Over the weekend there were an unusually high number of inquiries for my listings, regardless of price-point. A situation that I am confirming with my colleagues that is becoming increasingly common for buyers in the 500K+ range is that since these buyers typically need Jumbo Loans (over 423K/FHA max.), they are having a harder time getting approved than in prior years, or they do not have or simply do not want to invest the typically required 20% down. Whatever the case, I am optimistic that this up tick in consumer inquiries will continue for a number or reasons:
-The stock market has shown some positive signs
-The current administration has unveiled a comprehensive plan to reduce the rate of foreclosures, thus reducing the volume of inventory coming on the market
-The $8000.00 credit for first time buyers means that those (first home sellers) will now be looking for their next home (typically 450-650K).
It's important to note that the positive psychological effect of a perceived multi prong approach to our current housing woes is more important than the actual initiatives themselves. We continue to be a consumer driven economy, so positive consumer sentiment is paramount.
This is not to imply that we are at the bottom of our present market cycle, yet these conditions are starting to foster the "perception of value" that this market has long been missing since 2006.
Full steam ahead, I say!
Monday, March 30, 2009
Wednesday, March 25, 2009
A construction boom? Where? Now?
One of Miami-Dade County's best kept secrets for buyers looking for a home in the 500K to 1.3 million dollar range is Hialeah Gardens Estates. As a matter of fact, most people have never heard of it! It is a rare combination of both urban and country living unlike anything else in the immediate area. It is a quaint secluded neighborhood in Northwestern Dade County of only 200+ homes with two city parks on either side and has one of the lowest tax millage rates in the County.
LOCATION
In real estate the mantra has always been location location location. Here, The Estates most certainly fits the bill. This neighborhood is easily accessed in just 30 seconds from I75 with immediate access to Rt 826 and the Florida Turnpike. Furthermore, one has immediate access to an array of shopping centers including Florida's largest Home Depot. Additionally, dining and entertainment are all within a few minutes drive. And lastly, both the major airports, and down town Miami are only 30 minutes away. Traffic and congestion are virtually non-existent here.
HOMES
For starters, the initial appeal of The Estates is in the size of the lots. They range from .25 acres to 5 acres. This layout immediately lends itself to an ample separation between homes. Zero lot lines are non existent here. Additionally, horses are permitted on those properties that have at least an acre of land. The homes generally range in size from three bedroom 3000 sq. ft. homes to 6+ bedroom residences with 6000 sq. ft.+ of living area.
STATE OF THE MARKET
Market conditions being what they are, the long range prognosis for The Estates is excellent. Firstly, the foreclosure rate is very low with only three bank-owned homes brought to market in the past 12 months. Also, the general turnover rate of homes is also very low, subsequently contributing to overall neighborhood stability. And unlike the conventional market wisdom, The Estates is presently undergoing a construction boom! There are 20+ homes under construction which, in my estimate, will range in market value from $650,000 to $1.3 million at today's market prices. It's important to note that these home owners do not have to build at this time. They are choosing to do so, simply because they realize that a home in Hialeah Gardens Estates is a worthwhile investment that is sure to be in high demand. In short, now is the time to buy a home here at a great price!
LOCATION
In real estate the mantra has always been location location location. Here, The Estates most certainly fits the bill. This neighborhood is easily accessed in just 30 seconds from I75 with immediate access to Rt 826 and the Florida Turnpike. Furthermore, one has immediate access to an array of shopping centers including Florida's largest Home Depot. Additionally, dining and entertainment are all within a few minutes drive. And lastly, both the major airports, and down town Miami are only 30 minutes away. Traffic and congestion are virtually non-existent here.
HOMES
For starters, the initial appeal of The Estates is in the size of the lots. They range from .25 acres to 5 acres. This layout immediately lends itself to an ample separation between homes. Zero lot lines are non existent here. Additionally, horses are permitted on those properties that have at least an acre of land. The homes generally range in size from three bedroom 3000 sq. ft. homes to 6+ bedroom residences with 6000 sq. ft.+ of living area.
STATE OF THE MARKET
Market conditions being what they are, the long range prognosis for The Estates is excellent. Firstly, the foreclosure rate is very low with only three bank-owned homes brought to market in the past 12 months. Also, the general turnover rate of homes is also very low, subsequently contributing to overall neighborhood stability. And unlike the conventional market wisdom, The Estates is presently undergoing a construction boom! There are 20+ homes under construction which, in my estimate, will range in market value from $650,000 to $1.3 million at today's market prices. It's important to note that these home owners do not have to build at this time. They are choosing to do so, simply because they realize that a home in Hialeah Gardens Estates is a worthwhile investment that is sure to be in high demand. In short, now is the time to buy a home here at a great price!
Tuesday, March 10, 2009
The importance of a comprehensive internet presence
According to recent stats, 85% of all buyers of real estate begin their home search in the Internet; and that number comtinues to climb! This phenomena has fundamentally changed the real estate brokerage business. Coldwell Banker, for example, has dramatically increased it's online marketing, while simultaneously scaling back from ineffective print media. As a matter of fact, most of the prospective buyer inquiries for the properties that I market originate from online sources. A recent home that I sold was bought sight unseen, with the buyer relying on the extensive online presentation of the property alone!
Considering this, it only makes perfect sense for a prospective home seller to employ the services of a brokerage that can best expose their property to as many would-be Internet buyers as possible. Below is by far the best presentation of an online home marketing strategy that I've ever seen. I'd welcome your thoughts on it...
http://www.coldwellbanker.net/flipBooks/fl/
Clinking of the individual web shots will actually open up those sites! Enjoy...
Considering this, it only makes perfect sense for a prospective home seller to employ the services of a brokerage that can best expose their property to as many would-be Internet buyers as possible. Below is by far the best presentation of an online home marketing strategy that I've ever seen. I'd welcome your thoughts on it...
http://www.coldwellbanker.net/flipBooks/fl/
Clinking of the individual web shots will actually open up those sites! Enjoy...
Friday, March 6, 2009
Foreclosure assistance?
U.S.News & World ReportI Pay My Mortgage: What's in the Housing Bailout For Me?Friday March 6, 11:00 am ET By Luke Mullins
As Uncle Sam issued check after to check to keep Wall Street bankers afloat, American taxpayers--who were picking up the tab--grew increasingly resentful of paying for others' mistakes. But when President Barack Obama announced a $75 billion plan to lower monthly mortgage payments for up to four million distressed homeowners in mid-February, frustration turned to rage. Just ask Rick Santelli, whose now-infamous rant against government subsidization of "the losers' mortgages" turned the obscure CNBC analyst into a household name, while underscoring the nation's growing distaste for bailouts. But the Obama administration has pitched its housing fix as one that would help all homeowners--not just troubled ones. So after fresh details of the plan were released Wednesday, it's time to ask: I'm a responsible homeowner; what's in it for me?
1. How big is the foreclosure problem? Foreclosure filings were reported on more than 2.3 million American properties last year, according to RealtyTrac. That's one for every 54 housing units and an 81 percent jump from 2007. In a recent address, President Obama said nearly six million American homes are either in--or at risk of--foreclosure. And on Thursday, the Mortgage Bankers Association reported that more than 11 percent of mortgages outstanding were either past due or in foreclosure during the fourth quarter of 2008.That's a record high.
2. Who qualifies for Obama's housing plan? The $75 billion goes toward reducing mortgage payments for as many as four million "at-risk" homeowners. The program is only available for owner-occupied, principal residences with mortgages that originated before Jan. 1, 2009. To qualify, the borrower's monthly mortgage payments must exceed 31 percent of their gross monthly income. In addition, they must also have undergone some type of financial hardship--such as a loss of income--that puts them at risk of default. While you don't need to be delinquent on your mortgage to qualify, borrowers who are comfortably making their mortgage payments won't be eligible.
3. I don't qualify. How does this help me? Many Americans who purchased homes they could reasonably afford and made their payments on time are understandably upset at seeing neighbors who made reckless decisions bailed out on their dime. But the Obama administration argues that keeping people in their homes is in the best interest of all homeowners, since foreclosures--which can blight communities and nurture crime--can drive down property values for everyone. "One study in Chicago found that a foreclosed home reduces the price of nearby homes by as much as 9 percent," the president recently said. Although he considers the 9 percent figure too high, Richard Moody, the chief economist at Mission Residential, says Obama's argument is sound. "If you were to go sell your house, the first thing the realtor is going to do when they try to figure out a listing price is to look at [comparable homes in your neighborhood]," Moody says. "And if you've got all these depressed property values, that is going to definitely harm the sales value of your home." As such, if Obama's housing plan succeeds in reducing foreclosures for troubled borrowers--and that's a huge if--it may help to bolster the values of other homes as well.
4. What incentive do I have to keep paying my mortgage? A home foreclosure is an ugly stain on a credit report, and it can remain there for as long as seven years. "It's right up there with a bankruptcy," says Gail Cunningham, the spokeswoman for the National Foundation for Credit Counseling. With banks tightening their lending standards in the face of higher delinquencies, it's a particularly bad time to ruin your credit. If you have a home foreclosure on your credit report, you're likely to have a difficult time getting any type of new credit these days--from a credit card to a new mortgage.
5. I'm not in trouble now, but how can I protect myself from the threat of foreclosure? Factors that can lead to foreclosure include unemployment, exploding-rate mortgages, and reckless discretionary spending. Although homeowners may have less control over their employment situation, by addressing these other factors, they can put themselves in a better position to avoid foreclosure should they suffer job loss. Julia Rodgers, a mortgage advisor with the National Community Reinvestment Coalition, says homeowners should make sure they have sufficient savings set aside to pay their mortgage in the event of the unexpected. "Fallback savings is critical," Rodgers says. "At least have three months of your mortgage payments saved." In setting aside such savings, families should institute a household budget and review their online bank statements regularly to ensure they aren't spending wastefully. "A lot of my clients have $300 to $400 in bank fees alone," Rodgers says. "In this climate, we have to be extremely aware of where our money is going."
Consumers with adjustable-rate mortgages should see if they are eligible to refinance into a fixed-rate home loan, while those who already have fixed-rate loans should see if they can refinance into a lower rate. In doing so, consumers should first obtain their credit report and see if their mortgage is owned or guaranteed by Fannie Mae or Freddie Mac, Rodgers says. Those with Fannie or Freddie loans may be eligible to refinance into a lower rate through a second component of Obama's housing plan. "If you can, refinance," says Susan Wachter, a professor of real estate at the University of Pennsylvania's Wharton School. "The rates are low." Thirty-year fixed-mortgage rates averaged an attractive 5.15 percent for the week ending March 5, according to Freddie Mac.
6. Is there a silver lining in this mess? It's nearly impossible to spot any sort of silver lining in the current housing mess. But if there's anything good to come out of this, it's the hope that homeowners, lenders, regulators, and policymakers will learn from their mistakes and ensure that mortgages going forward will be properly underwritten and affordable. By overlooking the lessons of the crisis, we risk going through this devastating cycle again in the future.
As Uncle Sam issued check after to check to keep Wall Street bankers afloat, American taxpayers--who were picking up the tab--grew increasingly resentful of paying for others' mistakes. But when President Barack Obama announced a $75 billion plan to lower monthly mortgage payments for up to four million distressed homeowners in mid-February, frustration turned to rage. Just ask Rick Santelli, whose now-infamous rant against government subsidization of "the losers' mortgages" turned the obscure CNBC analyst into a household name, while underscoring the nation's growing distaste for bailouts. But the Obama administration has pitched its housing fix as one that would help all homeowners--not just troubled ones. So after fresh details of the plan were released Wednesday, it's time to ask: I'm a responsible homeowner; what's in it for me?
1. How big is the foreclosure problem? Foreclosure filings were reported on more than 2.3 million American properties last year, according to RealtyTrac. That's one for every 54 housing units and an 81 percent jump from 2007. In a recent address, President Obama said nearly six million American homes are either in--or at risk of--foreclosure. And on Thursday, the Mortgage Bankers Association reported that more than 11 percent of mortgages outstanding were either past due or in foreclosure during the fourth quarter of 2008.That's a record high.
2. Who qualifies for Obama's housing plan? The $75 billion goes toward reducing mortgage payments for as many as four million "at-risk" homeowners. The program is only available for owner-occupied, principal residences with mortgages that originated before Jan. 1, 2009. To qualify, the borrower's monthly mortgage payments must exceed 31 percent of their gross monthly income. In addition, they must also have undergone some type of financial hardship--such as a loss of income--that puts them at risk of default. While you don't need to be delinquent on your mortgage to qualify, borrowers who are comfortably making their mortgage payments won't be eligible.
3. I don't qualify. How does this help me? Many Americans who purchased homes they could reasonably afford and made their payments on time are understandably upset at seeing neighbors who made reckless decisions bailed out on their dime. But the Obama administration argues that keeping people in their homes is in the best interest of all homeowners, since foreclosures--which can blight communities and nurture crime--can drive down property values for everyone. "One study in Chicago found that a foreclosed home reduces the price of nearby homes by as much as 9 percent," the president recently said. Although he considers the 9 percent figure too high, Richard Moody, the chief economist at Mission Residential, says Obama's argument is sound. "If you were to go sell your house, the first thing the realtor is going to do when they try to figure out a listing price is to look at [comparable homes in your neighborhood]," Moody says. "And if you've got all these depressed property values, that is going to definitely harm the sales value of your home." As such, if Obama's housing plan succeeds in reducing foreclosures for troubled borrowers--and that's a huge if--it may help to bolster the values of other homes as well.
4. What incentive do I have to keep paying my mortgage? A home foreclosure is an ugly stain on a credit report, and it can remain there for as long as seven years. "It's right up there with a bankruptcy," says Gail Cunningham, the spokeswoman for the National Foundation for Credit Counseling. With banks tightening their lending standards in the face of higher delinquencies, it's a particularly bad time to ruin your credit. If you have a home foreclosure on your credit report, you're likely to have a difficult time getting any type of new credit these days--from a credit card to a new mortgage.
5. I'm not in trouble now, but how can I protect myself from the threat of foreclosure? Factors that can lead to foreclosure include unemployment, exploding-rate mortgages, and reckless discretionary spending. Although homeowners may have less control over their employment situation, by addressing these other factors, they can put themselves in a better position to avoid foreclosure should they suffer job loss. Julia Rodgers, a mortgage advisor with the National Community Reinvestment Coalition, says homeowners should make sure they have sufficient savings set aside to pay their mortgage in the event of the unexpected. "Fallback savings is critical," Rodgers says. "At least have three months of your mortgage payments saved." In setting aside such savings, families should institute a household budget and review their online bank statements regularly to ensure they aren't spending wastefully. "A lot of my clients have $300 to $400 in bank fees alone," Rodgers says. "In this climate, we have to be extremely aware of where our money is going."
Consumers with adjustable-rate mortgages should see if they are eligible to refinance into a fixed-rate home loan, while those who already have fixed-rate loans should see if they can refinance into a lower rate. In doing so, consumers should first obtain their credit report and see if their mortgage is owned or guaranteed by Fannie Mae or Freddie Mac, Rodgers says. Those with Fannie or Freddie loans may be eligible to refinance into a lower rate through a second component of Obama's housing plan. "If you can, refinance," says Susan Wachter, a professor of real estate at the University of Pennsylvania's Wharton School. "The rates are low." Thirty-year fixed-mortgage rates averaged an attractive 5.15 percent for the week ending March 5, according to Freddie Mac.
6. Is there a silver lining in this mess? It's nearly impossible to spot any sort of silver lining in the current housing mess. But if there's anything good to come out of this, it's the hope that homeowners, lenders, regulators, and policymakers will learn from their mistakes and ensure that mortgages going forward will be properly underwritten and affordable. By overlooking the lessons of the crisis, we risk going through this devastating cycle again in the future.
Wednesday, February 25, 2009
Signs of a market turnaround?
Florida’s existing home, condo sales rise in January 2009
January existing-home sales fall, inventory down, says NARORLANDO, Fla. – Feb. 25, 2009 – Florida’s existing home sales rose in January, making it the fifth month in a row that sales activity showed increases in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR). Existing home sales rose 24 percent last month with a total of 8,450 homes sold statewide compared to 6,810 homes sold in January 2008, according to FAR. “Many people are looking at today’s market and seeing opportunities to find the home or business they’ve always wanted,” said 2009 FAR President Cynthia Shelton. “With a range of available housing options, historically low mortgage interest rates and affordable prices, buyers who may have been hesitant before should take a closer look at the current opportunities for homeownership. As real estate professionals who know all aspects of their local market conditions, Florida Realtors are here to help counsel consumers making sound long-term decisions for their homes and their businesses.”Florida Realtors also reported a 13 percent gain in statewide sales of existing condominiums in January, making it the fourth recent month (following September, October and December) that statewide existing home and existing condo sales were higher compared to year-ago levels. Thirteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing-home sales in January while 11 MSAs also showed gains in condo sales; it marks the seventh consecutive month that a number of markets have reported increased sales.Florida’s median sales price for existing homes last month was $139,500; a year ago, it was $206,900 for a 33 percent decrease. According to industry analysts with the National Association of Realtors® (NAR), there remains a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is the midpoint; half the homes sold for more, half for less. The national median sales price for existing single-family homes in December 2008 was $174,700, down 14.8 percent from a year earlier, according to NAR. In California, the statewide median resales price was $281,100 in December; in Massachusetts, it was $275,000; in Maryland, it was $267,925; and in New York, it was $220,000.NAR’s latest housing outlook shows that home prices continue to fall, but also notes a trend of increasing sales activity in the Florida, California, Arizona and Nevada markets. “It appears some buyers are taking advantage of much lower home prices,” said NAR Chief Economist Lawrence Yun. “The higher monthly sales gain and falling inventory are steps in the right direction, but buyers will continue to have an edge over sellers for the foreseeable future.”In Florida’s year-to-year comparison for condos, 2,556 units sold statewide compared to 2,266 sold in January 2008 for a 13 percent increase. The statewide existing condo median sales price last month was $113,400; in January 2008 it was $190,200 for a 40 percent decrease. In the latest data available at press time, NAR reported the national median existing condo price was $181,400 in December 2008.Interest rates for a 30-year fixed-rate mortgage averaged 5.05 percent last month, down from the average rate of 5.76 percent in January 2008, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written. Among the state’s large to medium-size markets, the Daytona Beach MSA reported a total of 419 homes sold in January compared to 321 homes a year ago for a 31 percent increase. The existing home median sales price was $131,800; a year ago, it was $179,100 for a 26 percent decrease. In the year-to-year comparison for the existing condo market, a total of 77 units sold in the MSA last month, up 43 percent compared to 54 condos sold the previous January. The market’s existing condo median price was $167,800; a year ago, it was $230,000 for a 27 percent decrease.© 2009 FLORIDA ASSOCIATION OF REALTORS®
January existing-home sales fall, inventory down, says NARORLANDO, Fla. – Feb. 25, 2009 – Florida’s existing home sales rose in January, making it the fifth month in a row that sales activity showed increases in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR). Existing home sales rose 24 percent last month with a total of 8,450 homes sold statewide compared to 6,810 homes sold in January 2008, according to FAR. “Many people are looking at today’s market and seeing opportunities to find the home or business they’ve always wanted,” said 2009 FAR President Cynthia Shelton. “With a range of available housing options, historically low mortgage interest rates and affordable prices, buyers who may have been hesitant before should take a closer look at the current opportunities for homeownership. As real estate professionals who know all aspects of their local market conditions, Florida Realtors are here to help counsel consumers making sound long-term decisions for their homes and their businesses.”Florida Realtors also reported a 13 percent gain in statewide sales of existing condominiums in January, making it the fourth recent month (following September, October and December) that statewide existing home and existing condo sales were higher compared to year-ago levels. Thirteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing-home sales in January while 11 MSAs also showed gains in condo sales; it marks the seventh consecutive month that a number of markets have reported increased sales.Florida’s median sales price for existing homes last month was $139,500; a year ago, it was $206,900 for a 33 percent decrease. According to industry analysts with the National Association of Realtors® (NAR), there remains a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is the midpoint; half the homes sold for more, half for less. The national median sales price for existing single-family homes in December 2008 was $174,700, down 14.8 percent from a year earlier, according to NAR. In California, the statewide median resales price was $281,100 in December; in Massachusetts, it was $275,000; in Maryland, it was $267,925; and in New York, it was $220,000.NAR’s latest housing outlook shows that home prices continue to fall, but also notes a trend of increasing sales activity in the Florida, California, Arizona and Nevada markets. “It appears some buyers are taking advantage of much lower home prices,” said NAR Chief Economist Lawrence Yun. “The higher monthly sales gain and falling inventory are steps in the right direction, but buyers will continue to have an edge over sellers for the foreseeable future.”In Florida’s year-to-year comparison for condos, 2,556 units sold statewide compared to 2,266 sold in January 2008 for a 13 percent increase. The statewide existing condo median sales price last month was $113,400; in January 2008 it was $190,200 for a 40 percent decrease. In the latest data available at press time, NAR reported the national median existing condo price was $181,400 in December 2008.Interest rates for a 30-year fixed-rate mortgage averaged 5.05 percent last month, down from the average rate of 5.76 percent in January 2008, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written. Among the state’s large to medium-size markets, the Daytona Beach MSA reported a total of 419 homes sold in January compared to 321 homes a year ago for a 31 percent increase. The existing home median sales price was $131,800; a year ago, it was $179,100 for a 26 percent decrease. In the year-to-year comparison for the existing condo market, a total of 77 units sold in the MSA last month, up 43 percent compared to 54 condos sold the previous January. The market’s existing condo median price was $167,800; a year ago, it was $230,000 for a 27 percent decrease.© 2009 FLORIDA ASSOCIATION OF REALTORS®
An $8000.00 gift!
A tax credit is now available for first time home buyers under the American Recovery and Reinvestment Act of 2009. If you buy a home between January 1, 2009 and November 30, 2009, you may be able to receive a tax credit for 10% of the purchase price of your home-up to $8000. Here are the program highlights:
- Any individual (and if married, their spouse) who has had no ownership interest in a home during the last 3 years is eligible
- Full credit for single taxpayers with incomes up to $75,000 ($150,000 on a joint return); partial credit for incomes up to $95,000 ($170,000 joint return)
- available only for the purchase of a single family home that will be used as a principle residence
- home buyers can reduce (or even eliminate) their income tax liability for the year of purchase by claiming the credit on their tax return
- if the home is sold before 3 years, the first time home buyer (who is now the seller) must pay the IRS the entire amount of the tax credit at closing
I short, this tax credit, in addition to presently historically low interest rates and the fact that home prices have become increasingly affordable, make this an ideal time to buy!
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