Florida Real Estate News June 2018
Florida Real Estate News: June 2018 Compiled by Fast Florida House Sales
Whilst real estate prices in Florida are climbing, the gains are falling behind the US national average, could this be the peak? With many high-profile properties achieving sales above expectations, now could be a great time to cash-in on the value of your property, before the bubble bursts. “Fast Florida House Sales”, cash buyers of any home in Florida, have compiled the latest news relating to real estate in Florida:
Florida real estate market healthy but challenged reports Florida Trend
The Florida real estate industry is healthy, though several thorny challenges confront residential sales, one of the nation’s leading economists told a gathering of about 80 agents and brokers Wednesday morning. Lawrence Yun, chief economist and senior vice president of the National Association of Realtors, spoke at the 12th annual Global Conference. Yun said trend lines indicate there’s a decline in international real estate buyers in Florida. “We wonder if this is fear about a trade war,” he said. Also, fewer consumers feel now is a good time to buy a house. The competitive residential market is being met with caution, Yen noted. [Source: Sarasota Herald-Tribune]
Foreign buyers and Florida
On the tax reform law, “We’ll have to wait and see whether this impacts home buying in the future or not,” Yun said. But he echoed a sentiment expressed by many: The Florida market will be a “big beneficiary of net migration” from Americans fleeing such high-tax states as New York and New Jersey as the tax law chews into their income-tax deductions. “We’re already seeing that.”
Last year, foreign buyers bought $23.8 billion in Florida real estate, more than double the figure from a decade ago. Seventy-three percent of those 2017 purchases were all-cash, Yun said, because wealthy international buyers don’t need mortgages. The foreign property purchases account for 11 percent of the value but only 6 percent of the sales volume, indicating those purchases were primarily high-end homes.
The top international buyers of U.S. real estate last year came, in order, from China, Canada, Mexico, India and the United Kingdom.
Although most of the Chinese purchases were in California, “the Florida market certainly has a larger share of foreign investors,” Yun said. “We have greater contact with people of other nationalities.”
The state, he said, is also “raising the confidence of foreign buyers” with safe property investments that are bound to appreciate.
At the same time, the trend lines indicate a decline in international buyers. “We wonder if this is fear about a trade war,” Yun said. The potential outcomes of higher tariffs on Chinese imports and the impacts of NAFTA’s demise on Mexico could boomerang on the U.S. and cause a global recession, he said.
National economic picture
During the first quarter of 2018, a rising number of households expressed more confidence in the economy and their financial position, but only 68 percent of consumers felt now is a good time to buy a house, the lowest percentage in two years. That’s according to NAR’s first-quarter Housing Opportunities and Market Experience survey.
Income, debt and anxiety are stopping some from buying.
“They need to believe things will turn out well after buying,” Yun said. The “very, very competitive” nature of the current residential market — with inventory down 13 percent, prices up 9 percent and mortgage rates expected to rise again — is being met with caution. “They’re feeling rushed to buy.”
From 2011 to 2017, income grew by 15 percent but housing prices surged by 48 percent, Yun said. “This is a big concern for renters,” he said, and an obstacle to converting to home ownership.
Consumers should not wait for mortgage rates, at 4.5 percent now, to fall, not with the Federal Reserve forecast to raise its benchmark interest rate two more times this year and three in 2019.
“Two years from now, mortgage rates could be 6 percent,” Yun said. “Don’t take the current rates for granted.”
While national existing home sales rose last year to their highest level in 11 years, the pending home sales index has stalled and inventory continues to fall, he said. “Builders have been under-producing,” Yun said, and the annual increases in construction since the subprime disaster have been “very minimal.”
Florida home price gains fall short of US average
Storms and lack of properties for sale are the major factors
Home prices rose 5.8 percent in Florida over the year in April, slower than the national average reports the Herald Tribune
But if the state can be hurricane-free in 2018, prices should rise faster than the U.S. over the next 12 months, data provider CoreLogic reported.
Home prices, including distressed sales, increased at a 6.9 percent clip nationwide in the past year, CoreLogic said. U.S. prices are forecast to gain 5.3 percent by April 2019.
But home prices in Florida are projected to surge 7.5 percent by April 2019, as long as another natural disaster doesn’t hinder growth.
“Florida continues to show price resiliency after Hurricane Irma in 2017,” said Frank Martell, president/CEO at CoreLogic. “Despite the impact of the hurricane, prices were up 5.8 percent across the state compared to a year ago. CoreLogic data projects continued gains to home prices in Florida for the remainder of 2018.
“However, gains could be erased if a significant storm makes landfall again,” he said.
Locally, existing single-family homes prices rose 6 percent, to a median $299,000 in Sarasota-Manatee, the Florida Realtors trade group reported earlier. Prices in Charlotte County jumped 17.0 percent, to $227,500.
Condo re-sale prices were up 16.2 percent to a median $227,500 in Sarasota-Manatee, and up 4.4 percent to $165,000 in Charlotte, Florida Realtors said.
A low stock of homes on the market continues to pressure prices. In Sarasota-Manatee, for example, the inventory of for-sale single-family homes was down nearly 11 percent in April over the year.
“The best antidote for rising home prices is additional supply,” said Frank Nothaft, chief economist at CoreLogic. “New construction has failed to keep up with and meet new housing growth or replace existing inventory. More construction of for-sale and rental housing will alleviate housing cost pressures.”
Home prices increased in all 50 states in April, led by Washington, at 12.8 percent.
TOP 10 CELEBRITY REAL ESTATE NEWS – SHAKIRA’S FLORIDA CONTEMPORARY HOME
POMPANO BEACH, Fla./ June 10, 2018 (STLRealEstate.News)
Never a dull moment for the pop superstar and TV’s “The Voice” judge, Shakira. Seen in Miami in March – possibly checking out the chic renovation plan on her Miami Beach residence, back to Spain which she considers her home base, and two days after putting her Miami Beach estate on the market, off to Hamburg, Germany to kick off her El Dorado world tour, family and team in tow. In August she will bring the tour to America – Chicago the first stop.
Shakira lives in Barcelona with her partner, Spanish soccer star Gerard Piqué and their two sons. Now 41, she has received, three Grammy Awards, 13 Latin Grammy Awards, seven Billboard Music Awards, has been Golden Globe nominated and has a star on the Hollywood Walk of Fame. She is also heavily involved in philanthropic activities through charity work and charity concerts. In addition to her charity work and being a mom, Shakira was a coach on NBC’s “The Voice” for the 2012 and 2014 seasons.
As with many young Latin stars, Shakira moved to Miami in the late 1990s, buying a house in 2001 at the edge of Biscayne Bay for $3.38 million. Making Spain her home for many years, she recently did an extensive modern update to her Miami Beach waterfront home and has put it on the market.
The 8,708-square-foot home overlooks Miami’s waterfront skyline and lights of the Julia Tuttle Causeway with more than 100 feet of water frontage, a private dock and ocean access at Government Cut or Haulover Inlet. The six-bedroom, eight-bath, two-story home sits on a half-acre lot only two blocks from the Miami Golf Club greens and a few more blocks to the Atlantic Ocean and Miami Beach’s multi-million-dollar condos.
Located on a street where many celebrities including Matt Damon, Cher, Billy Joel and Jennifer Lopez once lived, Shakira has completely renovated the two-story house into a Zen oasis with light hardwood floors throughout, an updated kitchen with high-end appliances and home gym where speciality flooring for dancing was added when she purchased the property. It has a fireplace for the rare chilly night and an attached two-car garage framed by crimson bougainvillea. Rooms are large and airy and filled with sunlight and there is a low profile “hookah” lounge area in the entertainment wing. After purchasing the home, Shakira added a wooden deck around the pool area with open-air dining pavilion with built-in bar and an entire three-bedroom wing measuring 1,663 square feet.
Surrounded by tall privacy hedges and an iron entry gate, the property meets all the privacy requirements sought by celebrities.
Live Miami Beach-style on a street chosen by many celebrities in an estate being sold by Colombian super songstress, Shakira. Priced at $11.648 million. Listing agents are Antonio Mebarak and Ana Lourdes Martinez of Douglas Elliman Real Estate in Miami Beach.
Current State of the Southwest Florida Real Estate Market – WGCU News
According to the statewide organization Florida Realtors, Florida’s housing market reported higher median prices again in the first quarter of 2018 compared to the same quarter last year. The median sales price of single family existing homes rose 9.7 percent. The statewide median price for condos and townhomes rose 7.8 percent over last year. While prices of existing homes continue to increase, so does the rate of new home building, especially here in southwest Florida. New communities continue to spring up, and new commercial development is on the rise.
South Florida’s Real Estate Market Shows No Sign of Let-up
South Florida’s commercial real estate markets have enjoyed a strong run for nearly a decade. Although it is rather late in a typical market cycle, there is little sign of a let-up in sales, leasing, investment and lending activity according to Lexology.
Why has the region seen such a prolonged expansion? First of all, metropolitan Miami is one of a handful of large U.S. cities that continues to grow in population. A steady increase in residents, combined with millions of visitors every year, offers an appealing demographic foundation for commercial real estate players.
A second reason is the continued availability of both debt and equity financing. In the global low-rate environment, real estate assets offer an appealing combination of security, income and the potential for appreciation for U.S. and international investors.
In general, U.S. lenders have learned from their past excesses and taken a more disciplined approach to financing real estate investments. Commercial banks have been active in providing fixed- and floating-rate loans, although most are more interested in financing stabilized properties than making construction loans.
For new developments, a number of debt funds with readily available capital have been active participants in the construction sector. While their rates might be somewhat higher than a commercial bank, the benefit of obtaining financing on a non-recourse basis is attractive to many developers. In addition, mezzanine funding is also available to bridge gaps between the construction financing and the developer equity.
While financing real estate investments is very achievable in today’s market, the overall demand for real estate assets has pushed prices upward and there is often a sizeable gap in the bid/ask for purchase price. That may limit the number of transactions in the coming year.
As of mid-year, industrial and logistics properties are leading the commercial sector in terms of attracting institutional capital. Even older industrial properties in close-in locations are in demand for repositioning opportunities to provide “last mile” inventory storage and delivery for online retailing companies.
On the other hand, the high cost of land and construction is limiting new office development in Brickell, downtown Miami and Coral Gables. That has made existing Class A buildings more appealing to investors seeking high-quality core assets. For office developers, there may be opportunities for smaller-scale projects in suburban locations or northward along the coast in Fort Lauderdale and West Palm Beach.
Barring an external shock, South Florida’s commercial real estate markets are well positioned for continued strong performance in 2019. Sound fundamentals and the region’s growing economy will continue to attract investment capital from around the world.
What are Florida’s most affordable cities for housing?
If you choose carefully, the greater Tampa Bay area has some of the state’s most affordable places to own a home writes Graham Brink for the Tampa Bay Times.
In fact, six of the top 10 locales are within about 50 miles of downtown Tampa.
Fort Meade, tucked in the southwestern part of Polk County, regained its No. 1 spot, after placing third a year earlier, according to an analysis from SmartAsset, a financial technology company.
Brooksville came in third, Beacon Square (near Elfers in Pasco County) ranked fifth, followed by Bayshore Gardens across the Sunshine Skyway in Manatee County. Combee Settlement and Crystal Lake, both near Lakeland, came seventh and ninth respectively.
Rounding out the top 10 were West Vero Corridor (#2), Lakewood Park (#4), West Pensacola (#8) and North Fort Myers (#10).
SmartAsset’s number crunchers looked at average annual mortgage payments, property taxes and insurance, and average closing costs over a five-year period in 6,136 American cities with at least 5,000 people. That included 450 locations in Florida. They then compared those costs to the median household income in each location to determine the affordability.
Fort Meade, which ranked 25th in the country, made up for its so-so median income ($43,179) with low insurance costs and property taxes and the state’s 18th lowest annual mortgage payment.
Brooksville, perennially in SmartAsset’s top 10 in Florida, had the state’s lowest annual mortgage payment combined with the lowest insurance costs.
As for the area’s three biggest cities, St. Petersburg (#192) was the most affordable thanks largely to a slightly higher median income (see chart below) and lower closing costs. Clearwater ranked 297th. Tampa was 305th.
Naples, despite a robust $84,830 in median income, came last in the state and 6,105th in the country. It was brought down by high mortgage, insurance and closing costs. Other south Florida cities dominated the bottom end of the rankings, including Miami Beach and Key Biscayne.
Nationally, Texas had the top two most affordable places, Pecos and Kermit, two small towns about 50 miles apart in the western part of the state. Texas had a total of nine cities ranked in the top 25. Pennsylvania and Indiana had three each. Georgia and Arizona had two.
Kaser, N.Y., part of the town of Ramapo, was the least affordable place in the country, scoring a zero. It earned the honor based largely on an exceptionally low median household income ($18,538) and relatively high average mortgage payments, insurance costs and property taxes.
Stanford, Calif., was only slightly better scoring a 1.2. Rounding out the country’s bottom five: New Square, N.Y., Isla Vista, Calif., and Boone, N.C., which had the lowest median household income ($14,725) of any of the places in the survey.
Florida’s most affordable to least affordable
Rank Place Index score
1. Fort Meade 60.79
2. West Vero Corridor 57.07
3. Brooksville 56.35
4. Lakewood Park 52.24
5. Beacon Square (Pasco) 51.98
…
42. New Port Richey 41.6
81. Largo 36.4
84. Riverview 36
104. Brandon 34.7
192. St. Petersburg 29.8
252. Bradenton 27.4
279. Safety Harbor
297. Clearwater 24.5
305. Tampa 24.1
314. Inverness 23.7
370. Sarasota 20.3
410. St. Pete Beach 16.4
…
446. Lauderdale-by-the-Sea 9.8
447. Miami 9.8
448. Key Biscayne 9.2
449. Miami Beach 8.8
450. Naples 8.6
Fast Florida House Sales
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