Enabling Entry to Housing Market Through Downpayment Assistance and Tips

Out of the 902 closed sales for homes in the Naples area during April 2017, 65.3 percent were cash sales and 34.7 percent were conventional mortgage sales, according to the latest report released by the Naples Area Board of REALTORS® (NABOR®).  The March Market Report pointed out the history of cash sales in the area has dropped over the last several years and more buyers are using conventional mortgages for the purchase of their homes: 73 percent cash sales in March 2015, 67 percent for March 2016, and 64 percent for March 2015.  With a growing number of homebuyers turning to financing in order to purchase a home and a recent survey by real estate data provider Zillow reporting that more than two-thirds of renters consider setting aside money for a downpayment as the number one obstacle to entering the housing market, it is important for potential buyers to be aware of the options available to assist them in getting over the downpayment hurdle.

Here are some tips for potential homebuyers to consider in overcoming the downpayment hurdle include:

·      Consider beginning to save early on.

·      Carefully weigh loan options.

·      Look into lenders offering loans through government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, which only require a 3 percent downpayment or loans offered through the Federal Housing Administration (FHA), which require a 3.5 percent downpayment.

·      Buyers who are U.S. Military Veterans, service members or residents of specific rural areas may not have a downpayment requirement at all, as the Department of Veterans Affairs and the U.S. Department of Agriculture have zero-downpayment loan programs available for qualified borrowers. 

·      Consider using gift money from relative or friends toward the downpayment amounts or retirement savings. 

·      A large number of downpayment assistance programs exist across the nation as well, for borrowers with low to moderate income, teachers, firefighters, and other public service positions.

With industry leaders indicating a vast and growing number of potential homebuyers are currently interested in entering the housing market, as well as a decreasing number of cash sales in the Naples area, an increasing number of buyers looking to finance the purchase of a home, and clearly expressed concerns about challenges in saving enough money for a downpayment, a clear analysis of all of the options available to potential homebuyers is timely and essential.   As the summer residential real estate season begins, potential homebuyers are encouraged to explore the many options available and carefully consider those options as far as requirements for qualification and what will best fit the individual current and future needs of each homebuyer.

UF Survey Results Show Sharp Increase in Florida Consumer Sentiment

 

Consumer sentiment among Florida residents increased in March to the highest level in 15 years, according to the most recent University of Florida (UF) consumer survey. 

University of Florida’s most recent consumer survey results indicate a consumer sentiment reading of 99, the highest rate since March 2002 and the second-highest rate since November 2000.  The lowest index possible is a 2, while the highest possible is 150.  All components that the index is based on showed an increase.

The current outlook that Floridians have regarding their financial situation increased from 88.1 to 88.5.  The perception of Floridians regarding whether it is a good time to buy a major household item such as an appliance increased from 99.7 to 103.5.  Hector H. Sandoval, Director of the Economic Analysis Program at University of Florida’s Bureau of Economic and Business Research says, “The increase in these two components shows that current economic conditions improved among Floridians in March.”  “In particular, women and those under age 60 displayed more optimistic perceptions.” 

The rating measuring what Floridians expect regarding the standing of their personal finances a year from now increased from 99.5 to 107.3 and participants’ viewpoints regarding the economic conditions of the United States over the next year increased from 92.0 to 99.2.  Participant viewpoints of the United States economic conditions over the next five years also increased from 89.5 to 96.7.

“Overall, Floridians are far more optimistic in March than the previous month.  The gain in March’s index came mainly from consumers’ future expectations about the economy.  Importantly, these views are shared by all Floridians, independent of their demographic characteristics and socioeconomic status,” says Sandoval.  “These expectations are particularly strong among women and those with an income under $50,000.”

Encouraging economic news has likely boosted consumer sentiment in Florida.  The labor market statewide continues to expand, with more jobs added on a monthly basis for over six years.  The unemployment rate in Florida remained at five percent in February.  According to the U.S. Bureau of Economic Analysis, Florida ranked third out of all states in the nation as far as personal income growth, with a rate of growth of 4.9 percent in personal income from 2015 to 2016. 

Survey Points to Significant Increase in Florida Consumer Sentiment

Consumer sentiment among Florida residents increased in March to the highest level in 15 years, according to the most recent University of Florida (UF) consumer survey. 

University of Florida’s most recent consumer survey results indicate a consumer sentiment reading of 99, the highest rate since March 2002 and the second-highest rate since November 2000.  The lowest index possible is a 2, while the highest possible is 150.  All components that the index is based on showed an increase.

The current outlook that Floridians have regarding their financial situation increased from 88.1 to 88.5.  The perception of Floridians regarding whether it is a good time to buy a major household item such as an appliance increased from 99.7 to 103.5.  Hector H. Sandoval, Director of the Economic Analysis Program at University of Florida’s Bureau of Economic and Business Research says, “The increase in these two components shows that current economic conditions improved among Floridians in March.”  “In particular, women and those under age 60 displayed more optimistic perceptions.” 

The rating measuring what Floridians expect regarding the standing of their personal finances a year from now increased from 99.5 to 107.3 and participants’ viewpoints regarding the economic conditions of the United States over the next year increased from 92.0 to 99.2.  Participant viewpoints of the United States economic conditions over the next five years also increased from 89.5 to 96.7.

“Overall, Floridians are far more optimistic in March than the previous month.  The gain in March’s index came mainly from consumers’ future expectations about the economy.  Importantly, these views are shared by all Floridians, independent of their demographic characteristics and socioeconomic status,” says Sandoval.  “These expectations are particularly strong among women and those with an income under $50,000.”

Encouraging economic news has likely boosted consumer sentiment in Florida.  The labor market statewide continues to expand, with more jobs added on a monthly basis for over six years.  The unemployment rate in Florida remained at five percent in February.  According to the U.S. Bureau of Economic Analysis, Florida ranked third out of all states in the nation as far as personal income growth, with a rate of growth of 4.9 percent in personal income from 2015 to 2016. 

Prime Time to Put a Home on the Market

Many factors can have an effect on the sale of a home, including the timing of when the home is listed.  According to a recent evaluation by Zillow, the best time of the year to list a home for sale in the United States is between May 1 and May 15.  The analysis results show that homes listed during this period of time typcially sell for a higher price and at a faster pace (9 days faster than the average for the nation overall). 

The May 1 through May 15 timeframe is the best overall time frame to list a home for sale in the United States, though this window of time varies for some metro areas.  For example, the ideal time frame for homes to be listed for sale in San Francisco, California is May 16 – 31; the ideal time for Miami-Fort Lauderdale and Tampa, Florida is March 1 – 15; and the ideal time for homes to be listed for sale in Baltimore, Maryland is April 1 – 15, during which homes for sale tend to sell approximately 21.5 days faster than average.

Zillow’s analysis also indicates that there are ideal days of the week for the initial listing of a home for sale.  Homes new to Zillow on Saturdays are generally viewed 20 percent more during their first week on the market than homes that are listed on Zillow earlier in the week. 

“With 3 percent fewer homes on the market than last year, 2017 is shaping up to be another competitive buying season,” says Dr. Svenja Gudell, Chief Economist at Zillow.  “Many homebuyers who started looking for homes in the early spring will still be searching for their dream home months later. By May, some buyers may be anxious to get settled into a new home – and will be more willing to pay a premium to close the deal,” Gudell adds.

These are some important factors to take into consideration for homeowners looking to list their home for sale, but also for buyers and residential real estate industry professionals across the nation. 

Reasons Why Families Choose Naples, Florida

Naples, Florida is widely known for its beautiful white sand beaches and its warm climate, yet there are a plethora of additional benefits to living in the area and families who already live in Naples or are looking to move there are more than aware. Some of the key benefits to living in Southwest Florida’s Naples include safety, dining, cleanliness, outdoor activities, architecture, year-round events, good schools, and employment opportunities.

The crime rate in Naples, Florida sits far below the national average. Reports indicate the crime rate in Naples is also approximately 86 percent lower than the Florida state average. The police officer to resident ratio is high as well, which helps to keep the crime rate low.

Some of the best dining options in the nation are located in Naples. Favorites include Osteria Tulia, The Grill at Ritz Carlton, Truluck’s and the Turtle Club.

When it comes to the cleanliness of Naples, the word pristine comes to mind. Litter-free roads, smaller signs, clean beaches, and meticulously landscaping all contribute to the overall beauty in this slice of paradise.

There is an abundance of outdoor adventure possibilities in Naples, including golfing, boating, fishing, snorkeling, parasailing, paddle boarding, and more. The warm and sunny weather draws people to enjoy the outdoors. And for those who want to enjoy a little bit of relaxation in the sun, the beaches are stunning from sunrise to sunset, with Naples offering some of the most vibrant, awe-inspiring and colorful sunsets.

Year-round events are also hosted in Naples, drawing residents to go out and about and drawing visitors to the area. Music and art festivals, a yearly seafood festival, craft beer festival and musical performances catering to those who follow all genres fill the area throughout all months of the year.

In addition to all of the above, Third Street South and Fifth Avenue South districts offer boutiques, various specialty shops and outdoor cafes, offering a multitude of shopping and dining options as well as dancing and other nightlife.

Naples was reported to be the happiest and healthiest city in the United States, according to Gallup-Healthways Well-Being Index in 2016, and it is easy to see why.

Welcome Readers

I am a 4th generation native Floridian and has lived in Naples since 1977. Growing up in the area has afforded me a deep, intimate knowledge of Southwest Florida and everything it has to offer to residents and visitors – especially in the residential real estate market.

I have been a licensed REALTOR® since 1993. I've bought and sold residential real estate all over Southwest Florida from Marco Island to Cape Coral, and everywhere in between. My focus is concentrated on vacation and second homes, investment homes for the golf enthusiast, and those desiring the waterfront lifestyle. I specializes in resales, renovations, pre-construction and new construction homes.

I attended the University of South Florida with studies in Business and hold a Bachelor of Science Degree in Business Administration from Hodges University.

When I'm not serving clients, I take advantage of Southwest Florida’s world-class dining and shopping, and is an avid boater as well. Additionally, I am very active in the community, attending and organizing social activities for many local causes.

I've been married to my husband, Rich, for over 23 years and have two sons who attend local schools.