Cheaper to own than rent regardless of mortgage rate

· 

· 

· 

Cheaper to own than rent regardless of mortgage rate

SAN FRANCISCO – Mar 20, 2013 – Trulia’s Winter 2013 Rent vs. Buy Report looked at homes for sale and for rent on Trulia between Dec. 1, 2012, and Feb. 28, 2013, and compared the costs, factoring in transaction costs, taxes and opportunity costs. For homeownership costs, study authors assumed a 30-year fixed-rate mortgage, 20 percent down, itemizing tax deductions at the 25% bracket and a stay of seven years in the home.

Overall, buying a home is 44 percent cheaper than renting nationwide – down just slightly from 46 percent in 2012. In each of the 100 largest metros, buying is more affordable than renting, though it ranges significantly – from 70 percent cheaper to buy than rent in Detroit to only 19 percent cheaper in San Francisco.

In the 10 Florida markets checked by Trulia, savings ranged from 40 percent to 60 percent. The include:

Miami: 43% cheaper to buy
Fort Lauderdale: 53% cheaper to buy
West Palm Beach: 56% cheaper to buy
Cape Coral-Fort Myers: 45% cheaper to buy
North Port-Bradenton-Sarasota: 51% cheaper to buy
Lakeland-Winter Haven: 55% cheaper to buy
Palm Bay-Melbourne-Titusville: 50% cheaper to buy
Orlando: 51% cheaper to buy
Tampa-St. Petersburg: 55% cheaper to buy
Jacksonville: 54% cheaper to buy

Individual own-versus-rent savings will vary depending on details, but Trulia posed an adjustable map on its website.

Visitors can change the map to suit their circumstance by choosing the mortgage rate they expect to pay (3.5%, 4.5% or 5.5%), their IRS tax bracket (none, 15%, 25%, 35%) and the length of time they expect to be in the house. The map then changes its buy-versus-rent estimates based on input.

For example, changing a Miami buy-versus-rent decision to a three-year stay, 15 percent tax bracket and 5.5 percent mortgage interest rate makes it wiser to rent for a 1 percent savings.

“People who didn’t buy a home last year may have missed the bottom of the market, but they haven’t completely missed the boat,” says Jed Kolko, Trulia’s chief economist. “Buying remains cheaper than renting in all 100 large metros. Even buyers who can’t get today’s lowest mortgage rates will still find that buying makes more financial sense than renting in nearly all local markets – so long as they can get a mortgage in the first place.”

© 2013 Florida Realtors®

 

 

Provided by FloridaCapecoralrealestate

.

Cape Coral Florida
Provided by CapeCoralRealEstate

 

Housing recovery firmly underway

· 

· 

· 

Kiplinger: Housing recovery firmly underway

WASHINGTON – March 13, 2013 – Prices are rising and inventories are falling in markets throughout the United States, which has led financial reporting and forecasting firm Kiplinger to declare the housing recovery “firmly” in motion. Moreover, the company says housing will help carry the overall economy at a time when U.S. exports are decreasing, says Karen Mracek, a Kiplinger editor and real estate analyst.

“The biggest reason we think we’re on firm ground is that we’re seeing every indicator on the way up,” Mracek says. “As with the overall economy, it’s kind of hard to call the bottom or the pivot point. But we’re seeing a range of indicators that suggest pretty solid growth going forward.”

In addition to home values and supply, positive indicators include the number of multiple-bid situations, new-home construction and credit availability, she says. Solid improvements in those fundamentals will lead to formation of new households and help more borrowers come out from underwater – and trade up to a new home. They’ll also create new jobs in real estate and construction, Mracek explains.

The recent gains made in housing have some concerned that real estate could be entering another bubble market, but Mracek disagrees with that assessment. “There might be [a bubble] in some concentrated markets,” she says. “But I don’t think it will be a bubble that’s as widespread and disastrous as the one that happened in the last decade.”

Improvements have been – and will continue to be – uneven. The turnaround will probably be slower in metro areas in Florida and the Midwest.

Nationally, Mracek says the current housing recovery is real and sustainable, but she also acknowledges that the rise in home values and decline in inventories won’t maintain their current pace.

“We see prices leveling out a bit more [in the future] from the late jumps in 2012,” she says. “There are still foreclosures for the banks to work through. As prices improve, you’re going to see banks get rid of REOs.”

Source: Brian Summerfield, REALTOR® Magazine

© 2013 Florida Realtors®

 

 

Provided by FloridaCapecoralrealestate

.

Cape Coral Florida
Provided by CapeCoralRealEstate

 

Cape Coral remains one of teh safest cities in Florida

· 

· 

· 

 

 

Provided by FloridaCapecoralrealestate

.

Cape Coral Florida
Provided by CapeCoralRealEstate

 

mortgage debt forgivenes

· 

· 

· 

 

As the fiscal cliff debate raged, the NATIONALAsso-

CIATIONOFREALTORS@was intent on not adding to

the confusion by speculating on what might happen

given one scenario or another. Yet, I can't overstate

how much work was happening behind the scenes

to minimize any potential impact on real estate.

The result was that on Jan. 2, the same day the

House passed the bill to avert the fiscal cliff, we were

providing information to all of our state and local associations-

and to you via REALTOR.org-about

specific provisions of the bill that affected real estate.

While the debate was underway, we felt it was a

good time to reaffirm our support for the mortgage

interest deduction. Although discussions to limit

the MID never progressed to an actual proposal,

we wanted to remind lawmakers that the MID

benefits primarily middle-income families, and 'any

change to it could harm housing and the economy

as a whole. The Dec. 3 Call for Action generated

record levels of response's from REALTORS@Y.ou let

Congress know loud and clear that we'd be vigilant

in opposing any plan that modifies or excludes the

deductibility of mortgage interest.

While the legislation that was signed into law

in January did not affect the MID, its passage represents

a step in a continuing effort by NAR to protect

the ability of American families to own a horne,

The legislation also extended several tax measures

r ".' l' ~ __ .•... L ~__ ~~~ •.•

• Mortgage cancellation relief is extended

for another year. Households that have mort-

, gage debt forgiven by a lender in 2013as a result of

a modification, short sale, or foreclosure will not

have to pay tax on the amount forgiven.

• Mortgage insurance premiums remain

deductible. Tax filers making less than $no,ooo

who pay for mortgage insurance' can deduct the

cost of their premiums on their 2012 and 2013tax

returns.

• IS-year straight-line cost recovery on

leasehold improvements is extended. For

qualified leasehold improvements on commercial

properties, 15-year depreciation is extended

through 2013and made retroactive to cover 2012.

• Energy efficiency tax credit remains in

force. The IO percent tax credit, up to $500,

for home owners who make energy efficiency

improvements to an existing home is extended

through 2013and made retroactive to cover 2012.

Debate will continue in the coming months on longterm

solutions to the issues left unresolved by the fiscal

cliff bill. As Congress addresses those issues and

broader tax reform, you can bet that we'll continue

our vigilance on behalf of REALTORS"

 

 

Provided by FloridaCapecoralrealestate

.

Cape Coral Florida
Provided by CapeCoralRealEstate

 

Housing may loosen up

· 

· 

· 

Housing may loosen up

NEW YORK – Dec. 21, 2012 – Shrinking inventories of homes for sale, which have helped drive prices higher this year, may reverse course next year, economists say.

Rising prices are likely to persuade more people to sell and builders to add more homes, which would expand supplies.

In recent years, with prices nationally down more than 30 percent from their 2006 peaks, the only people selling were people who had to sell, says economist Paul Diggle at Capital Economics. But prices have been rising, up 6.3 percent in October compared with a year earlier, CoreLogic says. More increases are likely next year.

Supplies of homes for sale are “close to a low point now,” Diggle says and will “probably turn around over the next year.”

That will help keep a check on prices. Still, Capital Economics predicts prices will rise 5 percent next year. Economists surveyed by market watcher Zillow foresee a 3.1 percent jump.

The housing market continued to show signs of strengthening in November, with existing home sales climbing to its highest level in three years, the National Association of Realtors reported Thursday.

Total sales of existing homes rose 5.9 percent in November to a seasonally adjusted annual rate of 5.04 million, up 14.5 percent from a year ago, NAR said.

Yet, the most important number in the monthly report dealt with the supply of homes for sale, says economist Patrick Newport of IHS Global Insight. Supplies have fallen to the lowest in more than seven years, based on the current pace of sales. NAR reported the supply fell to 4.8 months in November, down 38 percent from January 2011. Realtors consider a six-month supply to be a balanced market between buyers and sellers.

More people will likely step up to sell next year, assuming prices continue to rise, Newport says. “A lot of people have just been waiting.”

Phoenix, which leads the nation with a 25 percent rise in October prices year-over-year, saw its supply of active listings hit a low in June, then expand until December. That’s a normal seasonal pattern for Phoenix, but more ordinary sellers are also likely tapping into rising prices, says Mike Orr, real estate expert at Arizona State University.

A recent survey also points to more sellers. Fannie Mae’s November National Housing Survey showed the share of consumers who say now is a good time to sell a home jumped 5 percentage points in November to 23 percent. That’s the highest level since the survey began in June 2010.

Real estate website Trulia, with Harris Interactive, also recently surveyed homeowners and found that 22 percent of current homeowners said they’re at least somewhat likely to sell their homes next year.

Those most likely to sell are people who bought after 2009 and have seen prices rise, the survey showed. They will likely include “flippers” who buy distressed homes, fix them, then resell, says Trulia economist Jed Kolko.

Supplies of homes for sale have been tightening, given stronger sales and a reluctance among people to sell while prices were weak. Also, fewer distressed properties have been coming to market as the foreclosure crisis slowly abates.

© Copyright 2012 USA TODAY, a division of Gannett Co. Inc., Julie Schmit

Provided by FloridaCapecoralrealestate

.

Cape Coral Florida
Provided by CapeCoralRealEstate

 

The long-awaited opening of the Veterans Affairs clinic in Cape Coral

· 

· 

· 

The long-awaited opening of the Veterans Affairs clinic in Cape Coral today means easier access to health care for many area veterans, but also — city officials hope — a dose of good medicine for the city’s economy. Dana Brunett, the city’s director of economic development, said more than 500,000 people could visit the clinic each year. “You got people traveling pretty fair distances,” he said. “They’re gonna have to get something to eat, buy gas, stuff like that. We want to make sure that happens in our community.” The city has pushed hard for development on more than 400 acres of untapped land within a mile of the site, what it calls the Veterans Investment Zone. On its wish list is everything from medical offices and pharmacies to movie theaters and bars. Nothing much is stirring yet, Brunett said, but that should change. “People like to see it happen,” he said. “They don’t want to be pioneers, but I think once you see the bodies showing up at that place and the amount of traffic they’re going to have, I think it’s really going to pick up.” Cape Coral real estate agent Hal Leopard said it’s pretty clear what’ll happen first. “Primarily, you’re gonna see hotels first, then there’ll be food vendors, restaurants, and then you’re gonna have the last (wave): retail,” Leopard said. And since many of the veterans will be disabled, that means they’ll be traveling with families, he said. “It’s gonna be a serious impact in that area,” he said. “Because once you close the Fort Myers location of the existing clinic, the only other two places vets can go is Tampa or Miami.” With more than 200,000 veterans in Southwest Florida and others coming from six counties, Cape Coral Councilman Kevin McGrail said the next step is securing a straight shot from Interstate 75, a federal project that will likely cost tens of millions.

Cape Coral Florida
Provided by CapeCoralRealEstate

 

Homebuyers reveal preferences

· 

· 

· 

Old vs. new? Homebuyers reveal preferences

NEW YORK – Dec. 6, 2012 – What do home shopper prefer about new homes versus older homes? A study commissioned by BHI Inc. examined consumer preferences in new homes versus existing homes among 984 prospective buyers who plan to purchase a home within the next 12 months.

The survey found that consumers generally prefer existing homes over new homes, but many will still consider a new home offered by a builder. Seventy-five percent of the buyers say they’re considering an existing home compared to 20 percent who want a new home. Five percent say they have no preference whether the home is old or new, according to the survey.

For home shoppers who prefer existing homes, their preferences tend to be driven by the mature landscaping, larger lot sizes and sense of community that they say existing homes tend to offer. Some said established neighborhoods tend to have a “warmer inviting feel,” “better construction,” and “better privacy – homes are not on top of each other and cookie cutter.”

Homebuyers who prefer new homes tend to cite energy efficiency, the ability to customize the home to their needs, and lower maintenance costs as top drivers. Also, they say that new homes tend to offer more living space, but that may come at the expense of smaller yard and lot sizes.

Source: “Don’t Let Buyers Shop New Homes Without You,” Inman News (Nov. 14, 2012)

© Copyright 2012 INFORMATION, INC. Bethesda, MD (301) 215-4688

Provided by FloridaCapeCoralRealEstate

 

 

Cape Coral Florida

Provided by CapeCoralRealEstate