Tampa, Orlando, Jacksonville near top of ‘likely to move to in 2018’ list
ATTOM’s quarterly report looks at 36 metropolitan statistical areas (MSAs) with at least 500,000 single-family homes and condos using data collected from purchase loan applications on residential real estate transactions.
The Pre-Mover Housing Index is based on the ratio of homes with a “pre-mover” indicator compared to total single-family homes and condos in a given geography, indexed off the national average. An index above 100 is above the national average and indicates an above-average ratio of homes that will likely be sold in the next 90 days in a given market.
Among a broader set of 131 metro areas with at least 100,000 single family homes and condos, those posting the highest pre-mover index in Q2 2018 were Wilmington, N.C. (206); Colorado Springs, Colo. (178); and Manchester-Nashua, N.H. (172); followed by Chicago (168) and Washington, D.C. (166).
“A higher pre-mover index bodes well for local real estate agents, home improvement stores, moving companies and others that benefit from the halo effect of a home sale,” said Daren Blomquist, senior vice president at ATTOM Data Solutions.
“Meanwhile markets with a low pre-mover index likely have a scarcity of inventory available to buy or relatively weak demand from prospective buyers – or some combination of both – which is not optimal for businesses that rely on the home sale halo effect,” Blomquist adds.
ATTOM has a pre-mover heat map on its website that displays the likelihood of home sales by city.
States with the highest pre-mover index in the second quarter of 2018 – predictive of a high percentage of homeowners moving in the third quarter – were North Dakota (275), Illinois (193), Nevada (164), Virginia (163), and Colorado (147). Other states with a pre-mover index among the 10 highest in Q2 2018 were New Jersey (133), Florida (133), Delaware (130), Maryland (127), and Utah (124).
Florida cities ranked by pre-mover index ranking
Orlando-Kissimmee: 136
Jacksonville: 136
Tampa-St. Petersburg-Clearwater: 133
Lakeland-Winter Haven: 126
Ocala: 109
Port St. Lucie: 100
Palm Bay-Melbourne-Titusville: 95
Cape Coral-Fort Myers: 91
Deltona-Dayton Beach-Ormond Beach: 90
Bradenton-Sarasota-Venice: 87
Miami-Fort Lauderdale-Miami Beach: 85
Pensacola-Ferry Pass-Brent: 65
Fort Walton Beach-Crestview-Destin: 58
Naples-Marco Island: 53
© 2018 Florida Realtors®
Read the full article about cities likely to move to in 2018 on The Florida Realtors Website here: Cities likely to move to in 2018
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Florida Home Sales Price Gains 2017
2017 Ends with more Florida home sales price gains
“This past year, the still-tight inventory of homes for sale in Florida couldn’t meet growing buyer demand,” says2018 Florida Realtors President Christine Hansen, broker-owner with Century 21 Hansen Realty in Fort Lauderdale. “If supply could have kept pace, home sales likely would have been even stronger in 2017 – and of course, the state also felt the impact of Hurricane Irma that made landfall in the Keys on Sept. 10, 2017.
“Florida’s economy is growing, the jobs outlook remains strong and more people are moving to the Sunshine State. And while mortgage interest rates are rising, they are still at favorably low levels. All of these factors are positive signs for the state’s housing market in 2018.”
Statewide closed sales of existing single-family homes totaled 271,868 in 2017, up 1.2 percent compared to the 2016 figure, according to data from Florida Realtors research department in partnership with local Realtor boards/associations.
Florida Home Sales Price Gains 2017:
The statewide median sales price for single-family existing homes in 2017 was $237,500, up 8 percent from the previous year. New pending sales for existing single-family homes rose 0.1 percent in 2017 compared to 2016.
Looking at Florida’s year-to-year comparison for sales of townhouse-condos, a total of 111,088 units sold statewide in 2017, up 2.9 percent from 2016. The closed sales data reflected fewer short sales and foreclosures statewide in 2017 compared to the previous year: Short sales for condo-townhouse properties declined 37.6 percent and foreclosures dropped 49.2 percent; short sales for single-family homes dropped 36.9 percent while foreclosures declined 46.5 percent.
Another strong indicator for the Florida Home Sales Price Gains 2017:
The statewide median price for townhouse-condo properties in 2017 was $172,500, up 7.8 percent over the previous year. New pending sales for townhouse-condos for the year increased 2.3 percent compared to a year ago.
At the end of 2017 and also for 4Q 2017, inventory for single-family homes stood at a 3.6-months’ supply, while inventory for townhouse-condo properties was at a 5.6-months’ supply, according to Florida Realtors.
“Overall, 2017 was a strong year for single-family home resales in Florida,” says Florida Realtors Chief Economist Dr. Brad O’Connor. “New listings of existing homes priced between $200,000 and $600,000 were up in a significant way compared to 2016, but these properties were quickly absorbed thanks to strong buyer demand driven by Florida’s booming economy. As a result, mid-range inventory remained somewhat flat on a year-over-year basis, while the number of listings priced below $200,000 continued to decline dramatically.
“Annual sales growth in Florida’s resale market for single-family luxury homes nearly ground to a halt in 2016, but this segment experienced a decent uptick in sales in 2017. Fewer new listings and more realistic pricing expectations by sellers were likely contributors to this renewed growth. The housing shortage impacting Florida and the rest of the nation continues to be contained to the lower price tiers, whereas the opposite issue – an overabundance of listings – is having the opposite impact on many local luxury markets.”
The interest rate for a 30-year fixed-rate mortgage averaged 3.99 percent for 2017, up significantly from the previous year’s average of 3.65 percent, according to Freddie Mac.
Statewide closed sales of existing single-family homes totaled 63,436 in the fourth quarter of 2017, up 2 percent compared to the year-ago figure, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.
“The fourth quarter figures show that the vast majority of Florida’s local housing markets recovered quite quickly from Hurricane Irma,” O’Connor notes. “Closed sales were up year-over-year, and prices continued to climb as if nothing happened at all. Inventory continued to fall in the fourth quarter as well, so the longer-term trends in the housing market as of the beginning of 2017 appear to have remained in place at year’s end.”
The statewide median sales price for existing single-family homes for the quarter was $240,000, up 7.2 percent from 4Q 2016. New pending sales for existing single-family homes for the quarter rose 5.4 percent compared to a year ago, while new listings increased 4 percent.
Looking at Florida’s year-to-year comparison for sales of townhouse-condos, a total of 25,544 units sold statewide in 4Q 2017, up 4.7 percent compared to the same period a year earlier. The closed sales data reflected fewer short sales and foreclosures statewide in the fourth quarter compared to the same time a year ago: Short sales for condo-townhouse properties declined 24.9 percent and foreclosures dropped 41.8 percent; short sales for single-family homes dropped 34.4 percent and foreclosures declined 44.3 percent.
The statewide median price for townhouse-condo properties in 4Q 2017 was $175,000, up 6.6 percent over the previous year. New pending sales for townhouse-condos for the quarter increased 8.7 percent compared to a year ago, while new listings rose 6.8 percent.
To see the full statewide housing activity reports including this Florida Home Sales Price Gains 2017 report, go to Florida Realtors Research & Statistics section on floridarealtors.org.
Realtors also have access to local market stats (password protected) on Florida Realtors’ website.
© 2018 Florida Realtors®
Read the full article about Florida Home Sales Price Gains 2017 on The Florida Realtors Website here: The full FAR article
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Evaluating the housing market since the Great Recession
Evaluating the housing market since the Great Recession
Residential home prices began to peak in some parts of the country as early as 2005, according to the report. Home prices collapsed in 2007, when Wall Street began to back out of residential mortgage-backed securities. After falling 33 percent during the recession, prices in most markets have returned to peak levels, growing 51 percent nationally since bottoming out in March 2011.
The average home price is now 1 percent higher than it was at the peak in 2006, and the average year-over-year home equity gain was $14,888 in the third quarter of 2017. This indicates the housing market has widely recovered.
While the nation’s average home price has stabilized, not all of the 50 states are back to their pre-recession price levels. Nevada suffered the biggest drop during the recession, with a 60 percent peak-to-trough decline in home prices. Even after experiencing a 93 percent increase from its trough-to-current home price level, Nevada home prices are still 23 percent below the pre-recession peak, and 9 percent of mortgaged properties remained underwater in the third quarter of 2017.
Some states faired relatively well through the national housing downturn, with 10 posting peak-to-trough declines of less than 10 percent. North Dakota’s peak-to-trough decline was the smallest at 2 percent. Due in part to the energy boom, North Dakota home prices have risen 48 percent above the prior peak in July 2008.
Similarly, Nebraska and Iowa home prices both dropped by 5 percent during the recession. Nebraska now stands 27 percent higher than its lowest home price level during the recession, and Iowa is now 15 percent above its prior peak in 2006.
Evaluating the housing market since the Great Recession:
“Homeowners in the United States experienced a run-up in prices from the early 2000s to 2006, and then saw the trend reverse with steady declines through 2011,” said Dr. Frank Nothaft, chief economist for CoreLogic. “After reaching bottom in 2011, our national price index is up more than 50 percent. West Coast states, such as California, Washington and Oregon are seeing some of the largest trough-to-current growth rates in home prices.
“Greater demand and lower supply – as well as booming job markets – have given some of the hardest-hit housing markets a boost in home prices. Yet, many are still not back to pre-crash levels.”
Local job market dynamics and other factors helped determine the severity of the housing downturn at the regional level. Las Vegas, Miami and Chicago each arrived at their respective peaks at different times during the boom and experienced significant peak-to-trough home price declines during the recession. These markets have been slower to recover and their home prices are below their pre-recession peaks.
Other metro areas such as San Francisco and Denver, which both have technology sectors and low unemployment, have experienced consistent home price growth. In the third quarter of 2017, the average year-over-year equity gain in San Francisco and Denver was $73,217, and $22,102, respectively, and only 1 percent of homes in those markets remained underwater.
The data in this report represents home price activity reported through December 2017 and home equity data through the third quarter of 2017.
Evaluating housing market since the Great Recession, © 2018 Florida Realtors®
Read the full article “Evaluating the housing market since the Great Recession” on The Florida Realtors Website here:
Evaluating the housing market since the Great Recession
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Florida Home Sales Price Gains 2017
2017 Ends with more Florida home sales price gains
“This past year, the still-tight inventory of homes for sale in Florida couldn’t meet growing buyer demand,” says2018 Florida Realtors President Christine Hansen, broker-owner with Century 21 Hansen Realty in Fort Lauderdale. “If supply could have kept pace, home sales likely would have been even stronger in 2017 – and of course, the state also felt the impact of Hurricane Irma that made landfall in the Keys on Sept. 10, 2017.
“Florida’s economy is growing, the jobs outlook remains strong and more people are moving to the Sunshine State. And while mortgage interest rates are rising, they are still at favorably low levels. All of these factors are positive signs for the state’s housing market in 2018.”
Statewide closed sales of existing single-family homes totaled 271,868 in 2017, up 1.2 percent compared to the 2016 figure, according to data from Florida Realtors research department in partnership with local Realtor boards/associations.
Florida Home Sales Price Gains 2017:
The statewide median sales price for single-family existing homes in 2017 was $237,500, up 8 percent from the previous year. New pending sales for existing single-family homes rose 0.1 percent in 2017 compared to 2016.
Looking at Florida’s year-to-year comparison for sales of townhouse-condos, a total of 111,088 units sold statewide in 2017, up 2.9 percent from 2016. The closed sales data reflected fewer short sales and foreclosures statewide in 2017 compared to the previous year: Short sales for condo-townhouse properties declined 37.6 percent and foreclosures dropped 49.2 percent; short sales for single-family homes dropped 36.9 percent while foreclosures declined 46.5 percent.
Another strong indicator for the Florida Home Sales Price Gains 2017:
The statewide median price for townhouse-condo properties in 2017 was $172,500, up 7.8 percent over the previous year. New pending sales for townhouse-condos for the year increased 2.3 percent compared to a year ago.
At the end of 2017 and also for 4Q 2017, inventory for single-family homes stood at a 3.6-months’ supply, while inventory for townhouse-condo properties was at a 5.6-months’ supply, according to Florida Realtors.
“Overall, 2017 was a strong year for single-family home resales in Florida,” says Florida Realtors Chief Economist Dr. Brad O’Connor. “New listings of existing homes priced between $200,000 and $600,000 were up in a significant way compared to 2016, but these properties were quickly absorbed thanks to strong buyer demand driven by Florida’s booming economy. As a result, mid-range inventory remained somewhat flat on a year-over-year basis, while the number of listings priced below $200,000 continued to decline dramatically.
“Annual sales growth in Florida’s resale market for single-family luxury homes nearly ground to a halt in 2016, but this segment experienced a decent uptick in sales in 2017. Fewer new listings and more realistic pricing expectations by sellers were likely contributors to this renewed growth. The housing shortage impacting Florida and the rest of the nation continues to be contained to the lower price tiers, whereas the opposite issue – an overabundance of listings – is having the opposite impact on many local luxury markets.”
The interest rate for a 30-year fixed-rate mortgage averaged 3.99 percent for 2017, up significantly from the previous year’s average of 3.65 percent, according to Freddie Mac.
Statewide closed sales of existing single-family homes totaled 63,436 in the fourth quarter of 2017, up 2 percent compared to the year-ago figure, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.
“The fourth quarter figures show that the vast majority of Florida’s local housing markets recovered quite quickly from Hurricane Irma,” O’Connor notes. “Closed sales were up year-over-year, and prices continued to climb as if nothing happened at all. Inventory continued to fall in the fourth quarter as well, so the longer-term trends in the housing market as of the beginning of 2017 appear to have remained in place at year’s end.”
The statewide median sales price for existing single-family homes for the quarter was $240,000, up 7.2 percent from 4Q 2016. New pending sales for existing single-family homes for the quarter rose 5.4 percent compared to a year ago, while new listings increased 4 percent.
Looking at Florida’s year-to-year comparison for sales of townhouse-condos, a total of 25,544 units sold statewide in 4Q 2017, up 4.7 percent compared to the same period a year earlier. The closed sales data reflected fewer short sales and foreclosures statewide in the fourth quarter compared to the same time a year ago: Short sales for condo-townhouse properties declined 24.9 percent and foreclosures dropped 41.8 percent; short sales for single-family homes dropped 34.4 percent and foreclosures declined 44.3 percent.
The statewide median price for townhouse-condo properties in 4Q 2017 was $175,000, up 6.6 percent over the previous year. New pending sales for townhouse-condos for the quarter increased 8.7 percent compared to a year ago, while new listings rose 6.8 percent.
To see the full statewide housing activity reports including this Florida Home Sales Price Gains 2017 report, go to Florida Realtors Research & Statistics section on floridarealtors.org.
Realtors also have access to local market stats (password protected) on Florida Realtors’ website.
© 2018 Florida Realtors®
Read the full article about Florida Home Sales Price Gains 2017 on The Florida Realtors Website here: The full FAR article
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2017 December Housing Data Report
2017 December Housing Data Report
WASHINGTON (January 24, 2018) — The 2017 December Housing Data Report shows that existing-home sales subsided in most of the country in December, but 2017 as a whole edged up 1.1 percent and ended up being the best year for sales in 11 years, according to the National Association of Realtors®.
Total existing-home sales, (more here on NAR’s existing home sales post), which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 1.1 percent in 2017 to a 5.51 million sales pace and surpassed 2016 (5.45 million) as the highest since 2006 (6.48 million).
In December, existing-home sales slipped 3.6 percent to a seasonally adjusted annual rate of 5.57 million from a downwardly revised 5.78 million in November. After last month’s decline, sales are still 1.1 percent above a year ago.
Lawrence Yun, NAR chief economist, says the housing market performed remarkably well for the U.S. economy in 2017, with substantial wealth gains for homeowners and historically low distressed property sales. “Existing sales concluded the year on a softer note, but they were guided higher these last 12 months by a multi-year streak of exceptional job growth, which ignited buyer demand,” said Yun. “At the same time, market conditions were far from perfect. New listings struggled to keep up with what was sold very quickly, and buying became less affordable in a large swath of the country. These two factors ultimately muted what should have been a stronger sales pace.”
The information in this infographic is from the December 2017 Existing-Home Sales data.
2017 December Housing Data Report
Read the full article about the 2017 December Housing Data Report here:
The full NAR article
2017 November Housing Snapshot
2017 November Housing Data Snapshot
WASHINGTON (December 20, 2017) —
2017 November Housing Data Snapshot-
Existing-home sales surged for the third straight month in November and reached their strongest pace in almost 11 years, according to the National Association of Realtors®. All major regions except for the West saw a significant hike in sales activity last month.
Total existing-home sales1, https://www.nar.realtor/existing-home-sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, jumped 5.6 percent2 to a seasonally adjusted annual rate of 5.81 million in November from an upwardly revised 5.50 million in October. After last month’s increase, sales are 3.8 percent higher than a year ago and are at their strongest pace since December 2006 (6.42 million).
Lawrence Yun, NAR chief economist, says home sales in most of the country expanded at a tremendous clip in November. “Faster economic growth in recent quarters, the booming stock market and continuous job gains are fueling substantial demand for buying a home as 2017 comes to an end,” he said. “As evidenced by a subdued level of first-time buyers and increased share of cash buyers, move-up buyers with considerable down payments and those with cash made up a bulk of the sales activity last month. The odds of closing on a home are much better at the upper end of the market, where inventory conditions continue to be markedly better.”
The median existing-home price3 for all housing types in November was $248,000, up 5.8 percent from November 2016 ($234,400). November’s price increase marks the 69th straight month of year-over-year gains.
Total housing inventory4 at the end of November dropped 7.2 percent to 1.67 million existing homes available for sale, and is now 9.7 percent lower than a year ago (1.85 million) and has fallen year-over-year for 30 consecutive months. Unsold inventory is at a 3.4-month supply at the current sales pace, which is down from 4.0 months a year ago.
2017 November Housing Data Snapshot Infographic
October Housing Snapshot
2017 October Housing Data Snapshot
WASHINGTON (November 21, 2017) — Existing-home sales increased in October to their strongest pace since earlier this summer, but continual supply shortages led to fewer closings on an annual basis for the second straight month, according to the National Association of Realtors®.
Total existing-home sales, https://www.nar.realtor/existing-home-sales, which are completed transactions that include single-family homes, townhomes, condominiums and
co-ops, increased 2.0 percent to a seasonally adjusted annual rate of 5.48 million in October from a downwardly revised 5.37 million in September.
After last month’s increase, sales are at their strongest pace since June (5.51 million), but still remain 0.9 percent below a year ago.
2017 October Housing Data Snapshot Infographic
2017 June Housing Data Report
2017 June Housing Data Report
WASHINGTON (July 24, 2017) — Existing-home sales slipped in June as low supply kept homes selling at a near record pace but ultimately ended up muting overall activity, according to the National Association of Realtors®. Only the Midwest saw an increase in sales last month.
Total existing-home sales1, https://www.nar.realtor/topics/existing-home-sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, decreased 1.8 percent to a seasonally adjusted annual rate of 5.52 million in June from 5.62 million in May. Despite last month’s decline, June’s sales pace is 0.7 percent above a year ago, but is the second lowest of 2017 (February, 5.47 million).
The median existing-home price2 for all housing types in June was $263,800, up 6.5 percent from June 2016 ($247,600). Last month’s median sales price surpasses May as the new peak and is the 64th straight month of year-over-year gains.
Total housing inventory3 at the end of June declined 0.5 percent to 1.96 million existing homes available for sale, and is now 7.1 percent lower than a year ago (2.11 million) and has fallen year-over-year for 25 consecutive months. Unsold inventory is at a 4.3-month supply at the current sales pace, which is down from 4.6 months a year ago.
First-time buyers were 32 percent of sales in June, which is down from 33 percent both in May and a year ago. NAR’s 2016 Profile of Home Buyers and Sellers – released in late 20164 – revealed that the annual share of first-time buyers was 35 percent.
The information in this infographic is from June 2017 Existing-Home Sales data.
2017 June Housing Data Report
NAR Study: A Good Time to Buy
NAR study: Most in U.S. say it’s a good time to buy
WASHINGTON – July 13, 2016 – Despite lackluster economic growth and stark home-price appreciation in several parts of the country in recent months, roughly three-quarters of surveyed households still believe it’s a good time to buy a home – but there’s a considerable morale gap between homeowners and renters, according to the latest installment of the National Association of Realtors® (NAR) Housing Opportunities and Market Experience (HOME) survey.
The survey also found that roughly half of young adults with student debt are uncomfortable about taking on a mortgage.
In NAR’s second quarter HOME consumer survey, respondents were asked about their confidence in the U.S. economy and various questions about their housing expectations, including whether student debt is tempering their ability and appetite to take on mortgage debt.
NAR’s survey found that the share of homeowners and renters who believe it’s a good time to buy a home has held steady so far this year, with 80 percent of homeowners (82 percent in March) and 62 percent of renters (unchanged from last quarter) saying it’s a good time to buy. However, the share of renters who think so is down from 68 percent in December 2015, and those under 35 were the least confident.
Lawrence Yun, NAR chief economist, says the survey brings to focus the ongoing disparity in buyer confidence between current homeowners and renters.
“Existing-home prices surpassed their all-time peak this spring and have climbed on average over 5 percent nationally through the first five months of the year, and even faster in areas with severe supply shortages,” he says. “Most homeowners appear to realize that if they’re ready to sell, they’ll likely find a buyer rather quickly and be able to use the sizeable equity they’ve accumulated in recent years towards their next home purchase. Meanwhile, renters interested in buying continue to face minimal choices, strong competition and home prices growing faster than their incomes.
“Given these affordability pressures, it’s no surprise respondents earning over $100,000 and those living in the Midwest – the most affordable region of the country – are the most optimistic about buying right now,” says Yun.
This HOME survey also found that student debt is causing many potential homebuyers to be uneasy about taking on additional debt: Roughly two-thirds of non-homeowners and half of respondents under 35 with student debt said they aren’t comfortable also having a mortgage. Furthermore, of those with student debt, non-homeowners and younger adults were less likely to believe they’d be able to qualify for a mortgage if they applied.
“It’s becoming very evident from this survey and our research released last month that the financial and emotional impact of repaying student debt is contributing to a delay in purchasing a home for many would-be buyers,” adds Yun. “At a time of quickly rising rents, mortgage rates at all-time lows and increasing housing wealth, a lot of young adults in their prime buying years are struggling to enter the market and are ultimately missing out on the stability and wealth accumulation that owning a home can provide.”
Attitudes about U.S. economy, personal finances outlook mostly unchanged
About half of all households surveyed believe the economy is improving (49 percent), which is mostly unchanged since the inaugural HOME survey in December 2015. Renters, respondents living in urban areas, and those in the West were the most optimistic.
On the other hand, nearly two-thirds of those living in rural areas don’t believe the economy is improving.
When asked if they thought their personal financial situation would be better in six months, the latest survey reflected a little less optimism. The survey’s monthly Personal Financial Outlook Index of all households decreased slightly (to 57.7 in June) month-to-month (58.1 in March), but it’s unchanged from June 2015.
More believe it’s a good time to sell
With strong price growth prevalent in most of the country and homes selling at a quickened pace, more current homeowners (61 percent) believe it’s a good time to sell compared to the first quarter of this year (56 percent). Respondents in the West were again the most likely to think now is a good time to sell, but they’re also least likely to think it’s a good time to buy.
“More homeowners acknowledging this pent-up demand may perhaps mean we begin to see more supply come online in the near future,” adds Yun.
When asked about their outlook for home prices in their community in the next six months, almost all believe that prices will stay the same or rise (93 percent), which is consistent with last quarter (91 percent). Respondents from the West, those living in urban areas and renters are most likely to believe prices will go up in their communities.
© 2016 Florida Realtors®
Link to full article in the FL Realtor Magazine
Study: Gated community homes sell for more
BOCA RATON, Fla. – July 1, 2016 – Homes in gated communities command significantly higher prices – almost $30,000 on average – compared to similar homes in communities without a gate. However, gated neighborhoods’ additional amenities can also reduce sale prices because they bring maintenance costs that outweigh the benefits of the amenities, according to recent research published by the American Real Estate Society (ARES).
“This study provides clear evidence that homes in gated communities sell at a premium relative to comparable homes in non-gated communities,” says ARES Publication Director Ken Johnson, Ph.D., a real estate economist at Florida Atlantic University’s (FAU) College of Business and co-developer of the Beracha, Hardin and Johnson Buy vs. Rent Index.
The study examined 11 gated communities and a sample of matched non-gated properties, using a data set of housing sales in Shelby County, Tennessee. The researchers found that residential properties in gated communities command a noticeable price premium of approximately $30,000, most likely resulting from actual or perceived benefits associated with additional privacy, homeowner associations’ tighter controls on maintenance, home design and the added assurances against crime and other undesirable activities.
“Additional maintenance costs associated with these amenities often outweigh their benefits, and it appears that while a gate has value, additional neighborhood amenities do not always provide additional value,” says Mark A. Sunderman, Ph.D., University of Memphis.
So, what does all this mean to buyers and sellers?
“The long-held belief that gates add value is supported by the data, as long as the impact of the amenities is properly factored in,” Johnson says. “This should set buyers’ minds to rest as to whether or not they are actually receiving a boost in value when they purchase inside a gated community.”
© 2016 Florida Realtors®
This article on the Florida Realtors Website
