Realtor.com Names Top 10 Cities for Millennials

SANTA CLARA, Calif. – March 23, 2017 – Realtor.com®, a leading online real estate destination operated by News Corp subsidiary Move, Inc., has announced its top cities for millennials. At the top of the list: Salt Lake City, followed by Miami and Orlando, Fla., as No. 2 and No. 3, respectively.

Rounding out the rest of the top 10, in rank order are Seattle, Houston, Los Angeles, Buffalo, Albany, San Francisco and San Jose, Calif.

"High job growth in markets such as Orlando, Seattle and Miami, and the power of affordability in places like Albany and Buffalo are making these markets magnets for millennials." said Javier Vivas, manager of economic research for realtor.com. "But what really stands out is that all these markets already have large numbers of millennials, which translates into strong populations of millennial homebuyers." 

The average share of the 25-34 year old population in the U.S. is 13 percent, but in these top markets, the average share is 14 percent. Salt Lake City, No. 1 on the list, happens to also have the highest share of milllennials, comprising 15.8 percent of its total population. Seattle is close behind with a millennial population at 15.2 percent, Los Angeles and San Francisco tie for third with 15.0 percent.

Economic growth and relative affordability make these markets really attractive to first-time homebuyers. Salt Lake City has the lowest unemployment rate of all the markets on the list at 2.9 percent, which is well below the national unemployment rate of 4.7 percent. The job market is also a factor in San Francisco and San Jose, with the unemployment rate at 3.7 percent. When it comes to affordability, Buffalo is No. 1 with the most affordable home prices relative to salary, at 22.7 percent. It's followed by Albany where people only use 27.3 percent of their income on a home and Salt Lake City where buyers use 30 percent.

Realtor.com analyzed the 60 largest markets in the U.S. and compared the share of millennial page views in each area to the national average. Markets were ranked based on their comparison to the national average. Page view data included in this analysis covers the period from August 2016 to February 2017.

Realtor.com's top cities for millennials

1. Salt Lake City

The draw: The excitement of an urban city with the relaxed vibes of a mountain town. Large tech companies such as Adobe are attracting the millennial generation to this area by offering innovative workspaces, large salaries and an overall high quality of life.

Millennial hotspot:  Sugar House, located southeast of downtown Salt Lake City, offers hip bars and trendy restaurants.

The stats: Millennials make up 15.8 percent of the population. Homeowners spend 30 percent of their income on their home and the unemployment rate is 2.9 percent

2. Miami

The draw: An international mecca for tourism and entrepreneurship.

Millennial hotspots: Wynwood, located just north of downtown, offers a strong art community.

South Beach is a strong draw for business and fashion oriented millennials looking to make it big in their careers.

The stats: The millennial population makes up 13.1 percent of the population. Affordability is tough, requiring the average buyer to spend 49 percent of their income on a home. Its unemployment rate is 5.1 percent, slightly above the national average.

3. Orlando

The draw: Downtown Orlando is becoming a hot area and offers easy access to public transportation, shopping and dining, as well as a proximity to many jobs.

Millennial hotspots: Thornton Park, located just east of downtown has also become popular among millennials who are looking to live in a unique historic neighborhood with cobbled streets and lined with bungalows.

The stats: Millennials account for 14.6 percent of the total population in Orlando. Homes are affordable here and only require 34 percent of income. The unemployment rate is below the national average at 4.4 percent.

4. Seattle

The draw: With big company names such as Starbucks, Amazon, Filson, K2 and REI, it's not hard to imagine why so many millennials want to live and work in Seattle.

Millennial hotspots: Capitol Hill and Belltown are popular neighborhoods for creative millennials who want access to boutique shopping, craft breweries and unique dining experiences.

The stats: Seattle has the second largest millennial population, at 15.2 percent, of all the towns on the list. It offers affordability of 35.6 percent and an unemployment rate of 4.2 percent.

5. Houston

The draw: A booming job market is drawing many young millennials looking to jump-start their careers. Millennial hotspots: The Heights, Oak Forest, and Timbergrove attract millennials with their close proximity to downtown, boutique shops, trendy restaurants and craft breweries.

The stats: Houston's population is made up of 14.5 percent millennials. While people spend 36.1 percent of their income on homes, the unemployment rate in Houston is slightly higher than the national average at 5.4 percent.

6. Los Angeles

The draw: Companies such as Snap Inc. and Airbnb draw tech driven millennials to what is now being referred to as "Silicon Beach," while actors, comedians and music artists are still drawn to the area for a chance at fame.

Millennial hotspots: Silver Lake is a hotbed for millennials looking for a young and creative community. The stats: Millennials make up 15.0 percent of the population. While the unemployment rate is in line with the national average at 4.7 percent, affordability is difficult in Los Angeles with people spending 64.1 percent of their income on a home.

7. Buffalo

The draw: Money is flowing into the area as a tech scene begins to expand from incubation competitions such as 43 North, which awards $5 million in prizes yearly.

Millennial hotspots: With a revitalized waterfront, downtown Buffalo and North Buffalo are becoming hot real estate for trendy millennials who are looking for easy access to shopping and dining as well as a family-oriented community.

The stats: For those millennials looking to spend more time outdoors, Buffalo has a millennial population of 13.4 and an unemployment rate of 5.6 percent. It is the most affordable market on the list, where people only spend 22.7 percent of their salary on their home.

8. Albany

The draw: Albany is slowly becoming what is referred to as the "Silicon Valley of the East Coast," with companies such as GE putting up headquarters and employing over 7,000 people. The large tech scene popping up is attracting many young millennials who want to be in tech, but don't want to pay for real Silicon Valley housing prices.

Millennial hotspot: Specialty cocktail bars, Biergartens, and craft coffee houses make downtown Albany the place to be for millennials.

The stats: Millennials make up 12.7 percent of Albany's population. It offers both affordable housing at 27.3 percent of income and a low unemployment rate at 4.5 percent.

9. San Francisco

The draw: San Francisco's tech fueled job market is pumping millennials into the area left and right, however, sky-high housing prices are pushing many of the newcomers to the outer neighborhoods and forcing them to rent.

Millennial hotspots: North Beach and the Mission have become popular for the young tech generation that have established themselves and earned a large paycheck, while the Sunset District and Daly City offer more affordable housing options – relative to the rest of the city.

The stats: In San Francisco, millennials make up 15 percent of the total population. While the unemployment rate is really low at 3.7 percent, affordability is a concern with people spending 56.2 percent of their income on a home.

10. San Jose

The draw: Opportunity to work in some of the most innovative companies in the U.S. as well as the infamous Silicon Valley paycheck, are major drivers drawing millennials to the area.

Millennial hotspots: Centrally located downtown San Jose is attracting many millennials because of its public transportation as well as trendy shops and unique dining experiences.

The stats: Millennials make up 14.2 percent of the total population in San Jose. Similar to San Francisco, the unemployment rate is low at 3.7 percent but homes cost 53 percent of income.

Source: Realtor.com

© 2017 Florida Realtors

Top Buyer/Seller Regret? Not Prepping Soon Enough

Top buyer/seller regret? Not prepping soon enough

SEATTLE – March 20, 2017 – The spring home-buying season could be one of the most competitive in recent history as listing inventory remains tight and mortgage rates appears to be going up.

In a survey of 13,000 recent home buyers and sellers, the top regret for both focused on preparation: They didn't start the process soon enough, according to the 2016 Zillow Group Report on Consumer Housing Trends.

U.S. home values across the nation are up 7.2 percent over the past year, and there are three percent fewer homes to choose from than a year ago, according to the January Zillow® Real Estate Market Reports.

"Understanding whether you are in a buyer's or a seller's environment will help you manage your expectations and will give you insight into what you're going to need to bring to the table in order to close the deal," says Jeremy Wacksman with Zillow.

Being prepared: Buyers

• Keep options open. 52 percent of buyers said they also considered renting, and 37 percent of first-time buyers seriously considered continuing to rent. Savvy shoppers should have a Plan B in place – hoping to buy if it works out, perhaps, but willing to sign a lease if they don't make a deal by the time they must move.
• Be realistic about your budget. Set it and stick to it. First-time home buyers are more likely to exceed their budget than repeat buyers (39 percent vs 26 percent). Before meeting with a lender, buyers should study their personal finances and spending preferences, and calculate a monthly payment range they feel comfortable with.
• Get financing squared away early. Meet a few lenders four to six months before planning to buy to move quickly if a dream home comes along: 77 percent getting pre-approved by a lender before finding a home.
• Find an agent with a winning track record. Only 46 percent of buyers got the first home on which they made an offer, demonstrating that competition is now part of the process.
• Communication is key. Make sure your preferred method and frequency of communication matches your agent: 33 percent of buyers preferred phone calls, 21 percent preferred emails and 15 percent preferred texts.

Being prepared: Sellers

• Start early, be strategic. Sellers consider putting their home on the market for five months before they list it, but the top seller regret is that they'd spent more time prepping for the sale. Many cities have a magic window in the spring when homes have a higher likelihood of selling quickly for more money.
• Work with an agent from the start. 90 percent of sellers who sold quickly and for more than list price worked with an agent; 58 percent began working with an agent at the very beginning of their selling journey.
• Pay attention to online curb appeal. Most buyers begin their search online. Sellers who sold their home for more than list price made imagery and home information available online: 48 percent had professional photos taken of the home, 30 percent shot video footage and 21 percent shot drone footage.
• Home improvements can be a worthwhile. Many sellers tackled a home improvement before listing their home
• Don't be afraid to try again. In many markets, nearly half of listing views occur in the first week a home is on the market – 26 percent of owners who sold above list price took their home off the market for a while to adjust the sales price.

© 2017 Florida Realtors

Single Family Housing Starts Hit Highest Level in 10 Years

Single-family housing starts hit highest level in 10 years

WASHINGTON – March 16, 2017 – Nationwide housing starts rose 3 percent in February from an upwardly revised January reading, according to new data from the U.S. Department of Housing and Urban Development (HUD) and the Commerce Department.

Single-family production increased 6.5 percent to 872,000 units – its highest reading in nearly a decade. Meanwhile, the multifamily component fell 3.7 percent to 416,000 units.

"This month's gain in single-family starts is consistent with rising builder confidence in the housing market," says Granger MacDonald, chairman of the National Association of Home Builders (NAHB). "We should see single-family production continue to grow throughout the year, tempered somewhat by supply-side constraints such as access to lots and labor."

"The growth in the single-family arena is very encouraging, but may be partly attributable to unusually warm weather conditions throughout most of the country," said NAHB Chief Economist Robert Dietz. "The modest drop in multifamily starts is in line with our forecast, which calls for this sector to continue to stabilize in 2017."

Regionally in February, combined single- and multifamily housing production rose 35.7 percent in the West. Starts fell by 3.8 percent in the South, 4.6 in the Midwest and 9.8 percent in the Northeast.

Future starts
A drop in multifamily permits pulled overall permit issuance down 6.2 percent in February. Multifamily permits fell 21.6 percent to 381,000 units – but single-family permits rose 3.1 percent to 832,000 units – its highest level since September 2007.

Regionally, overall permits rose 25.4 percent in the Midwest. Permits fell 10 percent in the West, 10.4 percent in the South and 22.3 percent in the Northeast.

© 2017 Florida Realtors

Is an Airbnb Rental Uptick Causing a Listing Shortage?

Is an Airbnb rental uptick causing a listing shortage?

WASHINGTON, D.C. – March 10, 2017 – The American Hotel & Lodging Association (AHLA) released a report that examines the rise of commercial activity taking place on Airbnb nationwide. While the hotel industry sees Airbnb type rentals as competition, the study identified some recent trends.

The study, Hosts with Multiple Units – A Key Driver of Airbnb Growth, finds that Airbnb's business in Miami is moving further away from true home sharing: 89 percent of Airbnb's revenue in Miami comes from whole-unit rentals (ones where the owner isn't present during the time of the rental). The lodging association calls these "illegal hotels."

The study was conducted by CBRE Hotels' Americas Research, which is funded by the American Hotel & Lodging Education Foundation. It reviewed Airbnb operations from October 2014 to September 2016 in 13 of the nation's largest markets: Austin, Boston, Chicago, Los Angeles, Miami, Nashville, New Orleans, New York, Oahu, Portland, San Francisco, Seattle and Washington, D.C.

Study claims

• The markets with the highest share of total revenue derived from multi-unit hosts are Miami (57.9%), Oahu (53.5%) and New Orleans (42.3%).
• 89% of Miami Airbnb revenue comes from entire-home rentals.
• Revenue generated by multi-unit, entire-home hosts in Miami increased by 105% over the time study and now totals more than $110 million.

The hotel industry has taken a strong stand against Airbnb, which competes in many markets for tourist dollars, and it claims that Airbnb's expansion is one reason more affordable homes don't make it into the hands of resident owners. It's also a reason, they claim, that rents continue to go up.

"This report confirms a devastating national trend that is exacerbating the affordable housing crisis in cities across the country," says Peter Cohen, Co-director of the Council of Community Housing Organizations. "Affordable housing advocates from coast to coast agree: Airbnb in particular and the short-term-rental industry in general is facilitating a housing crisis by incentivizing property investors to convert homes and apartments into illegal hotels, thus decreasing the available housing stock and driving rent prices up.

The full report, Hosts with Multiple Units – A Key Driver of Airbnb Growth, is available for download on the AHLA website.

© 2017 Florida Realtors

Insurance Claim Satisfaction Rises - But Not so Much in Florida

Insurance claim satisfaction rises – but not so much in Fla.

NEW YORK – March 10, 2017 – Overall customer satisfaction among homeowners filing property insurance claims has reached a new all-time high, according to the J.D. Power 2017 U.S. Property Claims Satisfaction Study. The surge corresponds with a 10-year high in catastrophic events, which usually heralds a decline in satisfaction scores.

Though customer satisfaction improvements are industry-wide, they vary considerably by region and claim type, and a handful of states in the Central and Eastern regions – most notably Texas, Florida and Massachusetts, which had more volatile weather – posted flat to declining customer satisfaction scores.

The West region posted the largest improvement nationwide amid a relatively calm year for claim activity.

Outside of those specific examples, however, weather-related claims drove the highest overall improvement in customer satisfaction, with high wind- and hail-related claims leading the way. Conversely, water-related claims, which tend to take longer to resolve and disrupt the daily lives of homeowners, are linked to lower overall satisfaction scores.

The study measures satisfaction with the property claims experience. Satisfaction is calculated on a 1,000-point scale. It surveys customers who filed a damage claim and examines five factors (listed in order of importance):

• settlement
• first notice of loss
• estimation process
• service interaction
• repair process

The overall Customer Satisfaction Index increased 13 points year over year to a score of 859 in 2017 – a new all-time high for the study. The largest single driver of the improvement is the settlement factor, which encompasses the fairness of the settlement amount, followed by estimation process and service interaction.

"Despite the overall improvement, problem areas are evident, most notably in water-related and other complex claims that take a long time to settle and that cause significant lifestyle disruption," says Greg Hoeg, vice president of U.S. insurance operations at J.D. Power. "Insurers that manage to get the settlement process and customer interaction equation right in these types of disruptive and often catastrophic scenarios are those that raise the bar for the industry."

© 2017 Florida Realtors

2016 Home Flipping Hits 10 Year High

2016 home flipping hits 10-year high

IRVINE, Calif. – March 9, 2017 – Home flipping last year was 3.1 percent higher than it was in 2015, according to ATTOM Data Solutions' 2016 Year-End U.S. Home Flipping Report. The report finds that 193,009 single family homes and condos were flipped – resold in an arms-length transfer for the second time within a 12-month period – in 2016.

In 2006 with a recession on the horizon, 276,067 single family homes and condos were flipped. In 2005, 338,207 single family homes and condos were flipped – 8.2 percent of all sales. The study included 950 U.S. counties that cover 80 percent of the population.

In addition, the number of buyers flipping homes has increased. In 2016, 126,256 entities – a number that includes both individuals and institutions – flipped homes in 2016. That's less than a 1 percent increase of 2015 but the highest number since 2007.

Meanwhile, the share of flipped homes purchased by the flipper with financing increased to an eight-year high of 31.5 percent in 2016. The median age of homes flipped increased to 37 years – a new high going back to 2000, as far back as data is available – and the median square footage of flips decreased to 1,422 – a new record low going back to 2000.

"The combination of more home flips and a greater share of financing for flip purchases resulted in a 19 percent jump in the estimated dollar volume of financing for home flip purchases, up to $12.2 billion for the flips completed in 2016 – a nine-year high," says Daren Blomquist, senior vice president at ATTOM Data Solutions.

Blomquist says that more home flippers are now willing to "move to secondary and tertiary housing markets and neighborhoods with older, smaller properties that are available at a deeper discount," Blomquist says, a change that also led to "a higher share of the flipped homes sold to FHA buyers," a share that hit a four-year high of 19.6 percent in 2016."

2016 home flipping profits: New record highHomes flipped in 2016 sold for a median price of $189,900, a gross flipping profit of $62,624 above the median purchase price of $127,276, with a gross flipping return on investment (ROI) of 49.2 percent. Both the gross flipping dollar amount and ROI were the highest going back to 2000, the earliest year flipping data is available.

While no Florida metro areas hit ATTOM's top 10 for ROI, a one Florida city is noted for having a population of at least 1 million and a flipping ROI over 75 percent: Jacksonville (75.8 percent.

Home flipping rates

Tennessee, California and Florida metro areas logged the higher home flipping rates. Among 117 metropolitan statistical areas with at least 250 home flips in 2016, those with the highest home flipping rate as a percentage of all home sales were Memphis, Tennessee (11.7 percent); Clarksville, Tennessee (10.1 percent); Visalia-Porterville, California (10.1 percent); Tampa-St. Petersburg, Florida (9.9 percent); and Deltona-Daytona Beach-Ormond Beach, Florida (9.9 percent).

Along with Memphis and Tampa-St. Petersburg, other metro areas with a population of at least 1 million and a 2016 home flipping rate of at least 7 percent were Las Vegas (9.2 percent); Miami (8.8 percent); Orlando (8.3 percent); Phoenix (8.0 percent); New Orleans (7.9 percent); Jacksonville, Florida (7.7 percent); Virginia Beach (7.6 percent); Baltimore (7.4 percent); Birmingham (7.4 percent); St. Louis (7.1 percent); and Nashville (7.1 percent).

© 2017 Florida Realtors

NATIONAL ASSOCIATION OF REALTORS: Gen X Recovering, Millennials Still Live with Mom

NAR: Gen X recovering, millennials still live with mom

WASHINGTON – March 7, 2017 – Overall nationwide, an improving economy, multiple years of strong job growth and a notable increase in home values fueled a greater share of purchases from Generation X households over the past year, according to the National Association of Realtors® (NAR) 2017 Home Buyer and Seller Generational Trends study.

The survey also found that:

• A growing number of millennials and younger boomer buyers have children who still live at home
• Student debt is common among Gen X and boomer households
• More millennials are buying outside the city
• Younger generations are more likely to use a real estate agent

The challenges faced by millennials has been widely reported, but Lawrence Yun, NAR chief economist, says little has been said about the many Generation X households who bought a first home and started a family only to be rattled by job losses, falling home values and overall economic uncertainty.

Recent Gen X buyers delayed homeownership longer than millennials because of debt. They're the most likely generation to have sold a distressed property, and the generation most likely to be locked into their current home because it was worth less than their mortgage. Gen X buyers also had the most student loan debt ($30,000).

"Gen X sellers' median tenure in their previous home was 10 years, which puts many of them selling a property they bought right around the time home values were on the precipice of declining," says Yun. "Fortunately, the much stronger job market and 41 percent cumulative rise in home prices since 2011 have helped a growing number build enough equity to finally sell and trade up to a larger home. More Gen X sellers are expected this year and are definitely needed to ease the inventory shortages in much of the country."

The uptick in purchases from Gen X buyers this year (28 percent) was the highest since 2014 and up from 26 percent in 2016. Millennials were the largest group of recent buyers for the fourth consecutive year (34 percent), but their overall share was down slightly from a year ago (35 percent). Baby boomers were 30 percent of buyers, and the Silent Generation made up 8 percent.

Younger boomer buyers increasingly consider adult children

This year's survey also suggests that the soaring cost of rent in many areas is likely convincing middle-aged parents to buy a home with their young adult children in mind. Younger boomers were the most likely to purchase a multi-generational home (20 percent; 16 percent in 2016), and the top reason for doing so was that children over 18 years old either moved back home or never left (30 percent; 27 percent in 2016).

"The job market is very healthy for young adults with a college education, but repaying student debt and dealing with ever-increasing rents on an entry-level salary are forcing many to either shack-up with several roommates or move back home," says Yun. "This growing trend of delayed household formation is one of the main contributors to the nation's low homeownership rate."

Student debt not just a millennial problem

Debt, particularly from student loans, appears to be a portion of the household budget of buyers in every generation. While millennials were the most likely to have student debt (46 percent), their typical balance ($25,000) was lower than Gen X buyers ($30,000). A combined 16 percent of younger and older boomer buyers also had student debt, with a median balance of over $10,000 for each group.

Among the share of buyers who said saving for a downpayment was the most difficult task, millennials were most likely to cite student loans (55 percent), followed by Gen X (29 percent) and younger boomers (9 percent).

"Repaying student debt also appears to be slowing some current homeowners who went to graduate school and now can no longer afford to sell and trade up because of their loans," says Yun. "Nearly a third of homeowners in a NAR survey released last year said student debt is preventing them from selling a home to buy a new one."

More millennials moving to suburbs … with kids

Similar to previous years, roughly two-thirds of millennial buyers are married. One aspect of their household that has changed is the number of children in them. In this year's survey, 49 percent of millennial buyers had at least one child, which is up from 45 percent last year and 43 percent two years ago.

With more kids in tow, the need for more space at an affordable price increasingly pushes millennial buyers outside the city. Only 15 percent of millennial buyers bought in an urban area, which is down from 17 percent last year and 21 percent two years ago.

"Millennial buyers, at 85 percent, were the most likely generation to view their home purchase as a good financial investment," says Yun. "These strong feelings bode well for even greater demand in the future as more millennials settle down and begin raising families. A significant boost in new and existing inventory will go a long way to ensuring the opportunity is there for more of them to reach the market."

Millennial buyers and sellers overwhelmingly go online and use a real estate agent

Regardless of age, buyers and sellers continue to see real estate agents as an integral part of a real estate transaction. In this year's survey, nearly 90 percent of respondents said they worked with a real estate agent to buy or sell a home. This kept for-sale-by-owner transactions down at its lowest share ever (8 percent).

Online and digital technology use during the home search has increased in recent years. Although millennials and Gen X buyers were most likely to go online during, they were also the most likely to buy their home using a real estate agent (92 percent and 88 percent, respectively). On the seller side, millennials were the most likely to use an agent (90 percent), followed closely by Gen X and younger boomer sellers (each at 89 percent).

"Online and mobile technology is increasingly giving consumers a glut of real estate data at their disposal," says NAR President William E. Brown. "However, at the end of the day, buyers and sellers of all ages – but especially younger and often DIY-minded consumers – seek and value a Realtors' ability to dissect this information and use their expertise and market insights to coach buyers and sellers through the complexities of a real estate transaction."

© 2017 Florida Realtors

Are you looking to purchase or sell a Home in Flagler County?  Give me a call.

Robert "Bobby" Keith, Realtor® Realty Exchange

386-793-1426

Study: Florida Property Taxes Average Compared to Other States

Study: Fla. property taxes average compared to other states

WASHINGTON – March 1, 2017 – The average American household spends $2,149 on real estate property taxes each year, plus another $402 for residents of the 27 states with vehicle property taxes. With such high costs, it's no surprise that about $11.8 billion in property taxes go unpaid each year, according to the National Tax Lien Association.

To determine who pays the most relative to their state, WalletHub, a personal-finance website created a 2017 Property Taxes by State report.

Overall, Florida ranks near the middle for property taxes – No. 27 out of 50 states – even though it's one of only a handful of states without a personal income tax. In addition, WalletHub looked at vehicle property taxes paid each year, and Florida is one of the 24 states that don't charge any vehicle tax.

• Real-estate property tax rank: No. 27
• Vehicle property tax rank: No. 1
• Real estate tax on median state home value: $1,686
• Real estate tax on median U.S. home value: $1,894
• Vehicle property tax on best-selling car: $0.00

© 2017 Florida Realtors

Are you looking to purchase or sell a Home in Flagler County?  Give me a call.

Robert "Bobby" Keith, Realtor® Realty Exchange

386-793-1426

Florida Consumer Confidence Down From January's Record High

Fla. consumer confidence down from Jan.’s record high

GAINESVILLE, Fla. – Feb. 28, 2017 – After three months of positive gains, consumer sentiment among Floridians fell 3.3 points in February to 94.0, according to the latest University of Florida (UF) consumer survey.

The pattern in Florida is similar to consumer sentiment at the national level as measured by the University of Michigan. It dropped 2.2 points in February to 96.3 from January's record 98.5.

"While readings about current economic conditions increased slightly, expectations for the future decreased sharply among Floridians in February," says Hector H. Sandoval, director of the Economic Analysis Program at UF's Bureau of Economic and Business Research.

Current conditions
Floridians' perceptions of their personal financial situation now compared with a year ago ticked up six-tenths of a point this month, from 87.7 to 88.3. Opinions as to whether now is a good time to buy a big-ticket household item such as an appliance inched up seven-tenths of a point, from 100.7 to 101.4.

"The increase in these two components reflects that current economic conditions have improved in general among Floridians. These perceptions are particularly strong among men, those 60 and older, and those with income levels over $50,000," Sandoval says.

Future expectations
However, all three components that ask about future economic conditions showed a marked decrease. Expectations of personal finances a year from now showed the greatest decline in this month's reading, dropping 6.6 points from 106.0 to 99.4.

Opinions about the national economy were also negative: Expectations of U.S. economic conditions over the next year decreased 5.2 points, from 96.8 to 91.6. Anticipated U.S. economic conditions over the next five years fell from 95.1 to 89.3, a 5.8-point drop.

"Expectations about future economic conditions increased between November and December of last year but have declined since then," says Sandoval. "Floridians are pessimistic about their future personal finances independent of their socioeconomic and demographic status. The greatest declines in perceptions about the national economy were among women, those under age 60 and those with annual income above $50,000."

Until September 2016, the current economic conditions components and the future expectations components moved in tandem. But from September 2016 until February 2017, the future expectations components went up faster and stayed above the components reflecting current conditions.

"Expectations about the U.S. economy improved greatly before and right after the presidential election, perhaps because the population was optimistic about the incoming administration," Sandoval says. "However, these expectations are turning pessimistic in February, and the gap between the present perceptions and future expectations has disappeared."

Overall, economic activity has expanded and the labor market continued to strengthen in the U.S. As a result, the Federal Open Market Committee decided earlier this month to keep the benchmark overnight lending rate target at a range of 0.5 percent to 0.75 percent.

In recent months, Florida job gains have remained strong and the unemployment rate has remained low, reflecting the state's positive economic environment.

Economists look to consumer sentiment as an early signal of future conditions, because confidence among consumers leads to spending and consumption. "High levels of confidence are important to keep the economy growing," Sandoval said. "The next few months will be key to assessing the potential economic outlook for the following years."

Conducted Feb. 1-23, the UF study reflects the responses of 489 individuals who were reached on cellphones, representing a demographic cross section of Florida. The index used by UF researchers is benchmarked to 1966, which means a value of 100 represents the same level of confidence for that year. The lowest index possible is a 2, the highest is 150.

© 2017 Florida Realtors  

Are you looking to purchase or sell a Home in Flagler County?  Give me a call.

Robert "Bobby" Keith, Realtor® Realty Exchange

386-793-1426

U.S. Consumer Confidence Hits 15 Year High

U.S. consumer confidence hits 15-year high

NEW YORK – Feb. 28, 2017 – The Conference Board Consumer Confidence Index increased to 11.48 in February after a modest decline the month before (111.6 in January).

The Present Situation Index rose from 130.0 to 133.4, and the Expectations Index that gauges attitudes about the future economy increased from 99.3 last month to 102.4 in February.

"Consumer confidence increased in February and remains at a 15-year high (July 2001, 116.3)," says Lynn Franco, director of economic indicators at The Conference Board. "Consumers rated current business and labor market conditions more favorably this month than in January."

Current conditions
Consumers' assessment of current conditions held relatively steady in February. Those saying business conditions are "good" declined slightly from 29.0 percent to 28.7 percent, but those saying business conditions are "bad" also decreased – from 15.9 percent to 13.2 percent.

Consumers' assessment of the labor market was also mixed. Those stating jobs are "plentiful" declined from 27.1 percent to 26.2 percent, while those claiming jobs are "hard to get" also decreased, from 21.1 percent to 20.3 percent.

Short-term outlook
"Expectations improved regarding the short-term outlook for business, and to a lesser degree jobs and income prospects," says Franco. "Overall, consumers expect the economy to continue expanding in the months ahead."

The percentage of consumers expecting business conditions to improve over the next six months increased from 22.9 percent to 24.0 percent; however, those expecting business conditions to worsen also rose slightly from 10.8 percent to 11.1 percent.

Consumers' outlook for the labor market was moderately more upbeat. The proportion expecting more jobs in the months ahead increased from 19.7 percent to 20.4 percent, while those anticipating fewer jobs declined from 14.4 percent to 13.6 percent.

The percentage of consumers expecting their incomes to increase rose marginally from 18.1 percent to 18.3 percent, while the proportion expecting a decrease declined from 9.4 percent to 8.2 percent.

The monthly Consumer Confidence Survey, based on a probability-design random sample, is conducted for The Conference Board by Nielsen. The cutoff date for the preliminary results was February 16.

© 2017 Florida Realtors  

Are you looking to purchase or sell a Home in Flagler County?  Give me a call.

Robert "Bobby" Keith, Realtor® Realty Exchange

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NAR: Pending Home Sales Weaken in January

NAR: Pending home sales weaken in Jan.

WASHINGTON – Feb. 27, 2017 – Insufficient supply levels led to a lull in contract activity in the Midwest and West, dragging January’s pending home sales down to its lowest level in a year, according to the National Association of Realtors® (NAR).

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The Pending Home Sales Index, a forward-looking indicator based on contract signings, decreased 2.8 percent to 106.4 in January from an upwardly revised 109.5 in December 2016. Although last month’s index reading is 0.4 percent above last January, it’s the lowest since then.

“The significant shortage of listings last month along with deteriorating affordability as the result of higher home prices and mortgage rates kept many would-be buyers at bay,” says Lawrence Yun, NAR chief economist. “Buyer traffic is easily outpacing seller traffic in several metro areas and is why homes are selling at a much faster rate than a year ago. Most notably in the West, it’s not uncommon to see a home come off the market within a month.”

According to Yun, interest in buying a home is the highest it has been since the Great Recession. Households are feeling more confident about their financial situation; job growth is strong in most of the country and the stock market has seen record gains in recent months.

While these factors bode favorably for increased sales in coming months, buyers are dealing with challenging supply shortages that continue to run up prices in many areas.

“January’s accelerated price appreciation is concerning because it’s over double the pace of income growth, and mortgage rates are up considerably from six months ago,” says Yun. “Especially in the most expensive markets, prospective buyers will feel this squeeze to their budget and will likely have to come up with additional savings or compromise on home size or location.”

Existing-home sales are forecast to be around 5.57 million this year, an increase of 2.2 percent from 2016 (5.45 million). The national median existing-home price this year is expected to increase around 4 percent. In 2016, existing sales increased 3.8 percent and prices rose 5.1 percent.

“Sales got off to a fantastic start in January, but last month’s retreat in contract signings indicates that activity will likely be choppy in coming months as buyers compete for the meager number of listings in their price range,” says Yun.

The Pending Home Sales Index in the Northeast rose 2.3 percent to 98.7 in January, and it’s now 3.6 percent above a year ago. In the Midwest, the index fell 5.0 percent to 99.5 in January, and it’s now 3.8 percent lower than January 2016.

Pending home sales in the South inched higher (0.4 percent) to an index of 122.5 in January and are now 2.0 percent above last January. The index in the West dropped 9.8 percent in January to 94.6, and it’s now 0.4 percent lower than a year ago.

© 2017 Florida Realtors

Are you looking to purchase or sell a Home in Flagler County?  Give me a call.

Robert "Bobby" Keith, Realtor® Realty Exchange

386-793-1426

More Sales, Rising Prices in January

Fla.’s housing market: More sales, rising prices in Jan.

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. Thestatewide 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.

Accordingto the National Association of Realtors (NAR), thenational median sales price for existing single-family homes in December 2016 was $233,500, up 3.8 percent from the previous yearthe 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.

© 2017 Florida Realtors®

Are you looking to purchase or sell a Home in Flagler County?  Give me a call.

Robert "Bobby" Keith, Realtor® Realty Exchange

386-793-1426