Overwhelming evidence of a recovery in USA & Florida property markets
Both investors and editors can be forgiven for taking positive news stories from property professionals and the official bodies that represent them with a pinch of salt. After all, these people (and I include myself in this bracket) have a vested interest in magnifying any statistic that will attract potential buyers.
However, in the past six months a variety of very authoritative and independent publications have been releasing articles and surveys further confirming that a recovery in the USA property market (and particularly the Florida property market) is strongly underway.
Below you will find a summary of news headlines published on the Torcana news blog. All of these articles were based on information released by The Economist, The Financial Times, the Case Schiller Index, the Federal Reserve, the US Commerce Department and the National Association of Realtors(R). These are all very big and serious organisations.
In other words, the evidence is overwhelming and there can be little debate regarding the general trend of property prices rising, demand increasing, supply falling and rental markets stabilizing.
If you have been waiting for evidence of a recovery, or prices to "bottom out", then this might be the blog you´ve been waiting for.
News Summary: Florida Property
In June 2012, pending sales in Florida were up 31% for existing single-family homes and 23% for townhouse-condo units compared to a year ago. Read more.
As of July 2012, refinancing applications for property in Florida had increased 247 per cent year on year. Read more.
The latest figures released by the Orlando Regional Realtor Association reveals that the average price of a home in Orlando appreciated by 15.7% in the first six months of this year, from $108,000 at the beginning of January to $125,000 at the end of June. Read more.
The median price of all types of property in Orlando at the end of June 2012 had increased by 31.72% compared to the beginning of 2011. Read more.
As of May 2012, pending sales in Florida were up 43.1% for existing single-family homes, and by 33.4% for townhomes and condos. Read more.
Between March and April 2012, the average foreclosure sales price increased by a whopping 5.5%. Read more.
Orlando Regional Realtor Association data reveals that the average price of a residential property in Orlando appreciated by just over 9% in May 2012 compared to May 2011. Read more.
The average price of a home in Orlando appreciated by over 10% in April 2012 compared to the same month last year, according to the Orlando Regional Realtor Association. Read more.
News Summary: USA Property
According to Freddie Mac, the government-backed mortgage company, the average 30-year fixed mortgage rate was 3.49 per cent in July 2012, compared with 4.55 per cent in July 2011 and 5.05 per cent in January 2009. Read more.
According to the National Association of Realtors, purchases of existing homes across the country increased by 13% between May 2011 and May 2012. Read more.
Housing starts in June rose to an annual rate of 760,000 units, the highest level since October 2008, according to the US commerce department. New home construction was up 23.6 per cent year on year. Read more.
According to the latest report from the National Association of Realtors, international property sales increased from $66.4 billion (€51.2 billion/£42.3 billion) in 2011 to $83.2 billion (€67.9 billion/£53 billion) for the year ending March 2012. Read more.
First time buyers accounted for roughly a third of all home sales nationwide in May 2012, according to the National Association of Realtors. Ideally, the percentage should be 40% or more, says Walter Molony, a spokesman for the REALTOR® trade group. Read more.
In June, Case-Schiller reported new home price data that showed a definitive upward move in USA property markets across the country. From March to April, Case-Schiller's 10- and 20-city indexes rose 0.7%, seasonally adjusted. All but three of the tracked markets saw month-on-month increases. Read more.
The latest National Association of Realtors quarterly Housing Affordability Index rose to a record high of 205.9 in the first quarter of this year. This is the first time the quarterly index broke the 200 mark since record keeping began in 1970. According to the index, the median income family, earning just under $61,000 could afford to purchase a property costing $325,500, which is more than double the national median existing single-family home price of $158,100. Read more.
The average sales price of a USA property in April 2012 was $177,400 - up 10.1% from a year earlier. It was the largest median price increase since January 2006 and the 10th consecutive month of year-over-year sales growth. Read more.
Recent figures from the National Association of Realtors revealed that property prices increased in 50% of U.S. cities during the first quarter of this year, up from 20% which recorded price rises in Q4 of 2011. Read more.
The supply of unsold USA property fell to just 144,000 in March - the fewest on records dating to 1963, the latest Case-Schiller data shows. Read more.
Conclusion:
If you are interested in taking advantage of the low prices and stable rental income in Florida, then now is the time to purchase as the recovery is underway and time is running out.
If you´d like to get in touch (investments@torcana.com) we would be delighted to hear from you.
For full details on the real estate offered by Torcana Ltd please visit www.torcana.com