First-time home buyers are not the only ones taking advantage of low prices and interest rates. According to the 2010 National Association of Realtors® (NAR) 2010 “Investment and Vacation Home Buyers Survey” vacation home sales increased 7.9 percent last year. In comparison, primary residence sales rose 7.1 percent. The general consensus is that the housing market has bottomed – finally. A recent Gallup poll concurs, with 77% of respondents believing this to be the case. In music to builder’s ears, new home sales jumped 27% in March, the biggest one-month gain in nearly five decades (since 1963). Standing new home inventory has declined for 31 straight months to achieve an all-time low and the reported March sales activity represents an impressive 23.8% year-over-year improvement. In other encouraging news, the closely watched S&P/Case Shiller Home Price Index reported its first annual increase in more than three years and one recent industry survey showed that more than half of agents polled reported that their selling customers received 95% to 100% of their asking prices. This compares to 53% in 2008 and 52% in 2006. Housing industry think-tank MacroMarkets recently surveyed more than 100 analysts and market strategists. Consensus findings suggest a 12.4% increase in housing prices by 2014 while some gurus think that rate could be as high as 37%.
Interest rates remain at historical lows – in the 5% range – and some lenders are once again funding jumbo loans, (mortgages exceeding $417,000) an encouraging indicator of a loosening credit market and continued interest in luxury residential investment. Nevertheless, the tighter credit market has more buyers paying cash for property, a condition that is serving to move standing inventory. According to Move.com, more than 12% of buyers plan to use 100% cash to purchase a new property and nearly 13% will use a cash down payment of more than 50%.
The practicality of the matter is that no matter what condition the market is in, each individual must assess his or her specific conditions when considering the purchase of a new home, a second home or a retirement property. As buyers come off the bench, inventories will diminish and prices will increase as demand begins to exceed supply. If you are in the market for a new or second home, the cost of living in your market of choice should carry as much weight as the cost of the home you wish to purchase. According to a study conducted by Where to Retire magazine, certain markets can provide as much as a 30%+ cost of living savings. Myrtle Beach, SC, and Asheville and Wilmington, NC rank amongst these, and tax-free states such as Florida and Tennessee are seeing increased buying activity. Check out PrivateCommunities.com to learn about the myriad opportunities that are currently available in these markets and others.
According to the latest quarterly survey conducted by the University of Florida’s Bergstrom Center for Real Estate Studies, foreign and domestic investors have returned to the Florida market. Recent sales and pricing activity on the housing front support this thesis.
Florida saw unswerving growth for decades, expanding from 2.7 million residents in 1950 to 19 million in 2009, fueled significantly by retirees seeking warm weather and affordable living conditions. But the influx served to spike housing values and markets throughout the state became focused on attracting wealthy splitters and snowbirds, exacerbating the affordability issue. By 2008, the state had the dubious distinction of having some of the priciest housing in the country while losing population for the first time in more than 50 years as half-backs deserted to more affordable markets such as the Carolinas. As the nationwide housing bubble continued to take its toll on homeowner equity, the Sunshine state’s allure as a retirement and second home haven suffered accordingly, despite home prices having dropped 46% (on average) since their peak.
Lower prices have served to turn things around in Florida as it is once again on everyone’s radar — residents, second home buyers and investors alike. In July 2009, the Florida Association of REALTORS reported that existing home sales had increased 18% over the previous year and existing condominium sales had risen 21%. In Miami, the March 2010 median single-family home sales price represented a 3.8% year-over-year increase. And in Orlando, sales were up nearly 32% in March compared to March 2009 while pending sales rose more than 40%, suggesting a continuing trend of home sale activity.
Moody’s Economy predicts that economic growth in Florida will outpace the nation between 2011 and 2016. Unlike Florida’s heyday, the state no longer relies exclusively on retirement relocation and tourism for its economic health. Cosmopolitan areas such as South Florida (Miami-Dade, Broward and Palm Beach) and the high-tech corridor that stretches across the state from the Treasure Coast to Tampa are indicative of the state’s dedication to diverse economic development. A recent University of Central Florida study suggests that in-migration to the state will resume in 2011, and population growth is predicted to climb 1.5% by 2013. For perspective, that would account for nearly 300,000 new residents.
Florida has an abundance of beautiful communities from which new residents may choose. For more perspective on Florida communities, go to PrivateCommunities.com.
The Dow Jones Industrial Average (DJI) closed yesterday at its highest level since July 2008. When the closing bell rang, the economic bellwether was at 11,144.57 reflecting an increase of 37% in the last year alone. According to the latest Standard & Poor’s/Case-Shiller National Home Price Index, 9 of the 20 cities that comprise the well-respected indicator, posted year-over-year increases in median home sales prices in January. The report goes on to advise that average home prices across the US are at similar levels to autumn of 2003.
While waiting for “the bottom,” that theoretically crucial moment of optimum opportunity may have already passed. But the practicality of the matter is that each individual must assess his or her conditions when considering the purchase of a new home, a second home or a retirement property. There are some key issues that should be considered in addition to purchase price. Interest rates remain at historical lows – in the 5% range – and lenders are once again funding jumbo loans, (mortgages exceeding $417,000) an encouraging indicator of a loosening credit market and continued interest in high-end, upscale residential investment. Further, more buyers are paying cash for property. According to Move.com, more than 12% of buyers plan to use 100% cash to purchase a new property and nearly 13% will use a cash down payment of more than 50%. This type of buying activity would be expected to result in increased pricing.
So let’s look at the big picture: 1) The DJI continues to soar, reflecting investor confidence. 2) Based on GDP expansion of 5.6% last year, the economy appears to be in the early stages of recovery. 3) The unemployment rate is a lagging indicator, i.e., one of the last to provide positive input, and yet February saw the addition of 162,000 jobs. And lastly, the Consumer Price Index is holding relatively steady, theoretically providing more bang for the buck.
As buyers come off the bench, inventories will diminish and prices will increase as demand begins to exceed supply. If you are in the market for a new or second home, the cost of living in your market of choice should carry as much weight as the cost of the home you wish to purchase. According to a study conducted by Where to Retire magazine, certain markets can provide as much as a 30%+ cost of living savings. Myrtle Beach, SC, and Asheville and Wilmington, NC rank amongst these, and tax-free states such as Florida and Tennessee are seeing increased buying activity. As the economy recovers, so will the housing market. As the housing market recovers, prices will ultimately rise. So is now the time for you buy? If so, check out PrivateCommunities.com to learn about the myriad opportunities that are currently available.
For the first time in more than 30 years the American home is shrinking. According to the National Association of Home Builders, the median home size grew continuously between 1973 and 2008, when it shrank 11%. NAHB also reports that 90% of homes built by its members in 2009 were smaller than those constructed in 2008, and 59% of builders surveyed in 2009 plan to build smaller homes in 2010.
In direct response to the new frugality imposed upon homebuyers by an economy that continues to frustrate, “value” is, once again, driving sales. The “smaller is better” momentum has been jump-started by downsizing Baby Boomers who no longer embrace conspicuous consumption. Austerity has become the new buzzword, and conservation the mantra of a generation that spawned the McMansion. But the Baby Boomer whose chicks have flown the coop has something in common with the up and coming next big generation, aka the Millennials. Those born between 1979 and 1993 have yet to start families, making their housing aspirations similar. The shear depth of this potential consumer group will continue to fuel the ensuing wave of “small is better” housing demand. As early as this year, the “Millennial” homebuyer could outnumber the Boomer, supplanting them as the group having the most impact on the housing industry in contemporary history. There will be five million more of them than there were Boomers when that generation first began swelling the housing market. That said, GenY’s comparatively moderate incomes will keep affordability on the front burner.
Production builders are rallying to the cry for affordability as competition from foreclosed properties has served to raise the bar on what constitutes affordable. The most efficacious way they have found to lower prices is to downsize. San Diego-based Newland Communities, Centex Homes and Lennar have all introduced smaller versions of some of their most popular floor plans resulting in the ability to lower prices and meet demand that continues to be fueled by the new frugality mentality. This strategy has worked well, particularly in light of the tax incentive program for first-time homebuyers. At Centex Homes’ RiverMist at Dutchman Village, single-family home sizes begin at approximately 1,400 square feet. At Lennar’s Colonial Heritage in historic Williamsburg, VA, single-family homes begin at 1,475 square feet and the largest is approximately 2,500 square feet. At Newland Communities’ FishHawk Ranch single-family home sizes start at approximately 1,300 square feet. While downsizing has resulted in lower prices, quality has not been neglected and many upgrades are now standard features making these little “jewel boxes” a win-win opportunity.
RiverMist at Dutchman Village is a Centex community where you can sample the lifestyle this winter with a Discovery Package. With all the late night television barbs exchanged lately, Private Communities Newswire decided to offer a less comedic list of reasons why a Discovery Package is a such a good idea. We’ll leave the real comedy to the late night hosts, but here are ten fun reasons you should book one. Can you hear the drum roll?
10. When you have a great time in an ideal retirement destination or second home spot, you’ll ramble on about it for weeks to friends and family.
9. If you end up buying a home in Lake Lure, North Carolina — and your name is Bill — you can tell everyone you know that they named the mountain there for you as part of your deal.
Is an escape to a tropical paradise in your near future? As the weather gets chilly there may be no better way or no better time to explore a second home in one of the most scenic places on earth.
Could waking up on Pine Cay each morning cure your Holiday Blues?
The true test is to see if you can find your “happy place.” Is there warm weather, plenty of activity to keep you busy or to stay busy doing nothing at all? Starry nights. Sandy beaches. It is the sort of mythical place The Beach Boys called Kokomo in their 1988 hit song (later updated by The Muppets), and that Rodgers and Hammerstein described as Bali Ha’i in their classic Broadway show South Pacific?
Or will you find yourself on a private, secluded island in the nearby Turks & Caicos where lots and homes are priced from $1.5 million and your neighbors will share your desire for a natural hideaway to get away from it all.
The best thing about Pine Cay might be its location, convenient to flights over the crystal clear waters or easy sailing just 494 nautical miles from Miami. However you get there, you may not wish to return from your own special private island filled with rustic charm and casual elegance.
Here’s an interesting slide show from BusinessWeek. It begs the question about the enclaves where more affluent buyers and owners have the strongest staying power. Are the kinds of communities that have helped certain ZIP codes hold their value despite previous downturns feeling the pain too?
Another good place to keep tabs on market conditions is Realty Times, or you can get super-specific and contact some developers directly to see what the latest deals and offers might be on vacation homes or relocation opportunities across America by visiting PrivateCommunities.com
Consumers are lining up for great pricing on cars with the extension of America’s Cash for Clunkers program, and attractive pricing on vacation homes and second homes is keeping pace at places like Lauderdale Bay in Myrtle Beach, South Carolina. Imagine getting all the beach access and golf, plus three or four bedrooms in the $200,000 to $300,000 price range.
An Ideal Vacation Dashboard: Spacious Private Balconies Come With Every Villa at Lauderdale Bay
Vacation homes in great destinations should start to see signs of solid sales once Americans get their buying confidence back, and what better investment is there these days than one that you can enjoy in your pre-retirement or retirement years?
At these prices, you don’t have to live with America’s Most Wealthy to live well. You might also try shopping at PrivateCommunities.com where you can select your own price point no matter your ideal destination.
First-time home buyers are not the only ones taking advantage of low prices and interest rates. According to the 2010 National Association of Realtors® (NAR) 2010 “Investment and Vacation Home Buyers Survey” vacation home sales increased 7.9 percent last year. In comparison, primary residence sales rose 7.1 percent. The general consensus is that the housing market has bottomed – finally. A recent Gallup poll concurs, with 77% of respondents believing this to be the case. In music to builder’s ears, new home sales jumped 27% in March, the biggest one-month gain in nearly five decades (since 1963). Standing new home inventory has declined for 31 straight months to achieve an all-time low and the reported March sales activity represents an impressive 23.8% year-over-year improvement. In other encouraging news, the closely watched S&P/Case Shiller Home Price Index reported its first annual increase in more than three years and one recent industry survey showed that more than half of agents polled reported that their selling customers received 95% to 100% of their asking prices. This compares to 53% in 2008 and 52% in 2006. Housing industry think-tank MacroMarkets recently surveyed more than 100 analysts and market strategists. Consensus findings suggest a 12.4% increase in housing prices by 2014 while some gurus think that rate could be as high as 37%.
