Americans pushed their limits when purchasing a new home. Many new homes have been secured with purchase agreements, and the builders have not broken ground yet. Thousands of homes are only half completed do to supply shortages and most may not be move in ready and closed until the fall.

It’s possible that some high-earners overspent on their homes based on standard benchmarks: For example, a $1.7 million home with a 20% down payment would cost $100,000 per year in mortgage payments. According to Bloomberg, that would account for 40% of a pre-tax income of $250,000 or more. Most financial experts recommend limiting home costs to 30% of income. However with the closing of their new build hanging in the air of uncertainty, will these buyers be patient and close on their dream home? Lot’s of questions that not even the best data resources can answer.

A 40-year high in inflation is prompting many Americans to reassess their financial goals. Food, housing, fuel, and other basic necessities are all seeing increases in price due to the current rate of inflation, which stands at 8.3 percent.

According to a new BMO Harris Bank research, 25 percent of Americans are postponing retirement because of inflation. One in three people who earn $250,000 a year say they’re living paycheck to paycheck, according to a survey from and LendingClub.

It’s becoming increasingly common for people to use their savings accounts as inflation rises, according to a BMO Harris Bank survey. The survey indicated that 36% of Americans have already lost money due to inflation.

As of this month, the National Association of REALTORS annual ®’s survey found that the average American consumer is spending $500 more per month on living expenditures than they did a year ago.

In a research by BMO Harris, consumers reaching retirement age said they are limiting their dining out, shopping, and driving habits because of rising costs. One asset management business, Schroders, found that only 22% of Americans believe they have enough money saved for a decent retirement, down from 26% a year earlier. Among the poll participants, more than half predicted that they will have less than $500,000 in savings when they retire. Most respondents, however, settled on a median goal of $1.1 million for their retirement savings.

As BMO Harris Bank’s head of customer strategy Paul Dilda explains: “Consumers must think differently about their finances in an inflationary environment.” BMO Harris Bank is a Chicago-based institution with locations throughout the Midwest and West Coast.

Dilda asserts that inflation is having a particularly negative impact on the nation’s younger citizens.
As a result, significant purchases like a home and a car may strain their budgets even more, he says.

Source: BMO Real Financial Progress Index, National Association of Realtors, FORTUNE June 1st 2022, Personal Finance-Retirement, Motley Fool, “More Than a Third of 250K Earners Live Paycheck-to-Paycheck. By daily Upside June 1 2022 at 9:00PM

You’ve already used a VA loan to purchase a home. Now, you may be wondering if you are eligible for a second VA loan. The answer is yes, but you should know how your entitlement benefit works, what your financing cost will be, and a variety of other concerns before applying.

What is the maximum number of VA loans you can have? VA loans are available to you if you have residual entitlement (more on that below). Some of the most common situations that necessitate an additional VA loan include:

To acquire a second house with a VA loan, you must first sell the first one, re-establish your entitlement, and then apply for a new VA loan.

If you sell each house and move, you can have as many VA loans as you desire for the rest of your life.

You move from one VA debt to another by refinancing your current loan.

At the same time, you may be the beneficiary of more than one VA loan for distinct properties.

Using a VA loan several times can be done in a variety of ways.

Your VA eligibility can be restored if you sell your existing home.

To take advantage of another VA loan, you don’t always have to sell your home or relocate.

With a VA streamline refinance, you can lower your interest rate and monthly payment by refinancing into a new VA loan.

VA cash-out refinance loans need extra documentation but allow you to access the equity in your property.

This is the third option,

It involves taking out two VA loans for two separate properties at once.

There are times when an active-duty member obtains a Permanent Change of Station (PCS) order, and the VA lender will need to authorize numerous loans.

Basically, you’ll have to demonstrate that you have the financial resources to repay both loans simultaneously.

The benefits of a VA mortgage

To qualify for a VA loan, a borrower must meet the VA’s loan eligibility requirements.

This helps you figure out how much money you can borrow before you must put down a deposit. VA loans with lower interest rates, no down payment, and more lenient eligibility requirements are offered by lenders because of the protection afforded to veterans.

In 2020, the Department of Veterans Affairs (VA) abolished loan limits for veterans with full entitlement.

When it comes to partial entitlement, things get a little more complicated. Either 36,000 dollars or 25 percent of the loan amount up to the conforming loan limit commonly serves as the starting point for entitlement calculations.

Currently, $647,200 is the cap in most sections of the country, although in some markets, up to $970,800, the limit is in effect. A bonus of 25% of the $647,200 maximum is yours as a result.

An example., you have a $200,000 loan, which means that 25% of your entitlement is now being spent. You’ve decided to take out two VA loans now. You’ve already tapped into $50,000 of your quota for the year.

A bonus entitlement of $161,800 (25 percent of the conforming limit) now exists, but you’ll need to deduct $50,000 before claiming the bonus. In this case, you have $111,800 in entitlement for the second loan.

There is no limit to how much you can get, however. You may acquire a $447,200 loan from a VA-approved lender because the VA pledges to pay the lender a quarter of that amount if you default.

If you have full entitlement, there is no limit to the VA loan amount, and if you meet the lender’s requirements, you won’t have to pay a down payment if you qualify.

Call the VA at 877-827-702 to speak with a home loan agent if you have any outstanding entitlement inquiries.

Customers can contact the company’s customer care department between the hours of 8am and 6pm Eastern Standard Time, Monday through Friday.

Getting a second VA loan is a simple process.

Getting a second VA loan is likely to feel very much like getting your first VA loan. The following is a step-by-step breakdown of the process:

Request a copy of your eligibility certificate.

As a result, lenders will know if you are eligible for a VA loan, and it will also assist you determine how much of your entitlement benefit is available for usage.

You can acquire it via your regional service center or through your benefits portal.

Your discharge papers may also be necessary.

Consider your options before deciding.

Buying a new house may necessitate selling your current residence to maximize your entitlements.

Decide what’s more essential to you: more money or less work if you refinance.

A VA IRRRL or a cash-out refinance may be better options if you’re just thinking about refinancing your mortgage.

Make sure your finances are in order before you begin.

Even though the Veterans Administration does not need a minimum credit score, VA lenders often do. It’s important to check your credit record and pay off any outstanding debts before applying for a second loan to show that you can afford your new monthly mortgage payments.

Buying a home vs. renting based on eligibility

Why not consider renting your current residence while you apply for a VA loan to purchase a new one?

If, for example, you’re stationed elsewhere but don’t want to sell your current property, this could happen.”

David Reischer, an attorney in New York City, argues that in this instance, “you decide to rent out your existing house and purchase another one.” Only one restriction applies: You can’t rent out your primary residence and then buy a comparable-sized home nearby.

To accommodate a growing family, the second home would either have to be a larger residence or be located in a different neighborhood.

For the second VA loan, “you would not be able to use any of that rental income to lessen your debt-to-income ratio,”

That rental income may, however, help you qualify for a second VA loan by reducing your mortgage payment.”  A second VA loan’s effect on the cost of borrowing

It’s impossible to avoid the funding fee on a VA loan; you may end up paying more for it on your second loan. The funding charge is 3.6 percent if your down payment is less than 5% of the purchase price on your second VA loan (and any subsequent ones).

However, if you’re able to put down more than 5% or 10% of the purchase price, the funding charge drops to 1.65% and 1.40%, respectively.

It is possible to reclaim your VA mortgage benefits

Remember that you have an entitlement limit, but if you sell your property and pay off the VA loan in full, you can get your entitlement back. Loan repayment or refinancing doesn’t remove the entitlement amount from your residence; it just removes it from the property’s equity.

Fortunately, there is an exception to the VA’s must-sell rule: You can request a one-time restoration of your benefit.

Assume that the buyer of your property for sale is a veteran who assumes your existing VA mortgage. In this case, you can ask this person to substitute their entitlement for the same amount of entitlement that you originally used. In one case study, says that if they agree, possible the original entitlement will be restored.

Your entitlement to buy the house will be held hostage until the new owner fully repays the loan if they don’t agree.

Forever losing your eligibility for a VA loan.

It’s possible that you’ll be permanently disqualified from receiving a VA loan. It’s possible that the lender will be forced to refund the VA if you fail to make payments on your VA loan and your house is foreclosed and sold for less than you owe.

When the VA makes a loan payment to the lender, the amount is removed from your entitlement, and you can’t get it back.

This is also true in a short sale, where your home is sold for less than what you owe.

The one-time restoration of entitlement benefit is not available in the case of short sales or foreclosures; thus you cannot use it.

I have two VA loan specialist I can refer you to help clarify additional questions. Please call me (Dan Swing) at 904-671-9225

Is another large collapse in real estate on the horizon? Given all the headlines about a possible recession, rising inflation, significant interest rate increases, and the stock market sell-off, where are we headed? The news may be better than most people expect, say two of America’s top real estate economists.

Contributing data in this blog, comes from Leslie Appleton Young Chief economist for the California Association of Realtors and John Tuccillo the former chief economist for the Florida Association of Realtors, and Inman staff writer Bernice Ross. Young & Tuccillo, present their views on what lies ahead for the real estate market. They both agree that this is an unprecedented situation.

What to expect as we look forward to the second half of 2022 and beyond.

Here’s what Appleton-Young and Tuccillo say is ahead in the Real Estate Market! 

Inflation is expected to slow down. Inflation was 8.3 percent in April, down from 8.5% in March. However, supply restrictions are steadily easing. Prior to settling back down, interest rates may rise more. Inflationary pressures mean that we won’t see mortgage rates fall below 3% any time soon.

The war in Ukraine, China’s lockdown, and the persistent energy supply issues are still major wild cards in the global economy. In order to return to our pre-war state, it will probably take us at least two years. Inflation expectations are routinely surveyed by the New York Fed. People’s expectations are what fuel inflation.

According to recent polls, most people believe that inflation would be 6.3% by 2022, which is a decrease of 2% from now. Even so, that’s much beyond the Fed’s 2% target, which is likely to prompt an overreaction from the central bank.

New York Fed poll results show a modest increase in consumers’ three-year expectations, which had previously been low but are now slightly raised at 3.9%. For the Federal Reserve, there is some support for a return to Paul Volcker’s era of low interest rates.

To combat inflation, Volcker raised interest rates and reduced employment. Like the pandemic, there is a price to lower inflation, and the burden falls more heavily on low- and middle-income families. It’s a balancing act for the Fed, which has two goals: low prices and low unemployment.

The economy will continue to grow at a moderate pace, and the unemployment rate is expected to remain stable. Over the remainder of the year, job creation is expected to continue.

It’s predicted the Fed will raise interest rates to a maximum of 6%. An continuing shortage of supplies and construction personnel is preventing the building industry from keeping up with current demand.

Because local regulations aren’t loosening any time soon, we’ll have to deal with them for a while. Despite the current increase in interest rates discouraging purchasers, buyers will return to the market when rates drop, say to 4.5%.

The markets can turn on a dime or perform a gradual squeeze. One of the issues we’re dealing with right now is that.

Final takeaways!

Appleton-Young reiterated the importance of the housing market in building inter generational wealth, saving and having a strong asset. 

That goal is getting further and further away for many people in this market. We must get more people on the ladder to home ownership by building smaller and more affordable housing and loosening up on overly restrictive zoning. 

Tuccillo’s final takeaway is that all market conditions may not be stormy as once thought.: 

But they will be very interesting. Over the next 18 months to two years, we’re not going to see a collapse. I don’t believe we will see stagflation. I just think that every day, there will be something else to worry us. And we’ll be worried, and the markets will be skittish, and the housing market will be skittish. But if you look at the underlying long-term trends and fundamentals, we’re fine.

I respect and believe the analysis presented in this article today, but the Biden Administration’s actions to reduce housing costs may completely muddy the waters with additional consequences. We have measures in place to assist with the challenges we face, and I believe America will right itself! In my opinion, burdening America with more debt service without renewable sources of replenishment will only delay recovery. Let’s see how America handles this before enacting legislation that will only delay recovery!

I’ve written several articles on why we have no risk of a Real Estate Market Bubble popping. Here is some new data to support my convictions.

Owning a home has grown to be a crucial part of the American dream. Over 86% of buyers feel that owning a home is still part of the American dream, according to a new National Association of Realtors survey.

Less than half of Americans owned a home prior to the 1950s. The GI Bill, on the other hand, allowed many returning veterans to buy a house following World War II. There has been an increase in the percentage of homeowners in the United States since then, reaching a current level of 65.5 percent.
Since then, home values have continued to rise as a result of the strong demand for homeownership.
The following graph shows the increase in property prices since World War II ended:

This graph illustrates that only during the housing boom and recession of 2006-2008 did home values fall dramatically. You can see a similarity between the present price surge and the price spike that occurred before to 2006. That may cause some people to worry that we’re on the verge of a repeat of the housing bubble’s collapse. Let’s take a look at the past and present to see if we can allay some of those fears.
What triggered the Great Recession of the 1990s?

Foreclosures deluged the market in 2006. As a result, property values plummeted. Foreclosures were caused by two factors: As a result of buyers not being properly eligible for their mortgages, a greater number of homes were lost to foreclosure. Many homeowners took advantage of their home’s equity.
When prices fell, they ended up in a precarious position (where the home was worth less than the mortgage on the house).

Many of these homeowners decided to leave their houses, which resulted in a rise in foreclosures.
This further impacted the value of the homes in the immediate area. For years, the same thing happened. Why the Real Estate Market in the United States Is Changing The current market is very different from the one we saw 15 years ago for the following two reasons:

Homeownership has never been more in demand than it is today (Not Artificially Generated) By lowering their lending requirements and making it easy for anyone to qualify for either a home loan or a refinance in the years leading up to 2006, banks created a false demand. Mortgage lenders have raised the bar significantly for first-time buyers and those refinancing their homes. The amount of risk that banks were willing to assume, according to data from the Urban Institute,

Challenge my observation and this data? Please respond, love to hear your views!

A picture of two palm trees from underneath their branches, with a tall building in the bottom-left background.

May 17, 2022

Florida is the place to be! Jacksonville will be in the top five, soon enough! Florida has five of the hottest commercial real estate metro markets in the first quarter: Orlando, Miami, Palm Beach Fort Lauderdale, and Fort Myers, according to new research from the National Association of REALTORS®.

NAR’s Commercial Real Estate Market Conditions Index is calculated by factoring in 25 variables that reflect a metro area’s economic conditions, demographics, and employment, such as job growth, wage increases, and population growth, as well as market conditions on vacancy rates, absorption, rent growth, cap rates, and more.

Overall, the South boasts the most booming commercial markets, with 11 of the top markets.

NAR’s index identified the following 16 markets as the hottest in commercial real estate in the first quarter. (Learn more about each of these markets at NAR’s Economists’ Outlook blog.)

  • Orlando-Kissimmee-Sanford, Fla.
  • Miami-Miami Beach-Kendall, Fla.
  • West Palm Beach-Boca Raton-Delray Beach, Fla.
  • Fort Lauderdale-Pompano Beach-Deerfield Beach, Fla.
  • Fort Myers, Fla.
  • Savannah, Ga.
  • Austin, Texas
  • Boston-Cambridge-Nashua, Mass.
  • Riverside-San Bernardino-Ontario (Inland Empire), Calif.
  • Atlanta-Sandy Springs-Roswell, Ga.
  • Asheville, N.C.
  • Las Vegas-Henderson-Paradise, Nev.
  • Bend-Redmond, Ore.
  • Charleston-North Charleston, S.C.
  • Nashville-Davidson-Murfreesboro-Franklin, Tenn.
  • Provo-Orem, Utah

In February, home prices saw the strongest annual gains on record, which, when combined with a sharp rise in mortgage rates, made it the most difficult to buy a home in fifteen years!

The report from Black Knight shows that home prices rose again in February, even as interest rates kept rising. This is despite the fact that home prices rose 19.6% from a year ago, even though interest rates kept going up.

Top 10 markets for annual home price appreciation

  1. Tampa, Florida (33.2 percent)
  2. Austin, Texas (33.0 percent)
  3. Raleigh, North Carolina (32.8 percent)
  4. Phoenix, Arizona, (32.0 percent)
  5. Nashville, Tennessee (31.5 percent)
  6. Jacksonville, Florida (29.5 percent)
  7. Orlando, Florida (28.6 percent)
  8. Las Vegas, Nevada (28.6 percent)
  9. Miami, Florida (27.9 percent)
  10. San Diego, California (27.3 percent)

Tampa, Jacksonville, Orlando, and Miami were all in Florida, where four of the top 10 fastest-growing cities were. But Black Knight said that the affordability crisis is worse in western coastal markets. People in Los Angeles, San Jose, San Diego, and San Francisco now have to pay more than half of the median income each month to pay for an average-priced home (50.9 percent). From 1995 to 2003, U.S. home buyers only had to spend 25.1 percent of the average income on mortgage payments for the average-priced home. That’s now 29.1% for the whole country in March.

National payment-to-income ratio

Share of median income needed to make the monthly principal and interest payment on the purchase of the average-priced home using a 20 percent down 30-year fixed rate mortgage at the prevailing interest rate. Source: Black Knight Mortgage Monitor.

The company called Black Knight said that 82 of the 100 largest U.S. markets are now less affordable than their long-term benchmarks, up from just six at first. When payment-to-income ratios rise above 21%, that usually helps to slow down the housing market, but it’s not always true.

It’s still growing, even though it’s the most affordable in 15 years, Black Knight said. Researchers at the Federal Reserve Bank of Dallas said last week that rising home prices may have caused investors to be “fearful of missing out,” which may have led to a price correction.

Distressed properties haven’t filled the gap in the inventory.

Some experts had thought that many people who put their homes on the market would sell them.

Black Knight says that so far, about 925,000 of the 8.1 million homeowners who were in forbearance have put their homes on the market, which is a lot. During the pandemic, that led to 40,000 sales a month. But those sales haven’t filled the inventory gap, and they’ve been going down in recent months.

Status of loans in forbearance as of March 22, 2022. Source: Black Knight Mortgage Monitor.

Once forbearance programs were over and mortgage payments were put on hold, people who had their mortgage payments put on hold might put their homes up for sale.

About 744,000 loans were still in forbearance as of March 22. Another 404,000 homeowners who had their forbearance programs end were delinquent on their loans and looking into “loss mitigation” options with their lenders, like mortgage modifications, to avoid foreclosure.

Some 272,000 people, most of whom were already behind on their payments before the pandemic, are still behind on their payments even though they’ve tried both forbearance and loss mitigation.

In the last month, 74,000 more homeowners have been put into foreclosure, which is 6% more than a month ago. The number of foreclosure starts fell to 25,000, which is below the level before the housing crisis.

Mortgage delinquencies rose by 1.8 percent in February, but the national rate of delinquency stayed close to pre-pandemic levels, even though the rate of delinquency rose. People have expectations of taking advantage of this potential Distressed market, however the data and the value of real estate far overrides any delinquency rates that could plague the market!

  • According to the Black Knight HPI, home prices rose 1.84% in February – nearly four times the 25-year average for the month – and the 14th month of the pandemic to see greater than 1% monthly growth
  • The average home has now increased in value by more than 34% since February 2020, with appreciation continuing to reaccelerate after a brief slowdown last fall
  • Each of the 100 largest U.S. markets experienced double-digit annual home price growth in February 2022, with three-quarters of those markets seeing continued acceleration of appreciation
  • Home price growth is reaccelerating even as interest rates continue to climb, with rates rising nearly one-third of a percent in February and more than 1.25% since the start of the year through late March
  • As a result, affordability is now at its lowest point on record outside of 2004-2007, with the monthly principal and interest (P&I) payment for the average-priced home purchase up $329 (+24%) year-to-date
  • It now takes 29.1% of the median household income to make that P&I payment, up from 19.3% just 15 months ago and a full 4 percentage points more than the 1995-2003 long-term average
  • 82 of the 100 largest U.S. markets are now less affordable than their long-term benchmarks, up from six at the start of the pandemic
  • In recent years, a payment-to-income ratio above 21% has worked to cool the housing market, but record-low inventory continues to fuel growth even in the face of the tightest affordability in 15 years

JACKSONVILLE, Fla. – April 4, 2022 – Today, the Data & Analytics division of Black Knight, Inc. (NYSE:BKI) released its latest Mortgage Monitor Report, based upon the company’s industry-leading mortgage, real estate and public records datasets. This month’s report examines the continuation of record-breaking home price growth – even with interest rates rising sharply – and the mounting affordability pressures resulting from these competing dynamics. According to Black Knight Data & Analytics President Ben Graboske, February 2022 saw the largest annual home price gains on record.

“Home prices grew by 1.84% in February – nearly four times the 25-year average for the month – and they did so while interest rates continued to climb throughout the month,” said Graboske. “The month’s 19.6% year-over-year growth marked the highest annual rate of appreciation on record, with the average home having now increased in value by more than 34% since February 2020, just prior to the pandemic. After a brief cooling last fall, appreciation has been reaccelerating for the last four months. Indeed, a full three-quarters of the 100 largest U.S. markets – all 100 of which registered double-digit annual appreciation in February, it should be noted – are seeing reacceleration of home price growth. And that is all while interest rates climbed nearly one-third of a percent in February and are now up more than 1.25% since the start of the year.

“This combination of accelerating growth and sharply rising interest rates has resulted in the tightest affordability in 15 years. In fact, outside of the skewed 2004-2007 market, the 29.1% of median income now required to make the P&I payment on the average-priced home bought with 20% down is the highest share in 25 years. Entering the year, a prospective homebuyer who could budget a $1,700 monthly P&I payment – roughly the amount required to buy the average home today, excluding taxes and insurance – could afford a $497,000 house. With Freddie Mac reporting the average 30-year rate at 4.42% on March 24, that same borrower can now afford less than $425,000. The average P&I payment has increased 24%, or approximately $329 per month, while at the same time, the average homebuyer’s buying power has dropped by 15%. In the recent past, a payment-to-income ratio above 21% has worked to cool the housing market and regulate prices, but today’s record-low inventory continues to fuel significant growth even in the face of the tightest affordability in 15 years.”

As the current inventory crisis is key to these unprecedented housing market conditions, this month’s Mortgage Monitor also looks at what many had thought might serve as a release valve to the current shortage – namely potentially hundreds of thousands of homeowners coming out of forbearance listing their homes for sale as a resolution. The report finds that, of the 8.1 million homeowners who had been in forbearance at some point during the pandemic, there have been 2.3 million (28%) liquidations thus far. Of these, 925,000 have paid off their loans in full through the sale of their home. While this has worked out to an average of 40,000 such sales per month during the pandemic, it has not filled the inventory gap and has been trending downward in recent months. Less than 750,000 loans remain in active forbearance, with another 400,000 that are no longer in forbearance but still involved in active loss mitigation efforts. Recent post-forbearance liquidations have leaned more heavily toward cash-out refinances, with homeowners perhaps seeking to reset themselves financially.

About the Mortgage Monitor

The Data & Analytics division of Black Knight manages the nation’s leading repository of loan-level residential mortgage data and performance information covering the majority of the overall market, including tens of millions of loans across the spectrum of credit products and more than 160 million historical records. The combined insight of the Black Knight HPI and Collateral Analytics’ home price and real estate data provides one of the most complete, accurate and timely measures of home prices available, covering 95% of U.S. residential properties down to the ZIP-code level. In addition, the company maintains one of the most robust public property records databases available, covering 99.9% of the U.S. population and households from more than 3,100 counties.

Black Knight’s research experts carefully analyze this data to produce a summary supplemented by dozens of charts and graphs that reflect trend and point-in-time observations for the monthly Mortgage Monitor Report. To review the full report, visit:

About Black Knight

Black Knight, Inc. (NYSE:BKI) is an award-winning software, data and analytics company that drives innovation in the mortgage lending and servicing and real estate industries, as well as the capital and secondary markets. Businesses leverage our robust, integrated solutions across the entire homeownership life cycle to help retain existing customers, gain new customers, mitigate risk and operate more effectively.

Studying 100 markets, the paper from the College of Business at Florida Atlantic University analyzed the results. It comes as no surprise that housing demand rose substantially in 2021, with homes across the country selling for much more than previous data would suggest.

Buyers fleeing pricey coastal cities like New York and San Francisco, according to the study, are important contributors to the surge in Florida and elsewhere. Strong sellers markets have also been produced by rising demand and a limited supply.

Eight Florida markets rank among the top 50 nationally in a residential real estate category that, while lucrative for sellers, it doesn’t set well for the long term. The data point? Highest premium paid on an average home sale.

Business Observer March 3. 2022

Note these are averages, and not specifically noted, and some may say included in the Jacksonville area. Ponte Vedra, and Ponte Vedra Beach, Florida where “The Players” tournament and “Nocatee” an extremely unique and one of the top twelve sought after communities in the nation! Has it’s own impressive data.

Naples Florida boasts that the Median Listing home price $590,000 up 31% Median home sold price: $545,000! Where as Nocatee Florida Median Listing home price in February 2021 $585,000 and February 2022 sold price is $790,000, approximately a 35% increase. Yes it’s true the St. John’s County Florida is a hot spot, shall I say an independent “Bubble in Northeast Florida” sustainable by their infrastructure, and rarely included separately in data completed by many major resources.

Note Boise, Idaho has seen the highest premium paid on an average home sale, according to Florida Atlantic University’s College of Business, with buyers paying a 78.4% premium over the expected home price.

February 25, 2022

With housing inventory at an all-time low, contract signings decreased 5.7% month over month in January—the third consecutive month for a drop, the National Association of REALTORS® reported Friday. NAR’s Pending Home Sales Index, a forward-looking indicator of home sales based on contract signings, is down 9.5% compared to a year earlier. All four major regions of the U.S. posted annual declines in activity. “Buyers are still having a difficult time finding a home,” says NAR Chief Economist Lawrence Yun.

Yun says home buyers also are contending with escalating home prices and rising mortgage rates, which have increased by more than a full percentage point over the last six months, according to Freddie Mac. “Given the situation in the market—mortgages, home costs, and inventory—it would not be surprising to see a retreat in housing demand,” Yun says.

NAR predicts economic conditions could be volatile in the coming months as the Federal Reserve ends its asset purchase program in March, which could drive up interest rates. Also, Russia’s conflict with Ukraine likely will lead to a crisis in global oil supply and further accelerate inflation, NAR notes. That said, “there’s also the possibility that investors may flee toward safer U.S. Treasury bonds, which may result in temporary short-term relief to interest rates,”Lawrence Yun Chief Economist and oversees the Research group at the NATIONAL ASSOCIATION OF REALTORS®