I know I sound like a broken record every time I blog these days, but the indicators seem to be pointing the Sarasota market in the right direction. My last 7 or 8 blogs regarding the state of the market locally have been generally favorable. That is a marked change over the past few years when looking at the overall market her.
Even nationally, news seems to be indicating a bottoming out in the housing market. Sarasota saw another rise in units sold in October. Sales of condos rose 10% in October with over 250 units changing hands in Sarasota-Bradenton. There is still some pressure (1.5% decrease in prices from September) on pricing, but it seems to be leveling off.
Most of the pressure seems to be coming from the banks who have gotten their acts together and are slowly releasing some of their inventory back onto the market. That will continue to put pressure on market prices, but could begin to ease in 2013 as they begin to get absorbed by buyers.
But with all the publicity that Sarasota has gotten over the past few months, mortgage rates still at historic lows, no major hurricanes for the last 6 years, no state income tax, and the great weather, we should see lots of folks looking for properties during the season.
Happy Holiday House Hunting!!!
Wednesday, December 7, 2011
Sunday, November 20, 2011
Sarasota Leading the Pack as market begins to rebound
Sarasota had, until recently, been on the receiving end of many articles that did not depict the Sarasota housing market in a favorable light. The content of most article seemed to be pushing us further into the real estate abyss. it was as if we might never recover. But in a shocking turn of events, the paper has founds ways to now put a new spin on the housing market. A recent article seemed to suggest that Sarasota was on the rebound, not only in terms of inventory, but in the rise of the median sale prices.
Not only that, but there seems to be some sentiment out there that Sarasota could be poised for an exceptional season. There have been more than twice as many inbound searches, in metro areas that include Sarasota- where prices have fallen by more than 50%- for properties than outbound, suggesting that Sarasota has become a hot spot for people looking to move to Florida. The numbers are eye-popping!! With people feeling more confident about the economy and more people not sure what is going to happen to the Euro, real estate, because it has been so depressed, will give people a moment to pause and consider the benefits of having a house in Sarasota.
5 years from now, if you purchase, you will look back and say you made a wise investment! You will look like a genious to your friends who did not get off the fence and make a decision to purchase in the Sarasota area.
Not only that, but there seems to be some sentiment out there that Sarasota could be poised for an exceptional season. There have been more than twice as many inbound searches, in metro areas that include Sarasota- where prices have fallen by more than 50%- for properties than outbound, suggesting that Sarasota has become a hot spot for people looking to move to Florida. The numbers are eye-popping!! With people feeling more confident about the economy and more people not sure what is going to happen to the Euro, real estate, because it has been so depressed, will give people a moment to pause and consider the benefits of having a house in Sarasota.
5 years from now, if you purchase, you will look back and say you made a wise investment! You will look like a genious to your friends who did not get off the fence and make a decision to purchase in the Sarasota area.
Thursday, October 20, 2011
Luxury Home Sales On the Rise
High-end Seller's may finally have something to smile about with regards to sales in the $1 million-plus-market. Everyone has been waiting for some good news and it seems that the tide has started to turn...slowly, at least. Sales in the higher end showed a 42 percent increase from August to September and were up a whopping 170% over the same time last year as reported by MSC.
The market has also seen the number of pending contracts increase, too. Nearly a 77% increase from last year.
What is also interesting is that home sales are down 23% from last year. This suggests that the market is continuing to find its balance. If these numbers hold true, we are likely to see small increases in property values.
With a strong inventory of homes over $1 million dollars, Sarasota is primed to move a large number of homes during the upcoming season. And with rates hovering around 4%, there may not be a better time. People will look back in 5 years and will look like geniuses.
The market has also seen the number of pending contracts increase, too. Nearly a 77% increase from last year.
What is also interesting is that home sales are down 23% from last year. This suggests that the market is continuing to find its balance. If these numbers hold true, we are likely to see small increases in property values.
With a strong inventory of homes over $1 million dollars, Sarasota is primed to move a large number of homes during the upcoming season. And with rates hovering around 4%, there may not be a better time. People will look back in 5 years and will look like geniuses.
Monday, October 17, 2011
Importnat Information about Bank Of America Short Sales
Both Buyer's and Seller's are always looking for more information about the short sale process and how they work so that they can have their eyes wide open when they choose to sell their home as a short sale or what they need to know when entering into a contract to purchase a short sale. In either case, you may sometimes need the patience of Job. I have had a short sale take as long as 16 months, or I have seen approvals in less than a month.
Here are some details as it regards to Bank of America Short Sales:
1. They want to know there is a TRUE hardship and the net proceeds are very important.
2. Investors do not care if it is a cash transaction or financed.
3. Case loads, at the height of the crisis, were nearly 600 per agent assigned to a file. that number has dropped to just over 100 cases per negotiator.
4. People want to know how long the process will take. The average number of days from start to an approval is about 50 days. HAFA (Home Affordability Federal Assistance) can take almost twice as long or longer.
5. Borrowers in the HAFA program usually receive $3,000 for relocation. Those funds can now be used to pay off 2nd liens, HOA fees, money used towards the deficiency, etc.
6. BOA has a new program that they have rolled out where they are offering $20,000 for the Seller to move out of the house. You must not have an offer on the house and you must apply between 9/26-11/30/11. It is a short window of opportunity, but it is a great incentive to move.
7. A great number of people are not aware that most banks are not the investor with a loan. They are the SERVICER of the loan and really stop making money once the loan has stopped being paid. A loan may have more than one investor. It could be a pension fund in Australia that only meets quarterly and therefore, it take a great deal of time to get these transactions completed. Some investors cannot agree on an acceptable amount for the short sale. Once you counter on an offer, it may involve several parties that need to agree in order to get a final approval.
8. Structural damage to a property requires that the Seller file a claim with their insurance company in order to have repairs completed prior to a sale.
9. A BPO (Broker's Price Opinion) is completed once a contract is in place. These will normally be valid for 90-120 days. Banks will also complete full appraisals on certain properties. As a Buyer or Buyer's agent, the BPO is the property of the banks and will not be released.
As I have seen over the past few years, these rules are always in flux. They can change daily. But, if you are patient enough, there are some very good deals in the Sarasota market.
Here are some details as it regards to Bank of America Short Sales:
1. They want to know there is a TRUE hardship and the net proceeds are very important.
2. Investors do not care if it is a cash transaction or financed.
3. Case loads, at the height of the crisis, were nearly 600 per agent assigned to a file. that number has dropped to just over 100 cases per negotiator.
4. People want to know how long the process will take. The average number of days from start to an approval is about 50 days. HAFA (Home Affordability Federal Assistance) can take almost twice as long or longer.
5. Borrowers in the HAFA program usually receive $3,000 for relocation. Those funds can now be used to pay off 2nd liens, HOA fees, money used towards the deficiency, etc.
6. BOA has a new program that they have rolled out where they are offering $20,000 for the Seller to move out of the house. You must not have an offer on the house and you must apply between 9/26-11/30/11. It is a short window of opportunity, but it is a great incentive to move.
7. A great number of people are not aware that most banks are not the investor with a loan. They are the SERVICER of the loan and really stop making money once the loan has stopped being paid. A loan may have more than one investor. It could be a pension fund in Australia that only meets quarterly and therefore, it take a great deal of time to get these transactions completed. Some investors cannot agree on an acceptable amount for the short sale. Once you counter on an offer, it may involve several parties that need to agree in order to get a final approval.
8. Structural damage to a property requires that the Seller file a claim with their insurance company in order to have repairs completed prior to a sale.
9. A BPO (Broker's Price Opinion) is completed once a contract is in place. These will normally be valid for 90-120 days. Banks will also complete full appraisals on certain properties. As a Buyer or Buyer's agent, the BPO is the property of the banks and will not be released.
As I have seen over the past few years, these rules are always in flux. They can change daily. But, if you are patient enough, there are some very good deals in the Sarasota market.
Thursday, October 13, 2011
Inventory of Homes on the Decrease
I remember the year well. It was September of 2007. I had gone to do some research for a client in the realtor's MLX system, a system that lets us track information about the number of listings that are on the market. It was a quiet morning until I hit the button that showed me how many total listings there were in Sarasota County. the search included all active listings of single family homes, vacant land, condos, etc. The number that appeared was so unbelievable that I started my search over again in the hopes that I had been tricked by the data I had inserted. Same data had the same results: 17,823 listings. The numbers were so staggering that I turned off my computer. At that rate, the time that it would take to sell all the inventory at the rate of absorption for 2007, it would have taken over 3 years to sell all the inventory. That would have to take into account that no other listing would come on the market during that same time.
Fast forward to September 2011. In Sarasota County, there are 6,305 homes for sale verses almost 9,000 last year at the same time. In Manatee County, there are 4,348 houses for sale versus 6,200 last year. In other words, the inventories in our area continue to drop. These numbers are starting to tell us that we are almost at a 6 month supply of homes, a level that is considered healthy. the biggest drops took place in Lakewood Ranch and Siesta Key.
I can;t speak to the number of houses that banks are holding back from the market, but one does get that feeling that housing is finding its footing in Sarasota.
Fast forward to September 2011. In Sarasota County, there are 6,305 homes for sale verses almost 9,000 last year at the same time. In Manatee County, there are 4,348 houses for sale versus 6,200 last year. In other words, the inventories in our area continue to drop. These numbers are starting to tell us that we are almost at a 6 month supply of homes, a level that is considered healthy. the biggest drops took place in Lakewood Ranch and Siesta Key.
I can;t speak to the number of houses that banks are holding back from the market, but one does get that feeling that housing is finding its footing in Sarasota.
Wednesday, October 5, 2011
Shortsale or Foreclosure for the Seller?
Many people today are asking whether they should continue making their payments on their homes. We are tied into the idea that it is the right and honorable thing to do and so much of our identities and sense of self-worth are connected to our credit score. Having a great credit score enables people to negotiate rates and determine what classification of Buyers they wish to be. At the other end of the spectrum, people with lower scores are typically going to pay more for certain items.
Putting all that aside, the question for many people should be: Is a Short Sale of a Foreclosure better for me? The answer seems obvious, but I see so many people ignore the sensible answer. A recent article helped solidify my feeling that if you are able to do a Short Sale, you should. Now, I know everyone has a different set of circumstances, but for the average person, the answer is clear: Short Sale.
Below is an article about this very topic. I hope you enjoy and think twice before just walking away from your mortgage.
Putting all that aside, the question for many people should be: Is a Short Sale of a Foreclosure better for me? The answer seems obvious, but I see so many people ignore the sensible answer. A recent article helped solidify my feeling that if you are able to do a Short Sale, you should. Now, I know everyone has a different set of circumstances, but for the average person, the answer is clear: Short Sale.
Below is an article about this very topic. I hope you enjoy and think twice before just walking away from your mortgage.
Short Sale vs. Foreclosure: A Short Sale Always Wins
We are again honored to have Christopher Reale, Director of Short Sale Operations at Lepizzera and Laprocina Title and Escrow Services, as today’s guest blogger. He is an expert on the short sale process and will share his knowledge with us on a regular basis. – The KCM Crew
Today’s ever changing real estate industry has brought upon some very challenging questions from our clients. We as counselors, want to put forth the best, non-emotional advice that we can, in hopes that we can help our clients and their families navigate the rough waters of the short sale process.
The most prevalent question and one that continues to permeate the industry is:
“Why should a seller go through the short sale process rather than letting their house be foreclosed upon?”
While we cannot speak to every client circumstance, we can say one thing with complete conviction. In almost all instances in which a potential seller is contemplating whether they should short sell their house or let it go through the foreclosure process, a short sale is the better option. The following are examples to consider:
Example A- Short Sale
Mr. Smith owns a home in which he has a mortgage balance of $220,000 and a current market value of $150,000. Mr. Smith has elected to short sell his property. His Realtor successfully obtains a buyer who puts forth an offer price of $120,000 (80% current market value according to Realty Trac Foreclosure Report 5/26/2011). After reviewing the buyers offer and the financial hardship information from Mr. Smith, Mr Smith’s bank agrees to accept the short payoff of $120,000 which would leave a deficiency balance of $100,000.
The transaction closes and is final. Mr. Smith then pulls his credit report 30 days after the transaction takes place. On the report he notices that the mortgage trade line states “Mortgage debt was settled for less than full” and the balance on the mortgage is $0. Mr. Smith is now on the road to financial recovery.
Example B- Foreclosure
For the ease of illustration we will use the same value and mortgage debt amounts as in Example A. However, Mr. Smith has elected to forgo the short sale process and let the bank foreclose on the property. The bank holding his mortgage facilitates the proper legal procedures to foreclose on the property, all of which are costly. Mr. Smith is notified and his property foreclosed upon of which is taken back by the bank to sell as an REO.
Six months later, the bank finally sells Mr. Smith’s home only they sell it for $90,000 (60% of current market value according to Realty Trac Foreclosure report dated 5/26/2011). Remember, as a short sale, the home would have sold for $120,000 keeping the deficiency to $100,000. In addition to the deficiency now being $130,000, the bank has elected to add on legal costs of $15,000 and asset preservation costs of another $5000 for a total deficiency liability of $150,000. Mr. Smith pulls his credit report 30 days after being notified that the bank has sold his property and of his liability.
On the report he notices that the mortgage trade line states “Foreclosure” and the balance is $150,000. Because of Mr Smith’s choice to choose foreclosure vs. short sale his road to financial recovery has taken a major detour. He not only has a foreclosure on his credit report but now has a much larger deficiency balance in which the bank, in most cases, will report on his credit report as a balance owed.
The Best Option is Clear
While the financial and credit advantages are clear when choosing a short sale over a foreclosure, other advantages are sometimes overlooked. The most important of all of them is maintaining the seller’s dignity and peace of mind. We have heard too many stories of families having to leave their homes because of a Sheriff’s order or some other type of legal action. The short sale process alleviates this negative social impact. The process puts the control back in the seller’s hands so that they can get back on the road to financial recovery and start providing for their families. In the battle of the two evils, a short sale always wins!!!
Tuesday, September 20, 2011
Foreign Buyers Are Driving Sarasota Market
It seems that more and more buyer's in the Sarasota market are from somewhere outside of Sarasota. Many Buyer's today are coming from places like Canada, Germany, Britain, and France, along with others. The percentage of foreign owners has increased 34% over the past 3 years. While this might seem startling, one must remember that places that are rich in resources, like Canada, have seen their personal wealth increase, and the value of the Canadian dollar is now on par with the US dollar. It makes sense that it costs less to live in Sarasota now than it might in Canada.
The Euro, while facing pressure, has remained quite strong. With more pressure on the Euro, Europeans may begin moving their money out of the Euro and into properties in places like Sarasota. With the downward movement of property values still pressuring the market, many people are positioned well to take advantage of the depressed market.
These factors, along with historically low mortgage rates, makes this the right time to be moving into the Sarasota market.
To this end, The Herald Tribune wrote an article about the impact of the foreign Buyer in Sarasota. To read the article, go to the link at http://db.tt/uldKVQz.
The Euro, while facing pressure, has remained quite strong. With more pressure on the Euro, Europeans may begin moving their money out of the Euro and into properties in places like Sarasota. With the downward movement of property values still pressuring the market, many people are positioned well to take advantage of the depressed market.
These factors, along with historically low mortgage rates, makes this the right time to be moving into the Sarasota market.
To this end, The Herald Tribune wrote an article about the impact of the foreign Buyer in Sarasota. To read the article, go to the link at http://db.tt/uldKVQz.
Wednesday, September 14, 2011
Rates Just Keep Falling!!
After all the recent political haggling and the potential fallout from the last minute agreement regarding the debt ceiling, I was one of those that certianly was skeptical about the direction of interest rates. It looked as though they had no place to go but up. To my surprise, and I am sure to many others, the rates have not only stayed flat, they have continued to fall. Whether that leads to a rush on re-financing or new purchases, is not clear yet, but it certainly has not hurt that the rates are still at historic lows.
I was at the Signature Sotheby's company meeting yesterday and we heard from The Penny Hill Group regarding rates. The numbers I heard were astounishing. Here are the numbers for jumbo loans:
3 year arm was at 3.00 %
5 year arm was at 3.75%
30 year fixed was at 4.625%
Those are pretty amazing numbers!! I had heard recently that those same numbers were even lower last week. Conforming rates are even lower in some instances.
If you are even thinking about buying, now is a great opportunity! Prices are depressed, but may have it the bottom in Sarasota, and rates are attractive. Don't wait too long!! You will have missed the window of opportunity and will regret that you got caught on the upswing of rates and home prices.
I was at the Signature Sotheby's company meeting yesterday and we heard from The Penny Hill Group regarding rates. The numbers I heard were astounishing. Here are the numbers for jumbo loans:
3 year arm was at 3.00 %
5 year arm was at 3.75%
30 year fixed was at 4.625%
Those are pretty amazing numbers!! I had heard recently that those same numbers were even lower last week. Conforming rates are even lower in some instances.
If you are even thinking about buying, now is a great opportunity! Prices are depressed, but may have it the bottom in Sarasota, and rates are attractive. Don't wait too long!! You will have missed the window of opportunity and will regret that you got caught on the upswing of rates and home prices.
Tuesday, September 6, 2011
Good Things Happening in the Sarasota Market
Just when lots of folks thought the real estate market would settle into its summer doldrums around here, I was of the impression that the market was going to be quite busy, and it seems that I was correct, for once.
Judy Green, President and CEO of Signature Sotheby's International Realty in Sarasota, reported that this was a "landmark year in the Sunshine State, and especially in greater Sarasota."
The Sarasota Association of Realtors reported that the inventory for houses that are listed for sale was at it lowest point in over 6 years (down from over 17,089 in 2007 to just over 5,000 units today). That puts us in a place we haven't been for quite some time. This is the place we have been striving to land for since the boom ended. To prove the point that the demand is way up, I had a customer make an offer in June on a bank-owned property. When we arrived to look at the property, there were four cars in the driveway and people walking all around the property. We made an offer and discovered that we were 1 of 9 offers. Needless to say, my customer did not get the highest bid. He made another offer two weeks later on a bank-owned property and we found out there were 5 offers that had already been received. My client sent in a higher counter and now has the property under contract. But this is indicative of where the market may be heading in Sarasota.
In the same article, Judy points out that 31% of international buyers, spending some $82 billion dollars, choose Florida as their final destination. Being named the #1 beach in the nation did not hurt us either.
One might be led to believe that only the lower priced homes are selling, but Sarasota Herald Tribune columnist Michael Braga, one who has generally not put Sarasota housing in a good light, recently said, "Drive around Bird Key and you will get the impression that the Great Recession is receding into memory."
Could it be that the times are a changing? Let's hope so.
Judy Green, President and CEO of Signature Sotheby's International Realty in Sarasota, reported that this was a "landmark year in the Sunshine State, and especially in greater Sarasota."
The Sarasota Association of Realtors reported that the inventory for houses that are listed for sale was at it lowest point in over 6 years (down from over 17,089 in 2007 to just over 5,000 units today). That puts us in a place we haven't been for quite some time. This is the place we have been striving to land for since the boom ended. To prove the point that the demand is way up, I had a customer make an offer in June on a bank-owned property. When we arrived to look at the property, there were four cars in the driveway and people walking all around the property. We made an offer and discovered that we were 1 of 9 offers. Needless to say, my customer did not get the highest bid. He made another offer two weeks later on a bank-owned property and we found out there were 5 offers that had already been received. My client sent in a higher counter and now has the property under contract. But this is indicative of where the market may be heading in Sarasota.
In the same article, Judy points out that 31% of international buyers, spending some $82 billion dollars, choose Florida as their final destination. Being named the #1 beach in the nation did not hurt us either.
One might be led to believe that only the lower priced homes are selling, but Sarasota Herald Tribune columnist Michael Braga, one who has generally not put Sarasota housing in a good light, recently said, "Drive around Bird Key and you will get the impression that the Great Recession is receding into memory."
Could it be that the times are a changing? Let's hope so.
Tuesday, January 4, 2011
Welcome to 2011
I hope everyone had a great holiday season. It is now out with the old and in with the new. 2011 looks to be a great year!!
Well, after enjoying freezing weather, I feel like we are getting back to normal here in Sarasota. I only hope that the fish did not suffer as badly this year as they did last year when cold weather settled into our area. Fishing is on my radar, but not until next week. I will try to provide an update.
It is my hope this year to delve into lots of topics. It might get boring to just talk about the water and all that it provides for those who really enjoy the water all the time.
Today, I wanted to highlight a different aspect of Sarasota living: theater. Sarasota was recently recognized in the Wall Street Journal's "Best Theater of 2010" list. Quite a feat for a small city such as ours. I have attached a list of the upcoming productions that will be on tap for 2011. Enjoy!
Asolo Rep’s Life of Galileo Makes Wall Street Journal’s “Best Of 2010 List”
Asolo Rep’s Antigone Now Featured Tonight on Gulf Coast Journal with Jack Perkins
Well, after enjoying freezing weather, I feel like we are getting back to normal here in Sarasota. I only hope that the fish did not suffer as badly this year as they did last year when cold weather settled into our area. Fishing is on my radar, but not until next week. I will try to provide an update.
It is my hope this year to delve into lots of topics. It might get boring to just talk about the water and all that it provides for those who really enjoy the water all the time.
Today, I wanted to highlight a different aspect of Sarasota living: theater. Sarasota was recently recognized in the Wall Street Journal's "Best Theater of 2010" list. Quite a feat for a small city such as ours. I have attached a list of the upcoming productions that will be on tap for 2011. Enjoy!
 |
Asolo Rep’s Life of Galileo Makes Wall Street Journal’s “Best Of 2010 List”
Asolo Rep’s Antigone Now Featured Tonight on Gulf Coast Journal with Jack Perkins
Subscribe to:
Posts (Atom)