Cape Coral Foreclosures Homes

Deficit of new single-family homes must be addressed as economy improves

WASHINGTON – Nov. 18, 2010 – Annual single-family housing production in 2008 and 2009 fell about one million units short of the housing that would be needed in a normally functioning economy, suggesting that builders will have a lot of catching up to do as the economy improves and household formations return to trend levels, according to a special study by economists at the National Association of Home Builders (NAHB).

The report, “Extent of Underbuilding in the Single-Family Housing Market,” found an excessive amount of single-family building from 2003 through 2005. But overbuilding largely ended by 2006, and the subsequent downturn was severe enough to more than offset the annual surpluses. This year is likely to add to the growing deficit of single-family homes by another one million units, according to the report.

“The single-family housing market in the U.S. currently finds itself in a significantly underbuilt state,” says NAHB Chairman Bob Jones. “Pent-up demand for housing will at some point need to be worked off, pushing single-family production in a positive direction. In the meantime, the deficit continues to grow as builders remain cut off from the credit they need to begin developing and building new housing.”

The analysis compares levels of single-family permits in recent years with the long-term trend that would be seen if housing, labor and credit markets were functioning normally and generating a normal rate of household formations.

Permits were used instead of housing starts because they are based on a much larger sample and provide more geographic detail, which enabled the study to be extended to the state level. (A building or zoning permit represents housing units that are authorized to be built. According to the Census Bureau, all but a small percentage of permits become starts. A start is when ground is first broken for the foundation of the building.)

Single-family permits plunged to a trough of 441,000 in 2009, their lowest level since World War II. The previous post-war low occurred in 1981, when 550,000 single-family permits were recorded. Adding to the magnitude of the recent downturn, multifamily starts and permits last year fell below 150,000 units, an historic low, compared to about 400,000 units annually during the early 1980s.

“In 1980, there were roughly 226 million people and 88 million housing units in the country,” the report says. “By 2009, these numbers had increased to 307 million people and 130 million housing units, so in that year the U.S. added a record low number of new housing units to a population and housing base that was larger than it had ever been before.”

From 1988 through 2003, the U.S. population was growing at a fairly steady average annual rate of 1.15 percent and varied only between 0.90 percent and 1.35 percent. During the recession, household formations slowed markedly below this pace, delaying two million household formations. The deficit in new single-family homes can continue as long as household formations remain depressed.

Over the 1988-2003 period – which goes right up to the housing boom years of 2004 and 2005 and can be considered a fairly normal one for housing – the number of single-family permits issued was increasing at an average of about 36,000 per year, consistent with a growing population that needs housing and an expanding inventory of older homes that need to be replaced.

Projecting that trend past 2003, single-family permits should have hit 1.4 million by 2005, 1.5 million by 2008 and around 1.56 million in 2009, the report finds. Instead, permits were well over 1.4 million in 2003 and pushed past 1.6 million in both 2004 and 2005, “a period of serious overbuilding.”

Subsequently, however, permits dropped to under 1.4 million by 2006 – already slightly below trend – and continued to fall through last year.

Single-family surpluses occurred from 2002 to 2006 and they were well over 200,000 annually in 2004 and 2005. Deficits, which began to materialize after 2005, reached about a half a million units in 2007 and one million every year since then as single-family permits dropped below 500,000 – more than a million units per year below trend.

Accumulating annual surpluses peaked at 493,000 single-family units in 2005, and that was worked off entirely by the end of 2007. Depressed levels of single-family housing production resulted in a cumulative deficit of 2.17 million units by 2009 and will likely grow to 3.28 million by the end of this year.

The study also found that there are now single-family housing deficits in most of the states. This includes the states that had the hottest markets during the boom: Arizona, with a deficit of 144,500; California, 49,500; Florida, 112,600; and Nevada, 75,600.

To read the entire report, go to www.nahb.org/underbuildingsfh.

© 2010 Florida Realtors®

Florida’s existing condo sales rise in July ORLANDO, Fla., Aug. 24, 2010 – Sales of existing condominiums in Florida rose 11 percent in July, with a total of 5,557 condos sold statewide compared to 4,991 units sold in July 2009, according to the latest housing data released by Florida Realtors®.

Eleven of Florida’s metropolitan statistical areas (MSAs) reported higher existing condo sales in July, according to Florida Realtors. The statewide existing condo median sales price last month was $87,200; in July 2009 it was $108,500 for a 20 percent decrease. The national median existing condo price was $181,300 in June, according to the National Association of Realtors® (NAR).

Meanwhile, in the year-to-year comparison for existing home sales, a total of 13,589 single-family existing homes sold statewide last month compared to 15,762 homes sold in July 2009 for a decrease of 14 percent. Florida’s median existing-home sales price in July was $138,000; a year earlier, it was $147,600 for a decrease of 7 percent. The median is the midpoint; half the homes sold for more, half for less.

“The homebuyer tax credit expiration added a double dip to what has already been a harrowing ride in the Florida housing market,” said Dr. Sean Snaith, director for the University of Central Florida’s Institute for Economic Competitiveness. “As we move past this second dip, which is evident in the July data, the continued recovery of the state’s housing market will be contingent upon the improvement of the fundamental underpinnings of the housing sector.

“A healthy housing market depends upon a healthy Florida economy, and in particular, an improving labor market,” Snaith added. “Job growth and a declining unemployment rate will help sales continue to grow while at the same time reducing the number of foreclosures in Florida.”

2010 Florida Realtors President Wendell Davis, a broker with Watson Realty Corp. in Jacksonville, noted that the Gulf oil spill, along with uncertainty over its impact, has affected the state’s housing market.

“Along with many local businesses in the Florida Panhandle and in other Gulf Coast states, real estate has experienced significant economic harm following the Deepwater Horizon drilling rig explosion and oil spill,” Davis said. “The announcement that a special allocation from the BP Oil Spill Fund is now available to help the claims of real estate professionals’ – Realtors and licensees – over loss of income or sales due to the Gulf oil spill is a positive action that will help bolster the state’s fragile economy recovery.”

The national median sales price for existing single-family homes in June 2010 was $184,200, up 1.3 percent from a year earlier, according to NAR. In Massachusetts, the statewide median resales price was $331,150 in June; in California, it was $311,950; in Maryland, it was $265,268; and in New York, it was $220,750.

More jobs continue to be key to the housing sector’s recovery, according to NAR’s latest industry outlook. “There could be a couple of additional months of slow home-sales activity before picking up later in the year, provided the job market continues to improve,” said NAR Chief Economist Lawrence Yun.

The interest rate for a 30-year fixed-rate mortgage averaged 4.56 percent in July, down from the 5.22 percent averaged in July 2009, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

© 2010 Florida Realtors®

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Kathryn Blackman

Sandals Realty

1-239-677-0505
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Are you still interested in finding that great foreclosure home in Cape Coral or Fort Myers, Florida?

If so than pay attention to what I am about to disclose to you and you will be prepared to get the best deals on the market today!

You have heard the hype by now but do you really believe that the foreclosure homes in Lee County have dried up? Well studies recently show that the banks are no longer modifying mortgages.  What does this news mean to you? Well if you are looking to buy a home this year …Get ready to see a lot of homes coming up for sale because the only other option to not modifying the mortgage is foreclosure. The weekly logs of foreclosures are getting longer according to the Lee County Clerk of Courts

 Website http://www.leeclerk.org/ForeclosuresA2/

You can easily see that they have dropped in numbers but soon we will see an increase. Why do I say this? Well the banks are getting ready to drop and run …. Meaning they have not been modifying loans only appeasing the public…Insiders have caught even the largest of them all skirting around the issue to force people to foreclose. There was a cessation period however that is no longer in effect and I believe that things are going to start to rattle this year.  If you are interested in hiring an aggressive agent please give me a call at 239-297-8936. Here is my website please click here to search homes including foreclosures http://www.cape-coral-luxury-real-estate.com/Search_for_Homes/page_2229391.html

Please feel free to call me and please leave a message…..

You can find me on FACEBOOK

 

Kathryn S. Blackman- Realtor

Sandals Realty

Cell 239-297-8936

Email: myrealtorkathryn@gmail.com

Websites: www.cape-coral-luxury-real-estate.com

Are you looking to avoid foreclosure and unsure of what A SHORT SALE is then call me for a confidential interview. I can help you sell your house and slow down the foreclosure proceedings while applying for a short sale. Not all short sales are created equal but our office is #3 in getting them sold. Please call me Kathryn at 239-297-8936 or email me at myrealtorkathryn@gmail.com. or  please visit my website at www.kathrynblackman.com for more information on getting your home ready for sale. Seller's you can now sell your home even if it is not in foreclosure so please list with us. Not in a foreclosure situation but want to sell then put your house on the market ..The buyer's are still here looking for turn key homes to move into that need little or no work to be done. While it is true that the prices have dropped, you can sell if you are realistic in your values...We can sell your home. Call me today!

There is alot of exiting homes available for sale and in the last three months almost 600 were sold. I can help you find exacty what you are looking for especially if you are looking in Cape Coral, Florida. We have numerous foreclosed properties and short sale properties for you too choose. It is so important to BUY NOW because the prices are going up. Most of the offers i have submitted have gotten out bid but that only means that we must act fast. Never give up on your dreams of buying a home here because you will get the deal of a lifetime. You do need to have a financial statement of funds available if you even want to put an offer in for cash. If mortgaging a house you must present a pre-qualification letter when putting in an offer. So come prepared to buy and move into the house of your dreams. These  Ridiculously low prices are creating a frenzy of bidding so do yourself a favour and get in on it now!....call me Kathryn at 239-297-8936 or email me at myrealtorkathryn@gmail.com. If you would like to search my MLS please visit my website at www.kathrynblackman.com for the latest foreclosure list. If you are looking for Gulf Access properties BUY NOW... The Investors are returning to our market and are looking to cash in on the potential to raise value in the future...

Are you looking for a professional to help you secure that dream home. I can help you find exacty what you are looking for especially if you are looking in Cape Coral, Florida. we have numerous foreclosed properties just waiting for a homebuyer. Come visit Cape coral and I will personally take you to all the absolutely great homes that are at rock bottem prices. You do need to have a financial statement of funds available if you even want to put an offer in for cash. If mrtgaging a house you must present a pre-qualification letter when putting in an offer. So come prepared to buy and get the house of your dreams. These prices are creating a frenzy of bidding so do yourself a favour and get in on it now!....call me Kathryn at 239-297-8936 or email me at myrealtorkathryn@gmail.com. If you would like to search my MLS please visit my website at www.kathrynblackman.com.
Good Luck,
Kathryn Blackman