Emerging trends in demographics and consumer behavior will become major drivers of new housing opportunities, resulting in a residential market vastly different from the one that existed prior to the recession, according to Housing in America: The Next Decade, a new research paper authored by John K. McIlwain, senior resident fellow, Urban Land Institute/J. Ronald Terwilliger Chair for Housing.
The rising numbers of foreclosures, re-establishing a private-market residential finance system, shifts in housing demand triggered by baby boomers, their children, and by immigrant households will all have profound effects on our real estate picture. “The old ‘normal’ will not return,” McIlwain predicted. “Over time, a new mode of metropolitan development will emerge, presenting opportunities and stiff challenges. Those who fail to understand these new trends will find themselves building what is no longer in demand.”
He predicts a further 10% drop in housing prices nationwide this year, which will contribute the the already high number of foreclosures and short sales. As reported by RisMedia, McIlwain suggests that "The growing number of consumers who are choosing to walk away from those mortgages suggests a fundamental change from the long-held notion of homeownership as the ultimate American Dream. This disillusionment over homeownership as a way to build wealth could persist for decades to come, as those entering the housing market will be more apt to rent longer, and to place more emphasis on buying for shelter rather than investment purposes."
Key indicators of this trend, as predicted by Housing in America, will be slower growth in home appreciation, to about 1-2% annually, and a decline in the U.S. homeownership rate, from 67% now to about 62%.
4 Major Demographic Shifts Predicted by the Report
1. Aging baby boomers, 55-64 - will keep working out of necessity or choice. Those who decide to move will choose mixed-age living environments with opportunities for active lifestyles.
2. Younger baby boomers, 46-54 - entering their prime earning years, will not be able to sell as easily and so won't move as readily. Their ability to purchase 2nd homes will be diminished. They will be drawn to more connected, compactly-designed communities.
3. Generation Y - the tech-savvy generation is larger than the BabyBoomers. They value community, places to gather and share information and ideas. They will have less interest in home ownership than their parents, and will want walkable, close-in locations.
4. Immigrants - already total 40 million, and their impact is huge when the extended families of grandparents, children, grandchildren are included. They tend to cluster, live in multi-generational housing, and also want a strong sense of community.
McIlwain summarizes the report: "Economic and land constraints make it impossible for urban infill development to accommodate all the housing demand represented by all the demographic groups. As a result, suburban development 'must adapt or it will be obsolete,' he concluded. 'The suburban century is over. This is the urban century.'
Read more about the shift in housing trends in the country at RisMedia.
Contact me to discuss these ideas and how you can find a place you value and find comfortable in the Daytona Beach area.
Sherry Armstrong, Realtor
386-679-3191
yourkeytothebeach@gmail.com
www.sherryarmstrong.com
Great Oaks, Holly Hill - Announcing a price reduction on 1024 Grand Hickory Circle, a 1,382 sq. ft., 2 bath, 2 bdrm single story. Now 
MLS® $115,000 - Impeccable condition.
Property information
The Miami-Fort Lauderdale metropolitan area ranked among the top 10 U.S. metro areas with the highest foreclosure rates in 2009, according to a newly released report by RealtyTrac, the Irvine, Calif.-based online marketplace for foreclosures. Florida accounted for eight of the top 20 metro foreclosure rates. Only California, with nine, had more.
Nationwide, there were 2.8 million foreclosure filings in 2009, or one out of every 45 housing units. That was up 21.2 percent from 2008 and 119.6 percent from 2007.
Across Florida, the Cape Coral-Fort Myers market posted the second-highest metro area foreclosure rate in the nation, with 11.87 percent. Orlando-Kissimmee ranked seventh, with 8.17 percent. Port St. Lucie ranked ninth, with 7.58 percent of its housing units in foreclosure.
Among other Florida metro areas in the top 100:
- Miami-Fort Lauderdale-Pompano Beach, No. 10, at 7.16 percent
- Naples, No. 13, at 6.38 percent
- Deltona-Daytona Beach-Ormond Beach, No. 16, at 5.32 percent
- Sarasota-Brandenton-Venice, No 17, at 5.26 percent
- Lakeland, No. 18, at 5.19 percent
- Palm Bay-Melbourne-Titusville, No. 21, at 4.78 percent
- Tampa-St. Petersburg-Clearwater, No. 22, at 4.77 percent
- Jacksonville, No. 26, at 4.53 percent
- Pensacola-Ferry Pass-Brent, No. 44, at 2.85 percent
- Gainesville, No. 68, at 2.08 percent
- Tallahassee, No. 82, at 1.72 percent
"There is evidence that we’re entering a new wave of foreclosures, driven more by unemployment and economic hardship than what we’ve seen over the past few years,” RealtyTrac CEO James J. Saccacio in a news release.
I tend to see the glass half full, not half empty, and know there is tremendous opportunity here for buyers. And for sellers - remember - there are alternatives to Foreclosure. Contact me NOW if you are having trouble payment your mortgage.
Sherry Armstrong, Realtor
386-679-3191
yourkeytothebeach@gmail.com
While the median sales price of existing single family homes in Volusia and Flagler Counties dropped to a near 7-year low in December, that boosted the sales number to a 3-year high. Realtor sales for the two counties topped 800 for the month in the 2-county region, 57% higher than the 513 homes sold in December, 2008.
It was the highest number for the year too. The last time 807 sales closed was July 2006, when 796 sold, and 941 sales in June, 2006. Median sales price for the month was $124,300, down 12% from 2008.
Condo activity also showed good growth, for 160 sales in December a 240% increase over 47 in December, 2008. The median sales price of condo resales rose 2% to $158,000.
For the year 2009, house sales rose 30% and the median price fell 21%. For Condos, sales rose 51% and median sales price decreased 21% also.
Now you can believe this is a buyer's market in Volusia County!
Sherry Armstrong, Realtor
386-679-3191
yourkeytothebeach@gmail.com
While these new rules will only affect buyers who want to get a FHA loan, they may set the tone for other lenders. Tuesday, the Federal Housing Administration announced it will raise the minimum down payment for its least credit-worthy borrowers.
Borrowers with credit-rating scores below 580 will be required to put down at least 10 percent. Those with a credit score above 580 will be able to continue to put down only 3.5 percent. The changes are intended to shore up the agency's finances.
The FHA also will increase its upfront mortgage insurance premium from 1.75 percent to 2.25 percent. The agency is expected to seek congressional approval to raise annual mortgage insurance premiums, paid by borrowers over the life of the loan, above the current 0.55 percent maximum. The amount it will seek has yet to be announced.
Visit the Summary of FHA Changes issued by the National Assn of Realtors, or contact me with any questions.
Sherry Armstrong, Realtor
386-679-3191
yourkeytothebeach@gmail.com
December was not a good month for folks trying to avoid foreclosure in Volusia County.
In Volusia and Flagler Counties, a combined 2,376 properties received default notices, were in foreclosure auctions or repossessed by lenders in December. That's the highest monthly total in 2009 and a 33 percent increase from the 1,787 filings in December 2008, according to Wednesday's U.S. Foreclosure Market Report released by the California firm RealtyTrac.
Florida's and the nation's foreclosure activity in December also increased, but not nearly as much.
"The numbers are just staggering," said Larry Glinzman, spokesman for Community Legal Services of Mid Florida, which helps low-income families with housing counseling and foreclosures. "It's huge unemployment that is driving the numbers now. We are seeing people with both foreclosure packages and struggling to get their unemployment benefits because of the back up, or who are running out of benefits because they have been out of work so long."
In Volusia County, there were 2,024 properties that received a foreclosure filing in December. It's the first time in 2009 that the total surpassed 2,000 and is up more than 46 percent from a year ago. The county ranked eighth in the state with one home in 122 receiving a notice in December. Foreclosure activity increased each month through the year in year-to-year comparisons and rose for the last four consecutive months from the previous month. Volusia filings rose almost 50 percent to 13,125 from 8,794. Filings for the state rose 34 percent and 21 percent for the nation between 2008 and 2009.
The federal government has put in place some measures to help borrowers in trouble. Contact me for details - I'm a Certified Distressed Property Expert.
Sherry Armstrong, Realtor
386-679-3191
yourkeytothebeach@gmail.com
(resource: News-JournalOnline)
Good Rental History
• 1,107 sq. ft., 2 bath, 2 bdrm 2 story split - MLS® $149,900 - Close to No-Drive Beach
Sun Beach Club, New Smyrna Beach - A super location in Sun Beach Club awaits you! Being so close to the no-drive beach in New Smyrna will entice you to the white sandy shores! This could be a great rental property. The unit features cathedral ceilings, ceiling fans, inside laundry, architectural windows framing a nice view of tropical woods, loads of privacy, a deck, and is a short distance to shopping, dining, biking and trails. Freshly painted and new carpet ready for new owner. All appliances are included and a fireplace for the chilly winter evenings. Complex has pool, clubhouse, and lawn.
Property information
Fannie Mae (FNM) will complete a review of hundreds of condo projects throughout Florida, in an effort to allow additional developments to become "Fannie Mae eligible" through new Special Approval designations. A FNM team currently is assessing condo projects for specific criteria, including occupancy, homeownership association dues, financial stability of the project and property condition. Projects found sufficiently stable following the closer examination are granted a Special Approval designation, meaning lenders can originate and deliver mortgage loans secured by units in these projects to Fannie Mae.
Previously, Fannie Mae has granted exceptions on a case-by-case basis, but the new Special Approval will streamline the reviews, so qualified buyers who want to purchase units in these complexes will know the unit will be eligible for financing.
"This new initiative is geared toward providing maximum support for Florida's distressed condo market as we continue to provide liquidity to the housing market more broadly," said Karen Pallotta, Executive Vice President, Single Family Mortgage Business. "The state's condo market has been particularly hard hit by the housing downturn and we're working with the industry and our partners to do all we can to stabilize the market and help spur recovery."
Special Approval designations are effective for periods between 9 and 18 months, and lenders are required to confirm the project's Special Approval designation on the date of the loan application. The Special Approval initiative is for established condominium projects only.
If you are ready to start looking for a condo in the Daytona Beach or Ormond Beach area, call or email and I'll find out for you if Fannie Mae has completed the assessment. You may not need FNM financing, and I can find that out for you too. Take advantage of the great buys available now in our Florida real estate market!
Sherry Armstrong, Realtor
386-679-3191
yourkeytothebeach@gmail.com
(resource: REChannel)
Here's a great site - DSIRE, Database of State Incentives for Renewables & Efficiency - which lists some financial incentives for Florida energy-efficiency. Make a New Year's Resolution to help your home become greener, and save money too, using these government programs:
Sales Tax Exemption - Solar Energy Systems Equipment
Sales Tax Exemption - Renewable Energy Equipment
State Rebate Program - Solar Energy System Incentives
New Smyrna Beach - Residential Energy Efficiency Rebate Program
Visit the DSIRE site for more information and find how you can save money and help your local environment too.
Sherry Armstrong, Realtor
386-679-3191
yourkeytothebeach@gmail.com
Lakes of Pine Run, Ormond Beach -
Enjoy the country atmosphere of Lakes of Pine Run in Ormond Beach, as you lounge around the community pool with clubhouse and tennis courts. This two story single family attached home has kitchen with breakfast nook, and living/dining combo. Both bedrooms and 2 full bathrooms are on the second floor, half bath on main level. Nice screened patio overlooking trees on the back of home, perfect for outdoor cooking. One assigned covered parking. Pets OK, no restrictions. First time/new buyers, ask about the $8,000 tax credit! Enjoy the convenient private location in Ormond Beach, but close to beaches, interstate access, schools, hospitals, shopping, restaurants, and “The Loop,” one of the most scenic drives in all of Florida. Motorcycle enthusiasts will love being close to the new Destination Daytona, where you can enjoy events and entertainment all year. All information believed to be accurate, but subject to buyer verification.
• 1,100 sq. ft., 2.5 bath, 2 bdrm - 
MLS® $134,900 - Screened patio, lake view
Property information
The U.S. Department of Housing and Urban Development (HUD) recently released a new settlement cost booklet to help consumers shop for the best mortgage to meet their needs. This booklet will help borrowers become familiar with the various stages of the home buying process, including deciding whether they are ready to buy a home, and providing factors to consider in determining how much home they can afford. Consumers will also learn about the sales agreement, how to use HUD’s new standard Good Faith Estimate to shop for the best loan, required settlement services, and the HUD-1 Settlement Statement they will receive at closing.
The booklet will help consumers become familiar with how interest rates, points, balloon payments, and prepayment penalties can affect their monthly mortgage payments. In addition, there is important information about your loan after settlement, including how to resolve loan servicing problems with your lender, and steps you can take to avoid foreclosure. After you have purchased your home, this booklet will help you indentify issues to consider before getting a home equity loan or refinancing your mortgage. Finally, contact information is provided to answer any questions you may have after reading this booklet.
For more information, visit www.hud.gov or me, with your questions on buying property in Daytona or Ormond Beach.
Sherry Armstrong, Realtor
386-679-3191
yourkeytothebeach@gmail.com
(Resource: RisMedia)
Florida's existing home sales rose in November, marking 15 months that sales activity has increased in the year-to-year comparison, according to the latest housing data released by Florida Realtors.
Existing home sales rose 61 percent last month with a total of 14,026 homes sold statewide compared to 8,694 homes sold in November 2008, according to Florida Realtors. Statewide sales of existing condos increased 111 percent last month compared to November 2008's sales figure.
"The extended and expanded federal homebuyer tax credit will continue the positive momentum of the housing sector's recovery - people will want to take advantage of this incredible, not-to-be-missed opportunity to buy a home of their own in Florida," says 2009 Florida Realtors President Cynthia Shelton, CCIM, CRE, a broker and director of investment sales with Colliers Arnold in Orlando.
Florida's median sales price for existing homes last month was $139,000; a year ago, it was $158,200 for a 12 percent decrease. Housing industry analysts with the National Association of Realtors® (NAR) note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.
In Florida's year-to-year comparison for condos, 4,889 units sold statewide last month compared to 2,320 units in November 2008 for an increase of 111 percent. The statewide existing condo median sales price last month was $104,400; in November 2008 it was $131,400 for a 21 percent decrease. The national median existing condo price was $172,900 in October 2009, according to NAR.
In the Daytona Beach metropolitan area, Realtors sold 773 homes in November, 2009 vs 420 last year. Median price was $130,500 vs. $146.200 last year. For condos, Realtors sold 137 units, compared to 66 last year, with a median price of $171,300 vs. $174,300 in 2008.
Whether you are an investor or owner-occupant, you just can't let these prices and government incentives pass you by. Contact me today for ideas on how you can take advantage of these opportunities.
Sherry Armstrong, Realtor
386-679-3191
yourkeytothebeach@gmail.com
As reported by RISMedia, "The Treasury Department recently released guidelines and forms for its new Home Affordable Foreclosure Alternatives Program (HAFA). HAFA is part of the Home Affordable Modification Program (HAMP) and provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. The guidelines were put in place to help mortgage companies speed up the process of short sales of homes and other loan modification alternatives to stem a rising tide of foreclosures.
HAFA applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which will issue their own versions of HAFA. With 43 pages of guidelines and forms, HAFA is designed to simplify and streamline the use of short sales and deeds-in-lieu of foreclosure.
Additional information to understand about HAFA:
-HAFA complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.
-Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.
-Allows borrowers to receive pre-approved short sale terms before listing the property (including the minimum acceptable net proceeds).
-Prohibits the servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6%).
-Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).
-Uses standard processes, documents, and timeframes/deadlines.
-Provides financial incentives: $1,500 for borrower relocation assistance; $1,000 for servicers to cover administrative and processing costs; and up to $1,000 for investors for allowing a total of up to $3,000 in short sale proceeds to be distributed to subordinate lien holders (on a one-for-three matching basis).
The program does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements. The program is set to end on December 31, 2012."
Learn more at Realtor.org.
Sherry Armstrong
386-679-3191
yourkeytothebeach@gmail.com
President Obama has proposed a new program Tuesday that would reimburse homeowners for energy-efficient appliances and insulation, part of a broader plan to stimulate the economy. Steve Nadel, director at the American Council for an Energy-Efficient Economy, who's advising on the bill, said a homeowner could receive up to $12,000 in rebates under the administration plan, which still has to become legislation and pass Congress. He is hoping big items like heating systems, washers/dryers, refrigerators, windows, and insulation would be covered.
The proposal is part of the President's larger spending plan, which also includes money for small businesses, renewable energy manufacturing, and infrastructure. We know energy efficiency "creates jobs, saves money for families, and reduces the pollution that threatens our environment," Obama said. "With additional resources, in areas like advanced manufacturing of wind turbines and solar panels, for instance, we can help turn good ideas into good private-sector jobs."
The plan would be in two parts: money for homeowner efficiency projects, and money for companies in the renewable energy and efficiency space. Based on earlier bills, consumers might be eligible for a 50% rebate on both the price of the equipment and the installation, up to $12,000, said Nadel. So far, there is no income restriction on who is eligible. That would mean a household could spend as much as $24,000 on upgrades and get half back. Homes that take full advantage of the program could see their energy bills drop as much as 20%, he said. The program is expected to cost in the $10 billion range.
If you have an opinion about this legislation, contact your senator or representative. A bill on energy efficiency reimbursements already has supporters in the Senate.
Sherry Armstrong, Realtor
HomeGain has announced the results of the 4th quarter Home Prices Survey of Realtors, based on 928 responses from across the country. Assusming you aren't interested in what the Realtors think, here are the homeowner and home buyer statistics.
According to the fourth quarter survey, 41% of homeowners believe that their homes should be listed 10 to 20% higher than what their Realtors’ recommend, up from 38% of homeowners who believed so in the third quarter and 36% who believed so in the second quarter.
Seventy-six percent of home sellers believe that their homes are worth more than their Realtors’ recommended listing price, up from 74% in the third quarter survey and 71% in the second quarter survey.
Conversely, 62% of home buyers think that homes are overpriced, down from 64% in the third quarter and up from 59% of home buyers who thought homes were overpriced in the first quarter.
“The fourth quarter HomeGain Home Prices Survey of Realtors shows that Realtors believe that the first-time home buyer’s tax credit has driven sales and stabilized home prices, for now. Realtors, however, expressed concerns about the cost of the credit to tax payers and whether sales will continue once the credit expires later next year and additional inventory hits the market,” stated Louis Cammarosano, General Manager at HomeGain. “The vast majority of Realtors expect prices to remain the same or increase in the first six months of 2010.”
Sherry Armstrong, Realtor
Ormond Beach and Daytona Beach, FL
(resource: RisMedia press release)