Headlines – Week of July 22, 2012

August 3, 2012

Florida’s Home Appreciation Statistics Between 1998 and 2006

I recently read an article from local mortgage broker, John Calabria (BANCMORTGAGE CORP) in which he provided some interesting statistics regarding home appreciation in Florida during the boom times.

Between 1998 and 2006 real estate investors were just anticipating a boom in housing due to the coming maturity of the baby boomers.  This is what happened in Florida:

  • 1998 – the median price of a home was $86,100
  • January 2002 – the median price was $118,800
  • 2006 – the median price was $257,500
  • Price appreciation between 1998 and 2002 was 38.0%
  • Price appreciation between 2002 and 2006 was 116.8%
  • Total appreciation between the years of 1998 and 2006 was 199.1%

 

Case Shiller Index up a Record 2.2% in May

Finally some good news from Standard & Poor. 

Home prices rose sharply in May, cutting the year-over-year drop in prices to 0.7 percent from 1.4 percent in April, reported in the Case-Shiller Home Price Index.

Prices in the 20 cities surveyed rose 2.2 percent month-over-month, the strongest monthly gain since the 20-city index began in January 2000.

 

Miami, Minneapolis, Phoenix Emerge as New Target Markets for Foreign Investors

According to information collected by Jones Lang LaSalle Capital Markets Research in London, the U.S. is benefitting from ‘Being a Safe Haven’.

Global investor commercial real estate purchasing activity picked up in the second quarter with total market volumes increasing 24% from the first quarter to $108 billion, according to data collected from more than 60 countries.

This level of investment reverses the slight dip in activity recorded in the first quarter when volumes reached $87 billion.

REITs and unlisted funds were the second quarter’s biggest net buyers of property.

London remains the world’s most sought-after location, according to the report, with the United States moving back towards the $40 billion transactions mark in the second quarter, with 35% of deals involving cross-border parties.

While New York, San Francisco and Washington DC have long topped the target list for foreign investors, a number of second-tier U.S. cities have entered the Top 10 list for cross-border purchases into the United States, including Miami, Minneapolis and Phoenix.

According to the report, the U.S. is also benefitting from a safe haven strategy, as other global markets appear on shakier ground, particularly given the ongoing Eurozone crisis.

Although U.S. economic growth appears relatively weak, compared with most other fully mature economies, U.S. growth is much stronger, and investment into real, tangible assets in the country is attractive as a defensive strategy in volatile, challenging economic and market conditions in developed and emerging countries.

Cross-border Purchases, Q2 2012

  1. New York –  $1,014 m
  2. San Francisco – $685 m
  3. Washington DC – $643 m
  4. Miami – $554 m
  5. Chicago – $529 m
  6. Dallas – $514 m
  7. Seattle – $431 m
  8. Minneapolis – $384 m
  9. Boston – $318 m
  10. Phoenix- $317 m

Posted by Scott R. Lodde

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