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How’s The Market – Oct 2012 Housing

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I hear it all the time, "How's The Market?" my response is, "What are you looking to do?" "Sell, Buy, or Invest?" All three areas of the market are doing well. If you are looking to sell, there are a lot of buyers out there looking to buy. Keep in mind sales prices are reflecting prices from the early 2000's. If you are looking to buy, there hasn't been a better time in the history of the housing industry. Interest rates are still historically low and home affordability has never been better. If you are looking to invest, rent rates are increasing and rentals are harder to find. Buy, Improve and Hold is the investment strategy I would recommend to anyone looking at real estate today.

With home values reflecting prices from the early 2000's we have 10 years' worth of appreciation equity built-in to the home purchase. For instance a home bought in 2002 for $175,000 with an average of 3% appreciation a year should be valued at $235,185 today. The 3% annual increase has been a national average for decades. But today's market is the result of the real estate bubble rise and fall. Our fall has been greater than our rise, where we went up 54% it has come down 58%. That is a small difference but it is in the buyer's favor, especially the buyer investor.

To see the ten year sales price graph for Palm Coast Click Here.

Rent rates for the area have been going up due to high demand for rental property. It is the down side to the market for those who bought between 2005 and 2008, and are not able to sell their homes without a loss. If those buyers lost their job or had one of the sub-prime loans, they either sold as a short sale or lost the home to the bank. Those owners still need someplace to live and the rental market is the only option. This window of opportunity won't last much longer. Most reporting agencies are seeing lower defaults and fewer delinquencies.

Threat of Shadow Inventory Fades as Delinquencies, Foreclosures Decline

Housholds Stay out of Financial Distress

Investors see shrinking window to buy REOs

Both Jimmy & Annette earned the OwnAmerica Investment Certification and joins the OwnAmerica Network, a national affiliation of real estate investment specialists. This move allows Jimmy & Annette to offer analysis tools, tutorials and a video training series to clients during one of the biggest real estate investment booms in history. We will be scheduling real estate investment seminars starting in January 2013.

Values for Flagler County non-distressed properties continue to increase, very slight but an increase. Medium Price for sales in the past 12 months have gone from $145,000 for the prior 7 – 12 months, $144,000 for the prior 4 – 6 months and $152,750 for the past 3 months. Distressed property sales showed slight increases as well, see chart below. October sales had a higher than average number of distressed sales, with over 50% of sales being distressed.



 

Inventory has declined throughout the year, until October. In September there were 714 Single Family Residential homes on the market, In October there were 840. That still has a good absorption rate of 5 months of inventory on the market, a balanced market will have 6 months of supply.

Snap shot for October Year over Year

Listings

2012

Absorption

Rate

Residential

840

5.0

Months

Condos

243

7.8

Months

    

Sales

2012

2011

% Difference

Residential

154

127

+17%

Condos

34

25

+13%

    

Medium Price

2012

2011

% Difference

Residential

$130,000

$124,000

+4%

Condos

$108,000

$115,000

-6%

    

Days on Market

2012

2011

% Difference

Residential

113

138

-22%

Condos

204

171

+16%


 

The below Table shows a month-to-month and year-over-year comparison of single family home sales for years 2010, 2011 and 2012.

Median prices are with distressed properties removed. 

 

2012

 

2011

2010

 

Total Sales/ Non-Distressed

Median Price

Total Sales/ Non-Distressed

Median Price

Total Sales/ Non-Distressed

Median Price

January

119/50

$145,500

80/37

$155,000

84/40

$160,000

February

143/72

$146,250

94/37

$122,250

68/32

$189,750

March

183/92

$126,500

119/48

$161,500

135/76

$150,000

April

178/79

$162,900

153/56

$147,500

156/74

$161,250

May

208/113

$155,000

153/70

$154,750

120/50

$155,000

June

179/84

$135,000

183/82

$147,750

145/75

$165,000

July

189/99

$145,000

167/86

$143,750

101/45

$178,280

August

168/99

$150,000

131/72

$149,500

120/51

$185,000

September

142/89

$155,000

141/59

$128,000

124/56

$167,750

 

October

152/73

$131,000

127/61

$146,000

122/57

$145,000

November

  

129/61

$140,000

94/48

$145,000

December

  

141/59

$160,000

96/42

$166,250


 

To see a complete list of homes for sale visit our web site at www.RMFlagstaff.com

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