ORLANDO, FL – Florida’s housing market reported higher median prices and increased inventory (active listings) in December compared to a year ago, according to the latest housing data released by Florida Realtors. But, buyer uncertainty from rising mortgage rates and the federal government’s shutdown may have impacted home sales, which were lower than the level of sales a year ago. Sales of single-family homes statewide totaled 20,633 last month, down 9.9 percent compared to December 2017.

“Florida’s housing sector is continuing to show signs that inventory levels are finally easing in many local markets after being constrained for a long time,” said 2019 Florida Realtors President Eric Sain, a Realtor and district sales manager with Illustrated Properties in Palm Beach. “Improving inventory and interest rates that, though rising, remain historically low offer a excellent opportunity for homebuyers who have been waiting on the sidelines to work with a local Realtor to find their dream Florida home.”

In December, statewide median sales prices for both single-family homes and condo-townhouse properties increased year-over-year for the 84th consecutive month. The statewide median sales price for single-family existing homes was $255,000, up 4.2 percent from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $185,000, up 2.8 percent over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less. 

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in November 2018 was $260,500, up 5 percent from the previous year; the national median existing condo price was $236,400. In California, the statewide median sales price for single-family existing homes in November was $554,760; in Massachusetts, it was $395,000; in Colorado, it was $375,000; and in New York, it was $275,000.

Looking at Florida’s condo-townhouse market in December, statewide closed sales totaled 8,156, down 11.4 percent compared to a year ago. Closed sales data continued to show fewer small sales and foreclosures in November: Small sales for condo-townhouse properties declined 39.7 percent and foreclosures fell 33.7 percent year-to-year; while small sales for single-family homes dropped 49.8 percent and foreclosures fell 26.8 percent year-to-year. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

“Notably, this year-over-year decline in sales for December was felt across the nation, not just in Florida, which is evidence that interest rates played at least some role in dampening the number of closings,” said Florida Realtors Chief Economist Dr. Brad O’Connor. “Thirty-year fixed mortgage rates started to ramp up in September and had reached a multi-year high of close to 5 percent by mid-October, which is typically when financed sales closing in December go under contract.”

Interest rates likely will continue to play a role in determining the direction of Florida’s housing markets going forward, O’Conner said. He added, “Homebuyers considering sitting on the fence until prices come down might want to take note that we’re also likely to see significantly higher mortgage rates by that point. While there has been a slight softening in the pace of home price growth since mid-2018, there are currently no signs that Florida home values will experience any wholesale declines over the next year.”

Potential homebuyers should also note that Florida’s active listings – or inventory levels of for-sale homes –have been trending up across the state, according to O’Connor.

“Statewide, active listings of existing single-family homes have been on the rise since July, which has helped contribute to the softening of price growth, and they continued to climb in December,” he said. “At year’s end, inventory was up over 13 percent compared to the end of 2017. Importantly, inventory levels are now rising across most of the pricing spectrum, including in some of the more affordable ranges.”

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.64 percent in December 2018, up from the 3.95 percent averaged during the same month a year earlier.

To see the full statewide housing activity reports, go to Florida Realtors Media Center

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RALEIGH, NC – Officials of The Preiss Company (TPCO), one of the nation’s largest, privately-held, student housing owner-operators, in a joint venture with Nuveen Real Estate, the investment management arm of TIAA, one of the world’s largest real estate investment managers, announced the acquisition of the 525-bed Signature 1505. Serving more than 5,000 students in 17 properties throughout the Raleigh market, TPCO has been the largest off-campus provider of purpose-built student housing for North Carolina State University (NCSU) for over 20 years.

“Following our recent joint venture acquisition of The Estates at San Antonio, this marks our second deal in January,” said Adam Byrley, chief operating officer, TPCO. “Much of the diligent work we started last year looks likely to come to fruition over the coming months, and we project 2019 will be a record growth year for us. We look forward to expanding our relationships with best-in-class partners like Nuveen Real Estate as we pursue our aggressive growth goals.”

The student housing community offers several room configurations, including one-, two-, three- and four-bedroom apartments, all with private bed/bath suites. Each apartment provides upscale finishes, including granite countertops, stainless steel appliances, hardwood-style flooring and contemporary light fixtures. All suites also include a full-sized washer and dryer, modern furniture package and 50” Smart TV. Additional amenities include a resort-style pool, state-of-the-art fitness center and 24/7 study and conference areas. Located on Hillsborough Street adjacent to the YMCA, Signature 1505 is just a two-minute walk to NCSU and is close to the entertainment centers in Glenwood South and Cameron Village.

“Having just opened for the Fall 2018 semester, the Signature 1505 remains the newest student housing community for the Raleigh marketplace,” noted Donna Preiss, founder and CEO, TPCO. “With four additional properties in Raleigh, we are able to easily make economies of scale and systems for sharing best practices. We are familiar intimately with the market, and perhaps more importantly, we know and know what today’s student body requires to have a successful and fulfilling academic career.”

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ATLANTA, GA – TruAmerica Multifamily in partnership with Tokyu Land US Corporation has made its first investments in Georgia acquiring two Atlanta apartment communities in separate transactions totaling $127.35 million. 

Since entering the Southeast property markets in 2016, TruAmerica has focused its investments largely in Florida, where it has opened a regional office and built a sizeable portfolio of nearly 4,000 units in Orlando, Tampa, Fort Myers and Palm Beach.  Having developed the necessary infrastructure to manage a growing regional portfolio, the firm felt increasingly comfortable with its plans to enter new markets in 2019, according to TruAmerica Senior Managing Director of Acquisitions and Co-Chief Investment Officer Matthew Ferrari. 

“We look at new markets very strategically and cautiously, and the acquisition of Vinings Corner in Smyrna and The Prato at Midtown in Atlanta’s Ancient Fourth Ward was the right opportunity to enter the Georgia market and expand our footprint in the Southeast in a very meaningful way,” said Ferrari.   “We’ve been in the market for several months and the competition for well-located communities with value-add upside, has been extremely fierce.  In the end, the sellers were looking for high-quality bidders with the ability to do and close.”

Vinings Corner is a 360-unit community located at 2101 Paces Ferry Road SE in Smyrna and the broader Vinings/Cumberland submarket, one of Atlanta’s largest employment centers.  Built in 1983, Vinings Corner, which will be rebranded as Junction at Vinings, represents a right value add opportunity as only three percent of the apartment homes have been fully renovated. Anticipated upgrades to the one- and two-bedroom apartment homes include new appliances, stone countertops, cabinet faces and pulls, hard-surface flooring and upgraded plumbing and lighting fixtures.   TruAmerica also will implement modest upgrades to the exterior and common areas including the pool, fitness center and dog park. 

In a separate transaction, the TruAmerica-led joint venture also bought The Prato at Midtown, a 342-unit Class B property located at 400 Central Park Place, NE in the Ancient Fourth Ward, one of Atlanta’s fastest growing urban neighborhoods.   Taking advantage of economies of scale, TruAmerica will implement a capital improvement program similar to that of Vinings Corner, with interior and exterior renovations and upgrades. 

This is TruAmerica’s first joint venture with Tokyu Land US Corporation (TLUS), a subsidiary of Tokyu Land Corporation, one of the largest Japanese real estate firms.  TLUS focuses on real estate development and investment in major gateway cities in the U.S. 

Both acquisitions were leveraged with attractive 10-year financing from Freddie Mac arranged by Brian Eisendrath of CBRE Capital Markets, Inc. for Vinings Corner, and Trevor Fase and Russell Dey of Walker & Dunlop.  

Atlanta-based CBRE Southeast Multifamily, led by Vice Chairman Kevin Geiger marketed Vinings Corner on behalf of the seller.   Atlanta-based Jones Lang LaSalle Managing Director’s David Gutting and Derrick Bloom marketed Prato at Midtown on behalf of the seller. 

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