UF: Fla. commercial brokers optimistic about future

06/12/2015

60% of contracts have issues, but most close on time

WASHINGTON – June 10, 2015 – Two out of three real estate contracts in the U.S. (64 percent) close on time, even though Realtors report that most (60 percent) have some kind of issue along the way. For about one-third of all contracts, the issue impacts the closing date.

Realtors said a number off issues impacted their closing dates – or terminated the contract – in the latest Realtors Confidence Index Survey of more than 1,500 Realtors. Of the issues the cropped up, 26 percent identified a settlement delay, while 10 percent said they had a contract terminated prior to closing.

When asked about the issues that delayed closings, 12 percent of Realtors identified a financing issue; 8 percent had home inspection problems; and 7 percent had an appraisal concern. Three percent of Realtors identified an issue with buying/selling distressed property; titling and deed issues; or with contingencies stated in the contract.

"It is surprising that in a 'tight' and 'difficult' credit environment, only 12 percent of contracts that were reported to have settled or terminated had financing issues," economists at the National Association of Realtors report. "One explanation may be that potential home buyers are deciding to sit on the sidelines for now, so these buyers were not captured in the data."

Source:"64 Percent of Contracts Are Settled on Time," National Association of Realtors Economists' Outlook Blog (June 8, 2015)

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UF: Fla. commercial brokers optimistic about future

GAINESVILLE, Fla. – June 10, 2015 – Optimism is high in the Florida commercial real estate market among those in the business, according to the Survey of Emerging Market Conditions conducted quarterly by the Kelley A. Bergstrom Center for Real Estate Studies at the University of Florida's (UF) Warrington College of Business Administration.

UF's Commercial Real Estate Sentiment Index, an overview of respondents' opinions about their own businesses, improved to 7.45 out of 10 – its highest level since the third quarter of 2006.

Timothy S. Becker, director of the Bergstrom Center, attributed the upbeat outlook to continued improvement in the job market and growth in the tourism industry.

"Both factors have been positive for consumer confidence," Becker said.

The survey found that practitioners expected occupancy and rents across property types to remain stable in the next quarter.

Multifamily property occupancy continues to be positive, increasing at a rapid pace over the past few years. However, inventory increases from new construction, along with current capacity units, means this trend may level off soon.

Current capitalization rates have remained stable across most property types, though uncertainty over interest rates remains with certain property types. For now, however, low interest rates continue to drive capital to real estate.

Overall, respondents felt that despite uncertainties, Florida's economy and its real estate markets continue to improve. UF says that trend should hold true for the near future.

The survey included 97 participants representing 13 urban regions of the state and up to 15 property types. The UF Bergstrom Center for Real Estate Studies supports the UF real estate courses and degree programs housed within the Warrington College of Business Administration.

© 2015 Florida Realtors®

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