Real Estate in Northeast Florida and Around the World

My apologies for the lack of blog posts recently. Between becoming a new grandmother and seeing first to my customers' needs in recent weeks before writing a blog, I have had limited to time to be creative and produce a blog that I believe is interesting to readers.  Blogs that babble are a waste of everyone's time, and I believe that if you spend time reading mine, I want to give you something worthwhile to read.

So - the news?  Home sales are increasing, and have been now for 8 months in a row, as reported by the National Association of Realtors® (NAR).  But if you have been reading my blogs, this should not be a surprise to you. 

NAR reported that sales of existing-home sales rose in March, continuing an uneven recovery that began after sales bottomed last July. Existing-home closed transactions include single-family, townhomes, condominiums and co-ops, increased 3.7 percent to a seasonally adjusted annual rate of 5.10 million in March from an upwardly revised 4.92 million in February, but are 6.3 percent below the 5.44 million pace in March 2010. Sales were at elevated levels from March through June of 2010 in response to the home buyer tax credit.  This is on a national scope, but here in Northeast Florida, we are seeing the same thing.  The Northeast Florida Association of Realtors data will be released in the next week, and it will be of surprise if the upward trend is not following this same path.

Lawrence Yun, NAR chief economist, expects the improving sales pattern to continue. “Existing-home sales have risen in six of the past eight months, so we’re clearly on a recovery path,” he said. “With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain – primarily because some buyers are finding it too difficult to obtain a mortgage. For those fortunate enough to qualify for financing, monthly mortgage payments as a percent of income have been at record lows.”

NAR’s housing affordability index shows the typical monthly mortgage principal and interest payment for the purchase of a median-priced existing home is only 13 percent of gross household income, the lowest since records began in 1970.

If my business is an indicator, I would agree with Yun's prediction.  My business has been steady since October, with only a bit of a rest in August and September of last year.  My colleagues who have persevered through the recession are having similar results.  We have stayed focused, and are meeting and exceeding the needs of our customers.  The work is hard - but there is nothing more satisfying than seeing a family so thrilled to have the home they have desired as a lifelong dream.  Or, to assist a seller with a sale so that they can move on to the next stage of their life in a different home or community - again, to meet their needs.  It will take some time to continue to sell the excess inventory, so expect prices to be depressed for a time in many markets.  But take heed - above average inventory is rare, and will go at a premium.  Average property is plentiful, and below average inventory abundant, and this will go at a below market price, because it will take money to refubish the property to bring it to market condition.

So - the world is seeing what we have known for a while.  The real estate industry is the barometer for the overall economy.  The recession began with a downturn in the housing industry, and it will rebound as the housing industry rebounds.