Existing-Home Sales Fell 3.4% in May

by Elsa Soto | Jun 27, 2022 | Buyers, Mortgages, New Construction, News, Real Estate Components, Real Estate News, Renters, Sellers

Existing-Home Sales Fell 3.4% in May

WASHINGTON (June 21, 2022) – Existing-home sales retreated for the fourth consecutive month in May, according to the National Association of Realtors®. Month-over-month sales declined in three out of four major U.S. regions, while year-over-year sales slipped in all four regions.

Total existing-home sales,¹ https://www.nar.realtor/existing-home-sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, fell 3.4% from April to a seasonally adjusted annual rate of 5.41 million in May. Year-over-year, sales receded 8.6% (5.92 million in May 2021).

“Home sales have essentially returned to the levels seen in 2019 – prior to the pandemic – after two years of gangbuster performance,” said NAR Chief Economist Lawrence Yun. “Also, the market movements of single-family and condominium sales are nearly equal, possibly implying that the preference towards suburban living over city life that had been present over the past two years is fading with a return to pre-pandemic conditions.”

Total housing inventory² registered at the end of May was 1,160,000 units, an increase of 12.6% from April and a 4.1% decline from the previous year (1.21 million). Unsold inventory sits at a 2.6-month supply at the current sales pace, up from 2.2 months in April and 2.5 months in May 2021.

“Further sales declines should be expected in the upcoming months given housing affordability challenges from the sharp rise in mortgage rates this year,” Yun added. “Nonetheless, homes priced appropriately are selling quickly and inventory levels still need to rise substantially – almost doubling – to cool home price appreciation and provide more options for home buyers.”

The median existing-home price⁵ for all housing types in May was $407,600, up 14.8% from May 2021 ($355,000), as prices increased in all regions. This marks 123 consecutive months of year-over-year increases, the longest-running streak on record.

Properties typically remained on the market for 16 days in May, down from 17 days in April and 17 days in May 2021. Eighty-eight percent of homes sold in May 2022 were on the market for less than a month.

First-time buyers were responsible for 27% of sales in May, down from 28% in April and down from 31% in May 2021. NAR’s 2021 Profile of Home Buyers and Sellers – released in late 2021⁴ – reported that the annual share of first-time buyers was 34%.

All-cash sales accounted for 25% of transactions in May, down from 26% in April and up from 23% recorded in May 2021.

Individual investors or second-home buyers, who make up many cash sales, purchased 16% of homes in May, down from 17% in April and 17% in May 2021.

Distressed sales⁵ – foreclosures and short sales – represented less than 1% of sales in May, essentially unchanged from April 2022 and May 2021.

According to Freddie Mac, the average commitment rate(link is external) for a 30-year, conventional, fixed-rate mortgage was 5.23% in May, up from 4.98% in April. The average commitment rate across all of 2021 was 2.96%.

Realtor.com®’s Market Trends Report(link is external) in May shows that the largest year-over-year median list price growth occurred in Miami (+45.9%), Nashville (+32.5%), and Orlando (+32.4%). Austin reported the highest growth in the share of homes that had their prices reduced compared to last year (+14.7 percentage points), followed by Las Vegas (+12.3 percentage points) and Phoenix (+11.6 percentage points).

Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

5 hidden costs of home buying

by Elsa Soto | Apr 20, 2022 | Blog, Buyers, Homeowners, New Construction

5 hidden costs of home buying

5 Hidden cost for Homebuyers

1. Home Inspection
After you’ve submitted an offer on a home and the seller has accepted, make sure the place you’re planning to buy isn’t a lemon. Hire a certified home inspector to examine the property from top to bottom before you go to closing. If you uncover hidden structural, mechanical or other issues, you can negotiate the repair terms with the seller before you finalize the deal. Otherwise, you will be solely responsible for any problems and the cost of fixing them.

2. Closing Costs
While having enough money saved up for a down payment is great, it’s not the only cash you’ll need to seal the deal on a home purchase. You also need an additional 2% to 5% of the home purchase price to cover so-called closing costs, which can include everything from a loan origination fee and attorney fees to prepaid homeowners association fees and taxes.

3. Home Maintenance and Repair
Certain costs can creep up on you once you have the keys to your new home in hand. Unlike renting, in which a landlord foots the bill for maintenance, as a homeowner you’re on the hook for any upkeep and repair costs.

Survey of 1,000 U.S. homeowners. About of third (34%) of respondents in Hippo’s survey said the surprise repair cost was less than $1,000. Another 30% said it was $1,000 to $2,499, and 23% said they paid $2,500 to $4,999. Meanwhile, 13% spent more than that.e.

4. Title Insurance
The Florida state government sets the price for title insurance in Florida. The average cost is between $500 to $1500. Most homeowners purchase this insurance when they buy property in Florida because more mortgage companies require it. As a buyer of real estate or a house, you must ensure that you have legal ownership rights and interests. Mortgage lenders will also require title insurance to qualify you for a loan with your property.

5.Moving Costs
If hiring professional movers for a relocation, you can expect to pay at least $1,000. As mentioned above, the average cost of a local household move is $1,250, and the average cost of a long distance move is $4,890. If you need to move within a certain timeframe and must move out of your old apartment or house, you may also need temporary housing and storage for your things. These expenses should be considered in your budget.

Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

The Lakes At Harmony- A Fast Selling 55+ Community

by Elsa Soto | Feb 11, 2022 | Blog, Buyers, New Construction, Renters, Retirement / 55+, Sellers

The Lakes At Harmony- A Fast Selling 55+ Community

The Lakes at Harmony is an amenities-rich community providing a paradise designed exclusively for active adults (55+).

Harmony encompasses 11,000 acres of which 70% will remain lakes, conservation areas and green space. The community was carefully planned so residents can walk, jog or ride a bicycle to the beautiful lakes, play golf at the Harmony Golf Preserve and much more.

The Lakes at Harmony is the newest and highly sought-after addition to Harmony.

The Recreation Center is a brand-new exclusive amenity that includes a resort style zero-entry pool, community and craft rooms, fitness center and a “sunset gazebo” overlooking the 14th green of the Harmony Golf Course.

Popular activities such as: tennis, pickle ball, mahjong, canasta, zumba, tai chi, yoga/piyo, bocce, book club, game night, BBQ and special seasonal events are also hosted at the Recreation Center throughout the year.

And when you want to get out and enjoy the many attractions of Central Florida, everything is nearby: for example, Orlando International Airport: 25 minutes; Disney World Resort: 30 minutes; Atlantic Beaches: 40 minutes; Sea World and Universal Studios: 45 minutes.

Lakes at Harmony is a special place where you can meet new friends and enjoy the good life.

Make time and visit this community. With only a dozen lots remaining, the chances of securing a home-site along the fairway of the Johnny Miller course or backing up to conservation land or overlooking a nature filled lake are dwindling.

The Lakes at Harmony was recently showcased as one of the 50 best master-planned communities in the US for retirees, so don’t delay, call us today to schedule your private tour.

Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

Landsea Homes Is Now The Seventh Largest Homebuilder In Central FL

by Elsa Soto | Jan 29, 2022 | Blog, Buyers, New Construction, Real Estate Components, Real Estate News

Landsea Homes Is Now The Seventh Largest Homebuilder In Central FL

On January 19, 2022 it was officially announced that Landsea Homes Corp. completed the acquisition of Orlando-based Hanover Family Builders for a purchase price of $179.3 million, subject to certain post-closing adjustments and assumption of debt, which was refinanced with the company’s unsecured revolving credit facility.

In 2021 Hanover Family Builders closed 632 homes at an average selling price of $328,323 and ended with more than 4,100 lots under control, 469 homes in backlog worth more than $200 million, and 18 active communities.

“In 2021, Landsea Homes surpassed the milestone of $1 billion in revenues and completed our first year as a public company. We believe our acquisition of Hanover Family Builders is another truly transformative event for the company,” says Landsea Homes CEO John Ho. “With the closing of this transaction, we have increased our lots under control to more than 12,800 and further accelerated our asset-light strategy by increasing our controlled lots to approximately 50% of our total lot inventory.”

Hanover Family Builders was established in 2017 by the brothers Matt, Steve, and Andrew Orosz in partnership with Colby Franks. It all began with nine communities in the Orlando region, Osceola, Lake and Polk counties. The Orosz family previously formed Cambridge Homes in the 1990s and Royal Oak Homes in 2011, which were sold in 2005 and 2014 respectively. Over the decades, the various companies have received the highest recognition for their growth, customer service and commitment to the community.

“Hanover Family Builders has established a great reputation for providing wonderful homes and outstanding customer service across central Florida,” Ho says. “Given their strong track record, local market knowledge, and long-standing relationships, we believe that Hanover will play an integral role as we expand in this region.”

Landsea Homes first penetrated the Florida housing market in 2021 with the acquisition of Vintage Estate Homes, providing homes in the Orlando area, including Palm Bay, Ormond Beach, Palm Coast, Sorrento, Lake Helen, Merritt Island, and DeBary.

“We were very impressed with Landsea Homes’ strategic approach and commitment to building great homes with top-tier customer service—values that closely align with ours,” says Hanover Family Builders co-president Steve Orosz. “Their senior leadership team is experienced and thoughtful, and they have created a culture of integrity that is dedicated to ensuring they provide best-in-class homes in each of their markets.”

Ho says that Hanover Family Builders’ focus on the more affordable segments of the market “aligns strongly with our broader product positioning goals.” The acquisition of Hanover Family Builders is expected to have an immediate impact on Landsea Homes’ earnings, and Ho says this acquisition will drive the company’s return “on beginning equity to exceed 20% in the fiscal year 2022 and beyond.”

“Our mission is to create a best-in-class home building company that focuses on delivering high-quality homes at a great value to our customers, while providing superior customer service,” Ho says. “Hanover Family Builders fits perfectly into that mission, and we are excited to welcome them into the Landsea Homes family.”

In the course of eight years, Landsea Homes has has grown into one of the premier national homebuilders and established a footprint in each of its key markets, including Arizona, Northern and Southern California, Texas, and Florida.

Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

New Single Family Short Term Rentals Near Champions Gate

by Elsa Soto | Jan 29, 2022 | Blog, Buyers, New Construction, Real Estate News

New Single Family Short Term Rentals Near Champions Gate

Good news for all Disney area vacation home buyers! On January 5th 2022 the Polk County Planning Commission unanimously approved 457 residential units on 32 acres near ChampionsGate. The project will be developed by Jupiter based Stellar Communities, whose six out of eight neighborhoods have already been sold out. The new project will be located “east of US Highway 27, west of the Osceola County Line, north of the Ronald Reagan Parkway, south of the Santa Cruz subdivision, north of Haines City.” The development is said to consist of 300 apartment units on the northern side and 157 single-family units to the south: 103 detached units and 54 duplexes. The single-family portion of the development has been designated primarily for short-term rentals, defined as being made available for more than three times a year and for periods fewer than 30 days. Stellar representative confirmed that the units may also be used for long-term rentals. The single-family homes were referred to as “horizontal apartments” — essentially, the units are apartment-sized but have single-family amenities, like yards. The 300 apartment units will be spread among 10, three-story buildings and consist of one, two and three-bedroom units. Two of those buildings abut existing single-family development in the area, therefore a compromise was reached. The developer will need to construct a 15-foot landscape buffer that reaches 75% opacity within two years of being planted. Meeting this condition will allow keeping all building windows, as originally planned. In order to keep all planned balconies above the first floor, the apartment buildings need to be at least 30 feet from nearby single-family residential property lines. The current separation is 15 feet, but the developer could rearrange the location to achieve the desired separation, which the county originally intended to be 50 feet. Don’t delay! Sign up with RE/MAX Heritage to receive timely updates on this highly desirable project and secure your vacation property as soon as the developer starts pre-selling.

Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

Market in a Min November

by Elsa Soto | Nov 28, 2021 | Blog, Buyers, Homeowners, Homes, Villas and Condos, Investment Property in Florida, Mortgages, New Construction, News, Press Releases, Real Estate Components, Real Estate News, Renters

Market in a Min November

WASHINGTON (November 22, 2021) – Existing-home sales increased in October, marking two straight months of growth, according to the National Association of Realtors®. Two of the four major U.S. regions saw month-over-month sales climb, one region reported a drop and the fourth area held steady in October. On a year-over-year basis, each region witnessed sales decrease.

Total existing-home sales,¹ https://www.nar.realtor/existing-home-sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 0.8% from September to a seasonally adjusted annual rate of 6.34 million in October. Sales fell 5.8% from a year ago (6.73 million in October 2020).

“Home sales remain resilient, despite low inventory and increasing affordability challenges,” said Lawrence Yun, NAR’s chief economist. “Inflationary pressures, such as fast-rising rents and increasing consumer prices, may have some prospective buyers seeking the protection of a fixed, consistent mortgage payment.”

Total housing inventory² at the end of October amounted to 1.25 million units, down 0.8% from September and down 12.0% from one year ago (1.42 million). Unsold inventory sits at a 2.4-month supply at the current sales pace, equal to September’s supply, and down from 2.5 months in October 2020.

The median existing-home price³ for all housing types in October was $353,900, up 13.1% from October 2020 ($313,000), as prices climbed in each region. This marks 116 straight months of year-over-year increases, the longest-running streak on record.

“Among some of the workforce, there is an ongoing trend of flexibility to work anywhere, and this has contributed to an increase in sales in some parts of the country,” said Yun. “Record-high stock markets and all-time high home prices have worked to significantly raise total consumer wealth and, when coupled with extended remote work flexibility, elevated housing demand in vacation regions.”

Properties typically remained on the market for 18 days in October, up from 17 days in September and down from 21 days in October 2020. Eighty-two percent of homes sold in October 2021 were on the market for less than a month.

In October, first-time buyers were responsible for 29% of sales, up from 28% in September and down from 32% in October 2020. NAR’s 2021 Profile of Home Buyers and Sellers – released earlier this month⁴ – reported that the annual share of first-time buyers was 34%.

Individual investors or second-home buyers, who make up many cash sales, purchased 17% of homes in October, up from both 13% in September and from 14% in October 2020. All-cash sales accounted for 24% of transactions in October, up from both 23% in September and from 19% in October 2020.

Distressed sales⁵ – foreclosures and short sales – represented less than 1% of sales in October, equal to the percentage seen a month prior and equal to October 2020.

According to Freddie Mac, the average commitment rate(link is external) for a 30-year, conventional, fixed-rate mortgage was 3.07 in October, up from 2.90% in September. The average commitment rate across all of 2020 was 3.11%.

Single-family and Condo/Co-op Sales

Single-family home sales rose to a seasonally adjusted annual rate of 5.66 million in October, up 1.3% from 5.59 million in September and down 5.8% from one year ago. The median existing single-family home price was $360,800 in October, up 13.5% from October 2020.

Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 680,000 units in October, down 2.9% from 700,000 in September and down 5.6% from one year ago. The median existing condo price was $296,700 in October, an annual increase of 8.7%.

“At a time when mortgage rates are still low, buying and securing a home is a wise investment,” said NAR President Leslie Rouda Smith, a Realtor® from Plano, Texas, and a broker associate at Dave Perry-Miller Real Estate in Dallas. “NAR will strive to make homeownership obtainable for all who want to pursue one of the key components of the American Dream.”

Regional Breakdown

Existing-home sales in the Northeast fell 2.6% in October, registering an annual rate of 750,000, a 13.8% decline from October 2020. The median price in the Northeast was $379,100, up 6.4% from one year ago.

Existing-home sales in the Midwest rose 4.2% to an annual rate of 1,500,000 in October, a 6.3% decrease from a year ago. The median price in the Midwest was $259,800, a 7.8% jump from October 2020.

Existing-home sales in the South increased 0.4% in October, posting an annual rate of 2,780,000, a 3.5% drop from one year ago. The median price in the South was $315,500, a 16.1% climb from one year prior.

Existing-home sales in the West neither rose nor fell from the prior month’s level, registering an annual rate of 1,310,000 in October, down 5.1% from one year ago. The median price in the West was $507,200, up 7.7% from October 2020.

The National Association of Realtors® is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.

Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.