Yearly Archives 2022

What Does the U.S. 2023 Appropriations Bill Do for RE?

By Kerry Smith The $1.7T spending bill that funds the federal government through Sept. covers a number of RE priorities, such as buyer assistance, fair housing and flood insurance. WASHINGTON – The National Association of Realtors® (NAR) waded through the massive $1.7 trillion spending bill passed late in 2022 by Congress and created a PDF list of the initiatives that focus on real estate, many of which received increased funding. The omnibus bill funds the federal government through September 30, 2023, and builds upon the FY 2022 budget to ensure federal continuity of services. NAR’s list of funded priorities important
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Prices No Longer Increasing by Double Digits

For over two years, monthly stats on home-price increases have reported something over 10%, but in Oct., Case-Shiller found 9.2% and FHFA reported 9.8%. WASHINGTON – Annual price growth in the increasingly fragile U.S. housing market slid into the single digits in October for the first time in about two years when mortgage rates that month surged above 7% and further stifled demand, a pair of closely watched surveys showed last Tuesday. The S&P CoreLogic Case Shiller national home price index increased by 9.2% in October, down from 10.7% in September, notching the first single-digit gain since November 2020. Meanwhile
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Mortgage Rates Move Up After 6-Week Decline

By Christopher Rugaber In Nov., the average 30-year, fixed-rate mortgage peaked at 7.08%, but six weeks of steady declines ended last week when it rose slightly to 6.42%. WASHINGTON (AP) – The average long-term U.S. mortgage rate rose this week after falling for six straight weeks, adding to the challenges potential homebuyers face amid higher home prices and a limited supply of available houses. Mortgage buyer Freddie Mac reported Thursday that the average on the benchmark 30-year rate increased to 6.42% from 6.27% the week before. That is more than double the year-ago average rate of 3.11%. The long-term rate
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Confusion: Kick Out Clause vs. Right of First Refusal

By Meredith Caruso When asked about the Kick Out Clause vs. a Right of First Refusal, most Realtors say, “I know they’re not the same thing – but I can’t tell you how they’re different.” Here’s a rule of thumb: The Right of First Refusal usually stems from something external, such as HOA docs. ORLANDO, Fla. – Do you understand the difference between the Right of First Refusal and Kick Out Clause – what they mean and when might you encounter them? Based on Legal Hotline calls, there’s some confusion over the terms, and they’re often used interchangeably. Some calls
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Right of First Refusal: Can Sellers Cancel Contracts?

By Ryan Poliakoff A condo seller secured a sales contract, but the condo association has Right of First Refusal and opted to buy the condo under the contract’s terms. If the seller doesn’t want to sell to the association, can they cancel the contract altogether? WEST PALM BEACH, Fla. – Question: Last June, I had intended to sell my condominium unit to a third party who extended a generous offer in cash. The sale was blocked by the association, who invoked their right of first refusal. As soon as I found out that I was supposed to offer my unit
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Avoid Fair Housing Violations – Even Accidental Ones

By Kerry Smith When a buyer asks a question, such as one about crime rates, a Realtor serving as their best friend in the real estate industry feels compelled to give an honest answer. But that puts you in a tenuous position because you could be violating the Fair Housing Act. ORLANDO, Fla. – When a buyer asks a question, such as one about crime rates, a Realtor serving as their best friend in the real estate industry feels compelled to give an honest answer. However, that puts a Realtor in a tenuous position because an answer could violate the
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Nov. Housing: Higher Inventory, Prices, Lower Sales

By Marla Martin Florida Realtors: Nov. closed single-family sales fell 38.2% in the face of rising interest rates, but for-sale inventory increased 105.2% to create a 2.8-months’ supply. ORLANDO, Fla. – Florida’s housing market reported more inventory (active listings) and higher median prices in November compared to a year ago, though inflation and interest rates above 6% continued to influence buyer demand, according to Florida Realtors®’ latest housing data. Closed sales of single-family homes statewide last month totaled 17,009, down 38.2% year-over-year, while existing condo-townhouse sales totaled 7,084, down 38.9% from November 2021, according to data from Florida Realtors Research
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U.S. Consumer Confidence Bounces Back in Dec.

By Kerry Smith After two months of declines, the Confidence Index rose to 108.3 after last month’s 101.4. A preference for services and lower desire for big-ticket items continued. BOSTON – Americans grew a bit more optimistic in December after two months of declines, according to the latest Conference Board Consumer Confidence Index. The Index now stands at 108.3, up sharply from 101.4 in November. The Present Situation Index – based on consumers’ assessment of current business and labor market conditions – increased to 147.2 from 138.3 last month. The Expectations Index – based on consumers’ short-term outlook for income,
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NAR: Nov. U.S. Home Sales Down 35.4% Year-to-Year

By Kerry Smith Even with fewer sales, the median home price was up 3.5% year-to-year. Month-to-month, home sales were down 7.7% and there’s a 3.3-months’ supply of inventory. WASHINGTON – Existing-home sales declined for the tenth month in a row in November, according to the National Association of Realtors® (NAR). All four major U.S. regions included in NAR’s monthly reports recorded month-over-month and year-over-year declines. Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – waned 7.7% from October to a seasonally adjusted annual rate of 4.09 million in November. Year-over-year, sales dwindled by 35.4%
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Housing Starts Down 0.5% – Single-Family 4.1%

By Kerry Smith The Nov. number of multifamily units under construction was its highest since December 1973,  even as the number of single-family starts dropped six months in row. WASHINGTON – Single-family housing starts continued to fall in November, with the pace of construction down 32% since February, the month when mortgage rates began to rise. The housing market continues to weaken as higher construction costs, elevated interest rates and flagging demand harm housing affordability. The count of multifamily units under construction reached a near 50-year high in November, but even there multifamily permit growth is weakening. Overall housing starts
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