December sales were up around 25% from the prior month but down by about the same amount for January.
While some buyers feel the time is right, interest rates hovering around 5.25% to 5.5%, and a large inventory of homes including foreclosures and short sales, others still are concerned with the economy, possible job loss, and the thought that maybe we have not bottomed out on home values.
Speculation that rates could drop more is also a driving factor of the fence sitters.
Tuesday, January 27, 2009
Saturday, December 06, 2008
Monthly Sales Report
Sales of homes in the MLS for the tri-county area dropped for the third month in a row. Closings reported between 10-26-08 thru 11-25-08 totaled 2,088.
Almost half of the sales were under $150,000. That is almost twice the amount of homes sold at that price point during the same period last year and while prices have dropped dramatically, sales continue to mirror the previous years activity. Last year total sales during the same period totaled 1,886.
Almost half of the sales were under $150,000. That is almost twice the amount of homes sold at that price point during the same period last year and while prices have dropped dramatically, sales continue to mirror the previous years activity. Last year total sales during the same period totaled 1,886.
4.5% interest rates could spur home sales.
There is talk of reducing interest rates for homeowners to 4.5%. The plan is outlined below. The problem I see is buyers with great credit are still having trouble getting loans. Banks just don't want to lend. A lower interest rate could spur activity, but will they be able to secure the financing and actually buy???
Under a Treasury plan, lenders could sell newly issued mortgage-backed securities to the government provided the interest-rate on the loans collateralizing the securities was no higher than 4.5 percent. To pay for the plan, the Treasury would issue bonds at 3 percent, creating a 1.5-percent spread that it could use for buying the securities. Those securities would then be purchased by secondary mortgage market companies Fannie Mae and Freddie Mac, which are under federal conservatorship. To date, tens of thousands of Realtors have sent letters to their members of Congress asking for quick action to help housing, which is widely considered a crucial first step to a broader economic recovery. Some analysts have calculated that an interest-rate buydown could help as many as 2.5 million households.
Under a Treasury plan, lenders could sell newly issued mortgage-backed securities to the government provided the interest-rate on the loans collateralizing the securities was no higher than 4.5 percent. To pay for the plan, the Treasury would issue bonds at 3 percent, creating a 1.5-percent spread that it could use for buying the securities. Those securities would then be purchased by secondary mortgage market companies Fannie Mae and Freddie Mac, which are under federal conservatorship. To date, tens of thousands of Realtors have sent letters to their members of Congress asking for quick action to help housing, which is widely considered a crucial first step to a broader economic recovery. Some analysts have calculated that an interest-rate buydown could help as many as 2.5 million households.
Tuesday, November 11, 2008
Foreclosure news
Banks are stepping up their efforts to curtail losses from souring mortgages, with Citigroup Inc. becoming the latest institution to adopt initiatives aimed at helping at-risk borrowers remain in their homes.
With defaults mounting, lenders including JPMorgan Chase & Co. and Bank of America Corp. have become more aggressive about modifications to mortgage agreements. The government is also working on an ambitious plan to help around 3 million borrowers avoid foreclosure, but details have yet to be released.
More than 4 million American homeowners with a mortgage were at least one payment behind on their loans at the end of June, and 500,000 had started the foreclosure process, according to the most recent data from the Mortgage Bankers Association.
Citigroup announced late Monday that it won't initiate a foreclosure or complete a foreclosure sale on any eligible borrower who seeks to stay in a home if it is the borrower's principal residence, the homeowner is working in good faith with Citi and has sufficient income to make affordable mortgage payments.
With defaults mounting, lenders including JPMorgan Chase & Co. and Bank of America Corp. have become more aggressive about modifications to mortgage agreements. The government is also working on an ambitious plan to help around 3 million borrowers avoid foreclosure, but details have yet to be released.
More than 4 million American homeowners with a mortgage were at least one payment behind on their loans at the end of June, and 500,000 had started the foreclosure process, according to the most recent data from the Mortgage Bankers Association.
Citigroup announced late Monday that it won't initiate a foreclosure or complete a foreclosure sale on any eligible borrower who seeks to stay in a home if it is the borrower's principal residence, the homeowner is working in good faith with Citi and has sufficient income to make affordable mortgage payments.
Tuesday, October 28, 2008
Monthly Sales Report
Resales reported in the MLS for the past 30 days reflected a decline from the month prior. The decline was not substantial and was 11% higher than last years sales during the same time period.
Inventory remains steady. Approximately 38,000 active listings in the tri-county area.
The biggest change was home prices. 68% of the homes closed sold for under $200,000.
Good news for buyers, but not for the owners.
Inventory remains steady. Approximately 38,000 active listings in the tri-county area.
The biggest change was home prices. 68% of the homes closed sold for under $200,000.
Good news for buyers, but not for the owners.
Wednesday, October 22, 2008
Foreclose, Short Sale or Modify?????
Ever since the foreclosure/mortgage crisis began I have had clients ask .....
"Why won't the bank work with me and reduce my payment. The house isn't worth what I paid and they're going to loose more money by throwing me out!"
I agreed, and could tell them nothing that made any sense of it.
Here's a piece of an article I read......someone woke up I guess.
Maribel Carrillo is one of the new, happy-ending stories for bank regulators who hope to stem the foreclosure pandemic by modifying delinquent mortgages in bulk.
Carrillo, 32, lost her $150,000-a-year job managing a record label in Los Angeles earlier this year. With her family’s construction business sputtering, she and her husband soon fell behind on their home loan on their four-bedroom ranch home in Los Angeles. After missing three payments, the Carrillos owed $9,800 on their mortgage with IndyMac Bank. But after the Federal Deposit Insurance Corp. seized IndyMac, the bank agreed to modify Carrillo’s loan, dropping her monthly payment from about $3,000 to about $1,600 for five years. Under the FDIC’s orders, about 4,000 IndyMac borrowers have been given more affordable mortgages so far. By this weekend, the bank expects to have sent out more than 15,000 modification offers to borrowers, who are saving $430 a month on average.IndyMac’s efforts, which are designed to save the FDIC money by curbing losses on foreclosed homes, are being closely watched nationwide. In fact, Bank of America Corp. is taking a similar approach with newly acquired Countrywide Financial Corp. as part of an $8.4 billion, 12-state legal settlement reached this month.And now some Congressional Democrats and state officials say the FDIC’s approach should be replicated as the Treasury Department buys billions in troubled mortgage debt as part of a $700 billion financial industry bailout.“The country is in crisis,” said Iowa Attorney General Tom Miller. “This is something that everybody should do.”
"Why won't the bank work with me and reduce my payment. The house isn't worth what I paid and they're going to loose more money by throwing me out!"
I agreed, and could tell them nothing that made any sense of it.
Here's a piece of an article I read......someone woke up I guess.
Maribel Carrillo is one of the new, happy-ending stories for bank regulators who hope to stem the foreclosure pandemic by modifying delinquent mortgages in bulk.
Carrillo, 32, lost her $150,000-a-year job managing a record label in Los Angeles earlier this year. With her family’s construction business sputtering, she and her husband soon fell behind on their home loan on their four-bedroom ranch home in Los Angeles. After missing three payments, the Carrillos owed $9,800 on their mortgage with IndyMac Bank. But after the Federal Deposit Insurance Corp. seized IndyMac, the bank agreed to modify Carrillo’s loan, dropping her monthly payment from about $3,000 to about $1,600 for five years. Under the FDIC’s orders, about 4,000 IndyMac borrowers have been given more affordable mortgages so far. By this weekend, the bank expects to have sent out more than 15,000 modification offers to borrowers, who are saving $430 a month on average.IndyMac’s efforts, which are designed to save the FDIC money by curbing losses on foreclosed homes, are being closely watched nationwide. In fact, Bank of America Corp. is taking a similar approach with newly acquired Countrywide Financial Corp. as part of an $8.4 billion, 12-state legal settlement reached this month.And now some Congressional Democrats and state officials say the FDIC’s approach should be replicated as the Treasury Department buys billions in troubled mortgage debt as part of a $700 billion financial industry bailout.“The country is in crisis,” said Iowa Attorney General Tom Miller. “This is something that everybody should do.”
Friday, October 03, 2008
Florida Real Estate Troubles
Long before the debate over a federal bailout of the nation's financial institutions took center stage, sagging property values and soaring mortgage payments triggered in part by adjustable interest rates and increasing property taxes threatened to force thousands of Floridians into foreclosure. According to RealtyTrac, Florida's 44,000 foreclosure filings in August trailed only California's in the number of properties affected. California had 101,724 filings.
Florida experienced a home-building boom earlier this decade. There were lots and lots of people who were buying and selling real estate. The home ownership rate went from 66% to 72% between 2000 and 2006.
All of a sudden, the population growth slowed. The housing sales slowed. And the construction workers left, and so, we've been in a recession since roughly May of 2007. Florida lost nearly 100,000 jobs last year.
Florida experienced a home-building boom earlier this decade. There were lots and lots of people who were buying and selling real estate. The home ownership rate went from 66% to 72% between 2000 and 2006.
All of a sudden, the population growth slowed. The housing sales slowed. And the construction workers left, and so, we've been in a recession since roughly May of 2007. Florida lost nearly 100,000 jobs last year.
Thursday, September 25, 2008
The Credit Freeze
I believe mortgage lenders have reached a critical stage and are no longer a viable option for buyers looking to secure mortgages for a new purchase. While people with massive down payments and outstanding credit scores may be able to get loans after jumping through 100 hoops, the general public is finding it almost to impossible to obtain financing for a home.
Underwriters are looking for ways to deny financing in fear of a future foreclosure. Normally strong candidates are scrutinized and rejected.
So what will become of these lenders who won't give loans? Wells Fargo Lawn & Care?????
If the lending continues to tighten, housing prices will continue to decline, more foreclosures will happen, and renting a property will be the new American way of life.
Underwriters are looking for ways to deny financing in fear of a future foreclosure. Normally strong candidates are scrutinized and rejected.
So what will become of these lenders who won't give loans? Wells Fargo Lawn & Care?????
If the lending continues to tighten, housing prices will continue to decline, more foreclosures will happen, and renting a property will be the new American way of life.
Tuesday, September 16, 2008
More brilliant real estate advice
This is a piece of an article I found.....
LEASE-TO-BUY?????
People struggling to obtain financing for a home purchase are finding a viable option in lease-to-buy agreements, which enable renters to rent a property with the option to purchase the residence at the end of the lease term.
Buyers with poor credit find that this approach gives them an opportunity to improve their credit while moving toward home ownership; and sellers find that once-vacant properties now offer a stable cash flow. Now, a growing number of condominium developers are also testing rent-to-own programs in hopes of eventually getting units sold.
There is a problem for your typical owner wanting to do that in our area. Property taxes and insurance costs push the monthly payment higher than the rent they can obtain. In case no one has noticed, there is a glut of rentals because homes aren't selling. While developers may be able to use this option your typical homeowner cannot afford to pay the difference between what they can get and what their actual costs are.
LEASE-TO-BUY?????
People struggling to obtain financing for a home purchase are finding a viable option in lease-to-buy agreements, which enable renters to rent a property with the option to purchase the residence at the end of the lease term.
Buyers with poor credit find that this approach gives them an opportunity to improve their credit while moving toward home ownership; and sellers find that once-vacant properties now offer a stable cash flow. Now, a growing number of condominium developers are also testing rent-to-own programs in hopes of eventually getting units sold.
There is a problem for your typical owner wanting to do that in our area. Property taxes and insurance costs push the monthly payment higher than the rent they can obtain. In case no one has noticed, there is a glut of rentals because homes aren't selling. While developers may be able to use this option your typical homeowner cannot afford to pay the difference between what they can get and what their actual costs are.
Friday, September 12, 2008
Property Tax Break??? RIGHT!!!!!!!!!
Once again the powers in the state have fallen short. I wonder what happened to the property tax amendment and it's passage "igniting" (Governor Christ's words)the real estate market in Florida. And home owners insurance wiped out the small savings if there were any by far.
Baffled by your property tax assessment this year?
The market value of your home may have fallen, yet its taxable value increased.
Does that make sense?.
The cause is state’s “recapture” rule and that raises your property taxes.
The rule has been on the books since 1995 but had no noticeable effect until the state’s real estate market collapsed.
Lawmakers are expected to take up legislation to repeal the recapture rule next year.
Want to learn more....send me an email.
Baffled by your property tax assessment this year?
The market value of your home may have fallen, yet its taxable value increased.
Does that make sense?.
The cause is state’s “recapture” rule and that raises your property taxes.
The rule has been on the books since 1995 but had no noticeable effect until the state’s real estate market collapsed.
Lawmakers are expected to take up legislation to repeal the recapture rule next year.
Want to learn more....send me an email.
Thursday, September 11, 2008
Propaganda in real estate
This is from an article that I found being mailed to Realtors. The media machine drives public opinion by publishing what it wants people to believe...not always the truth.
From property taxes to market conditions...people are always being fed a line about what is going on and what is going to happen and how great or horrible things are going to be.
It's time for truth in real estate......stay tuned. This article has some actual facts but does not tell the entire story.
This fall could be a particularly great time for first-time buyers or those who have been out of the market for at least three years to jump in, say a variety of real estate professionals.
Here are the reasons why:
• Property prices are probably as low as they are going to go as the market stabilizes, thanks to the government takeover of Freddie Mac and Fannie Mae.
• Interest rates are likely to decline as Freddie and Fannie get government help.
• The Federal Housing Administration recently boosted its loan limits to $729,750 in expensive areas. It’s going to take some of that back on Jan. 1, 2009, when the loan limit shrinks to $625,500.
• The FHA allows down payments of as little as 3 percent, but that will rise to 3.5 percent as of Oct. 1. People scraping dollars together for a down payment should try to set their closing for the end of this month.
• The federal tax credit recently approved will shave $7,500 off a first-time buyer’s federal tax bill due April 15. Buyers who don’t owe tax will get the money as a refund. The government’s definition of a first-time buyer is anyone who hasn’t owned a home in the last three years.
From property taxes to market conditions...people are always being fed a line about what is going on and what is going to happen and how great or horrible things are going to be.
It's time for truth in real estate......stay tuned. This article has some actual facts but does not tell the entire story.
This fall could be a particularly great time for first-time buyers or those who have been out of the market for at least three years to jump in, say a variety of real estate professionals.
Here are the reasons why:
• Property prices are probably as low as they are going to go as the market stabilizes, thanks to the government takeover of Freddie Mac and Fannie Mae.
• Interest rates are likely to decline as Freddie and Fannie get government help.
• The Federal Housing Administration recently boosted its loan limits to $729,750 in expensive areas. It’s going to take some of that back on Jan. 1, 2009, when the loan limit shrinks to $625,500.
• The FHA allows down payments of as little as 3 percent, but that will rise to 3.5 percent as of Oct. 1. People scraping dollars together for a down payment should try to set their closing for the end of this month.
• The federal tax credit recently approved will shave $7,500 off a first-time buyer’s federal tax bill due April 15. Buyers who don’t owe tax will get the money as a refund. The government’s definition of a first-time buyer is anyone who hasn’t owned a home in the last three years.
Wednesday, September 10, 2008
Sales Report
August home sales by Realtors reported in the MLS were down nearly 20%.
They were also lower than the same period in 2007.
The slump continues, and buyer's are waiting to see if the market will drop further.
There are deals to be had in some areas, but owners are holding to their prices unless forced to sell.
The waiting game continues........
They were also lower than the same period in 2007.
The slump continues, and buyer's are waiting to see if the market will drop further.
There are deals to be had in some areas, but owners are holding to their prices unless forced to sell.
The waiting game continues........
Friday, August 15, 2008
Sales Report
Sales remained steady for the month of July with 87 more sales than the prior month.
Inventory of homes available remained the same.
There were a total of 2,576 homes sold priced under $5,000,000.00 and as usual the majority of the sales were under $300,000.00.
Current inventory is 38,248 homes.
Inventory of homes available remained the same.
There were a total of 2,576 homes sold priced under $5,000,000.00 and as usual the majority of the sales were under $300,000.00.
Current inventory is 38,248 homes.
Monday, June 30, 2008
Downtown Tampa
TAMPA – June 27, 2008 – In 2003, Tampa Mayor Pam Iorio launched a campaign to turn the city’s small, sleepy downtown into a thriving core of offices, condos, stores, restaurants, and bars. The city’s 760-acre downtown would be transformed into a 24-hour hub of activity where residents could work, shop, play, and wake up each morning without dreading another traffic-clogged commute.
The downtown area would come to life with about 11,000 new condos, a 19-story office building [the first new downtown office tower in two decades], and new shops and restaurants. And the downtown population, which is now about 2,000, would swell to about 20,000.
City planners had every reason to believe they would be successful. The housing boom was in full swing, and young professionals and empty-nesters across the nation were coming back to city centers, which the middle class and affluent had all but abandoned starting in the 1960s in favor of suburbs where crime was lower, houses were larger, and schools were better. But during the last decade, cities from Miami and West Palm Beach to Philadelphia, Atlanta, Houston, and San Diego suddenly were hot again.
But everything changed for Tampa and for many other cities with the housing slump and foreclosure crisis, which was intensified by the year-old credit crunch. Now only about 3,500 of the planned condo units have either been built or are under construction in the downtown area, and many remain vacant. The office building also has been delayed.
Optimism for cities
“It was a false start you might say,” said Patrick Berman, senior director, retail brokerage for Cushman & Wakefield Florida, a real estate advisory group. “The market really slowed down. It was difficult to finance deals. People made deposits on condos and didn’t close.”
Berman, who lives two miles from the downtown, said that he’s certain that Tampa will finish what it started as soon as the housing market returns. He said cities haven’t lost their luster – it’s just that home buyers have become scarce. In fact, there is evidence that real estate in cities around the nation is doing better than in suburbs, especially in more distant suburbs where land was cheap and builders created an oversupply of houses.
And prices in many urban centers went up much more during the boom than they’ve fallen since. In Miami, for example, home prices nearly tripled from March, 1999, to March, 2006, when prices finally began to flatten, according to the S&P/Case-Shiller Home Price Index. By comparison, prices were down 24 percent in March, 2008, compared to March, 2006.
The downtown area would come to life with about 11,000 new condos, a 19-story office building [the first new downtown office tower in two decades], and new shops and restaurants. And the downtown population, which is now about 2,000, would swell to about 20,000.
City planners had every reason to believe they would be successful. The housing boom was in full swing, and young professionals and empty-nesters across the nation were coming back to city centers, which the middle class and affluent had all but abandoned starting in the 1960s in favor of suburbs where crime was lower, houses were larger, and schools were better. But during the last decade, cities from Miami and West Palm Beach to Philadelphia, Atlanta, Houston, and San Diego suddenly were hot again.
But everything changed for Tampa and for many other cities with the housing slump and foreclosure crisis, which was intensified by the year-old credit crunch. Now only about 3,500 of the planned condo units have either been built or are under construction in the downtown area, and many remain vacant. The office building also has been delayed.
Optimism for cities
“It was a false start you might say,” said Patrick Berman, senior director, retail brokerage for Cushman & Wakefield Florida, a real estate advisory group. “The market really slowed down. It was difficult to finance deals. People made deposits on condos and didn’t close.”
Berman, who lives two miles from the downtown, said that he’s certain that Tampa will finish what it started as soon as the housing market returns. He said cities haven’t lost their luster – it’s just that home buyers have become scarce. In fact, there is evidence that real estate in cities around the nation is doing better than in suburbs, especially in more distant suburbs where land was cheap and builders created an oversupply of houses.
And prices in many urban centers went up much more during the boom than they’ve fallen since. In Miami, for example, home prices nearly tripled from March, 1999, to March, 2006, when prices finally began to flatten, according to the S&P/Case-Shiller Home Price Index. By comparison, prices were down 24 percent in March, 2008, compared to March, 2006.
Monday, June 16, 2008
Monthly Sales
Statistics in the MLS show that between 4/26 to 5/25, 2300 homes closed.
Price range varied from as low as $12,000 up to 5 million.
The number was down from the previous month and 68% lower than the 2005 sales reported during the same period.
Price range varied from as low as $12,000 up to 5 million.
The number was down from the previous month and 68% lower than the 2005 sales reported during the same period.
Thursday, May 08, 2008
Good News For Real Estate in Florida
HOUSING MARKET
A top real estate economist offered Tampa Realtors a hint of optimism Wednesday, saying the Bay area housing market should begin to improve in the second half of the year, and stabilize in 2009. He predicts that a home purchased today will appreciate 20 to 30 percent in five years.
Copyright (c) 2008, Tampa Tribune
A top real estate economist offered Tampa Realtors a hint of optimism Wednesday, saying the Bay area housing market should begin to improve in the second half of the year, and stabilize in 2009. He predicts that a home purchased today will appreciate 20 to 30 percent in five years.
Copyright (c) 2008, Tampa Tribune
Friday, April 25, 2008
NEW HOME SALES
New home sales were down again in March by 8.5 percent, with the median price 13.3 percent lower than in March 2007.
Copyright 2008 The Associated Press, Martin Crutsinger
Copyright 2008 The Associated Press, Martin Crutsinger
Friday, April 11, 2008
Allstate is out again
ALLSTATE
A court made it official on Friday: Florida has the power to ban Allstate from issuing new policies in the state until the company submits requested information. Following the Friday ruling, Allstate submitted some of that information but said it would still not turn over everything the state had requested.
__________________________
A court made it official on Friday: Florida has the power to ban Allstate from issuing new policies in the state until the company submits requested information. Following the Friday ruling, Allstate submitted some of that information but said it would still not turn over everything the state had requested.
__________________________
Thursday, March 27, 2008
Monthly Sales for Tri-County area
Sales were up over the last 30 days by 533 homes compared to last month. A total of 1,948 homes were sold as reported in the Multiple Listing Service.
The majority were priced under $300,000.
Inventory is up as well, but not by much, and the number of homes in pending status expected to close was up by over 400 homes compared with last months numbers.
The majority were priced under $300,000.
Inventory is up as well, but not by much, and the number of homes in pending status expected to close was up by over 400 homes compared with last months numbers.
Wednesday, March 26, 2008
Why buy in Florida
Miami – March 25, 2008 – The Sunshine State took four of the top-10 metro slots on the Forbes.com 2008 list of “America’s Cleanest Cities.” According to the magazine, clean water and air result from assertive steps by Florida’s cities as well as “the built-in advantage of weather patterns that blow out smog.”
Miami took the top spot, followed by Jacksonville (No. 3), Orlando (No. 4) and Tampa/St. Petersburg (No. 8).
On another bright note for Florida, air and water cleanliness apparently energizes these metro economies, according to the survey.
© 2008 FLORIDA ASSOCIATION OF REALTORS®
Miami took the top spot, followed by Jacksonville (No. 3), Orlando (No. 4) and Tampa/St. Petersburg (No. 8).
On another bright note for Florida, air and water cleanliness apparently energizes these metro economies, according to the survey.
© 2008 FLORIDA ASSOCIATION OF REALTORS®
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