Home sales are UP

From Fox Real Estate News - sales are up nationwide based entirely on the increased sales activity in the South! I was checking on local statistics and pending sales are up, closings are up, inventory is coming down. All great information if you've been wondering what the market is doing.

Have an ARM?

Loved this post from CNN-Money about whether or not you should refinance your ARM. There are good times to make a decision to do that and get with a fixed rate mortgage and conventional wisdom will tell you that you SHOULD go with the stability a fixed rate mortgage offers you. But sometimes its best to wait and that is what I really liked in this article. Everyone's circumstances are different and its not a good idea to assume you should switch. Take a look at where you are, what your terms are, what you might be looking to do in the next 3-10 years, assess your job situation and your children's needs. THEN you are in a better position to make a call on whether or not to refinance.

And when you do - give me a buzz so I can help you find a GREAT mortgage lender!

Really - Still waiting for prices to fall in Sarasota?

Please watch this from MSNBC's Today Show! Sarasota is the #1 place in the country to be buying a home RIGHT NOW!

Visit msnbc.com for Breaking News, World News, and News about the Economy

Buying Up The Market

I just simply do not care what people say about the next "foreclosure wave". I think its not going to look like bargain hunters hope it will look like. I am of the opinion that if lenders truly are holding onto a "shadow inventory" (see Wall St. Journal for a series of articles on that) then they are going to be strategic about releasing them and not flood the market which is what it would take to drive prices down with any significance.

So what does the "new" market look like. It looks like this. Properties that are truly distressed and the big bargains are snapped up fast. Cash investors are grabbing them before they hit the market or multiple offers are common. When people are buying and pendings are up - we are getting back to normal and that's just hard data.

So count me happy to see people buying!

Timing is EVERYTHING

In the life of a Real Estate Agent are the ups and downs of closings. Wow - real pressure cookers! With the mortgage market the way it is (standards are tighter, requirements are tougher etc) getting to closing is more stressful than ever.

So, the last thing we need is anything else to worry about! But in our world, we have had an issue that is worth talking about again - preclosing credit checks.

Buyers get very very excited as they approach the purchase of their home and many times they want all kinds of fun new things to put in it. In their zeal to get moved in as soon as possible, they will go shopping for furniture, for draperies, for a new lawn mower, etc. And so many places offer them "# days same as cash" - offers that are really good deals.

But Don't Do It, Buyers!

Its not a new thing, this preclosing credit check. Its been done forever. But now it can totally shut down a closing - even after the papers are signed but before the transaction is funded. Lenders will run a credit check at the last minute and if there is new credit activity - even inquiries, lenders will pull the financing.

So the best advise is to wait. Wait until you are closed, the papers are signed, the money has been distributed and the keys are in your hands. Then shop. Shop til you drop! Stimulate the economy and make your new home as beautiful as you can!

We Could All Use Some Good News

Its hard to find good news that isn't offset by bad news when we are talking about the housing market. Depending on who is offering information or where property is located, you could get both sides of the coin in the same day.

Recession information, however, is defined by specific data points that are what they are. If certain financial indicators are down for a specific length of time, you have a recession. Turn some of those around, and you don't.

So when Ben Bernanke says the Recession is Over - then the Recession is Over.

Its important to point out that doesn't mean housing values are about to skyrocket. Its unlikely we'll see the kind of annualized double digit appreciation we saw earlier this decade (and I say good!) but there are increases in showing in home equity and the drops in values have slowed so this is, in my opinion, the end of the bottom.

Waiting for the "Foreclosure Surge"?

Those of us in Real Estate hear a lot of chatter about a "shadow inventory" of homes or that there is an upcoming surge of foreclosed property just waiting to be dumped into the market to bring home prices down even more. Many of our buyers are waiting for this to happen.


A blogger in California who tracks foreclosures believes that won't happen. Sean O'Toole from Foreclosure Truth explains how TARP is impacting the foreclosure market:

In fact the Fed began purchasing direct obligations of Fannie, Freddie and the Federal Home Loan Banks on September 24, and later began purchasing mortgage backed securities. Click here for details on purchases to date from the Federal Reserve Bank. The total has reached nearly $650 Billion. Keep in mind that the total loan value on ALL foreclosed loans in California since this crisis began is under $200 Billion.

For those waiting for this "surge", might be time to take another look!

Value of US housing market grows first time in three years

According to this CNN article the worst could be over. For the first time in three years homes prices on a monthly basis actually grew.

Read More

Time to Jump In?

I found this article today from CNNMoney. It speaks to something we are seeing with our out of town clients - they are starting to buy their retirement home now.

One of our clients looked for over 2 years before making the jump last December. They paid attention to prices in areas where they had an interest and felt they were truly getting a good deal. They don't rent it - but they come down frequently and use it and in a couple of years they are going to become new residents. All their ducks feel in a row.

The advise in the article is good and its exactly what we would say to our clients so please take a moment and read it. We are happy to answer your questions!

The ins and outs of shortsales

Many of us have now become familiar with the term “short sale” in the context of the current real estate market. For those less familiar, this is a transaction where the seller agrees to sell the property for less than the balance owed on the seller’s mortgage. This is subject to the approval of all lien holders on the property, to the short payoff and release of the lien encumbering the property to enable the seller to deliver clear title to the buyer. Read more about it in the Bradenton Herald

Walk In Showers

While this might not seem like the biggest thing in the world, I am reminded of a woman to whom I was showing property to a few years ago. She had bad knees and other health issues. She HAD to have a walk in shower in the owner's bathroom. Those big soaky tubs were completely useless for her. Now I have had other occasions to show homes where the Buyer HAD TO HAVE a soaky tub (my word for those garden tubs - oversized bathtubs that are deep and relaxing). I have always had the sneaking suspicion that this more of a status issue rather than a use issue. So I feel somewhat vindicated by that article I've linked to. Soaky tubs can become passe. What I think tho this article isn't saying is that we are AGING and that climbing in and out of a tub is a difficult thing when that happens! Frankly, given a choice, I'll take a really big shower with lots of shower heads any day!

Market Statistics - Dull but Promising!

When we start spouting off numbers to our clients, its always with the hope we don't put anyone to sleep!! Its important tho, when buyers are making decisions about offers and jumping in that they feel they are doing it with all the available information the can amass. Its also important that our clients feel comfortable that we are giving them objective data. Well, the Case-Shiller index is about as conservative as they get and even they see good news.

So please take a minute and read this article from Realty Times.

Get Your Jumbo Here

While we are all looking at lower prices for homes its hard to imagine that anyone would want or need a "jumbo" loan. A jumbo loan is one that exceeds the FHA insured guidelines - which varies from location to location. Here in Sarasota a jumbo is a loan over $500k. It has been difficult to get a jumbo loan. Interest rates are typically higher and they get a lot of attention. Those factors have depressed the high end market.

This then is good news:

Jumbos Getting Easier to Find and Negotiate

We have had clients who have wanted to get homes in the higher price range but were having difficulty with the financing. Well let's hope this news is greeted with excitement!

A New Day for Sarasota Home Buyers Guide Blog

Hello Blog Readers! I am a New Blogger on the Sarasota Home Buyers Guide Blog and I am so excited to get started! I'm hoping to bring great information to you all about what's happening in the Real Estate world, in Sarasota, Florida and, frankly, our every day Real Estate life.

For example, the past couple of months have been interesting to say the least! Information from various sources send a real mixed signal about the state of the real estate market both locally and nationally. While sales across the country are generally up over comparisons to last year, we are all aware that average sale prices are down. Great news for first time homebuyers is that prices are down AND the Federal Government has been offering them an $8000 tax credit towards the purchase of a new home. However, interest rates have crept up making it tough to afford the monthly payment.

See what I mean?

So what do you need to know as a homebuyer? First, everything is relative. You can't sell a house for more than everyone else is selling for and expect to get a house for less than anyone is willing to take. Would be nice but not realistic! Second, you think you should wait to buy a home because prices might fall but frankly, unless we're planning on PAYING you to buy one, what's another 10-20%? You want a house and think prices will fall - make an offer less that percentage and you've gotten ahead of the curve! What happens if they don't go down? You've lost and this is a toughie, And third - let's be sure we never get to this place again and buy a home you can afford now, and want to invest in. Be smart.