VA Loan Closing Costs: An Added Benefit

Are you or someone you know considering a VA loan for a new home? Here’s some valuable information that can help you navigate the process more smoothly and save money at the closing table.

One of the significant advantages of VA loans is that they require no down payment for qualified VA borrowers. But that’s not all! When it comes to closing costs, there’s a distinct advantage for veterans as well. Here’s a breakdown of how it works:

Types of Closing Costs
VA borrowers are limited in terms of which closing costs they can pay for, and a handy acronym to remember these allowable costs is ACTORS:

A – Appraisal
C – Credit Report
T – Title Insurance
O – Origination Fee
R – Recording Fee
S – Survey

These are the charges most commonly found on VA mortgages and can be paid for by the veteran. However, there are other charges like attorney fees, underwriting fees, escrow, processing fees, document fees, and tax service fees that veterans are not allowed to pay.

Who Pays for Non-Allowed Costs?

The Seller Can: The seller of the property can agree to pay non-allowed closing costs as part of the sales contract, commonly known as a seller concession. This is typically limited to four percent of the home’s sales price.

The Lender Can: Lenders can offer a credit to the borrower by adjusting the interest rate. This can help offset some or all of the closing costs.

The Borrower Can: Instead of non-allowed fees, the lender may charge a one percent origination fee, which is an allowable charge for VA loans.

The Agent Can: In some cases, the real estate agent representing the buyer can contribute towards closing costs. This contribution comes from the commissions paid by the seller.

It’s important to note that VA loan closing costs differ from FHA or conventional loans, and understanding who is responsible for specific fees can be confusing. If you have any questions or need clarification, don’t hesitate to reach out to your loan officer. We’re here to help you make the best financial decisions for your home purchase journey!

Ready to take the next step? Give me a call today to get started on your path to homeownership with a VA loan. Your dream home is within reach!

If you have real estate questions or interested in buying or selling a home in Northeast Florida, please contact me at (904) 307-8998 or email williamvasana@kw.com. As a local area expert in Jacksonville Florida, I offer the highest level of professional services, luxury condo savvy, extensive residential experience, and intensive knowledge about Jacksonville neighborhoods and the overall market in the pre-construction and luxury development. I specialize in residential homes, condominiums, waterfront properties and new construction homes in Duval, St. Johns and Clay counties.

Jacksonville is listed among 5 biggest U.S. “Boomtowns”, according to LendingTree

Jacksonville is listed among 5 biggest “U.S. Boomtowns during pandemic,” according to LendingTree which ranked and scored the 100 largest metros in three main categories: people and housing, work and earnings and business and economy.

Southern metros dominated the list of the biggest boomtowns, with Florida, North Carolina, Texas and Virginia occupying eight of the Top 10 ranks.

Key findings

• Southern metros dominate the list of the biggest boomtowns. Metros in Texas, Florida, North Carolina and Virginia occupy eight of the top 10 spots in the LendingTree boomtown rankings.
• Among the 100 largest metros, Austin, Texas, has boomed the most during the pandemic. The number of housing units here jumped 12.9% between 2019 and 2021 — the second-highest among the 100 metros — and the population jumped by 5.6% in the same period — the third-highest — giving the central Texas metro the highest people and housing score.
• We head west for the second-biggest boomtown: Provo, Utah. The north-central Utah metro outpaced Austin in our work and earnings category, led by its No. 1 growth in workforce size (8.4%). In other categories, Provo had the greatest population growth between 2019 and 2021 (7.2%) and the second-biggest jump in gross domestic product (13.2%) in the same period.
• We head back South for our next-biggest boomtown: Lakeland, Fla. Lakeland had top-five finishes in individual metrics in all three categories: housing growth (7.7%), median earnings (16.3%) and new employer identification numbers (118.4%).
• The most sluggish metro — despite being known for its wonderful beaches — is Honolulu. The Hawaii metro finished last in our work and earnings and business and economy categories with the biggest jump in the unemployment rate (119%), the third-smallest jump in median earnings (1.7%) and the third-biggest decrease in annual GDP (5.3%) between 2019 and 2021. Joining Honolulu at the bottom are Hartford, Conn., and Los Angeles.

Many of the biggest boomtowns are in the South

For the biggest boomtowns in the U.S., look to the South. Of the top 10, eight are in Texas, Florida, North Carolina and Virginia.

Top 10 biggest boomtowns

Rank	Metro
1	Austin, TX
2	Provo, UT
3	Lakeland, FL
4	Boise, ID
5	Jacksonville, FL
6	North Port, FL
7	Durham, NC
8	Raleigh, NC
9	Charlotte, NC
10	Virginia Beach, VA

Source: LendingTree analysis of various sources.

“People — especially work-from-home employees — are leaving for warm weather and lower taxes,” LendingTree chief credit analyst Matt Schulz says. “Especially for Florida and Texas, those two factors have been instrumental in driving a lot of the growth.”

If you have real estate questions or interested in buying or selling a home in Northeast Florida, please contact me at (904) 307-8998 or email williamvasana@kw.com. As a local area expert in Jacksonville Florida, I offer the highest level of professional services, luxury condo savvy, extensive residential experience, and intensive knowledge about Jacksonville neighborhoods and the overall market in the pre-construction and luxury development. I specialize in residential homes, condominiums, waterfront properties and new construction homes in Duval, St. Johns and Clay counties.

Investor Home Purchase Activity Fell By Nearly 50% In Q4

Wall Street investor purchases of U.S. homes fell a record 45.8% year over year in the fourth quarter amid soaring interest rates as the high cost of borrowing money and the prospect of substantial home-price declines made real estate investing less attractive. The second biggest decline occurred in 2008, when investor purchases slumped 45.1% during the subprime mortgage crisis.

Overall U.S. home purchases fell 40.8% from a year earlier in the fourth quarter.

Investor purchases slumped 27% on a quarter-over-quarter basis, the largest quarterly decline on record aside from the beginning of the pandemic. That’s comparable with the 28.1% quarterly drop in overall home purchases.

While many investors have pumped the brakes on homebuying, investor market share has remained fairly steady. That’s because individual homebuyers have also pulled back. Investors purchased 17.8% of all homes that were bought in the metros tracked by Redfin in the fourth quarter. That’s comparable with 17.6% in the prior quarter and down from 19.4% a year earlier.

Investors bought $31 billion worth of homes in the fourth quarter, down 42.7% from $54.1 billion one year earlier and down 27.5% from $42.8 billion one quarter earlier. The typical home investors purchased cost $425,926, little changed from one year earlier but down 5.8% from one quarter earlier.

Investors piled into the housing market in 2021 due to rock-bottom mortgage rates and surging housing demand, and are now retreating amid projections that home prices have room to fall.

U.S. home prices are up less than 1% year over year—compared with 15% growth one year ago—and have fallen 11% from their spring 2022 peak. In many metros, prices are already declining on a year-over-year basis. That’s because the jump in mortgage rates last year dampened homebuyer demand. Higher rates also mean it’s more expensive to borrow money, which eats into profits. Many investors are moving their money into other asset classes that offer better returns. For investors who are landlords, slowing rent growth is also making it more challenging to reap large returns.

Investor home purchases in the fourth quarter of 2021 were near their record high, which is another reason the year-over-year decline in 2022 was so dramatic. Investors bought 48,445 homes in the metros tracked by Redfin in the fourth quarter of 2022, down from 89,396 a year earlier and 60,447 in the fourth quarter of 2019—before the pandemic.

Source: Redfin

If you have real estate questions or interested in buying or selling a home in Northeast Florida, please contact me at (904) 307-8998 or email williamvasana@kw.com. As a local area expert in Jacksonville Florida, I offer the highest level of professional services, luxury condo savvy, extensive residential experience, and intensive knowledge about Jacksonville neighborhoods and the overall market in the pre-construction and luxury development. I specialize in residential homes, condominiums, waterfront properties and new construction homes in Duval, St. Johns and Clay counties.

 

Northeast Florida Home Affordability Index falls nearly 35% in 2022

The Home Affordability Index for single-family homes in Northeast Florida fell steadily in 2022 from 104.5 in January to 69 in December. The index had dropped 34.9% in 12 months. The closer the index is to 100 or higher, the better.

The major factor in the lowering of the index throughout 2022 has been the dramatic increase in mortgage interest rates from around 3% to over 7% at the peak.

Throughout the year, prospective buyers were priced out of the market.

The first half of the year showed increasing costs, low inventory and listings lasting little more than a week. 

The second half found median prices stabilizing, increased inventory and a greater number of choices for buyers.

The median price of a single-family home fell 1.7% in December to $370,000 from $376,385 in November.

The December 2022 median price was 5.7% higher than in December 2021.

Single-family home sales usually fall in December because of the holidays.

December 2022, however, was different from December 2021.

There were 1,583 closings, down 38.4% from 2,570 in December 2021.

Pending sales also showed a decline, with a 31.9% drop to 1,324 in December 2022 compared with 1,944 in December 2021.

The closed and pending unit sales in the combined single-family, condo and townhouse market in Northeast Florida has been relatively stable for the past 3-4 months with just slight movement month over month as we would expect in line with the seasonality of a ‘normal’ real estate market.

Days on market is now a median of 50 days, which is more typical for a balanced market while only a 3.2-month supply is still considered a ‘sellers’ market.

The number of new listings coming on the market is following the historic seasonality with fewer new listings during the holidays and an anticipation of an uptick in mid to late spring.

When condos and town home sales are added, the median price for the three home types combined was $345,00 in December, similar to the March 2022 median price of $350,000.

It peaked in July 2022 at a median of $375,000.

Bottom line: The housing market is normalizing and this is a good sign.

Source: Jacksonville Daily Record and Northeast Florida Association of Realtors

If you have real estate questions or interested in buying or selling a home in Northeast Florida, please contact me at (904) 307-8998 or email williamvasana@kw.com. As a local area expert in Jacksonville Florida, I offer the highest level of professional services, luxury condo savvy, extensive residential experience, and intensive knowledge about Jacksonville neighborhoods and the overall market in the pre-construction and luxury development. I specialize in residential homes, condominiums, waterfront properties and new construction homes in Duval, St. Johns and Clay counties.

Fed Seen Ending Rate Hikes by March as Inflation Slows Most in a Year

It is expected that the Feds will raise the interest rates by 25-basis-point when meeting next week. The Feds will plan one more rate increase in Q1, ending rate hikes by March as inflation slows. A key measure of inflation climbed at its slowest pace in more than a year in December, a sign that the Federal Reserve’s efforts to rein in fast-rising prices are working. University of Michigan showed US inflation expectations continued to retreat in late January, helping boost consumer sentiment.

Key US Inflation Gauges Continue to Retreat

Personal spending, adjusted for changes in prices, dropped 0.3% in December. Inflation-adjusted outlays for merchandise fell 0.9%, while spending on services stagnated, the first month without an increase since January 2022.

The median estimates in a Bloomberg survey of economists were for a 0.3% advance in the core PCE price index and for no change in the overall measure on a monthly basis. The S&P 500 fluctuated as traders weighed corporate earnings while Treasury yields remained higher.

The figures added to mounting evidence that the worst bout of inflation in a generation has passed as the Fed’s aggressive tightening campaign works its way through the economy. Officials are widely expected to once again slow the pace of rate hikes, to a quarter point next week, and will discuss how much higher they need to go to ensure prices are cooling for good.

Policymakers are adamant that their work isn’t yet done, as a tight labor market threatens to keep upward pressure on wages and prices. They also point to price growth in services excluding energy and housing, which ticked up slightly to 0.32% last month, according to Bloomberg calculations.

The Fed’s hawkish stance has many economists worried the central bank will go too far, assigning a 65% chance of a recession over the next year. Several officials still maintain that a soft landing is possible, a scenario in which inflation cools without a surge in unemployment.

Americans, whose wages have lagged inflation throughout the pandemic, have been relying on credit cards and tapping into savings to support purchases. The saving rate rose to 3.4% in December, the biggest monthly increase since July 2021, the Commerce Department report showed.

The report showed a pullback in discretionary spending, particularly on categories like restaurants and hotel stays. On the goods side, purchases on apparel and footwear also dropped.

Personal income, unadjusted for inflation, as well as real disposable income, climbed 0.2% last month. Wages and salaries, unadjusted for prices, advanced 0.3% from November.

The Fed will get more data on the labor market next week, including the fourth-quarter employment cost index — a broad gauge of wages and benefits — as well as December job openings before the conclusion of its two-day meeting on Feb. 1. The January payrolls report will be released on Feb. 3.

Source: Bloomberg

If you have real estate questions or interested in buying or selling a home in Northeast Florida, please contact me at (904) 307-8998 or email williamvasana@kw.com. As a local area expert in Jacksonville Florida, I offer the highest level of professional services, luxury condo savvy, extensive residential experience, and intensive knowledge about Jacksonville neighborhoods and the overall market in the pre-construction and luxury development. I specialize in residential homes, condominiums, waterfront properties and new construction homes in Duval, St. Johns and Clay counties.

Deadline to File for Florida Homestead Exemption is March 1, 2023

Did you buy a home in Florida in 2022? If so, the deadline to file for the Florida homestead exemption is before March 1st, 2023. In order to claim your homestead exemption, the property must be designated as the owners’ principal domicile with the County Tax Assessor by March 1, 2023.

What is the Florida Homestead Exemption?

One of the reasons for the high costs of homeownership in Florida is property taxes. The amount you pay can differ according to the city or even the county. If you already own a home in Florida or are looking to buy one, the homestead exemption can help you to reduce your tax burden.

With the homestead exemption, you can reduce the taxable value of your home by as much as $50,000. It’s offered based on your home’s assessed value and provides exemptions within a certain value limit.

Who is Eligible for the Homestead Exemption?

While the tax savings could be significant, not everyone is eligible for it. Before you apply for the homestead exemption, ensure that you meet the following requirements:

• You are the property owner.
• The property you want to claim the exemption for must be your permanent residence.
• The property you want to claim should be the permanent residence of someone you can claim as a dependent on your taxes.

You must have lived at the property on January 1 of the tax year in question. For instance, if you hope to claim the homestead exemption on your 2023 taxes, you must have lived at the property in question on January 1, 2023.
You should not have rented the property for more than 30 days in a given calendar year. This is because renting the property for more than 30 days for two consecutive years or for more than six months is considered an abandonment of the Florida homestead exemption.

Why file for Homestead Exemption?

Tax Savings: Florida residents are entitled to a homestead exemption of up to $50,000.

Cap on Tax Assessment Rate Increases: the annual rate increase on assessed value is limited to 3%

Where to apply?

Owners should apply in person, or online in some counties, with the property appraiser’s office in the county in which the property is located.

What information is required?

It varies by County, but generally you will need the following:

• Your recorded deed or deed or tax bill
• Florida Driver’s License or State ID (must show primary residence)
• Vehicle registration (must show primary residence)

Please Note: If the title to the property on which you are applying is held in a trust, a copy of the entire trust agreement must be submitted with the application.

If you have real estate questions or interested in buying or selling a home in Northeast Florida, please contact me at (904) 307-8998 or email williamvasana@kw.com. As a local area expert in Jacksonville Florida, I offer the highest level of professional services, luxury condo savvy, extensive residential experience, and intensive knowledge about Jacksonville neighborhoods and the overall market in the pre-construction and luxury development. I specialize in residential homes, condominiums, waterfront properties and new construction homes in Duval, St. Johns and Clay counties.

Jacksonville ranked 2nd for Best Places to Live in Florida

In a recent article, Forbes ranked Jacksonville number 2 on the Best Places to Live in Florida beating out Miami, Orlando, Tallahassee, and others! Tampa took to the top spot. Jacksonville is known for its thriving economy, lower cost of living, picturesque beaches, and so much more. You can read the full article here.

It’s easy living here in the Bold City. With great beaches, waterways and a melting pot of culture, it’s no secret that our city is truly one-of-a-kind.

How did Forbes come up with their rankings? They compared Florida metropolitan areas using data from several platforms to measure variable criteria for home affordability, healthy employment and population growth.

“While Jacksonville holds the honor of being Florida’s largest city by population, its combined metro area population is smaller than Miami and Tampa,” writes Josh Patoka. “You can enjoy big city conveniences and live on the Atlantic Ocean—yet the living costs are relatively affordable.”

Forbes says banking, healthcare and transportation are the seven-county metro area’s biggest employment opportunities. 

“The city is also home to one of the nation’s three Mayo Clinics and offers access to many of Florida’s best banks,” says Patoka. 

If you’re looking for a livable city that’s accessible to beaches, waterways, outdoor activities and a melting pot of culture, then Jacksonville might be the city for you.

If you have real estate questions or interested in buying or selling a home in Northeast Florida, please contact me at (904) 307-8998 or email williamvasana@kw.com. As a local area expert in Jacksonville Florida, I offer the highest level of professional services, luxury condo savvy, extensive residential experience, and intensive knowledge about Jacksonville neighborhoods and the overall market in the pre-construction and luxury development. I specialize in residential homes, condominiums, waterfront properties and new construction homes in Duval, St. Johns and Clay counties.

Foreign Buyer Purchases Down From Last Year

Foreign buyers continued to pull back for the second year, purchasing $74 billion of U.S. existing home sales from April 2019–March 2020, a 5% decrease from the prior 12-month period, according to the National Association of REALTORS®. Foreign buyer purchases made up 4% of the $1.7 trillion existing-home sales.

International clients (non-U.S. citizens) who already resided in the United States as recent immigrants or who held visas that allowed them to live in the U.S. for work, business, education purposes (Type B) purchased $41 billion of U.S. existing-home sales, or 61% of the dollar volume of purchases.  Foreign buyers who lived abroad (Type A) purchased $33 billion of existing home sales, accounting for 39% of the dollar volume.

Foreign buyer purchases declined as trade tensions escalated between the U.S. and China in 2019, resulting in weaker global economic growth and weaker currencies relative to the dollar — conditions that lower the purchasing power of foreign buyers. The decline in foreign buyer purchases in the 2019 and 2020 NAR reports comes amid a marked drop in foreign direct investment in newly acquired businesses, trade, and persons granted permanent legal residence and non-immigrant visas for businesses, travel, and education since about 2017 and in the wake of regulatory measures of China’s government to closely monitor dollar outflows from China since 2016.  The low inventory of homes for sale also constrained the home buying of international and domestic buyers alike. The sustained appreciation in home prices and the weaker currencies relative to the dollar also made a home purchase less affordable for foreign buyers living abroad (Type A).

The U.S. travel bans to control the spread of coronavirus to the United States that took effect from February may also have impacted some transactions that were due to close, but that impact does not appear to be significant based on the monthly REALTORS® Confidence Index survey.

China remains the #1 buyer of U.S. residential real estate despite a steep decline since 2018

Purchases of existing homes of Chinese foreign buyers have declined from $30.4 billion during the 12 months ended March 2018 to just $11.5 billion during the 12 months ended March 2020, but they remain as the largest buyer of residential property, slightly ahead of Canadian buyers who purchased $9.5 billion of existing homes. Mexican buyers purchased $5.8 billion, followed by Asian Indian buyers, at $5.4 Bn. Colombia rounded out the top 5, purchasing $1.3 billion. Colombia replaced the United Kingdom as the 5th largest country of origin of foreign buyers.

For the reference period of April 2019-March 2020, the majority of Canadian (74%) and Colombian buyers (61%) lived abroad (Type A) while only a minority of Asian Indian (11%) and Mexican (31%) buyers lived abroad. Thirty percent of Chinese buyers lived abroad, a decline from 41% during the prior 12-month period.

Florida remains the #1 destination of foreign buyers

Florida remained the major destination, attracting 22% of foreign buyers. Florida’s foreign buyers mostly come from Latin America (35%) and Canada (29%). Florida was the top destination among Canadian and Colombian buyers.

California was the destination of 15% of foreign buyers. Fifty-four percent of California’s foreign buyers came from Asia/Oceania. It was the top destination among Chinese and Asian Indian buyers.

Texas attracted 9% of foreign buyers. Forty-two percent of Texas’ buyers came from Latin America/Caribbean. Texas was the top destination among Mexican buyers.

New York accounted for 5% of foreign buyers, with 51% coming from Asia/Oceania. It was a major destination among Chinese, Asian Indian, and Colombian buyers.

New Jersey accounted for 4% of all buyers. Fifty percent of New Jersey’s buyers came from Asian/Oceania. New Jersey was a major destination among Chinese buyers.

Other major destinations were North Carolina, Arizona, Minnesota, Georgia, Illinois, and Virginia. Arizona had been one of the top five destinations in past years but was not in the top 5 list this year. It was a major destination among Canadian buyers.

Higher median purchase price among foreign buyers reflects location choices

The median existing-home sales price among foreign buyers was $314,600, 15% more than the median price of $274,600 of all existing-homes sold in the U.S. during the April 2019–March 2020. The price difference reflects the choice of location and type of properties desired by foreign buyers.  Chinese buyers had the highest median purchase price, at $449,500, with nearly half of Chinese buyers purchasing property in California and New York.

Thirty-nine percent of foreign buyer transactions were all-cash sales, with a higher percentage among non-resident foreign buyers (59%) compared to resident foreign buyers (27%).  Canadian buyers were the most likely to pay all-cash, at 66%, while Asian Indian buyers were the least likely, at 8%. Forty percent of Chinese buyers made an all-cash purchase.

Methodology

This survey was sent to 150,000 randomly selected REALTORS®. The online survey was conducted from May 21–June 24, 2020. A total of 11,615 REALTORS® responded to the 2020 survey, of which 1,190 reported an international residential foreign buyer. NAR also conducted separate studies for the Raleigh Regional Association of REALTORS®, Mainstreet Organization of REALTORS®, Austin Board of Realtors®, the Long Island Board of Realtors® and the Ohio Realtors®, and their responses were added to the national random sample. To correct for over/under-sampling across states, NAR weighted the distribution of responses to the distribution of NAR membership by state as of June 2020. Respondents provided information about the characteristics of international clients based on the most recent closed transactions from April 2019–March 2020. To minimize the response bias that can skew upwards the share of foreign buyers to existing home sales, NAR estimates the share of non-resident (Type A) foreign buyers to existing home sales from the monthly REALTORS® Confidence Index Survey that that gathers information on the characteristics of transactions of the respondent’s most recent sale for the reference month, which are viewed as a random sample of all transactions for the month.

Source: NAR

American Dream Down Payment Act Gains Momentum on Capitol Hill

The National Association of Realtors (NAR) is optimistic that the American Dream Down Payment Act will continue to gain momentum on Capitol Hill.

U.S. Rep. Cory Gardner, left, is sponsoring legislation with Sen. Doug Jones of Alabama to make it easier for people to save money to buy a home.

Legislation introduced by Senators Doug Jones (D-AL) and Cory Gardner (R-CO) is being recognized as a critical component of the national effort to address the barriers to first-time homeownership in America. The National Association of Realtors®, which previously submitted a letter in support of the legislation, expressed optimism that the American Dream Down Payment Act and other similar proposals to address housing affordability would continue gaining momentum on Capitol Hill.

“The resiliency of our residential real estate market has been one of the few bright spots of America’s economy during this pandemic, but numerous would-be homebuyers are finding it difficult or impossible to save the money needed for a down payment on a home,” said NAR President Vince Malta, broker at Malta & Co., Inc., in San Francisco, CA. “This is especially discouraging given record-low interest rates are making it easier for aspiring homeowners to afford monthly mortgage payments.

“Modeled on the very popular 529 education savings account concept, the American Dream Down Payment Act would allow savings for the down payment of a principal residence to grow tax-free, offering a responsible and commonsense approach to the multi-faceted problem of housing affordability in America.”

In its letter sent Monday to Senators Jones and Gardner, NAR relayed hope that these accounts could serve as a tangible resource to aspiring homeowners who have been unable to save sufficient funds for a down payment. According to the Urban Institute, two-thirds of renters have identified the inability to save for a down payment as an obstacle to homeownership.

“We appreciate your initiative in putting forth a reasonable proposal that should attract support from your colleagues as well as the growing population of those for whom down payment assistance would help open the door to their all-important first home purchase,” Malta wrote to the lawmakers.

As described by Senators Jones and Gardner, the American Dream Down Payment Act would:

• Let states establish American Dream Down Payment Accounts, which they would manage in the same way they manage 529 Plan accounts;
• Allow prospective homeowners to save as much as 20% of today’s home cost, indexed for inflation, to use for an eligible down payment and other housing costs;
• Facilitate long-term savings for a down payment and allow contributions from family and friends; and
• Allow homebuyers to use those savings and earnings tax-free at withdrawal for eligible expenses.

The National Association of Realtors® is America’s largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.

Source: NAR

Peak Home Buying Season Shifts from May to August This Year

The U.S. real estate market is now doing better than it did before the pandemic, with the Recovery Index hitting 103.8 compared to a back-to-normal score of 100. Two Central Florida metros have fully recovered as South Florida and Jacksonville move closer.

Home buying season’s usual May peak has shifted to August as buyers and sellers rebound from spring’s COVID disruption, according to Realtor.com’s Weekly Recovery Report. This week’s data shows growth in pace of sales, demand and prices have surpassed last year levels, while inventory continues to lag seasonal normals.

Realtor.com’s Housing Market Recovery Index reached 103.8 nationwide for the week ending Aug. 1, posting a 0.1 point increase over last week and bringing the index 3.8 points above the pre-COVID baseline.

According to the weekly survey, the New York-Newark-Jersey City metro area has seen the strongest rebound. It ranked first with a recovery index of 129.6, a weekly increase of 9.6 points. The Wisconsin metro area of Milwaukee-Waukesha-West Allis ranked last as No. 50 with an index score of 89.2 – a weekly drop of 1.5 points.

In Florida, two cities rose about the old-normal score of 100 this week, while two other cities remained slightly below:

• The Orlando-Kissimmee-Sanford metro area ranked No. 22 with a score of 102.5 – a weekly increase of 9.6
• The Tampa-St. Petersburg-Clearwater metro area ranked No. 25 with a score of 102.2 – a weekly increase of 1.2
• The Jacksonville area was No. 34 with a score of 99.3 – a 3.4 weekly increase
• The Miami-Fort Lauderdale-West Palm Beach metro area ranked No. 41 with a score of 96.8, a 0.2 weekly increase

“Real estate activity in the U.S. has regained its strength and continues on an upward trajectory as we enter the middle of the summer,” says Javier Vivas, director of economic research for realtor.com.

Vivas says the unusually robust summer selling season is making up for weakness in the spring, but current patterns will have to last 10 more weeks to “make up for the lost activity in the second quarter of the year. As we head into fall, an anticipated resurgence in COVID cases and economic aftershocks are likely to create an uphill battle for home buyers and sellers.”

• Time on market is now 4 days faster than last year – a result of too few homes for sale and mortgage rates at or near-record lows.
• Median listing prices grew 9.4% year-to-year, and the rate of home price increases continues to pick up speed. The report calls the price rise “perhaps the most surprising aspect of how the housing market has fared – a dramatic departure from the last time unemployment was in double-digit territory.”
• New listings dropped 11%, and a gradual improvement in the number of new sellers listing homes took a pause despite continued price gains.
• Total inventory advertised on realtor.com declined 35%.
• Regionally, the West (110.5) continues to lead the pack in the recovery, with the overall index now visibly above the pre-COVID benchmark. The Northeast (108.2) remains above recovery pace and continues to improve, while the South (99.5) and Midwest (98.8) continue to lag. A total of 29 markets have crossed the recovery benchmark.

The Weekly Housing Index leverages a weighted average of realtor.com search traffic, median list prices, new listings, and median time on market and compares it to the January 2020 market trend, as a baseline for pre-COVID market growth. The overall index is set to 100. The higher a market’s index value, the higher its recovery.

Top 50 Metros Recovery Index
Rank	Metro	Recovery Index (Week Ending 7/25)	Recovery Index (Weekly Change)
1	New York-Newark-Jersey City, N.Y.-N.J.-Pa.	129.6	9.6
2	Las Vegas-Henderson-Paradise, Nev.	117.1	1.3
3	Seattle-Tacoma-Bellevue, Wash.	115.5	-1.3
4	Boston-Cambridge-Newton, Mass.-N.H.	115.2	-4.2
5	Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.	115.2	0.6
6	Denver-Aurora-Lakewood, Colo.	115.0	0.6
7	Los Angeles-Long Beach-Anaheim, Calif.	114.1	0.5
8	San Diego-Carlsbad, Calif.	111.9	2.8
9	San Jose-Sunnyvale-Santa Clara, Calif.	110.6	-0.2
10	San Francisco-Oakland-Hayward, Calif.	110.1	-3.3
11	Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.	109.0	0.6
12	Austin-Round Rock, Texas	108.5	-0.8
13	Phoenix-Mesa-Scottsdale, Ariz.	108.3	-1.2
14	Portland-Vancouver-Hillsboro, Ore.-Wash.	107.3	0.7
15	Baltimore-Columbia-Towson, Md.	107.0	2.9
16	Virginia Beach-Norfolk-Newport News, Va.-N.C.	106.6	2.0
17	Riverside-San Bernardino-Ontario, Calif.	106.1	0.8
18	Pittsburgh, Pa.	105.6	1.9
19	Cincinnati, Ohio-Ky.-Ind.	105.2	4.8
20	Hartford-West Hartford-East Hartford, Conn.	104.1	-0.8
21	Providence-Warwick, R.I.-Mass.	103.3	-0.6
22	Orlando-Kissimmee-Sanford, Fla.	102.5	1.2
23	Rochester, N.Y.	102.4	-2.8
24	Raleigh, N.C.	102.3	3.4
25	Tampa-St. Petersburg-Clearwater, Fla.	102.2	0.4
26	Charlotte-Concord-Gastonia, N.C.-S.C.	101.4	0.0
27	Kansas City, Mo.-Kan.	101.0	-0.5
28	San Antonio-New Braunfels, Texas	100.9	0.5
29	Houston-The Woodlands-Sugar Land, Texas	100.2	0.2
30	Minneapolis-St. Paul-Bloomington, Minn.-Wis.	99.7	-1.7
31	Sacramento–Roseville–Arden-Arcade, Calif.	99.6	0.2
32	Nashville-Davidson–Murfreesboro–Franklin, Tenn.	99.6	0.7
33	St. Louis, Mo.-Ill.	99.5	1.3
34	Jacksonville, Fla.	99.3	3.4
35	Memphis, Tenn.-Miss.-Ark.	99.2	0.6
36	Cleveland-Elyria, Ohio	99.1	-3.9
37	Louisville/Jefferson County, Ky.-Ind.	99.0	-0.1
38	Atlanta-Sandy Springs-Roswell, Ga.	98.8	1.0
39	Dallas-Fort Worth-Arlington, Texas	98.3	-1.4
40	Detroit-Warren-Dearborn, Mich	97.9	2.0
41	Miami-Fort Lauderdale-West Palm Beach, Fla.	96.8	0.2
42	Buffalo-Cheektowaga-Niagara Falls, N.Y.	96.4	-1.7
43	Chicago-Naperville-Elgin, Ill.-Ind.-Wis.	95.4	-1.9
44	New Orleans-Metairie, La.	94.4	-3.1
45	Birmingham-Hoover, Ala.	94.3	-0.4
46	Columbus, Ohio	92.8	-1.2
47	Richmond, Va.	92.2	-2.5
48	Indianapolis-Carmel-Anderson, Ind.	92.0	0.5
49	Oklahoma City, Okla.	91.4	-3.3
50	Milwaukee-Waukesha-West Allis, Wis.	89.2	-1.5

Source: Florida Realtors

Single Women Own More Homes Than Single Men Do

Single women own more than 1.5 million more homes than single men in America’s 50 largest metro areas, according to a new study conducted by LendingTree, an online lending marketplace.

All the single ladies are outpacing men in homeownership

Even though women earned just 79 cents for every dollar men made in 2019 – regardless of job type or seniority – single women in the U.S. currently own about 5.1 million homes, while single men own 3.5 million homes.

It is a continuation of a trend that the National Association of Realtors reported in late 2018, when single female buyers made up 18 percent of overall homebuyer demographics, second to married couples. While single male buyers came in third, they tended to purchase more expensive homes (at a median price of $215,000) than single female buyers (median price of $189,000).

Why single women are outpacing single men when it comes to homeownership is a bit of a mystery, although the desire to nest could be a factor. “We do know single females tend to really value homeownership, not just as a financial investment but also as a place where they can live,” NAR Director of Demographics and Behavioral Insights Jessica Lautz said in a statement about the report. “They really desire a place they can own.”

Caregiving responsibilities could be another reason. According to the Pew Research Center, 21 percent of children live with single mothers, while only 4 percent live with single fathers. “Even if she doesn’t have young children, she is likely a caregiver in another way,” Lautz said of the typical single female buyer. “Maybe she has children over 18 who live with her, or maybe she’s caring for an older parent.”

In all of the 50 largest metropolitan area surveyed by Lending Tree, single women owned more homes than single men do.

Jacksonville had the 12^th largest gender gap of single homeowners in the study. Single women in Jacksonville own and occupy 49,328 households, while single men own and occupy 33,035 households, a gap of 4.60 percent.

Source: LendingTree

Florida Home Sales Up 23.8% and Condo Up 17.7% in Dec.

The holiday season was a time of good cheer for Florida’s housing market, with more closed sales, higher median prices and increased pending sales, plus more pending inventory in December 2019 compared to a year ago, according to the latest housing data released by Florida Realtors®.

Sales of single-family homes statewide totaled 25,557 last month, up 23.8% from December 2018.

Florida condo-townhouse sales were up 17.7% year-to-year. The statewide median price for single-family homes rose 5.9% to $270K, and condo-townhouse prices were up 8.1% to $200K. Pending inventory and new pending sales also rose statewide in both categories.

“Continued low interest rates are sparking buyer demand across Florida; however, a constrained supply and tight inventory of for-sale homes is putting pressure on home prices to rise,” says 2020 Florida Realtors President Barry Grooms, a Realtor and co-owner of Sarabay Suncoast Realty Inc. in Bradenton. “Existing single-family homes had a 3.4 months’ supply of inventory in December, while condo-townhouse properties showed a 5.2 months’ supply. In a positive sign, new pending sales rose 11.9% for single-family existing homes last month and new pending sales for condo-townhouse units increased 8.3%.

“Buying or selling a home can be a complex process, but a local Realtor stands ready to help.”

Statewide median sales prices for both single-family homes and condo-townhouse properties in December rose year-over-year for 96 months in a row. The statewide median sales price for single-family existing homes was $270,000, up 5.9% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $200,000, up 8.1% over the year-ago figure. 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 November 2019 was $274,000, up 5.4% from the previous year; the national median existing condo price was $248,200. In California, the statewide median sales price for single-family existing homes in November was $589,770; in Massachusetts, it was $405,000; in Maryland, it was $301,000; and in New York, it was $280,000.

Looking at Florida’s condo-townhouse market in December, statewide closed sales totaled 9,605, up 17.7% from the level a year ago. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

Florida Realtors Chief Economist Dr. Brad O’Connor points out that Florida’s housing market this December showed very different data trends than the previous year. In December 2018, the state was experiencing weak existing home sales growth and rising inventory levels driven in part by higher interest rates, a troubled stock market and uneasiness generated by an impending shutdown of the federal government, according to O’Connor.

“Closed sales of existing single-family homes were up by nearly 24% compared to last December, while closings in the condo-townhouse category were up by almost 18%,” he says. “So why such a big jump? Well, part of it is explained by the fact that sales were unusually weak at the end of 2018, driven in part by a sharp increase in the average 30-year mortgage rate.

Of course, that doesn’t explain the entire increase in sales, he adds.

“The average 30-year mortgage rate spent the entire second half of 2019 in the range of 3.5% to 3.8%, flirting with historical lows,” O’Connor says. “And in the months since the mid-year yield curve scare that spooked the financial markets, the Federal Reserve has dropped the federal funds rate three times, restoring calm to the national economy. Here in Florida, we saw new pending sales for both property types begin surging in October, and now, with the December figures, we see a significant share of those deals successfully closed by year’s end.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.72% in December 2019, down from the 4.6% averaged during the same month a year earlier.

Source: Floridarealtors.org.

Florida is the No. 1 Destination for Relocating Homebuyers

LendingTree’s latest migration analysis revealed that 12.1% of American homebuyers who relocate to different states prefer to call the south their new home.

The migration report utilized data from LendingTree’s website, gathering information from 2 million new purchase mortgage loan requests made in 2018.

The report indicated that across the country, Florida is the No. 1 destination for homebuyers moving from 15 of the 50 states. Notably, of all purchase mortgage requests, 9.1% were made for Florida, and 12.4% of out-of-state movers requested the state as well.

However, when LendingTree analyzed destination states according to population size, South Carolina scored the highest. In this state, mortgage loan requests were 52% greater than suggested based on its share of the national population.

When it came to homebuyers relocating within their state, Texas led the way with 93.4% of purchase mortgage requests from individuals looking for properties.

Unfortunately, Alaska wasn’t as lucky, as LendingTree revealed only 75.2% of Alaskan homebuyers wanted to relocate within the state, marking the lowest percentage across the country.

NOTE: LendingTree’s popularity score derives from the calculation of dividing the percentage of all purchase mortgage requests for the state by the percentage of the total population each state represents.

Source: LendingTree and National Mortgage News

Hurricanes and Real Estate Contracts

Florida residents enjoy weather that many northern neighbors envy: warm temperatures all year, combined with easy access to breezy oceans, lakes, rivers and springs.

However, the weather here occasionally turns sinister, most notably when hurricanes meander across the Atlantic to wreak havoc on our state.

When these hurricanes impact real estate transactions, many Realtors scramble to locate casualty and bad weather provisions. This short inventory provides an overview of key provisions in the Florida Realtors/Florida Bar “AS IS” Residential Contract for Sale and Purchase revised in April of 2017, along with one reference to the casualty provision contained in the Florida Residential Landlord and Tenant Act.

1. Section 18(G) Force Majeure
   This is an automatic extension that comes into play when a dramatic event prevents a party’s performance or closing from happening. It takes an unusual and unplanned event to trigger this “Force Majeure” clause, as you can see from a few of the examples given, such as, hurricanes, acts of God and acts of terrorism. Once the clause is triggered, though, certain time periods (including the closing date, if applicable) will be extended for a reasonable time up to 7 days after the force majeure no longer prevents performance. Parties should pay attention to the time in relation to the closing date, though, since either party may terminate the contract by delivering a written notice if force majeure continues to prevent performance more than 30 days beyond the closing date.
2. Section 18(L) Access to Property to Conduct Appraisals, Inspections, and Walk-Through
   After a hurricane passes over a property, a buyer often wants to take another look at the property, regardless of whether the buyer is still in the inspection period. This clause generally favors the buyer’s request, as it provides that “Seller shall, upon reasonable notice, provide utilities service and access to Property for appraisals and inspections, including a walk-through (or follow-up walk-through if necessary) prior to Closing.”
3. Section 18(M) Risk of Loss
   If the buyer or seller discover casualty damage from the hurricane, this clause describes the rights and obligations of each party. If the cost to restore the property does not exceed 1.5% of the purchase price (this cost includes the cost of pruning or removing damaged trees), then the cost is a seller obligation. If the restoration isn’t complete prior to closing, the seller will escrow a sum equal to 125% of the estimated cost to complete the restoration. If the cost of restoration exceeds 1.5% of the purchase price, then buyer has the option to either take the property along with 1.5% of the purchase price, or receive a refund of the deposit, releasing buyer and seller from all further obligations under the contract.
4. Section 83.63, Florida Statutes (Casualty Damage)
   This brief section simply provides that if rented residential premises are damaged or destroyed “so that the enjoyment of the premises is substantially impaired, the tenant may terminate the rental agreement and immediately vacate the premises.” This section continues to present a second scenario whereby a tenant may “vacate the part of the premises rendered unusable by the casualty, in which case the tenant’s liability for rent shall be reduced by the fair rental value of that part of the premises damaged or destroyed.”

Source: Florida Realtors, Florida Realtors Legal Hotline

$250K Home Giveaway Sweepstakes for U.S. Military or Veterans

Realtor.com® and Veterans United Home Loans, a U.S. Department of Veterans Affairs (VA) purchase lender, have teamed up to launch a $250,000 Veterans Day Home Giveaway Sweepstakes.

The contest will award up to $250,000 toward a home purchase to a U.S. military service member or veteran.

Veterans and current members of the military can enter the sweepstakes until Oct. 29 at realtor.com/homegiveaway.

The winner will be announced on Veterans Day, Nov. 11.

The winner will receive $250,000 (less tax withholding) at the closing of a home purchase transaction.

For more details, go to https://www.realtor.com/homegiveaway/rules.

Source: Realtor.com®

How to Prepare to Be a Homeowner

Ready to Become a Homeowner?

What to Keep in Mind as You Leave Renting Behind

Each year, millions of Americans purchase a home. In 2015, that was about 5.2 million, according to the National Association of Realtors, and about 35% of them were first-time buyers. If you’re anything like those millions, you’ve been waiting for the moment you finally feel ready to become an owner yourself. You’ve probably carefully considered your budget, your rising rent, and your future prospects — do you plan to move or have kids in the next few years? Can you get by with a two-bedroom, or should you spring for three?

While you’re weighing your needs with your means, there are a few other components of the transition to keep in mind.

1. Down Payment

Surely you haven’t overlooked this massive expense, which remains one of the biggest obstacles for hopeful homebuyers. Although you can negotiate the terms of your loan, depending on your credit score, you should plan to have 10% to 20% of your future home’s value saved up for a down payment — plus a few thousand more so you can be prepared for unanticipated repairs or other financial hiccups. If that seems impossible, the Federal Housing Administration has a program for first-time homebuyers, offering loans with down payments as low as 3.5%. However, with that small deposit comes larger monthly payments, and a larger amount paid by the end of the loan. Smaller down payments also result in another monthly cost: private mortgage insurance, which lenders sometimes require to protect themselves from loss.

2. Closing Costs

Yes — there’s even more cash that comes into play when you finalize your home purchase. The down payment goes toward the home’s value, but then there is also a cluster of smaller fees that get thrown into the “closing costs” bucket: loan origination fee, credit report, loan underwriter, home inspection and appraisal, title search, survey fee, and taxes (on the sale, not property taxes), and other assorted fees delineated by your real estate agent. Fortunately, you’re not looking at another $30,000 — unless you’re planning to buy a $1.5 million home. Your closing costs will typically add up to between 2% and 5% of the home’s value.

3. Insurance

As a renter, you probably paid a monthly insurance premium to make sure your personal belongings were protected in the event of a fire or other accident (at least you should have). And those premiums were probably pretty cheap. Your homeowners insurance premiums, however, will be quite a bit higher, and that’s because it has more to cover aside from the extra square footage. Homeowners insurance will financially protect you from damages incurred to your home, and all of your belongings inside of it, from damage caused by wind, hail, ice, fire, and more.

4. Taxes

This is another one of the costs that discourages a lot of renters when they begin to consider owning. But property taxes don’t have to be scary, or even that expensive. Familiarize yourself with the local tax rate before the purchase, and then set aside money in an escrow account each month so that you have enough to make the payment when it comes due, instead of scrambling into your savings. Many lenders require this escrow account. When they’re due — and how often — depends on your location, but the average U.S. household pays just over $2,000 in annually.

5. Maintenance

Time to start filling up that garage: Get a lawnmower, shovel, weedwacker, rake, or any other implement you’ll need to keep your property attractive and safe in every season. Additionally, plan to spend about 1% of your home’s value on annual maintenance projects, which can range from new batteries for your smoke detector to replacing your hot water heater or significant replumbing. Even brand-new houses aren’t immune to maintenance costs, so keep a devoted savings account at the ready — and don’t overlook your duties. Create (or find) a maintenance checklist and schedule to stay on top of important upkeep.

This article was provided by Sam Radbil, a contributing member of the marketing and communications team at ABODO. ABODO Gainesville apartments was founded in 2013 and is headquartered in Madison, Wisconsin.

Ready to Become a Homeowner?

What to Keep in Mind as You Leave Renting Behind

Each year, millions of Americans purchase a home. In 2015, that was about 5.2 million, according to the National Association of Realtors, and about 35% of them were first-time buyers. If you’re anything like those millions, you’ve been waiting for the moment you finally feel ready to become an owner yourself. You’ve probably carefully considered your budget, your rising rent, and your future prospects — do you plan to move or have kids in the next few years? Can you get by with a two-bedroom, or should you spring for three?

 

 

While you’re weighing your needs with your means, there are a few other components of the transition to keep in mind.

1. Down Payment

Surely you haven’t overlooked this massive expense, which remains one of the biggest obstacles for hopeful homebuyers. Although you can negotiate the terms of your loan, depending on your credit score, you should plan to have 10% to 20% of your future home’s value saved up for a down payment — plus a few thousand more so you can be prepared for unanticipated repairs or other financial hiccups. If that seems impossible, the Federal Housing Administration has a program for first-time homebuyers, offering loans with down payments as low as 3.5%. However, with that small deposit comes larger monthly payments, and a larger amount paid by the end of the loan. Smaller down payments also result in another monthly cost: private mortgage insurance, which lenders sometimes require to protect themselves from loss.

2. Closing Costs

Yes — there’s even more cash that comes into play when you finalize your home purchase. The down payment goes toward the home’s value, but then there is also a cluster of smaller fees that get thrown into the “closing costs” bucket: loan origination fee, credit report, loan underwriter, home inspection and appraisal, title search, survey fee, and taxes (on the sale, not property taxes), and other assorted fees delineated by your real estate agent. Fortunately, you’re not looking at another $30,000 — unless you’re planning to buy a $1.5 million home. Your closing costs will typically add up to between 2% and 5% of the home’s value.

3. Insurance

As a renter, you probably paid a monthly insurance premium to make sure your personal belongings were protected in the event of a fire or other accident (at least you should have). And those premiums were probably pretty cheap. Your homeowners insurance premiums, however, will be quite a bit higher, and that’s because it has more to cover aside from the extra square footage. Homeowners insurance will financially protect you from damages incurred to your home, and all of your belongings inside of it, from damage caused by wind, hail, ice, fire, and more.

4. Taxes

This is another one of the costs that discourages a lot of renters when they begin to consider owning. But property taxes don’t have to be scary, or even that expensive. Familiarize yourself with the local tax rate before the purchase, and then set aside money in an escrow account each month so that you have enough to make the payment when it comes due, instead of scrambling into your savings. Many lenders require this escrow account. When they’re due — and how often — depends on your location, but the average U.S. household pays just over $2,000 in annually.

5. Maintenance

Time to start filling up that garage: Get a lawnmower, shovel, weedwacker, rake, or any other implement you’ll need to keep your property attractive and safe in every season. Additionally, plan to spend about 1% of your home’s value on annual maintenance projects, which can range from new batteries for your smoke detector to replacing your hot water heater or significant replumbing. Even brand-new houses aren’t immune to maintenance costs, so keep a devoted savings account at the ready — and don’t overlook your duties. Create (or find) a maintenance checklist and schedule to stay on top of important upkeep.

This article was provided by Sam Radbil, a contributing member of the marketing and communications team at ABODO. ABODO Gainesville apartments was founded in 2013 and is headquartered in Madison, Wisconsin.

Pending Home Sales Hit a 10-Year High in April

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.

Source: National Association of Realtors

Clint Eastwood is Moving to Jacksonville, Florida

I saw this in the news yesterday. In a big surprise to everyone in Los Angeles, Hollywood actor Clint Eastwood reveals in a new interview that he is moving to the Jacksonville, Florida area. He tells the magazine that he is “tired of the California lifestyle” and is looking for a big change in life.

“I’m just tired of the California lifestyle and the fake people, honestly, and I feel like, at this point in my life, I’d rather just live in a place full of real, genuine people. I’ve been to Jacksonville a few times over the years and the people there are real… they’re genuine, and yeah every community has its problems but the people there are good, decent people and they care about their community. Those are the things I find most important in deciding where to live,” Eastwood told the magazine.

“I’m not retiring, I’m just looking for a change in life and I think I’ve found that in Jacksonville, Florida,” Eastwood reassured fans. Let us know what you think in the comments section below especially if you’re a resident of the Jacksonville, Florida area.

June Home Starts Surge – Highest Pace in 28 Years

The U.S. Commerce Department announced that housing starts in June climbed 9.8 percent to a seasonally adjusted annual rate of 1.17 million homes. All of that growth came from a 28.6 percent surge in multi-family housing that put apartment construction at its highest rate since November 1987. Starts for single-family houses slipped 0.9 percent last month.

U.S. builders broke ground on apartment complexes in June at the fastest pace in nearly 28 years, as developers anticipate that recent job gains will launch a wave of renters.

The gains show that what had been a sluggish construction sector is now running on economic adrenaline. Strong job growth and a rebounding economy have increased the numbers of buyers and renters searching for homes, while gradually rising mortgage rates have spurred homeowners to finalize deals.

Housing starts jumped 35.3 percent in the Northeast because of apartments, while climbing 13.5 percent in the South. Home construction slumped in the Midwest and West in June.

Nationwide, housing starts have risen 10.9 percent year-to-date.

Over the past 12 months, employers have added 2.9 million jobs, meaning there are more people with paychecks to spend across the broader economy. The impact of those job gains and the unemployment rate drop to 5.3 percent has surfaced in housing, where demand is outpacing the supply of homes and creating more pressure to build houses and apartments.

The market for new homes for sale had just 4.5 months of supply in May, compared to 6 months in a healthy market.

Approved building permits increased 7.4 percent to an annual rate of 1.34 million in June, the highest level since July 2007. The bulk of that increase came for apartment complexes, while permits for houses last month rose just 0.9 percent.

There are other signs that builders are increasingly optimistic.

The National Association of Home Builders/Wells Fargo builder sentiment index released Thursday climbed to 60 this month, a level last reached in November 2005 – shortly before the housing boom gave way to the mortgage crisis that triggered the Great Recession. Readings above 50 indicate more builders view sales conditions as good rather than poor.

Mortgage rates have started to rise, although they remain low by historic standards.

Source: The Associated Press