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Source: CoreLogic’s 2020 Hottest Cities for Homebuyers Report

Income Properties

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829

Tampa Bay Metro comes in a fifth place out fifteen Hottest Cities for Homebuyers 2021-08-11

Gulf Coast
Real Estate Update

August 11th, 2021

Tampa Bay Metro 5th Hottest

for Relocating Homebuyers

Tampa Bay Metro comes in a fifth place out fifteen Hottest Cities for Homebuyers. In fact, seven out of fifteen hottest metro areas are in Florida. The top 15 metros on CoreLogic’s hottest cities for home buyers report for 2020 tended to tout affordability with lower costs per square foot, lower property taxes, and no state income taxes. Also, sunny climates that offer lots of outdoor amenities tended to be a big draw.

Market is starting to moderate a bit

With global market uncertainty surrounding the Delta variant of COVID-19, we saw 10-year Treasury yields drift lower and consequently mortgage rates followed suit. The 30-year fixed-rate mortgage dipped back to where it stood at the beginning of 2021, and the 15-year fixed remained at its historic low. This bodes well for those still looking to refinance, renovate or even purchase a new home.

What’s For Sale

Income Properties

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829

U.S. real estate market might finally be cooling down 2021-08-06

Gulf Coast
Real Estate Update

August 6th, 2021

Real Estate market might be cooling down

Several recent reports show that the U.S. real estate market might finally be cooling down a bit. Nationally we’ve seen a decline in home sales, an increase in inventory, and other indicators that suggest the housing market is slowing. While the real estate scene does appear to be slowing into the latter part of 2021, most U.S. cities are still experiencing seller’s market conditions. Across much of the United States, housing supply is starting to trend upward.

Here’s how our market compares.

Residential Sales Volume in Pinellas County dropped 11% from June 2021 to July 2021.

Median Sales Prices of residential property dropped modestly following monthly price increases since the beginning of the year.

Mortgage Rates Trend Dip

What’s For Sale

Income Properties

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829

Purchases by foreign buyers during April 2020–March 2021 decreased by 27% to $54.4 billion 2021-07-26

Gulf Coast
Real Estate Update

July 26th, 2021

Foreign buyer activity down 27%

As the global economy and foreign travel shrank in 2020, the dollar volume of U.S. existing-home purchases by foreign buyers during April 2020–March 2021 decreased by 27% to $54.4 billion. The dollar volume of foreign buyer purchases amounts to 2.8% of the $5.8 trillion of existing-home sales during this period, a decrease from the 4.4% share in the prior period.

The recent downturn is not surprising considering travel restrictions associated with the coronavirus. What is surprising is that foreign buyer activity has been trending downward since 2017. A U.S. housing shortage is part of the problem, though there are other economic factors at play:

Strong US dollar makes it harder for overseas investors to afford U.S. Real Estate.
Decline in international tourism
Falling international trade
Fewer foreign students attending American universities

Source:
National Association of REALTORS
Profile of International Transactions in U.S. Residential Real Estate 2021

Mortgage Rates Trend Down

Concerns about the Delta variant, and the overall trajectory of the pandemic, are undoubtedly affecting economic growth. While the economy continues to mend, Treasury yields have decreased, and mortgage rates have followed suit. Unfortunately, many homebuyers are unable to take advantage of low rates due to low inventory and high prices.

What’s For Sale

Here’s whats sold for about $1M so far this month

Income Properties

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829

Tampa Bay Rents are up dramatically 2021-07-20

Gulf Coast
Real Estate Update

July 20th, 2021

Tampa Bay’s rent rising faster than any other metro area this year

Tampa Bay’s average asking rent rose 15.6 percent in the first half of 2021, according to data from CoStar Group, a national real estate data company.

The increase means that on January 1, the average asking rent for a one-bedroom, one-bathroom unit was $1.41 per square foot. By June 30, it hit $1.63. The analysis includes Pinellas, Hillsborough, Pasco and Hernando counties.

But what about all those cranes around Tampa Bay, building apartment complexes seemingly everywhere? CoStar data shows that Tampa Bay is, in fact, seeing its greatest increase in supply in two decades, with 5600 new rental units delivered last year. This year’s pace is on track to be even higher. But demand is so strong that it’s absorbing all of it and more — the region still has a vacancy rate at about 4.9 percent, the first time it’s ever dipped below 5 percent since CoStar started tracking in the 90s

Source: Tampa Bay Times

What can you get for $1,000,000 in Pinellas County?

Mortgage Rates Continue to Decrease

What’s For Sale

Income Properties

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829

Owners Exit Forbearance… Foreclosure Spike Unlikely 2021-07-09

Gulf Coast
Real Estate Update

July 9th, 2021

Foreclosure Spike Unlikely

as Owners Exit Forbearance

About 2.7 million homeowners are behind on their mortgage payments and 1.8 million are seriously delinquent 90 days or more past due or are in foreclosure. 77% of homeowners in forbearance programs have a loss mitigation repayment plan in place according to the Mortgage Bankers Association. With the rapid level of home price appreciation in the last year many distressed owners will be able to avoid foreclosure by selling or refinancing. Homes backed by FHA mortgages are most at risk and have the highest delinquency rates. FHA Loans require minimal down payments and underwriting is considerably more forgiving than conventional loans. There are ten metro areas identified with the highest risk of foreclosures and none of those Metro areas are in Florida. The following Metro are at the highest risk:

Atlanta

Houston

Chicago

Dallas

Washington-Arlington-Alexandria, D.C.-Virginia-Maryland-West Virginia

Baltimore

Riverside-San Bernadino

San Antonio

Fort Worth

Phidelphia

To put this in perspective on the National scale, there’s currently a shortage of 5 million single family homes in the United States compared to 1.8 million seriously delinquent mortgages.

Given the recent home price appreciation and all the given forbearance / refinance options available the most likely scenario is that about one-third of these delinquent loans could end up on the market or in foreclosure. That’s about 618,000 homes which equates to 1.3 months of supply of the current monthly sales pace of 480,333. This modest increase in supply would temper home price appreciation a bit but the overall impact will be minimal.

And if you’ve heard about a massive wave of foreclosures coming, take a look at this chart for the State of Florida. Note the number of mortgages 90 days past due in 2010 compared to now.

Todays Mortgage Rates

Mortgage Rates Continue to Move Down
July 8, 2021

Mortgage rates decreased this week following the dip in U.S. Treasury yields. While mortgage rates tend to follow Treasury yields closely, other factors can be impactful such as the labor markets, which are continuing to improve per last week’s jobs report. We expect economic growth to gradually drive interest rates higher, but homebuyers and refinance borrowers still have an opportunity to take advantage of 30-year rates that are expected to continue to hover around three percent.

What’s For Sale

Income Properties

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829

Summer Market Heats up in Pinellas 2021-07-01

Gulf Coast
Real Estate Update

July 1st, 2021

Summer Market

Heats Up in Pinellas

Now that we’re coming into the Summer Housing Market let’s take a look at what happened in June of this year compared to the last five years. The study includes all residential Real Estate in Pinellas County including Condominiums, Townhouses, Villas and Single Family Homes.

The median sale price increased 18% year over year from June of 2020 to June of this year. The median sales price has increased 31% overall since June of 2017. Interesting to note the record number of sales in June this year in spite of a very limited supply of available listings.

42% of sales sold for cash in June of this year. Buyers who opted to get a mortgage enjoyed record low mortgage rates.

Todays Mortgage Rates

Mortgage Rates Inch Down July 1, 2021

Economic growth remains steady and is bolstering more segments of the economy. Although low and stable mortgage rates have kept the housing market booming over recent months, a deterioration in affordability and for-sale inventory has led to a market slowdown.

What’s For Sale

Income Properties

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829

Florida Owned Citizens Insurance Tops 600,000 Policies 2021-06-22

Gulf Coast
Real Estate Update

June 22nd, 2021

Florida Owned Citizens Insurance

Tops 600,000 Policies

With private insurers dropping customers and seeking double-digit rate increases, Citizens’ policy count has surged in 2020 and 2021. As an example, it had 463,247 policies on May 31, 2020, or nearly 32% growth during the past year, according to the website.

President and CEO Barry Gilway has said Citizens, which was created as an insurer of last resort, likely will have about 750,000 policies by the end of this year.

Source: News Service of Florida

DeSantis Says He’ll Sign Bill

Changing Property Insurance

A bill that may increase rates for some owners with state-owned Citizens Property Ins. will likely be signed into law. DeSantis says it will “stem some of the problems.”

Among changes in the bill to take effect July 1, 2021:

1. Allowing larger annual rate increases for customers of Citizens. Such increases currently are capped at 10%, but that limit would be gradually raised to 15%.

2. Preventing contractors from soliciting homeowners to file insurance claims, including offering incentives to homeowners. That part of the bill is intended to curb roof-damage claims. It also seeks to prevent public insurance adjusters from offering incentives to inspect for roof damage.

3. Taking steps to try to limit fees of attorneys who represent homeowners in lawsuits against insurers. That involves using a formula that would look at how much money is awarded in court judgments and how much money was offered by insurers to settle claims before the lawsuits.

4. Reducing from three years to two years the time to file claims, with an additional year for supplemental claims.

Source: News Service of Florida

Todays Mortgage Rates

Mortgage rates continue to drift down as markets concur with the view that inflation increases are temporary. While mortgage rates are low, purchase demand has weakened over the last couple of months, primarily due to affordability constraints stemming from high home prices. With inventory tight, the slowdown in demand has yet to impact prices, meaning the summer will likely remain a strong seller’s market.

What’s For Sale

Income Properties

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829

Inflation is up. When will interest rates go up? 2021-06-16

Gulf Coast
Real Estate Update

June 15th, 2021

Inflation is up. When will rates go up?

Last week, the government reported that inflation jumped to 5% in May compared with a year earlier – the largest 12-month spike since 2008. The 30-year fixed-rate mortgage averaged 2.96% for the week ending June 10, according to Freddie Mac’s weekly report – down three basis points from the previous week.
In general, when interest rates are low, the economy grows and inflation increases. Conversely, when interest rates are high, the economy slows and inflation decreases.

The economy is recovering remarkably fast and as pandemic restrictions continue to lift, economic growth will remain strong over the coming months. Despite the stronger economy, the housing market is experiencing a slowdown in purchase application activity due to modestly higher mortgage rates. However, it has yet to translate into a weaker home price trajectory because the shortage of inventory continues to cause pricing to remain elevated.

Todays Mortgage Rates

What’s For Sale