Miami-Dade for Sale vs. Sold

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About the For Sale vs. Sold Report
The vertical axis represents the number of homes, either closed or for sale in a given time period. The horizontal axis represents the monthly trends and changes measured each month. The light green bar represents the number of homes listed in the specified area for that month and price range. The red line with black triangle marks represents the number of homes pending in the specified area for that month and price range. The dark green bar represents the number of homes that have closed escrow in the specified area for that month and price range. The most recent month’s number is preliminary and may be revised in the next month’s report. This is to account for closed homes that are reported late.

You Should Know
The homes sold figures are derived from recorded transactions. Current monthly sold figures might be adjusted upward on the next month’s report. This is to account for any closed transactions that are reported late.





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About the Average Price per Sqft. Report
The vertical axis represents the average price per square foot of closed homes in a given time period. The horizontal axis represents the monthly trends and changes measured each month. The purple bar represents the average price per square foot of the closed homes in the specified area for that month and price range. This report represents the price range of the closed homes.

What Does Average Price per Sqft. Report Do?
It helps establish the market price for an average home. It helps determine if there is any change in property value for a specific area in a specific price range based on fifteen months of information.


How to Use Average Price per Sqft. Report?
Use the highest and lowest monthly average price per square foot on the chart to establish the most marketable price range in a specific area. If the home has a larger than normal lot, a special amenity, or is located in an area of social demand, the home price must be adjusted upward.


Refer to For Sale vs. Sold Report for the number of homes sold per month. If there are less than five homes sold per month for a specific price range, the average price per square foot might be skewed and is not as useful. In this case, an average of the fifteen month’s figures should be used in setting the price.




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About the Days on Market and Sold/List Price % Report
The vertical axis represents the percentage of the sold price / list price of the homes sold in given time period. It also represents average number of days that the house has been on the market. The horizontal axis represents the monthly trends and changes measured each month. The pink bar represents the average number of days that the sold homes had been on the market as active listings before a legal sales contract has been signed. The dark blue line with the red triangle marks represents the comparison of sold price and list price of the homes sold (sold listings) in percent in the specified area for that month.

What Does Days on Market and Sold/List Price % Report Do?
This report shows the percentage of sold price / list price at which an equal number of homes are sold above, equal or below the list price. It indicates how long it has taken to sell those homes in the last fifteen months. The percentage of sold price / list price helps identify where the market activity is the strongest. The days on market figure helps establish the minimum listing period. It helps identify the best match for a buyer’s price range.

How to Use Days on Market and Sold/List Price % Report?
If the percentage of sold price / list price is closer to 100 then there are more potential buyers available for the property. If a property’s listing period is less than the average days on the market, the listing will have a greater chance of expiring before it is sold.




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About the Average Price For Sale & Sold Report
The vertical axis represents the average price of homes that were listed, closed, or expired, in thousands, in a given time period. The horizontal axis represents the monthly trends and changes measured each month. The green line with the square marks is the average price of active homes listed, in thousands, in the specified area for that month. The red line with triangles marks is the average price of homes that have closed escrow, in thousands, in the specified area for that month.

What Does Average Price For Sale & Sold Report Do?
It helps determine whether the market is a buyer or seller market. If the average listing price and average sold price are the closest, the area has the healthiest market. It helps identify where the softest market is and where the buyer can find the biggest price concessions. It helps determine if there is any change in property value for a specific area based on fifteen months of information.

How to Use Average Price For Sale & Sold Report?
Refer to For Sale vs. Sold Report for the number of homes sold. If a very expensive or very cheap home has been sold, these statistics can be skewed up or down, and the trend line can fluctuate with less consistency. If the average sold price is below the average listing price, and falling, the market is moving toward a buyers’ market. If the average sold price trend is up or above the average listing price, the market is moving toward a sellers’ market.





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This representation is based in whole or in part on data supplied by Realtor Association of Greater Miami and the Beaches, Reltor Association of Miami-Dade County, Realtor Association of Greater Fort Lauderdale and Northwestern Dade Association of Realtors. Neither the Board or its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the Board or its MLS may not reflect all real estate activity in the market.*All reports are published Apr. 2009, based on data available at the end of Mar. 2009.

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Homeownership as a long-term investment

Value of homeownership keeps going up

While homes may be selling slowly in Florida, the fact remains that homes in the Sunshine State are selling, and that’s good news. As Florida economist Stan Geberer recently said in various media reports: “If we had all this excess inventory and nobody wanted to move here, you wouldn’t be able to sell the homes at any price. The fact that we have underlying demand and new job growth suggests this underlying demand is sufficient to clear the excess inventory without a dramatic collapse in prices.”

This supports Realtors’ conviction that our housing market is continuing to adjust following the frenzy of the five-year record run-up in sales and prices that we experienced here in the Sunshine State, as did most of the nation.

And we’re not alone in our beliefs. Florida homeowners know that their homes remain good investments. A July survey from the University of Florida’s Bureau of Economic and Business Research found that Floridians are optimistic about housing prices, with only 5 percent of those polled saying they think their house values will fall during the next five years.

Eighty-two percent expected the value of their houses to rise, and 13 percent said they would remain the same. The median respondent expected a gain of 18 percent, or a little more than 3 percent a year. The chairman of UF’s economics department, Jonathan Hamilton, summed up the survey findings, noting that “Most of the problem in Florida right now is that we’ve had a huge amount of building and lots of speculative buying, and things are now catching up.”

Another recent homeownership survey, this one for the Attorneys’ Title Insurance Fund, found that most homeowners in Florida in 2007 have a favorable outlook about the direction of their property values in the coming year. Sixty-three percent of the 1,400-plus Floridians polled statewide were confident that their homes’ worth would climb or at least hold steady during the next 12 months. Additionally, 58 percent agreed that now is a great time to buy a home or a condo in the Sunshine State.

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Florida’s existing home, condo sales rise in October 2008

ORLANDO, Fla. – Nov. 24, 2008 – For the second month in a row, Florida’s existing home sales rose in October, with Florida Realtors® reporting a 15 percent increase in activity in the year-to-year comparison; last month’s sales of existing condos statewide increased 5 percent in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors (FAR).

A total of 10,443 existing homes sold statewide last month, up 15 percent over the 9,118 homes sold in October 2007, according to FAR. Florida Realtors also reported higher statewide existing home and existing condo sales in September compared to the year-ago levels.

Thirteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing-home sales in October; seven MSAs also showed gains in condo sales, marking the fourth consecutive month that a number of markets have noted higher sales activity.

Florida’s median sales price for existing homes last month was $169,700; a year ago, it was $222,200 for a 24 percent decrease. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in September 2008 was $190,600, down 8.6 percent from a year earlier, according to the National Association of Realtors (NAR). In California, the statewide median resales price was $316,480 in September; in Massachusetts, it was $295,000; in Maryland, it was $271,520; and in New York, it was $215,000.

Market conditions continue to range widely, according to the latest housing outlook from NAR. “A pattern of sharply higher sales in areas with large price declines is well established,” said NAR Chief Economist Lawrence Yun. “Affordability conditions have consistently been a major factor in driving sales. Historically during recessions, buyers have responded to incentives and it’s important for government to keep that in the forefront of housing stimulus decisions.”

In Florida’s year-to-year comparison for condos, 2,956 units sold statewide compared to 2,805 sold in October 2007 for a 5 percent increase. The statewide existing condo median sales price last month was $147,600; in October 2007 it was $192,300 for a 23 percent decrease. In the latest data available at press time, NAR reported the national median existing condo price was $199,400 in September 2008.

Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.20 percent, down from the average rate of 6.38 percent in October 2007, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s large to medium-size markets, the Miami MSA reported a total of 453 homes sold in October compared to 367 homes a year ago for a 23 percent increase. The existing home median sales price was $246,800; a year ago, it was $354,800 for a 30 percent decrease. In the year-to-year comparison for the existing condo market, a total of 439 units sold in the MSA last month, up 1 percent compared to 436 condos sold the previous October. The market’s existing condo median price was $197,400; a year ago, it was $268,300 for a 26 percent decrease.

© 2008 FLORIDA ASSOCIATION OF REALTORS

22 Comments

Moving in the right direction

Moving in the right direction

In 2008, more than 300,000 people will move to Florida, generating a demand for 150,000 for-sale and rental homes. Meanwhile, the state’s economy is likely to add 175,000 new jobs, strongly outperforming national averages. And a significant percentage of Florida’s 80 million domestic and international visitors will consider buying second homes in the Sunshine State.

“Florida will continue to lure retirees and entrepreneurs looking for a warm climate where they can enjoy an active lifestyle,” says Linda C. Loomis, sales associate, John R. Wood Inc./Realtors® in Naples. “With golf, boating, fishing, tennis, beach going, swimming and a host of other outdoor activities at their doorstep, Florida offers a healthy and appealing lifestyle.” Read more…

5 Comments

Homeownership as a long-term investment

Value of homeownership keeps going up

While homes may be selling slowly in Florida, the fact remains that homes in the Sunshine State are selling, and that’s good news. As Florida economist Stan Geberer recently said in various media reports: “If we had all this excess inventory and nobody wanted to move here, you wouldn’t be able to sell the homes at any price. The fact that we have underlying demand and new job growth suggests this underlying demand is sufficient to clear the excess inventory without a dramatic collapse in prices.”

This supports Realtors’ conviction that our housing market is continuing to adjust following the frenzy of the five-year record run-up in sales and prices that we experienced here in the Sunshine State, as did most of the nation.

And we’re not alone in our beliefs. Florida homeowners know that their homes remain good investments. A July survey from the University of Florida’s Bureau of Economic and Business Research found that Floridians are optimistic about housing prices, with only 5 percent of those polled saying they think their house values will fall during the next five years.

Eighty-two percent expected the value of their houses to rise, and 13 percent said they would remain the same. The median respondent expected a gain of 18 percent, or a little more than 3 percent a year. The chairman of UF’s economics department, Jonathan Hamilton, summed up the survey findings, noting that “Most of the problem in Florida right now is that we’ve had a huge amount of building and lots of speculative buying, and things are now catching up.”

For more info on the UF survey, go to:

http://news.ufl.edu/2007/08/08/housing-prices/

Another recent homeownership survey, this one for the Attorneys’ Title Insurance Fund, http://www.fundhomeinfo.com/, found that most homeowners in Florida in 2007 have a favorable outlook about the direction of their property values in the coming year. Sixty-three percent of the 1,400-plus Floridians polled statewide were confident that their homes’ worth would climb or at least hold steady during the next 12 months. Additionally, 58 percent agreed that now is a great time to buy a home or a condo in the Sunshine State.

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Time to Buy!

The upside of Florida real estate: 20 market positives

Let’s take a look at some of the opportunities and positive indicators for the future of Florida’s real estate market.

  1. Long-term economic and demographic trends continue to favor Florida. By 2010 it has been forecast that Florida will be the third most populated state in the country. Florida’s population is expected to increase about 75 percent by 2030. Florida demonstrates a long history of strong growth. It has been one of the 10 fastest-growing states in the U.S. for each of the past seven decades, and often it has been in the top four, according to census data. Population growth will continue to provide a foundation for other economic growth such as new jobs and growing incomes. All of which is good for real estate.
  1. People are continuing to move here. It’s estimated that 1,000 people move here every day (www.stateofflorida.com, “Florida Quick Facts”). No wonder Florida’s population has grown 13.4% since 2000, compared to only 6.4% for the rest of the country, according to census data.
  1. Five of the top 15 cities in the Milken Institute’s 2007 “Best Performing Cities” survey, which looks at sustainable economic growth, are in Florida, including the No. 1 city, Ocala. A total of 13 Florida cities are in the top 50.
  1. Low unemployment. Almost 120,000 jobs were created in Florida in the year between August 2006 and August 2007. Florida’s unemployment rate has hovered at or under 4% for a long time; and was 4% in August 2007, according to the latest data available from the U.S. Department of Labor. That not only puts it well below the national unemployment average, it also is the lowest unemployment rate among all ten of the most populous states.
  1. Jobs are plentiful, and that trend will continue. A recent study by Bizjournals called “Where the Jobs Are” found that 7 of the hottest 15 job markets are in Florida.
  1. Let’s take a look at the weather. If you think the hurricanes we experienced are going to have long-term effects on the Florida real estate market, consider this tidbit from Fortune Magazine. It recently reported, “Economists and geographers who have studied how natural disasters affect real estate values have generally found there to be no lasting impact.” Example #1: When Hurricane Hugo hit Charleston, S. C., home values were actually higher one year later. Example #2: That same year, 1989, a huge earthquake made big news in San Francisco, and the same thing happened—house prices went up.
  1. Grant Thrall, a professor of what’s called Economic Geography, explains this phenomenon this way—residents move away and home prices fall only when natural disasters start becoming regular occurrences in an area, not when they happen periodically. And while the hurricane seasons of 2004 and 2005 may still be fresh in our minds, the fact is, historically it was a fluke. Eight storms hit the Florida mainland in those two years. But if you look back at the 50 years prior, only six Category 3 or higher storms hit the Florida mainland in half a century.
  1. Gov. Charlie Crist, state lawmakers and business groups are committed to finding real solutions to the escalating costs and shortage of property insurance in Florida, as well as much-needed property tax reform. Florida Realtors will continue working closely with lawmakers to help resolve these complicated issues and keep the state’s economy moving forward. For example, 2007 FAR President Nancy Riley sits on the governor’s property tax reform commission, and 2005 FAR President Frank Kowalski served on the governor’s insurance reform commission.
  1. Interests rates currently are still low, on a par with interest rates in the 1960s. And thanks to the Fed’s recent rate cut, we’re already seeing lower rates on home equity and mortgage loans, including jumbo loans. The Fed’s action effectively increases the number of homebuyers able to make a purchase, which should increase demand, and also help support home prices. Home prices continue to stabilize, inventory is plentiful and homebuyers have lots of options.
  1. Homeownership has value: Realtors believe… and research supports that belief … that homeownership provides a variety of benefits, tangible and intangible, to the community as well as the individual homeowner.
  1. Studies show that home equity is still the largest single source of household wealth, both for the individual homeowner and for homeowners as a group. Home value is the most important single aspect for homeowners.
  1. Owning a home leads to increased personal well-being. Research shows that people who own their own homes tend to show higher levels of personal esteem and life satisfaction, which in turn helps to make homeowners and their children more productive members of society.
  1. Studies show that children raised in homes owned by their families are more likely to stay in school and more likely to graduate high school. They’re also shown to have a higher lifetime annual income.
  1. People who own homes have a strong financial stake in what happens to their community and tend to become more involved in community and civic affairs. Studies show that homeowners also interact with their neighbors to gain wider influence over their neighborhoods and communities.
  1. Homeowners join up to 41 percent more civic and/or nonprofessional organizations than renters, such as the PTA or Scouts; vote in local elections 15 percent more often; enhance their neighborhoods with gardens 12 percent more often; attend church about 10 percent more often; and have a 3 percent greater chance of being interested in public affairs.
  1. 2007 Florida Association of Realtors® (FAR) President Nancy Riley says, “Florida Realtors know buying a home is a very personal investment – an investment in a family’s future. Although research shows it is the largest single investment most families make and helps to provide security for the future, owning a home isn’t just a financial investment. Ownership is about having a place to call home: a place where families build a future and become part of a community.”
  1. Over the past five years, the average homeowner has seen an increase of 50 percent in value, according to the National Association of Realtors® (NAR). Here in Florida, the statewide median home price has shown an increase of 52.5 percent from November 2002 to November 2007, according to FAR records. NAR housing industry analysts project that prices will rise about 2 percent next year, and in coming years, average home price appreciation should return to historical averages of around 6 percent.
  1. Florida is a great place to live and work. According to Enterprise Florida Inc., the Sunshine State has one of the nation’s strongest tourism industries; it is fourth in the nation in high-tech jobs; is the third largest exporter of high-tech goods and services; and is ranked as one of the best states in the nation to be an entrepreneur.
  1. Orlando-based economist Dr. Hank Fishkind recently said in several media reports he believes that “the worst of the so-called housing crisis has probably been mitigated by the actions of the Fed. Recovery will take a while, but it has begun.” Another economist, Dr. Lawrence Yun, chief economist with the National Association of Realtors, predicts that the Florida housing market will get stronger in 2008 and will be booming again by 2010.
  1. And let’s not forget the things that brought people to Florida in the first place, and will continue to attract them – beautiful beaches, fabulous weather and a friendly business climate, with no state income tax. It’s no wonder that Florida’s combination of temperate climate, outstanding recreational amenities and economic opportunity has consistently put us at the top of Harris Poll’s “most desirable places to live” survey.

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