Clear Signs of the Real Estate Market Recovery
U.S. Homes Prices Rising; Key West Market Outperforming Averages
U.S. home prices are on the rebound, and not only do we have the sales numbers to prove it, we’ve seen considerably stronger sales in Key West. The latest Federal Housing Finance Agency (FHFA) data shows that home prices increased by 0.8% between April and May in the U.S. This is the second month-to-month rise in home prices. When compared to last year, the most recent data is a sign of encouragement and progress.
In the Key West real estate market during the same period single-family home prices rose by 8%, and townhouse and condo prices, rose by 18%.
Home Prices Rise Across-the-Board
Here are some statistics to illustrate that these are not isolated events:
- Zillow Home Value Index – This index tracks median home values. It shows that in June, the year-on-year index was up by 0.2% for four consecutive months.
- DataQuick – Their recent report shows an increase of 6% in year-on-year median home prices for the July 5 week ending. This report analyzed two-thirds of the housing market in the US.
- National Association of Realtors (NAR) – They recently reported a rise in median home prices in June for the third consecutive month. Prices have increased by 7.9% in comparison to June 2011.
- S&P/Case-Shiller – In April, their 20-City Index increased by 1.3%. 19 out of these 20 cities saw home prices increase that month.
Banks are Turning to Short Sales vs Foreclosures
The market is seeing a trend toward short sales. More banks are approving short sales to avoid foreclosing on homeowners:
- DataQuick – According to them, the amount of homes in California going through the foreclosure process was the lowest it’s been in five years during the second quarter of 2012.
- Notice of Default (NOD) – Between April and June, the total amount of recorded NODs was 54,615. That’s a quarter-over-quarter decrease of 2.9% and a year-on-yearShort Sales – Short sales have increased, quarter-over-quarter, by 13%, and year-on-year by 10.2%.
- Foreclosures – Last quarter, California foreclosures amounted to 27.9% of the state’s real estate resale activity. The previous quarter, foreclosures amounted to 33.6% of the activity, and 35.6% one year ago.
- New Home Sales – After two straight months of showing gains, the sale of new homes dropped by 8.4%.
Latest Key West Real Estate Market TrendsThere’s also good news for the Key West housing market. The Key West Association of REALTORS released sales figures for the 2012 second quarter. Here are some of the statistics in the report which reflects growth and stability:
- When compared to the first quarter of 2011, overall home sales prices rose by 4%. Although fewer homes actually sold, this can be contributed to a shortage of inventory. There were 465 homes for sale in April 2011. In April 2012, inventory had decreased by 10% to just 418
- Average sales prices were up by .04% in April 2012, compared to one year ago. Median sales prices saw a 3.4% increase in comparison to recorded sales of Key West real estate in April 2011.
Key Reports Key West real estate prices for April 2012:
- Key West single-family home prices rose by 8%.
- Key West townhouse and condo prices increased by 18%.
Key Statistics for Key West real estate sales for June 2012:
- 16 single-family homes were sold.
- 17 condos and townhouses were sold
- 6 “other” types of real estate property sold.
Average Selling Prices
- Single-family homes: $488,250
- Condos and townhouses: $292,235
- Other real estate: $580,333
Median Selling Prices
- Single-family homes: $411,000
- Condos and townhouses: $235,000
- Other real estate: $212,000
These statistics show increases and reflect trends over the past year. Market reports by Key West Broker Rudy Molinet reflect steady increases since July 2011 in the Key West housing market. See: http://rudymolinet.com/keywestrealestatenews/category/real-estate-news/market-reports/ for market reports, and full statistical analyses here from the Key West Association of Realtors: http://www.rudymolinet.com/kwrealtorsassocreports.html.