Singer Island, Florida – Weekly Condo Market Update: 08/19/2011

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Singer Island, Florida

There are 250 condos for resale on Singer Island; 7 condos are currently pending. Four condos sold within the past 7 days at an average 71% of list price after an average 559 days on the market.

The average rate for the 30-yr. fixed mortgage fell to its lowest level on records dating back to 1971.  The rate decreased to 4.15 percent this week from 4.32%; its previous low was 4.17% reached in November 2010.

The average 15-year fixed mortgage rate also fell to a new low at 3.36% down from 3.50% last week.  Last year at this time, the 30-year fixed-rate mortgage averaged 4.42 percent.

Few expect record-low rates to energize the depressed home market. Over the past year, the average rate on the 30-year fixed mortgage has been below 5 percent for all but two weeks. Yet prices and sales remain unhealthy and are holding back the overall economy.

Five years ago, the average 30-year fixed rate was near 6.5 percent. In 2000, it exceeded 8 percent.

Most homeowners are paying rates more than a full percentage point higher than the current average. The average rate on all outstanding mortgages is 5.3 percent, Freddie Mac said, citing data from the Bureau of Economic Analysis.

After previous recessions, housing accounted for 15 percent to 20 percent of overall economic growth. This time, in 2009 and 2010, housing contributed just 4 percent to the economy.

“The housing market is not going to turn around because of this, because it isn’t the mortgage rate that matters,” said Joel Naroff, head of Naroff Economic Advisors. Naroff blamed the “horrendous” process of qualifying for a mortgage despite tougher lending standards. He said trying to sell a home in many markets is just as difficult.

Many would-be buyers can’t take advantage of the low rates. The unemployment rate is 9.1 percent, few Americans are getting raises and many are struggling to shrink their debt loads.

Banks are also insisting on higher credit scores and larger downpayments for first-time buyers. Many repeat buyers have too little equity invested in their homes to qualify for loans. Others are too nervous about the economy or their job security to invest in a home.

Forty-seven percent of the mortgage industry experts polled by Bankrate.com expect the rates to remain steady over the next 30 to 45 days; while 33 percent predicting rates will increase and only 20% thinking rates will go lower.

For more information on specific condominium sales activity contact Jeannie at 561-889-6734 or email her at [email protected].

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