Headlines – Week of September 16, 2012
September 29, 2012
According to Case-Shiller, U.S. home prices continued to increase in July, with its 20-city index up 1.6 percent from June and the 10-city index up 1.5 percent. The 10-city index rose to its highest level since November 2010 and the 20-city index to the highest level since October 2010. Prices rose month-over-month in all of the 20 cities.
Year-over-year, the 10-city index was up 0.6 percent, and the 20-city index rose 1.2 percent.
Existing Home Sales at Highest Level since May 2010
The National Association of Realtors recently reported that existing home sales rose 7.8 percent to 4.82 million in August, the highest level since May 2010. The median price of an existing single-family home in August was $187,400, down from $187,800 last month and up from 171,200 a year ago.
Real Estate Flipping Back in Southwest Florida
Flipping houses is back again in Southwest Florida as buying and quickly reselling homes and condominiums to pull in large profits.
According to new data released from RealtyTrac, there have been 889 properties flipped from January to June in Manatee, Sarasota and Charlotte counties. That was a 45 percent increase from the same period last year and a 97 percent increase from the same six months in 2010.
RealtyTrac categorized flips as resales within four months after the initial deal.
Buyers in this region held on to the houses for an average of 99 days and sold them for an average gain above the previous sale price of $30,975, according to a Herald-Tribune analysis of the RealtyTrac data. The highest per-county average gain was in Sarasota County, at $32,901. Charlotte County was second at $30,348. Manatee’s average was $29,676.
Florida overall saw more than 14,000 flips during the same six-month time period, a 70 percent increase since 2010. The homes were kept for an average of 103 days and the average gain was $13,240.
Dwindling Home Inventory Drive Prices Up in Naples
According to a report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the Naples area real estate median price increased a remarkable 10 percent for the 12-month period ending August 2012,
Looking at the inventory statistics it is worthy to note that in less than eight months, the area reached an overall inventory of 6,043 in August 2012 from 7,860 in January 2012. 2003 was the last time Naples saw inventory this low.
- The overall median closed price increased 10 percent, from $176,000 to $194,000, for the 12-month period ending August 2012.
- Overall pending sales increased 16 percent in the $500,000 to $1 million category, from 939 units to 1,091 units, for the 12-month period ending August 2012. Overall pending sales increased 10 percent in the $1 million to $2 million category, from 424 units to 466 units, for the 12-month period ending August 2012.
- Overall inventory decreased by 13 percent, from 6,930 in August 2011 compared to 6,043 in August 2012. Pending sales with contingent contracts are included in the overall inventory number.
- The average DOM (Days on the Market) decreased by six percent, from 178 days on the market in August 2011 to 167 days on the market in August 2012.
- Overall pending sales in the Naples coastal area increased 10 percent from 1,779 units to 1,950 units, and closed sales increased 9 percent, from 1,586 units to 1,732 units, for the 12-month period ending August 2012.
According many realtors, the strong numbers clearly reflect the economic model of Supply and Demand. As inventory decreases and demand for homes remains high, prices increase. The statistics from the last three months have capped off a strong summer and the Naples area is no longer as seasonal as it used to be.
Posted by Scott R. Lodde