This week’s real estate reports found that most millennials, and a large chunk of potential home buyers, don’t know about closing costs; foreclosure rates in South Florida continue to fall; and compared to last year, residential and commercial construction contracts awarded this year have increased.
Two in three millennials who plan to own a home are unaware of closing costs
The largest generation in U.S. history is mostly unaware of closing costs, according to a report released Wednesday.
ClosingCorp surveyed 1,000 adults and found that two-thirds of millennials, or those between the ages of 18 and 34, were unaware of closing costs. Most home buyers learn about closing costs through their Realtors, according to the survey, more than 30 percent of the adults surveyed were “not very” or “not at all” aware of closing costs.
Closing costs, incurred by the buyer or seller, typically equal 2 to 5 percent of the total purchase price of a home.
Like other major life events, millennials wait longer than previous generations to buy a house.
“This study emphasizes the need to better educate millennials, and really all consumers in general, on the real estate closing process. While interest rates are often the driving force in initiating a real estate transaction, the Realtor, lender, title and other settlement fees also have a significant impact on the down payment and cash outflow from the borrower perspective,” ClosingCorp CEO Brian Benson said in a press release. “Not understanding how everything is related can be a real impediment for first-time homebuyers who want to get into the market.”
Foreclosure rates in South Florida continue declining
Foreclosure rates continue to decline in Miami-Dade, according to a CoreLogic report released Thursday.
In Miami-Miami Beach-Kendall, the foreclosure rate was 4.38 percent for January, a decrease from 8.22 percent in January 2014. The mortgage delinquency rate also decreased to about 10 percent of all mortgage loans, compared to nearly 15 percent in January of last year. Foreclosure activity in South Florida was higher than the national foreclosure rate, which was 1.46 percent for January 2015.
Construction contracts awarded in February
Contracts awarded for commercial construction saw a 30 percent increase in February from the month before — rounding out to more than $306 million for nonresidential building, according to Dodge Data & Analytics.
Residential construction saw a 9 percent decrease in contracts awarded in February from the month before — bringing the residential total to nearly $485 million.
On a year-over-year basis, the percentage of contracts awarded increased in both sectors: 50 percent for commercial construction and 4 percent for residential.
Earlier this week: Sunshine State ranks 22nd worst state to retire in, and single-family home sales on the rise