Sharon J Kelly agrees that now is the time to buy 2010 Real Estate in Port St Lucie
January 5, 2010 by admin
Filed under Buyers, Current Events, Foreclosure News, New Homes, Short Sales
The jumbo mortgage market will probably see some programs re-introduced, but underwritten more conservatively with larger down payment requirements. No income verification programs may return at premium rates, but from sources other than conventional lenders. No asset verification problems are unlikely.
The market should pick up early this year and slow by summer as government incentives end and pent up demand is satisfied and/or rates go up. Then, I expect a steady market through the end of the year with a typical seasonal fall and winter price fluctuations.
The inventory of good properties is likely to increase this spring, but I expect a shortage of good inventory. Buyers will be fussy or sit it out until the right property becomes available at the right price.
That should lead to some appreciation and bidding wars, then flat values, maybe even a price rollback in the fall-winter market.
Most lenders won’t dump foreclosures onto the market. They’ll be slowly released or sold in packages.Rules for short sales will become more standardized.
Mortgage guidelines will tighten then relax. Some may become specific to certain types of markets.
Mortgage workouts will be practiced by attorneys that master them. Most lenders will modify only as a last ditch effort to save money.
Interest rates will go up, but probably not as high as many are predicting, possibly due to government intervention.
Financing will be available to those that meet traditional “pre-boom” underwriting guidelines and have the credit score, down payment and job security lenders want to see.
Some seller financing is likely to become more prevalent, especially toward the higher end of the market and in the small multi-family and investment property market.
Residential buyers will buy because they need a long-term place to live and want to control their own environment and costs. Investors will buy for the long term to lock in today’s rates.
2009 seemed like a wild ride on a big, long roller coaster. I don’t know anyone that was sad to see 2009 end. Unless we have a major economic or military surprise this year, I expect that 2010 will be more like a ride on the kiddie coaster. There will be ups and downs and we will hit bumpy spots along the way, but we’ll adjust. People will continue to buy and sell real estate for the same reasons that they have for centuries…….and the debate over where prices will go will continue, especially on this blog.
Sam Schneiderman, Broker-owner of Greater Boston Home Team shares what he expects to see on the job in 2010.
Government owned homes (HUD foreclosures) provide exceptional value in today’s economy
November 12, 2009 by admin
Filed under Buyers, Current Events, Financial News, Foreclosure News, New Property Listings, Property Deals
If the house you are interested in is a Housing and Urban Development (HUD) foreclosure, then it was last purchased with an Federal Housing Administration (FHA) mortgage. The Federal Government insured the loan, making the previous FHA loan possible. By insuring the loan the Federal Government agrees to repay the Lender for all money lost by the lender in case the property is foreclosed on. It’s a good deal for the Lender as their investment is 100% insured. The Federal Government protects itself by collecting on each transaction of a federally financed property a Mortgage Insurance Premium (MIP) at the time of purchase. The MIP is 2.25% of the mortgage amount and is helpful in several ways.
Because the MIP is charged, the FHA can allow a purchaser to reduce their initial out of pocket cash expenditure from 5% to 3% of the purchase price, making it possible for many more Americans to buy homes. HUD reports in their mission statement that home ownership for the majority of Americans is their goal and that has proven to be the driving force behind their decisions and directives since their inception.
The MIP is pooled with all the other premiums and allows the Federal Government to continue helping homebuyers save money on their homes by keeping the costs down for homebuyers.
Benefits of buying an FHA Foreclosure
- No Appraisal required
- Instant equity
- Flexible Credit requirements
- Low money down.
- HUD will pay all closing costs. (Up to 5% in some states)
Hundreds of government owned homes for sale on the Treasure Coast mean a buyer can experience significant savings and enjoy a selection from a wide variety of locations.
For more information on government homes on the Treasure Coast, call Sharon Kelly Realty, 1800-778-8335.
Mortgage Rates Highest in 25 Weeks
Mortgage rates are on the rise. Property values have hit a new low. If you haven’t already done so, now would be a good time to lock-in a mortgage rate.
Mortgage Rates Hit 25-Week High
Mortgage rates across the board jumped this week, with conventional mortgages reaching their highest point so far this year.
Freddie Mac reports a jump in the 30-year fixed mortgage rate to a 25-week high of 5.29 percent during the week ended June 4, up from 4.91 percent the prior week. As recently as two months ago, rates had been 4.78 percent.
The 15-year fixed rate also increased, rising to 4.79 percent from 4.53 percent, with Freddie Mac chief economist Frank Nothaft indicating that the gains follow a surge in long-term bond yields.
Meanwhile, the five-year adjustable mortgage rate climbed to 4.85 percent from 4.82 percent, and the one-year ARM surged to 4.81 percent from 4.69 percent.
Source: Chicago Sun-Times, Francine Knowles (06/05/09)
COURTESY: NewsGeni.us
$8K First-Time Homebuyer Credit Signed into Law
Great News for First-Time Homebuyers in Florida!
– Gov. Charlie Crist signed the budget bill (SB 2600) today that lays out how the state will spend its $65.6 billion in the fiscal year that starts July 1. Included is $30.1 million for the Florida Homebuyer Opportunity Program, which will help with downpayment assistance.
Beginning July 1, those who quality for the federal $8,000 first-time homebuyers tax credit will be able to apply for downpayment assistance before they close on the purchase of their home, and then repay the amount borrowed when they get their tax refund. The program will operate through local county housing administrators, though details are still being worked out.
The state spending plan passed today also includes the following for real estate-related programs:
• Up to $400,000 to prevent, combat and publicize the dangers of unlicensed real estate activity in Florida.
• $540,000 to continue and complete a study to make recommendations on passive strategies on nitrogen reduction that complement the use of onsite wastewater treatment systems.
• $3 million in the Real Estate Trust Fund for the Education and Research Foundation.
• A reduction in the eviction filing fees from $265 to $180 – the only fee reduction in the 2009-10 budget, and one with a negative fiscal impact of up to $36 million.
© FLORIDA ASSOCIATION OF REALTORS
Condos are a Great Buy!
The price of condos in Palm Beach and Broward counties has dropped to levels not seen in the industry since 2003. This creates a great opportunity for investors or for people looking for vacation homes.
– Steve Economou last month paid $157,000 cash for a fully furnished two-bedroom condominium at Boca Teeca, a short bike ride from the ocean in Boca Raton.
The suburban Boston investor took advantage of plunging prices to buy a second home in Florida.
“It’s the greatest feeling in the world,” he said.
Bargain hunters such as Economou are driving condo sales as the median prices in Palm Beach and Broward counties have tumbled below $100,000, prices not seen since 2003.
Still, condo mortgages are harder to get these days, the result of new lending policies that reduce the pool of qualified borrowers and limit them to buildings that have been left mostly unscathed by the housing bust.
As a result, certain condo buyers are opting to pay cash and conducting detailed evaluations of the developments, trying to avoid places rife with foreclosures that may haunt them after they move in.
“There are some fabulous buys out there, but you have to assess the building you’re buying into,” said Lisa McKeon, who handles sales and leasing at The Whitney, a condo development near CityPlace in downtown West Palm Beach. “That’s just as important as the price you pay for the unit.”
Before he bought, Economou had his real estate agent, Frank Thomas of Bal Harbour-based Condo Vultures, look into Boca Teeca’s financial condition.
Thomas scanned the local Multiple Listing Service and saw that less than 10 percent of the 420 units in the development were for sale. He also reviewed Condo Vultures’ foreclosure database and saw that only a handful of the units were bank-owned or on the verge of it. Any buyer can review this database for a fee.
Thomas pored over the development’s financial documents and interviewed condo association board members. When he and Economou visited the condo property, Thomas searched for cracked sidewalks, peeling paint or roads that need to be repaved. He didn’t find any.
Convinced that Boca Teeca was a solid investment, Thomas recommended that his client buy the condo in the 37-year-old development.
Lorraine and Peter Snarberg recently sold their four-bedroom Wellington house, buying a two-bedroom unit in the 55-and-over Cresthaven development near West Palm Beach in March.
The two schoolteachers nearing retirement paid $70,000 for the condo, taking out a $50,000 conventional mortgage. The couple said they have excellent credit, so they were surprised their lender, SunTrust, conducted such a thorough financial review of the complex before agreeing to make the loan.
“It’s kind of like a deterrent for people” to buy condos, Peter Snarberg said. The region’s overbuilt condo market cratered after the housing boom of 2000 to 2005. Speculators were stuck with units they couldn’t sell and lost them in foreclosure. Prospective buyers sued to get out of their contracts or simply walked away.
With thousands of empty condos in South Florida, condo associations are facing steep financial shortfalls. To compensate, the condo boards are raising fees and imposing special charges on the owners who remain. Some building owners have resorted to leasing units to fill them.
Buyers are determined not to inherit those headaches.
Elizabeth Gross was impressed with the prices at The Plaza at OceanSide in Pompano Beach. Condos in the 17-story building along State Road A1A are listed for sale for about $400,000, less than half of the $900,000 or more they were selling for a few years ago. But much of the tower is vacant now, said Gross’ real estate agent, Beverly Rothstein of RE/MAX Professionals in Coral Springs. Rothstein advised her to look elsewhere, afraid that her client would make a deal she’d later regret. A spokeswoman for the builder, WCI Communities, declined to comment on the number of vacancies in the development.
“The condos themselves were very nice,” Gross said. “But it was kind of drab inside the building. There weren’t a lot of other people around.”
Hoping to limit risk in a sector that is reeling, lenders have become more careful about issuing condo loans. Ultimately, that could slow the brisk sales pace in Palm Beach and Broward counties. Sales of existing condos have increased for 12 consecutive months in Palm Beach County and seven straight in Broward, according to the Florida Association of Realtors.
Buyers who want a mortgage backed by the Federal Housing Administration can put 3.5 percent down as long as they buy in financially sound buildings approved by the agency. For developments not endorsed by the FHA, borrowers who have a willing lender can try to negotiate a last-minute approval with the agency. Meanwhile, condo buyers who choose conventional loans usually have to put down 20 percent, more than most people buying single-family houses.
Fannie Mae, the government-run company that purchases the majority of the nation’s mortgages from lenders, generally won’t buy loans in condo buildings in which more than 15 percent of the owners are late on their association fees. Also starting in March, Fannie Mae requires 70 percent of units in a new building be presold, up from 51 percent.
The company, which makes exceptions, wants to maintain a stable source of mortgage capital, but it also has a responsibility to protect buyers and taxpayers, said Amy Bonitatibus, a Fannie Mae spokeswoman.
Summer Greene, 2009 treasurer for the Florida Association of Realtors® and managing director for Prudential Florida 1st Realty in Fort Lauderdale, said she understands the need for the government to restrict condo lending but thinks it has an unintended adverse effect on the market.
“If a building is in trouble and a buyer can’t get a loan, then it means the building will continue spiraling down,” Greene said.
Home & Condo Sales In Florida on the Rise
May 13, 2009 by Judy
Filed under Buyers, Current Events
Florida’s existing home, condo sales rise in 1Q 2009
Sales of existing single-family homes in Florida rose 25 percent in first quarter 2009 compared to the same period a year earlier, according to the latest housing statistics from the Florida Association of Realtors® (FAR). A total of 31,412 existing homes sold statewide in 1Q 2009; during the same period the year before, a total of 25,071 existing homes sold. It marks the third consecutive quarter that Florida has reported higher existing home sales; sales levels in the third and fourth quarters of 2008 were higher than the corresponding three-month period of the previous year, according to FAR.
Sales of existing condominiums statewide in the first quarter rose 19 percent compared to the same time the previous year. This marks the second three-month period for increased statewide sales in both the existing home and condo markets compared to year-ago levels.
Statewide sales activity in 1Q 2009 also increased over 4Q 2008’s sales figure in both the existing home and existing condo markets, FAR records show. For 1Q 2009, statewide sales of existing homes rose 4.14 percent over the 4Q 2008 figure; existing condo sales statewide in 1Q 2009 increased 21.1 percent over the 4Q 2008 level.
“Many first-time homebuyers are entering the market now to take advantage of current low mortgage rates, plentiful housing inventory and affordable homeownership opportunities,” says 2009 FAR President Cynthia Shelton, CCIM (Certified Commercial Investment Member). “Typical homebuyers are realizing that now is the time to buy – they can find the Florida home of their dreams at a cost they can afford. Homeownership has always offered a wide range of benefits, including building financial security and increasing a sense of community, but the advantages offered in today’s market are unique.”
One such advantage is a dream come true for first-time homebuyers in Florida, she adds, thanks to a new program that the 2009 Florida Legislature approved through the adoption of the state’s general budget last week. Lawmakers passed a provision setting aside $30.1 million for the Florida Homebuyer Opportunity Program, which will help with downpayment assistance. Beginning July 1, those who qualify for the federal $8,000 first-time homebuyers tax credit will be able to apply for downpayment assistance before they close on the purchase of their home, and then repay the amount borrowed when they get their tax refund.
Shelton adds, “The beauty of this program is that the state will be paid back and, conceivably, more potential homebuyers could take advantage before the Dec. 1, 2009, expiration of the $8,000 federal first time homebuyer tax credit. While details of the program are still being worked out, we are all very excited about the incredible opportunity this offers for thousands of Florida families. It’s $8,000 more reasons to buy your first Florida home!”
Fifteen of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in the first quarter compared to the same three-month-period a year earlier, while 12 MSAs showed gains in condo sales.
The statewide existing-home median sales price was $141,000 in the first quarter; a year earlier, it was $202,300 for a decrease of 30 percent. 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 a typical market price where half the homes sold for more, half for less.
In the year-to-year quarterly comparison for condo sales, 10,143 units sold statewide for the quarter compared to 8,554 in 1Q 2008 for a 19 percent increase. The statewide existing-condo median sales price was $110,100 for the three-month period; in 1Q 2008, it was $177,000 for a decrease of 38 percent.
Continuing low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5.06 percent in 1Q 2009; one year earlier, it averaged 5.88 percent.
© 2009 FLORIDA ASSOCIATION OF REALTORS
New Homebuyers Get a Boost From New Program
April 23, 2009 by Judy
Filed under Buyers, Current Events
Good News for First-Time Homebuyers
TAMPA, Fla. – April 22, 2009 – Experts say it’s a first-time homebuyer’s market. Low interest rates and falling housing prices are good news for renters ready to make a move, and one local group aims to help such buyers through the process – from securing a mortgage to coming up with the cash to make a downpayment on the home of their dreams.
The Realtors Care Foundation, a nonprofit arm of the Greater Tampa Association of Realtors, was established in 2007 to provide educational and housing programs and services to Hillsborough County residents.
The group recently launched a downpayment assistance program to help prospective first-time homebuyers.
“People who want to purchase a home in Hillsborough County need to be aware that we are here to help,” said Jim Selvey, foundation president.
To qualify for the program, applicants – first-time homebuyers or those who have not owned a home in the past three years – must purchase a single-family house, condominium or townhouse and meet income limits established by the U.S. Department of Housing and Urban Development.
Applicants also must agree to remain current on property taxes and homeowner association fees and certify that they will remain owners for a minimum of five years.
The group holds fundraisers and solicits private donations to fund the program. Grants are reviewed and awarded by committee.
“The goal is to help as many as we can,” Selvey said.
The foundation will hold a golf tournament to benefit its charitable programs May 28 at Buckhorn Springs Golf and Country Club in Valrico. Registration includes 18 holes, cart and lunch and costs $90. To sign up, contact Sarah Hepburn at (813) 879-7010.
For information about the Realtors Care Foundation or down-payment assistance grants, call (813) 879-7010 or go to www.realtorscareofgtar.org.
Copyright © 2009 Tampa Tribune, Fla., Laura Frazier. Distributed by McClatchy-Tribune Information Services.
Courtesy Florida Association Of Reators
