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South Florida Home Sales Jump Led by Miami-Dade

Single family home and condominium sales were up across the board as all of South Florida beat the national numbers reported the National Association of Realtors today in terms of percentage increase in units sold for the month of December on a year over year basis.

Media outlets will be predominantly reporting that national home sales are down on a month to month basis from November to December, but South Florida once again beat the national numbers posting numbers that were essentially unchanged on the Treasure Coast to up 37% in Miami-Dade.

Nationally, single family home sales are up 13%, year over year, while the Martin, St. Lucie, Palm Beach, Broward and Miami-Dade, all posted sales increases of 24-45%.

Condo sales on a national level posted a 35% increase but once again, South Florida posted condo sale increases of 45-82%.

Home Prices Show Strength and Stabilization Led by Palm Beach County

The median price for single family homes posted an increase of 1% in Palm Beach County, bucking the trend for the rest of the local area increasing to $247,900 from $246,000 one year ago. However, with the exception of the Treasure Coast which fell 16%, Broward and Miami-Dade continue to stabilize with declines of 5% or less.

Overall, home sales and prices continue to strengthen, in part supported by the continued low interest rates based on action from the Federal Reserve. One important piece of news you should know is that the low rates experienced this past year will end with the conclusion of the Fed’s program to purchase mortgage backed securities scheduled to end in March. Many experts, my self included, believe that without continued stimulus, home loan rates will increase anywhere from .50-1.00%.

A complete report and the press release from the Florida Association of Realtors can be seen here.

Cost to Finance with FHA Poised to Rise

HUD announced last week that the cost of up-front mortgage insurance will rise with all loan applications submitted April 5th and later. The cost of up-front mortgage insurance will be increasing from 1.75% to 2.25% or $500 for every $100,000 financed. On a $200,000 home purchase the impact to a monthly payment for those financing the entire amount is approximately $5 a month.

Later this year, HUD will also decrease the maximum amount of seller concessions a buyer may negotiate to lower their out of pocket funds required to close. The impact on a home purchase of $200,000 will be a reduction in seller concessions of up to $6,000.

Combined with the end of up to an $8,000 tax credit for both first-time home buyers and up to $6,500 tax credit for repeat purchasers at the end of April, there may never be greater opportunities to save money in purchasing a home.

Interest Rates Remain Attractive

Interest rates remain attractive to start the week while losing a little ground from the reported rates from Freddie Mac last week. Online offered rates from the Big Three banks for South Florida ranged from 4.875% to 5.125% with one point and APRs ranging from approximately 5.00% to 5.25% for a 30 Year Fixed conforming rate mortgage. FHA and USDA loans are currently offered at slightly higher interest rates.

Special Alert! Huge Money Savings Opportunities

Palm Beach Financial Network routinely offers interest rates and closing cost scenarios that beat the banks. Today and for a limited time, I can provide 30 Year Fixed rates with NO CLOSING COSTS on loan amounts of $240,000 to $417,000 for single family home buyers financing 80% or less of the purchase price at rates that compete with the big banks full closing costs rates! Act now, these rates and terms will not last and are subject to availability!

Unfortunately, no closing cost loans are not available for FHA loans at this time.

100% financing is available in all of Martin County and much of St. Lucie County, including Tradition, for many homes and qualified borrowers.

Call either of my direct lines at 561-626-7813 or 561-373-4622 for more details on how I can help you.