Real Estate Market View 6/16/2009: Housing Starts

New Housing Starts and Permits moved forward in May from the lows set in prior months.  Housing starts increased 17.2%  to an annual rate of 523,000 units according to the Commerce Department.  Additionally, New Building Permits rose 4% the largest gain since June of last year.

These are encouraging numbers, inparticular if we can continue to see Building Permits increase over the next few qtrs.  Since Building permits indicate future growth, that will certainly be a positive sign.


Real Estate Market View 6/2/2009 – Pending Home Sales

The National Association of Realtors announced today that Pending home sales for April were up 6.7% from March.  This is the third month in a row that pending sales have increased.  Slowly it seems that we are creeping out of the bottom of the real estate market.

Additionally, we see that 30yr mortgage rates are beginning to increase from their prior lows.  Once again we want to riterate that housing really has bottomed and while prices might still decline slightly, the risk is more to the upside than down.


Real Estate Market View 5/28/2009 – Florida Home Trend

A small trend is forming in existing home sales in Florida.  We have reached the eighth consecutive month where sales activity have increased year over year.  In April we saw the following for Florida

Existing Single Family Home Sales 18% increase (yoy)

Existing Condo Sales 21% increase (yoy)

On the alternative side we continue to see a decrease in sales price for existing single family homes with a 31% decrease (yoy) and condos prices a 41% decrease (yoy)

On the National front the pace of sales for existing single family homes creeped up slightly in April from March by 2.9%.  However, as has been the case, prices continue to drop nationally as well, with latest S&P/Case-Shiller Index showing home prices dropping 18.7% in March.  While this number is still negative it is slightly slowing from prior months.

In summary the best measurement at this point is inventory on the market.  The more we can reduce the inventory on-hand the quicker we should see a substantial and sustainable recovery.

On a side not 30 year fixed rate loans are beginning to slightly creep back up from their historic lows.

As mentioned in prior posting the bottom in the market is and the time to buy is now!


Daily Market Sip 4/28/2009

The Florida Senate is considering joint resolution Bill # 532 related to among other things the reduction in the maximum increase in tax assessment for commerical or residential rental property to no more than 5% or the average annual percentage growth in revenue derived from the property for the preceding 3 years.

This would be a huge benefit and catalyst to getting the real estate market moving again.  The Florida House has passed the bill and now the Senate is in final debate.  Here is a link to the Bill currently in the Senate.

Florida Senate