Headlines – Week of June 12, 2011
June 21, 2011
Top picks for international buyers
Cape Coral, Fort Myers and Naples among the top ten locations
According to a blog post at the housing web site Trulia.com, ten out of the 24 most popular American cities for international buyers are in Florida as international buyers take advantage of real estate bargains in the United States. Last year, international buyers reportedly spent $41 billion on purchasing homes in the U.S.
Last year, Europeans, Canadians and Brazilians reportedly spent about $13 billion on homes in Florida alone.
The most popular American cities were Los Angeles and New York, which were among the top five most-searched cities for visitors from the United Kingdom, Australia, France, Germany, Brazil, Italy, Russia, the Netherlands, Sweden, China and India.
Here are the most popular Florida cities for international buyers in order of demand:
1. Cape Coral, Fla.
3. Fort Lauderdale, Fla.
4. Naples, Fla.
5. Fort Myers, Fla.
6. Miami Beach, Fla.
7. Kissimmee, Fla.
8. Orlando, Fla.
9. Jacksonville, Fla.
10. Tampa, Fla.
Harvard Report: Housing Shortage Likely Coming
According to the annual “State of the Nation’s Housing” report by Harvard University’s Joint Center for Housing Studies, within the next decade, 16 million new housing units will be needed to meet population growth and shifting demands.
That means household growth, which has dropped drastically in recent years, will need to greatly reverse its trend to meet the forecasted spike in demand. From 2007-2010, household growth averaged about 500,000 per year – less than half the 1.2 million annual pace averaged prior from 2000-2007.
According to the report, in order to absorb the current rate of foreclosed and distressed homes plaguing most markets, a more normal rate of household formation is critical,. However, normal household growth has stalled as young adults delayed homeownership and immigration has slowed.
As a result builders have drastically cut production of new homes and a turnaround in demand could quickly result in tighter markets. Over the longer term, the number of younger households is set to rise sharply, supporting growth in the population that fuels growth in both new renters and first-time buyers.
The report projects demand for 1 million new homes a year is needed to meet population growth in the coming decade. The report also predicts a surge in smaller homes, estimating that 3.8 million baby boomers will be looking to downsize their homes within the next decade. Immigration growth will also increase the need to replace existing homes, and demand for second homes will contribute to rising demand for housing units.
Researchers conclude at least 16 million new housing units will be needed over the next decade.
Seven Highest-Performing Major Housing Markets
According to Clear Capital’s latest monthly Home Data Index Market Report, several real estate markets are starting to show signs of improvement with home prices in the last quarter as the industry demonstrates more signs of stabilizing.
REO saturation rates have improved in the majority of the country’s largest markets. However, many areas are still battling year-over-year price declines. Clear Capital’s index reports that quarter-over-quarter home price declines were 2.3 percent in the latest quarter, which is less than half compared to the previous month.
Seven of the top 15 markets posted quarter-over-quarter property price gains in this month’s report, compared to none in last month’s, according to Clear Capital.
Here are the seven highest-performing major real estate markets.
- Washington, D.C.-Arlington, Va.-Alexandria, Va.
Quarter-to-quarter home price change: 4.5%
Year-to-year price changes (May 2010-May 2011): 4.9%
REO saturation: 17.5%
- St. Louis, Mo.
Quarter-to-quarter home price change: 2.2%
Year-to-year price changes: -11.4%
REO saturation: 35.3%
- Pittsburgh, Pa.
Quarter-to-quarter home price change: 1.6%
Year-to-year price changes: 0.3%
REO saturation: 10.9%
- New York, N.Y.-Long Island, N.Y.-No. New Jersey, N.J.
Quarter-to-quarter home price change: 1.5%
Year-to-year price changes: 1.4%
REO saturation: 9.6%
- Virginia Beach, Va.-Norfolk, Va.-Newport News, Va.
Quarter-to-quarter home price change: 1.4%
Year-to-year price changes: -13.2%
REO saturation: 22.4%
- Miami-Ft. Lauderdale-Miami Beach, Fla.
Quarter-to-quarter home price change: 0.6%
Year-to-year price changes: -5.2%
REO saturation: 39.6%
- San Jose-Sunnyvale-Santa Clara, Calif.
Quarter-to-quarter home price change: 0.5%
Year-to-year price changes: -5%
REO saturation: 25%
The lowest-performing market for the fifth straight month was Detroit-Warren-Livonia, Mich., with a 13.2 percent decrease in quarter-over-quarter home price change and a 58 percent REO saturation rate.
Posted by Scott R. Lodde