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ORLANDO, Fla., March 23, 2009 /PRNewswire via COMTEX/ —-Florida’s existing home sales rose in February, making it the sixth consecutive month that sales activity showed increases in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors(R: 26.48, 0, 0%) (FAR: undefined, undefined, undefined%). February’s statewide sales also increased over January’s figures in both the existing home and existing condo markets.
Existing home sales rose 20 percent last month with a total of 9,858 homes sold statewide compared to 8,181 homes sold in February 2008, according to FAR. February’s statewide existing home sales were 16.7 percent higher than January’s statewide sales.
Florida Realtors also reported a 15 percent gain in statewide sales of existing condominiums in February, continuing a trend in recent months for higher statewide sales of both the existing home and existing condo markets compared to year-ago levels. Statewide existing condo sales last month increased 25.1 percent over the total units sold in January.
Thirteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing-home sales in February while 11 MSAs also showed gains in condo sales. It marks the eighth month in a row that a number of markets have reported increased sales.
Florida’s median sales price for existing homes last month was $141,900; a year ago, it was $199,300 for a 29 percent decrease. Industry analysts with the National Association of Realtors(R: 26.48, 0, 0%) (NAR: undefined, undefined, undefined%) report a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is the midpoint; half the homes sold for more, half for less.
The national median sales price for existing single-family homes in January 2009 was $169,900, down 13.8 percent from a year earlier, according to NAR. In California, the statewide median resales price was $254,350 in January; in Massachusetts, it was $321,000; in Maryland, it was $244,820; and in New York, it was $205,000.
Significant variations in local markets continue, according to NAR’s latest housing outlook, which also notes that it will take time for the impact of the economic stimulus to show in housing data. “Some markets appear to have reached the tipping point of accelerating home buying,” said NAR Chief Economist Lawrence Yun. “Improvement from the economic stimulus isn’t likely to show as closed home sales before summer, although we may see an earlier lift from lower mortgage interest rates.”
NAR analysts estimate the impact of the federal economic stimulus package and lower interest rates on the housing market to be about 900,000 additional home sales in 2009 compared to conditions before the stimulus package. By the end of the year, NAR expects inventory to fall below an eight-month supply, which would be consistent with home price stabilization.
In Florida’s year-to-year comparison for condos, 3,198 units sold statewide compared to 2,785 sold in February 2008 for a 15 percent increase. The statewide existing condo median sales price last month was $109,300; in February 2008 it was $173,900 for a 37 percent decrease. In the latest data available at press time, NAR reported the national median existing condo price was $174,400 in January 2009.
Interest rates for a 30-year fixed-rate mortgage averaged 5.13 percent last month, down significantly from the average rate of 5.92 percent in February 2008, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
Among the state’s medium-size markets, the Fort Pierce-Port St. Lucie MSA reported a total of 372 homes sold in February compared to 263 homes a year ago for a 41 percent increase. The existing home median sales price was $122,100; a year ago, it was $172,900 for a 29 percent decrease. In the year-to-year comparison for the existing condo market, a total of 71 units sold in the MSA last month, up 22 percent compared to 58 condos sold the previous February. The market’s existing condo median price was $116,700; a year ago, it was $126,700 for an 8 percent decrease.
Two charts showing statistics for Florida and its 20 MSAs are attached. One chart compares the volume of existing, single-family home sales and median sales prices in February 2009 to February 2008 based on Realtor transactions; the other compares the volume of existing, condominium sales and median sales prices in February 2009 to February 2008 based on Realtor transactions.
The Florida Association of Realtors(R: 26.48, 0, 0%), 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.
NEW YORK (Reuters) – U.S. mortgage applications jumped last week as record low interest rates spurred a surge in demand for home refinancing loans, data from an industry group showed on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, increased 32.2 percent to 1,159.4 for the week ended March 20. Refinancing accounted for 78.5 percent of all applications.
Interest rates on mortgages fell after the Federal Reserve last week said it would buy Treasury securities for the first time in more than four decades as well as more than double its planned purchases of mortgage-related securities, according to Orawin Velz, associate vice president of economic forecasting at the MBA in Washington.
“The drop offered a sizable refinance incentive for most homeowners, sparking a pick-up in refinance activity,” she said in a statement.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 4.63 percent, down 0.26 percentage point from the previous week, reaching a record low, the MBA said. It has been conducting the weekly survey since 1990.
Interest rates were well below year-ago levels of 5.74 percent.
Leif Thomsen, chief executive of Mortgage Master in Walpole, Massachusetts, said his company is doing more business now than every before, with just over $1 billion in total mortgage lending since the beginning of the year, 85 percent of which has been in refinancing.
“The housing market is coming back, but not roaring back,” he said. “We have gone from a crawl to a brisk walk and we will still have to navigate some pitfalls before we are able to get running again.”
The Fed’s purchases are part of its ongoing efforts to reduce mortgage rates to stimulate borrowing and boost the U.S. housing market, currently in the throes of the worst downturn since the Great Depression.
However, so far, the low rates have had only a moderate impact on demand for loans to buy homes.
The MBA’s seasonally adjusted purchase index rose 4.2 percent to 267.8. The index, however, was 33.7 percent below its year-ago level of 403.7.
Overall mortgage applications last week were 20.0 percent above their year-ago level. The four-week moving average of mortgage applications, which smoothes the volatile weekly figures, was up 13.9 percent.
WEEKLY REFINANCING ACTIVITY SURGES
Mortgage Master, to keep up with sales, has hired over 100 people in the past 90 days alone, Thomsen said.
“There are some fantastic deals out there and as more people begin to realize that, competition will come back and drive a significant amount of activity,” he said.
The Mortgage Bankers seasonally adjusted index of refinancing applications surged 41.5 percent to 6,363.2. The index was up 49.5 percent from its year-ago level of 4,255.2.
The refinance share of applications increased to 78.5 percent from 72.9 percent the previous week. The adjustable-rate mortgage share of activity decreased to 1.4 percent in the latest week, down from 2.0 percent the previous week.
Fixed 15-year mortgage rates averaged 4.48 percent, down from 4.52 percent the previous week. Rates on one-year ARMs increased to 6.22 percent from 6.20 percent.
Short sales, Slow sales – Check out short sale properties, but get ready to play the waiting game
CHICAGO (MarketWatch) — Those searching for the best housing bargains on the market might consider buying a short-sale property. But there’s an important qualification for buyers interested in going this route: They need plenty of patience.
In a short sale, a homeowner’s lender agrees to accept less than is owed on the mortgage for the property. It’s a useful alternative for borrowers underwater on their mortgage and on their way to foreclosure. As home prices continue to decline, short sales have become a viable option for those who need to sell.
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“Over the past three to six months, the servicers have really become aware that short sales are the best way to reduce their losses… when a modification is not an option,” said Travis Hamel Olsen, president of National Short Sale Center, a company that facilitates short sales nationwide on behalf of homeowners and real estate agents. The short-sale option also is less damaging to a seller’s credit than a foreclosure, he said.
A short sale can also be attractive to a home buyer since the lender will often accept bids on the property that can be 10% or more below the market value, determined by the prices of comparable, nearby properties, Olsen said.
Although the mortgage balance is probably greater than the price a seller could expect in a traditional sale, the lender may be willing to take less than it’s owed in a short sale if it can avoid the further expenses of foreclosing and taking over the property. The savings, however, often come at the expense of a home buyer’s time.
“Short sales should be called long sales,” said Leslie Tyler, vice president of marketing for ZipRealty. “In some cases, it could take months for a buyer to hear back from a lender.”
For Kristine and John Williams the savings seem to be worth the wait.
Kristine Williams says they’ve found “the perfect house” in Brentwood, Calif., although the process is taking longer than they originally thought. The couple waited four months for an answer from the bank, and then had to revise their bid lower as the market continued to sour.
Their current bid is $550,000, on a home that was appraised at about $1 million three years ago. They’re hopeful the current bid will be successful, but realize it could be months before they find out if the offer is accepted.
“In general, it takes a minimum of two months to get a response from the bank whether they will accept or counter your offer,” said Rob Jenson, CEO of The Jenson Group, a Las Vegas-based real-estate firm. “That process could take longer.”
Are the savings worth it to you? Consider these five caveats before shopping for a short sale:
1. You’ll wait in the dark
Perhaps just as frustrating as the wait time is the fact that you likely won’t be privy to details as the deal is progressing. That could mean going months without an update.
Banks are “ramping up their capability for short sales,” said Dennis Green, general manager of ForeclosurePoint.com. But it hasn’t made the process much easier.
“Where our buyers have been the most frustrated is the lack of status or information,” Tyler said. Saying “we want an answer by this Friday or we’re going walk… doesn’t make a difference,” Jenson said.
There are reasons for the wait: A lender could be considering multiple offers. If the seller had both a first and second mortgage, that could also make the process more complicated. The Williamses ran into both scenarios, slowing their process down — and that’s not unusual. The homeowner also has to prove their financial hardship to the lender.
2. Banks will make you a deal, but within reason
There are deals to be found in short sales — but don’t expect outright steals. A buyer needs to make a fair offer, based on comparable homes that have been sold recently, Jenson said. The offer should be aggressive, but not ridiculous, he said.
“The misconception is that banks should be happy to get it off the books,” he said. “They are, but to a certain point.”
Homes that have already been foreclosed on may be even less expensive than a short sale, Tyler said. But bank-owned properties also might be in worse shape, especially if the foreclosure home has been sitting vacant for some time, she added. It’s important to consider the cost of necessary repairs before buying any distressed property.
3. Sales are ‘as is’
In a short sale, it isn’t likely that you will get allowances from the seller for repairs that are needed, as you might in a traditional sale, Jenson said. Do a home inspection and know what you’re getting into, but remember that your bid is for the property “as is.”
“The seller will not give you a credit for repairs,” he said. “The last thing they will do is make repairs.”
4. Have a back-up plan
Even if you decide to bid on a short-sale property, it might be best to keep looking anyway.
“There is no guarantee with short sales, and if the buyer is smart they will put an offer on a short sale they like and continue to look at properties that interest them,” Olsen said. It isn’t uncommon for people to find a home they like better and kill the short-sale deal, Green said.
That said, when a offer is accepted and earnest money is put down, remember that you risk losing those funds if you decide to walk away and buy another home, he added. It may take months before the deal closes, even after the offer is accepted.
5. It’s not only about price
“One thing to not lose sight of is you’re buying a house to live in. Buy a house you like,” Tyler said. She recommends that prospective buyers remain open to properties of all types — short sales, bank owned and traditional sales — and compare prices and features.
A short sale is only a bargain if it’s a home that you truly want to live in — not something you’re drawn to only because of its low price tag. 
Amy Hoak is a MarketWatch reporter based in Chicago.
