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84 STATE OF AFFAIRS: SOUTH » Florida RANK: 2 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate JANUARY 2014 3.20% 6.99% 6.99% YEAR AGO 3.88% 11.42% 11.42% YEAR-OVER-YEAR CHANGE -17.5% -38.8% -38.8% Top County WASHINGTON COUNTY 90+ Day Foreclosure Delinquency Rate Rate JANUARY 2014 3.85% 11.66% YEAR AGO 4.59% 12.85% YEAR-OVER-YEAR CHANGE -16.1% -9.2% Top Core-Based Statistical Area ARCADIA, FL 90+ Day Foreclosure Delinquency Rate Rate JANUARY 2014 3.82% 10.48% YEAR AGO 5.46% 15.97% YEAR-OVER-YEAR CHANGE -30.0% -34.3% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the January 2014 foreclosure rate. All fi gures are rounded to the nearest decimal. The unemployment rate refl ects preliminary January 2014 fi gures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. Florida Adriana M Montes, MBA Florida Dreams Realty Group adriana@FloridaDreamsRealty.com Cell 321 689 6258 www.fl oridadreamsrealty.com MEMBER IN THE NEWS Increased Inventory and Prices Help Florida Housing Market Florida's housing market experienced higher median prices, more new listings, and fewer days on the market in February, ac- cording to the latest housing data released by Florida Realtors. A stable inventory helped closed sales reach a statewide total of 15,826, a 1.5 percent increase from the previous year. "With a diminishing number of distressed properties listed for sale, the return of more traditional housing market conditions con- tinues to spark sellers' interest," said Florida Realtors President Sherri Meadows. "State- wide, new listings for single-family homes in February rose 11.6 percent year-over-year, while new townhouse-condo listings rose 4.2 percent." e median sales price in Florida for single-family existing homes in February was $165,000, up 10 percent from February 2013, according to data from the Florida Realtors Industry Data and Analysis department. According to the National Association of Realtors, the median sales price in January was $188,900, higher than Florida's median sales price. "e majority of results for the residential market paint a picture of a normal growing market," said Florida Realtors chief econo- mist Dr. John Tuccillo. "e weaker results in sales for both single-family homes and townhouses and condos are solely the result of plummeting short sales. is is actually a good sign since short sales are falling because prices are rising, reducing the number of homes that fall into the potential short sales category." Inventory was at a 5.7-months' supply in February for single-family homes and had a 6.1-months' supply of townhouse-condo properties, according to Florida Realtors. Were Mortgages Lost from Tight Credit Restrictions? A new study by the Urban Institute calls for "expanding the credit box" in order to promote not only a housing recovery, but an overall economic recovery as well. e report estimated that "1.22 million fewer purchase mortgages were made in 2012 than would have been the case had credit availability remained at 2001 levels." e report, "Where Have All the Loans Gone? e Impact of Credit Availability on Mortgage Volume," reported that in 2001, 4.93 million first lien mortgages originated for home purchases. "e number of originations rose to 6.03 million in 2005 and dropped to 2.74 million in 2012. is represents a 44.4 percent decline since 2001 and a 54.5 percent drop from the peak volume of 2005," the report said. e loss of mortgages not only affects the housing recovery, but also supplemental busi- nesses like landscaping, furnishings, renova- tions, and other consumer spending related to owning a home are slowed, affecting overall economic recovery. e report argues that lower sales activity is only partially responsible for the drop in mortgage volume. Sales volume was 6.25 million units in 2001. In 2005, sales volume was 8.36 million units, dropping to 5.01 million units in 2012, a 20 percent decrease from 2001. Another factor leading to a decrease of new home purchases was an increase of investor activity in the housing market, rising from 17.8 percent in 2001 to 39.5 percent in 2012. "[W]e can largely explain the drop in originations by the concurrent decline in home sales and the increase in the all-cash share," the report said. An increase in foreclosures, nearly 7 mil- lion, creates a situation where foreclosed-up- on borrowers must wait at least three to five years to qualify for a new mortgage, accord- ing to the Urban Institute report. e large volume of renters with a limited availability of credit to purchase a home only exacerbates purchases by investors paying cash. e report found that borrowers looking to purchase a home with credit scores in the middle tier (660–750) and lower tier (sub-660) declined 46 percent and nearly 70 percent, respectively, from 2001 to 2012. An estimated 273,000 to 1.2 million loans were not originated due to limited credit availability. e report commented, "e truth is somewhere between these estimates, but likely closer to the upper bound because many prospective borrowers with FICO scores well above 660 are affected by the tight credit box and credit overlays." Race also played a factor in the decline of loan originations. "Comparing 2001 to 2012, the number of purchase loans to African-American and Hispanic borrowers declined by 55 and 45 percent, respectively. In contrast, purchase loans to non-Hispanic whites and Asians dropped 41 and 15 percent, respectively," the report said. Florida was the hardest-hit state, with a 61 percent drop in purchase loans. e report credits the drop in purchase loans to Florida's larger overhang of fore- closed properties. "Other Sand States such as California, Arizona, and Nevada also

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