Tampa Bay Residential Condominium Market

I have presented an overview of the national, state and Pinellas County residential market.  I have relied on statistics provided by NAR (National Association of Realtors), FAR (Florida Association of Realtors), and GTAR (Greater Tampa Area of Realtors).

National and Regional Condominium Market

According to NAR, existing Condominium sales have decreased slightly with projected annual sales of 620,000 units in May 2018 versus 640,000 units in May 2017.  Statistics in the South have increased slightly with annual sales in May 2018 of 290,000 versus 271,000 in May 2017.As of May 2018 there was a 3.9 month supply of inventory available, which was down from a 4.2 month supply of inventory available from the previous year, nationwide.

NAR Existing Condo

As illustrated on the following table, the median nationwide existing condominium price was $244,100 in May 2018, which is up 2.5% from a year ago.  The median price in the South was $189,300, which was down 1.0% from the previous year.

The average nationwide existing condominium price was $292,400 in May 2018, reflecting a 2.6% increase from a year ago.  The average price in the South was down 1.3% from the previous year.

NAR Sales Price Of Existing Condo

Florida Condominium Market

The following data was prepared by the Florida Association of Realtors (FAR).As can be seen in the following charts, sales of condominium units increased by 2.8% in 2018, compared with 2017 numbers.  Sales volumes have increased each of the past five years. In the First quarter of 2018, there were 27,088 sales, an increase of 2.8% over the First Quarter of 2017 figures.

FAR CLOSED SALES CHART

FAR Median Sales Price

STATE OF FLORIDA HISTORICAL CLOSED SALES FIGURES

FAR CLOSED SALES CHART

Along with increases in the number of sales, both the median and average sales pricing has also increased in 2018, up 7.8% and 10.4% from 2017 figures.  Both the median and average sales pricing in Florida has continued to increase during the first quarter of 2018.

STATE OF FLORIDA HISTORICAL AVERAGE SALES PRICE FIGURES

FAR Average Sales Price

Tampa Bay Condominium Market           

The following data was prepared by the Greater Tampa Association of Realtors (GTAR).  As can be seen in the following charts, sales of condominium units decreased in the first quarter of 2018 over the first quarter of 2017.

Tampa Bay Condo Market Closed Sales

TAMPA AREA CLOSED SALES FIGURES

Tampa Area Closed Sales Figures

Home pricing has continued to increase, with a median sales price in the First Quarter of 2018 at $154,000, representing a 10.0% increase from First Quarter of 2017.

TAMPA AREA MEDIAN SALES PRICE FIGURES

Tampa area median sales price figures

CONCLUSION

The Tampa Bay MSA area experienced large growth in residential housing in recent years. Since the beginning of 2015, the market has shown increases in both pricing and sales figures.  Pinellas County is slowly becoming more built out with less vacant land available for development. Based upon the previous data, 2018 appears to be showing significant improvement over 2017 in terms of pricing and sales

In the Real Estate Market?

KW1784102f20KW.jpgYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link

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What’s the Cost of FHA Financing A Home?

loan_application_clip_art_24699FHA Loans are used to help more people buy homes.  More specifically, they are easier to qualify for.  They are available to borrowers with credit scores as low as 580 and only require a minimum 3.5% down payment (can be higher for lower credit scores) for buyers that are short on cash. FHA requires that the property be in good condition and are generally defined as follows:

  • Health and safety issues
  • Protecting the security of the property, and
  • Structural soundness of the property.

Although FHA-insured mortgages come at a higher cost than a conventional mortgage, this expense could be worthwhile for those who want to own a home and can’t qualify for a conventional mortgage.  FHA loans are insured by paying FHA mortgage insurance.  Unlike conventional loans that allow the seller to contribute 3% of the purchase price towards the buyers closing costs (should cover most, if not all, of the buyer’s closing costs), FHA buyers can ask up to 6% in closing costs.  The main reason for the higher closing cost is the FHA Mortgage Insurance, which is an upfront premium of 1.75% of the loan amount (Could be paid with seller paid closing costs).  In addition, the borrower is going to pay an annual premium (typically ranges between 0.45% and 1.05% of the loan depending on the loan amount).

FHA Loan Example

Here is a real world example of $234,000 home purchase that I recently sold with a FHA Loan:

Loan Payment
Here are the following costs associated with the FHA loan:
  • The upfront premium of 1.75% of the loan amount (in this case, the amount is $229,761) is $3,951.68.
  • The monthly FHA-insurance premium is $158.83 per month, or $1,905.96 annually (or 0.83% of the loan amount).

In this case, the closing costs were $12,367.45 or about 5.29% of the purchase price. Although the seller provided a seller  credit for a portion of the closing costs, the purchaser still had to come out-of-pocket for closing costs (i.e. escrows for both homeowner’s insurance and property taxes, HOA assessments, etc.).   It should be noted that the borrower applied the 3.5% minimum down payment (or $8,190) and prepaid the for the appraisal.

In the Real Estate Market?

KW1784102f20KW.jpgYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Keller Williams Realty a.t 2119 W Brandon Blvd, Brandon, Florida 33511).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Lakeland or as far south as Sarasota.  The Keller Williams offices of  ”Suburban Tampa” include the offices in Brandon, Plant City, Fishhawk Ranch, and our newest office in Valrico.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link

2017 Real Estate Market Update

National and Regional Single Family Market

According to NAR, existing single family homes sales have increased with projected annual sales of 5,810,000 units in November 2017 annually 2017 versus 5,600,000 units in November 2016.  Statistics in the South have increased slightly with annual sales in November 2017 of 2,340,000 versus 2,250,000 in November 2016.

Nat Existing Sales

As of November 2017, there was a 3.4 month supply of inventory available, which was down 9.7% from the previous year, nationwide.

National Sales Prices of Existing Homes

Meanwhile, the median nationwide existing single family home price was $248,000 in November 2017, which is up 5.8% from a year ago.  The median price in the South was $216,200, which was up 4.8% from the previous year.

The average nationwide existing single family home price was $289,900 in November 2017, reflecting a 4.8% increase from a year ago.  The average price in the South was up 3.1% from the previous year.

Florida Single Family Market

We relied on the data prepared by the Florida Association of Realtors (FAR) to provide an overall health of the Florida single family market.  This data is as follows:

As can be seen in the following charts, sales of single family homes at its height (in recent years) increased in 2015, compared with 2014 numbers.  Sales in Second Quarter 2017 were 79,888 compared to 71,723 in Second Quarter 2016.  This represents a 3.7% increase. Recently, sales of single family homes have decreased slightly to only 67,811, but remain higher than the First Quarter of 2017 and Forth Quarter of 2016.

STATE OF FLORIDA HISTORICAL CLOSED SALES FIGURES

Fl Closed Sales

Although there was a slight decrease in the number of sales, pricing has increased in Third Quarter of 2017, up 6.7% from the same time period in 2016.

STATE OF FLORIDA MEDIAN SALES PRICE FIGURES

FL Med Sales Price 2

Per FAR figures, the overall median sales price continues to increase.  However, the last two quarters have remained the same at $240,000.

Tampa Bay Single Family Market

The following data from the Tampa-St. Petersburg-Clearwater MSA (includes Hernando, Pasco, Pinellas and Hillsborough Counties) was prepared by the Florida Association of  Realtors (FAR).  As can be seen in the following charts, median sales price of single family homes have increased in 2016 over 2015 to a high in the Third Quarter of 2017.

TAMPA AREA CLOSED SALES FIGURES

Tampa Closed Sales 

As can be seen in the above exhibit, sales volume dipped slightly to 12,198 single family homes from the Second Quarter of 2017.

TAMPA AREA MEDIAN SALES PRICE FIGURES

Tampa Median Sales 2

Pricing of homes has stabilized with a median sales price in the Third Quarter of 2017 of $225,000, representing a 9.8% increase from Third Quarter of 2016.

CONCLUSION

The Tampa Bay MSA area experienced large growth in residential housing during the residential “boom” period of the early to mid 2000’s. Since the beginning of 2013, the market has shown increases in both pricing and sales figures.  These figures continue to show improvement.  However, Hillsborough County is becoming more built out with less vacant land available for development.

In the Real Estate Market?

KW1784102f20KW.jpgYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Keller Williams Realty a.t 2119 W Brandon Blvd, Brandon, Florida 33511).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Lakeland or as far south as Sarasota.  The Keller Williams offices of  ”Suburban Tampa” include the offices in Brandon, Plant City, Fishhawk Ranch, and our newest office in Valrico.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link

Its Time to Sell and Buy your Dream Home with Your Stock Market Returns.

Historical S&P 500 Return

money-7According to Scott Snider with www.mellenmoney.com,  approximately 10% is the average return for the S&P 500 since its inception back in 1928.  Adjusted for inflation the “real return” is more like 7%.  Also worth noting that nearly half of the gains from the S&P 500 resulted from dividends.

2017 S&P 500 Return

The 2017 S&P 500 Return: Buy, Hold and Reinvest

The above quoted numbers are accurate if you bought the index at the opening price on January 3rd, 2017 and sold at the closing price on December 29, 2017. If you’d prefer the numbers buying at the December 30, 2016 closing price the return would be +19.42% and +21.83%, respectively.

Here are the index price returns:

Price Return From
Open Close Gain
Jan 3, 2017 Start 2251.57 2673.61 18.74%
Dec 30, 2016 End 2238.83 2673.61 19.42%

Following are the dividend reinvested returns:

Dividend Reinvested Return From
Open Close Gain
Jan 3, 2017 Start 4303.12 5212.76 21.14%
Dec 30, 2016 End 4278.66 5212.76 21.83%

Whichever set of return time-spans you prefer, the message is the same “If you invest in funds or stocks that pay a dividend you’ll have to choose what to do with the payouts. Simply quoting price returns without regard to real returns in cash form doesn’t reveal the true impact of an investment.”  Either way, 2017 was a very good year for stocks with gains doubling histroical returns.

Source on the 2017 S&P 500 Return Calculations

These numbers come from S&P Dow Jones Indices, the owner of the S&P 500 Index. They have both the classic S&P 500 price index as well as the dividend reinvested numbers from 1987 forward.

2018 S&P 500 Return Projections

According to UBS, the S&P 500 could surge 18 percent this year, which raised its 2018 target to 3,150, the highest on Wall Street, only three trading days into the year.  The Dow Jones industrial average already crossed 25,000

The S&P 500’s gain on the year will be 17.8 percent according to the new UBS target and based on the benchmark’s closing value of 2017. Taking into account the rally to start 2018, the index will rise 15.5 percent from here, according to the UBS target. The firm’s previous 2018 forecast for the S&P 500 was 2,900.

“We assume solid growth,” said Keith Parker, the chief U.S. equity strategist at UBS, in an appearance on CNBC’s “Halftime Report.” “We do expect a large pickup in buybacks and M&A.”

What’s Next?

What are you goingto do with all that money?  If you want to find your dream home in the Tampa Bay area (Florida), you should contact Alan!!!  I can help you find it.  I love helping people find that dream home.  Additionally , yKW1784102f20KW.jpgou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Keller Williams Realty a.t 2119 W Brandon Blvd, Brandon, Florida 33511).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Lakeland or as far south as Sarasota.  The Keller Williams offices of  ”Suburban Tampa” include the offices in Brandon, Plant City, Fishhawk Ranch, and our newest office in Valrico.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link

 

Helping sellers and their credit ratings.

IMG_7017

I’m in the real estate sales business to help people and not necessarily to make alot of money.  A home purchase is most likely one of the biggest investment that a typical person will make in their life.  I just closed a short sale yesterday for a client and he is on his way to reestablishing his credit (Rating).  According to Wikipedia “A short sale is a sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property. In this case, if all lien holders agree to accept less than the amount owed on the debt, a sale of the property can be accomplished.”  According to http://www.thebalance.com, their are both benefits for a short sale versus a foreclosure, which are as follows:

Short Sale Benefits

Here are a few benefits for doing a short sale:

  • You are in control of the sale, not the bank.
  • You may sleep better knowing who is buying your home.
  • You will spare yourself the social stigma of the “F” word, foreclosure.
  • Contrary to popular belief, you can often stay current on your payments and still apply for a short sale.
  • Your home sale will be handled like any other home sale, with respect and dignity.
  • Once the property is sold…Most banks report to the major consumer agencies as “account paid in full for less than the full balance”

Foreclosure Benefits

Here are a few benefits for choosing to do a foreclosure:

  • It’s an immediate solution.
  • You can stop making payments and live in the home until you get kicked out.
  • For some, it’s revenge; you might feel better initially telling the bank where to go when it refused your loan modification.
  • If something breaks or malfunctions, you don’t have to fix it.
  • You can leave the home behind and simply walk away.

In this case, the owner opted for the short sale and the bank will  report to the major consumer agencies as “account paid in full for less than the full balance”  Now he is on his way to reestablishing his credit.  More importantly, he does not have to worry about what is going to happen in the near future with court hearings, letters from the bank, phone calls, etc.

In the Real Estate Market?

KW1784102f20KW.jpgYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Keller Williams Realty a.t 2119 W Brandon Blvd, Brandon, Florida 33511).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Lakeland or as far south as Sarasota.  The Keller Williams offices of  ”Suburban Tampa” include the offices in Brandon, Plant City, Fishhawk Ranch, and our newest office in Valrico.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link

Great Deals on Lennar Spec Homes in South Hillsborough County, Florida

Stonegate at Ayersworth offers a variety of single family homes located in the Wimauma area just south of Tampa. The community offers numerous amenities including a basketball court, a playground, a swimming pool, picnic pavilion, and a community center. Future residents can choose from a variety of floor plan options with prices starting from the $200s with 3 to 6 bedrooms.   There are currently two spec homes (Providence Model) reduce by $6,200 and $8,200 from the base price of $227,490.  A “spec” home is a home that is not built with a specific home buyer in mind.  Most builders do not build a home until they have a home owner’s deposit.  But Lennar is not one of these builders.  Since Lennar is one of the largest home builders in Tampa Bay, they need to keep their contractors busy.  This could mean some real savings to home purchasers of spec homes.  The following is the front elevation of the Providence Model (a two story, 2,584 square foot, Four-Bedroom/Flex/Loft/Two-Bath home):

Providence Front Elevation

Providence Model

Little Harbor are two-story homes with a Cape Cod atmosphere in Tampa Bay and one of Lennar’s newest waterfront communities.  These homes will have direct access to Tampa Bay with the convenience of being able to accommodate own docks and boat lifts. Pricing from $514,990s – $669,990s.  There are currently several spec homes with steep discounts between $5,000 and $37,000 off base prices, including Amelia, Jupiter, and Sanibel Models.

Jupiter

Jupiter Model

Sanibel

Sanibel Model

This is just a sample of the spec homes available.  For information on more new homes in the Tampa Bay market, please contact me and let’s go shopping.

Front Elevations provided by Lennar Homes

KW1784102f20KW_thumb.jpgYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not?  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Keller Williams Realty a.t 2119 W Brandon Blvd, Brandon, Florida  33511).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Lakeland or as far south as Sarasota.  The Keller Williams offices of  ”Suburban Tampa” include the offices in Brandon, Plant City, Fishhawk Ranch, and our newest office in Valrico.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link

Tampa Bay Residential Real Estate Firms

kwKeller Williams Realty has three of the top 10 residential real estate firms in Tampa Bay Market ranked by Gross Sales Volume Closed in 2016.  The Tampa Bay market comprises Hernando, Hillsborough, Manatee, Pasco, Pinellas, Polk, and Sarasota Counties.   This list was supplied by individual companies through questionnaires.  Two of the Keller Williams’ offices exceeded the average number of listings and closings.  In fact, one office was ranked first in both closings and listings.  However, Keller Williams Realty lagged the average sales price with these firms focusing on selling higher end condominiums and water front properties versus Keller Williams focus on middle class purchasers.  The following exhibit displays the results of this survey:

Tampa Bay Residential

KW1784102f20KW_thumb.jpgYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not?  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Keller Williams Realty a.t 2119 W Brandon Blvd, Brandon, Florida  33511).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Lakeland or as far south as Sarasota.  The Keller Williams offices of  ”Suburban Tampa” include the offices in Brandon, Plant City, Fishhawk Ranch, and our newest office in Valrico.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link