Category — Market Update

Hopeful signs that the worst may be over for the economy boosted Americans’ moods in April, sending a closely watched barometer of sentiment to the highest level since November.

The New York-based Conference Board said Tuesday that its Consumer Confidence Index rose more than 12 points to 39.2, up from a revised 26.9 in March. The reading marks the highest level since November’s 44.7 and well surpasses economists’ expectations for 29.5.

The consumer confidence survey showed a substantial improvement in consumers’ short-term outlook, including even their assessment of the job picture.

Some encouraging news in areas like retail sales and housing have helped fuel a recent stock rally. Earlier Tuesday, a housing index showed that home prices dropped sharply in February, but for the first time in 25 months the decline was not a record – another sign the housing crisis could be bottoming.

Economists closely monitor consumer sentiment because consumer spending accounts for more than two-thirds of economic activity.

Florida’s existing home sales increased in March, making it the seventh month in a row that sales activity demonstrated gains in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR). March’s statewide sales also increased over the previous month’s sales level in both the existing home and existing condo markets.

Existing home sales rose 30 percent last month with a total of 13,085 homes sold statewide compared to 10,080 homes sold in March 2008, according to FAR. Statewide existing home sales in March were 32.7 percent higher than February’s statewide sales.

Florida Realtors also reported a 25 percent rise in statewide sales of existing condominiums in March, continuing a trend in recent months for higher statewide sales of both the existing home and existing condo markets compared to year-ago levels. Statewide existing condo sales last month increased 37.2 percent over the total units sold in February.

Fifteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing-home sales in March and 13 MSAs also showed gains in condo sales. It marks the ninth consecutive month that a majority of markets have reported increased sales.

Florida’s median sales price for existing homes last month was $141,300; a year ago, it was $201,700 for a 30 percent decrease. Industry analysts with the National Association of Realtors® (NAR) report there is a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in February 2009 was $164,600, down 15 percent from a year earlier, according to NAR. In California, the statewide median resales price was $247,590 in February; in Massachusetts, it was $252,500; in Maryland, it was $253,200; and in New York, it was $210,000.

NAR’s latest housing industry outlook reported that entry-level buyers are seeking bargains, which resulted in sales of distressed properties accounting for 40 to 45 percent of February’s transactions. “Given the downward distortion in price comparisons due to distressed sales, it’s important for owners to keep in mind that this doesn’t equate to a similar loss of value for traditional homes in good condition,” said NAR Chief Economist Lawrence Yun.

In Florida’s year-to-year comparison for condos, 4,388 units sold statewide compared to 3,503 units in March 2008 for a 25 percent increase. The statewide existing condo median sales price last month was $108,700; in March 2008 it was $172,300 for a 37 percent decrease. In the latest data available at press time, NAR reported the national median existing condo price was $172,200 in February 2009.

Interest rates for a 30-year fixed-rate mortgage averaged 5 percent last month, down significantly from the average rate of 5.97 percent in March 2008, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s large to medium-size markets, the Melbourne-Titusville-Palm Bay MSA reported a total of 539 homes sold in March compared to 445 homes a year ago for a 21 percent increase. The existing home median sales price was $123,700; a year ago, it was $159,000 for a 22 percent decrease. In the year-to-year comparison for the existing condo market, a total of 113 units sold in the MSA last month, up 24 percent compared to 91 condos sold the previous March. The market’s existing condo median price was $123,100; a year ago, it was $164,300 for a 25 percent decrease.

Reprinted from the Florida Association of Realtors

We are seeing more activity in the real estate market recently and it is due in part to Canadian and European home buyers. The Canadian Dollar is on par with the US dollar and many Canadians are seeing this as an opportunity to jump in the real estate market and find a beach home or condo in the Clearwater / St. Petersburg area. The strong Canadian currency and also the sub prime mortgage crisis has made way for many bargains. We are receiving phone calls on a daily basis about our short sale and pre-foreclosure properties. The home buyers are out there in the marketplace and they are looking for deals. In order for a home to sell in this market, it must be the best priced, in the best condition, and be in the best location. The market is too competitive to be anything less.

Here are a few items for Canadians to consider while shopping for homes or condos in Clearwater / St. Pete:

• Who will take care of our property while we are not in town? It is important to have a local contact for someone you trust in the event the property needs care or maintenance. Many buyers prefer condos because most aspects of the exterior of the condo are maintained by the condo association through their monthly fees.

• What is the best location in Tampa Bay? The best location is a personal preference and must be experienced in person. I don’t recommend buying a home or condo in the Clearwater / St. Petersburg area sight unseen. The quality of life varies from one location to the next. Vacation here or stay a while and get to know the area layout before deciding on a final location. We can help you narrow the choices and find the best deals.

• What are the property taxes? Property taxes are reassessed after the sale of the property. The property taxes are based upon the local millage rate and multiplied by the taxable value of the property. You will not inherit the previous owner’s tax amount. There are 54 taxing entities in Pinellas County, so it is important to consider your tax consequences when purchasing a property in Florida. Starting in 2009, there is a 10% tax increase cap for vacation and rental homes. We can help you estimate your tax amount.

• What about homeowner’s insurance? Homeowner’s insurance is available and can be obtained for vacation and rental homes. We have several vendors available to quote rates when a property has been selected.

• How long can we stay in the US? As a non-citizen, a Canadian can stay in the US for a maximum of 6 months regardless of whether or not they have a residence in the United States. Check with the authorities to make sure this is accurate and up to date.

• Is now a good time to buy? Absolutely, there are more properties on the market than we have seen in years. The heavy competition is pushing real estate prices to new lows and bargains are everywhere.