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Half of all homes sold in Volusia-Flagler go above asking for 1st time

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  • Existing home closed sales increased 64% year over year in Flagler County in April and 46% in April in Volusia
  • The median sales price of homes sold in April rose 20% year-on-year in Flagler and 18% in Volusia
  • Home cash purchases were up 156% yoy in April in Volusia and 79% in Flagler

DAYTONA BEACH – Although inventory levels shrank to new record lows, the number of homes sold in April in Volusia and Flagler counties rose on average, according to Realtor Association reports.

And for the first time, the median percentage of the original list price received in the combined area with two counties increased to 100%.

“I have never seen in my 23 years as a broker that the median sale price is 100% of original demand,” said Bill Navarra, the broker / owner of Realty Pros Assured in Ormond Beach.

In April, half of all closed sales of existing single-family homes recorded in both Volusia and Flagler counties were sold above the original asking price.

“We saw some sell for up to 5%. On a $ 500,000 home, that means it sold for $ 25,000. It’s absolutely unprecedented,” Navarra said.

“It used to be very rare for a home to sell beyond demand,” said Alisa Rogers, 2021 president of the Daytona Beach Area Association of Realtors. “That changed during the pandemic last year. It is now normal to see multiple offers for homes. Many contracts have an escalation clause that says they will escalate their offer up to up to if another higher offer is received . ” a fixed cap. “

The median sales price of existing properties sold in April – meaning half sold for higher and half for less – rose to $ 300,000 in Flagler County, up 20.5%, according to the latest statistics from the Flagler County Association $ 249,000 last month from brokers.

In Volusia County, the median sales price of homes sold in April rose to $ 275,000, up 18.4% from $ 232,250 last month. This comes from nationwide data from the West Volusia Association of Realtors.

The number of April closed sales in Flagler increased 64.2% to 353 from 215 a year ago. In Volusia, closed sales rose to 1,063, an increase of 46.4% compared to 726 in the same month last year.

CONTINUE READING: Volusia is growing rapidly. This also applies to concerns about overdevelopment

DOWNSIDE OF THE RED-HOT MARKET:Rising home prices are freezing some first-time buyers

This is due to COVID: The pandemic is helping to fuel home demand, according to real estate agents

Cash offers on the rise

Alisa Rogers is the new 2021 Board Chair of the Daytona Beach Area Association of Realtors.  She is a realtor at 1st Florida Realty in Daytona Beach Shores.

Cash purchases accounted for roughly one in three homes sold in both counties. The 308 in Volusia County were up 156.7% from 120 in the same month last year. Flagler County’s 120 cash purchases were up 79.1% from 67 a year ago.

Rogers is an agent at 1st Florida Realty in Daytona Beach. She was representing an Ormond Beach buyer who recently bought a 1954 beachfront home on Williams Avenue in Daytona Beach. “We published our offer within hours of placing it on the market. Several offers have been obtained. We have offered to pay the full price in cash. In this market, the terms of the offer are just as important as the price.”

The surge in demand for existing homes is fueled by a steady influx of new arrivals from other states to the area as well as the rest of Florida. According to Realtors, many come from more populated urban areas.

Low interest rates and the improving economy are also important factors.

And while home starts are rising in both Volusia and Flagler counties, realtors say demand continues to outpace supply of new and existing homes.

Still unwise to set “crazy” offer prices

But even though it has become a sellers’ market, real estate agents are warning those thinking of putting their home up for sale against setting an unreasonably high asking price.

The danger is that the prospective buyer’s mortgage loan application will be rejected if it is greater than the estimated value, unless the buyer is willing to make up the difference out of pocket.

The other risk is that the house will simply stay in the market for an extended period of time.

“In any property market there will be some who will test it and really overvaluate their home,” said Navarra. “People who think they might be asking a crazy price, what generally happens is they sit in the market until they have to bring the price down.”

Homes sell faster when inventory decreases

The number of available homes in the market fell to just 307 in Flagler County and 905 in Volusia County by the end of April. A year ago, Flagler County had 968 available homes while Volusia County had 2,682.

And houses are selling faster and faster. The average contract length in Flagler County decreased from 42 a year ago to just 13 days in April. In Volusia County, half of all homes sold in April were signed in 11 days, up from 29 in the same month last year.

Still, Area Realtors say they don’t believe the real estate market is heading for a crash, as it did after the so-called real estate bubble years 2004-2006. This crash contributed to the great recession.

“You can’t have a bubble with cash,” said Navarre, referring to the high percentage of houses that were bought in cash as opposed to a mortgage loan.

“The last time we had a bubble and the real estate market collapsed, it was because we bought so many homes on three-year adjustable-rate mortgages,” Navarra said. “It meant that the payments went where people couldn’t afford them.”

Toby Tobin, a real estate agent at Grand Living Commercial Realty in Palm Coast, points to trendlines in the Flagler County's real estate market in this file photo taken several years ago.  He writes a blog about the Flagler real estate market called GoToby.com.

The problem with the recent real estate boom was that many of those who bought homes in 2004-2006 did so with no loss of money and with a plan to flip it over for a quick profit, said Toby Tobin, a broker at Grand Living Commercial Realty in palm coast.

“This model is based on a growing market,” said Tobin, who blogs about the Flagler County’s real estate market called GoToby.com.

“When the music stopped and all the chairs were gone, there was a lot of properties left that they couldn’t sell and that couldn’t afford to take out the monthly mortgage loans,” he said. “They were instantly underwater on their mortgage, which means they owed more than they could sell the house.”

Tobin said local home sales prices are unlikely to rise as quickly as they have been in recent months.

“We’re not going to raise property sales prices by 20% forever, that’s for sure. But neither are we going to see a crash like we did before the recession because all fundamentals are different today,” he said.

Banks don’t give out risky loans like they did during the last real estate boom. And the high percentage of homes being bought for cash means there isn’t a mortgage loan that could suddenly go underwater, Tobin said.

Perhaps most importantly, “Most home buyers today are end-users, which means they either live in them or want to rent them to someone else to live in instead of flipping them over,” he said.

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Housing crisis becomes an emergency as Salt Lake County home prices spike 31% in a year

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Average price climbed to $ 535,000 in May, $ 128,000 more than twelve months ago as severe supply shortages and declining sales take their toll on would-be buyers in Utah.

(Francisco Kjolseth | The Salt Lake Tribune) A home for sale in Salt Lake City on Tuesday, April 27, 2021. Despite Utah housing demand at historic highs, home sales along the Wasatch Front declined earlier this year due to a lack of supply. Single-family home prices, meanwhile, continue to rise as wafer-thin deals dampen sales and buyers seek cheaper alternatives like condos and townhouses.

As the latest sign of the Utah real estate crisis, Wasatch Front real estate agents lamented the catastrophic shortage of homes in the market on Thursday as prices soar to shocking new records and sales continue to decline.

The average price of a single-family home in Salt Lake County surged the noticeable $ 500,000 mark sometime in March, then hit $ 535,000 last month, new data shows – a staggering $ 128,000 year-over-year increase of 31%.

This major damper on the price spiral pushed the volume of home sales in the five-county region in May well below the level of the same month last year, when home shopping was temporarily wiped out by COVID-19.

With the average new home supply now spanning 30 to 40 and selling in five days, real estate agents in Utah’s main metropolitan area issued a rare emergency statement saying the region was “severely undeveloped” and facing severe declines through decades of underinvestment be in terms of affordability.

“It will take more construction of all types of homes so more people can realize the American dream of their own home,” said Matt Ulrich, president of the Salt Lake Board of Realtors, which covers Salt Lake, Utah, Weber, Davis and Tooele counties.

“It’s just too tough out there,” said Ulrich in an interview. “There is simply not enough stock because the demand is so great.”

That cry for help sparked a new report released on Wednesday that estimates the country’s housing deficit at around 5.5 million units. The industry study calls for residential construction in the US to increase by 2 million homes annually over the next decade, compared to 1.3 million units built last year.

America’s housing stock has been largely neglected for nearly two decades, the National Association of Realtors report said, with a severe shortage of new buildings leading to an acute shortage, an “increasingly worsening” affordability crisis and an inventory of existing homes it is getting old and in need of repair.

Calling the magnitude of the construction delay and the resulting gap between demand and supply “enormous”, the report said the crisis will require “a major national commitment to building more homes of all kinds”.

In Utah, the housing gap is estimated at 45,000 to 50,000 single-family homes, apartments, and other forms of housing, with a particularly acute need for more affordable housing for residents with average wages.

Home builders in Utah have record numbers of units under construction but say they are not catching up given the heavily pent-up demand, lack of supply and rising prices for land, building materials and builders.

According to economists, rising prices along the Wasatch front have temporarily slowed sales since 2019, but the pandemic-induced demand for houses with more rooms and larger backyards has pushed the supply of apartments to new lows.

The resulting drop in sales worsened in May, with double-digit price gains making it more of a creep and increasing stress on the part of buyers.

Home sales in May fell to 2,396, a 7% decrease from the same month last year, which was itself a historically bleak sales month, down 19% from 2019 due to pandemic lockdowns. The average single-family home price in five counties is now $ 485,000, up $ 109,640 from the same point last year.

While these declining sales are apparently a bread-and-butter problem for the area’s 10,000 or so real estate agents working on commission, a spokesman for the Salt Lake Board of Realtors said its members are speaking on behalf of budding homebuyers.

“We are heading for California prices if we stay on this path,” warned spokesman Dave Anderton. “And that is a really difficult situation, especially for first-time buyers.”

The National Association of Realtors report blamed the crisis on “persistent underinvestment” in all major regions of the country as a result of economic conditions following the 2009 Great Recession. This downturn resulted in severe job losses in the construction sector and tightened lending standards for builders and buyers, both severe setbacks to housing construction that persisted for years.

While the report describes this as a crisis of national proportions, Ulrich noted that Utah, Nevada, and Idaho – some of the fastest growing states in the country since 2010 – had also seen the worst declines in affordability.

The Cottonwood Heights-based broker and home builder reiterated the demands of the broader Utah real estate sector, urging cities to remove “onerous” building requirements and streamline building permits to reduce construction costs. Ulrich also called for increased incentives to attract more workers to builders – such as frame builders, electricians, plumbers and roofers – who are now scarce.

The national report also pointed to potential benefits of increased housing construction for the U.S. economy, including relief for costly tenants and nearly $ 400 billion in additional economic activity.

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Loyalsock taxpayers to see real estate tax increase for school district | News, Sports, Jobs

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For the first time in three years, residents of Loyalsock Township School District will pay more property taxes next year after the school board recently increased the rate by $ 0.43 million.

This means that for every $ 100,000 of the estimated value of a property, an additional $ 43 is added to the tax bill. According to M. Dan Egly, general manager and board secretary, the new tariff will generate $ 300,000 in additional revenue for the district that would have run a $ 640,000 deficit without the additional millage. The remaining deficit will be covered by fund balances to present a balanced budget for 2021-22 with revenues and expenditures of $ 25,084,743.

“We didn’t leave a stone unturned. We are looking for all possibilities to avoid the effects of these budgets on taxpayers. said Egge.

He said the district had renegotiated contracts, installed solar panels on buildings, and recently approved the construction of a cell phone boom on district property in an attempt to find ways to reduce costs.

“The district is looking for ways to avoid tax increases in the future, but unfortunately we have to make these decisions at some point.” said Egge.

The other tax rates remain the same for the next year.

The Loyalsock Township Recreation Board budget of $ 23,994 for programs available to children in the district for the period 2021-22 was awarded to the OK.

The board also approved that

Resolution to Foreclose Homestead / Farmstead, which will allow primary residents of qualifying properties to obtain a $ 130.75 reduction in their property taxes. There are 3,020 homesteads and nine homesteads in the district that are eligible for exclusion.

In Human Resources, the Board approved the following positions at the stated salary rates: Marc Walter, Assistant Principal, $ 86,000 for the 2021-22 school year; Maria Debrody, Temporary Specialist, Elementary School Teacher, effective October 18, prorated salary of $ 49,059; Laura Kriger, part-time high school secretary, $ 13 an hour; Connie Clapper, part-time hospitality worker, $ 10 an hour; and Erika Maurer, voluntary rail trainer.

The following resignations were noted: Julia Muse, data coordinator; Eric Gerber, social studies teacher; Brandon Schrimp, school policeman; and Kimberly Bigelow, hospitality worker.

The board agreed to accept a $ 4,700 offer made by James McDermott for a 2004 bus with 72 passengers. The bus had previously been sold but the sale was not completed so the bus was offered again.

The purchase of a Cub Cadet mower from Lawn & Golf Supply Co., Inc. for $ 18,824 has been approved.

With the district’s summer programs beginning and CDC policy changes, Superintendent Gerald McLaughlin asked the board if they had any objection to making mask wear optional during the summer months. The board agreed, but stressed that it is up to everyone whether they want to wear masks or not.

Prior to the business portion of the meeting, Denise Holmes was announced as the winner of the Lauretta Woodson Support Staff Award, and Alicia Carner, a special education teacher at the high school, received an Instructor Award Acknowledgment from the group.

The next board meeting will be on July 14 at 7:00 p.m. in the boardroom at 1605 Four Mile Drive.

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Former SEC chief accountant joins real estate investment platform as CFO

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Diving letter:

  • Fundrise, a direct-to-investor real estate investment platform, has been selected as new CFO Alison Staloch, former chief accountant for the investment management division of the Securities and Exchange Commission.

  • Fundrise, headquartered in Washington, DC, manages $ 1.5 billion in equity for more than 150,000 investors. The company has invested more than $ 5.7 billion in real estate since its inception in 2012.

  • Former Fundrise CFO Michael McCord was Fired for attempted blackmail In 2016, he denied a charge.

Dive Insight:

Staloch’s attitude follows news from earlier this month that Fundrise is a Goldman Sachs’ $ 300 million loan facility to finance the construction of new single-family houses in the Sun Belt region.

At the SEC, Staloch developed policy recommendations for regulating investment companies and advisors with regard to their disclosure and financial reporting requirements. Before that, she worked in the auditing practice at KPMG for a decade.

“Having spent my entire career in investor protection roles in our capital markets, I am inspired by Fundrise’s investor-centric mission to use technology to build a better financial system for retail investors,” Staloch said in a statement. “I am excited to work with the Fundrise team to further amplify the impact of its uniquely powerful technology to streamline conventional capital raising and capital financing on behalf of its customers.”

“Alison’s background in advocating at the highest level for the individual investor was a perfect fit for our mission at Fundrise,” said Co-Founder and CEO Ben Miller.

Alison Staloch

Courtesy Fundrise

Staloch was drawn to Fundrise to “do something more entrepreneurial,” she told CFO Dive. “I’ve spent my entire career in gatekeeping and regulation, so it was tempting to be part of building something.”

Staloch, who took up her position in late April, is the company’s first full-time CFO and characterizes her workload as typical of a late-stage company. She focuses on accounting and reporting, alongside more strategic work such as improving earnings models and managing diversity, equity and inclusion goals.

“The most important thing I’m focusing on right now is structuring the finance function to leverage the technology to automate controls and processes so the company can focus more strategically,” she said.

Fundrise is very complex and heavily regulated, but “incredibly innovative in terms of compliance”.

“That impressed me as a former regulator,” she said, adding that she supported the company’s mission to democratize access to alternative assets for retail investors.

In competition with Public Real Estate Investment Trusts (REITs) and with regard to access to a broad investor base, the company offers its products and services directly. “There really is no middleman,” she said.

Fundrise’s assets are managed externally; To achieve efficiency gains in operating costs, the company is focusing on building its technical efficiency to better scale.

“Our technology enables us to raise investor money through an online platform that enables incredible investments,” she said. “Our operations are all done in-house, and our technology gives us real-time data and insights to help us execute an investment strategy more effectively.”

While rising interest rates could affect the value of real estate, it doesn’t determine how Staloch approaches the strategy, she said. “We’re looking for assets that we believe can create value and that we also see an opportunity to transform a current approach to create even more value for our investors,” she said.

Amid the well-documented uncertainty over commercial real estate following the pandemic, Fundrise is not changing its plans.

“We are currently investing primarily in rental properties for multi-family and single-family houses: asset classes that are not confronted with the same uncertainty as commercial real estate,” said Staloch. “One of the benefits of investing is that our real estate assets are diversified; We are not restricted by any asset class or geography. Single family home rental is something of a new industry that we are targeting and we are constantly reviewing which asset classes have value and opportunities for disruption. “

Since McCord’s layoff in 2016, Fundrise has been a Regulation A applicant and filing regulation letters for all funds and measures, Staloch said, which is “truly unique for a company at our stage”. Her own due diligence process has shown her the company has strong controls and, as a former regulator, Fundrise has been impressed by its adherence to strict regulations.

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