The Laker/Lutz News

Florida Realtors

Housing demand on rise in Florida, Pasco

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Construction sites along Pasco County’s major corridors are part of everyday landscape.

Bulldozers clear land and work crews move in with hammer and nails.

Pasco is awash in new single-family homes under construction, and to a lesser degree, apartment complexes.

Brad O’ Connor, chief economist for Florida Realtors (Courtesy of Brad O’ Connor)

But, market trends show that the supply of new homes is lagging behind demand. That’s a change from the housing bubble that burst in 2008 and sent the economy into a tailspin.

“This time, instead of building too much, we’re building too little,” said Brad O’ Connor, chief economist for Florida REALTORS.

But, there are solid reasons why demand is high.

“Right now, demand is being driven by population growth and economic growth,” O’ Connor said.

O’ Connor was keynote speaker at the Feb. 1 forum, Reshaping the Face of Pasco 2018 Economic Summit. Central Pasco Association of Realtors hosted the event at Pasco-Hernando State College Porter Campus at Wiregrass.

Other participants were David Gwynn, District 7 secretary at the Florida Department of Transportation; Tom Ryan, economic development manager for the Pasco Economic Development Council; Camille Hernandez, mayor of Dade City; Kathryn Starkey, Pasco County commissioner; Mary Yeargan, director of district management at the Florida Department of Environmental Protection; and Bob Thompson, program moderator of Thompson Event Partners.

Monthly supplies of single-family homes, as well as condominiums and townhouses, were down statewide in 2017, according to data from Florida Realtors.

Florida had slightly less than four months of inventory for single-family homes, down about 6.2 percent from the previous year. There was a six-month inventory of condos and townhouses, down about 1.5 percent.

Hillsborough County had a 2.6-month inventory of single-family homes, down 10 percent; and a two-month inventory of condos and townhouses, down almost 10 percent.

Pasco County also had a 2.6-month inventory in single-family homes, down 4.2 percent; and the same amount in condos and townhouses, down 19 percent.

In 2017, the biggest inventory of single-family homes in Pasco fell within the $200,000 to $250,000 range, followed by homes from $100,000 to $150,000, and $150,000 to $200,000. Those were increases from 2016.

But, there was a significant decline from 2016 to 2017 in homes selling from $50,000 to $100,000. “There is a scarcity in the low sales rage,” O’ Connor said.

Research found declines also in the monthly averages for the 2017 inventory of active listings of single-family homes, condominiums and townhouses.

Florida’s average monthly listings of single-family homes were nearly 89,000, down 4.6 percent. There were about 54,000 monthly listings on average for condos and townhouses, down about 1.2 percent.

Pasco had about 2,200 listings for single-family homes monthly, down about 2.2 percent. Condos and townhouses had about 420 listings a month, down about 16 percent.

With demand higher than supply, O’ Connor said housing prices are inflated.

However, data shows Pasco is still a bargain for homeowners, even as prices rise, compared to other Tampa Bay counties.

Statewide the median price for a single-family home in 2017 was $237,500, an 8 percent increase. In Hillsborough, the median price was $235,000, an increase of 6.8 percent.

Pasco’s median price was $200,000, an increase of 13 percent.

O’ Connor also noted one other housing trend.

In 2008, homeowners stayed in their homes on average seven years. Now they stay about 11 years.

It’s not clear why, though O’ Connor said people could still be feeling the effects of the economic recession.

For information, visit FloridaRealtors.org.

Published February 14, 2018

Foreclosures falling in Florida

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For far too long, Florida led the nation when it came to residential foreclosures. But no more.

Maryland saw its foreclosure filings explode in October by 30 percent compared to the previous year, and its 5,943 properties in limbo made it the worst in the nation, pushing Florida to No. 2.

Yet, one in every 444 properties are in foreclosure, according to Florida Realtors and RealtyTrac. That is down 2 percent from September, and 25 percent from a year ago — and it did mark the 15th consecutive month Florida had a year-to-year decrease.

The Tampa area is down 23 percent from a year ago, but it was still the third highest metropolitan foreclosure rate in the country with one in every 395 properties facing a filing. Miami was the worst for cities with a population of 200,000 or more, jumping 11 percent from the previous month, but down 27 percent from a year ago.

Orlando was just behind with one in every 394 housing units in foreclosure. Other areas in Florida also made the national list including Jacksonville at fourth, Cape Coral-Fort Myers at sixth, Lakeland at eighth, and Pensacola at 10th.

Some of the drops in foreclosure came from a bump in auction activity, with Orlando up 23 percent in auctions, while other places like Cape Coral-Fort Myers were as high as 170 percent.

 

Home sales, prices up in Tampa Bay region

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It’s nothing but positives in September for the Tampa Bay housing and condominium market, as both sales and median prices have gone up.

The latest report from Florida Realtors shows existing home sales are up 11 percent, and condo sales grew more than 4 percent compared to a year ago. Median sales for the area that also includes Pasco County also rose more than 3 percent for existing homes, and 10 percent for condos.

“When home prices increase, more Florida homeowners may be ready to list their homes for sale,” said Florida Realtors president Sherri Meadows, in a release. “So on the one hand, it is a positive factor for improving housing inventory in many markets, but on the other hand, rising prices also can make it more challenging for first-time buyers to enter the market, or even for move-up buyers to find their next home, especially when lending standards remain too restrictive.”

In September, the Tampa Bay region sold 3,441 single-family homes and 1,132 condos — second only to the greater Miami area. Statewide, existing home sales were up more than 13 percent to 20,792, while condo sales climbed 2 percent to 8,622.

The median price for those single-family homes was $159,900 locally, compared to $180,000 statewide. Condos in the Tampa Bay region were $105,500, compared to $142,700 around the state.

Nationwide, single-family prices were up 5.2 percent to $220,600, according to the National Association of Realtors, while the national median existing condo price was $213,900.

“The stability that has characterized the housing market in Florida continued in September, but at a higher level of activity,” said Florida Realtors chief economist John Tuccillo, in a release. “Both single-family and townhouse and condo sales were up, but so were new listings and pending sales. Despite this, inventory — as measured in months — remained about the same in a range that indicates a balanced market. So, more houses are coming on the market, and more people are buying.”

The interest rate for a 30-year fixed-rate mortgage averaged 4.16 percent in September, down from 4.49 percent a year ago, according to Freddie Mac.

Families returning to home market, Realtors say

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Single-family homes remain on the rise for the greater Tampa Bay area, while sales of townhouses and condominiums continue to slip.

Just under 3,600 homes sold in the region that includes Pasco County last month, according to Florida Realtors, up nearly 4 percent from a year ago. That’s despite the median sales price staying the same at $160,000.

Condos dropped a little more than 1.5 percent to 1,170 units, while the median price there jumped more than 15 percent to $115,000, compared to 2013.

Statewide, single-family home sales are up 4.2 percent, while the median price rose 3.4 percent.

“For several months now, stability and consistency are key trends we’re seeing in Florida’s housing market, as the state’s jobs outlook remains steady and the economy continues to grow,” said Sherri Meadows, the president of Florida Realtors, in a release. “The statewide inventory (active listings) for single-family homes last month rose 13 percent year-over-year, while the townhouse-condo inventory of active listings rose 8.9 percent.”

The statewide median price for a condo was $135,000, compared to $115,000 locally. The national median price for a condo is $215,700, while the national median for a single-family home was $223,900. That’s led by California with a median of $464,750.

Short sales in the single-family home market dropped more than 49 percent from last year. Closed sales typically are occurring 30 to 90 days after sales contracts are written, according to the group.

Inventory was at a 5.5-month supply in August, while condos were at a 5.7-month supply. The interest rate for a 30-year fixed-rate mortgage averaged 4.12 percent in August, according to Freddie Mac, down from the 4.46 percent average recorded a year ago.

 

Housing market up, condo sales down locally

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Nearly 15,000 existing homes and condominiums changed hands in the greater Tampa Bay area during April, May and June, showing promising housing market trends despite a drop in overall condo sales.

The region — which includes Pasco, Hillsborough, Hernando and Pinellas counties — sold 3,733 condos in the second quarter, down more than 5 percent from the year before. The median sales price, however, rose more than 12 percent to $110,000.

That volume was second only to the greater Miami and Fort Lauderdale area, where nearly 13,000 condos were sold, according to a new report from Florida Realtors. Sales there, however were down more than 6 percent.

The lower volume is actually good news for the market, Florida Realtors chief economist John Tuccillo said, because that means foreclosure-related short sales are on the decline.

“The second quarter numbers show that Florida’s real estate market is settling in,” Tuccillo said, in a release. “While prices throughout the state tend to be up, sales are mixed with single-family sales growing, and condos and townhouses declining.”

Some of the reasons for that include the reduced role of bulk investors — buyers who pick up multiple units at a time in hopes to rent or flip — and many families who are having trouble getting mortgage credit because of flat income.

“This market is sustainable, but either or both of these roadblocks must be removed if it’s to take off again,” Tuccillo said.

Just a little more than 10,800 single-family homes were sold in the quarter, up 3 percent from a year ago. Median prices, however, were much more flat at $156,000, an increase of 1.3 percent.

Statewide, single-family sales were up more than 7 percent, while median sales prices rose just above 5 percent at $180,000.

Of the regions Florida Realtors track, Ocala in Marion County still had the lowest median price for a home at $105,000, despite a 6 percent increase in price. The most expensive homes remained in the Naples and Marco Island area of Collier County, were the median price rose nearly 16 percent to $405,000.

The interest rate for a 30-year fixed mortgage averaged 4.23 percent for the second quarter, up from 3.69 percent the year before, according to Freddie Mac.

Mixed recovery messages from local housing market

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Condominium sales in the Tampa Bay region are down, but prices are on the rise as home sales continue their long recovery in the state.

The median sales price of a condominium in the region, which includes both Pasco and Hillsborough counties, was $110,000 in May, up nearly 13 percent from the year before, according to a new report from Florida Realtors. The number of closed sales dropped nearly 10 percent, however, to 1,256 units.

Single-family home sales climbed a little more than 1 percent last month in the area, while median sale prices slipped about the same percentage, to $156,000.

What had been a buyer’s market is quickly turning into one benefitting sellers, said Florida Realtors president Sherri Meadows, in a release.

“Right now, the market offers a great opportunity for sellers, who are seeing nearly 93 percent of their asking price at the closing table,” she said. “And mortgage rates, though rising, remain historically low, giving consumers more buying power.”

Statewide, condo sale prices rose nearly 14 percent to $145,000 while home prices ticked up another 4 percent to $180,000. The most expensive homes are found in Collier County where the median price for a single-family was $410,000, while condos were running $230,000. The cheapest were in Ocala where single-family were selling at $108,000, and condos at $46,000.

The market still struggles to get first-time buyers.

“Going forward, we’re concerned about affordability,” said John Tuccillo, chief economist for Florida Realtors, in a release. “In particular, the difficulty of first-time buyers to access mortgage financing, and the lag in providing a much-needed supply of new homes may hold back Florida’s housing market.”

Home prices on the rise in Pasco, Hillsborough

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Sales of existing houses and condominiums might be on the decline in the Tampa Bay area, but that’s not stopping prices from going up.

The median sales price of an existing single-family home was $150,000 in March, according to a new report from Florida Realtors. That’s up more than 4 percent from a year ago, while condo prices rose 14 percent to $105,000.

Yet, sales were down in both categories, with 3,220 homes sold in March (a drop of more than 2 percent), and 1,186 condos changing hands, slightly lower than a year ago.

Statewide, however, single-family home prices rose more than 7 percent to $173,000, while condos jumped nearly 17 percent to $140,000.

The Tampa Bay metropolitan area includes Pasco and Hillsborough counties in these reports.

March was the 28th consecutive month that median sales prices rose year-over-year for both single-family and condo homes, said Florida Realtors president Sherri Meadows, in a release. Realtors from around the state are seeing a return of a more traditional market, with fewer short sales borne of the most recent market crash reported.

Cash sales are also on a decline, meaning that home buyers are finding more mortgages available. Freddie Mac reports that the interest rate for a 30-year fixed-rate mortgage averaged 4.34 percent in March, according to Florida Realtors. That is up from the 3.57 percent average recorded in March 2013.