Archives for January 2016

December 2015: Inventory Continues to Shrink While Single Family Home Sales Increase

Single family home sales increased across the Emerald Coast in December, while inventory levels shrank. Condo sales dipped on Okaloosa and Walton counties compared to last year. All sales statistics below compare December 2015 to December 2014.

Single Family Home Sales

Emerald Coast

• Closed sales increased 5.2%
• Pending sales decreased 1.0%
• Median prices increased 2.2%
• Inventory decreased 9.3%
• Months supply decreased 21.8% to 5.7 months of inventory, the lowest since current reporting began in 2011

Okaloosa County

• Closed sales increased 3.2%
• Pending sales increased 8%
• Median prices increased 7%
• Inventory decreased 11.7%
• Months supply decreased 24.7% to 4.6 months of inventory, the lowest since current reporting began in 2011

Walton County

• Closed sales increased 14.1%
• Pending sales decreased 12.4%
• Median prices decreased 2%
• Inventory decreased 6.6%
• Months supply decreased 18.6% to 6.9 months of inventory, the lowest since current reporting began in 2011

Townhouse and Condo Sales

Emerald Coast

• Closed sales increased 5.8%
• Pending sales decreased 2.4%
• Median prices decreased 5.3%
• Inventory increased 1.1%
• Months supply decreased 9.6% to 8.5 months of inventory, the lowest level all year

Okaloosa County

• Closed sales decreased 5.6%
• Pending sales increased 27.5%
• Median prices decreased 31.4% – the biggest drop of 2015, and the lowest dollar amount since April 2014
• Inventory decreased 6.5%
• Months supply decreased 9.6% to 9.5 months of inventory, the lowest level all year

Walton County

• Closed sales decreased 4.3%
• Pending sales decreased 21.3%, the lowest level all year
• Median prices increased 10.3%
• Inventory decreased 4.4%
• Months supply decreased 15.5% to 7.4 months of inventory, the lowest since current reporting began in 2011.

A few things to remember…

The inventory levels for single family homes in Okaloosa County are lower than what is considered healthy. In some price points and specific neighborhoods, this could lead to a seller’s market – requiring higher bids for buyers, as well as more competition for available houses.

A healthy real estate market (meaning neither buyer nor sellers have an “advantage”) is a six to eight month inventory. Below six months, it’s thought to be a seller’s market and above eight months is considered a buyer’s market.

A decline in pending sales can be attributed to the time of year – winter months are not popular for many buyers. It could also be an indication of the lack of available inventory. Pending sales are only an indication of the month ahead. In months with an increase in pending sales, you can expect sales to increase for the following month. A decline in pending sales may be an indication of lower sales the next month. It is not an automatic as sales often take more than 30 days to close.

It’s best to look at the data as part of an on-going trend. If you view the data collected since 2011 for the Emerald Coast, Okaloosa County, and Walton County as a whole, you can get a good feel for what’s happening in the local housing market. Overall, the market has improved greatly and while conditions remain favorable – increasing home values, low interest rates, etc. – fluctuations can still be seen in price, sales, and new listings coming on the market.

All sales data is from the Emerald Coast Association of Realtors® (ECAR) Multiple Listing Service (MLS) and is compiled by Florida Realtors®, the state association for Florida. The Emerald Coast statistics cover both Okaloosa and Walton counties as well as surrounding areas based on the listings entered into the MLS by ECAR MLS participants.

3 Real Estate Issues to Watch in 2016

What will happen with real estate this year? A few predictions are fairly common – rising mortgage interest rates, values, and prices. Read any business article on real estate, and you’ll see something like this.

 

There’s more to real estate than interest rates, values, and prices, though. Take a look at these three real estate issues to watch in 2016.

 

More Sellers Means More Inventory

 

Inventory has been shrinking for more than a year. In some price points, this has lowered sales dramatically as there are not enough available homes for sales for the buyers who want to own a new home. But there is good news. In a recent study by Fannie Mae, the Home Purchase Sentiment Index, 40 percent said now was a good time to sell a home.

 

For the second time in the study’s history, 85 percent of people said they weren’t worried about losing their jobs, while 15 percent said their income was significantly higher than the year before. This spells good news for potential buyers out there wondering where the inventory may be, and if they’ll find the home of their dreams.

 

First-Time Home Buyers May Remain Low

 

Historically, first-time home buyers make up nearly 40 percent of all home buyers in a given year. Since the recession, that number has dropped dramatically and hovers closer to 30 percent. This is important because new home buyers help drive real estate sales.

 

Millennials now surpass Baby Boomers as the largest demographic in the United States. Due to high student loan debt when they graduate college and rising rental costs, saving for a downpayment has become more and more difficult. Younger buyers want to buy homes but are waiting longer.

 

Rent-to-Own May Become More Popular

 

As rental costs rise and potential buyers must wait longer to save up the money they need, programs are popping up around the country to help renters become owners. Rent-to-own organizations, like Home Partners for America, Invitation Home, and American Homes 4 Rent, most common in larger metropolitan areas, buy the homes and rent them with the understanding that over time, the renter will buy the home from the organization.

 

While not common in places like the Emerald Coast, we may start seeing more and more of this become available for renters to help them buy their dream home. Each organization has their own criteria and not everyone will qualify. For those who do, they’re likely to live in nicer homes in better neighborhoods, making the ability to eventually own the home much more attractive.

 

For those who watch real estate trends and follow along with what’s happening in the industry, you know that no one thing makes or breaks real estate sales and home values or prices. These emerging issues may mak

6 Ways to Make Your Home Smarter

Image via Kozzi

 

Who remembers watching the Jetsons and wishing for their own flying car? We’re not quite at that point just yet, even though plenty of spaces have moving sidewalks and robots aren’t unusual anymore, although I’m sure most of us wouldn’t mind our own Rosie. We might not be able to make our cartoon memories a reality (yet) but there are plenty of ways to make your home a little smarter.

 

Keyless Technology

 

Try something like the August Smart Lock and you’ll be able to use your phone to let people into your home, unlock your door as you carry seven bags of groceries (in one hand), and even keep a record of who’s coming and going and at what times throughout the day.

 

Lighting

 

Who wants to be blinded when you turn on your lights in the morning? With products like Phillips Hue, you can use smart lighting to have your lights come on gradually when you first wake up. If that’s not enough of a reason, smart lighting also lets you set times when your lights should turn on or off throughout the day.

 

Home Automation

 

Full home-automation system, like Insteon, give you remote control from a web browser or your mobile device to control your heating and air conditioning, irrigation systems (no need to run the sprinklers if it’s already raining), your lights, and even your appliances.

 

Smart TVs

 

Walk through a big box store, and you’ll see more and more smart televisions. Who sits down in front of the TV just to watch a show anymore? Now you can get online, check your Facebook page, and do almost everything you’d do on your computer – from your TV and with a great picture, too.

 

Smart Appliances

 

Whether it’s the smart dishwasher from Bosch or the smart washer and dryer from LG, even our appliances are getting smarter and more high-tech. Use less energy, start your load from anywhere, and keep track of the cycles and usage even when you’re not at home.

 

Thermostats

 

Whether it’s a smart thermostat by Carrier or the Nest Thermostat from Google, keeping your home warm or cool keeps getting easier. Smart thermostats adapt to your movements, let you monitor energy use, and can be pre-set to create the right temperature you need when you wake up, get home, and right before bed. Best of all, you can do it all from your phone or tablet.

 

Smart technology makes your life easier, and when you’re ready to sell, it can help increase the value of your home. Just a tip – when you put your home on the market, show your real estate agent how to use your smart technology. It’s hard to show off the great features of a home when we don’t know how to turn the lights on!

 

Source:

 

9 Ways to Turn Your House into a Smart Home, BobVila.com

How to Make a Smart Home from a Dumb One, PCMag.com

 

 

Want to Buy a Home in 2016? Do These 5 Things To Get Ready

Image via Kozzi

It’s a new year – a time to think about what you want to accomplish in the weeks and months ahead. If one of your New Year’s resolutions is to buy a home at some point in 2016, there are a few things you’ll need to do before you look for a house.

Take a look at this list, and get yourself ready to find the home of your dreams this year!

Check your credit. Everyone is entitled to one free report from each of the three major credit bureaus each year. Get yours now, and look for mistakes, errors, or old debt you’ve forgotten about. Start dealing with any issues now so that you’ll qualify for a good interest rate on your mortgage later.

Be realistic about your budget. Ideally, your housing costs shouldn’t exceed 30 percent of your income. This includes mortgage, taxes, insurance, maintenance, and even utilities. If your ideal home is out of your price range, you can do a few things:

• Save more for a larger down payment.
• Adjust your expectations and find something within your budget.
• Wait until your income increases.

Don’t try to buy a home that will leave you house poor and with no extra income for emergencies or even the occasional latte.

Look into assistance programs. Most buyer assistance programs are for first-time homebuyers. If you haven’t owned a home for several years, you may qualify, too. Find out if you qualify and what you need to do before you start shopping. The Escambia County Housing Finance Authority offers assistance in Escambia, Santa Rosa, Okaloosa, and Walton counties.

Take a look at your savings. Even if you qualify for a three or five percent down payment with your mortgage, you’ll need to have enough in savings to cover additional closing costs and still have some left over. Most lenders don’t like to see your entire savings account wiped out when you purchase a home. Keep saving, and don’t stop – even after you’ve moved in.

Talk to a lender before you start looking for a house. Every lender is a little different, and most will be happy to talk to you about the prequalification and preapproval process. Neither is a guarantee of a loan but will give you an idea of the possible interest rate and loan amount you may qualify for. It’s a good idea to shop around to find the best possible rate and mortgage instead of sticking with the first company you find.

In today’s market with lower inventory and high quality homes selling quickly – and receiving multiple offers – it pays to have your finances in order before you even start looking. When you know how much you can afford and what kind of mortgage you may qualify for, you’ll be in a better position to buy the home of your dreams.