Archives for January 2017

December 2016: Prices Up, Supply Down Along Emerald Coast

Sales were up in some places and down in others in December 2016 when compared to the year before. Median prices rose across the board while housing supplies fell. Pending sales were in up in December which may help January sales.

               Single Family Home Sales

Emerald Coast

• Closed sales increased 4.2%
• Pending sales increased 2.3%
• Median prices increased 9.3%
• Inventory decreased 7.1%
• Months supply decreased 14% to 4.9 months of inventory

Okaloosa County

• Closed sales increased 4.6%
• Pending sales decreased 3.8%
• Median prices increased 2.3%
• Inventory decreased 16.6%
• Months supply decreased 21.7% to 3.6 months of inventory

Walton County

• Closed sales decreased 3.3%
• Pending sales increased 19.5%
• Median prices increased 7.8%
• Inventory increased 5.7%
• Months supply saw no change with 6.9 months of inventory

               Townhouse and Condo Sales

Emerald Coast

• Closed sales decreased 1.2%
• Pending sales increased 33.5.4%
• Median prices increased 8.5%
• Inventory decreased 10.4%
• Months supply decreased 4.7% to 8.2 months of inventory

Okaloosa County

• Closed sales increased 20.9%
• Pending sales decreased 16.9%
• Median prices increased 65.1%
• Inventory decreased 26%
• Months supply decreased 27.8% to 7.0 months of inventory

Walton County

• Closed sales decreased 4.6%
• Pending sales increased 6.5%
• Median prices increased 1.1%
• Inventory increased 2.1%
• Months supply increased 16% to 8.7 months of inventory

A few things to remember…

An increase in median prices are tied to multiple issues: an improved economy, more lending, and the amount of inventory available. As inventory shrinks, competition for good homes increases among buyers. This can turn into multiple bids and more solid bids as buyers hope to have their offer accepted.

Single family homes along the Emerald Coast are firmly in a seller’s market right now – as long as a home is priced right and staged well. Okaloosa County is seeing especially low inventory levels currently. Buyers have very little to choose from, even as new listings come on the market. A seller who prices competitively and stands out from listings that have been on the market for months should do well. Townhouses and condos have a higher inventory but it continues to shrink to healthier levels.

Pending sales are an indication of the immediate future of the real estate market – typically the next month’s sales. These numbers are not a guarantee of future sales as not all pending sales make it to the closing table, and those that do may take more than 30 days to complete. Pending sales in December varied but the ones to watch are townhouse and condo sales across the Emerald Coast as well as single family home in Walton County.

It’s best to look at the data as part of an on-going trend. One month does not dictate the entire market. If you view the data collected since 2012 for the Emerald Coast, Okaloosa County, and Walton County as a whole, you can get a good feel for what’s happening in the local housing market. Overall, the market has improved greatly.

All sales data is from the Emerald Coast Association of Realtors® (ECAR) Multiple Listing Service (MLS) and is compiled by Florida Realtors®, the state association for Florida. The Emerald Coast statistics cover both Okaloosa and Walton counties as well as surrounding areas based on the listings entered into the MLS by ECAR MLS participants.

Insurance Coverage Most People Need But Don’t Get

You’ve got standard auto insurance, home insurance, and health insurance. What more do you need? Depending on where you live and your specific situation, standard insurance may not be enough.

Imagine the worst case scenario. Your home is completely destroyed by a flood. The car you bought three months ago is totaled. You get hurt while on Crab Island and can’t work for a while. Do you have insurance to cover complete losses and zero income? Most people don’t. Take a look at a few types of insurance policies you may need to purchase.

Flood Insurance

Of course, living on the Emerald Coast, especially when you live near a river or the Gulf, you know about flood insurance, and for many owners, their mortgage lender requires it. But even if your lender doesn’t make you purchase a policy, you need flood insurance. Think about the devastation we see on the news across the country, most recently in Louisiana. Flood waters, when unleashed with that kind of fury, can reach you even if flood zone maps say you’re safe.

Disability Insurance

Some of us work for ourselves or for small companies that don’t offer short-term disability coverage when we have to be out of work for surgery or an injury. If you’re seriously hurt and considered disabled, social security disability isn’t even an option until you’ve been unable to work for more than a year. Short-term coverage helps you while you recover.

Gap Insurance

In a perfect world, we’ll all put down a big deposit on our new vehicle purchase and only finance for 36 or 48 months. But that’s not always an option. Sometimes we need the 60-plus month financing or can only put down $500 or so. The problem is that when we drive off the lot, the value of our vehicle almost immediately decreases but the loan is there for a long time. If your vehicle is totaled in an accident, your insurance is only going to pay you the amount of its value – not what you owe. Gap insurance is what pays the difference between the two. The good news is that you can drop this coverage once your loan amount and the value of your vehicle get more in line.

Umbrella Insurance

Umbrella insurance is additional insurance for almost any situation. Every insurance policy you buy has a policy limit. But in really tough moments – like when your dog bites your neighbor or you cause an accident that injures multiple people – your insurance might not be enough. An umbrella policy will cover what your standard insurance can’t once you reach your policy limits. Have a $1 million liability limit on your homeowner’s policy and a $1.5 million claim? Your insurance pays the $1 million, and the umbrella policy pays the remaining $500,000 or up to whatever your umbrella policy limit may be.

Landlord Coverage

If you’re considering renting out your home a few times a year or long-term, you need specific insurance to cover you as a landlord. Your homeowner’s insurance won’t cover long-term renters at all and, depending on your policy, will only cover one short-term renter in a year. This coverage provides liability if a renter or their guest is hurt, property damage for your home, and even personal property damage if you leave your possessions on-site for maintenance or tenant use.

If any of these situations sound like you, contact your insurance company or insurance agent today to find out more about these types of coverage. The last thing you want is to be handed a huge bill at one of the worst times in your life – and be unable to pay it.

3 Ways the Real Estate Market is Stronger than Ever

At any given moment, what you might hear about the real estate market nationally, state-wide, or locally is a snapshot in time and change is always possible, in either direction. Recent real estate news points to even further strengthening of real estate and pre-recession normality.

FHA Mortgage Insurance Premiums Reduced

In early January, the Federal Housing Administration (FHA) announced mortgage insurance premiums for FHA loans were being cut from 0.85 percent to 0.60 percent, a huge drop for homeowners with FHA-backed loans. Because these loans require such small down payments, as low as three percent, mortgage insurance is required as well.

After the beginning of the recession, the FHA increased premiums from 0.55 percent to 0.90 percent, and then increased them again in April 2013 over worries about credit risks and the desire to strengthen the FHA’s Mutual Mortgage Insurance Fund (MMIF). As a result, according to the National Association of Realtors (NAR), as many as 1.65 million renters were unable to become owners due to the increased costs of ownership.

The change in mortgage insurance premiums should allow many more creditworthy buyers to qualify for a FHA loan and become homeowners.

Foreclosures and Repossessions Drop

According to the National Foreclosure Report November 2016 from CoreLogic, Inc., foreclosures and repossessions are closing in on pre-recession numbers.

• Loans that are 90 days past due as of November 30, 2016 are the lowest since August 2007 at 2.5 percent.
• Serious mortgage delinquencies were at 2.5 percent in October, down 3.3 percent from the year before.
• The foreclosure rate is at 0.8 percent, the lowest since June 2007.

The ATTOM Data Solutions’ Year-End 2016 U.S. Foreclosure Market Report found that in 2016, 933,045 foreclosure filings occurred across the country. This was down 14 percent from 2015 and the lowest amount reported since 2006. This number represents default notices, bank repossessions, and auctions.

Mortgage Interest Rates

Mortgage interest rates are another factor to watch. While rising rates are more costly for buyers, they are another indication that the economy overall is improving. The average rate for 2016 was 3.65 percent. As of January 2017, interest rates have gone as high as 4.2 percent. Rates fell the second week of January to 4.12 percent but could continue to creep up over the coming months.

Of course, this just gives an overview of the housing industry on a national scale. If you want to know what’s happening on the Emerald Coast, contact us today.

Events Across the Emerald Coast: January 2017

Once the holidays are over and everyone is back at work and school, it’s easy to think there’s nothing to do until the weather warms up. But this is the Emerald Coast, and there’s always something going on. If you need something to do this month, take a look and make plans for fun and entertainment.

Winter Guest Fest
Friday, January 20; 8:00 a.m. to Noon

Emerald Coast Convention Center, Okaloosa Island

Head on out to the Emerald Coast Convention Center for the year’s largest expo for snowbirds and other winter visitors and tourists. You can win door prizes, pick up valuable coupons and other gifts and freebies from vendors. Admission is $2 per person. Learn more.

An Evening with Jason Alexander

Saturday, January 21

Mattie Kelly Arts Center, Niceville

Celebrate the 20th Anniversary of the Mattie Kelly Arts Center and the 30th Anniversary of the Northwest Florida Symphony Orchestra with Jason Alexander. Before he played George Costanza on Seinfeld, he was a Tony Award-winning Broadway performer. Attend, and you’ll hear a funny re-telling of that journey and more. Tickets are $65 per person. Learn more.

7th Bayou, Bay, and Beach Run/Walk

Saturday, January 28; 7:30 a.m. to 10:30 a.m.

Clement Taylor Park, Destin

Sponsored by Shoreline Church, the 5K/10K/15K races will, in part, benefit the Choctawhatchee Basin Alliance. Beat a PR, spend some time with friends, and help the local community. Registration costs depend on the race you choose and begin at $30. Learn more.

11th Annual Gumbo Contest and Silent Auction

Saturday, January 28; 11:00 a.m. to 2:00 p.m.

Destin Community Center

Love Gumbo and want to help the Destin History and Fishing Museum? Come on out to the 11th Annual Gumbo Contest. You’ll get into the museum for free all day long. Pay $12 in advance or $15 on the day of, and you’ll get to sample all the gumbo you can handle. Learn more.

The Most Expensive DIY Mistakes

What to Do if You Want to Move to a New Home in 2017

The start of a new year is a time when many of us think about what we want to do differently with our lives. It’s also when we set goals we want to accomplish before the end of the year. Some people decide to go to the gym. Others take up running. Many more retire or switch careers.

Maybe none of that appeals to you. Maybe you’ve got something else on your mind like moving to a new home, upsizing for your growing family or downsizing as the nest empties out. If this is you, here’s what you need to do to get yourself ready.

Getting Ready to Sell

Before you sign a listing agreement or take a few dozen photos of your home, here are a few things you’ll need to do to get your home ready to sell in the next few weeks or even months.

Clear out your clutter. Go through closets, look under the beds, and crawl into the attic, but get rid of the stuff you don’t want and haven’t thought about in years. Not only will you have less to pack when you move, you’ll give yourself more storage space to put away things that don’t need to be seen during a showing.

Start making repairs. We all have that one creaky step or that weird spot on the wall that we say we’ll fix “someday.” Congratulations – someday has arrived! The more small repairs you can make now, the less you’ll have to do when you’re ready to put your home on the market. Instead of having a giant to-do list that feels overwhelming, you can go at your own pace and tackle one or two projects a week.

Spruce things up. New paint, new carpet, or a deep clean will do wonders for your home, even if you don’t put it on the market for months. Mulch, trim trees, pressure wash the driveway and walkways, and do things to make your home look even more appealing to potential buyers. Like the repairs, doing it now allows you to work at your own pace instead of the frenzied rush many sellers get into the week or so before they know pictures need to be taken for the listing. 

Getting Ready to Buy

Like many others, your search for a new home will happen while your current home is up for sale. The more you can do to get yourself ready to buy, the less stressed you’ll feel once you start your search. Take care of these things now before you call a Realtor.

• Check your credit and deal with anything negative. This may mean paying old debt or disputing errors.
• Check your credit score to get an idea of whether you have a low or high score. Your score impacts the type of mortgage you qualify for and your interest rate.
• Pay down as much debt as possible. If you pay a credit card off, don’t close the account. Having a zero balance on an active account is better than having one less account.
• Don’t take on any new debt if you can help it. Save the new car loan or the store credit card offer until after you buy.
• Be honest about your budget and your savings. If you want to move up to a larger (and more expensive) home, make sure you can really afford the change.
• Talk to several mortgage lenders. Ask about the loan programs they offer. Don’t worry about getting pre-approved until you feel ready to start looking but get the information so you have an idea of how financing will work for you.

If you do a little preparation up front before you start the serious task of listing your current home and looking for a new one, the process will be much smoother. When you’ve done everything you can to get ready, contact a Realtor who can answer your questions, give advice on the value and marketability of your home, and even refer you to a good agent if you’re moving out of the area.

Make 2017 the year you found the next new home of your dreams!