Properly Ponte Vedra Real Estate News From Jacquelyn Bates 240 Ponte Vedra Park Dr., #201, Ponte Vedra Beach, FL 32082
Coldwell Banker Vanguard Realty
Fall 2015
Green is Good
Now that we have been consumed by kale and worn ourselves out treading 10,000 steps a day, it’s time to look at what’s new for the healthy house. Realtor Magazine tells us that designers and architects are working to make buildings that are weather-resistant, sustainable, safer and primed for the latest technology. Well Buildings –The new focus of well buildings is on design that enhances the quality of life. Inviting the outdoors in with windows that showcase outdoor greenery and doors that strive for seamlessness...An emphasis on natural light...Pocket and rooftop gardens...And landscapes with trees featuring interesting branch structures. Less Maintenance - Will we all have artificial turf lawns? Not so bad an idea! Consumers are eager for materials and systems that require less maintenance than in the past. Weather and Energy - Today’s buyers are looking for better waterproofing, strategically placed insulation, designs to withstand severe weather and designs and materials that last. Healthfulness - Multifamily buildings may include yoga studios, restaurants with rooftop gardens for growing produce, medical offices, an assisted living facility, wider sidewalks, glass-enclosed stairways to encourage walking. Smarter Technology - To accommodate the power needs of the 24/7 connected. You know who you are!
Florida’s Housing Market Shows Strong Momentum in August Florida’s housing market continued its positive track in August with more closed sales, higher median prices and tightening inventory, according to the latest housing data released by Florida Realtors®. Closed sales of existing single-family homes statewide totaled 23,605 last month, up 8.6 percent over August 2014. “It’s been a summer of positive growth, showing strong gains in closed sales and median prices,” said 2015 Florida Realtors President Andrew Barbar. “Statewide, median sales prices increased year-over-year for both single-family homes and townhousecondo properties for the 45th month in a row in August. Closed sales rose for single-family homes and for townhouse-condo units, and it’s taking less time to complete or close those transactions: a median of 45 days for single-family and 54 days for townhouse-condos.” The most significant of these statewide trends mirrored in our Ponte Vedra Beach market is the tightening inventory. Where have all the houses gone?
Fall’s Falling In...
No Housing Bubble in Sight Statistically speaking, housing is on a roll. Year-to-date home sales are up 6.2 percent and prices in August were 4.7 percent higher than a year earlier. The trends are expected to stay positive and are likely to boost business dollar volume by as much as 15 percent in 2015. These statistics don’t even include new-home construction, which is growing at a strong clip as well. But this rosy picture does raise concerns about affordability. After all, wages are rising by only 2 percent annually and renters are getting squeezed, having to endure 4 percent rate hikes while home prices accelerate more quickly. In addition, mortgage rates are close to the 4 percent which was their highest level this year, and should continue to rise well into next year. Some armchair analysts have suggested that we’re entering a new housing market bubble. But hard facts suggest otherwise. Underlying conditions today are fundamentally different from the bubble of a decade ago. Back then, credit was easy to obtain and home sales were running at more than 8.5 million a year (existing and new homes combined). New-home construction volume topped 2 million annually. By comparison, credit today is extremely tight, which has led to an unusually high level of all-cash sales. Home sales are barely over 5 million and new-home construction is barely scratching 1 million units. Meanwhile, for the past eight years, total mortgage balances have fallen. The reasons show what’s changed from 10 years ago: Home owners are paying their mortgages on time and few are seeking cash-out refinances. It’s fair to ask, though, whether at some point affordability problems will choke off home buying. That’s possible. But here’s my thinking about what could neutralize those fears. After running various scenarios, I expect home prices to rise continuously as long as mortgage rates remain under 6 percent. Early in the summer, the average rate was 4 percent. It may rise to 5.5 percent by the end of next year. Should mortgage rates cross the 6 percent mark, maybe two years down the road, then either home prices will be flat or other forces will be evident. Going forward, keep in mind that robust job creation and meaningful increases in income levels will help propel home prices. For now though, no bubble or impending crash is in sight. Lawrence Yun, National Association of Realtors Chief Economist
On A Personal Note Summer was filled with sun, sand and fun sparked by a month-long July visit from the Paris-based grandchildren and their mom, Anne-Laure. Son Edward popped in for a long weekend while in the states for business but otherwise held down the French fort. Daughter Jackie is following her bliss and going back to school at Marymount University in Arlington, Virginia, to pursue a new career in counseling. The Great Lakes called at the end of August for a lovely cruise including Mackinaw Island, locks, locks, locks, Indian pow wows, The Henry Ford Museum in Dearborn, Niagara Falls and the beautiful Thousand Islands. Now we are settling in for what we hope will be a busy Fall real estate market. Please call me if I can help you with any business.