Wednesday, August 27, 2008
The sun is out again...
...after TS Fay left her mark on the state, everybody here at 7220 International Drive, breathed a sigh of relief when the sun finally came out again and (touch wood!) has stayed out ever since. We're looking at the caribbean as Gustav may yet turn into a hurricane and head this way but, so far, so good! Everybody at MRI Overseas Property is taking full advantage of the sun and warmth.
Florida consumer confidence rises six points
Florida consumer confidence rises six points
GAINESVILLE, Fla. – Aug. 27, 2008 – Consumer confidence among Floridians made huge gains in August, rising six points to 67 from its revised July index, suggesting a turning point as state residents come to grips with the bleak economic picture, a new University of Florida study finds.
Four of the five index components rose – two by double-digits – and the remaining one was unchanged. The overall index is eight points higher than June’s reading of 59, which was the lowest in the survey’s 25-year history. The July index rose by two points to 61, one point higher than the preliminary index that was reported last month.
“It looks like June will be the low point for consumer confidence,” says Chris McCarty, director of UF’s Survey Research Center at the Bureau of Economic and Business Research. “Consumers in Florida have now absorbed most of the bad economic news. Although gas prices are coming down a bit, consumers have now adjusted to higher prices. Much of the pain from the housing downturn has also been absorbed. At this point, most people are looking forward to a turnaround in the economy some time next year.”
There are signs that housing prices are beginning to stabilize in the Sunshine State, McCarty says.
“While prices in Florida markets are still declining, the pace of the declines has slowed,” he said. “Overall, the median price of a home in Florida, excluding condos, is beginning to flatten.”
McCarty said he believes retrospective data will show that home prices bottomed out in July for most Florida markets and that stabilization of housing prices will ultimately lead to stability in financial markets.
Just as the housing crisis affected people’s attitudes about the economy, retail sales have dipped with the drop in consumer confidence, McCarty said.
“Florida’s sale tax revenues have continually declined, time and again falling under levels forecast by state economists,” he said.
Department stores are struggling against competition from low-cost chains, and further changes in the retail sector are likely as baby boomers migrate to Florida to retire over the next decade, altering the state’s demographic profile, he said.
“We will no doubt have a very weak holiday season, but many people are looking past that to better times,” he said of the state’s retail markets.
McCarty said he believes the overall reading for consumer confidence will remain below 70 over the next few months but will not fall below 60, as it did two months ago, or even near it.
“In the short run, I expect consumer confidence to be volatile, reacting to gasoline prices and the stock market,” he said. “I don’t think we will see another low like June any time soon, but I also don’t believe the economic correction is completely over and that consumer confidence is on a trend upward.”
The largest increase among the five components this month was in expectations about U.S. economic conditions over the next year, which rose 12 points to 63. That component had been holding steady at 51 for the prior three months. Expectations about U.S. economic conditions over the next five years also made big gains, increasing by 10 points to 78.
Among the other categories, perceptions of personal finances now compared with a year ago rose five points to 51, while perceptions of personal finances a year from now rose three points to 83. Perceptions as to whether it is a good time to buy big-ticket items remained unchanged at 59.
The research center conducts the Florida Consumer Attitude Survey monthly. Respondents are 18 or older and live in households telephoned randomly. The preliminary index for August was conducted from 405 responses.
Consumer confidence is designed to help predict buying patterns by measuring the mood of consumers toward purchasing. Although other economic indicators also predict buying patterns, consumer confidence tends to be available sooner. Based on the University of Michigan method, the index is benchmarked to 1966, so a value of 100 represents the same level of confidence for that year. The value of the index is in comparing changes over time rather than looking at an isolated month.
© 2008 FLORIDA ASSOCIATION OF REALTORS®
GAINESVILLE, Fla. – Aug. 27, 2008 – Consumer confidence among Floridians made huge gains in August, rising six points to 67 from its revised July index, suggesting a turning point as state residents come to grips with the bleak economic picture, a new University of Florida study finds.
Four of the five index components rose – two by double-digits – and the remaining one was unchanged. The overall index is eight points higher than June’s reading of 59, which was the lowest in the survey’s 25-year history. The July index rose by two points to 61, one point higher than the preliminary index that was reported last month.
“It looks like June will be the low point for consumer confidence,” says Chris McCarty, director of UF’s Survey Research Center at the Bureau of Economic and Business Research. “Consumers in Florida have now absorbed most of the bad economic news. Although gas prices are coming down a bit, consumers have now adjusted to higher prices. Much of the pain from the housing downturn has also been absorbed. At this point, most people are looking forward to a turnaround in the economy some time next year.”
There are signs that housing prices are beginning to stabilize in the Sunshine State, McCarty says.
“While prices in Florida markets are still declining, the pace of the declines has slowed,” he said. “Overall, the median price of a home in Florida, excluding condos, is beginning to flatten.”
McCarty said he believes retrospective data will show that home prices bottomed out in July for most Florida markets and that stabilization of housing prices will ultimately lead to stability in financial markets.
Just as the housing crisis affected people’s attitudes about the economy, retail sales have dipped with the drop in consumer confidence, McCarty said.
“Florida’s sale tax revenues have continually declined, time and again falling under levels forecast by state economists,” he said.
Department stores are struggling against competition from low-cost chains, and further changes in the retail sector are likely as baby boomers migrate to Florida to retire over the next decade, altering the state’s demographic profile, he said.
“We will no doubt have a very weak holiday season, but many people are looking past that to better times,” he said of the state’s retail markets.
McCarty said he believes the overall reading for consumer confidence will remain below 70 over the next few months but will not fall below 60, as it did two months ago, or even near it.
“In the short run, I expect consumer confidence to be volatile, reacting to gasoline prices and the stock market,” he said. “I don’t think we will see another low like June any time soon, but I also don’t believe the economic correction is completely over and that consumer confidence is on a trend upward.”
The largest increase among the five components this month was in expectations about U.S. economic conditions over the next year, which rose 12 points to 63. That component had been holding steady at 51 for the prior three months. Expectations about U.S. economic conditions over the next five years also made big gains, increasing by 10 points to 78.
Among the other categories, perceptions of personal finances now compared with a year ago rose five points to 51, while perceptions of personal finances a year from now rose three points to 83. Perceptions as to whether it is a good time to buy big-ticket items remained unchanged at 59.
The research center conducts the Florida Consumer Attitude Survey monthly. Respondents are 18 or older and live in households telephoned randomly. The preliminary index for August was conducted from 405 responses.
Consumer confidence is designed to help predict buying patterns by measuring the mood of consumers toward purchasing. Although other economic indicators also predict buying patterns, consumer confidence tends to be available sooner. Based on the University of Michigan method, the index is benchmarked to 1966, so a value of 100 represents the same level of confidence for that year. The value of the index is in comparing changes over time rather than looking at an isolated month.
© 2008 FLORIDA ASSOCIATION OF REALTORS®
Overseas buyers in Florida
REALTORS® Report Foreigners Come to America to Buy Homes
WASHINGTON, August 07, 2008
International real estate purchases in the U.S. continue to be a significant share of business for many Realtors, according to the 2008 National Association of Realtors® Profile of International Home Buying Activity.
This new research indicates that international buying activity in the U.S. is widespread. NAR estimates that between 150,000 and 190,000 homes were sold to foreign nationals from May 2007 to May 2008. Recent foreign buyers purchased properties in every state and the District of Columbia. The most popular states where international buyers purchased homes are Florida, California and Texas. Arizona, New York, Washington and Nevada were also popular.
“As the most trusted resource for real estate information, Realtors® have long understood what this latest research confirms – the U.S. housing industry truly has no boundaries,” said NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif.
The typical international buyer purchased a single-family vacation home costing $297,400. Four in 10 paid for their U.S. property with cash, compared with 7 percent for all domestic buyers. The typical international owner stayed at his or her U.S. property for 2.6 months during the year, according to the NAR findings.
Foreign exchange rates have helped make U.S. homes more affordable for international buyers. The euro, for example, has strengthened 24 percent versus the U.S. dollar over the past two years. Home prices are also now more affordable in places such as Florida and Arizona, contributing to those states’ popularity among foreign buyers.
“Many international buyers recognize that real estate is an excellent investment and are drawn today by abundant inventory, low interest rates and a softer dollar. These conditions allow them to own their own a piece of the American dream,” Gaylord said.
International buyers are distinct from domestic buyers. International buyers tend to purchase more expensive properties, which cost an average of 36 percent more than the typical domestic buyer’s home purchase. In fact, more than 14 percent of properties sold to international buyers sold in excess of $750,000. Foreign buyers also show a greater preference for condos and townhouses compared to domestic buyers.
People from North America, Europe and Asia accounted for more than 85 percent of recent foreign home buying transactions. The top six countries of origin for foreign home buyers, in rank order, were Canada, the United Kingdom, Mexico, China, India and Germany. This year, Canada replaced Mexico as the country with the largest share of foreign buyers in the U.S. The percentage of Canadian buyers doubled from last year, from 11 percent to 23.5 percent.
“This survey confirms a pattern that we have observed for some years in Florida and other markets that are attracting buyers from overseas,” said Tony Macaluso, 2008 chair of NAR’s international business group. “This latest research enhances our understanding of this audience and provides insight for the increasing number of Realtors® with international clients.”
Of the Realtors® surveyed, 26 percent served international clients in the past year and about half of those clients ended up purchasing a home. The primary reasons some clients did not eventually buy a house were home price concerns, immigration laws, and property taxes. “If visa regulations that favor longer stays for overseas buyers such as retirees from abroad were in place, these sales levels would be even higher,” Macaluso said.
Realtors® who have sold homes to international clients reported that their transactions with these clients accounted for about 16 percent of their entire business. For about 8 percent of Realtors® who work with foreign buyers, more than half of their transactions were international sales.
The 2008 NAR Profile of International Home Buying Activity is based on responses from approximately 4,000 Realtors® who serve foreign buyers. It describes international home buying activity in the U.S. over the 12-month period from May 2007 to May 2008 and updates information from the 2007 survey. The full report is available from NAR’s Research Division or at www.realtor.org/research/research/reportsintl.
WASHINGTON, August 07, 2008
International real estate purchases in the U.S. continue to be a significant share of business for many Realtors, according to the 2008 National Association of Realtors® Profile of International Home Buying Activity.
This new research indicates that international buying activity in the U.S. is widespread. NAR estimates that between 150,000 and 190,000 homes were sold to foreign nationals from May 2007 to May 2008. Recent foreign buyers purchased properties in every state and the District of Columbia. The most popular states where international buyers purchased homes are Florida, California and Texas. Arizona, New York, Washington and Nevada were also popular.
“As the most trusted resource for real estate information, Realtors® have long understood what this latest research confirms – the U.S. housing industry truly has no boundaries,” said NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif.
The typical international buyer purchased a single-family vacation home costing $297,400. Four in 10 paid for their U.S. property with cash, compared with 7 percent for all domestic buyers. The typical international owner stayed at his or her U.S. property for 2.6 months during the year, according to the NAR findings.
Foreign exchange rates have helped make U.S. homes more affordable for international buyers. The euro, for example, has strengthened 24 percent versus the U.S. dollar over the past two years. Home prices are also now more affordable in places such as Florida and Arizona, contributing to those states’ popularity among foreign buyers.
“Many international buyers recognize that real estate is an excellent investment and are drawn today by abundant inventory, low interest rates and a softer dollar. These conditions allow them to own their own a piece of the American dream,” Gaylord said.
International buyers are distinct from domestic buyers. International buyers tend to purchase more expensive properties, which cost an average of 36 percent more than the typical domestic buyer’s home purchase. In fact, more than 14 percent of properties sold to international buyers sold in excess of $750,000. Foreign buyers also show a greater preference for condos and townhouses compared to domestic buyers.
People from North America, Europe and Asia accounted for more than 85 percent of recent foreign home buying transactions. The top six countries of origin for foreign home buyers, in rank order, were Canada, the United Kingdom, Mexico, China, India and Germany. This year, Canada replaced Mexico as the country with the largest share of foreign buyers in the U.S. The percentage of Canadian buyers doubled from last year, from 11 percent to 23.5 percent.
“This survey confirms a pattern that we have observed for some years in Florida and other markets that are attracting buyers from overseas,” said Tony Macaluso, 2008 chair of NAR’s international business group. “This latest research enhances our understanding of this audience and provides insight for the increasing number of Realtors® with international clients.”
Of the Realtors® surveyed, 26 percent served international clients in the past year and about half of those clients ended up purchasing a home. The primary reasons some clients did not eventually buy a house were home price concerns, immigration laws, and property taxes. “If visa regulations that favor longer stays for overseas buyers such as retirees from abroad were in place, these sales levels would be even higher,” Macaluso said.
Realtors® who have sold homes to international clients reported that their transactions with these clients accounted for about 16 percent of their entire business. For about 8 percent of Realtors® who work with foreign buyers, more than half of their transactions were international sales.
The 2008 NAR Profile of International Home Buying Activity is based on responses from approximately 4,000 Realtors® who serve foreign buyers. It describes international home buying activity in the U.S. over the 12-month period from May 2007 to May 2008 and updates information from the 2007 survey. The full report is available from NAR’s Research Division or at www.realtor.org/research/research/reportsintl.
Tuesday, August 26, 2008
Orlando market picks up in July
The Orlando housing market saw an improvement in July sales when compared with the previous year, according to the latest report from the Florida Association of Realtors.
Existing single-family home sales in the Orlando area were up 11.6 percent in July, from 1,484 in July 2007 to 1,656 last month. The median sales price of an existing home fell 19 percent, from $258,000 in July of last year to $209,100 last month.
Condominium resales, however, fell 15.6 percent, from 179 last July to 151 in July 2008. The median price of an existing condo also dropped to $121,900, a 17.5 percent decline from July 2007's $147,700.
Meanwhile, the Daytona Beach area saw a 3.5 percent increase in July existing home sales, from 575 in July 2007 to 595 last month. The existing sales price on a Daytona market home fell to $171,100, a 16 percent decline from last July's $204,600.
Condo resales totaled 103 in the Daytona Beach MSA last month, a 13 percent improvement from the 91 resales posted in July 2007. The median price of $265,600 for a Daytona Beach area condo showed a 17 percent decline from July 2007's $320,600.
Statewide, a total of 11,498 existing single-family homes sold last month, a nearly 1 percent improvement over the 11,492 homes sold in July 2007. Florida's median sales price for existing homes last month was $193,600, 19 percent less than the $238,900 reported in the same month a year prior.
Condo resales in Florida totaled 3,375, a 7 percent drop when compared with the 3,641 sold in July 2007. The statewide median sales price fell 13 percent, from $194,100 in July 2007 to $168,500 last month.
Existing single-family home sales in the Orlando area were up 11.6 percent in July, from 1,484 in July 2007 to 1,656 last month. The median sales price of an existing home fell 19 percent, from $258,000 in July of last year to $209,100 last month.
Condominium resales, however, fell 15.6 percent, from 179 last July to 151 in July 2008. The median price of an existing condo also dropped to $121,900, a 17.5 percent decline from July 2007's $147,700.
Meanwhile, the Daytona Beach area saw a 3.5 percent increase in July existing home sales, from 575 in July 2007 to 595 last month. The existing sales price on a Daytona market home fell to $171,100, a 16 percent decline from last July's $204,600.
Condo resales totaled 103 in the Daytona Beach MSA last month, a 13 percent improvement from the 91 resales posted in July 2007. The median price of $265,600 for a Daytona Beach area condo showed a 17 percent decline from July 2007's $320,600.
Statewide, a total of 11,498 existing single-family homes sold last month, a nearly 1 percent improvement over the 11,492 homes sold in July 2007. Florida's median sales price for existing homes last month was $193,600, 19 percent less than the $238,900 reported in the same month a year prior.
Condo resales in Florida totaled 3,375, a 7 percent drop when compared with the 3,641 sold in July 2007. The statewide median sales price fell 13 percent, from $194,100 in July 2007 to $168,500 last month.
Thursday, August 21, 2008
Press release: Leading Real Estate Company Withdraws from UK Trade Body over Impartiality Concerns
21 August 2008
FOR IMMEDIATE RELEASE
Leading Real Estate Company Withdraws from UK Trade Body over Impartiality Concerns
SPAIN, MARBELLA
A leading real estate company has withdrawn its membership of the UK’s National Association of Estate Agents (NAEA), due to concerns that the body is be being used as a platform for libellous comments against it.
MRI Overseas Property, the largest overseas real estate firm in Europe, announced the move today having been refused the adjournment of an NAEA hearing.
The company says it requested the adjournment in order to collate and present evidence that it claimed would bring into question the “motivation and good faith” of the complainants.
It also wanted sufficient time to collate this evidence in order to instigate legal action against the perpetrators.
Dominic Pickering, the company’s chief operating officer, said:
“The NAEA took the wholly unreasonable decision to proceed with this hearing, despite being informed of the very serious matters we have uncovered. They have not been able to provide us with any justification for this approach.
“As such, and given that the NAEA claims to represent the interests of its members, I am simply at a loss to understand how they can consider it appropriate to deprive us of a fair hearing in this way.
“In the circumstances, I have entirely lost faith in the processes and authority of the NAEA, and I have regrettably concluded that we can no longer remain associated with them.”
He added: “The NAEA has sadly failed to demonstrate its impartial position, and even after it was provided with information showing its failings, it refused to correct the situation.”
EDITORS’ NOTES
The MRI Group
MRI Overseas Property is a member of the MRI Group, and has offices in 18 countries. The MRI Group has interests in property construction, sales, resales and rental, and owns a UK property television channel, OPTV (satellite 287). The company was founded in 2000 and has its head office in Marbella, Spain.
Internet: www.themrigroup.com
Email: dominic.pickering@mrioverseasproperty.com
Tel: +34 952 90 11 66
National Association of Estate Agents
The National Association of Estate Agents states that its “key roles include providing help and guidance for property professionals across a broad spectrum of disciplines while continually campaigning to make the property market more efficient and user-friendly for the home buying and selling public.”
Internet: www.naea.co.uk
Email: info@naea.co.uk
Tel: +44 (0)1926 496800
FOR IMMEDIATE RELEASE
Leading Real Estate Company Withdraws from UK Trade Body over Impartiality Concerns
SPAIN, MARBELLA
A leading real estate company has withdrawn its membership of the UK’s National Association of Estate Agents (NAEA), due to concerns that the body is be being used as a platform for libellous comments against it.
MRI Overseas Property, the largest overseas real estate firm in Europe, announced the move today having been refused the adjournment of an NAEA hearing.
The company says it requested the adjournment in order to collate and present evidence that it claimed would bring into question the “motivation and good faith” of the complainants.
It also wanted sufficient time to collate this evidence in order to instigate legal action against the perpetrators.
Dominic Pickering, the company’s chief operating officer, said:
“The NAEA took the wholly unreasonable decision to proceed with this hearing, despite being informed of the very serious matters we have uncovered. They have not been able to provide us with any justification for this approach.
“As such, and given that the NAEA claims to represent the interests of its members, I am simply at a loss to understand how they can consider it appropriate to deprive us of a fair hearing in this way.
“In the circumstances, I have entirely lost faith in the processes and authority of the NAEA, and I have regrettably concluded that we can no longer remain associated with them.”
He added: “The NAEA has sadly failed to demonstrate its impartial position, and even after it was provided with information showing its failings, it refused to correct the situation.”
EDITORS’ NOTES
The MRI Group
MRI Overseas Property is a member of the MRI Group, and has offices in 18 countries. The MRI Group has interests in property construction, sales, resales and rental, and owns a UK property television channel, OPTV (satellite 287). The company was founded in 2000 and has its head office in Marbella, Spain.
Internet: www.themrigroup.com
Email: dominic.pickering@mrioverseasproperty.com
Tel: +34 952 90 11 66
National Association of Estate Agents
The National Association of Estate Agents states that its “key roles include providing help and guidance for property professionals across a broad spectrum of disciplines while continually campaigning to make the property market more efficient and user-friendly for the home buying and selling public.”
Internet: www.naea.co.uk
Email: info@naea.co.uk
Tel: +44 (0)1926 496800
Tablet PCs in real estate- a great example of success
In my years of using Tablet PCs and dealing with folks who are wondering what the technology can do for them I have shown them to a lot of people in the real estate business.' Real estate dealings are the perfect setting for using the Tablet technology given all the paperwork involved and the need to exchange it rapidly.' Every time I have shown the Tablet to a realtor they have never failed to be impressed but even given a good demonstration very few end up adopting it for their own business.' This is something that has always confused me but this excellent video that shows how the Tablet technology can be leveraged by an actual realtor should do the trick.' It is readily apparent how the Tablet changes the complexion of a complex real estate transaction with the right software.' Have a look at it and see if you agree.' Interesting things of note: the realtor seems to always work with the Tablet in landscape orientation rather than portrait and she always closes it in laptop mode even though she seems to usually use it in slate mode.' She might be protecting the screen but I think it would be quicker to put it in the bag in slate mode for next time.
Wednesday, August 20, 2008
Press release: MRI Overseas Property and NAEA
19 August 2008
FOR IMMEDIATE RELEASE
Estate Agents' Body “Hijacked” by Outside Groups, Real Estate Firm Claims
SPAIN, MARBELLA – August 19, 2008
A leading real estate company is considering whether to continue as a member of the National Association of Estate Agents (NAEA), due to concerns that the body may be being used as a platform for libellous comments against it.
MRI Overseas Property, the largest overseas real estate firm in Europe, has expressed its “astonishment and concern” at recent actions by the UK-based NAEA.
Dominic Pickering, MRI Overseas Property’s chief operating officer, said:
“MRI has always been a great believer in professional associations, but only if they are used in the correct way.
“We have a real concern that the NAEA’s impartiality as an industry body is being hijacked by a number of outside interests acting together.
“We are hoping that the NAEA can demonstrate it is not being affected by these outside forces, but if it cannot, we will have no option but to take further action to protect our reputation as necessary.”
EDITORS’ NOTES
The MRI Group
MRI Overseas Property is a member of the MRI Group, and has offices in 18 countries. The MRI Group has interests in property construction, sales, resales and rental, and owns a UK property television channel, OPTV (satellite 287). The company was founded in 2000 and has its head office in Marbella, Spain.
Internet: www.themrigroup.com
Email: dominic.pickering@mrioverseasproperty.com
Tel: +34 952 90 11 66
National Association of Estate Agents
The National Association of Estate Agents states that its “key roles include providing help and guidance for property professionals across a broad spectrum of disciplines while continually campaigning to make the property market more efficient and user-friendly for the home buying and selling public.”
Internet: www.naea.co.uk
Email: info@naea.co.uk
Tel: +44 (0)1926 496800
FOR IMMEDIATE RELEASE
Estate Agents' Body “Hijacked” by Outside Groups, Real Estate Firm Claims
SPAIN, MARBELLA – August 19, 2008
A leading real estate company is considering whether to continue as a member of the National Association of Estate Agents (NAEA), due to concerns that the body may be being used as a platform for libellous comments against it.
MRI Overseas Property, the largest overseas real estate firm in Europe, has expressed its “astonishment and concern” at recent actions by the UK-based NAEA.
Dominic Pickering, MRI Overseas Property’s chief operating officer, said:
“MRI has always been a great believer in professional associations, but only if they are used in the correct way.
“We have a real concern that the NAEA’s impartiality as an industry body is being hijacked by a number of outside interests acting together.
“We are hoping that the NAEA can demonstrate it is not being affected by these outside forces, but if it cannot, we will have no option but to take further action to protect our reputation as necessary.”
EDITORS’ NOTES
The MRI Group
MRI Overseas Property is a member of the MRI Group, and has offices in 18 countries. The MRI Group has interests in property construction, sales, resales and rental, and owns a UK property television channel, OPTV (satellite 287). The company was founded in 2000 and has its head office in Marbella, Spain.
Internet: www.themrigroup.com
Email: dominic.pickering@mrioverseasproperty.com
Tel: +34 952 90 11 66
National Association of Estate Agents
The National Association of Estate Agents states that its “key roles include providing help and guidance for property professionals across a broad spectrum of disciplines while continually campaigning to make the property market more efficient and user-friendly for the home buying and selling public.”
Internet: www.naea.co.uk
Email: info@naea.co.uk
Tel: +44 (0)1926 496800
Tuesday, August 19, 2008
Watch that niche...
Here at MRI Overseas Property, we're not seeing any downturn in demand but some of these points apply even to us!
Developing a new market niche is one of the best ways to build your real estate business. By focusing on these opportunities, you can enhance your expertise, help clients more effectively and distinguish yourself from the competition. Here are several strategies for success in serving target markets that can help you generate more income in 2008.
Scratch that niche: You might like it
International Sales
Throughout Florida, Europeans, Canadians and Latin Americans are buying homes, both primary residences for their families and second homes for vacations. Many overseas buyers are seeking second homes, while others are looking to move capital out of their native countries or make long-term investments. A recent survey by the National Association of Realtors® (NAR) found that Florida led the nation in international buyers with 26 percent of total U.S. sales in 2006. Why? The weak U.S. dollar makes Florida homes a bargain for Europeans and gives Canadians more buying power. Latin Americans like to invest in the U.S. and recognize that now is an ideal time to buy lower-priced properties.
Advice from an international sales expert
Key benefit: International buyers are ready, willing and able to purchase Florida homes and condominiums.
Fundamentals for success: Knowledge of your local second-home market and international buyer groups (Europeans, Canadians, etc.). An effective targeted marketing program reaching (A) international second-home residents in your market and (B) potential buyers overseas using search engine placements and other web tools. Knowledge of a foreign language (by at least one team member).
Good first steps: Join an international chamber in your area. Team up with a mortgage broker or attorney who works with international clients. Start building relationships with recent international buyers in your community.
Reaching this market: Study international buying patterns in your market. Add “international-friendly” features to your web site and online market program.
Time frame to become marketable: Less than a year
Longer-term goal: Earn NAR’s Certified International Property Specialist (CIPS) designation. Learn more: http://www.realtor.org/cipshome.nsf/pages/AboutCIPS
Tip from a pro: “You need to understand the different cultures and be able to explain how U.S. real estate works. When you factor in the exchange rates, our state can offer tremendous bargains for many international buyers.” - Charles Dinsmore, CIPS, broker-associate, RE/MAX Partners, Fort Lauderdale
Short Sales
Many Florida real estate professionals today are helping sellers in financial distress. They give hope to homeowners facing foreclosure by explaining their options, such as a “short sale,” when the market price for a home is less than the amount due on the mortgage. Recent statistics compiled by RealtyTrac, which tracks foreclosures throughout the country, show Florida had one foreclosure for every 95 households, the third highest rate in the U.S. This includes homes whose owners received a “notice of default” from the lender as well as homes that have actually gone into foreclosure. In third-quarter 2007, there were 60,992 such properties in Florida, according to RealtyTrac — more than double the number reported in third quarter 2006. For real estate associates, an owner in financial difficulty usually is a highly motivated seller, hoping to resolve the situation prior to foreclosure.
What is a short sale? Many owners holding adjustable rate mortgages (ARMs) or interest-only loans are facing higher monthly payments. If market prices have declined as well, a seller may have no equity in the home — sometimes called an “upside down” sales situation. In a short sale, the owner asks the mortgage lender to accept a loan payoff that is less than the total amount due. Basically, the seller’s net proceeds from the transaction will not be enough to cover the mortgage obligations and closing costs. To request a short sale, the owner typically presents the lender with evidence of financial hardship and a current market estimate of the home’s price. Any potential short sale is contingent on the lender’s approval. Learn more about Short Sales seminars
Key benefit: In addition to generating an immediate sale, helping a motivated seller in a crisis can create a “client for life” relationship leading to future sales and referrals.
Fundamentals for success: Ability to do quick financial calculations and clearly explain the advantages and disadvantages of a seller’s various options.
Good first steps: Educate yourself on the pre-foreclosure options. Talk with your broker and understand an associate’s role in the process. Build a professional relationship with an experienced mortgage broker. Learn more.
Reaching this market: Advertise yourself as a “short sales” specialist. Make cold calls or knock on doors in your target neighborhoods. In listing presentations, try to assess the seller’s financial situation.
Time frame to become marketable: Time to understand the pre-foreclosure process, which could be a few days or weeks.
Longer-term goal: Generate repeat business with loyal sellers who may be able to buy another home in the future.
Tip from a pro: “Normally, owners don’t say, ‘I can’t make my payments,’ so the associate should ask about the type of loan, the rate and if there have been any recent changes.” - Mike Pappas, president, The Keyes Company, Miami
Foreclosures
Throughout Florida, foreclosures are rising quickly as homeowners struggle to keep up with their monthly mortgage payments. According to RealtyTrac, the incidence of foreclosures will remain high and may possibly increase thanks to the number of loans due to reset through the middle of 2008 and the continuing weakness in home sales. Florida sales associates can get a piece of the action by working with renters seeking an inexpensive first home, “handyman” types who want to repair and resell a fixer-upper and investors seeking income-producing properties. Working directly with lenders on sales of real estate-owned (REO) or bank-owned foreclosures is a highly specialized field that usually requires a corporate approach.
Key benefit: A foreclosure buyer may decide to list the property again in the near future for a “move-up” or a profitable resale.
Fundamentals for success: Ability to assess a property’s condition and the costs necessary for repair or renovation.
Good first steps: Go to a Web site that lists foreclosed properties to get a better understanding of what’s available in your market. Some sites include, www.foreclosure.com, www.realtytrac.com/ and www.foreclosurefreesearch.com.
Reaching this market: Advertise yourself to buyers as a foreclosure specialist. Include links to foreclosure sites on your Web site.
Time frame to become marketable: You can start working with buyers almost immediately.
Longer-term goal: Generate repeat business with new owners who may list their home in the near future or seek to purchase other investment properties.
Tip from a pro: “This is a great opportunity to bring first-time buyers into the market. Prices are not giveaways, but they are often below the normal selling prices because the banks want to move the property.” – Eduardo J. San Roman, president and CEO, First Service Realty-GMAC Real Estate, Miami
New Home Sales
With excess inventory and a wait-and-see attitude on the part of buyers, Florida builders and developers need all the help they can get to find qualified buyers. The National Association of Home Builders estimates that 1.08 million new U.S. homes will be started in 2008. About 125,000 of those homes and condos will be in Florida, estimates Orlando economist Hank Fishkind, president, Fishkind & Associates. That’s in addition to a statewide inventory of several hundred thousand newly built residences that remain unsold. At the same time, many savvy buyers appreciate working with real estate professionals who can help them take advantage of builder incentives and special financing opportunities in Florida’s new subdivisions and multifamily communities.
Key benefit: Rather than work with an individual seller, you can represent a builder or developer offering multiple homes or condominiums who can construct more residences in the future.
Fundamentals for success: General knowledge of new construction. Familiarity with a builder’s models, subdivisions or condominium developments.
Good first steps: Start touring new home communities and condo developments. Introduce yourself to the sales team and register as a participating sales associate or broker. Post the new-home offerings on your Web site.
Reaching this market: Look for well-established builders and developers who stand behind their product. Visit their communities and sales centers. Build a personal relationship with the in-house sales team (large community), or directly with the developer or builder (smaller projects and individual spec homes).
Time frame to become marketable: One to two months to familiarize yourself with the sales team and community.
Longer-term goal: Eventually, you could work for the builder or developer full-time as a broker or sales manager.
Tip from a pro: “Most new community developers have generous co-op broker programs today. You should know these communities like the back of your hand, and include information about these opportunities on your Web site.” – Real estate analyst Lewis Goodkin, president, Goodkin Consulting, Miami
Property Management
Investing in Florida real estate is one thing. Managing it is another. Many who invest in apartment buildings, individual condo units, shopping centers, office buildings and other types of income-producing properties need someone else to manage their holdings. Many large public companies and real estate investment trusts (REITs) are also getting into the Florida market. Owners usually commission property management firms staffed by people with a solid background in real estate. For those who enjoy the sales process, becoming a leasing specialist can become a full-time career in the property management field. This is a field that pays a premium for communication skills and ability to produce results: owners expect to see a positive return on their investment, regardless of market conditions. And tenants can call with problems at any time of the day or night. On the plus side, property management, either in full-time salaried position or as a supplement to a sales career, can provide a steady flow of income. And being able to manage a property for an investor can extend the relationship beyond the immediate sale, opening the door to future transactions.
Key benefit: Steady income from providing an ongoing real estate service.
Fundamentals for success: Communication skills for dealing with owners and tenants. Financial skills and familiarity with spreadsheet applications. Relationships with service providers, such as janitors, landscapers, plumbers, painters and electricians. Ability to formulate and execute a yearlong management plan.
Good first steps: Talk with current property managers and educate yourself. Consider working for a larger firm for a year or so to learn the ropes. Study the local market to identify a good niche: residential apartments or commercial sectors. Learn more.
Reaching this market: Pinpoint buildings and facilities that may need hands-on professional management. Approach those owners with a presentation that highlights your experience, knowledge, expertise and abilities.
Time frame to become marketable: A few days, a month or a year or more depending on the size and scope of the property and the owner’s management needs.
Longer-term goal: Take property management courses through groups like the National Association of Residential Property Managers (www.narpm.org), earning designations like Residential Property Management Professional (RMP), Master Property Manager (MPM), Certified Support Specialist (CSS) and Certified Residential Management Company (CRMC).
Tip from a pro: “To be successful, you have to select one or more specific areas of the market (apartments, strip centers, industrial space, etc.) and immerse yourself in it.” – Susie Rice, vice chairman, RMC Property Group, Tampa
Luxury Homes
Luxury home sales have held up surprisingly well during Florida’s residential downturn. That’s because affluent buyers buy a luxury single-family home or condominium without worrying about daily changes in mortgage rates. Today, the pricing range of luxury homes varies around the state — anywhere from $500,000 or so up to $10 million or more. In most cases, these are waterfront, country club or golf-course single family homes, or high-rise condominiums with ocean, gulf, bay, or riverfront locations and views. In today’s Florida market, there appears to be relatively strong demand for luxury homes, according to several leading brokers. “It’s unusual to have more activity in the luxury market, which has a smaller overall pool of buyers,” says Ron Shuffield, president, Esslinger Wooten Maxwell (EWM) in Coral Gables. “However, the current tighter lending practices don’t usually impact buyers of luxury homes and condos.”
Key benefit: Residences with a higher sales price result in a larger commission check.
Fundamentals for success: Strong presentation skills. Marketing skills to connect with affluent sellers and buyers. Persistence, as luxury homes may take a year or more to sell.
Good first steps: Familiarize yourself with the local luxury market and identify a niche to serve. Consider joining a team of associates that is already focusing on high-end buyers and sellers.
Reaching this market: Join civic and charitable organizations that bring you face-to-face with affluent homeowners. Develop a presentation that highlights your ability to market luxury homes and condos effectively.
Time frame to become marketable: If you are already a successful sales professional, you could generate a luxury listing in just a few days. Otherwise it could take weeks, months or a yearlong campaign to break into your local high-end market.
Longer-term goal: Shift your sales career into the luxury market.
Tip from a pro: “A good sense of design and the ability to showcase a seller’s home are crucial elements for success in the luxury market.” - JoAnn Roberts, sales associate, Coldwell Banker, Pinecrest
Commercial Brokerage
Economists expect Florida’s commercial real estate market to outperform the residential sector in 2008, with active sales and leasing activity in the retail, office, industrial and hospitality markets. The hottest properties, analysts say, are likely to be warehouses and suburban shopping centers, which continue to be needed in local markets with strong population growth. That’s an important point for real estate associates seeking opportunities in the commercial sector. After all, it’s easier to break into the market by representing individual owners of smaller properties, such as neighborhood retail centers or industrial/office properties.
Key benefit: Increased long-term revenue and diversification, because of a strategic change in your business.
Fundamentals for success: Math and computer spreadsheet skills. Ability to analyze the financials (leases and company balance sheet) to build the investment business model, including commercial loan structures and tax issues. Thorough knowledge of a market area or product type.
Good first steps: Educate yourself by taking an introductory course from the CCIM (Certified Commercial Investment Member) Institute. Join a local commercial board or society or Commercial Information Exchange (CIE). Join a commercial brokerage team or become an “apprentice” to a senior commercial broker. Learn more: http://chapters.ccim.com/florida.
Reaching this market: Build a new personal network and stay in touch regularly by using email, direct mail, phone calls and personal visits.
Time frame to become marketable: A minimum of six months to a year. You may be able to close on a lease or small commercial property within six months, but some types of transactions take one to two years to close.
Longer-term goal: Become a commercial sales or leasing specialist.
Tip from a pro: “When you start out, you should spend 100 percent of your time learning everything you can about a certain product type, such as retail shopping centers, or a geographic market.” - Cynthia C. Shelton, CCIM, CRE, director of investment sales, Colliers Arnold, Orlando
Young First-Time Buyers
A new wave of young homebuyers is entering the Florida market. A recent study by International Demographics found that there were 6.2 million adults age 18 to 35 with household incomes over $100,000 in 87 major metropolitan areas. In Florida, those potential buyers include recent college graduates just starting their careers.
Today’s lower sales prices, seller incentives and affordable mortgage rates make 2008 an ideal time to starter-home purchases. In many cases, monthly mortgage costs are comparable to rent payments.
While renting a home or apartment may make sense for a young professional who expects to move in the next year or two, home ownership continues to be an attractive long-term financial investment, In fact, a desire to own a home of their own and to establish a household is the most often cited reason for purchasing a home, according to NAR’s recent 2007 Profile of Homebuyers and Sellers, Florida Report. A job-related move, desire for a larger home, a change in family situation, desire for a home in a better area and a desire to be closer to family and friends are also high on the list of reasons for purchasing a home.
Key Benefit: First-time buyers appreciate a sales associate who walks them through the purchase process — and will remember that person when it’s time to sell in the future.
Fundamentals for success: Ability to connect with buyers in their 20s and 30s – in person, and via voice, text messages and online conversations
Good first steps: Familiarize yourself with the local starter-home market. Feature these lower-priced listings prominently on your Web site.
Reaching this market: Visit nearby apartment communities and market yourself as a specialist serving first-time buyers. Start compiling an online mailing list of potential buyers. Look for opportunities to participate in college alumni association events.
Time frame to become marketable: A few days or weeks.
Longer-term goal: Develop “clients for life” who continue working with you as they purchase larger homes and investment properties later in their careers.
Tip from a pro: “Many college graduates have substantial debts, so you have to be able to help them improve their credit history before applying for a mortgage. Sometimes it takes several months to guide them through the process until they are ready to buy.” - Nancy Pardo, sales associate, The Keyes Company, Boca Raton
Seniors
More than 78 million members of the Baby Boom generation (both (1946-1964) are beginning to reach their 60s. And just like their parents, a significant percentage want to retire to attractive communities in Florida where they can enjoy their favorite outdoor activities (boating, tennis, jogging, golf) and indoor pursuits (shopping, dining, cultural activities). And in many cases they want to “test the water” by buying a second home in Florida for family vacations or seasonal rentals. Realtors who cater to the diverse interests and financial requirements of the Boomers could build a loyal clientele that will continue to grow for the next decade. Florida also continues to attract older retirees — the members of the “G.I. generation” born prior to 1930. They may be looking to downsize from a larger home or move into a community that offers both independent senior living and assisted care. With both groups, an effective sales professional can build a business with strong revenue potential.
Key benefit: Specializing in one of Florida’s traditional demographic segments – and one that will be growing significantly in the next decade.
Fundamentals for success: Personality traits, including friendliness, patience and compassion. Ability to use traditional communication channels (hand-written notes, direct mail and the phone) as well as email and Web technology.
Good first steps: Learn all you can about local communities that cater to retirees and seniors, including golf-course and waterfront residences. Market yourself as a specialist in serving retirees, and be ready to show them an appealing Florida lifestyle -- not just a home.
Reaching this market: Cultivate out-of-state buyers through an advertising program that focuses on key U.S. states and regions. Participate in local community activities that attract retirees and seniors within your own market. Offer assistance to younger family members who may be helping a parent change residences.
Time frame to become marketable: A few days or weeks.
Longer-term goal: Building a loyal clientele that generates an ongoing flow of word-of-mouth personal referrals.
Tip from a pro: “Don't make the mistake of stereotyping ‘seniors’ into one category just because they're over 50. The needs and desires of one generation can be completely different from another.” - Karen Ashley, sales associate, Watson Realty, Jacksonville
Singles
From recent college graduates and young professionals to divorced parents and elderly widowers, singles at all age levels constitute a growing segment of the Florida market. Nationally, 51 percent of all U.S. adult women live without a spouse, and by 2010 Fannie Mae estimates that as many as 31 million single women will be homeowners — 28 percent of all U.S. households. A recent NAR study prepared for Florida found that single women purchased 1.5 million homes in 2006 — about one out of five residential sales. Among the factors that have contributed to this trend are increased wages and greater availability of financing for women. And while much of the demographic research has focused on single women, it’s important to note that single men purchased about 750,000 U.S. homes in 2006 — another growth segment. Because those lifestyle trends apply to Florida as well, real estate professionals who successfully focus on this market can expect grow their business for many years to come.
Key benefit: Specializing in a fast-growing demographic segment with high growth potential.
Fundamentals for success: Understanding the specific lifestyle needs and desires of single men and women, such as security and convenient access to social gathering points.
Good first steps: Talk to single friends, neighbors and business associates about their dream homes. Identify communities and neighborhoods that attract singles and get to know their amenities (outdoor cafes, fitness centers, parks, etc.)
Reaching this market: Go to places where singles like to meet and strike up conversations. Advertise your real estate services on websites that attract singles in your community.
Time frame to become marketable: A few weeks or months.
Longer-term goal: Create “clients for life” who refer their friends and family members — and remember your services when it comes time for them to buy a new home.
Tip from a pro: “Most singles, especially women, are looking for a secure, maintenance-free lifestyle. They want to spend their free time on recreational activities — not a fixer-upper.” – LaShawn Norden, sales associate, Watson Realty, Longwood
Developing a new market niche is one of the best ways to build your real estate business. By focusing on these opportunities, you can enhance your expertise, help clients more effectively and distinguish yourself from the competition. Here are several strategies for success in serving target markets that can help you generate more income in 2008.
Scratch that niche: You might like it
International Sales
Throughout Florida, Europeans, Canadians and Latin Americans are buying homes, both primary residences for their families and second homes for vacations. Many overseas buyers are seeking second homes, while others are looking to move capital out of their native countries or make long-term investments. A recent survey by the National Association of Realtors® (NAR) found that Florida led the nation in international buyers with 26 percent of total U.S. sales in 2006. Why? The weak U.S. dollar makes Florida homes a bargain for Europeans and gives Canadians more buying power. Latin Americans like to invest in the U.S. and recognize that now is an ideal time to buy lower-priced properties.
Advice from an international sales expert
Key benefit: International buyers are ready, willing and able to purchase Florida homes and condominiums.
Fundamentals for success: Knowledge of your local second-home market and international buyer groups (Europeans, Canadians, etc.). An effective targeted marketing program reaching (A) international second-home residents in your market and (B) potential buyers overseas using search engine placements and other web tools. Knowledge of a foreign language (by at least one team member).
Good first steps: Join an international chamber in your area. Team up with a mortgage broker or attorney who works with international clients. Start building relationships with recent international buyers in your community.
Reaching this market: Study international buying patterns in your market. Add “international-friendly” features to your web site and online market program.
Time frame to become marketable: Less than a year
Longer-term goal: Earn NAR’s Certified International Property Specialist (CIPS) designation. Learn more: http://www.realtor.org/cipshome.nsf/pages/AboutCIPS
Tip from a pro: “You need to understand the different cultures and be able to explain how U.S. real estate works. When you factor in the exchange rates, our state can offer tremendous bargains for many international buyers.” - Charles Dinsmore, CIPS, broker-associate, RE/MAX Partners, Fort Lauderdale
Short Sales
Many Florida real estate professionals today are helping sellers in financial distress. They give hope to homeowners facing foreclosure by explaining their options, such as a “short sale,” when the market price for a home is less than the amount due on the mortgage. Recent statistics compiled by RealtyTrac, which tracks foreclosures throughout the country, show Florida had one foreclosure for every 95 households, the third highest rate in the U.S. This includes homes whose owners received a “notice of default” from the lender as well as homes that have actually gone into foreclosure. In third-quarter 2007, there were 60,992 such properties in Florida, according to RealtyTrac — more than double the number reported in third quarter 2006. For real estate associates, an owner in financial difficulty usually is a highly motivated seller, hoping to resolve the situation prior to foreclosure.
What is a short sale? Many owners holding adjustable rate mortgages (ARMs) or interest-only loans are facing higher monthly payments. If market prices have declined as well, a seller may have no equity in the home — sometimes called an “upside down” sales situation. In a short sale, the owner asks the mortgage lender to accept a loan payoff that is less than the total amount due. Basically, the seller’s net proceeds from the transaction will not be enough to cover the mortgage obligations and closing costs. To request a short sale, the owner typically presents the lender with evidence of financial hardship and a current market estimate of the home’s price. Any potential short sale is contingent on the lender’s approval. Learn more about Short Sales seminars
Key benefit: In addition to generating an immediate sale, helping a motivated seller in a crisis can create a “client for life” relationship leading to future sales and referrals.
Fundamentals for success: Ability to do quick financial calculations and clearly explain the advantages and disadvantages of a seller’s various options.
Good first steps: Educate yourself on the pre-foreclosure options. Talk with your broker and understand an associate’s role in the process. Build a professional relationship with an experienced mortgage broker. Learn more.
Reaching this market: Advertise yourself as a “short sales” specialist. Make cold calls or knock on doors in your target neighborhoods. In listing presentations, try to assess the seller’s financial situation.
Time frame to become marketable: Time to understand the pre-foreclosure process, which could be a few days or weeks.
Longer-term goal: Generate repeat business with loyal sellers who may be able to buy another home in the future.
Tip from a pro: “Normally, owners don’t say, ‘I can’t make my payments,’ so the associate should ask about the type of loan, the rate and if there have been any recent changes.” - Mike Pappas, president, The Keyes Company, Miami
Foreclosures
Throughout Florida, foreclosures are rising quickly as homeowners struggle to keep up with their monthly mortgage payments. According to RealtyTrac, the incidence of foreclosures will remain high and may possibly increase thanks to the number of loans due to reset through the middle of 2008 and the continuing weakness in home sales. Florida sales associates can get a piece of the action by working with renters seeking an inexpensive first home, “handyman” types who want to repair and resell a fixer-upper and investors seeking income-producing properties. Working directly with lenders on sales of real estate-owned (REO) or bank-owned foreclosures is a highly specialized field that usually requires a corporate approach.
Key benefit: A foreclosure buyer may decide to list the property again in the near future for a “move-up” or a profitable resale.
Fundamentals for success: Ability to assess a property’s condition and the costs necessary for repair or renovation.
Good first steps: Go to a Web site that lists foreclosed properties to get a better understanding of what’s available in your market. Some sites include, www.foreclosure.com, www.realtytrac.com/ and www.foreclosurefreesearch.com.
Reaching this market: Advertise yourself to buyers as a foreclosure specialist. Include links to foreclosure sites on your Web site.
Time frame to become marketable: You can start working with buyers almost immediately.
Longer-term goal: Generate repeat business with new owners who may list their home in the near future or seek to purchase other investment properties.
Tip from a pro: “This is a great opportunity to bring first-time buyers into the market. Prices are not giveaways, but they are often below the normal selling prices because the banks want to move the property.” – Eduardo J. San Roman, president and CEO, First Service Realty-GMAC Real Estate, Miami
New Home Sales
With excess inventory and a wait-and-see attitude on the part of buyers, Florida builders and developers need all the help they can get to find qualified buyers. The National Association of Home Builders estimates that 1.08 million new U.S. homes will be started in 2008. About 125,000 of those homes and condos will be in Florida, estimates Orlando economist Hank Fishkind, president, Fishkind & Associates. That’s in addition to a statewide inventory of several hundred thousand newly built residences that remain unsold. At the same time, many savvy buyers appreciate working with real estate professionals who can help them take advantage of builder incentives and special financing opportunities in Florida’s new subdivisions and multifamily communities.
Key benefit: Rather than work with an individual seller, you can represent a builder or developer offering multiple homes or condominiums who can construct more residences in the future.
Fundamentals for success: General knowledge of new construction. Familiarity with a builder’s models, subdivisions or condominium developments.
Good first steps: Start touring new home communities and condo developments. Introduce yourself to the sales team and register as a participating sales associate or broker. Post the new-home offerings on your Web site.
Reaching this market: Look for well-established builders and developers who stand behind their product. Visit their communities and sales centers. Build a personal relationship with the in-house sales team (large community), or directly with the developer or builder (smaller projects and individual spec homes).
Time frame to become marketable: One to two months to familiarize yourself with the sales team and community.
Longer-term goal: Eventually, you could work for the builder or developer full-time as a broker or sales manager.
Tip from a pro: “Most new community developers have generous co-op broker programs today. You should know these communities like the back of your hand, and include information about these opportunities on your Web site.” – Real estate analyst Lewis Goodkin, president, Goodkin Consulting, Miami
Property Management
Investing in Florida real estate is one thing. Managing it is another. Many who invest in apartment buildings, individual condo units, shopping centers, office buildings and other types of income-producing properties need someone else to manage their holdings. Many large public companies and real estate investment trusts (REITs) are also getting into the Florida market. Owners usually commission property management firms staffed by people with a solid background in real estate. For those who enjoy the sales process, becoming a leasing specialist can become a full-time career in the property management field. This is a field that pays a premium for communication skills and ability to produce results: owners expect to see a positive return on their investment, regardless of market conditions. And tenants can call with problems at any time of the day or night. On the plus side, property management, either in full-time salaried position or as a supplement to a sales career, can provide a steady flow of income. And being able to manage a property for an investor can extend the relationship beyond the immediate sale, opening the door to future transactions.
Key benefit: Steady income from providing an ongoing real estate service.
Fundamentals for success: Communication skills for dealing with owners and tenants. Financial skills and familiarity with spreadsheet applications. Relationships with service providers, such as janitors, landscapers, plumbers, painters and electricians. Ability to formulate and execute a yearlong management plan.
Good first steps: Talk with current property managers and educate yourself. Consider working for a larger firm for a year or so to learn the ropes. Study the local market to identify a good niche: residential apartments or commercial sectors. Learn more.
Reaching this market: Pinpoint buildings and facilities that may need hands-on professional management. Approach those owners with a presentation that highlights your experience, knowledge, expertise and abilities.
Time frame to become marketable: A few days, a month or a year or more depending on the size and scope of the property and the owner’s management needs.
Longer-term goal: Take property management courses through groups like the National Association of Residential Property Managers (www.narpm.org), earning designations like Residential Property Management Professional (RMP), Master Property Manager (MPM), Certified Support Specialist (CSS) and Certified Residential Management Company (CRMC).
Tip from a pro: “To be successful, you have to select one or more specific areas of the market (apartments, strip centers, industrial space, etc.) and immerse yourself in it.” – Susie Rice, vice chairman, RMC Property Group, Tampa
Luxury Homes
Luxury home sales have held up surprisingly well during Florida’s residential downturn. That’s because affluent buyers buy a luxury single-family home or condominium without worrying about daily changes in mortgage rates. Today, the pricing range of luxury homes varies around the state — anywhere from $500,000 or so up to $10 million or more. In most cases, these are waterfront, country club or golf-course single family homes, or high-rise condominiums with ocean, gulf, bay, or riverfront locations and views. In today’s Florida market, there appears to be relatively strong demand for luxury homes, according to several leading brokers. “It’s unusual to have more activity in the luxury market, which has a smaller overall pool of buyers,” says Ron Shuffield, president, Esslinger Wooten Maxwell (EWM) in Coral Gables. “However, the current tighter lending practices don’t usually impact buyers of luxury homes and condos.”
Key benefit: Residences with a higher sales price result in a larger commission check.
Fundamentals for success: Strong presentation skills. Marketing skills to connect with affluent sellers and buyers. Persistence, as luxury homes may take a year or more to sell.
Good first steps: Familiarize yourself with the local luxury market and identify a niche to serve. Consider joining a team of associates that is already focusing on high-end buyers and sellers.
Reaching this market: Join civic and charitable organizations that bring you face-to-face with affluent homeowners. Develop a presentation that highlights your ability to market luxury homes and condos effectively.
Time frame to become marketable: If you are already a successful sales professional, you could generate a luxury listing in just a few days. Otherwise it could take weeks, months or a yearlong campaign to break into your local high-end market.
Longer-term goal: Shift your sales career into the luxury market.
Tip from a pro: “A good sense of design and the ability to showcase a seller’s home are crucial elements for success in the luxury market.” - JoAnn Roberts, sales associate, Coldwell Banker, Pinecrest
Commercial Brokerage
Economists expect Florida’s commercial real estate market to outperform the residential sector in 2008, with active sales and leasing activity in the retail, office, industrial and hospitality markets. The hottest properties, analysts say, are likely to be warehouses and suburban shopping centers, which continue to be needed in local markets with strong population growth. That’s an important point for real estate associates seeking opportunities in the commercial sector. After all, it’s easier to break into the market by representing individual owners of smaller properties, such as neighborhood retail centers or industrial/office properties.
Key benefit: Increased long-term revenue and diversification, because of a strategic change in your business.
Fundamentals for success: Math and computer spreadsheet skills. Ability to analyze the financials (leases and company balance sheet) to build the investment business model, including commercial loan structures and tax issues. Thorough knowledge of a market area or product type.
Good first steps: Educate yourself by taking an introductory course from the CCIM (Certified Commercial Investment Member) Institute. Join a local commercial board or society or Commercial Information Exchange (CIE). Join a commercial brokerage team or become an “apprentice” to a senior commercial broker. Learn more: http://chapters.ccim.com/florida.
Reaching this market: Build a new personal network and stay in touch regularly by using email, direct mail, phone calls and personal visits.
Time frame to become marketable: A minimum of six months to a year. You may be able to close on a lease or small commercial property within six months, but some types of transactions take one to two years to close.
Longer-term goal: Become a commercial sales or leasing specialist.
Tip from a pro: “When you start out, you should spend 100 percent of your time learning everything you can about a certain product type, such as retail shopping centers, or a geographic market.” - Cynthia C. Shelton, CCIM, CRE, director of investment sales, Colliers Arnold, Orlando
Young First-Time Buyers
A new wave of young homebuyers is entering the Florida market. A recent study by International Demographics found that there were 6.2 million adults age 18 to 35 with household incomes over $100,000 in 87 major metropolitan areas. In Florida, those potential buyers include recent college graduates just starting their careers.
Today’s lower sales prices, seller incentives and affordable mortgage rates make 2008 an ideal time to starter-home purchases. In many cases, monthly mortgage costs are comparable to rent payments.
While renting a home or apartment may make sense for a young professional who expects to move in the next year or two, home ownership continues to be an attractive long-term financial investment, In fact, a desire to own a home of their own and to establish a household is the most often cited reason for purchasing a home, according to NAR’s recent 2007 Profile of Homebuyers and Sellers, Florida Report. A job-related move, desire for a larger home, a change in family situation, desire for a home in a better area and a desire to be closer to family and friends are also high on the list of reasons for purchasing a home.
Key Benefit: First-time buyers appreciate a sales associate who walks them through the purchase process — and will remember that person when it’s time to sell in the future.
Fundamentals for success: Ability to connect with buyers in their 20s and 30s – in person, and via voice, text messages and online conversations
Good first steps: Familiarize yourself with the local starter-home market. Feature these lower-priced listings prominently on your Web site.
Reaching this market: Visit nearby apartment communities and market yourself as a specialist serving first-time buyers. Start compiling an online mailing list of potential buyers. Look for opportunities to participate in college alumni association events.
Time frame to become marketable: A few days or weeks.
Longer-term goal: Develop “clients for life” who continue working with you as they purchase larger homes and investment properties later in their careers.
Tip from a pro: “Many college graduates have substantial debts, so you have to be able to help them improve their credit history before applying for a mortgage. Sometimes it takes several months to guide them through the process until they are ready to buy.” - Nancy Pardo, sales associate, The Keyes Company, Boca Raton
Seniors
More than 78 million members of the Baby Boom generation (both (1946-1964) are beginning to reach their 60s. And just like their parents, a significant percentage want to retire to attractive communities in Florida where they can enjoy their favorite outdoor activities (boating, tennis, jogging, golf) and indoor pursuits (shopping, dining, cultural activities). And in many cases they want to “test the water” by buying a second home in Florida for family vacations or seasonal rentals. Realtors who cater to the diverse interests and financial requirements of the Boomers could build a loyal clientele that will continue to grow for the next decade. Florida also continues to attract older retirees — the members of the “G.I. generation” born prior to 1930. They may be looking to downsize from a larger home or move into a community that offers both independent senior living and assisted care. With both groups, an effective sales professional can build a business with strong revenue potential.
Key benefit: Specializing in one of Florida’s traditional demographic segments – and one that will be growing significantly in the next decade.
Fundamentals for success: Personality traits, including friendliness, patience and compassion. Ability to use traditional communication channels (hand-written notes, direct mail and the phone) as well as email and Web technology.
Good first steps: Learn all you can about local communities that cater to retirees and seniors, including golf-course and waterfront residences. Market yourself as a specialist in serving retirees, and be ready to show them an appealing Florida lifestyle -- not just a home.
Reaching this market: Cultivate out-of-state buyers through an advertising program that focuses on key U.S. states and regions. Participate in local community activities that attract retirees and seniors within your own market. Offer assistance to younger family members who may be helping a parent change residences.
Time frame to become marketable: A few days or weeks.
Longer-term goal: Building a loyal clientele that generates an ongoing flow of word-of-mouth personal referrals.
Tip from a pro: “Don't make the mistake of stereotyping ‘seniors’ into one category just because they're over 50. The needs and desires of one generation can be completely different from another.” - Karen Ashley, sales associate, Watson Realty, Jacksonville
Singles
From recent college graduates and young professionals to divorced parents and elderly widowers, singles at all age levels constitute a growing segment of the Florida market. Nationally, 51 percent of all U.S. adult women live without a spouse, and by 2010 Fannie Mae estimates that as many as 31 million single women will be homeowners — 28 percent of all U.S. households. A recent NAR study prepared for Florida found that single women purchased 1.5 million homes in 2006 — about one out of five residential sales. Among the factors that have contributed to this trend are increased wages and greater availability of financing for women. And while much of the demographic research has focused on single women, it’s important to note that single men purchased about 750,000 U.S. homes in 2006 — another growth segment. Because those lifestyle trends apply to Florida as well, real estate professionals who successfully focus on this market can expect grow their business for many years to come.
Key benefit: Specializing in a fast-growing demographic segment with high growth potential.
Fundamentals for success: Understanding the specific lifestyle needs and desires of single men and women, such as security and convenient access to social gathering points.
Good first steps: Talk to single friends, neighbors and business associates about their dream homes. Identify communities and neighborhoods that attract singles and get to know their amenities (outdoor cafes, fitness centers, parks, etc.)
Reaching this market: Go to places where singles like to meet and strike up conversations. Advertise your real estate services on websites that attract singles in your community.
Time frame to become marketable: A few weeks or months.
Longer-term goal: Create “clients for life” who refer their friends and family members — and remember your services when it comes time for them to buy a new home.
Tip from a pro: “Most singles, especially women, are looking for a secure, maintenance-free lifestyle. They want to spend their free time on recreational activities — not a fixer-upper.” – LaShawn Norden, sales associate, Watson Realty, Longwood
Price beats creativity
Here at MRI Orlando, we'd agree with this piece. Buyers want value for money and see this sort of thing as a "gimmick" although offering your hand in marriage could be seen as going a little bit far!:
Sellers nationwide want something that makes their home stand out from the sea of listings, but those who try some creative marketing generally find that only one thing counts in today’s market – price.
Two essay contests in Colorado and Oregon failed to attract enough contestants, and the homes are once again listed in a traditional way. Many sellers include traditional perks, such as the furniture or a car, but some have gone much further. A 42-year-old single mother in South Florida offered herself in marriage to some lucky homebuyer; and a couple in Pennsylvania offered to will the house back, upon their death, to a buyer.
However, Ron Shuffield, president of Esslinger-Wooten-Maxwell Realtors Inc. in Miami, says all the unusual incentives are crazy. He says the motivation to buyers is the same: price. “Of course you want to draw attention to your property any way you can,” Shuffield says. “But free trips or cars, that’s costing somebody somewhere, and a buyer would rather have a reduced price and decide what to do with their money.”
Sellers nationwide want something that makes their home stand out from the sea of listings, but those who try some creative marketing generally find that only one thing counts in today’s market – price.
Two essay contests in Colorado and Oregon failed to attract enough contestants, and the homes are once again listed in a traditional way. Many sellers include traditional perks, such as the furniture or a car, but some have gone much further. A 42-year-old single mother in South Florida offered herself in marriage to some lucky homebuyer; and a couple in Pennsylvania offered to will the house back, upon their death, to a buyer.
However, Ron Shuffield, president of Esslinger-Wooten-Maxwell Realtors Inc. in Miami, says all the unusual incentives are crazy. He says the motivation to buyers is the same: price. “Of course you want to draw attention to your property any way you can,” Shuffield says. “But free trips or cars, that’s costing somebody somewhere, and a buyer would rather have a reduced price and decide what to do with their money.”
Monday, August 18, 2008
Florida’s strong population growth boosts demand for housing
Florida’s strong population growth boosts demand for housing
As one of the fastest growing states in the nation, Florida’s population is expected to increase by 325,000 in 2008, spurring demand for working-age and retirement housing.
“Florida remains a prime destination for workers seeking new jobs and for the growing wave of baby boomers,” said economist Hank Fishkind, president of Fishkind & Associates in Orlando. “However, a slower national economy means that 2008 growth will be somewhat below the levels seen during the recent boom years.”
Fishkind’s analysis of demographic data indicates Florida enjoyed a net population growth of 350,000 each year from 2000 to 2006. That includes about 203,000 people who moved to Florida from other states, about 107,000 migrants from foreign countries and about 47,000 from natural increase (total births minus total deaths).
“It’s important to note that this is net growth,” added Fishkind. “The actual number of people who move to Florida each year is far greater.”
On the domestic side, the strongest “sending” states are New York, New Jersey, Illinois, Ohio, Pennsylvania, Georgia, Michigan and California. Among top foreign countries are Venezuela, Puerto Rico, the United Kingdom and Canada.
“Florida has a long history of population growth regardless of the nation’s economic cycle,” said Nancy Riley, a broker with Coldwell Banker Residential Real Estate in Pinellas County and the 2007 president of the Florida Association of Realtors® (FAR). She added that Florida has been one of the top ten fastest growing states for seven decades in a row, exceeding the U.S. average by 100 percent since 1970.
In fact, the U.S. Census Bureau projects that in 2010 Florida will surpass New York and become the nation's third most populous state. By 2030, the Census Bureau projects the state’s population will reach 28.6 million, an increase of 12.7 million since 2000.
One reason for that growth is that the state’s highly diversified economy continues to attract jobs in tourism, technology, international trade and business services. That brings in individuals, couples and families in their 20s to 50s, primarily to Florida’s larger metropolitan areas.
In addition, Florida traditionally captures a large share of the domestic retiree market, ranging from highly affluent entrepreneurs and executives to moderate-income couples seeking a warm-weather destination with plenty of recreational opportunities.
According to the Census Bureau, there are 76 million baby boomers born between 1946 and 1964. If only 5 percent retire to Florida, that alone would add 3.8 million new residents.
International buyers provide a third stream of migration into Florida, including working-age professionals, retirees and affluent second-home buyers.
As Riley said, “The bottom line is that more than 900 people move to Florida every day. That provides a solid foundation for our state’s residential real estate market.”
The Florida Association of Realtors, the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its 125,000 members in 67 boards/associations. FAR's Media Center Web site is available at http://media.floridarealtors.org.
As one of the fastest growing states in the nation, Florida’s population is expected to increase by 325,000 in 2008, spurring demand for working-age and retirement housing.
“Florida remains a prime destination for workers seeking new jobs and for the growing wave of baby boomers,” said economist Hank Fishkind, president of Fishkind & Associates in Orlando. “However, a slower national economy means that 2008 growth will be somewhat below the levels seen during the recent boom years.”
Fishkind’s analysis of demographic data indicates Florida enjoyed a net population growth of 350,000 each year from 2000 to 2006. That includes about 203,000 people who moved to Florida from other states, about 107,000 migrants from foreign countries and about 47,000 from natural increase (total births minus total deaths).
“It’s important to note that this is net growth,” added Fishkind. “The actual number of people who move to Florida each year is far greater.”
On the domestic side, the strongest “sending” states are New York, New Jersey, Illinois, Ohio, Pennsylvania, Georgia, Michigan and California. Among top foreign countries are Venezuela, Puerto Rico, the United Kingdom and Canada.
“Florida has a long history of population growth regardless of the nation’s economic cycle,” said Nancy Riley, a broker with Coldwell Banker Residential Real Estate in Pinellas County and the 2007 president of the Florida Association of Realtors® (FAR). She added that Florida has been one of the top ten fastest growing states for seven decades in a row, exceeding the U.S. average by 100 percent since 1970.
In fact, the U.S. Census Bureau projects that in 2010 Florida will surpass New York and become the nation's third most populous state. By 2030, the Census Bureau projects the state’s population will reach 28.6 million, an increase of 12.7 million since 2000.
One reason for that growth is that the state’s highly diversified economy continues to attract jobs in tourism, technology, international trade and business services. That brings in individuals, couples and families in their 20s to 50s, primarily to Florida’s larger metropolitan areas.
In addition, Florida traditionally captures a large share of the domestic retiree market, ranging from highly affluent entrepreneurs and executives to moderate-income couples seeking a warm-weather destination with plenty of recreational opportunities.
According to the Census Bureau, there are 76 million baby boomers born between 1946 and 1964. If only 5 percent retire to Florida, that alone would add 3.8 million new residents.
International buyers provide a third stream of migration into Florida, including working-age professionals, retirees and affluent second-home buyers.
As Riley said, “The bottom line is that more than 900 people move to Florida every day. That provides a solid foundation for our state’s residential real estate market.”
The Florida Association of Realtors, the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its 125,000 members in 67 boards/associations. FAR's Media Center Web site is available at http://media.floridarealtors.org.
20 reasons to buy in Florida
The upside of Florida real estate: 20 market positives
Let’s take a look at some of the opportunities and positive indicators for the future of Florida’s real estate market.
Long-term economic and demographic trends continue to favor Florida. By 2010 it has been forecast that Florida will be the third most populated state in the country. Florida’s population is expected to increase about 75 percent by 2030. Florida demonstrates a long history of strong growth. It has been one of the 10 fastest-growing states in the U.S. for each of the past seven decades, and often it has been in the top four, according to census data. Population growth will continue to provide a foundation for other economic growth such as new jobs and growing incomes. All of which is good for real estate.
People continue to move here. It’s estimated that 900 people move here every day. Based on recent trends, Stan Smith, director of UF Bureau of Economic and Business Research, said he expects Florida to add about 300,000 residents a year during the next two to three years unless there is a recession.
Five of the top 15 cities in the Milken Institute’s 2007 “Best Performing Cities” survey, which looks at sustainable economic growth, are in Florida, including the No. 1 city, Ocala. A total of 13 Florida cities are in the top 50.
Low unemployment. Almost 120,000 jobs were created in Florida in the year between August 2006 and August 2007. Florida’s unemployment rate has hovered at or under 4% for a long time; and was 4% in August 2007, according to the latest data available from the U.S. Department of Labor. That not only puts it well below the national unemployment average, it also is the lowest unemployment rate among all ten of the most populous states.
Jobs are plentiful, and that trend will continue. A recent study by Bizjournals called “Where the Jobs Are” found that 7 of the hottest 15 job markets are in Florida.
Let’s take a look at the weather. If you think the hurricanes we experienced are going to have long-term effects on the Florida real estate market, consider this tidbit from Fortune Magazine. It recently reported, “Economists and geographers who have studied how natural disasters affect real estate values have generally found there to be no lasting impact.” Example #1: When Hurricane Hugo hit Charleston, S. C., home values were actually higher one year later. Example #2: That same year, 1989, a huge earthquake made big news in San Francisco, and the same thing happened—house prices went up.
Grant Thrall, a professor of what’s called Economic Geography, explains this phenomenon this way—residents move away and home prices fall only when natural disasters start becoming regular occurrences in an area, not when they happen periodically. And while the hurricane seasons of 2004 and 2005 may still be fresh in our minds, the fact is, historically it was a fluke. Eight storms hit the Florida mainland in those two years. But if you look back at the 50 years prior, only six Category 3 or higher storms hit the Florida mainland in half a century.
Gov. Charlie Crist, state lawmakers and business groups are committed to finding real solutions to the escalating costs and shortage of property insurance in Florida, as well as much-needed property tax reform. Florida Realtors will continue working closely with lawmakers to help resolve these complicated issues and keep the state’s economy moving forward. For example, 2007 FAR President Nancy Riley sits on the governor’s property tax reform commission, and 2005 FAR President Frank Kowalski served on the governor’s insurance reform commission.
Interests rates currently are still low, on a par with interest rates in the 1960s. And thanks to the Fed’s recent rate cut, we’re already seeing lower rates on home equity and mortgage loans, including jumbo loans. The Fed’s action effectively increases the number of homebuyers able to make a purchase, which should increase demand, and also help support home prices. Home prices continue to stabilize, inventory is plentiful and homebuyers have lots of options.
Homeownership has value: Realtors believe… and research supports that belief … that homeownership provides a variety of benefits, tangible and intangible, to the community as well as the individual homeowner.
Studies show that home equity is still the largest single source of household wealth, both for the individual homeowner and for homeowners as a group. Home value is the most important single aspect for homeowners.
Owning a home leads to increased personal well-being. Research shows that people who own their own homes tend to show higher levels of personal esteem and life satisfaction, which in turn helps to make homeowners and their children more productive members of society.
Studies show that children raised in homes owned by their families are more likely to stay in school and more likely to graduate high school. They’re also shown to have a higher lifetime annual income.
People who own homes have a strong financial stake in what happens to their community and tend to become more involved in community and civic affairs. Studies show that homeowners also interact with their neighbors to gain wider influence over their neighborhoods and communities.
Homeowners join up to 41 percent more civic and/or nonprofessional organizations than renters, such as the PTA or Scouts; vote in local elections 15 percent more often; enhance their neighborhoods with gardens 12 percent more often; attend church about 10 percent more often; and have a 3 percent greater chance of being interested in public affairs.
2007 Florida Association of Realtors® (FAR) President Nancy Riley says, “Florida Realtors know buying a home is a very personal investment – an investment in a family’s future. Although research shows it is the largest single investment most families make and helps to provide security for the future, owning a home isn't just a financial investment. Ownership is about having a place to call home: a place where families build a future and become part of a community.”
Over the past five years, the average homeowner has seen an increase of 50 percent in value, according to the National Association of Realtors® (NAR). Here in Florida, the statewide median home price has shown an increase of 52.5 percent from November 2002 to November 2007, according to FAR records. NAR housing industry analysts project that prices will rise about 2 percent next year, and in coming years, average home price appreciation should return to historical averages of around 6 percent.
Florida is a great place to live and work. According to Enterprise Florida Inc., the Sunshine State has one of the nation's strongest tourism industries; it is fourth in the nation in high-tech jobs; is the third largest exporter of high-tech goods and services; and is ranked as one of the best states in the nation to be an entrepreneur.
Orlando-based economist Dr. Hank Fishkind recently said in several media reports he believes that “the worst of the so-called housing crisis has probably been mitigated by the actions of the Fed. Recovery will take a while, but it has begun.” Another economist, Dr. Lawrence Yun, chief economist with the National Association of Realtors, predicts that the Florida housing market will get stronger in 2008 and will be booming again by 2010.
And let’s not forget the things that brought people to Florida in the first place, and will continue to attract them – beautiful beaches, fabulous weather and a friendly business climate, with no state income tax. It’s no wonder that Florida’s combination of temperate climate, outstanding recreational amenities and economic opportunity has consistently put us at the top of Harris Poll’s “most desirable places to live” survey.
Let’s take a look at some of the opportunities and positive indicators for the future of Florida’s real estate market.
Long-term economic and demographic trends continue to favor Florida. By 2010 it has been forecast that Florida will be the third most populated state in the country. Florida’s population is expected to increase about 75 percent by 2030. Florida demonstrates a long history of strong growth. It has been one of the 10 fastest-growing states in the U.S. for each of the past seven decades, and often it has been in the top four, according to census data. Population growth will continue to provide a foundation for other economic growth such as new jobs and growing incomes. All of which is good for real estate.
People continue to move here. It’s estimated that 900 people move here every day. Based on recent trends, Stan Smith, director of UF Bureau of Economic and Business Research, said he expects Florida to add about 300,000 residents a year during the next two to three years unless there is a recession.
Five of the top 15 cities in the Milken Institute’s 2007 “Best Performing Cities” survey, which looks at sustainable economic growth, are in Florida, including the No. 1 city, Ocala. A total of 13 Florida cities are in the top 50.
Low unemployment. Almost 120,000 jobs were created in Florida in the year between August 2006 and August 2007. Florida’s unemployment rate has hovered at or under 4% for a long time; and was 4% in August 2007, according to the latest data available from the U.S. Department of Labor. That not only puts it well below the national unemployment average, it also is the lowest unemployment rate among all ten of the most populous states.
Jobs are plentiful, and that trend will continue. A recent study by Bizjournals called “Where the Jobs Are” found that 7 of the hottest 15 job markets are in Florida.
Let’s take a look at the weather. If you think the hurricanes we experienced are going to have long-term effects on the Florida real estate market, consider this tidbit from Fortune Magazine. It recently reported, “Economists and geographers who have studied how natural disasters affect real estate values have generally found there to be no lasting impact.” Example #1: When Hurricane Hugo hit Charleston, S. C., home values were actually higher one year later. Example #2: That same year, 1989, a huge earthquake made big news in San Francisco, and the same thing happened—house prices went up.
Grant Thrall, a professor of what’s called Economic Geography, explains this phenomenon this way—residents move away and home prices fall only when natural disasters start becoming regular occurrences in an area, not when they happen periodically. And while the hurricane seasons of 2004 and 2005 may still be fresh in our minds, the fact is, historically it was a fluke. Eight storms hit the Florida mainland in those two years. But if you look back at the 50 years prior, only six Category 3 or higher storms hit the Florida mainland in half a century.
Gov. Charlie Crist, state lawmakers and business groups are committed to finding real solutions to the escalating costs and shortage of property insurance in Florida, as well as much-needed property tax reform. Florida Realtors will continue working closely with lawmakers to help resolve these complicated issues and keep the state’s economy moving forward. For example, 2007 FAR President Nancy Riley sits on the governor’s property tax reform commission, and 2005 FAR President Frank Kowalski served on the governor’s insurance reform commission.
Interests rates currently are still low, on a par with interest rates in the 1960s. And thanks to the Fed’s recent rate cut, we’re already seeing lower rates on home equity and mortgage loans, including jumbo loans. The Fed’s action effectively increases the number of homebuyers able to make a purchase, which should increase demand, and also help support home prices. Home prices continue to stabilize, inventory is plentiful and homebuyers have lots of options.
Homeownership has value: Realtors believe… and research supports that belief … that homeownership provides a variety of benefits, tangible and intangible, to the community as well as the individual homeowner.
Studies show that home equity is still the largest single source of household wealth, both for the individual homeowner and for homeowners as a group. Home value is the most important single aspect for homeowners.
Owning a home leads to increased personal well-being. Research shows that people who own their own homes tend to show higher levels of personal esteem and life satisfaction, which in turn helps to make homeowners and their children more productive members of society.
Studies show that children raised in homes owned by their families are more likely to stay in school and more likely to graduate high school. They’re also shown to have a higher lifetime annual income.
People who own homes have a strong financial stake in what happens to their community and tend to become more involved in community and civic affairs. Studies show that homeowners also interact with their neighbors to gain wider influence over their neighborhoods and communities.
Homeowners join up to 41 percent more civic and/or nonprofessional organizations than renters, such as the PTA or Scouts; vote in local elections 15 percent more often; enhance their neighborhoods with gardens 12 percent more often; attend church about 10 percent more often; and have a 3 percent greater chance of being interested in public affairs.
2007 Florida Association of Realtors® (FAR) President Nancy Riley says, “Florida Realtors know buying a home is a very personal investment – an investment in a family’s future. Although research shows it is the largest single investment most families make and helps to provide security for the future, owning a home isn't just a financial investment. Ownership is about having a place to call home: a place where families build a future and become part of a community.”
Over the past five years, the average homeowner has seen an increase of 50 percent in value, according to the National Association of Realtors® (NAR). Here in Florida, the statewide median home price has shown an increase of 52.5 percent from November 2002 to November 2007, according to FAR records. NAR housing industry analysts project that prices will rise about 2 percent next year, and in coming years, average home price appreciation should return to historical averages of around 6 percent.
Florida is a great place to live and work. According to Enterprise Florida Inc., the Sunshine State has one of the nation's strongest tourism industries; it is fourth in the nation in high-tech jobs; is the third largest exporter of high-tech goods and services; and is ranked as one of the best states in the nation to be an entrepreneur.
Orlando-based economist Dr. Hank Fishkind recently said in several media reports he believes that “the worst of the so-called housing crisis has probably been mitigated by the actions of the Fed. Recovery will take a while, but it has begun.” Another economist, Dr. Lawrence Yun, chief economist with the National Association of Realtors, predicts that the Florida housing market will get stronger in 2008 and will be booming again by 2010.
And let’s not forget the things that brought people to Florida in the first place, and will continue to attract them – beautiful beaches, fabulous weather and a friendly business climate, with no state income tax. It’s no wonder that Florida’s combination of temperate climate, outstanding recreational amenities and economic opportunity has consistently put us at the top of Harris Poll’s “most desirable places to live” survey.
Condo Sales improve in Quarter 2 of 2008
Florida's Existing Home, Condo Sales Improve
in 2Q 2008 Compared to 1Q 2008
ORLANDO, Fla., Aug. 14, 2008 – During the second quarter of 2008, Florida Realtors® continued to report positive signs for the state’s housing sector, such as an increase in pending home sales (based on contracts signed but not closed) and a slower rate of expansion of inventory levels in some areas.
Sales of both existing single-family homes and existing condominiums improved in second quarter 2008 from the first quarter of the year, according to the latest housing statistics from the Florida Association of Realtors® (FAR). A total of 35,178 existing homes sold statewide in 2Q 2008, up 38.2 percent over 1Q 2008 when 25,443 homes sold. The statewide existing home median price in 2Q 2008 was $203,000, slightly higher than the $202,300 median price reported in 1Q 2008.
In the state’s existing condo market, a total of 11,343 units sold in 2Q 2008, a 32.2 percent increase over 1Q 2008 when 8,581 units changed hands. The statewide existing condo median price in 2Q 2008 was $181,100, an increase of 1.5 percent from 1Q 2008.
“Across the state, we’re seeing positive signs for Florida’s housing market,” says 2008 FAR President Chuck Bonfiglio. “Realtors are reporting heightened interest from buyers, more business activity and an increase in pending sales. Prices also appear to be reaching equilibrium in many areas, another encouraging sign that could boost the market’s momentum.”
Looking at the year-to-year quarterly comparison, a total of 35,178 single-family existing homes changed hands during the three-month period, a decrease of 6 percent compared to 37,407 homes sold during the same time a year earlier, according to FAR records. The statewide existing-home median sales price was $203,000 in the second quarter; a year ago, it was $241,200 for a decrease of 16 percent. In 2003, the second-quarter statewide median sales price was $154,700, which reflects an increase of 31.2 percent over the five-year period. The median is a typical market price where half the homes sold for more, half for less.
To gain insight into current trends in Florida’s real estate industry, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a quarterly survey of industry executives, market research economists, real estate scholars and other experts. The second quarter 2008 survey found the long-term outlook for Florida remains positive. “As long as the United States economy has bright prospects and particularly as long as Florida has good prospects, it’s very hard I think to make a case for a long-term picture that’s negative,” said Wayne Archer, director of UF’s Bergstrom Center for Real Estate Studies. He added that the logical time for market cycles to change is likely the spring of 2009.
In a year-to-year quarterly comparison for condo sales, 11,343 units sold statewide for the quarter compared to 12,585 in 2Q 2007 for a 10 percent decrease. The statewide existing-condo median sales price was $181,100 for the three-month period; in 2Q 2007, it was $215,300 for a 16 percent decrease.
Continuing low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 6.09 percent in second quarter 2008; one year earlier, it averaged 6.37 percent.
The latest industry outlook from the National Association of Realtors® (NAR) predicts improvements in existing home sales in the coming months, with broader gains seen by the fourth quarter as buyers take advantage of new provisions provided through the recently approved housing stimulus legislation. “With a tax credit now available to first-time homebuyers, increases in home sales could be sustained with the momentum carrying into 2009,” said NAR Chief Economist Lawrence Yun.
Two charts showing statistics for Florida and its MSAs are attached. One chart compares the volume of existing, single-family home sales and median sales prices in the second quarter of 2008 to the second quarter of 2007, based on Realtor closed transactions from local Realtor boards/associations within the MSAs. The second chart compares the volume of existing condo sales and median sales prices in second quarter 2008 to second quarter 2007, based on Realtor closed transactions from local Realtor boards/associations within the MSAs.
in 2Q 2008 Compared to 1Q 2008
ORLANDO, Fla., Aug. 14, 2008 – During the second quarter of 2008, Florida Realtors® continued to report positive signs for the state’s housing sector, such as an increase in pending home sales (based on contracts signed but not closed) and a slower rate of expansion of inventory levels in some areas.
Sales of both existing single-family homes and existing condominiums improved in second quarter 2008 from the first quarter of the year, according to the latest housing statistics from the Florida Association of Realtors® (FAR). A total of 35,178 existing homes sold statewide in 2Q 2008, up 38.2 percent over 1Q 2008 when 25,443 homes sold. The statewide existing home median price in 2Q 2008 was $203,000, slightly higher than the $202,300 median price reported in 1Q 2008.
In the state’s existing condo market, a total of 11,343 units sold in 2Q 2008, a 32.2 percent increase over 1Q 2008 when 8,581 units changed hands. The statewide existing condo median price in 2Q 2008 was $181,100, an increase of 1.5 percent from 1Q 2008.
“Across the state, we’re seeing positive signs for Florida’s housing market,” says 2008 FAR President Chuck Bonfiglio. “Realtors are reporting heightened interest from buyers, more business activity and an increase in pending sales. Prices also appear to be reaching equilibrium in many areas, another encouraging sign that could boost the market’s momentum.”
Looking at the year-to-year quarterly comparison, a total of 35,178 single-family existing homes changed hands during the three-month period, a decrease of 6 percent compared to 37,407 homes sold during the same time a year earlier, according to FAR records. The statewide existing-home median sales price was $203,000 in the second quarter; a year ago, it was $241,200 for a decrease of 16 percent. In 2003, the second-quarter statewide median sales price was $154,700, which reflects an increase of 31.2 percent over the five-year period. The median is a typical market price where half the homes sold for more, half for less.
To gain insight into current trends in Florida’s real estate industry, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a quarterly survey of industry executives, market research economists, real estate scholars and other experts. The second quarter 2008 survey found the long-term outlook for Florida remains positive. “As long as the United States economy has bright prospects and particularly as long as Florida has good prospects, it’s very hard I think to make a case for a long-term picture that’s negative,” said Wayne Archer, director of UF’s Bergstrom Center for Real Estate Studies. He added that the logical time for market cycles to change is likely the spring of 2009.
In a year-to-year quarterly comparison for condo sales, 11,343 units sold statewide for the quarter compared to 12,585 in 2Q 2007 for a 10 percent decrease. The statewide existing-condo median sales price was $181,100 for the three-month period; in 2Q 2007, it was $215,300 for a 16 percent decrease.
Continuing low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 6.09 percent in second quarter 2008; one year earlier, it averaged 6.37 percent.
The latest industry outlook from the National Association of Realtors® (NAR) predicts improvements in existing home sales in the coming months, with broader gains seen by the fourth quarter as buyers take advantage of new provisions provided through the recently approved housing stimulus legislation. “With a tax credit now available to first-time homebuyers, increases in home sales could be sustained with the momentum carrying into 2009,” said NAR Chief Economist Lawrence Yun.
Two charts showing statistics for Florida and its MSAs are attached. One chart compares the volume of existing, single-family home sales and median sales prices in the second quarter of 2008 to the second quarter of 2007, based on Realtor closed transactions from local Realtor boards/associations within the MSAs. The second chart compares the volume of existing condo sales and median sales prices in second quarter 2008 to second quarter 2007, based on Realtor closed transactions from local Realtor boards/associations within the MSAs.
Wednesday, August 6, 2008
Looking for a "green card" or to invest in an Orlando business?
Friday, July 25, 2008
Foreigners invest locally in return for green card
Orlando Business Journal - by Dan Ping
Rob Sutton wants to attract foreign investors to fund an expansion of Lake Buena Vista Resort Village & Spa.
The U.S. Citizenship and Immigration Service will decide next month whether or not to name Central Florida as a major hub where local businesses can tap into a new source of foreign investment -- up to $10 billion annually.
It's all part of the EB-5 Immigrant Investor program, which allows foreign investors to eventually become permanent U.S. residents. It was created by Congress in 1991 to spur foreign investment and create new jobs in the U.S.
Until now, the program has gotten little attention. In fact, the U.S. Citizenship and Immigration Service last year issued only 780 visas out of 10,000 set aside annually. Spokesman William Wright estimates the agency will issue 1,000 EB-5 visas this year.
But that may change as businesses search for capital during a time when the credit markets in the U.S. have tightened significantly.
Foreigners invest locally in return for green card
Orlando Business Journal - by Dan Ping
Rob Sutton wants to attract foreign investors to fund an expansion of Lake Buena Vista Resort Village & Spa.
The U.S. Citizenship and Immigration Service will decide next month whether or not to name Central Florida as a major hub where local businesses can tap into a new source of foreign investment -- up to $10 billion annually.
It's all part of the EB-5 Immigrant Investor program, which allows foreign investors to eventually become permanent U.S. residents. It was created by Congress in 1991 to spur foreign investment and create new jobs in the U.S.
Until now, the program has gotten little attention. In fact, the U.S. Citizenship and Immigration Service last year issued only 780 visas out of 10,000 set aside annually. Spokesman William Wright estimates the agency will issue 1,000 EB-5 visas this year.
But that may change as businesses search for capital during a time when the credit markets in the U.S. have tightened significantly.
Some interesting graphs on real estate for the last year
Some "meat" for those people looking for statistics on house purchases here in Florida and the Orlando region.
Type of property purchased by country of origin:
![Florida_presentation_(SIMA_2008)-final[1][1]-219.jpg](http://cjbulow.files.wordpress.com/2008/08/florida-presentation-sima-2008-final11-219.jpg)
Region of origin of foreign buyers:
![Florida_presentation_(SIMA_2008)-final[1][1]-215.jpg](http://cjbulow.files.wordpress.com/2008/08/florida-presentation-sima-2008-final11-215.jpg)
Sale price of homes purchased:
![Florida_presentation_(SIMA_2008)-final[1][1]-209.jpg](http://cjbulow.files.wordpress.com/2008/08/florida-presentation-sima-2008-final11-209.jpg)
Principal purpose for purchasing home:
![Florida_presentation_(SIMA_2008)-final[1][1]-188.jpg](http://cjbulow.files.wordpress.com/2008/08/florida-presentation-sima-2008-final11-1881.jpg)
The strong Euro:
![Florida_presentation_(SIMA_2008)-final[1][1]-156.jpg](http://cjbulow.files.wordpress.com/2008/08/florida-presentation-sima-2008-final11-156.jpg)
Type of property purchased by country of origin:
Region of origin of foreign buyers:
Sale price of homes purchased:
Principal purpose for purchasing home:
The strong Euro:
Tuesday, August 5, 2008
Charity begins at home
REALTORS® and Habitat Bring a Local Family Home
WASHINGTON, July 28, 2008
Martina Dunston of Orlando, Fla., will soon have a place of her own to call home thanks to the National Association of Realtors®. On Saturday, Realtors® raised the walls of Dunston’s new Habitat for Humanity home.
Dunston and her three children, James, 7; Amya, 4; and Destini, 18 months, were joined by leaders of NAR, the Florida Association of Realtors®, the Orlando Regional Realtor® Association and Habitat for Humanity Orlando at the wall raising ceremony. The Dunston family will receive the keys to their one story, three-bedroom home when it is dedicated during the 2008 REALTORS® Conference & Expo in Orlando, November 7-10.
“Realtors® build communities and are committed to helping families like Ms. Dunston and her children realize the dream of affordable homeownership,” said Mark Foreman, NAR vice-president and liaison to committees, who spoke at the ceremony. “We look forward to joining Habitat for Humanity in November and handing Ms. Dunston the keys to her new home.”
Martina Dunston has personally contributed more than 250 hours of sweat equity, building Habitat houses for other local families before construction of her own home began. In recent years, several other Habitat for Humanity houses have been built in Dunston’s new neighborhood.
For the past eight years NAR has worked together with Habitat for Humanity International to build a home in the host city for NAR’s annual conference. Realtors® have also contributed to Habitat for Humanity’s post-Katrina homebuilding efforts along the Gulf Coast and abroad.
The 2008 REALTORS® Conference & Expo will take place at the Orange County Convention Center. This year’s conference, with the theme “Destination Success – Full Speed Ahead,” will feature hundreds of conference sessions, more than 700 exhibitors, and tens of thousands of real estate professionals from the U.S. and 50 countries.
Habitat for Humanity Orlando is a not-for-profit, ecumenical, Christian organization dedicated to transforming the lives of low-income, hardworking families through the American Dream of homeownership. It is one of approximately 2,100 local affiliates of Habitat for Humanity International. Support from sponsors, donors and volunteers directly benefit the Central Florida community. To learn more about Habitat for Humanity Orlando or to make a donation, call 407/ 648-4567 or visit www.habitat-orlando.org.
WASHINGTON, July 28, 2008
Martina Dunston of Orlando, Fla., will soon have a place of her own to call home thanks to the National Association of Realtors®. On Saturday, Realtors® raised the walls of Dunston’s new Habitat for Humanity home.
Dunston and her three children, James, 7; Amya, 4; and Destini, 18 months, were joined by leaders of NAR, the Florida Association of Realtors®, the Orlando Regional Realtor® Association and Habitat for Humanity Orlando at the wall raising ceremony. The Dunston family will receive the keys to their one story, three-bedroom home when it is dedicated during the 2008 REALTORS® Conference & Expo in Orlando, November 7-10.
“Realtors® build communities and are committed to helping families like Ms. Dunston and her children realize the dream of affordable homeownership,” said Mark Foreman, NAR vice-president and liaison to committees, who spoke at the ceremony. “We look forward to joining Habitat for Humanity in November and handing Ms. Dunston the keys to her new home.”
Martina Dunston has personally contributed more than 250 hours of sweat equity, building Habitat houses for other local families before construction of her own home began. In recent years, several other Habitat for Humanity houses have been built in Dunston’s new neighborhood.
For the past eight years NAR has worked together with Habitat for Humanity International to build a home in the host city for NAR’s annual conference. Realtors® have also contributed to Habitat for Humanity’s post-Katrina homebuilding efforts along the Gulf Coast and abroad.
The 2008 REALTORS® Conference & Expo will take place at the Orange County Convention Center. This year’s conference, with the theme “Destination Success – Full Speed Ahead,” will feature hundreds of conference sessions, more than 700 exhibitors, and tens of thousands of real estate professionals from the U.S. and 50 countries.
Habitat for Humanity Orlando is a not-for-profit, ecumenical, Christian organization dedicated to transforming the lives of low-income, hardworking families through the American Dream of homeownership. It is one of approximately 2,100 local affiliates of Habitat for Humanity International. Support from sponsors, donors and volunteers directly benefit the Central Florida community. To learn more about Habitat for Humanity Orlando or to make a donation, call 407/ 648-4567 or visit www.habitat-orlando.org.
Technology and real estate
Watch our soon for exciting new ways to buy and sell real estate through MRI Overseas property:
Powerful mobile tools, voice-activated devices and a lot of video will better connect real estate professionals with their customers in coming years, predicted a panel of technology experts at NAR’s Midyear Meetings in May.
Most of the new technology will follow the mantra: “I think, I get,” said panel member J. Lennox Scott, chairman and CEO of John L. Scott Real Estate in Seattle.
Tune in to these 5 technology predictions
Many more mobiles
The real estate industry is already ahead of the curve when it comes to smart phone usage. Currently, 11 percent of the population in the United States has smart phones, while 28 percent in real estate own one. And within the next 12 to 24 months, another 30 percent of real estate pros are expected to buy some form of handheld device, said Errol Samuelson, president of Realtor.com. In surveys, real estate professionals say they use handhelds because the devices present a more professional image, enable them to be more responsive to buyers, and help them secure and serve clients. Samuelson predicted that in the next decade, more people will access the Internet via mobile devices than through their PCs. To spur this increased usage, Samuelson expects an explosion in smart phone application software, battery life, screen size, and easier interfaces such as touch screens.
Widespread video use
More than 141 million viewers watch 3.3 billion videos on You Tube a month, which is more than double the 65.6 million who subscribe to cable TV, Samuelson said. Yet real estate practitioners have been slow to adopt video in their business, despite the fact that 74 percent of consumers say they would be more inclined to list with a salesperson who puts a video of their home on the Web, said Samuelson..
Customized content
Consumers will be able to set more personalized parameters for the real estate information they want, creating more individualized and customized content as part of their real estate searches.
Voice command technology
No more looking down and hunting for information on your mobile devices while you’re driving. More technology will incorporate voice command options that let you call up information with just the sound of your voice, Scott said.
High-speed wireless networks
The recent emergence of 3G cellular networks gives mobile devices Web access at close to cable modem speeds. Some companies are even promising networks that will work at four times these speeds by 2010. Networks are also expanding their capacities so customers can connect at longer distances from towers.
More ads on mobile devices
Soon you’ll be able to promote your property listings and market your services more quickly than ever before, all over a mobile device.
SOURCES: REALTOR® magazine online, Melissa Dittmann Tracey
Powerful mobile tools, voice-activated devices and a lot of video will better connect real estate professionals with their customers in coming years, predicted a panel of technology experts at NAR’s Midyear Meetings in May.
Most of the new technology will follow the mantra: “I think, I get,” said panel member J. Lennox Scott, chairman and CEO of John L. Scott Real Estate in Seattle.
Tune in to these 5 technology predictions
Many more mobiles
The real estate industry is already ahead of the curve when it comes to smart phone usage. Currently, 11 percent of the population in the United States has smart phones, while 28 percent in real estate own one. And within the next 12 to 24 months, another 30 percent of real estate pros are expected to buy some form of handheld device, said Errol Samuelson, president of Realtor.com. In surveys, real estate professionals say they use handhelds because the devices present a more professional image, enable them to be more responsive to buyers, and help them secure and serve clients. Samuelson predicted that in the next decade, more people will access the Internet via mobile devices than through their PCs. To spur this increased usage, Samuelson expects an explosion in smart phone application software, battery life, screen size, and easier interfaces such as touch screens.
Widespread video use
More than 141 million viewers watch 3.3 billion videos on You Tube a month, which is more than double the 65.6 million who subscribe to cable TV, Samuelson said. Yet real estate practitioners have been slow to adopt video in their business, despite the fact that 74 percent of consumers say they would be more inclined to list with a salesperson who puts a video of their home on the Web, said Samuelson..
Customized content
Consumers will be able to set more personalized parameters for the real estate information they want, creating more individualized and customized content as part of their real estate searches.
Voice command technology
No more looking down and hunting for information on your mobile devices while you’re driving. More technology will incorporate voice command options that let you call up information with just the sound of your voice, Scott said.
High-speed wireless networks
The recent emergence of 3G cellular networks gives mobile devices Web access at close to cable modem speeds. Some companies are even promising networks that will work at four times these speeds by 2010. Networks are also expanding their capacities so customers can connect at longer distances from towers.
More ads on mobile devices
Soon you’ll be able to promote your property listings and market your services more quickly than ever before, all over a mobile device.
SOURCES: REALTOR® magazine online, Melissa Dittmann Tracey
Who bought in Florida in 2007?
Study: Single person, non-child families trend in 2007 Florida home sales
ORLANDO, Fla. – Jan. 8, 2008 – One in three Florida homebuyers is single, with 21 percent of 2007 home purchases made by single women and 12 percent by single men – just one finding from the newly-released Florida version of NAR’s “2007 Profile of Florida Homebuyers and Sellers.” Another highlight: Over two-thirds of Florida buyers (64 percent) had no children younger than 18.
The 2007 Profile of Florida Homebuyers and Sellers describes the characteristics and motivations of recent homebuyers and sellers in Florida to help real estate professionals track the changing demands of consumers in a dynamic market. Here’s a summary of the report’s findings:
Characteristics of homebuyers
• The median age of homebuyers was 43 years old. Among first-time buyers, the median age was 32.
• The 2006 median household income of homebuyers was $67,500 compared to $74,000 among homebuyers nationally.
• Sixty-four percent of homebuyers reported that there were no children under age 18 residing in the home.
• Fifty-nine percent of homebuyers were married couples, 21 percent single females, 12 percent single males, and 6 percent were unmarried couples.
• Eighteen percent of Florida homebuyers reported they were born outside the United States, compared to 9 percent nationally.
• First-time homebuyers accounted for 38 percent of homes purchased in 2007.
• Forty-nine percent of first-time homebuyers were between 25 and 34 years old.
• The median income of first-time homebuyers was $58400 compared to $58,600 among all first-time buyers nationally.
• Sixty-five percent of homebuyers between 18 and 24 purchased a home because of their desire to own a home of their own and establish a household.
• Thirty-eight percent of homebuyers reported using social networking Web sites, such as, MySpace, Facebook, LinkedIn, and Friendster. Among homebuyers aged 18 to 24, 76 percent reported using social networking sites.
Characteristics of homes purchased
• Twenty-seven percent of recent homebuyers purchased newly built homes.
• Fifty-eight percent of homes purchased were detached single-family homes.
• The typical homebuyer purchased a home 14 miles from their previous residence.
• The median price of homes purchased was $230,000 compared to $215,000 in the U.S.
• The typical buyer purchased a home that was 1,700 square feet in size.
• Recent homebuyers plan to live in their home a median of 10 years.
The home search process
• Twenty-five percent of recent buyers reported that their first step in the home-buying process was looking online for properties for sale. Eighteen percent of first-time buyers and 24 percent of repeat buyers reported their first step was to contact a real estate agent.
• Eighty percent of homebuyers used the Internet to search for homes.
• The typical homebuyer searched for a home for a median 8 weeks and saw a median 10 homes.
• Eighty-four percent of homebuyers used a real estate professional during their home search.
• Among homebuyers, the typical Internet searcher was 40 years old and visited a median 10 homes. The typical homebuyer that did not use the Internet to search for homes was 53 years old and saw a median 5 homes.
• Thirty-seven percent of homebuyers first learned about the home they purchased from a real estate professional; 19 percent first learned about the home they purchased through the Internet.
• Seventy-two percent of buyers viewed the Internet as a very useful tool in their home search.
• Real estate agents were viewed as a very useful information source by 67 percent of buyers, and as a somewhat useful information source by an additional 23 percent of buyers searching for a home.
Home buying and real estate professionals
• Seventy-one percent of homebuyers purchased their home through a real estate agent or broker.
• Buyers searched for a median of two weeks on their own before contacting an agent.
• A friend, family member, neighbor or relative referred 52 percent of first-time buyers to their agent.
• Ninety-eight percent of buyers ranked honesty and integrity as a “very important” factor when choosing a real estate professional to assist with a home purchase.
• When asked about their agent’s performance on those qualities considered important, 80 percent reported they were “very satisfied” with the honesty and integrity of their agent.
• Sixty-eight percent of recent buyers will definitely use their agent again, and an additional 19 percent will probably use the agent again or recommend to others.
Financing the home purchase
• Ninety percent of homebuyers financed their home purchase; 98 percent of first-time homebuyers financed the purchase of their home compared to 90 percent of repeat buyers.
• Savings were the chief source of the downpayment for most first-time homebuyers (69 percent).
• Fifty-three percent of repeat buyers used proceeds from the sale of their primary residence toward the downpayment; 46 percent relied on savings for a portion of the downpayment.
• Forty-seven percent of all buyers believe that their home purchase was a better financial investment than stocks, and an additional 30 percent of buyers feel their home purchase was at least as good an investment as stocks.
Home sellers and their selling experience
• The median age of home sellers was 48 years; they had a median income of $83900.
• Sixty-nine percent of home sellers were married and 61 percent had no children under 18 years old living at home.
• Fifty-one percent of home sellers traded up to a larger home when purchasing their next home.
• The typical home seller owned their home for 6 years.
• Fifty-three percent of recent home sellers reported that they undertook home improvement or remodeling projects within three months prior to putting their home on the market.
• The typical home was on the market for 10 weeks. 33 percent of home sellers did not reduce their asking price before their home sold.
• Recent sellers typically sold their homes for 96 percent of the listing price.
• Seventy-nine percent of sellers used an agent or broker to sell their home.
• Sixty-seven percent of all sellers were very satisfied with the selling process.
Home sellers and real estate professionals
• Fifty-nine percent of sellers contacted only one agent before selecting one to help assist in the sale of their home.
• When selecting a real estate professional, 36 percent of sellers received a recommendation from a friend, neighbor or relative.
• The reputation of the agent was the most important factor when choosing a real estate professional for 39 percent of recent sellers.
• Twenty-six percent of sellers used the same agent for their home purchase.
• For 37 percent of sellers, their most important expectation is that the real estate agent will help sell the home within a specific timeframe.
• Eighty-six percent of sellers reported that their home was listed or advertised on the Internet.
• Eighty-two percent of sellers used an agent that provided a broad range of services and managed most aspects of the sales transaction.
• Sixty-two percent of sellers reported they would definitely use the same real estate agent again.
For sale by owner (FSBO)
• Seventeen percent of sellers sold their home without the assistance of an agent compared with 12 percent of sellers nationally. Among all sellers, 3 percent were FSBO sellers who knew the buyer.
• Eighty percent of FSBO sellers sold a detached single-family home.
• For 19 percent of FSBO sellers, the most difficult task in selling their home was understanding and performing the necessary paperwork to complete the transaction, for 3 percent it was preparing the home for sale, and for 12 percent the most difficult task was getting the price right.
To download the complete report in PDF format, go to floridarealtors.org at: http://www.floridarealtors.org/LegislativeCenter/Research/index.cfm
ORLANDO, Fla. – Jan. 8, 2008 – One in three Florida homebuyers is single, with 21 percent of 2007 home purchases made by single women and 12 percent by single men – just one finding from the newly-released Florida version of NAR’s “2007 Profile of Florida Homebuyers and Sellers.” Another highlight: Over two-thirds of Florida buyers (64 percent) had no children younger than 18.
The 2007 Profile of Florida Homebuyers and Sellers describes the characteristics and motivations of recent homebuyers and sellers in Florida to help real estate professionals track the changing demands of consumers in a dynamic market. Here’s a summary of the report’s findings:
Characteristics of homebuyers
• The median age of homebuyers was 43 years old. Among first-time buyers, the median age was 32.
• The 2006 median household income of homebuyers was $67,500 compared to $74,000 among homebuyers nationally.
• Sixty-four percent of homebuyers reported that there were no children under age 18 residing in the home.
• Fifty-nine percent of homebuyers were married couples, 21 percent single females, 12 percent single males, and 6 percent were unmarried couples.
• Eighteen percent of Florida homebuyers reported they were born outside the United States, compared to 9 percent nationally.
• First-time homebuyers accounted for 38 percent of homes purchased in 2007.
• Forty-nine percent of first-time homebuyers were between 25 and 34 years old.
• The median income of first-time homebuyers was $58400 compared to $58,600 among all first-time buyers nationally.
• Sixty-five percent of homebuyers between 18 and 24 purchased a home because of their desire to own a home of their own and establish a household.
• Thirty-eight percent of homebuyers reported using social networking Web sites, such as, MySpace, Facebook, LinkedIn, and Friendster. Among homebuyers aged 18 to 24, 76 percent reported using social networking sites.
Characteristics of homes purchased
• Twenty-seven percent of recent homebuyers purchased newly built homes.
• Fifty-eight percent of homes purchased were detached single-family homes.
• The typical homebuyer purchased a home 14 miles from their previous residence.
• The median price of homes purchased was $230,000 compared to $215,000 in the U.S.
• The typical buyer purchased a home that was 1,700 square feet in size.
• Recent homebuyers plan to live in their home a median of 10 years.
The home search process
• Twenty-five percent of recent buyers reported that their first step in the home-buying process was looking online for properties for sale. Eighteen percent of first-time buyers and 24 percent of repeat buyers reported their first step was to contact a real estate agent.
• Eighty percent of homebuyers used the Internet to search for homes.
• The typical homebuyer searched for a home for a median 8 weeks and saw a median 10 homes.
• Eighty-four percent of homebuyers used a real estate professional during their home search.
• Among homebuyers, the typical Internet searcher was 40 years old and visited a median 10 homes. The typical homebuyer that did not use the Internet to search for homes was 53 years old and saw a median 5 homes.
• Thirty-seven percent of homebuyers first learned about the home they purchased from a real estate professional; 19 percent first learned about the home they purchased through the Internet.
• Seventy-two percent of buyers viewed the Internet as a very useful tool in their home search.
• Real estate agents were viewed as a very useful information source by 67 percent of buyers, and as a somewhat useful information source by an additional 23 percent of buyers searching for a home.
Home buying and real estate professionals
• Seventy-one percent of homebuyers purchased their home through a real estate agent or broker.
• Buyers searched for a median of two weeks on their own before contacting an agent.
• A friend, family member, neighbor or relative referred 52 percent of first-time buyers to their agent.
• Ninety-eight percent of buyers ranked honesty and integrity as a “very important” factor when choosing a real estate professional to assist with a home purchase.
• When asked about their agent’s performance on those qualities considered important, 80 percent reported they were “very satisfied” with the honesty and integrity of their agent.
• Sixty-eight percent of recent buyers will definitely use their agent again, and an additional 19 percent will probably use the agent again or recommend to others.
Financing the home purchase
• Ninety percent of homebuyers financed their home purchase; 98 percent of first-time homebuyers financed the purchase of their home compared to 90 percent of repeat buyers.
• Savings were the chief source of the downpayment for most first-time homebuyers (69 percent).
• Fifty-three percent of repeat buyers used proceeds from the sale of their primary residence toward the downpayment; 46 percent relied on savings for a portion of the downpayment.
• Forty-seven percent of all buyers believe that their home purchase was a better financial investment than stocks, and an additional 30 percent of buyers feel their home purchase was at least as good an investment as stocks.
Home sellers and their selling experience
• The median age of home sellers was 48 years; they had a median income of $83900.
• Sixty-nine percent of home sellers were married and 61 percent had no children under 18 years old living at home.
• Fifty-one percent of home sellers traded up to a larger home when purchasing their next home.
• The typical home seller owned their home for 6 years.
• Fifty-three percent of recent home sellers reported that they undertook home improvement or remodeling projects within three months prior to putting their home on the market.
• The typical home was on the market for 10 weeks. 33 percent of home sellers did not reduce their asking price before their home sold.
• Recent sellers typically sold their homes for 96 percent of the listing price.
• Seventy-nine percent of sellers used an agent or broker to sell their home.
• Sixty-seven percent of all sellers were very satisfied with the selling process.
Home sellers and real estate professionals
• Fifty-nine percent of sellers contacted only one agent before selecting one to help assist in the sale of their home.
• When selecting a real estate professional, 36 percent of sellers received a recommendation from a friend, neighbor or relative.
• The reputation of the agent was the most important factor when choosing a real estate professional for 39 percent of recent sellers.
• Twenty-six percent of sellers used the same agent for their home purchase.
• For 37 percent of sellers, their most important expectation is that the real estate agent will help sell the home within a specific timeframe.
• Eighty-six percent of sellers reported that their home was listed or advertised on the Internet.
• Eighty-two percent of sellers used an agent that provided a broad range of services and managed most aspects of the sales transaction.
• Sixty-two percent of sellers reported they would definitely use the same real estate agent again.
For sale by owner (FSBO)
• Seventeen percent of sellers sold their home without the assistance of an agent compared with 12 percent of sellers nationally. Among all sellers, 3 percent were FSBO sellers who knew the buyer.
• Eighty percent of FSBO sellers sold a detached single-family home.
• For 19 percent of FSBO sellers, the most difficult task in selling their home was understanding and performing the necessary paperwork to complete the transaction, for 3 percent it was preparing the home for sale, and for 12 percent the most difficult task was getting the price right.
To download the complete report in PDF format, go to floridarealtors.org at: http://www.floridarealtors.org/LegislativeCenter/Research/index.cfm
Monday, August 4, 2008
Unsold housing stock falls
A fall in inventory is a hopeful sign that the market is turning upwards.
Metro Orlando's inventory of new subdivision housing falls
Jerry W. Jackson | Sentinel Staff Writer
July 30, 2008
As people continued moving into new homes faster than builders were erecting them, Metro Orlando's inventory of new subdivision housing fell again during the second quarter, according to a closely watched survey released Tuesday.
The report by Metrostudy found 3,646 finished-but-vacant single-family homes in the four-county metro area, down from 5,560 last year at the same time.
The area's total inventory, which includes homes under construction and model units, was down 39 percent from a year earlier to 7,033, or a 7.1-month supply. A market is generally considered to be in balance when the pace of sales and the number of units available combine for a six-month supply.
New-home starts in Orange, Seminole, Osceola and Lake counties totaled 1,701 during the second quarter, down 46.3 percent from the same period a year ago. But the second-quarter total was 12 percent higher than the number of first-quarter starts, a sign that builders were anticipating an increase in demand, Metrostudy reported.
"New-home sales are picking up in a few areas, where there also is some growth in base pricing, although that increase has been slow after more than a year of price reductions," said Anthony Crocco, director of Texas-based Metrostudy's Central and North Florida division.
The number of new-home closings in the second quarter -- 2,215 -- was down 45.4 percent from a year earlier and also lower than the first quarter. Metrostudy doesn't count a new-home sale as complete until someone moves into the dwelling.
Avalon Park in east Orange County was the busiest subdivision in the metro region during the 12 months that ended June 30, with 208 new-home starts, , followed by Lakes of Mount Dora in Lake County (158), Berkshire Park in Orange (155), Sullivan Ranch in Lake (130) and Orlando's Baldwin Park (121).
A separate new-home market report, released this week by Charles Wayne Consulting Inc. of Maitland, provided additional evidence to suggest that a turnaround could be under way.
Jim Lewis, president of the real estate research company, said in his report, "It now appears that the worst of the housing construction slowdown may be behind us."
The Charles Wayne survey, conducted slightly differently from the Metrostudy survey, found a sharp rebound in single-family home starts in the Clermont/Groveland/Mascotte area of south Lake County, with 153 homes under way in 38 developments -- a 219 percent increase from the first quarter. Northeast Polk County, though officially outside the metro area, had the most new-home starts in the Orlando market during the period, with 285 units in 105 subdivisions, up 29 percent from the first quarter.
In all, 384 subdivisions reported building and marketing homes in 18 submarkets, and 12 of those 18 submarkets recorded an increase in home construction from the first quarter.
Lewis said it's too early to celebrate, however. Although the numbers are "a move in the right direction," they are building on very weak quarters from last year.
Jerry W. Jackson can be reached at jwjackson@orlandosentinel.com or 407-420-5721.
Metro Orlando's inventory of new subdivision housing falls
Jerry W. Jackson | Sentinel Staff Writer
July 30, 2008
As people continued moving into new homes faster than builders were erecting them, Metro Orlando's inventory of new subdivision housing fell again during the second quarter, according to a closely watched survey released Tuesday.
The report by Metrostudy found 3,646 finished-but-vacant single-family homes in the four-county metro area, down from 5,560 last year at the same time.
The area's total inventory, which includes homes under construction and model units, was down 39 percent from a year earlier to 7,033, or a 7.1-month supply. A market is generally considered to be in balance when the pace of sales and the number of units available combine for a six-month supply.
New-home starts in Orange, Seminole, Osceola and Lake counties totaled 1,701 during the second quarter, down 46.3 percent from the same period a year ago. But the second-quarter total was 12 percent higher than the number of first-quarter starts, a sign that builders were anticipating an increase in demand, Metrostudy reported.
"New-home sales are picking up in a few areas, where there also is some growth in base pricing, although that increase has been slow after more than a year of price reductions," said Anthony Crocco, director of Texas-based Metrostudy's Central and North Florida division.
The number of new-home closings in the second quarter -- 2,215 -- was down 45.4 percent from a year earlier and also lower than the first quarter. Metrostudy doesn't count a new-home sale as complete until someone moves into the dwelling.
Avalon Park in east Orange County was the busiest subdivision in the metro region during the 12 months that ended June 30, with 208 new-home starts, , followed by Lakes of Mount Dora in Lake County (158), Berkshire Park in Orange (155), Sullivan Ranch in Lake (130) and Orlando's Baldwin Park (121).
A separate new-home market report, released this week by Charles Wayne Consulting Inc. of Maitland, provided additional evidence to suggest that a turnaround could be under way.
Jim Lewis, president of the real estate research company, said in his report, "It now appears that the worst of the housing construction slowdown may be behind us."
The Charles Wayne survey, conducted slightly differently from the Metrostudy survey, found a sharp rebound in single-family home starts in the Clermont/Groveland/Mascotte area of south Lake County, with 153 homes under way in 38 developments -- a 219 percent increase from the first quarter. Northeast Polk County, though officially outside the metro area, had the most new-home starts in the Orlando market during the period, with 285 units in 105 subdivisions, up 29 percent from the first quarter.
In all, 384 subdivisions reported building and marketing homes in 18 submarkets, and 12 of those 18 submarkets recorded an increase in home construction from the first quarter.
Lewis said it's too early to celebrate, however. Although the numbers are "a move in the right direction," they are building on very weak quarters from last year.
Jerry W. Jackson can be reached at jwjackson@orlandosentinel.com or 407-420-5721.
Foreign flights to Orlando on the up and up...
We here at MRI are starting to notice the effects of this up-turn in people arriving in Orlando:
Tourism & Travel
Foreign flights to Orlando pick up slack at airport
Jason Garcia and Scott Powers | Sentinel Staff Writers
August 4, 2008
Overall passenger traffic may have slipped 3.3 percent at Orlando International Airport in June compared with a year earlier, but international travel continues to be a bright spot.
The airport's international traffic rose nearly 10 percent in June compared with the same month a year ago. And it was up more than 23 percent through the first half of the year. The growth has been fueled in large part by new service from Germany's Lufthansa and Ireland's Aer Lingus, as well as increased service from carriers such as British Airways and Copa Airlines.
Also helping is the weak U.S. dollar, which makes American vacations cheaper for foreign tourists.
The same forces are also driving big gains in international traffic across the country. The federal government reported last week that international travel to the U.S. as a whole jumped 14 percent in May compared with the same month in 2007. Travel to the U.S. was up 12 percent through the first five months of the year.
What's more, spending by international tourists has ballooned 22 percent so far this year -- to more than $57 billion.
Tourism & Travel
Foreign flights to Orlando pick up slack at airport
Jason Garcia and Scott Powers | Sentinel Staff Writers
August 4, 2008
Overall passenger traffic may have slipped 3.3 percent at Orlando International Airport in June compared with a year earlier, but international travel continues to be a bright spot.
The airport's international traffic rose nearly 10 percent in June compared with the same month a year ago. And it was up more than 23 percent through the first half of the year. The growth has been fueled in large part by new service from Germany's Lufthansa and Ireland's Aer Lingus, as well as increased service from carriers such as British Airways and Copa Airlines.
Also helping is the weak U.S. dollar, which makes American vacations cheaper for foreign tourists.
The same forces are also driving big gains in international traffic across the country. The federal government reported last week that international travel to the U.S. as a whole jumped 14 percent in May compared with the same month in 2007. Travel to the U.S. was up 12 percent through the first five months of the year.
What's more, spending by international tourists has ballooned 22 percent so far this year -- to more than $57 billion.
Friday, August 1, 2008
Tennessee and the mountains...
We've been marketing some stunning properties in Tennessee for some little while now but with the exchange rate being so good for European buyers, we're even more convinced that now is a great time to buy one of those luxury "log cabins" although that term really doesn't do justice to what these are!
Take a look at the pictures below to see what I mean:
and then there's a copy of the mail-shot we're sending out to our MRI clients shortly:
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Take a look at the pictures below to see what I mean:
and then there's a copy of the mail-shot we're sending out to our MRI clients shortly:
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Bargain Tennessee holiday homes! Come and see on a £149 trip... Dear XXXXXXXX Having helped people invest profitably in Florida for many years, we couldn't miss the chance to tell you about these luxury "vacation lodges" in up-and-coming Tennessee. We think this is the best US property investment for UK clients right now. Find out more today
There are limited units at these prices, so fill in the form today. We'll give you more info and tell you about our 5-day viewing trips from the UK for only £149 per person. NOW is the time to grab a bargain stateside! |  |
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| New World Estates is an internet marketing company working with carefully selected property developers & agents. Offer price only for couples in the UK. Full terms & conditions on request. Information provided in good faith & intended for guidance purposes. |
Electricity....
...not normally a problem in the USA - unlike the Marbella HQ where the demands of the staff, computers and air-conditioning units overwhelm the abilities of Sevillana to keep a constant or regular supply, so power outages and brown-outs are the norm there. The regular "beep, beep, beep" of the UPS' is a tune familiar to all.
However, yesterday, as well as a loud bang across the road from the office where the electricity company were working (with no apparent damage to life, limb or property), we also suffered a total shut-down at home along with the rest of the apartment block as the nearly 30-year old transformer outside blew - quite spectacularly, with molten metal sprayed all inside the casing.
3 vans, lights flashing, one crane, 5 engineers and 3 hours later, power was restored to cheers from the various onlookers.
A shot of the newly installed electrical box and the guys who got us back up and running - no Internet in the house for two hours!
However, yesterday, as well as a loud bang across the road from the office where the electricity company were working (with no apparent damage to life, limb or property), we also suffered a total shut-down at home along with the rest of the apartment block as the nearly 30-year old transformer outside blew - quite spectacularly, with molten metal sprayed all inside the casing.
3 vans, lights flashing, one crane, 5 engineers and 3 hours later, power was restored to cheers from the various onlookers.
A shot of the newly installed electrical box and the guys who got us back up and running - no Internet in the house for two hours!
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