.
Florida cities ranked between the 46th most affordable city in the U.S. (Homosassa Springs) to the 201st most affordable city (Miami-Miami Beach-Kendall). Fourteen other U.S. cities are still less affordable than Miami.
Florida affordability by rank out of 215 U.S. cities
46. Homosassa Springs: 82.5% of median income families can afford a median priced home
55. Ocala: 81.4%
64. Tallahassee: 80%
72. Gainesville: 79.2%
77. Lakeland-Winter Haven: 78.7%
85. Pensacola-Ferry Pass-Brent: 78%
110. Crestview-Fort Walton Beach-Destin: 71.4%
112. Palm Bay-Melbourne-Titusville: 70.8%
121. Tampa-St. Petersburg-Clearwater: 69.1%
122. Deltona-Daytona Beach-Ormond Beach: 79.8%
124. Port St. Lucie: 68%
125. Punt Gorda: 67.6%
138. Orlando-Kissimmee-Sanford: 63.1%
139. Sebastian-Vero Beach: 62.6%
144. The Villages: 61.6%
149. North Port-Sarasota-Bradenton: 60.4%
150. Cape Coral-Fort Myers: 60.2%
159. Fort Lauderdale-Pompano Beach-Deerfield Beach: 58.2%
160. West Palm Beach-Boca Raton-Delray Beach: 58%
181. Naples-Immokalee-Marco Island: 47.3%
182. Jacksonville: 47%
201. Miami-Miami Beach-Kendall: 33.2%
© 2017 Florida Realtors