The biggest impacts of the government shutdown, as it pertains to housing, are expected among buyers reliant on loans backed by the federal government. Last year, FHA loans accounted for nearly half of the mortgages used to buy homes.
HERALD-TRIBUNE ARCHIVE
Home sales across Southwest Florida rebounded from a lackluster summer, resuming a pace that rivals the market's historic boom of a decade ago.
The gains during October came despite rising interest rates, tight inventory and cancelled contracts from the three-week federal government shutdown — all limiting home sales in what is traditionally a slower month for the region.
But sustained demand from seasonal retirees — who appear to have returned to Florida a little earlier than normal this year — continued to fuel a robust housing recovery. Prices also extended an upward march that began early last year, records show.
That part of the local uptick was mirrored both statewide and nationally, with prices rising to their highest level since the bubble of the mid-2000s.
"We're still attracting a lot of people to this state, population is growing, and that's good for real estate," said Clark Toole, president of Coldwell Banker's Florida division, which is based in Sarasota. "We're on a record tourism pace too, so that all indicates our business will continue to be strong."
Realtors in Sarasota, Manatee and Charlotte counties sold 1,850 homes and condominiums in October, a 3.5 percent increase from September and up nearly 10 percent from the same time last year, according to figures released Wednesday by the industry trade group Florida Realtors.
Despite the progress, home deals in October were limited by a partial government shutdown that lingered nearly three weeks. The Congressional strife delayed real estate closings across the nation that were dependent on a loan backed by the government.
Also slowing sales was the new flood insurance reform that took effect during October. That was especially true in coastal communities like Siesta Key and Anna Maria Island, where some premiums spiked by 400 percent.
Late summer and early fall are generally considered quiet months for Southwest Florida housing.
Sales inked with the return of snowbirds around Thanksgiving then boost the region's numbers when those deals officially close in January, February and March.
This year, most industry observers expect a strong winter season, though they remain cautious of political uncertainty, interest volatility and rapidly rising home prices.
Through the first 10 months of 2013, home sales are on track for their best annual performance in six years.
"There's always a little lull right after summer," said Jack McCabe, a Florida real estate analyst. "But without a doubt the federal government shutdown stalled real estate sales in Florida and across the country. A lot of deals didn't get done."
Influx of investors
Analysts attribute the strong demand to stock market windfalls and improving housing markets in the north, which have empowered more baby boomers to buy a Florida home.
An influx of investors also has helped prop up demand.
Median home prices in the North Port-Bradenton-Sarasota metropolitan area have risen by 13.4 percent through the year to $199,500 last month, mirroring the national median. The median is the midpoint; half the homes sold for more, half for less.
In Charlotte County, prices rose by 8.3 percent to a $130,000 median during October.
"The sales pace should continue through season — the price appreciation remains to be seen," said Peter Crowley, broker and co-owner of the Re/Max Alliance Group in Sarasota and Manatee. "The question still lingers out there of whether the banks will release some of their distressed inventory, which could moderate those price gains some next year."
Inventory also is beginning to loosen, with a net gain of about 180 new listings in Sarasota during October. That was a 4.8-month supply based on the current sales pace, up from the 4.4-month supply the previous month.
But anything below the six-month mark is still considered tight — generally favoring sellers over buyers.
The depleted stock has limited sales growth while also propelling Southwest Florida's ferocious property appreciation.
The shortage also has spurred a renaissance in the homebuilding industry — one of Southwest Florida's top employment sectors — as developers scramble to create new models to meet demand.
"Sarasota and Manatee have seen good growth, and I suspect it will continue that way," said John Tuccillo, Florida Realtors' chief economist. "It's been one of the more positive markets."
Trend reflected in Florida
The positive trend was reflected across the Sunshine State and nation to varying degrees.
Statewide, Realtors sold 18,728 single-family homes last month, a 1 percent increase from September and 6.5 percent jump from a year ago, Florida Realtors reported. The median price has grown nearly 17 percent through the year to reach $169,000 in October.
Nationally, existing-home sales slipped for the second consecutive month during October, while constrained inventory continued to lift home prices at double-digit gains.
Sales fell by 3.2 percent to a seasonally adjusted annual rate of 5.12 million in October. But those figures remained 6 percent higher than in October 2012. It was the 28th straight month of annual sales improvements, National Association of Realtors data showed.
The $199,500 median in October was up nearly 13 percent from the same time last year. It was the 11th consecutive month of double-digit increases.
Distressed homes — deeply discounted foreclosures and short sales — accounted for 14 percent of transactions in October. At the trough of the downturn, that ratio was 40 percent. All cash deals accounted for 31 percent of October's home sales.
The national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.19 percent in October from 4.46 percent in September; the rate was 3.38 percent in October 2012, according to Freddie Mac.
"Clearly buying power has dampened with rising home prices and interest rates," said Walter Molony, spokesman for the National Association of Realtors. "But supply, especially in markets with tighter inventory, also is holding sales back."
EARLIER: Home sales across Southwest Florida rebounded from a lackluster summer in October, resuming a pace that rivals the market's boom of a decade ago.
The gains last month came despite rising interest rates, an ever-tightening inventory and cancelled contracts from the three-week federal government shutdown — all of which analysts predicted would combine to limit home sales in what is traditionally a relatively slow month for the region.
But sustained demand from seasonal retirees — who appear to have returned to Florida a little earlier than normal this year — continued to fuel a robust housing recovery. Prices also increased with a double-digit gain that began early last year, records show.
Realtors in Sarasota, Manatee and Charlotte counties sold 1,850 homes and condominiums in October, a 3.5 percent increase from September and a nearly 10 percent jump from the same time last year, according to figures released Wednesday by the industry trade group Florida Realtors.
The demand has pushed median home prices in the North Port-Bradenton-Sarasota metropolitan statistical area by 13.4 percent over the year, to $199,500 in October. The median is the midpoint; half the homes sold for more, half for less.
In Charlotte County, the median for single-family homes similarly grew 8.3 percent, to $130,000 in October, Realtor records show.
In a sign that future months may also experience higher sales, inventory also is beginning to improve. Sarasota gained a net of 179 new listings during the month, leaving the market with a 4.8-month supply based on the current sales pace.
That inventory level is up from the 4.4-month supply in October 2012, but below the 6-month mark that signals a market balanced between sellers and buyers.
No comments:
Post a Comment