Florida News

Careful…Don’t Get Caught in the Rental Trap!


[image: Imágenes integradas 1]There are many benefits to homeownership. One
of the top benefits is being able to protect yourself from rising rents by
locking in your housing cost for the life of your mortgage.

*Don’t Become Trapped *

Jonathan Smoke, Chief Economist at realtor.com, reported on what he calls a
“Rental Affordability Crisis.” He warns that,

“Low rental vacancies and a lack of new rental construction are pushing up
rents, and we expect that they’ll outpace home price appreciation in the
year ahead.”

In the Joint Center for Housing Studies at Harvard University’s 2016 State
of the Nation’s Housing Report, they revealed that “The number of
cost-burdened households rose to 21.3 million. Even more troubling, the
number with severe burdens (paying more than 50% of income for housing)
jumped to a record 11.4 million.” These households struggle to save for a
rainy day and pay other bills, such as food and healthcare.

*It’s Cheaper to Buy than Rent *

In Smoke’s article, he went on to say,

“Housing is central to the health and well-being of our country and our
local communities. In addition, this (rental affordability) crisis
threatens the future value of owned housing, as the burdensome level of
rents will trap more aspiring owners into a vicious financial cycle in
which they cannot save and build a solid credit record to eventually buy a
home.”

“While more than 85% of markets have burdensome rents today, it’s
perplexing that in more than 75% of the counties across the country, it is
actually cheaper to buy than rent a home. So why aren’t those unhappy
renters choosing to buy?”

Know Your Options

Perhaps you have already saved enough to buy your first home. HousingWire
reported that analysts at Nomura believe:

“It’s not that Millennials and other potential homebuyers aren’t qualified
in terms of their credit scores or in how much they have saved for their
down payment.

It’s that they think they’re not qualified or they think that they don’t
have a big enough down payment.” (emphasis added)

Many first-time homebuyers who believe that they need a large down payment
may be holding themselves back from their dream home. In many areas of the
country, a first-time home buyer can save for a 3% down payment in less
than two years. You may have already saved enough!

*Bottom Line*

Don’t get caught in the trap so many renters are currently in. If you are
ready and willing to buy a home, find out if you are able. Let’s get
together to determine if you can qualify for a mortgage now!

15,014 Homes Sold Yesterday… Did Yours?


There are some homeowners that have been waiting for months to get a price
they hoped for when they originally listed their house for sale. The only
thing they might want to consider is… If it hasn’t sold yet, maybe it’s
not priced properly.

After all, 15,014 houses sold yesterday, 15,014 will sell today and
15,014 will sell tomorrow.

*15,014!*

That is the average number of homes that sell each and every day in this
country, according to the *National Association of Realtors’ (NAR) *
latest Existing
Home Sales Report. NAR reported that sales are at an annual rate of 5.48
million. Divide that number by 365 (days in a year) and we can see that, on
average, over 15,014 homes sell every day.

The report from NAR also revealed that there is currently only a 3.8-month
supply of inventory available for sale*,* *(6-months inventory is
considered **‘**historically normal**’**).*

This means that there are not enough homes available for sale to satisfy
the buyers who are out in the market now in record numbers.

*Bottom Line*

We realize that you want to get the fair market value for your home.
However, if it hasn’t sold in today’s active real estate market, perhaps
you should reconsider your current asking price.

How to Get the Most Money When Selling Your Home


Every homeowner wants to make sure they get the best price when selling
their home. But how do you guarantee that you receive maximum value for
your house? Here are two keys to ensuring you get the highest price
possible.

*1. Price it a LITTLE LOW *

This may seem counterintuitive. However, let’s look at this concept for a
moment. Many homeowners think that pricing their home a little OVER market
value will leave them room for negotiation. In reality, this just
dramatically lessens the demand for their house *(see chart below).*

*[image: Imágenes integradas 2]*

Instead of the seller trying to ‘win’ the negotiation with one buyer, they
should price it so that demand for the home is maximized. By doing this, the
*seller* will not be fighting with a *buyer* over the price, but will
instead have *multiple buyers* fighting with *each other* over the house.

*Realtor.com* gives this advice:

*“Aim to price your property at or just slightly below the going rate.
Today’s buyers are highly informed, so if they sense they’re getting a
deal, they’re likely to bid up a property that’s slightly underpriced,
especially in areas with low inventory.”*
*2. Use a Real Estate Professional*

This, too, may seem counterintuitive, as the seller likely believes that he
or she will net more money if they don’t have to pay a real estate
commission. With that being said, studies have shown that homes typically
sell for more money when handled by a real estate professional.

Research

posted
by the *National Association of Realtors* revealed that:

*“The median selling price for all FSBO homes was $185,000 last year. When
the buyer knew the seller in FSBO sales, the number sinks to the median
selling price of $163,800. However, homes that were sold with the
assistance of an agent had a median selling price of $245,000 – nearly
$60,000 more for the typical home sale.”*
*Bottom Line*

Price your house at or slightly below the current market value and hire a
professional. This will guarantee that you maximize the price you get for
your house.

The Impact of Homeownership on Family Health


​​

The National Association of Realtors recently released a study titled
‘Social Benefits of Homeownership and Stable Housing.’ The study confirmed
a long-standing belief of most Americans:

*“Owning a home embodies the promise of individual autonomy and is the
aspiration of most American households. Homeownership allows households to
accumulate wealth and social status, and is the basis for a number of
positive social, economic, family and civic outcomes.”*

Today, we want to cover the section of the report that quoted several
studies concentrating on the impact homeownership has on the health of
family members. Here are some of the major findings on this issue revealed
in the report:

– There is a strong positive relationship between living in poor housing
and a range of health problems, including respiratory conditions such as
asthma, exposure to toxic substances, injuries and mental health. Homes of
owners are generally in better condition than those of renters.
– Findings reveal that increases in housing wealth were associated with
better health outcomes for homeowners.
– Low-income people who recently became homeowners reported higher life
satisfaction, higher self-esteem, and higher perceived control over their
lives.
– Homeowners report higher self-esteem and happiness than renters. For
example, homeowners are more likely to believe that they can do things as
well as anyone else, and they report higher self-ratings on their physical
health even after controlling for age and socioeconomic factors.
– Renters who become homeowners not only experience a significant
increase in housing satisfaction but also obtain a higher satisfaction even
in the same home in which they resided as renters.
– Social mobility variables, such as the family financial situation and
housing tenure during childhood and adulthood, impacted one’s self-rated
health.
– Homeowners have a significant health advantage over renters, on
average. Homeowners are 2.5 percent more likely to have good health. When
adjusting for an array of demographic, socioeconomic, and housing–related
characteristics, the homeowner advantage is even larger at 3.1 percent.

*Bottom Line*

People often talk about the financial benefits of homeownership. As we can
see, there are also social benefits of owning your own home.​

3 Questions to Ask If You Want to Buy Your Dream Home


If you are debating purchasing a home right now, you are probably getting a
lot of advice. Though your friends and family will have your best interest
at heart, they may not be fully aware of your needs and what is currently
happening in the real estate market.

Ask yourself the following 3 questions to help determine if now is a good
time for you to buy in today’s market.

*1. Why am I buying a home in the first place? *

This is truly the most important question to answer. Forget the finances
for a minute. Why did you even begin to consider purchasing a home? For
most, the reason has nothing to do with money.

For example, a survey by Braun showed that over 75% of parents say “their
child’s education is an important part of the search for a new home.”

This survey supports a study by the Joint Center for Housing Studies at
Harvard University which revealed that the top four reasons Americans buy a
home have nothing to do with money. They are:

· A good place to raise children and for them to get a good
education

· A place where you and your family feel safe

· More space for you and your family

· Control of that space

What does owning a home mean to you? What non-financial benefits will you
and your family gain from owning a home? The answer to that question should
be the biggest reason you decide to purchase or not.

*2. Where are home values headed?*

According to the latest Existing Home Sales Report from the National
Association of Realtors (NAR), the median price of homes sold in December
(the latest data available) was $232,200, up 4.0% from last year. This
increase also marks the 58th consecutive month with year-over-year gains.

If we look at the numbers year over year, CoreLogic forecasted a rise by
4.7% from December 2016 to December 2017. On a home that costs $250,000
today, that same home will cost you an additional $11,750 if you wait until
next year.

What does that mean to you?

Simply put, with prices increasing each month, it might cost you more if
you wait until next year to buy. Your down payment will also need to be
higher in order to account for the higher price of the home you wish to buy.

*3. Where are mortgage interest rates headed?*

A buyer must be concerned about more than just prices. The ‘long-term cost’
of a home can be dramatically impacted by even a small increase in mortgage
rates.

The Mortgage Bankers Association (MBA), the National Association of
Realtors, and Fannie Mae have all projected that mortgage interest rates
will increase over the next twelve months.

*Bottom Line*

Only you and your family will know for certain if now is the right time to
purchase a home. Answering these questions will help you make that decision.

Buying a Home is More Affordable Than Renting in 66% of US Counties

According to ATTOM Data Solutions’ 2017 Rental Affordability Report, buying a home is more
affordable than renting in 354 of the 540 U.S. counties they analyzed.

The report found that “making monthly house payments on a
median-priced home — including mortgage, property taxes and insurance — is more
affordable than the fair market rent on a three-bedroom property in 354 of the
540 counties analyzed in the report (66 percent).”

For the report, ATTOM Data Solutions compared recently
released fair market rent data from the Department of Housing and Urban
Development with reported income amounts from the Department
of Labor and Statistics to determine the percentage of income that a
family would have to spend on their monthly housing cost (rent or mortgage
payments).

Rents have been surging faster than home prices in about 37% of the markets
measured. Daren Blomquist, Senior Vice President of ATTOM Data
Solutions warns that rising interest rates could be the tipping point
of affordability:

“While
buying continues to be more affordable than renting in the majority of U.S.
markets, that equation could change quickly if mortgage rates keep rising in
2017. In that scenario, renters who have not yet made the leap to homeownership
will find it even more difficult to make that leap this year.”

Bottom Line

Rents will continue to rise and mortgage interest rates are still at
historic lows. Before you sign or renew your next lease, meet with a local
professional who can help you determine if you are able to buy a home of your
own and lock in your monthly housing expense.

Prices still rising in Miami at beginning of 2016

Prices in Miami persisted to rise in January as existing single family houses and condominiums sold just about record fee, in line with the modern-day data from actual estate retailers.

The median income rate for single household existing houses rose thirteen.7% 12 months on yr in January from $237,500 to $270,000, according to the figures from the Miami association of Realtors, however single family home costs remain at 2004 stages regardless of 4 years of increases.

The median earnings cost for present condominiums elevated 8.8% to $205,000 from $188,500 a yr ago. Miami-Dade County existing condo costs have risen in 55 of the final fifty six months, a period encompassing greater than four and a 1/2 years.

‘On the heels of a historic 2015 that noticed Miami actual property register its most-ever single-household dwelling revenue and its 0.33-most total residential transactions, Miami homes stay in high demand,’ stated Mark Sadek, 2016 chairman of the association’s board.

‘houses are selling for bigger costs and near asking. While whole residential income lowered in January, single loved ones house and apartment income stay regular with historic averages,’ he brought.

Complete existing Miami-Dade County residential earnings, which posted a document yr in 2013 and close document years in 2014 and 2015, decreased 12.1% from 2,043 earnings in January 2015 to 1,796 final month. January 2016’s complete revenue are in the variety of Miami income throughout the past 5 Januarys.

Miami-Dade County single family dwelling transactions had been 14.Four% cut down yr on year in January, from 963 to 824. Present residence revenue declined 10% in January 2016, from 1,080 to 972.

‘strong income are major for a healthful residential actual estate market, but it is not sustainable to set a brand new all-time income file each year. Miami-Dade County’s five years of report revenue were specific in the united states actual property market. It’s anticipated Miami will proceed in a income variety constant with a powerful market,’ explained Teresa King Kinney, the association’s chief government officer.

Miami-Dade has endured to expertise a colossal year on yr cut back in distressed revenue. Multiplied competition from new condominium building has also performed a function within the slash total residential sales. Best 22% of all closed residential earnings in Miami had been distressed last month, including REO (financial institution-owned houses) and short revenue, in comparison with 34.9% in January 2015.

Brief income and REOs accounted for 4.Four% and 15.7% respectively, of complete Miami revenue in January. Short sale transactions dropped 50% 12 months on 12 months whilst REOs fell forty two.2%.

Single family home income improved 18.Three% year on year in January within the $250,000 to $400,000 sector, developing from 241 to 285. This sector represented about 34.6% of all whole single family residence revenue in January 2016. Present condos priced at $150,000 to $300,000 range noticed a 25.1% upward push in January income, growing from 299 to 374.

The median days in the marketplace for all Miami properties accelerated in January. New loan disclosure rules, often called the TILA-RESPA built-in Disclosures (TRID), could be enjoying a position. The ordinary time to close a mortgage nationally has grown frequently since TRID went into result, hiking from forty six days in October to forty nine days in November and December and to 50 days in January.

In Miami, the median quantity of days in the marketplace for single loved ones houses expanded 41.2% to seventy two days in January 2016 from 51 days in January 2015. The median quantity of days in the marketplace for Miami condominiums was 89 days, a 34.Eight% increase from sixty six days in January 2015.

Statewide closed sales of present single household houses totalled 16,529 last month, up 2.7% from January 2015, in step with Florida Realtors. Florida’s apartment sales totalled 6,942 last month, down 4.Eight% in comparison with January 2015.

The statewide median income rate for single family existing properties final month was once $199,000, up 13.7% from the earlier year and the statewide median rate for townhouse-apartment residences was once $152,000, up 10.9% over the year in the past figure.

Miami’s cash consumers signify twice the country wide common. In January 2016, cash transactions comprised fifty two.6% of Miami’s whole closed income, which continues to be double the national average. Cash transactions represented fifty seven.Three% of total Miami offers in January 2015. Miami’s excessive percentage of money sales displays South Florida’s ability to draw a various number of worldwide house shoppers, who tend to buy homes in all money.

Condominiums comprise a tremendous component to Miami’s money purchases as sixty five.7% of rental closings were made in cash in January in comparison with 37.1% of single household house income.

At the present income p.C., there’s a 5.5 month deliver of Miami single family homes, a scale down of three.9% from January 2015 and continues to be a retailers’ market. There is a 10.2 month give of residence stock, a yr on year expand of 16.8% and continues to be a patrons’ market. A balanced market between customers and marketers offers between six and 9 months’ provide of stock.

Whole energetic listings at the end of January increased eight.3% year on yr, from 18,315 to 19,826. Active listings stay about 60% under 2008 phases when sales bottomed.

New listings of Miami single-loved ones properties decreased 5.8% from 2,356 in January of last 12 months to 2,220 final month. New listings of condominiums improved 7% to three,414 last month, compared to 3,190 throughout the same time interval in 2014.

Florida is most popular place in the US for overseas buyers

Florida remains the top State in the USA for overseas buyers with Miami one of the most standard locations for overseas actual estate investors.

International actual estate buyers made up 36% of sales in Miami and south Florida accounting for transactions valued at $6.1 billion, in line with the 2015 global customer document from the Miami organization of Realtor and the countrywide organization of Realtors.

The annual survey, which involves data for Miami-Dade, Broward has this year improved to incorporate Palm beach and Martin counties, and ranks countries of starting place and highlights key characteristics of foreign customers.

Florida remains the highest for global buyers with 21% of all international purchases in the USA and Miami and fort Lauderdale account for 50% of foreign sales, even as the data also shows that there remains to be extra international consumers in Miami than within the leisure of the country.

The quantity of estate agent participants in Miami working with global shoppers extended four elements to 74% in comparison with the prior yr more than double the country wide figure of 35%.

‘Miami participants have unparalleled entry to overseas shoppers compared to the rest of the nation,’ stated Mark Sadek, 2016 chairman of the board of the Miami association of Realtors.

‘Miami and south Florida appeal to foreign customers not like every other US market and increasingly from a extra numerous workforce of international locations,’ he added.

In phrases of greenback quantity of earnings in Miami some seventy eight.9% of worldwide sales have been in Miami-Dade County, 18% in Broward, 2.7% in Palm seaside and 0.Three% in Martin. Unit earnings accounted for 22% of whole income in south Florida.

The top five countries or foundation for customers in south Florida were Venezuela, Brazil, Argentina, Colombia, and Canada, accounting for 62% of earnings. Different high international locations included Mexico, France and Italy, Ecuador and Spain.

The highest five countries of beginning for these purchasing residences simply in Miami-Dade had been Venezuela, Brazil, Argentina, Colombia, Italy, Mexico, Canada, Ecuador, France, and the Dominican Republic.

In Broward County it’s consumers from Canada and Venezuela that topped the list followed via Colombia, Argentina, Brazil, India and Russia even as in Palm seaside County it is Canada and Brazil and Martin County China and Canada.

The study also indicates that overseas shoppers spend extra on houses than domestic consumers and paid $590,000 on typical compared to locals spending $329,869. They also most of the time pay money with seventy five% doing so.

International patrons also pick condominiums with 52% picking this kind of property and 61% purchase in an city subject. They are on the whole buying for a vacation and as an funding.