By Kerry Smith Given a mild drop in some metro’s home prices, more investors are taking a wait-and-see attitude. And flippers who use short-term loans are dealing with higher costs. SEATTLE – Investor purchases of U.S. homes fell a record 45.8% year-over-year in fourth quarter 2022. The higher cost to borrow money and a wariness over declining home values made real estate investing less attractive, according to a report from Redfin. The second-biggest decline in investor purchases occurred in 2008, when they slumped 45.1% during the subprime mortgage crisis. But it’s not just investors. Overall U.S. home purchases fell 40.8%
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By Kerry Smith 31% of U.S. Dec. sales were for cash, though Fla. percentages ran as high as 52% in West Palm Beach. VA and FHA loans also rose in most Fla. metro areas studied. SEATTLE – Roughly one-third (31.2%) of U.S. home purchases were  cash sales in December, according to a report from Redfin. That’s up from 28.8% one year earlier but down from an eight-year high of 31.9% hit in November. Florida, however, largely saw a higher percentage of cash sales in the six metro areas studied. The share of U.S. cash sales remains elevated above pre-pandemic levels
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By Kerry Smith Flood insurance is complicated, so FEMA created a brochure for Realtors to help them answer client questions, such as, “What is an elevation certificate?” WASHINGTON – The Federal Emergency Management Agency (FEMA) has taken steps to educate Realtors® and the public about the National Flood Insurance Program (NFIP) and the updated way it charges for policies, called NFIP Risk Rating 2.0 Under FEMA’s old NFIP program, a home’s risk-zone location dictated rates. Under the new program, rates can vary home-to-home based on additional factors, such as construction. To help Realtors explain Risk Rating 2.0, FEMA created a
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By Barbara Marquand There’s been an uptick in mortgage company bankruptcies as rates rise and biz declines. For buyers, that means a possible hiccup as they head toward closing. NEW YORK – It’s been a bumpy ride for mortgage companies lately. Some lenders have gone out of business, merged with other companies or narrowed their focus. And more changes are likely in 2023. What does all this mean for borrowers? Here are answers to common questions, whether you’re shopping for a mortgage or paying off a home loan. What’s behind the shakeout? A key factor: higher mortgage rates. Demand for
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By Ryan Poliakoff The HOA rules for a 55-plus community say homes may go to younger adults in accordance with federal rules. How is it 55-plus if they do that? WEST PALM BEACH, Fla. – Question: Just over a year ago I moved into a 55-and-over community. I recently discovered in their HOA rules that the developer reserves the right to sell a limited number of homes to those under 55, but in accordance with Housing for Older Persons rules. We already allow a second person living in the house to be under 55. This was mainly for the benefit
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By Christopher Rugaber An official recession isn’t usually defined until after it’s over, but even if a generally expected one occurs later this year, it will likely be mild. WASHINGTON (AP) – The second consecutive quarter of economic growth that the government reported in late January underscored that the nation isn’t in a recession despite high inflation and the Federal Reserve’s fastest pace of interest rate hikes in four decades. Yet the U.S. economy is hardly in the clear. The solid growth in the October-December quarter will do little to alter the widespread view of economists that a recession is
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By Ryan Poliakoff Condo associations have broad rights to enter private units, especially for safety reasons, but that power isn’t unlimited – and one condo board went too far. BOCA RATON, Fla. – Question: We know that condo associations are granted broad rights to enter an owner’s unit, but does this include allowing or authorizing a neighbor to access a unit with the aid of a locksmith, without notifying the owner? We were out of town and there was a noise coming from the roof, which a neighbor assumed was coming from our air conditioning unit. I (the unit owner)
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By Kerry Smith In Fla., though, rents outpaced the national average. Jacksonville saw the highest year-to-year change with a 7.5% increase, and a low of 3.5% in Miami and Tampa. SEATTLE – The median U.S. asking rent rose 2.4% year-over-year to $1,942 in January – the smallest increase since May 2021, and the lowest level in nearly a year, according to a report from Redfin. It’s roughly one-sixth the pace of January 2022, when rents were up 15.6% from one year earlier. January marked the eighth straight month in which annual rent growth slowed. Rents fell 1.9% from a month
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By Kerry Smith U.S. home prices rose 4% compared to the last quarter of 2022, hitting $378K. But only 18% of metro markets saw double-digit growth in 4Q. In 3Q, it was 46%. WASHINGTON – About nine out of 10 U.S. metro markets registered home price gains in the fourth quarter of 2022 despite mortgage rates eclipsing 7%, according to the National Association of Realtors®’ (NAR) four quarter (4Q) report for 2022. Of the 186 metros tracked, 18% saw double-digit price increases over the same time period, down from 46% in the third quarter of 2022. Year-to-year, the national median
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