JUPITER, Fla. (PRWEB) October 04, 2012
A new report that shows rental properties trending toward their lowest occupancy rates in more than a year is another promising sign of a recovering real-estate market.
The report, released Sept. 30 by analyst company Reis, found that landlords rented out an additional 22,600 units during the third quarter of 2012, a decrease from the 31,000 additional rentals in the April-through-June quarter and the extra 36,400 in the January-through-March quarter. Reis also said apartment-occupancy rates increased at their slowest pace since 2010, when mortgage rates first started dropping and now sit at historic lows.
The U.S. mortgage rate crept up slightly in September but fell right back down after the Federal Reserve announced plans to invest $40 billion a month in mortgage-backed securities. The spending strategy is known in the industry as quantitative easing and is aimed at stimulating economic growth and easing unemployment.
According to data provided by Freddie Mac, the mortgage rate is 3.4 percent – down from 3.47 percent – on a 30-year loan and is at its lowest since 1971.
Matthew Gardner, head of research form Gardner Economics, said the summertime statistics show homebuyers starting to outpace renters, especially when renters learn their mortgage will be lower than the monthly check to their landlord.
In addition to appealingly low mortgage rates are appealingly low home prices. According to the Commerce Department, the median price for an existing single-family home was $256,900 in August, the latest month for which figures are available.
While that number is 17-percent above the median price of August 2011, it’s still a good buy, said Victor Calanog, a lead economic researcher at Reis.
New-home purchases showed sparks this quarter, too. The Commerce Department reported a 28-percent increase in sales from the same period in 2011.
Waterfront Properties and Club Communities Managing Partner Rob Thomson said the recovering real-estate market is evident in Palm Beach County, where home sales are heating up as the Fall and winter seasons set it. The Jupiter-based company’s sales agents specialize in BallenIsles homes for sale and Juno Beach oceanfront condos, as well as other South Florida real estate.
The licensed brokerage and residential and commercial-property seller has specialized in South Florida real estate for more than 30 years and is one of the top boutique companies in the state in transactions. The company has three offices and a highly trained staff of professional Realtors whose trademark is concierge-style customer service.
For information, call 561-746-7272.