NAHREP Report: Major Surge in Latino Homeownership

Despite tight supply conditions, home ownership among Hispanic households spiked in 2015, according to the State of Hispanic Home Ownership Report published by the Hispanic Wealth Project and the National Association of Hispanic Real Estate Professionals. This was the first increase observed since 2009.

latino_real_estateHispanic home ownership rate averaged 45.6 percent in 2015, just 0.2 percent higher than the year prior. But in just the 12 months ending December 2015, it soared from 44.5 percent to 46.7 percent — the largest one-year increase in more than a decade.

“The Hispanic home ownership numbers were very encouraging, and all leading indicators strongly suggest that the trend will continue,” says Joseph Nery, president of NAHREP. “Policy makers and the housing industry need to recognize that the face of home ownership in America has changed, and it is in everyone’s interest to ensure that these new consumers have access to relevant lending products, affordable housing stock, and culturally competent service providers in the coming years.”

It should also be mentioned, that Latinos led in workforce participation and household formation growth nationwide. This seems to indicate Hispanics to be a primary driver of overall home ownership rate the next decade and beyond.

The significance of Hispanics to housing and the economy will continue to grow, creating opportunity for all who focus on this vibrant, dynamic, and important part of the U.S. economy.

Source: National Association of Hispanic Real Estate Professionals

Homeowner Equity is on the Rise

With home prices inching up, more Americans are emerging from being underwater (owing more on their mortgage than their home is currently worth).

Several reports have tried to estimate how many homeowners came out from being underwater last year. CoreLogic reported that about 1.4 million borrowers moved above water for the first nine months of 2012. Zillow recently estimated that 2 million homeowners emerged last year. And J.P. Morgan Securities reported that the number of underwater homeowners fell from 11 million to 7 million in 2012.

“Estimates can vary for a number of reasons,” The Wall Street Journal reports. “Underwater borrowers can move back to positive equity by paying down their loan principal or by seeing prices rise. Properties can also ‘exit’ negative equity when they go through foreclosure or when the bank approves a short sale. In those cases, borrowers aren’t being returned to positive equity – instead, they simply cease to be borrowers.”

Many of the largest home gains across the country came in areas that had a high number of underwater borrowers.

“If this correlation persists in the coming years, the underwater problem could fade much faster than implied by the speed of national house prices appreciation,” Goldman Sachs researchers told The Wall Street Journal.



Continued Florida market upswing seen in January 2013

Florida’s housing market reported increased sales, higher median prices, more pending sales and the continued shrinking of inventory levels in January 2013, according to the latest housing data released by Florida Realtors®.

“This year started out strong for Florida’s housing market,” said 2013 Florida Realtors President Dean Asher, broker-owner with Don Asher & Associates Inc. in Orlando. “Homes sales continue to rise, mortgage rates remain near historic lows and the inventory of for-sale homes is lower than it’s been in years. Plus, the time it takes for a home to sell is dropping; the median days a home is on the market declined about 15 percent for both single-family homes and for townhome-condo properties. However, overly restrictive credit requirements remain an obstacle for many potential buyers, who find it difficult to access affordable financing options.”

Statewide closed sales of existing single-family homes totaled 13,679 in January, up 11.7 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.

Meanwhile, pending sales – contracts that are signed but not yet completed or closed – for existing single-family homes last month rose 31 percent over the previous January. The statewide median sales price for single-family existing homes last month was $145,000, up 12.4 percent from the previous year.

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in December 2012 was $180,300, up 10.9 percent from the previous year. In California, the statewide median sales price for single-family existing homes in December was $366,930; in Massachusetts, it was $303,500; in Maryland, it was $243,741; and in New York, it was $229,000.

The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Looking at Florida’s year-to-year comparison for sales of townhouse-condos, a total of 6,670 units sold statewide last month, up 2 percent compared to January 2012. Meanwhile, pending sales for townhouse-condos in January increased 17 percent compared to the year-ago figure. The statewide median for townhouse-condo properties was $112,000, up 18 percent over the previous year. NAR reported that the national median existing condo price in December 2012 was $184,100.

According to Florida Realtors’ data, this is the 13th month in a row that statewide median sales prices for both single-family homes and for townhouse-condo units seen a year-over-year increase.

The inventory for single-family homes stood at a 5.6-months’ supply in January; inventory for townhouse-condos was at a 6.2-months’ supply, according to Florida Realtors.

“I’m particularly impressed with the rise in percentage of list price received by sellers,” said Florida Realtors Chief Economist Dr. John Tuccillo, referring to the January data. Sellers of single-family existing homes in January received an average of 92.2 percent of their original list price; sellers of townhome-condo units received an average of 93 percent.

“This can encourage other potential sellers to come forward, thus easing the market’s inventory crunch,” Tuccillo noted. “But, despite the progress of Florida’s housing market, it’s still being held back by the difficulty consumers have in accessing credit.”

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.41 percent in January 2013, down from the 3.92 percent average during the same month a year earlier.

For the detailed 2013 report click here.


Welcome to my Real Estate Blog

Welcome to my Blog!

Here you will find interesting articles, thoughts, opinions and news about what is going on in South Florida real estate. If you need another reason to visit frequently, remember this: you will find plenty of tips for homeowners, sellers, and investors and information about South Florida luxury properties which will help you enhance the value of your property.

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Elizabeth A Ford

One | Sotheby’s International Realty
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