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.

Opt Out or Pay: All Troops to Get an Extra $100,000 in Life Insurance March 1

Starting on March 1st, all eligible military members will be automatically enrolled for $500,000 worth of Servicemembers’ Group Life Insurance coverage — even if they previously chose not to buy it — unless they opt out. The increase from the previous maximum of $400,000 was mandated by a law passed on October 17, 2022. The “Supporting Families of the Fallen Act” specifies that the increase to $500,000 in coverage can’t result in the insurance programs operating at a loss.

The insurance is administered by the Department of Veterans Affairs (VA) and pays beneficiaries in the event of the member’s death while on active duty or serving in the National Guard or Reserve.

Military members have until March 31st to opt out or reduce their coverage if they choose.

The new maximum coverage comes with a monthly premium of $31, up from $24 for the previous maximum. Members may also choose to purchase less coverage in $50,000 increments for lower premiums. TSGLI coverage, which pays out in the event of a traumatic injury, will also be included with an additional $1 monthly deduction. There is also $10,000 in free life insurance coverage for each dependent child.

During March, eligible troops need to decide whether to:

• Do nothing and accept the maximum coverage.
• Reduce their coverage. TSGLI and dependent child coverage remain in place all the way down to the coverage minimum of $50,000.
• Change their beneficiaries.
• Decline the coverage entirely. This will also cancel the TSGLI and dependent child coverage.

Go to the SGLI Online Enrollment System from March 1-31 to make any needed changes; access it on the milConnect website.

Those eligible for SGLI include service members on active duty; cadets and midshipmen at the military academies; certain Reserve Officer Training Corps cadets and midshipmen; drilling Guard or Reserve members; and Individual Ready Reserve members in a mobilization category. Commissioned members of the National Oceanic and Atmospheric Administration and the U.S. Public Health Service also qualify.

Rising costs of living spurred the increase in the maximum benefit, last raised from $250,000 to $400,000 in 2005, according to the VA’s frequently asked questions addressing the change. The department said it’s enrolling everyone automatically so that all can benefit “without any medical underwriting” — in other words, without taking your health into account.

Some more particulars surrounding the change:

• Existing SGLI coverage of a spouse under Family SGLI won’t change unless the service member declines SGLI in March, in which case the family coverage ends the first day of the month after declining.
• The increase will not be available retroactively.
• The SGLI paycheck deduction for March will either be the same as the service member was already paying; or $25, which was the prior maximum plus TSGLI. In case of a claim — if you die in March and your beneficiaries are due the payout — the difference will be deducted to get up to the month’s full premium.
• Service members who reduce or decline the coverage and later want to increase it will have to answer medical questions.
• The VA debuted a new life insurance program for veterans on Jan. 1.

The increase will not be available retroactively, and if a service member declines SGLI coverage in March, their Family SGLI coverage for their spouse will end on the first day of the following month. Those who reduce or decline coverage and later want to increase it will have to answer medical questions. The VA also debuted a new life insurance program for veterans on January 1st and will now be providing $1.45 trillion of life insurance coverage, making it the 12th largest group life insurer in the United States. The VA administers both the SGLI and VGLI insurance programs.

Service members leaving the military on or after March 1 who had the maximum SGLI coverage can purchase VGLI coverage up to $500,000. Veterans under age 60 who currently have $400,000 maximum VGLI coverage will be able to purchase additional coverage, in increments of $25,000, at specified anniversary dates.

Source: VA

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.

 

Love and Listings: The Top 10 Reasons Why Real Estate Agents Make The Best Partners

You know what they say: there’s no better wingman/woman than a real estate agent! When you’re with them, the world is your oyster (or your five-acre ranch, your beachfront villa, you name it.) Here are the top 10 reasons why you should absolutely and positively date or marry a real estate agent:

1. They’re always in the know so you’ll have the inside scoop on all the hottest restaurants, bars, and nightclubs in town and they know how to get you into the hottest properties, even if they’re completely out of your league (kind of like how they’ll sweep you off your feet!)
2. They’re always bringing you around to new places and showing you their listings, so you’ll never have a dull moment with them and will never get bored with the same old date spots.
3. They’ve got the keys to your heart (and a whole bunch of other keys too)!
4. They’ve got a sixth sense when it comes to reading people, so they’ll always know exactly what you’re thinking (and vice versa). They’ll never steer you in the wrong direction because they know the importance of a good foundation (in a house and in a relationship!)
5. They’re experts at finding hidden gems and turning them into diamonds in the rough, so if you’re feeling overlooked or undervalued, they’ll know just how to make you shine.
6. They’ve got a keen eye for curb appeal so they’ll know how to make you look good (literally and figuratively) and they know that beauty is more than skin deep, so they’ll appreciate you for who you are on the inside.
7. They’re used to handling high-pressure situations with ease and have plenty of experience dealing with difficult clients, so they’ll be able to handle any argument or disagreement that comes up in your relationship and be cool as cucumbers (and probably find a way to negotiate a win-win solution).
8. They’ve got a knack for solving problems, so they’ll always know how to fix whatever’s broken in your relationship (and if all else fails, they can always stage a breakup scene and flip it for profit).
9. They’re great at juggling multiple tasks and responsibilities, so you’ll never have to worry about them neglecting you for their work (unless, of course, they find a really good listing, in which case you might have to fend for yourself for a few hours).
10. They’re masters of negotiation communicating clearly and concisely, so you’ll never have to worry about misinterpreting their signals or intentions (unless they start speaking in real estate jargon, in which case you’re on your own).

Have you ever dated or married a real estate agent? What would you add to this list (besides a grain of salt)?

P.S. 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.

2020 July Market Stats for Jacksonville, Florida

Median List Prices for July inventory in Jacksonville are up 5% from last year. New Listings Median List Prices are up 13%. Both Median List Prices for Active and New inventory continue to trend upwards Year Over Year and compared to the previous month.

Source: NEFAR MLS

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

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

Chief Executive Magazine Ranks Florida Second-Best State for Business

Florida ranked second in a national publication’s list of the country’s best places for business.

In fact, Chief Executive magazine’s “Best and Worst States for Business” report has placed the same five states — Texas, Florida, Nevada, Tennessee, and Indiana — in the top five spots of its annual poll of CEOs.

The rankings reflect CEO perceptions of best and worst states based on a range of measures, including workforce, taxes and regulation, and living environment.

Texas topped the list for the 16th straight year, while Florida was runner-up for the eighth consecutive year.

Florida’s economy recently topped $1 trillion. More than $870,000 worth of adjusted gross income moves into Florida every hour. 

See the full report at https://chiefexecutive.net/2020-best-worst-for-states-business/

Jacksonville Listed in the Top 10 Best U.S. Cities for Veterans

• According to the Veterans Association, there are currently more than 19.2 million veterans living in America.
• However, when it comes to adjusting to civilian life, some areas of the country are better for veterans than others.
• WalletHub ranked the 100 largest US cities in four major categories — employment, economy, quality of life, and health — to determine the best cities for veterans to live in after leaving the service. 

WalletHub conducted a report of the best US cities for veterans, analyzing 20 key indicators of livability, affordability, and veteran-friendliness. The study then provided rankings — out of 100 — for each category.

Employment rankings took into account the number of veteran-owned businesses per veteran population and opportunities for job growth, as well as the availability of jobs that utilize military-learned skills. Economy rankings considered factors such as the median veteran income and veteran homelessness rates, while quality of life was determined by analyzing veteran population, restaurants with military discounts, and more.

The study found that Jacksonville, Florida, ranked 10th on the best US cities for veterans, earning a total score of 65.50 out of a possible 100.

Source: Business Insider

Jacksonville Listed in the Top 10 Best Places to Live on the Coast in 2020

Coastal Insider named Jacksonville in the Top 10 Best Places to Live on the Coast in 2020.

Jacksonville has everything: 22 miles of beaches, more than 400 city parks, seven state parks, two national parks, three beach communities (fun-loving Jacksonville Beach, low-key Neptune Beach, and the luxurious village setting of Atlantic Beach), and a steady, gentle Atlantic swell that means you can surf every morning year-round, whether you’re 5 or 65. What else? With Florida’s youngest population age—36—–and one of its hippest, plus a growing economy, affordable real estate, historic neighborhoods, vibrant street arts scene, creative coastal cuisine, vibrant nightlife, and redeveloped urban districts like Riverside and Springfield luring tech startups, makers, and brewers (20 craft breweries at latest count). And while Jacksonville sprawls like a beach blanket over nearly 875 square miles, it is built out of more than 500 discrete neighborhoods that feel like small towns—each with its own commercial district and sense of identity—to its 940,577 residents.

Source: Coastal Insider

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

Jacksonville is the third-most diverse job market in the U.S.

Jacksonville has been named the third-most diverse job market in the U.S., according to LinkUp, a job recruiting website. Jacksonville was listed behind Salt Lake City, Utah, and Buffalo, N.Y., respectively.

LinkUp analyzed data from job markets in relation to real estate values and availability in the third fiscal quarter of this year.

The study found that Jacksonville was less reliant on big employers and that job availability provided a wide range of options for workers.

In the top-five job markets, Jacksonville was followed by Raleigh, N.C., and Austin, Texas.

As far as the top-50 job markets in the United States, the least diversified were Cleveland, Atlanta, New York, Chicago and Detroit.

Source: LinkUp.com and Jacksonville.com

Housing sales, inventory trending up in Florida

Florida’s housing market reported more closed sales, rising median prices and more new listings in October compared to a year ago, according to the latest housing data released by Florida Realtors®. Sales of single-family homes statewide totaled 22,272 last month, up 8.5 percent compared to October 2017.

October marked 82 consecutive months (more than six and a half years) that statewide median sales prices for both single-family homes and condo-townhouse properties increased year-over-year.

Rising interest rates are having a ripple effect across the housing market as the Federal Reserve increases borrowing costs. Analysts expect the Fed to raise rates again a few times in 2019. Areas with strong job or population growth, like Florida, may be able to weather higher mortgage rates, analysts say.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.83 percent in October 2018, up from the 3.90 percent averaged during the same month a year earlier.