Today’s market once-in-lifetime opportunity
WASHINGTON – Nov. 30, 2011 – The monthly cost of owning a home is more affordable now than in the past 15 years, and is less expensive than renting in numerous cities, according to The Wall Street Journal’s third-quarter survey.
Low home prices mixed with low mortgage rates – hovering at 4 percent or lower – create an appealing buyer’s market, analysts say. For example, buyers today have a 77 percent increase in their borrowing power compared to 1991, according to Dan Green, a loan officer with Waterstone Mortgage in Cincinnati. He says that in 1991 a $1,700 mortgage payment allowed a borrower to take out a $200,000 mortgage; today, at current interest rates, the homebuyer can get a $350,000 loan for that same monthly mortgage payment.
In 12 our of 28 cities tracked by The Wall Street Journal, monthly mortgage payments on a median-priced home – including taxes and insurance – were lower than the average rent levels.
In Atlanta, owning was the most favorable compared to renting. The monthly rent on a median-priced home there was $539 during the third quarter (with a 20 percent downpayment) compared to the average asking rent, which averaged $840, according to data provided by Marcus & Millichap.
Nationwide, apartment rents are expected to rise by about 4 percent this year, which may make the owning vs. renting picture tilt even higher, according to some analysts.
Despite the appealing housing picture for homebuyers, some continue to stay on the sidelines, unable to sell their current home, qualify for a mortgage due to the tighter credit requirements or keep a steady job, housing experts say.
Source: “Stronger Lure for Prospective Home Buyers,” The Wall Street Journal (Nov. 26, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
MIAMI DOWNTOWN"S BEST VIEW
Thursday, December 1, 2011
Saturday, November 19, 2011
Home Market sees a sliver of good news
Home market sees a sliver of good news
WASHINGTON – Nov. 18, 2011 – The share of borrowers falling behind on home loans dropped in the third quarter, and building permits for single-family homes climbed in October to their highest level in 10 months, new data show.
The reports bring “some of the most solid, relatively good news” that the housing sector has seen in some time, said Jed Kolko, chief economist for real estate website Trulia.
The Mortgage Bankers Association said Thursday that the share of mortgage borrowers who have missed at least one payment – but are not yet in foreclosure – fell to 8 percent in the third quarter from 8.4 percent in the second quarter.
The share of borrowers more than 30 days behind but less than 60 days late fell the most, to a four-year low of 3.2 percent from 3.5 percent in the second quarter.
That drop suggests that fewer borrowers are falling behind for the first time, which will reduce foreclosures years from now.
Still, 4.2 million borrowers are more than 90 days behind on their mortgages or are already in foreclosure. Most of those borrowers will lose their homes to foreclosure or other distressed sales in the coming years.
That will continue to put pressure on home prices, said Paul Dales, economist at Capital Economics. He expects U.S. home prices, down about 4 percent from last year, to stay flat next year.
“We’re moving in the right direction, but we’re still well above normal” for troubled loans, said Michael Fratantoni, MBA’s vice president of research and economics.
He says the number of new delinquencies should continue to decline if job growth continues.
Home building is also well below normal, even with the stronger October showing.
Housing starts slipped slightly in October from September to an annual rate of 628,000, the Commerce Department said Thursday. That’s about half the pace of long-term trends leading up to the housing bubble.
Single-family starts were up 3.9 percent from September. Permits, which are a better indicator of future activity, rose 5.1 percent for single-family homes and 24 percent for multifamily units, the Commerce Department said.
The October results point to a single-family market that’s “finally getting off the mat” and a multifamily segment that’s making “small strides,” said Patrick Newport, economist at IHS Global Insight. Still, single-family home starts and permits are likely to set record lows this year, Newport says.
© Copyright 2011 USA TODAY, a division of Gannett Co. Inc., Julie Schmit
The reports bring “some of the most solid, relatively good news” that the housing sector has seen in some time, said Jed Kolko, chief economist for real estate website Trulia.
The Mortgage Bankers Association said Thursday that the share of mortgage borrowers who have missed at least one payment – but are not yet in foreclosure – fell to 8 percent in the third quarter from 8.4 percent in the second quarter.
The share of borrowers more than 30 days behind but less than 60 days late fell the most, to a four-year low of 3.2 percent from 3.5 percent in the second quarter.
That drop suggests that fewer borrowers are falling behind for the first time, which will reduce foreclosures years from now.
Still, 4.2 million borrowers are more than 90 days behind on their mortgages or are already in foreclosure. Most of those borrowers will lose their homes to foreclosure or other distressed sales in the coming years.
That will continue to put pressure on home prices, said Paul Dales, economist at Capital Economics. He expects U.S. home prices, down about 4 percent from last year, to stay flat next year.
“We’re moving in the right direction, but we’re still well above normal” for troubled loans, said Michael Fratantoni, MBA’s vice president of research and economics.
He says the number of new delinquencies should continue to decline if job growth continues.
Home building is also well below normal, even with the stronger October showing.
Housing starts slipped slightly in October from September to an annual rate of 628,000, the Commerce Department said Thursday. That’s about half the pace of long-term trends leading up to the housing bubble.
Single-family starts were up 3.9 percent from September. Permits, which are a better indicator of future activity, rose 5.1 percent for single-family homes and 24 percent for multifamily units, the Commerce Department said.
The October results point to a single-family market that’s “finally getting off the mat” and a multifamily segment that’s making “small strides,” said Patrick Newport, economist at IHS Global Insight. Still, single-family home starts and permits are likely to set record lows this year, Newport says.
© Copyright 2011 USA TODAY, a division of Gannett Co. Inc., Julie Schmit
Friday, October 28, 2011
BARGAINS ABOUND!!
Bargains abound: What are buyers waiting for?
NEW YORK – Oct. 28, 2011 – With low home prices and ultra-low interest rates, the housing market now offers “perhaps the best deals of a generation,” notes a recent article by Bloomberg Businessweek.
Since the housing boom of 2006, home prices have fallen about 31 percent. Also, mortgage rates have been hovering at record lows for the past few weeks – in the 4 percent range or even lower on 30-year fixed-rate mortgages, according to Freddie Mac’s mortgage market survey.
“It’s hard to see the possibility of losing on a home purchase right now, with these mortgage rates,” says economist Dean Baker. “Prices may go lower, but not by much.”
The article notes the following scenario: Buying a $300,000 home with a 4 percent mortgage rate and a 20 percent down payment would mean a $1,145 monthly payment. The Mortgage Bankers Association recently predicted that home prices may fall another 3.5 percent by mid-2012, but mortgage rates will increase by a half-point. Under that same loan scenario, a home would sell for $289,000 while the monthly mortgage bill would be $1,171 – only a $26 difference.
For those who can qualify for a mortgage, “playing the waiting game” won’t result in much gain, Nariman Behravesh, chief economist at IHS in Englewood, Colo., told Bloomberg Businessweek.
Source: “Crazy Home Deals Await the Creditworthy,” Bloomberg Businessweek (Oct. 24, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
NEW YORK – Oct. 28, 2011 – With low home prices and ultra-low interest rates, the housing market now offers “perhaps the best deals of a generation,” notes a recent article by Bloomberg Businessweek.
Since the housing boom of 2006, home prices have fallen about 31 percent. Also, mortgage rates have been hovering at record lows for the past few weeks – in the 4 percent range or even lower on 30-year fixed-rate mortgages, according to Freddie Mac’s mortgage market survey.
“It’s hard to see the possibility of losing on a home purchase right now, with these mortgage rates,” says economist Dean Baker. “Prices may go lower, but not by much.”
The article notes the following scenario: Buying a $300,000 home with a 4 percent mortgage rate and a 20 percent down payment would mean a $1,145 monthly payment. The Mortgage Bankers Association recently predicted that home prices may fall another 3.5 percent by mid-2012, but mortgage rates will increase by a half-point. Under that same loan scenario, a home would sell for $289,000 while the monthly mortgage bill would be $1,171 – only a $26 difference.
For those who can qualify for a mortgage, “playing the waiting game” won’t result in much gain, Nariman Behravesh, chief economist at IHS in Englewood, Colo., told Bloomberg Businessweek.
Source: “Crazy Home Deals Await the Creditworthy,” Bloomberg Businessweek (Oct. 24, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Tuesday, October 18, 2011
Top 10 Reasons To Own Rather Than Rent
Top 10 reasons to own rather than rent
WOODLAND HILLS, Calif. – Oct. 17, 2011 – In an era of foreclosures, buyers focus on financial reasons for purchasing, but ownership has emotional rewards too. A California condo developer, the Met Warner Center, put together the following list – but it applies from Florida to Alaska.
Top 10 reasons to own rather than rent
1. You own it: With no landlord, you make the decisions.
2. You deduct it: Mortgage interest, property taxes and some costs involved with buying a home can be deducted from federal income taxes.
3. Interest rates: The cost to borrow mortgage money is at an all-time low. If you’re going to buy, this is the time to jump into the market.
4. You invest in it: Rent money is gone forever. Mortgage payments build home equity ownership interests.
5. You save for the future: Home equity is a ready-made savings plan. Sell it and you can make up to $250,000 cash without owing any federal income tax on the profit.
6. You can predict expenses: Unlike rent, a fixed-mortgage payment doesn’t get more expensive over time.
7. You pick it: Choose from different neighborhoods, styles and price ranges.
8. You create it: Decorate, renovate, get a pet or paint the walls whatever color you want – it belongs to you.
9. You live in a neighborhood: You and your neighbors take pride in the local schools, roads and more – and you work together to build a friendly community.
10. You spend money on yourself: When you buy a chandelier or hardwood floor or kitchen cabinet, you’re spending hard-earned money on yourself and building your equity at the same time.
© 2011 Florida Realtors®
WOODLAND HILLS, Calif. – Oct. 17, 2011 – In an era of foreclosures, buyers focus on financial reasons for purchasing, but ownership has emotional rewards too. A California condo developer, the Met Warner Center, put together the following list – but it applies from Florida to Alaska.
Top 10 reasons to own rather than rent
1. You own it: With no landlord, you make the decisions.
2. You deduct it: Mortgage interest, property taxes and some costs involved with buying a home can be deducted from federal income taxes.
3. Interest rates: The cost to borrow mortgage money is at an all-time low. If you’re going to buy, this is the time to jump into the market.
4. You invest in it: Rent money is gone forever. Mortgage payments build home equity ownership interests.
5. You save for the future: Home equity is a ready-made savings plan. Sell it and you can make up to $250,000 cash without owing any federal income tax on the profit.
6. You can predict expenses: Unlike rent, a fixed-mortgage payment doesn’t get more expensive over time.
7. You pick it: Choose from different neighborhoods, styles and price ranges.
8. You create it: Decorate, renovate, get a pet or paint the walls whatever color you want – it belongs to you.
9. You live in a neighborhood: You and your neighbors take pride in the local schools, roads and more – and you work together to build a friendly community.
10. You spend money on yourself: When you buy a chandelier or hardwood floor or kitchen cabinet, you’re spending hard-earned money on yourself and building your equity at the same time.
© 2011 Florida Realtors®
Wednesday, October 12, 2011
Housing Market
National outlook impacts housing market
WASHINGTON – Oct. 12, 2011 – American consumers pay close attention to economic news and what policymakers say, and they continue to link their personal financial outlook to events occurring nationally. As a result, Fannie Mae’s September National Housing Survey finds most consumers still pessimistic about the economy, home prices and household finances.
“Despite a decline in negative economic headlines during September … consumers continue to demonstrate very negative attitudes,” says Doug Duncan, vice president and chief economist of Fannie Mae. “At the same time, the share of consumers expecting mortgage rates to go up dropped sharply to the lowest level we have recorded. The lack of a sense of urgency to buy homes … coupled with general pessimism regarding their own personal finances and the economy, bodes poorly for the recovery of the housing market.”
Survey highlights
Homeownership and renting
• Only 33 percent of Americans say that mortgage rates will go up in the next 12 months (down 12 percentage points since August – the lowest number recorded in Fannie Mae’s monthly tracking).
• For the fourth month in a row, Americans expect home prices to decline over the next year. On average, Americans expect home prices to go down by 1.1 percent, the highest expected decline to date.
• Only 18 percent of respondents expect home prices to increase over the next 12 months, the lowest reported number to date in the National Housing Survey, while 25 percent say they expect home prices to decline (down by 2 percentage points since August).
• While 68 percent of Americans say it is a good time to buy a home (down 1 percentage point since last month), only 10 percent of those polled say it is a good time to sell one’s home (up by 1 percentage point since August).
• On average, Americans expect home rental prices to go up by 3.3 percent over the next year, down slightly from the expected increase of 3.5 percent observed in August.
• Despite continued consumer caution about taking on a large financial obligation to buy a home, 63 percent say they would buy their next home if they were going to move (up by 1 percentage point since August), while 32 percent of Americans say they would rent their next home (down 2 percentage points since last month).
The economy and household finances
• The number of Americans who expect their personal financial situation to worsen over the next year has decreased for the first time in four months (down from 22 percent in August to 19 percent in September).
• Seventy-seven percent say the economy is on the wrong track (down only 1 percentage point from last month), while only 16 percent think the economy is on the right track (the same as in August).
• Forty-three percent report significantly higher expenses compared to one year ago. This number has increased for five consecutive months, but the majority of respondents still say their household income has remained the same.
© 2011 Florida Realtors®
“Despite a decline in negative economic headlines during September … consumers continue to demonstrate very negative attitudes,” says Doug Duncan, vice president and chief economist of Fannie Mae. “At the same time, the share of consumers expecting mortgage rates to go up dropped sharply to the lowest level we have recorded. The lack of a sense of urgency to buy homes … coupled with general pessimism regarding their own personal finances and the economy, bodes poorly for the recovery of the housing market.”
Survey highlights
Homeownership and renting
• Only 33 percent of Americans say that mortgage rates will go up in the next 12 months (down 12 percentage points since August – the lowest number recorded in Fannie Mae’s monthly tracking).
• For the fourth month in a row, Americans expect home prices to decline over the next year. On average, Americans expect home prices to go down by 1.1 percent, the highest expected decline to date.
• Only 18 percent of respondents expect home prices to increase over the next 12 months, the lowest reported number to date in the National Housing Survey, while 25 percent say they expect home prices to decline (down by 2 percentage points since August).
• While 68 percent of Americans say it is a good time to buy a home (down 1 percentage point since last month), only 10 percent of those polled say it is a good time to sell one’s home (up by 1 percentage point since August).
• On average, Americans expect home rental prices to go up by 3.3 percent over the next year, down slightly from the expected increase of 3.5 percent observed in August.
• Despite continued consumer caution about taking on a large financial obligation to buy a home, 63 percent say they would buy their next home if they were going to move (up by 1 percentage point since August), while 32 percent of Americans say they would rent their next home (down 2 percentage points since last month).
The economy and household finances
• The number of Americans who expect their personal financial situation to worsen over the next year has decreased for the first time in four months (down from 22 percent in August to 19 percent in September).
• Seventy-seven percent say the economy is on the wrong track (down only 1 percentage point from last month), while only 16 percent think the economy is on the right track (the same as in August).
• Forty-three percent report significantly higher expenses compared to one year ago. This number has increased for five consecutive months, but the majority of respondents still say their household income has remained the same.
© 2011 Florida Realtors®
Tuesday, October 4, 2011
WHO IS YOUR NEXT COSTUMER??
Who’s your next customer?
ORLANDO, Fla. – Oct. 4, 2011 – Growth in the real estate sector in the coming years will be driven from several different directions.
The 2010 Census indicates that the median age of residents climbed to 40 or older in seven states. The Rust Belt states in the Midwest have the largest population of older adults, but other areas are seeing increases in the 55-to-64 demographic as well.
Experts say Baby Boomers – the first of whom turn 65 this year – are staying in the labor market longer and aging in place, and they continue to prefer homeownership to renting.
The number of Millennials (age 20 to 34) is also rising, and this population segment makes household creation decisions based on jobs but will likely rent for the next several years due to tight lending standards.
Minorities account for about 33 percent of the U.S. population, and the Census shows that Hispanics and Asians no longer congregate mainly in coastal and border areas. The Hispanic population is on the rise in Nashville, Tenn.; Greenville, S.C.; and Charlotte, N.C., while the Asian population is increasing in Orlando; Riverside, Calif.; and Phoenix. Experts say minorities tend to favor renting.
Meanwhile, the Census indicates that demand for office space will rise in the coming years as the number of office workers expands; and declines in household income have put a focus on “value shopping,” suggesting there will be more discount retailers leasing space in mainstream malls.
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
The 2010 Census indicates that the median age of residents climbed to 40 or older in seven states. The Rust Belt states in the Midwest have the largest population of older adults, but other areas are seeing increases in the 55-to-64 demographic as well.
Experts say Baby Boomers – the first of whom turn 65 this year – are staying in the labor market longer and aging in place, and they continue to prefer homeownership to renting.
The number of Millennials (age 20 to 34) is also rising, and this population segment makes household creation decisions based on jobs but will likely rent for the next several years due to tight lending standards.
Minorities account for about 33 percent of the U.S. population, and the Census shows that Hispanics and Asians no longer congregate mainly in coastal and border areas. The Hispanic population is on the rise in Nashville, Tenn.; Greenville, S.C.; and Charlotte, N.C., while the Asian population is increasing in Orlando; Riverside, Calif.; and Phoenix. Experts say minorities tend to favor renting.
Meanwhile, the Census indicates that demand for office space will rise in the coming years as the number of office workers expands; and declines in household income have put a focus on “value shopping,” suggesting there will be more discount retailers leasing space in mainstream malls.
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Friday, September 30, 2011
Economic Growth
Economic growth is small but welcome
McLEAN, Va. – Sept. 30, 2011 – After a steady stream of confidence-sapping news, investors and consumers welcomed slightly more upbeat data Thursday that suggest that the economy, while sluggish, is still in growth mode.
None of the fresh economic readings on growth, jobs and borrowing costs points to a sharp acceleration soon. But together, they indicate that a much-feared double-dip recession is not a certainty, economists say.
The government revised the nation’s economic growth for the April-to-June quarter to 1.3% from 1%. That tiny rise in GDP, while still far below the 3% to 4% growth rate considered healthy, was enough to boost hopes that the economy could avoid another recession.
“It’s good news but it’s not great news,” says Edward Yardeni, chief economist at Yardeni Research. “The news has been awful on so many fronts that any ray of sunshine is welcomed.”
Investors also got positive headlines on the European debt crisis. Germany approved changes that would bolster the firepower of the eurozone’s bailout fund, a key tool needed to help Greece avert a disorderly default and keep its debt woes from infecting other European countries and causing a global slowdown.
That helped fuel a rally on Wall Street. Stocks, on track for their worst quarterly loss since 2008, rose about 1%. More good economic news is needed for investors to feel confident enough to buy stocks and keep the rally going, says Chuck Carlson, CEO of Horizon Investment Services.
For the first time since early August, initial jobless claims fell below 400,000 last week. Claims fell by 37,000 to 391,000. Still, job creation must rise and the unemployment rate, now 9.1%, must fall for the economy to gain traction, says Mark Zandi, chief economist at Moody’s Analytics. “Either things improve, or we’re going to go into the soup,” he says.
Another potential plus came in the depressed housing market, where the average 30-year fixed-rate mortgage hit an all-time low of 4.01%, according to Freddie Mac. But despite the super-low rates, not all Americans will benefit, says Greg McBride, senior financial analyst at Bank-rate.com. The best rates are only available to those with good credit, proof of income and, if refinancing, plenty of equity in their home.
“Despite all the things we’ve been through – the Japanese earthquake, $4 gas, policy mistakes in Europe – we’re still growing,” Zandi says.
Copyright © 2011 USA TODAY, a division of Gannett Co. Inc., Adam Shell and John Waggoner.
None of the fresh economic readings on growth, jobs and borrowing costs points to a sharp acceleration soon. But together, they indicate that a much-feared double-dip recession is not a certainty, economists say.
The government revised the nation’s economic growth for the April-to-June quarter to 1.3% from 1%. That tiny rise in GDP, while still far below the 3% to 4% growth rate considered healthy, was enough to boost hopes that the economy could avoid another recession.
“It’s good news but it’s not great news,” says Edward Yardeni, chief economist at Yardeni Research. “The news has been awful on so many fronts that any ray of sunshine is welcomed.”
Investors also got positive headlines on the European debt crisis. Germany approved changes that would bolster the firepower of the eurozone’s bailout fund, a key tool needed to help Greece avert a disorderly default and keep its debt woes from infecting other European countries and causing a global slowdown.
That helped fuel a rally on Wall Street. Stocks, on track for their worst quarterly loss since 2008, rose about 1%. More good economic news is needed for investors to feel confident enough to buy stocks and keep the rally going, says Chuck Carlson, CEO of Horizon Investment Services.
For the first time since early August, initial jobless claims fell below 400,000 last week. Claims fell by 37,000 to 391,000. Still, job creation must rise and the unemployment rate, now 9.1%, must fall for the economy to gain traction, says Mark Zandi, chief economist at Moody’s Analytics. “Either things improve, or we’re going to go into the soup,” he says.
Another potential plus came in the depressed housing market, where the average 30-year fixed-rate mortgage hit an all-time low of 4.01%, according to Freddie Mac. But despite the super-low rates, not all Americans will benefit, says Greg McBride, senior financial analyst at Bank-rate.com. The best rates are only available to those with good credit, proof of income and, if refinancing, plenty of equity in their home.
“Despite all the things we’ve been through – the Japanese earthquake, $4 gas, policy mistakes in Europe – we’re still growing,” Zandi says.
Copyright © 2011 USA TODAY, a division of Gannett Co. Inc., Adam Shell and John Waggoner.
Tuesday, September 27, 2011
Home Prices rising in Florida
Home listing prices rising in Florida
ORLANDO, Fla. – Sept. 26, 2011 – Prices are rising in Florida.
Florida cities have had the largest year-over-year increases in average list prices, according to the latest real estate data from Realtor.com. Based on August data of 2.2 million listings in 146 markets, Florida cities make up nine of the top 10 places for highest year-over-year list price spikes.
Nationwide, the average list price is $320,325, up 2.36 percent year-over-year.
Here are the top 15 cities boasting the highest percentage of year-over-year increases in average list prices.
1. Miami
Average list price: $640,332
Year-over-year increase: 27.4%
2. Fort Myers-Cape Coral, Fla.
Average list price: $443,570
Year-over-year increase: 26.27%
3. Central-Fla. rural service area
Average list price: $405,809
Year-over-year increase: 19.41%
4. Punta Gorda, Fla.
Average list price: $267,066
Year-over-year increase: 16.37%
5. Macon, Ga.
Average list price: $193,520
Year-over-year increase: 15.98%
6. Sarasota-Bradenton, Fla.
Average list price: $466,785
Year-over-year increase: 15.86%
7. Naples, Fla.
Average list price: $713,087
Year-over-year increase: 15.13%
8. West Palm Beach-Boca Raton, Fla.
Average list price: $591,895
Year-over-year increase: 14.68%
9. Ocala, Fla.
Average list price: $193,360
Year-over-year increase: 12.07%
10. Lakeland-Winter Haven, Fla.
Average list price: $181,409
Year-over-year increase: 11.48%
11. Orlando, Fla.
Average list price: $319,419
Year-over-year increase: 10.56%
12. Portland-Vancouver, Ore.-Wash.
Average list price: $314,537
Year-over-year increase: 10.52%
13. Boise City, Idaho
Average list price: $212,588
Year-over-year increase: 10.43%
14. Springfield, Illinois
Average list price: $174,537
Year-over-year increase: 9.12%
15. Shreveport-Bossier City, La.
Average list price: $211,414
Year-over-year increase: 8.34%
Source: Melissa Dittmann Tracey, Realtor® Magazine Daily News
© 2011 Florida Realtors®
Florida cities have had the largest year-over-year increases in average list prices, according to the latest real estate data from Realtor.com. Based on August data of 2.2 million listings in 146 markets, Florida cities make up nine of the top 10 places for highest year-over-year list price spikes.
Nationwide, the average list price is $320,325, up 2.36 percent year-over-year.
Here are the top 15 cities boasting the highest percentage of year-over-year increases in average list prices.
1. Miami
Average list price: $640,332
Year-over-year increase: 27.4%
2. Fort Myers-Cape Coral, Fla.
Average list price: $443,570
Year-over-year increase: 26.27%
3. Central-Fla. rural service area
Average list price: $405,809
Year-over-year increase: 19.41%
4. Punta Gorda, Fla.
Average list price: $267,066
Year-over-year increase: 16.37%
5. Macon, Ga.
Average list price: $193,520
Year-over-year increase: 15.98%
6. Sarasota-Bradenton, Fla.
Average list price: $466,785
Year-over-year increase: 15.86%
7. Naples, Fla.
Average list price: $713,087
Year-over-year increase: 15.13%
8. West Palm Beach-Boca Raton, Fla.
Average list price: $591,895
Year-over-year increase: 14.68%
9. Ocala, Fla.
Average list price: $193,360
Year-over-year increase: 12.07%
10. Lakeland-Winter Haven, Fla.
Average list price: $181,409
Year-over-year increase: 11.48%
11. Orlando, Fla.
Average list price: $319,419
Year-over-year increase: 10.56%
12. Portland-Vancouver, Ore.-Wash.
Average list price: $314,537
Year-over-year increase: 10.52%
13. Boise City, Idaho
Average list price: $212,588
Year-over-year increase: 10.43%
14. Springfield, Illinois
Average list price: $174,537
Year-over-year increase: 9.12%
15. Shreveport-Bossier City, La.
Average list price: $211,414
Year-over-year increase: 8.34%
Source: Melissa Dittmann Tracey, Realtor® Magazine Daily News
© 2011 Florida Realtors®
Friday, September 16, 2011
FACEBOOK WANTS TO ATTRACT SMALL BUSINESSES
SEATTLE, Sept. 16, 2011 – Sheryl Sandberg wants to do for Facebook what she did for Google.
At Google, Sandberg served as vice president of global online sales and operations in a role that helped build the company’s money-gushing search-advertising business. Now, the chief operating officer at the world’s largest social network wants the same for Facebook. She envisions those small businesses that joined Google’s ad program spending their advertising bucks at the social-networking giant.
The advertising charge from Sandberg, a Fortune 50 listed (most powerful women in business) D.C. powerbroker, comes as the social network has swelled to some 750 million, representing an eye-popping advertising bonanza.
“My dream is really simple,” said Sandberg, 42, seated near a framed graffiti rendering of co-founder Mark Zuckerberg at Facebook’s headquarters here. “I think every small business should be using Facebook. We’re not going to stop until all of them are using it to grow their business.”
Next week, Facebook will unveil a plan to get small businesses hooked. The company plans to offer free $50 advertising credits for up to 200,000 small businesses. When a person clicks on an ad, there’s a set rate predetermined for that click through – 5 cents or 25 cents, for example – the advertiser has to pay. Facebook will pick up the tab for the first $50 of such ads delivered under its offer.
This may seem like small stuff, but it’s the core to an ad revenue strategy that could justify a monster IPO.
“Credits like that can go a long way,” she says. “For $50, most small businesses can target every single person they need to target at least once, and then they can grow their business from there.”
With Facebook, businesses can target their paid advertising with a precision not found in most other forms of advertising.
A wedding photographer, for instance, could advertise just to women in a specific ZIP code who list on Facebook that they are engaged. A movie chain could talk just to film fans.
Sandberg estimates that of the nation’s nearly 30 million small businesses, 9 million are using Facebook to speak to their customers, and “hundreds of thousands” are spending money on ad campaigns, as well.
While at Google, she used to say that about 50 percent of small businesses hadn’t bothered to make a website yet – a number she says is still in the 40 percent range.
It’s easier for small businesses to turn to Facebook, she says, because they don’t have to pay for building a site, and most people can make a Facebook page, or could learn within minutes.
Sandberg says Facebook allows businesses to interact with customers and create viral marketing campaigns. “Facebook takes word-of-mouth marketing and makes it work at scale.”
Greg Sterling, an analyst with Opus Research, says most small businesses resist using ad programs such as Facebook’s because they’re too busy running their business to devote the time.
“Facebook has multibillion (dollar) advertising potential,” he says. “But right now, small businesses don’t see the need for spending the money. They have their free page, and they’re happy with it.”
The credits will help, he says. “It gets people to at least try it.”
Sarah Loveland, owner of Daddies Board Shop, a skateboard shop in Portland, Ore., began using paid advertising with Facebook in 2010, in hopes of growing her business more quickly. She targeted fans of extreme sports and friends of those who ride skateboards and longboards. The result: She says her business shot up, and she attributes much of it to Facebook.
Small businesses could just continue with the free business pages, “but if you really want to grow, and reach a wider community, you need to have at least 10,000 fans,” says Loveland. “Once you’re there, you get tons of response every time you post something. You’re looked to as a valuable resource to the community, and sales really start to increase.”
Sandberg says the social-media giant has created 250,000 jobs – engineers, developers and others who work on Facebook-oriented projects and related social-media jobs at companies. Facebook has 3,000 employees.
“We feel really good about our contribution,” she says.
© Copyright 2011 USA TODAY, a division of Gannett Co. Inc., Jefferson Graham
At Google, Sandberg served as vice president of global online sales and operations in a role that helped build the company’s money-gushing search-advertising business. Now, the chief operating officer at the world’s largest social network wants the same for Facebook. She envisions those small businesses that joined Google’s ad program spending their advertising bucks at the social-networking giant.
The advertising charge from Sandberg, a Fortune 50 listed (most powerful women in business) D.C. powerbroker, comes as the social network has swelled to some 750 million, representing an eye-popping advertising bonanza.
“My dream is really simple,” said Sandberg, 42, seated near a framed graffiti rendering of co-founder Mark Zuckerberg at Facebook’s headquarters here. “I think every small business should be using Facebook. We’re not going to stop until all of them are using it to grow their business.”
Next week, Facebook will unveil a plan to get small businesses hooked. The company plans to offer free $50 advertising credits for up to 200,000 small businesses. When a person clicks on an ad, there’s a set rate predetermined for that click through – 5 cents or 25 cents, for example – the advertiser has to pay. Facebook will pick up the tab for the first $50 of such ads delivered under its offer.
This may seem like small stuff, but it’s the core to an ad revenue strategy that could justify a monster IPO.
“Credits like that can go a long way,” she says. “For $50, most small businesses can target every single person they need to target at least once, and then they can grow their business from there.”
With Facebook, businesses can target their paid advertising with a precision not found in most other forms of advertising.
A wedding photographer, for instance, could advertise just to women in a specific ZIP code who list on Facebook that they are engaged. A movie chain could talk just to film fans.
Sandberg estimates that of the nation’s nearly 30 million small businesses, 9 million are using Facebook to speak to their customers, and “hundreds of thousands” are spending money on ad campaigns, as well.
While at Google, she used to say that about 50 percent of small businesses hadn’t bothered to make a website yet – a number she says is still in the 40 percent range.
It’s easier for small businesses to turn to Facebook, she says, because they don’t have to pay for building a site, and most people can make a Facebook page, or could learn within minutes.
Sandberg says Facebook allows businesses to interact with customers and create viral marketing campaigns. “Facebook takes word-of-mouth marketing and makes it work at scale.”
Greg Sterling, an analyst with Opus Research, says most small businesses resist using ad programs such as Facebook’s because they’re too busy running their business to devote the time.
“Facebook has multibillion (dollar) advertising potential,” he says. “But right now, small businesses don’t see the need for spending the money. They have their free page, and they’re happy with it.”
The credits will help, he says. “It gets people to at least try it.”
Sarah Loveland, owner of Daddies Board Shop, a skateboard shop in Portland, Ore., began using paid advertising with Facebook in 2010, in hopes of growing her business more quickly. She targeted fans of extreme sports and friends of those who ride skateboards and longboards. The result: She says her business shot up, and she attributes much of it to Facebook.
Small businesses could just continue with the free business pages, “but if you really want to grow, and reach a wider community, you need to have at least 10,000 fans,” says Loveland. “Once you’re there, you get tons of response every time you post something. You’re looked to as a valuable resource to the community, and sales really start to increase.”
Sandberg says the social-media giant has created 250,000 jobs – engineers, developers and others who work on Facebook-oriented projects and related social-media jobs at companies. Facebook has 3,000 employees.
“We feel really good about our contribution,” she says.
© Copyright 2011 USA TODAY, a division of Gannett Co. Inc., Jefferson Graham
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