Nationally, the pace at which U.S. home prices are rising has slowed, but a new report shows that home prices have retraced much of the ground they lost after the 2008 crash. Prices rose a seasonally-adjusted 0.1% in July, according to an index maintained by the Federal Housing Finance Agency. That was down from increases of 0.3% in June and 0.2% in May, but it represents the eighth straight monthly gain. With the latest increase, home prices are now up 4.4% over the past year. What’s more surprising is that the index shows U.S. prices now standing just 6.4% below their previous peak in April 2007.
Of significant interest to the Brown Realty Group is the number of cash buyers. Over half of Florida’s June property sales were all cash transactions, according to CoreLogic. That places Florida in first place for cash sales, nationally. In second place, Alabama was at 48% cash sales. In a comparison of large US cities, Cape Coral/Fort Myers led the nation in all-cash sales at 61.2% and four other Florida cities followed. Nationally, all-cash sales made up 33% of all transactions, which is the lowest percentage since September 2008, according to CoreLogic. Before the housing melt-down, cash sales historically made up about 25% of all transactions. Cash transactions reached their peak at 46.2% in January 2011.
Locally, new home construction is on fire! Some of this new home construction is visible while simply driving down the street, but most of the new construction is tucked back, behind the walls of the gated communities. Stock Development reported that the unprecedented surge in 2014 sales activity at Quail West continued during the month of August. A total of 4 builder-lot and home packages valued at over $5.9 Mil and 10 additional pending home and lot packages sales worth $14 Mil were processed at the Quail West Community. Year to date, contracted and pending new home sales at Quail West totaled $94 Mil through Aug 31.
Through August 31st at Talis Park, 68 home-site contracts and 34 new-build contracts valued at over $65 Mil have been processed. The Ronto Group reports that Naples Square sold 15 new homes in July and August, valued at more than $12 Mil.
In the Estero/Bonita Springs area, Bonita Lakes (developed by Toll Brothers) has reported to The Brown Realty Group that it has sold more than half of its entire available inventory. In the South Fort Myers area, DR Horton reports to us that their Creekside Preserve development (just N of the Estero CC on 41) is selling faster than expected.
See The Brown Realty Group at Downing-Frye Realty for all of your real estate, home sale or home purchase needs!