Florida Cities Lead in All-Cash Purchases

 By Amy Connolly

Redfin reports over one-third of U.S. home purchases in February were all cash – close to the record high. Florida saw big increases in year-over-year all-cash purchases.

SEATTLE – Six Florida metro areas lead the nation in all-cash home purchases, possibly highlighting the impact investors are having on the state’s housing market.

Jacksonville, West Palm Beach, Fort Lauderdale, Miami, Tampa and Orlando account for six of the top 12 metro areas in the United States that have home purchases made in cash, according to new Redfin research. Redfin defines an all-cash home purchase as one with no mortgage loan information on the deed.

Share of homes purchases made with cash:

1. Jacksonville: 54.4%         
2. West Palm Beach: 53.4%
3. Cleveland:  48.8%
4. Fort Lauderdale: 46.2%
5. Atlanta: 46.1%
6. Miami: 44.0%          
7. Baltimore: 43.1%
8. Tampa 42.8%
9. Detroit: 40.9%
10. Riverside: 40.7%
11. Cincinnati: 40.5%
12. Orlando: 40.1%

Investors aren’t the only reason accounting for the increase in all-cash purchases, Redfin said. Some buyers, flush with cash from equity from a previous home sale, are paying in cash to ease the sting of higher interest rates.

In Florida, Jacksonville saw an increase of 8 percentage points (ppts) in all-cash purchases from a year earlier – the biggest jump in the state. Tampa, Fort Lauderdale and Miami also saw year-over-year increases in all-cash purchases (2.5 ppts, 2.1 ppts and 1 ppts respectively). West Palm Beach and Orlando saw year-over-year decreases in all-cash purchases (-1.6 ppts and -.1 ppts, respectively).

Florida also follows the national trend of higher down payments, according to Redfin research. Nationally, median down payments increased 24.1% from a year earlier – the largest annual increase in percentage terms since April 2022, Redfin said. Jacksonville was the only city in the state to come out ahead of the national trend at a 29.4% increase in median down payments year over year.

West Palm Beach

• Median down payment: $80,000
• YOY change: 13.6%

Miami

• Median down payment: $77,220
• YOY change: 12.7%

Fort Lauderdale:

• Median down payment: $60,000
• YOY change: 11.4%

Orlando:

• Median down payment: $49,490
• YOY change: 23.7%

Tampa

• Median down payment: $39,702
• YOY change: 10.1%

Jacksonville

• Median down payment: $31,500
• YOY change: 29.4%

“Homebuyers are doing whatever they can to pull together a large down payment in order to lower their monthly payments moving forward,” said Rachel Riva, a real estate agent in Miami. “The smallest down payment I’ve seen recently is 25%. I had one client who put down 40%.”

© 2024 Florida Realtors®

Buyers Look to Family for Down Payment

 A new study found young homebuyers are twice as likely to use family money for down payment than they were five years ago. A majority still work for the money.

SEATTLE – More than one-third (36%) of Gen Zers and millennials who plan to buy a home soon expect to receive a cash gift from family to help fund their down payment, according to a new report from the online brokerage Redfin.

Young homebuyers are also receiving help from family members in other ways. Roughly one in six (16%) Gen Zers and millennials say they’ll use an inheritance to help fund their down payment, and 13% plan to live with their parents or other family members to save money for down payments.

Working to earn money is the most common way for young buyers to fund down payments: 60% report they’ll save directly from paychecks, and 39% are likely to work a second job, the most common responses to this question.

That’s based on a Redfin-commissioned survey conducted by Qualtrics in February 2024. The nationally representative survey was fielded to roughly 3,000 U.S. homeowners and renters.

Young homebuyers are twice as likely to use family money for down payment than they were 5 years ago

Just 18% of millennials used a cash gift from family to help fund their down payment in 2019, according to a Redfin survey from that time, and the share had only increased to 23% by 2023.  Note that the 2019 and 2023 survey results noted here are for millennials only, while the results in this report are for millennials combined with Gen Zers.

Young Americans are increasingly turning to family to help fund down payments largely because it’s increasingly expensive to purchase a home. U.S. home prices are up nearly 40% from before the pandemic, and they rose 7% in the last year alone, with low inventory propping up prices despite dwindling demand.

In many ways, Gen Zers and millennials face a more difficult financial landscape than their parents did at the same age: Their wages are lower than their parents’ wages were, they have more student loan debt, and inflation has pushed up the cost of nearly everything, including housing. 

The fact that so many young Americans rely on help from family to afford a down payment is emblematic of the fact that housing has gotten more expensive. A recent Redfin analysis found that starter homes are getting much more difficult to afford, pricing many Americans out of the starter-home market altogether. People without financial help from family are at a major disadvantage when it comes to purchasing a home.

“Nepo-homebuyers have a growing advantage over first-generation homebuyers. Because housing costs have soared so much, many young adults with family money get help from Mom and Dad even when they have jobs and earn a perfectly respectable income,” said Redfin Chief Economist Daryl Fairweather. “The bigger problem is that young Americans who don’t have family money are often shut out of homeownership. Many of them earn a perfectly good income, too, but they aren’t able to afford a home because they’re at a generational disadvantage; they don’t have a pot of family money to dip into. This contributes to wealth inequality and often prevents young people from gaining economic ground on their peers who come from more privileged backgrounds. The American Dream is just as much about class mobility as it is the home with a white-picket fence, and the housing affordability crisis has made both elements of the dream harder to attain.”

Survey results show that lack of affordability is biggest barrier to homeownership for young Americans

Among the young Americans who aren’t likely to buy a home in the near future, lack of affordability is the biggest barrier.

Nearly half (43%) of Gen Zers and millennials say they’re unlikely to purchase a home soon because the homes on the market are too expensive, the most common response. Roughly one-third (34%) say their ability to save for a down payment is a barrier to buying a home, the next most common response, followed by ability to afford mortgage payments (29%) and high mortgage rates (29%).

Of the Gen Zers and millennials who aren’t planning to buy a home in the near future, 16% cited lack of financial support from family or friends as a reason.

Source: Redfin

© 2024 Florida Realtors®     

Is a Fixer-Upper Right for You?

 Homes that are fixer-uppers might be a great deal but require a lot of time, patience and skill. Before making a decision, consider all of the factors that go into home renovations.

NEW YORK – Deciding whether to buy a new home or a fixer-upper is a significant decision that prospective homeowners face. Each option presents a unique set of challenges and opportunities, and the right choice depends on a variety of factors including budget, timeline, personal skills, and long-term goals.

Here's a comprehensive look at how to navigate this decision, weighing the pros and cons of each option:

• Your financial situation budget: New homes typically command a higher price but come with fewer immediate repair and maintenance issues. Fixer-uppers are often less expensive upfront but require a budget for renovations. Assess your financial situation meticulously, considering not only the purchase price but also the potential costs of renovations, which often exceed initial estimates.
• Financing: Mortgage options vary between new homes and fixer-uppers. Some loans, like the FHA 203 (k) and Fannie Mae HomeStyle, are specifically designed for homebuyers looking to finance both the purchase of a property and the renovations it needs. Understanding these options can help you make a more informed decision.
• Lifestyle and preferences timeline: If you need to move in immediately, a new home is likely your best bet. Fixer-uppers require time for renovations, which can be unpredictable and extend beyond initial timelines.
• Tolerance for disruption: Living in a home while renovating can be stressful and disruptive. Consider your tolerance for this disruption against the appeal of moving into a ready-to-live-in new home.
• Personal skills: Do you have the skills to take on some of the renovations, or are you willing to learn? If you relish the idea of DIY projects, a fixer-upper can be a rewarding project. If not, the convenience of a new home may be more appealing.
• Long-term goals customization: Fixer-uppers allow for customization. You can create a space that truly reflects your personal taste and needs. New homes might offer some level of customization, but options are often limited to what the builder offers.
• Investment potential: Fixer-uppers can offer great investment potential. Homes that are bought at a lower price and then renovated can sometimes be sold for a significant profit, depending on the market and the extent of the renovations. This is not without risk, as market conditions can change, and renovation costs can escalate.
• Energy efficiency and maintenance: New homes are often more energy-efficient and come with newer appliances and systems, reducing maintenance costs and utility bills. Fixer-uppers, depending on their age and condition, might require substantial updates to heating, cooling, plumbing, and electrical systems to become energy-efficient.
• Evaluating the market availability: In some real estate markets, the choice between a new home and a fixer-upper may be made for you based on what's available in your desired area and within your budget.
• Resale value: Consider the future resale value of the property. A well-chosen fixer-upper in a desirable neighborhood can appreciate significantly. Conversely, new homes in growing communities can also be a good investment, though they might not offer the same level of uniqueness as a renovated older home.

Making the right decision

• Home inspection: Before making a decision, invest in a thorough home inspection for any property you're seriously considering. For fixer-uppers, this can help you understand the scope of work needed and whether the home is a good investment. For new homes, it ensures that everything is up to code and constructed properly.
• Consult with professionals: Speak with real estate agents, contractors, and financial advisors who can provide insights into the local market, renovation costs, and financing options. Their expertise can help guide your decision.
• Reflect on Your commitment: Finally, reflect on your commitment to the project. A fixer-upper can be a years-long commitment that requires not just financial investment but time and emotional energy. Ensure you're ready for the journey ahead.

Choosing between a new home and a fixer-upper involves a careful assessment of your financial situation, lifestyle, personal preferences, and long-term goals. While new homes offer convenience and modern features, fixer-uppers provide an opportunity for customization and potentially greater investment returns. By thoroughly evaluating each option against your unique circumstances and with the help of professionals, you can make a decision that best suits your needs, aspirations, and capabilities, setting the stage for a happy and fulfilling home life.

© Copyright 2024 Anton Community Newspapers, Inc.

NAR: February Existing-Home Sales Vaulted 9.5%

 Existing home sales saw the largest monthly increase in a year nationally, NAR said. The median price in the South was $354,200, up 4.1% from last year.

WASHINGTON – Existing-home sales climbed in February, according to the National Association of Realtors®. Among the four major U.S. regions, sales jumped in the West, South and Midwest and were unchanged in the Northeast. Year-over-year, sales declined in all regions.

Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – bounced 9.5% from January to a seasonally adjusted annual rate of 4.38 million in February. Year-over-year, sales slid 3.3% (down from 4.53 million in February 2023).

"Additional housing supply is helping to satisfy market demand," said NAR Chief Economist Lawrence Yun. "Housing demand has been on a steady rise due to population and job growth, though the actual timing of purchases will be determined by prevailing mortgage rates and wider inventory choices."

Total housing inventory registered at the end of February was 1.07 million units, up 5.9% from January and 10.3% from one year ago (970,000). Unsold inventory sits at a 2.9-month supply at the current sales pace, down from 3.0 months in January but up from 2.6 months in February 2023.

The median existing-home price for all housing types in February was $384,500, an increase of 5.7% from the prior year ($363,600). All four U.S. regions posted price increases.

Realtors® Confidence Index

According to the monthly Realtors® Confidence Index, properties typically remained on the market for 38 days in February, up from 36 days in January and 34 days in February 2023.

First-time buyers were responsible for 26% of sales in February, down from 28% in January and 27% in February 2023. NAR's 2023 Profile of Home Buyers and Sellers – released in November 20234 – found that the annual share of first-time buyers was 32%.

All-cash sales accounted for 33% of transactions in February, up from 32% in January and 28% one year ago.

Individual investors or second-home buyers, who make up many cash sales, purchased 21% of homes in February, up from 17% in January and 18% in February 2023.

Distressed sales – foreclosures and short sales – represented 3% of sales in February, virtually unchanged from last month and the previous year.

Mortgage rates

According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.74% as of March 14. That's down from 6.88% the prior week but up from 6.60% one year ago.

Single-family and condo/co-op sales

Single-family home sales grew to a seasonally adjusted annual rate of 3.97 million in February, up 10.3% from 3.6 million in January but down 2.7% from the previous year. The median existing single-family home price was $388,700 in February, up 5.6% from February 2023.

At a seasonally adjusted annual rate of 410,000 units in February, existing condominium and co-op sales increased 2.5% from last month but declined 8.9% from one year ago (450,000 units). The median existing condo price was $344,000 in February, up 6.7% from the previous year ($322,400).

Regional breakdown

At 480,000 units, existing-home sales in the Northeast were identical to January but down 7.7% from February 2023. It's the fourth consecutive month that home sales in the Northeast registered 480,000 units. The median price in the Northeast was $420,600, up 11.5% from one year ago.

In the Midwest, existing-home sales propelled 8.4% from one month ago to an annual rate of 1.03 million in February, down 3.7% from the previous year. The median price in the Midwest was $277,600, up 6.8% from February 2023.

Existing-home sales in the South leapt 9.8% from January to an annual rate of 2.02 million in February, down 2.9% from one year earlier. The median price in the South was $354,200, up 4.1% from last year.

In the West, existing-home sales skyrocketed 16.4% from a month ago to an annual rate of 850,000 in February, a decline of 1.2% from the prior year. The median price in the West was $593,000, up 9.1% from February 2023.

"Due to inventory constraints, the Northeast was the regional underperformer in February home sales but the best performer in home prices," Yun added. "More supply is clearly needed to help stabilize home prices and get more Americans moving to their next residences."

© 2024 National Association of Realtors®

All-Cash Buyers Surge to Decade High

 By Melissa Dittmann Tracey

Naples and the Cape Coral-Fort Myers areas are among the top 10 metros in the United States with the highest concentration of cash buyers in 2023, the National Association of Realtors® found.

WASHINGTON – Home buyers who paid cash accounted for 32% of home sales in January, marking the highest rate since 2014, the National Association of Realtors® reports. Many leveraged the equity from a prior home sale.

Vacation-home buyers and real estate investors made up the bulk of all-cash buyers over the last six months, according to NAR. However, in the last two years, more buyers purchasing a primary residence are using cash as well, NAR Deputy Chief Economist Jessica Lautz says on the association’s Economists’ Outlook blog.

“These housing consumers owned a home, sold it and then they could purchase their next property without a mortgage,” Lautz says. “The freedom to make this purchase was likely due to the large amount of housing equity they have earned as home prices have increased in recent years.”

Only 6% of first-time home buyers made a cash purchase in 2023 compared to 26% of repeat buyers, who likely had equity from a prior sale, according to NAR’s data. “As home prices are expected to increase throughout 2024 due to limited housing inventory and high demand to purchase homes, these all-cash buyers are likely to still be prevalent in the market as homeowners earn more housing equity,” Lautz says.

With lean housing inventory in many markets, home buyers still find themselves up against plenty of competition. But cash buyers often have the upper hand. Home sellers may have more confidence in a cash offer. In January, the typical home received 2.7 offers. “If multiple offers continue, these all-cash buyers will likely win bidding wars,” Lautz says. “Those who are financing may not be the winning contract on the home.”

Top 10 areas for cash buyers

Certain regions of the U.S. appear to have a greater concentration of cash home purchases than others, according to ATTOM Data Solution’s 2023 Year-End Home Sales report, which was released at the end of January.

The following 10 metro areas saw cash sales make up at least half or more of all home sales in 2023. Researchers say a higher presence of cash buyers often means more investors, a competitive market for buyers and possibly tighter lending standards, the report notes. The 10 metros with the highest concentration of cash buyers in 2023 were:

Macon, Ga.: 61.5% of homes bought with cash in 2023

Naples, Fla.: 58.9%

Myrtle Beach, S.C.: 56.3%

Youngstown, Ohio: 55.1%

Salisbury, Md.: 54.4%

Lake Havasu City-Kingman, Ariz.: 52.9%

Syracuse, N.Y.: 52.8%

Cape Coral-Fort Myers, Fla.: 52.2%

Gainesville, Ga.: 52.2%

Prescott, Ariz.: 51.5%                                       

© 2024 National Association of Realtors® (NAR)

Some Florida Cities See Jump in Active Listings

 In Florida and nationwide, the housing supply is rebounding as sellers get used to elevated mortgage rates and the lock-in effect eases, Redfin found.

MIAMI – Active listings, or the total supply of homes for sale, in Cape Coral, North Port and Fort Lauderdale saw the biggest jump in the nation in February, the real estate brokerage firm Redfin reported. Nationwide, active listings climbed 0.8% from a month earlier on a seasonally adjusted basis and were little changed (-0.1%) from a year earlier — the smallest annual decline in months.

Nationally, new listings jumped 3.8% month over month on a seasonally adjusted basis in February to the highest level since September 2022. They were up 14.8% year over year, the largest annual gain since May 2021. In Florida, condo listings were the driving force contributing to the jump in supply amid a surge in HOA and insurance fees.

“The housing market is nothing like it was two years ago during the pandemic homebuying frenzy, but it’s better than it was last year. It’s coming back,” said David Palmer, a Redfin agent in Seattle. “Sellers who were on the fence in 2023 are now listing. They’re more used to elevated rates now. There still aren’t enough listings to quench pent-up buyer demand, but it’s getting better.”

Nationwide, housing supply is on the rise because the “lock-in effect” is easing; eventually, homeowners who have been holding on to their ultra-low mortgage rates simply have to move.

“February was a mixed bag for the housing market and the economy,” said Redfin Economics Research Lead Chen Zhao. “Housing supply is finally starting to recover in a meaningful way, which is great news for buyers who for months have been competing for a tiny pool of homes for sale. Still, many house hunters are hesitant to pull the trigger because mortgage rates and home prices remain elevated.”

Mortgage-purchase applications slid in February as mortgage rates ticked back up after dropping in December. The average 30-year-fixed mortgage rate was 6.78% in February up from 6.64% in January.

At the same time, prices continue to rise because, despite the recent uptick in listings, there’s still not enough supply to meet demand, Redfin said. Both new listings and active listings remained far below pre-pandemic levels in February.

“If you price your home reasonably, buyers will show up. If you don’t, buyers will wait for you to drop the price,” Palmer said. “I recently listed an estate sale fixer upper for $550,000 and it got 14 offers, sold for $75,000 over the asking price and the buyer waived every contingency.”

Metro level highlights:

New listings: New listings rose most from a year earlier in Austin, TX (44.6%), Dallas (38.1%) and Charleston, SC (36.8%). They fell in two metros — Albany, NY (-2.9%) and Buffalo, NY (-0.7%) — and were flat in Fresno, CA (0%).

Active listings (total supply): Active listings increased fastest in Cape Coral, FL (60.6%), North Port, FL (52.5%) and Fort Lauderdale, FL (25.5%). They decreased fastest in Raleigh, NC (-24.4%), New Brunswick, NJ (-19%) and Nassau County, NY (-18.5%).

Prices: Median sale prices rose most from a year earlier in Newark, NJ (16.5%), Anaheim, CA (15.8%) and Grand Rapids, MI (15.8%). They fell in three metros: San Antonio (-4.2%), Memphis, TN (-3.5%) and North Port (-2.2%).

Closed home sales: Closed sales rose most in San Jose, CA (24.9%), San Francisco (21.1%) and Dayton, OH (15.1%). They fell most in Frederick, MD (-14.8%), New Orleans (-14.2%) and Tulsa, OK (-14%).

Sold above list price: In San Jose, 65.3% of homes sold above their final list price, the highest share among the metros Redfin analyzed. Next came Rochester, NY (62.8%) and Oakland, CA (62.3%). The shares were lowest in North Port (6.6%), Cape Coral (8.3%) and West Palm Beach, FL (8.7%).

Off market in two weeks: In Seattle, 77.4% of homes that went under contract did so within two weeks — the highest share among the metros Redfin analyzed. Next came Rochester (75%) and San Jose (70.9%). The lowest shares were in Honolulu (8.4%), Greensboro, NC (19%) and McAllen, TX (20.8%).

Days on market: The typical home that went under contract in Seattle did so in 11 days, making the fastest market among those Redfin analyzed. Next came Rochester (12) and San Jose (12). The slowest markets were New Orleans (97), Austin (82) and Honolulu (77).

© 2024 Florida Realtors®

Study: Renters Would Be Happier Owning a Home

 Nearly 70% of renters say owning a home would make them happier, yet 60% say it’s out of reach, a new study found. At the same time, 90% of owners say they’re happier since buying a home.

NEW YORK – When asked to name the single biggest benefit of homeownership, the most common answer for homeowners was privacy (14%), while renters pointed to stability (16%).

On every single aspect of life from overall quality of life to mental health, homeowners are more satisfied than renters, according to new research from Home Bay, an online publication owned by Clever Real Estate that connects readers with expert real estate advice.

However, although 69% of renters believe owning a home would make them happier, 60% say homeownership is out of reach.

The survey found that homeowners, on average, rate their overall happiness at 7.5 out of 10, 20% higher than where renters rate their happiness at just 6.2. Moreover, renters report 22% higher stress levels, with an average score of 6.2 out of 10, compared to homeowners, with an average rating of 5.1 out of 10.

In addition, about 2 in 3 renters (67%) are stressed about their finances, compared to fewer than half of homeowners (44%). Further, renters are 86% more likely than homeowners to not consider themselves financially comfortable.

A resounding 90% of homeowners say they're happier overall since they bought a home, and another 80% say owning a home was the best decision they ever made.

However, 19% of homeowners wish they were still renting. Nearly half of homeowners (47%) say they miss not having to take care of repairs, and 56% wish they spent less time on maintenance.

More than half (52%) of homeowners say owning a home is more expensive than expected, and 43% find it more challenging than expected. Since purchasing their home, 20% of homeowners admit to being in more non-mortgage debt.

Copyright © 2024 BridgeTower Media; and © 2024, The Mecklenburg Times (Charlotte, NC.) All rights reserved.

FAU/FIU Study: Housing Premiums Stabilizing

 FAU/FIU Study: Housing Premiums Stabilizing

By Amber Bonefont

Some Florida markets – including Cape Coral and Tampa – are seeing housing premiums decline, providing greater opportunities for buyers and reducing the risk for losses.

BOCA RATON, Fla. – Housing premiums in many markets in the country are starting to decline, suggesting that many areas across the country are moving toward stabilization, according to researchers at Florida Atlantic University and Florida International University.

In eight out of the 10 most overvalued housing markets, housing price premiums have started to edge back down toward their long-term pricing trends, according to January data from the Top 100 U.S. Housing Markets. A premium is measured by the degree of overpricing in terms of a percentage difference between actual and statistically modeled home prices.

Atlanta, the most overvalued market in the country according to the study, posted a 12-basis point decline in its housing premium over the past month. The second most overvalued market, Cape Coral, had a 62-basis point decline; Tampa, fourth most overvalued, had a 17-basis point decline; Palm Bay, fifth most overvalued, a 31-basis point decline; Knoxville, sixth most overvalued, had a 13-basis point decline; Lakeland, the eight most overvalued had a 23-basis point decline; Orlando, number nine, a six-basis point decline; and Charlotte, the 10th most overvalued saw a 14-basis point decline.     

“This is good news as it signals these markets could be getting to where prices should be, slowly but surely, creating less risk for catastrophic loss in average home value,” said Ken H. Johnson, Ph.D., real estate economist in FAU’s College of Business. “Ideally, we want to find our way back to the long-term trend for each metro area with as little pain as possible.”

The Top 100 U.S. Housing Markets, a monthly index in FAU’s Real Estate Initiative, measures housing premiums and discounts in the 100 most populated metropolitan areas in the country by looking at the difference in actual average home price in a city and comparing it to the long-term home pricing trend for the same city to calculate how overvalued or undervalued housing markets are using publicly available data from Zillow.

Several Florida metros also signaled that prices are stabilizing as eight out of the nine measured metros saw small declines in premiums. Examples include North Port with a 75-basis point drop in its housing premium between end of December 2023 and the end of January; Deltona with a 39-basis point drop; and Jacksonville with a 16-basis point drop.

“Equity gains remain strong for current homeowners and prospective homebuyers can get a little breather knowing that prices are slightly more stable. All in all, these are good signs for the housing market,” said Eli Beracha, Ph.D., director of FIU’s Hollo School of Real Estate.

South Florida remains an area of concern for researchers as it was the only measured metro in the state where housing premiums did not decrease, instead going up by 23 basis points.

© 2024 Florida Atlantic University

The percentage of Hispanic and Black homeowners in Miami-Dade and Broward counties has decreased

 The percentage of Hispanic and Black homeowners in Miami-Dade and Broward counties has decreased as home prices have increased.

MIAMI – Since 2012, there are fewer Black and Hispanic homeowners in Miami-Dade and Broward counties, the latest U.S. Census Bureau data shows.

The Census Bureau said there were 983,509 occupied Miami-Dade County residences in 2022, and owners lived in a total of 507,879 of those residences. Redfin found 44% of all homeowners were Black, down from 47% in 2012, and 51% were Hispanics, down from 55.4%.

In Broward County, 544,611 residences were occupied by owners out of 867,215 occupied residences, with Blacks accounting for 50.5% of those owner-occupied homes, down from 51.7%, and Hispanics accounted for 57.1%, down from 62%.

Linda Neverson, a Miramar resident who purchased her two-story townhouse in Miramar in 2022, said, "My experience in terms of the path towards homeownership is that it has gotten a lot harder. What I believe is happening is the earning power or economic gap between minorities and others is widening. The purchasing power in Miami is being diluted."

The median sales price for a single-family home in Miami-Dade is $610,000 and the median price for a condo is $410,000. Broward falls slightly below at $570,000 for a house and $275,000 for a condo.

However, these prices are far higher than what most South Floridians can afford. Ken H. Johnson, a finance professor specializing in real estate at Florida Atlantic University, added that the trend of fewer homeowners is nationwide.

Source: Miami Herald (02/21/24) San Juan, Rebecca

Copyright © 2024 Smithbucklin

Better, Not Bigger, Homes Among 2024 Design Trends

 NAHB: Buyers say they want smaller homes now and are looking for homes around 2,070 sq. ft., compared to 2,260 sq. ft. 20 years ago.

WASHINGTON – Following a brief uptick in new home sizes in 2021, the average size of a new home continues to inch smaller – dropping from 2,479 square feet in 2022 to 2,411 square feet in 2023, the smallest average size in 13 years – to match home buyer preferences for less square footage.

According to the latest “What Home Buyers Really Want” study from the National Association of Home Builders (NAHB), home buyers are looking for homes around 2,070 square feet, compared to 2,260 square feet 20 years ago.

“It’s related to two factors that are linked,” said Rose Quint, NAHB assistant vice president of survey research. “First, we’ve seen changes in home buyer preferences. Second, housing affordability has worsened in recent years.”

Builders are acting on this trend, with 38% indicating they built smaller homes in 2023 to help support home sales and 26% indicating they plan to build even smaller in 2024.

They are also working to bridge the gap on housing affordability by cutting home prices, providing sales incentives and offering more affordable finishes. Median new homes prices dropped to $427,400 in 2023 – down 7 percentage points from 2022, a drop not seen since 2009 – while existing median home prices continued to rise to $394,600, marking a 1 percentage point increase over the prior year.

Home buyers are not only shifting their preferences on size; they’re shifting their overall design preferences as well, placing higher value on personalization and authenticity.

“Our homeowners are looking to personalize their homes,” said Donald Ruthroff, AIA, founding principal at Design Story Spaces LLC. “They want to it feel like it was made just for them and be significantly different than their neighbors’ homes.”

This is reflected in the style of the home and the upgrades that buyers choose to incorporate into their homes, whether it’s creating an island that looks like a piece of furniture, higher quality cabinets or more expensive flooring.

Home features that remain at the top of buyers’ wish list include four outdoor features, two kitchen features and two related to energy efficiency:

•Laundry room

•Patio

•Energy Star window

•Exterior lighting

•Ceiling fan

•Garage storage

•Front porch

•Hardwood flooring

•Full bath on the main level

•Energy Star appliances

•Walk-in pantry

•Landscaping

•Table space in the kitchen

Technology features are becoming increasingly popular, most notably security cameras, wired home security systems, programmable thermostats, video doorbells, multizone HVAC systems and energy management systems.

Other home features that have seen strong growth in popularity over the past 10 years include:

•Quartz or engineered stone for kitchen countertops

•Lighting control systems

•Outdoor fireplaces

•Outdoor kitchens

•Built-in kitchen seating

•Exposed beams

Additional information on home buyer trends can be found in NAHB’s What Home Buyers Really Want (2024 edition).

© 2024 Florida Realtors®

Home Price Gains Continued in December

 By Jing Fu

CoreLogic Case-Shiller’s Home Price Index rose at a seasonally adjusted annual growth rate of 2.4%, slower than Nov.’s 3% increase. Miami’s price index rose 8%.

WASHINGTON – National home prices continued to increase, hitting a new all-time high in December. Despite high mortgage rates, limited inventory and strong demand continued to push up home prices. Six of 20 metro areas, experienced negative home price appreciation in December.

The S&P CoreLogic Case-Shiller U.S. National Home Price Index (HPI), reported by S&P Dow Jones Indices, rose at a seasonally adjusted annual growth rate of 2.4% in December, slower than a 3.0% increase in November. It marks the fourth straight month of deceleration since September.

Nonetheless, national home prices are now 70% higher than their last peak during the housing boom in March 2006.

On a year-over-year basis (YOY), the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index posted a 5.5% annual gain in December, up from a 5.0% increase in November. It was the highest year-over-year gain over the past twelve months

Home price appreciation slowed greatly over the past year; the average YOY home price gain for 2023 was 2.4%, after the double-digit gains seen in the previous two years. Home prices are stabilizing as more buyers and sellers enter the market.

Meanwhile, the Home Price Index, released by the Federal Housing Finance Agency (FHFA), rose at a seasonally adjusted annual rate of 1.2% in December, following a 4.3% increase in November. On a year-over-year basis, the FHFA Home Price NSA Index rose 6.5% in December, down from 6.6% in the previous month.

In addition to tracking national home price changes, S&P Dow Jones Indices also reported home price indexes across 20 metro areas in December on a seasonally adjusted basis.

While six out of 20 metro areas reported negative home price appreciation, 13 metro areas had positive home price appreciation. Home prices for Cleveland (OH) were unchanged from the previous month. Their annual growth rates ranged from -2.7% to 10.1%.

Among all 20 metro areas, 10 metro areas exceeded the national average of 2.4%. Las Vegas led the way with a 10.1% increase, followed by Los Angeles with an 8.6% increase and Miami with an 8.0% increase.

The six metro areas that experienced price declines are Portland (-2.7%), Minneapolis (-1.6%), San Francisco (-1.4%), San Diego (-1.3%), Detroit (-0.6%) and Dallas (-0.6%).

Source: NAHB Eye on Housing blog, Jing Fu, Ph.D., director of forecasting and analysis

© 2024 Florida Realtors®