THE TURN AROUND IN SARASOTA COUNTY IS COMING.
I CURRENTLY AM WORKING WITH REO PROPERTIES THAT ARE PRICED TO SELL. THESE PROPERTIES WILL NOT STAY ON THE MARKET LONG. THE BANK SAYS SELL THEM AND THAT'S WHAT WE INTEND TO DO. INVENTORY IS HIGH BUT IT WILL DROP IN THE NEXT TWELVE MONTHS. IF YOU'RE LOOKING TO MAKE A DEAL THEY'LL NEVER BE A BETTER TIME.
EXAMPLE: WE JUST GOT A REO 2 DAYS AGO, 2 BEDROOM 2 BATH CONDO IN SARASOTA IN A GOLF COURSE COMMUNITY SIMILAR UNITS SOLD FOR $150,000 JUST TWO YEARS AGO. IT WHEN UNDER CONTRACT TODAY FOR $65,000.
SIGNS OF A REBOUND?
Sales are picking up in markets where prices are deflated, but the business is different than it was before the bubble burst, observers say. The housing market in deflated states - like Arizona, California, Florida and Nebraska - show signs of a rebound. Analysts say that prices have fallen to the point that those with average salaries can afford to buy once again. "The buyers are returning," says Lawrence Yun, National Association of Realtors (NAR) chief economist. "And in such a strong way that, now, we are hearing in some cases there is multiple bidding, which hints that maybe pricing is reaching a bottom point. But inventory remains high."
Source: The Christian Science Monitor, Ben Arnoldy (12/16/08)© Copyright 2008 INFORMATION, INC. Bethesda, MD (301) 215-4688
Wednesday, December 17, 2008
Monday, October 27, 2008
FHA is still out there writing mortgages!
Contrary to popular opinion, there are mortgages being written. FHA has been approving mortgages for qualified buyers throughout this financial crisis. There has never been a better time for first time home buyers to get out of their apartments and buy their own homes.
Click on the link below to learn more:
http://realtytimes.com/rtpages/20081020_washingtonreport.htm
Click on the link below to learn more:
http://realtytimes.com/rtpages/20081020_washingtonreport.htm
Tuesday, October 21, 2008
Although the recent economic news has been shaky, there still is some optimism regarding Florida real estate. Keep in mind, Florida, specifically Sarasota county was one of the first areas to experience the pain of the current real estate market. It only stands to reason that it will be one of the first to rebound. If we see the financial crisis in the stock market start to settle we should see some improvement this winter. Check out this article reprinted from Florida Association of Realtors' web site.
Recent financial crisis fails to hurt confidence in Florida real estate
GAINESVILLE, Fla. – Oct. 21, 2008 – The national economic crisis has failed to rattle Florida real estate experts, who, despite serious concerns about the availability of financing, remain surprisingly calm about market conditions within the state, a new University of Florida survey finds.
The most recent quarterly survey of Florida real estate trends, which was completed in September, shows the investment outlook for various types of properties remains steady, according to Wayne Archer, executive director of UF’s Bergstrom Center for Real Estate Studies.
“People who have responded to our surveys have not lost their faith in Florida as a place to be and a place to invest,” he says. “We have 40 pages of comments from our respondents, and although the dominant theme is the disruption of financing, perhaps the second theme, as one person put it, is people being on the sidelines with full pads and helmets just waiting to jump back in.”
Although Florida’s housing crisis is worse than other states, over the long term Florida stands to benefit from the migration of new residents, particularly as baby boomers age, Archer said. The Sunshine State’s mild climate and outdoor amenities make it an attractive retirement destination, despite high property taxes, insurance rates and hurricanes, he said.
Unfortunately, the plunging stock market combined with the fall in housing prices and tightening of home financing requirements will likely temporarily delay plans baby boomers may have to retire and move to the state, he said.
For the state’s real estate market to recover at all in the short term, banks and other financial institutions must ease credit restrictions, Archer said.
“If the financial crisis continues, that would really change the picture,” he said. “Our respondents, I think, are keeping the faith that they may have seen the worst and the shock will not be overwhelmingly severe.”
One sign of optimism is the trend in the latest survey toward a more favorable view of new single-family home development, Archer said.
“The respondents actually moved in a somewhat guarded but positive direction,” he said. “It suggests to me that they believe we may have already reached the bottom in that category.”
Although the survey does not include the market for existing single-family homes, one respondent said houses were beginning to sell in Lee County, once dubbed the foreclosure capital of the world, indicating perhaps the market is beginning to stabilize, he said.
Several neighboring counties in southwest Florida are likely to be in trouble for a long time, however, along with the Miami condo market, where an estimated 40,000 units are for sale, Archer said. Prospects are particularly bleak for higher-end condos in the city’s downtown, he said.
The weak dollar and general confidence in the United States as a safe harbor for investment could lure international investors to Miami, but that would be unlikely if the economic crisis deepens into a worldwide recession, he said.
While condo markets throughout the state face problems, which are likely to persist in the foreseeable future, the outlook for apartment rentals bounced back a little from the last survey in June, Archer said. “There was an expectation that occupancy rates would be falling, and while they’re not great, they are viewed as stable,” he said.
The weakest rental markets are in retail, which has been particularly hard hit by the economy as consumers spend less money, Archer said.
“After seeing what’s happening to their home values and watching the news, they are deferring purchases,” he said. “As a result, most retail organizations are curtailing their expansions and consolidating their operations and stores, which is creating higher vacancies.”
Perhaps the most negative survey result was that respondents’ perceptions of their own business outlook, which has declined steadily for 11 quarters, took an even larger downturn this quarter, Archer said.
“This is in marked contrast to their views of the market as a whole,” he said. “Although keenly aware of the downturn in the availability of capital, they remain surprisingly calm.”
The latest survey is based on 392 responses and is 12th in a series. It is the only Florida-centered survey of leaders and professional advisers in the real estate industry. The largest group of respondents was appraisers, about 51 percent, followed by brokers and other service providers.
© 2008 FLORIDA ASSOCIATION OF REALTORS®
he
Recent financial crisis fails to hurt confidence in Florida real estate
GAINESVILLE, Fla. – Oct. 21, 2008 – The national economic crisis has failed to rattle Florida real estate experts, who, despite serious concerns about the availability of financing, remain surprisingly calm about market conditions within the state, a new University of Florida survey finds.
The most recent quarterly survey of Florida real estate trends, which was completed in September, shows the investment outlook for various types of properties remains steady, according to Wayne Archer, executive director of UF’s Bergstrom Center for Real Estate Studies.
“People who have responded to our surveys have not lost their faith in Florida as a place to be and a place to invest,” he says. “We have 40 pages of comments from our respondents, and although the dominant theme is the disruption of financing, perhaps the second theme, as one person put it, is people being on the sidelines with full pads and helmets just waiting to jump back in.”
Although Florida’s housing crisis is worse than other states, over the long term Florida stands to benefit from the migration of new residents, particularly as baby boomers age, Archer said. The Sunshine State’s mild climate and outdoor amenities make it an attractive retirement destination, despite high property taxes, insurance rates and hurricanes, he said.
Unfortunately, the plunging stock market combined with the fall in housing prices and tightening of home financing requirements will likely temporarily delay plans baby boomers may have to retire and move to the state, he said.
For the state’s real estate market to recover at all in the short term, banks and other financial institutions must ease credit restrictions, Archer said.
“If the financial crisis continues, that would really change the picture,” he said. “Our respondents, I think, are keeping the faith that they may have seen the worst and the shock will not be overwhelmingly severe.”
One sign of optimism is the trend in the latest survey toward a more favorable view of new single-family home development, Archer said.
“The respondents actually moved in a somewhat guarded but positive direction,” he said. “It suggests to me that they believe we may have already reached the bottom in that category.”
Although the survey does not include the market for existing single-family homes, one respondent said houses were beginning to sell in Lee County, once dubbed the foreclosure capital of the world, indicating perhaps the market is beginning to stabilize, he said.
Several neighboring counties in southwest Florida are likely to be in trouble for a long time, however, along with the Miami condo market, where an estimated 40,000 units are for sale, Archer said. Prospects are particularly bleak for higher-end condos in the city’s downtown, he said.
The weak dollar and general confidence in the United States as a safe harbor for investment could lure international investors to Miami, but that would be unlikely if the economic crisis deepens into a worldwide recession, he said.
While condo markets throughout the state face problems, which are likely to persist in the foreseeable future, the outlook for apartment rentals bounced back a little from the last survey in June, Archer said. “There was an expectation that occupancy rates would be falling, and while they’re not great, they are viewed as stable,” he said.
The weakest rental markets are in retail, which has been particularly hard hit by the economy as consumers spend less money, Archer said.
“After seeing what’s happening to their home values and watching the news, they are deferring purchases,” he said. “As a result, most retail organizations are curtailing their expansions and consolidating their operations and stores, which is creating higher vacancies.”
Perhaps the most negative survey result was that respondents’ perceptions of their own business outlook, which has declined steadily for 11 quarters, took an even larger downturn this quarter, Archer said.
“This is in marked contrast to their views of the market as a whole,” he said. “Although keenly aware of the downturn in the availability of capital, they remain surprisingly calm.”
The latest survey is based on 392 responses and is 12th in a series. It is the only Florida-centered survey of leaders and professional advisers in the real estate industry. The largest group of respondents was appraisers, about 51 percent, followed by brokers and other service providers.
© 2008 FLORIDA ASSOCIATION OF REALTORS®
he
Wednesday, October 8, 2008
Pending Home Sales Up 7.4% for August
Here is some good news today from the NAR. It's nice to hear some positive news these days! The pending home sales were up 7.4% in August, considering that the expectations were for -1.5%, this is great!
Contrary to what folks believe, there are banks making loans and now is a great time to negotiate a great deal. Sellers are looking at the market right now and when they get an offer on their property, they realize right now that they need to make a deal.
If your renting right now, FHA is still writing loans at 97% loan to value. You now can own for what you're paying for rent. For example, a 95,000 loan including taxes and insurance would be a monthly payment of $768.00/month.
There hasn't been a better time for first time home buyers than now. There are even programs that will help you with the 3% down payment. Give me a call to see if you qualify.
Contrary to what folks believe, there are banks making loans and now is a great time to negotiate a great deal. Sellers are looking at the market right now and when they get an offer on their property, they realize right now that they need to make a deal.
If your renting right now, FHA is still writing loans at 97% loan to value. You now can own for what you're paying for rent. For example, a 95,000 loan including taxes and insurance would be a monthly payment of $768.00/month.
There hasn't been a better time for first time home buyers than now. There are even programs that will help you with the 3% down payment. Give me a call to see if you qualify.
Thursday, October 2, 2008
Help for Homeowners with Subprime Loans
Republished from Florida Association of Realtor's Web site: October 2, 2008:
WASHINGTON – Oct. 2, 2008 – A new program rolled out by HUD yesterday could help more homeowners avoid foreclosure. Under the program, the lender of an existing subprime mortgage forgives part of the debt as if it’s a short sale, and the balance of the mortgage is rolled into a fixed-rate FHA mortgage. Unlike earlier programs, however, the HOPE for Homeowners program is aimed more at lenders than homeowners.
“For families struggling to keep up with their mortgage payments, this program will be another resource to refinance into a loan they can afford,” says HUD Secretary Steve Preston. “FHA remains a safe and affordable alternative to the high-priced mortgage loans that threaten homeowners’ ability to retain their homes. We strongly encourage borrowers to work with their lenders to determine if HOPE for Homeowners is the right program for them.”
The Economic and Housing Recovery Act of 2008 authorized the HOPE for Homeowners program. The HOPE for Homeowners Board of Directors was charged with establishing underwriting standards to ensure borrowers, after any write-down in principal, have a reasonable ability to repay their new FHA-insured mortgage.
The program began yesterday and ends Sept. 30, 2011. It’s available only to owner- occupants. In many cases, banks will have to write down the existing mortgage to 90 percent of the new appraised value of the home.
Borrower eligibility
Borrowers should contact their lender to determine eligibility. General requirements include:
• The home is their primary residence, and they have no ownership interest in any other residential property, such as second homes.
• Their existing mortgage was originated on or before Jan. 1, 2008, and they have made at least six payments.
• They are not able to pay their existing mortgage without help.
• As of March 2008, their total monthly mortgage payments due were more than 31 percent of their gross monthly income.
• They certify they have not been convicted of fraud in the past 10 years, intentionally defaulted on debts, and did not knowingly or willingly provide material false information to obtain their existing mortgage(s).
How the program works
The Board expects homeowners will participate in the program primarily through their current lender. HOPE for Homeowners includes the following provisions:
• The loan amount may not exceed a maximum of $550,440.
• The new mortgage will be no more than 90 percent of the new appraised value including any financed upfront mortgage insurance premium.
• The upfront mortgage insurance premium is 3 percent and the annual mortgage insurance premium is 1.5 percent.
• The holders of existing mortgage liens must waive all prepayment penalties and late payment fees.
• The existing first mortgage must accept the proceeds of the HOPE for Homeowners loan as full settlement of all outstanding indebtedness.
• Existing subordinate lenders must release their outstanding mortgage liens.
• Standard FHA policy regarding closing costs applies.
• The borrower must agree to share with FHA both the equity created at the beginning of this new mortgage and any future appreciation in the value of the home.
• The borrower cannot take out a second mortgage for the first five years of the loan, except under certain circumstances for emergency repairs.
The costs to the homeowner include the upfront and annual insurance premiums, as well as a share of the equity created by the write-down associated with the HOPE for Homeowners mortgage and any future appreciation in the value of the home. If the home is sold or refinanced, the homeowner will share the equity with FHA on a sliding scale ranging from a 100 percent FHA share after the first year to a minimum of 50 percent after five years.
The lien holder that previously held the highest priority will receive payment up to a proportion of its original interest, not to exceed the amount of available appreciation. This type of delayed payoff will take place until all prior lien holders are satisfied or the amount of available appreciation is exhausted. All remaining appreciation is remitted to FHA.
Read more about HOPE for Homeowners at www.hud.gov/hopeforhomeowners.
© 2008 FLORIDA ASSOCIATION OF REALTORS®
WASHINGTON – Oct. 2, 2008 – A new program rolled out by HUD yesterday could help more homeowners avoid foreclosure. Under the program, the lender of an existing subprime mortgage forgives part of the debt as if it’s a short sale, and the balance of the mortgage is rolled into a fixed-rate FHA mortgage. Unlike earlier programs, however, the HOPE for Homeowners program is aimed more at lenders than homeowners.
“For families struggling to keep up with their mortgage payments, this program will be another resource to refinance into a loan they can afford,” says HUD Secretary Steve Preston. “FHA remains a safe and affordable alternative to the high-priced mortgage loans that threaten homeowners’ ability to retain their homes. We strongly encourage borrowers to work with their lenders to determine if HOPE for Homeowners is the right program for them.”
The Economic and Housing Recovery Act of 2008 authorized the HOPE for Homeowners program. The HOPE for Homeowners Board of Directors was charged with establishing underwriting standards to ensure borrowers, after any write-down in principal, have a reasonable ability to repay their new FHA-insured mortgage.
The program began yesterday and ends Sept. 30, 2011. It’s available only to owner- occupants. In many cases, banks will have to write down the existing mortgage to 90 percent of the new appraised value of the home.
Borrower eligibility
Borrowers should contact their lender to determine eligibility. General requirements include:
• The home is their primary residence, and they have no ownership interest in any other residential property, such as second homes.
• Their existing mortgage was originated on or before Jan. 1, 2008, and they have made at least six payments.
• They are not able to pay their existing mortgage without help.
• As of March 2008, their total monthly mortgage payments due were more than 31 percent of their gross monthly income.
• They certify they have not been convicted of fraud in the past 10 years, intentionally defaulted on debts, and did not knowingly or willingly provide material false information to obtain their existing mortgage(s).
How the program works
The Board expects homeowners will participate in the program primarily through their current lender. HOPE for Homeowners includes the following provisions:
• The loan amount may not exceed a maximum of $550,440.
• The new mortgage will be no more than 90 percent of the new appraised value including any financed upfront mortgage insurance premium.
• The upfront mortgage insurance premium is 3 percent and the annual mortgage insurance premium is 1.5 percent.
• The holders of existing mortgage liens must waive all prepayment penalties and late payment fees.
• The existing first mortgage must accept the proceeds of the HOPE for Homeowners loan as full settlement of all outstanding indebtedness.
• Existing subordinate lenders must release their outstanding mortgage liens.
• Standard FHA policy regarding closing costs applies.
• The borrower must agree to share with FHA both the equity created at the beginning of this new mortgage and any future appreciation in the value of the home.
• The borrower cannot take out a second mortgage for the first five years of the loan, except under certain circumstances for emergency repairs.
The costs to the homeowner include the upfront and annual insurance premiums, as well as a share of the equity created by the write-down associated with the HOPE for Homeowners mortgage and any future appreciation in the value of the home. If the home is sold or refinanced, the homeowner will share the equity with FHA on a sliding scale ranging from a 100 percent FHA share after the first year to a minimum of 50 percent after five years.
The lien holder that previously held the highest priority will receive payment up to a proportion of its original interest, not to exceed the amount of available appreciation. This type of delayed payoff will take place until all prior lien holders are satisfied or the amount of available appreciation is exhausted. All remaining appreciation is remitted to FHA.
Read more about HOPE for Homeowners at www.hud.gov/hopeforhomeowners.
© 2008 FLORIDA ASSOCIATION OF REALTORS®
Wednesday, September 24, 2008
Economic Forcast from NAR
The latest video podcast from the National Association of Realtors is out and it addresses the latest in our economy. Take a look:
You can also read what Lawrence Yun thinks about the bailout bill that congress is contemplating right here:
http://www.realtor.org/research/commentary_700_billion
You can also read what Lawrence Yun thinks about the bailout bill that congress is contemplating right here:
http://www.realtor.org/research/commentary_700_billion
What's Happening in Sarasota County Now
The real estate market is definately in flux right now but there still is activity in Sarasota County. In fact, according the the Mid Florida MLS as of today September 24th, there have been 308 homes and condominiums sold in September. There are 1243 listed as pending.
Although we have a long way to go, as long as the economy can set itself straight and the folks in Washington get their act together. The outlook for Sarasota County is not all doom and gloom if you are a buyer.
It's never been a better time to buy in the county:
http://www.heraldtribune.com/article/20080924/BREAKING/309249997/2055/NEWS?Title=Home_prices_still_falling_in_region
Although we have a long way to go, as long as the economy can set itself straight and the folks in Washington get their act together. The outlook for Sarasota County is not all doom and gloom if you are a buyer.
It's never been a better time to buy in the county:
http://www.heraldtribune.com/article/20080924/BREAKING/309249997/2055/NEWS?Title=Home_prices_still_falling_in_region
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