The Gate Arty Blog - Selling Archive
Buffet speaks . . . We listen!
Friday, March 05, 2010 - By Gate Arty
Warren Buffet, widely considered an investment genius, believes that “within a year or so, residential housing problems should be largely behind us. Prices will remain far below ‘bubble’ levels, of course, but for every seller or lender hurt by this there will be a buyer who benefits.” Buffet’s belief is that the supply of homes is still far greater than demand, and that it will take another year before demand catches supply. Let’s hope that the ‘Oracle of Omaha’ has this one right!
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Saturday, February 13, 2010 - By Gate Arty
According to the latest survey by the National Association of Realtors (NAR), sales increased from the third quarter in 48 states. Of those states, 32 realized double-digit gains. Existing-home sales, including single-family and condo, jumped 13.9 percent to a adjusted annual rate of 6.03 million in the fourth quarter from 5.29 million in the third quarter, and are 27.2% above the 4.74 million-unit level in the fourth quarter of 2008. It is believed that distressed properties accounted for 32% of fourth quarter transactions. This is a decrease from the 37% a year earlier.
January 2010 Foreclosure Report
Friday, February 12, 2010 - By Gate Arty
RealtyTrac reports that foreclosure rates fell in January compared to December, but remained sharply higher than a year ago. This is thought to be a temporary incident most likely a product of the holiday season & office closings. The number of Americans receiving foreclosure notices was down 9.7 percent in January from December 2009, but 15 percent higher than last January. All told, 315,716 properties generated a foreclosure notice. That means one in every 409 homes in America received a foreclosure notice. The top five states in foreclosures respectively are: Nevada, Arizona, California, Florida, & Utah. Which sate had the least? South Dakota is the winner. Foreclosures don't appaer to be going away anytime soon as a report found one in five US mortgages were “underwater" during the fourth quarter.
Tags: , foreclosure, real estate
90 Day FHA Rule is Waived
Wednesday, January 20, 2010 - By Gate Arty
HUD has taken a major step to stabilize the real estate market by waiving the “90 day flip rule” effective February 1st, 2010. Currently, FHA prohibits insuring a mortgage on a home owned by the seller for less than 90 days. Originally the 90 day rule was put in place to protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at INFLATED prices to unsuspecting borrowers. This act will give FHA borrowers access to a broader array of recently foreclosed properties. The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities. To qualify these conditions must be met:
• All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
• In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.
• The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
This waiver will be a major coup for real estate investors because the pool of available buyers is substantially increased. Before, investors had to wait 90 days before listing a property in MLS or hold a property for 90 days before selling to a FHA buyer – something most are unwilling to do because of holding costs & risks associated with delayed closings. This should be a major shot in the arm & should drastically reduce the “days on market” for home inventory.
Tags: buying, fha, home value, HUD, mls, mortgage, real estate. real estate investor, selling
Home Price Reductions
Wednesday, January 13, 2010 - By Gate Arty
Trulia.com has reported that 21% of the existing housing inventory has had a least one price reduction during its time on the market. The good news is that figure has decreased 2 straight months now. The South leads the nation with 20% of homes seeing price reductions. The luxury home market has been affected the most. Luxury homes are defined as homes listed over $2 million (by Trulia). The average price cut on these homes is 15%. In comparison, homes under $2 million, have been reduced an average of 10%. While luxury homes make up just 2% of the total listings currently, they make up 24% of the total dollar value of price reductions.
Growing Number of Foreclosures
Tuesday, January 12, 2010 - By Gate Arty
Statistics from Lender Processing Services indicate that as of November 30th 2009, one in every 7.5 homeowners either fell into delinquency or foreclosure. The total number of delinquencies reached a record high of 9.97%, a 5.46% increase from the previous month and a 21.29% increase from November 2008. Loans falling into more severe delinquent categories reached 5.01% through November, compared to 1.52% of loans improved toward a current status. That's compared to November’s mortgage monitor report, when 4.02% of current mortgages through December 2008 fell into delinquency by October 2009. The states with the most non-current loans were Florida, Nevada and Mississippi. Those with the fewest were North Dakota, South Dakota and Alaska.
Vacancies Increase in 2009
Friday, January 08, 2010 - By Gate Arty
The apartment vacancy rate ended the year at 8%, the highest level since 1980. This according to Reis Inc., a New York research firm that tracks vacancies and rents in the top 79 U.S. markets. Rents fell 3% last year, according to Reis. Led by major metropolitan cities that experienced brisk growth until the recession. Effective rents -- which include concessions such as one month of free rent -- fell 5.6% in New York last year, the worst since Reis began tracking the data in 1990. Very few markets have been spared. During the fourth quarter, vacancies increased in 52 markets, while they improved in 17 and stayed flat in 10.
Apartments have been squeezed because younger workers, who are more likely to rent, have experienced the brunt of job losses during the downturn. Such oversupplied markets as Florida, Phoenix and Las Vegas are hurting, even though housing sales have picked up. Marcus & Millichap is to release a separate report on Friday that forecasts a further 2% to 3% drop in apartment rents over the next year, most of which will be concentrated over the next six months. One potential silver lining for apartment owners is the fact that many of those developments had secured financing before credit markets seized up, and since the credit crunch has frozen most new development, new apartment completions should fall by half in 2011. However, government efforts to prop up the housing market also threaten the apartment sector by making it easier for some renters to buy homes. Some landlords have reported a slight uptick in renters moving out to buy homes. Thanks to falling home prices and record low mortgage rates, it now costs less to own than it has in the past decade on a mortgage-payment-to-rent basis. But falling rents are expected to offset some of the recent improvement in affordability, making renting more attractive than owning in some markets
Tags: buy real state, construction, real estate, rent, sell real estate, vacancy
The Effect of the $8000 Tax Credit
Friday, September 18, 2009 - By Gate Arty
Has the $8000 home-buyer tax credit increased real estate activity? Well, based on a report from the Internal Revenue Service, over 1.4 million buyers have already claimed the new tax credit. The $8000 tax credit is available to home buyers that purchase a home between January thru December 1st, 2009 and you could not have owned a home for the three consecutive years prior to the purchase. . Unlike the $7,500 first-time homebuyer tax credit that could be applied to sales made between April 2008 and July 1 2009, this refund actually puts money DIRECTLY into consumers' pockets. 1.8 million people are expected to participate in the program by the time it lapses on 11/30/09.
New Homes Sales in July 2009
Monday, August 31, 2009 - By Gate Arty
The United States Commerce Department announced that sales of new construction homes rose 9.6% in July. This is the highest increase in 4 years. The housing sector appears to be showing some signs of stabilization. Regionally, the Northeast saw a 32% rise in sales, while the South saw a 16% rise, and the West saw a 1% rise. Sales did drop 7.6% in the Midwest. With inventory finally beginning to decrease, demand appears to be gaining some momentum. There were 271,000 houses on the market last month, down 35% from July 2008 and the fewest since March 1993. At the current sales pace, it would take 7.5 months to sell all homes.
Sale Increase 4 Straight Months!
Monday, August 24, 2009 - By Gate Arty
Existing home sales rose a whopping 7.2% in July to 5.24 million units. In June, there were 4.89 million units sold. This increase was the largest month-to-month gain in over 2 years! The percentage increase was the largest since 1999. This also marks 4 straight months that we have seen sales increases. Lawrence Yun, NAR chief economist, said, “The housing market has decisively turned for the better. A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales.” Remember that the $8000 stimulus tax credit runs through November so act NOW!
Foreclosure News - 2nd Quarter 2009
Thursday, August 13, 2009 - By Gate Arty
Foreclosures continue to be the driving force in today’s real estate market. In the 2nd quarter, foreclosures & distressed sales accounted for over a third of all sales! According to recent statistics, the rate of foreclosures jumped another 7% in July from June. This also represents a 32% increase from the same time period last year. More than 360,000 homes with mortgages received foreclosure filings in July. This was the highest point since January 2005. California, Florida, Arizona, & Nevada accounted for an astounding 57% of July foreclosures nationwide! Many factors contribute to the tidal wave of foreclosures like: tighter lending guidelines & unemployment, but chiefly responsible is the negative home equity that many homeowners now have. Many homeowners are finding it “easier” to go into foreclosure than ride out the market waiting for values to rebound or restructure the loan.
Homes Sales Increase Again
Thursday, August 13, 2009 - By Gate Arty
Homes sales increased 3.8% in the 2nd quarter of 2009 from the 1st quarter. The annual adjusted rate was 4.76 million in the 2nd quarter & 4.58 million in the first quarter. What is accounting for this rise in activity? No doubt, the great values in the housing market are beginning to capture the attention of prospective home buyers. The $8000 tax credit that will expire on November 30th is also a major motivation. The median sales price in the first quarter was $174,100, which represents a decrease of 16% below this time one year ago. “With low interest rates, lower home prices and a first-time buyer tax credit, we’ve been seeing healthy increases in home sales, which are a hopeful sign for the economy,” said Lawrence Yun, NAR’s chief economist.
Homes Getting Smaller
Wednesday, August 12, 2009 - By Gate Arty
We have all heard that the demand for new home construction has shrunk due to home buyers targeting foreclosures & short sales rather than building new homes. Did you know, however, that the actual size of new homes is shrinking as well? I mean literally. The U.S. Census Bureau reports that the median size of new homes has dropped to 2,065 square feet. This represents a 7% drop in size compared with this time last year. Most industry professionals attribute the reduction in home size to the economic downturn. “Home size gains flatten out or decline during recessions, and we're in the midst of the most serious housing recession in decades," said Kermit Baker, the chief economist for the American Institute of Architects.
Momentum for Home Sales
Tuesday, August 04, 2009 - By Gate Arty
The Natiional Association of Realtors has reported that the pending home sales index rose again for the fifth consecutive month. It rose 3.6% (94.6 from 91.3) in June from May. The pending home sales index tracks signed home purchase contracts and is considered a leading indicator of activity. What is driving this upward momentum? Simply put, distress sales (like short-sales) & foreclosures continue to drive real estate prices downward to levels where buyers can no longer ignore the values. Most people consider this a "once in a lifetime" buyer's market. Let's look at some of the positives: record low interest rates, $8000 tax government credit, large selection of properties available for sale, & discounted property values. The time to buy is NOW!
New Construction Sales Down
Friday, June 26, 2009 - By Gate Arty
Sales of new construction homes fell 0.6% in May from April. The median home sales price was $212,600 in April, but rose to $221,600 in May. Meanwhile inventories of these new homes continue to fall to 292,000 units for the month of May. If sales were to hold at their current pace, it would take approximately 10 months to completely clear out the inventory of unsold homes. Builders have experienced intense competition & pressure from the sale of distressed properties & foreclosure that drive prices down, overall.
Neighborhood Stabilization Program
Wednesday, June 24, 2009 - By Gate Arty
The Obama administration has made up to $6 billion available for redevelopment of foreclosed homes & distressed properties. The Neighborhood Stabilization Program is intended to help communities that have suffered from foreclosures & abandonment, & the hope is that it will facilitate purchases & neighborhood revitalization. Nearly $4 billion of the proposed NSP funding will come from the Economic Recovery Act of 2008. Funds will be used for activities including: redevelopment of foreclosed residential properties, purchase of abandoned properties, demolition of properties, & financing programs. Current guidelines state that funds will go to households earning less than 120% of the median income of the area, with 25% of the funds going towards households earning less than half the median.
Home Sales Rise in May 2009
Tuesday, June 23, 2009 - By Gate Arty
The National Association of Realtors announced that existing home sales rose to 4.77 million units in May 2009. This represents a rise of 2.4% over from April. This is promising because it’s the second straight month that sales have risen, undoubtedly spurred by attractive mortgage interest rates. The NAR announced that this is the first month-on-month increase since August/September 2005. The total hosing inventory stood at 3.80 million units, which represents nearly a 9.6 month supply, down from 10.1 in April.
Foreclosure Property Search Made Easy
Friday, June 12, 2009 - By Gate Arty
When real estate is discussed nowadays, it seems as if the topics foreclosures & short sales are never far behind. Government and Bank-owned foreclosures offer tremendous home-buying opportunities for investors of all types. These foreclosures are called REO (Real Estate Owned) properties. These distress sales have the savvy investors licking their chops as property values are once again affordable, & instant equity is attainable on a large scale. Now the only challenge investors have is actually finding & identifying great values underneath the mountains of available homes for sale. Well, if you are searching for homes in Central Florida, a new website, midfloridareo.com, has made it easy. If you are considering buying an investment property, or simply looking for a good bargain, I suggest checking out this site.
National Real Estate Sales Increase Overall
Thursday, May 28, 2009 - By Gate Arty
The National Association of Realtors just announced that home sales rose a respectable 2.9% in the month of April from March. The increase can be attributed to the increased volume of sales in the “lower-end” market. I touched upon this in my last BLOG posting. The market for the “high-end” properties has been particularly slow. With the continued tightening of mortgage qualification standards, it is getting difficult to obtain “jumbo loans.” Jumbo loans are defined as those mortgages above $730,000. These loans accounted for over 17% of the mortgage market in 2007. Now they account for only 5%. Another contributing factor is that Fannie Mae & Freddie Mac cannot purchase jumbo loans. The chief economist at NAR, Lawrence Yun, has lobbied for the Federal Reserve to buy jumbo loans to restore liquidity in this segment of the market as well.
Market Activity Affected by Economy
Wednesday, May 27, 2009 - By Gate Arty
As the unemployment rate hovers around 9%, most economists expect that the rate of foreclosures will account for approximately 60% of mortgage defaults this year alone. The next wave of foreclosures is expected to include not only the “sub-prime” mortgages, but also those who have been traditionally financially healthy, but have been affected by job-loss. As a result of these foreclosures, housing prices are expected to decline overall. Do not expect to see price declines at ALL price points however. Many realtors have expressed that in some of the moderate price ranges, prices have become so attractive that buyers are jumping back into the fray in waves. In many instances buyers & sellers are once again involved in “multiple offer negotiations.” This has been scarce since the real estate boom of 2006. The home price decline that has resulted from the increasing number of foreclosures, tighter lending standards, & large supply of unsold inventory will eventually spur activity. With mortgage interest rates still at all-time lows, many buyers are viewing NOW as the time to act upon golden buying opportunities. According to Standard & Poor's/Case-Shiller Home Price Indices, home prices in the U.S. fell by 18.7% in March from a year earlier.
Tags: buying a home, economy, finance, home prices, mortgage, real estate, realtors, selling a home
Building Permits Down Locally & Nationally
Thursday, April 30, 2009 - By Gate Arty
It was a case of good news . . . bad news for local builders in Polk County when we review their March 2009 numbers. The good news? Well, the month of March marked their peak for the entire year. The total permits were 102 which was up from 89 in February and 80 in January. The 102 permits represent a 35% decrease from the previous year and marked the lowest March total since 1995. When you compare these numbers on a nationwide scale, they look quite healthy, though. Nationally, housing starts fell almost 50% in March year-on-year. They slid approximately 11% from February 2009. Builders across the nation are fighting to compete with the falling prices of distressed properties & foreclosures & tightening of available credit from the banking industry.
March 2009 Sales Figures are Mixed
Thursday, April 23, 2009 - By Gate Arty
The sales reports for March offered up a mixed bag . . . . some negative & a little positive.The National Association of Realtors announced that real estate sales fell 3 percent in March, to 4.57 million from 4.71 million in February. In an extraordinary turn of events that contradict the other numbers, the median sales price experienced a nice positive bump, increasing to $175,200 from $168,200 in February. Although this is an increase of 4%, it’s still down over 12% from this time last year. Rather unusual that prices would rise at a time when the demand drops, huh? These are unusual time, however.
March 2009 Real Estate Sales Statistics
Thursday, April 16, 2009 - By Gate Arty
Well not all real estate news has to be bad. The good thing about hitting bottom is there is only one way to go . . . & that is UP! And for Polk County at east, things are beginning to trend positive. Robust recovery anyone?
In Lakeland for the month of March 2009, there were 188 homes that sold. Compare this to the 146 units that sold in February 2009, & the paltry 126 that sold the month prior. Folks, those figures represent a whopping 22% spike in month over month sales! Looking into the numbers even further, Keller Williams Realty - Lakeland office, accounted for nearly half of those sales by leading the way with 97 sales units. Keller Williams Realty continued its market share dominance with a 44% jump in sales month over month. Not only is activity picking up, but values were also promising. The average sales price was $130,059 which was up from $124,550 the previous month. The current months inventory is now at 13.89, & we have not been that low since May 2007. The most active price range is still the lower price points. The $120,000 - $139,999 accounted for nearly 13% of the sales activity. Take this into consideration, only 2 homes sold for more than $300,000. Ouch! The average days on the market was 122 days.
In East Polk County, March 2009 was the best month since December 2006 with 149 homes sold. Compare that to 114 in February & 104 in January. Average sales price was slightly up to $102,886. Current months of inventory are now at 12.79 . . . again this figure has not been this positive since 2006! The average days on the market is 120 days. The most active price range was also the $120,000 - $139,999 representing 9.4% of the market. Only one home sold for over $300,000 in all of East Polk.
New Construction Homes Sales Increase
Friday, March 27, 2009 - By Gate Arty
In February, new construction home sales increased to 337,000 units from 322,000 in January. This represents an increase of 4.7%. This was the first increase in new construction sales since July, 2008. Affordability undoubtedly played a pivotal role in the increase. The median sales price in February 2008 was $245,000 compared to a modest $200,900 this February. We must be near the trough of this economic landslide by now.
Mortgage Activity Strengthens
Friday, March 27, 2009 - By Gate Arty
Mortgage applications spiked last week as a result of the record low interest rates. This fueled demand for home refinance loans. Mortgage applications increased a whopping 32.2% for the week ending March 20th. Refinancing accounted for nearly 80% of all of these applications. Despite stricter lending guidelines, the majority of those that apply for a loan, still get approved. The Mortgage Bankers Association reported an approximate 60% approval rate. As a point of reference, in 2003 nearly 80% of applicants got their loans approved. OOPS!
At least activity is finally picking up . . .
Tags: finance, loan, mortgage application, refinance
Homes Sales on the Uptick
Monday, March 23, 2009 - By Gate Arty
For the month of February, the National Association of Realtors said that existing home sales rose to 4.72 million units, up 5.1% from a rate of 4.49 million in January. Economists had expected existing home sales to decline to 4.45 million, so this is seen as great news indeed. The national median existing-home price is down 15.5% from last year, from $195,800 to $165,400. What a great time to BUY!
Fannie Mae Loosens Up
Tuesday, March 10, 2009 - By Gate Arty
Effective March 1st, Fannie Mae (which guarantees approximately half of the $12 TRILLION of the United State’s mortgage market) loosened loan restrictions on real estate investors & secondary home buyers. This move is seen as a major coup for real estate investors that wanted back IN the real estate market, but were essentially locked out. The new guidelines allow these borrowers to obtain Fannie Mae-secured financing for up to 10 properties. Most recently the amended limit was only 4 properties. Meaning, if you had already four mortgages, you could not buy another property with Fannie-backed financing. In essence, making it nearly impossible to buy & borrow. There are, of course, stricter financial underwriting guidelines. Some things to expect are:
• No foreclosures or bankruptcies in the last 7 years.
• A minimum credit score of 720 when the four property threshold is exceeded.
• Heightened reserve requirements that are tied to the type of property being purchased. For example, a multi-family dwelling (duplex, triplex, etc.) would have stricter reserve requirements than a single-family home.
• A borrower MUST have at least 25% down on a second home & at least 30% down on an investment property.
In spite of these stricter guidelines, this is great news for professional real estate investors, and is a major step toward loosening the credit flow stranglehold on the housing market. Now Freddie Mac, the other major player & insurer of mortgages, needs to follow suit.
Foreclosure Search
Tuesday, March 10, 2009 - By Gate Arty
Like searching the web for new property listings? Statistics indicate you are a part of a growing segment of consumers that make their initial property research online. Recent studies indicate that 97% of buyers search for real estate information on the internet first! That's even before they contact a licensed professional REALTOR for assistance. Well here at gatearty.com, we have added a new feature that we are very excited about. With the overwhelming influx of foreclosures in today's market, there is increased demand for information on new foreclosures. Now you can find them! With our MAP SEARCH feature, you can specifically identify "FORECLOSURES" as a search function. So you can search & receive e-mail notifications once a property comes on the market that meets your specifications. Of course the most up-to-date information is available thru contact with your REALTOR, as the MLS database will feature the properties the instant they hit the market.
Houses More Affordable Than Ever
Wednesday, March 04, 2009 - By Gate Arty
The National Association of Realtors has reported that the Housing Affordability Index jumped 13.6% in January to a record high of 166.8. Another sign that buyers bold enough to jump into the market will be rewarded. Not to mention the tax benefit they will receive for doing so prior to the end of the year! The aforementioned index measures the relationship between home prices, income, & mortgage interest rates. The index is the best it has ever been since monitoring of this relationship began back in 1970.
More Foreclosures
Wednesday, March 04, 2009 - By Gate Arty
National filings of foreclosure exceeded 3 million in the 2008. Sound like a lot? Let's put this into some context. That figure represents a staggering 81% increase from the already trying year in 2007. What's even worse that that is it's an astonishing 225% increase over 2006. If you are an investor looking for the "PERFECT" time to jump into the market, that time is NOW! With mortgage rates as low as they are, it is the perfect storm for the savvy investor or entrepreneur. The bold buyers must seize the opportunity because markets like this only come around once in a great while.
National Sales Fall in January
Tuesday, March 03, 2009 - By Gate Arty
According to statistics released by the National Association of Realtors, The PENDING HOME SALES INDEX dropped to 80.4 in January from 87.1 in December. This represents a dip of nearly 8%. This is the lowest it has been since 2001. Although on a national level sales are still soft, as buyers are seemingly lurking on the "sidelines" waiting for the final results of the government stimulus package, it is expected that the new $8,000 tax credit is going to have a very positive effect on market conditions.
The "NEW" housing tax CREDIT
Tuesday, February 17, 2009 - By Gate Arty
The American Recovery and Reinvestment Act of 2009 is now in effect. A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, that offered a $7500 deduction that had to be repaid, the new $8000 figure credit does NOT have to be repaid. The high points of the tax credit are as follows:
- It is for first-time home buyers only. A first-time home buyer is defined as as a buyer who has not owned a principal residence during the three-year period prior to the purchase.
- This is a tax credit & does not have to be repaid. For example, If you owe $5,000 in taxes & qualify for the $8,000 credit, then you would get a REFUND of $3,000! A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. Windfall!
- The duration of this program is only for homes purchased between January 1st, 2009 to December 1st, 2009. Act NOW!
- There is an income imit. It is $75,000 for singles & $150,000 for married couple's combined incomes.
Homes Are Now Affordable
Tuesday, February 03, 2009 - By Gate Arty
I get asked all of the time . . . "have we hit the bottom of the real estate market yet?" In truth, I just don't know, but it seems that some buyers might think so. The National Association of Realtors reported today that the Pending Home Sales Index rose 6.3% to 87.7 in December from a revised reading of 82.5 in November. What do these numbers signify? Quite simply, homes are becoming more affordable to the home-buying public. NAR's House Affordability index rose 10.9% in December to 158.8, the highest since NAR began tracking affordability in 1970.
Keller WIlliams Realty Continues to Grow
Monday, February 02, 2009 - By Gate Arty
In an economic climate frought with foreclosures, credit crunch, bail-outs, & other negative news, it is nice to see that a company is outpacing its competitors & doing well. Keller Williams Realty, continues to outperform the market, remains debt-free, & profit-sharing more than $30 million to it's agents.
For the first 11 months of 2008, existing home sales for the United States fell 17% when compared to the same period the year before. Keller Williams Realty, however, is poised to outdo those numbers by 10 percentage points, and in addition, the company experienced a much smaller contraction in its agent base compared to the National Association of REALTORS®, who saw a 10% decline in membership.
Freddie Mac . . . your landlord?
Friday, January 30, 2009 - By Gate Arty
Freddie Mac announced today that it would permit homeowners who have lost their home to foreclosure to actually turn around and rent them back from Freddie Mac. "Keeping foreclosed properties occupied and in better repair will support local property values and promote a faster recovery in the housing market," said Freddie Mac CEO David Moffett.
Tags: foreclosure, freddie mac, real estate
Housing Statistics
Tuesday, January 27, 2009 - By Gate Arty
The National Association of Realtors reported that existing home sales jumped 6.5% to 4.74 million units in December versus November's 4.45 million units. These numbers are still 3.5% below the 4.91 million units in December 2007. For all of 2008 there were 4,912,000 million existing home sales compared to 5,652,000 sales in 2007. This represents a decline of 13.1%.
Housing inventory dropped 11.7 percent to 3.68 million existing homes, representing a 9.3 month supply, which is down from an 11.2 month supply in November. The national median home price in December was 175,400, which is 15.3% lower than December 2007's $207,000.
Lawrence Yun, NAR chief economist, said home prices continue to drop. "It appears some buyers are taking advantage of much lower home prices," he said. "The higher monthly sales gain and falling inventory are steps in the right direction, but the market is still far from normal balanced conditions. Buyers will continue to have an edge over sellers for the foreseeable future."
December Real Estate Sales
Wednesday, January 14, 2009 - By Gate Arty
The month of December proved to be a nice rebound month in terms of sales in Polk County. In Lakeland, 140 properties sold compared to 114 in November. The Average list price was $149,748 down from $161,976. The average sales price was $140,039, down from $149,269 last month. The average days on market fell from 114 days to 106. The months of inventory dropped to 19 from 26 the previous month. The two price ranges that saw the most activity were $140,000 - $159,999 (which accounted for nearly 19%) and $120,000 - 139,999 (14%).
In East Polk there were 130 homes closing versus the 99 closings in the prior year period as well as 103 in November 2008. The average list price dropped to $128,428 from $136,676 last month while the average sale priced dropped to $119,620 from $125,163 last month. Days on the market increased to 119 from 112 last month and the months of inventory decreased to 15.44 from 20.24 in November. For East Polk, the $120,000 to $139,999 price range represented 13.85% of sales while the price range of $140,000 - $159,999 was in second place with 11.54% of sales.
November Real Estate Sales
Thursday, December 11, 2008 - By Gate Arty
Lakeland real estate sales took a dip for the month of November. In :Lakeland, 116 properties sold, which was down from 151 in Coctober. The average list price was 161,976, up a little from October, while the average sale price was $149,269 which is down from 151,946 last month and well below the prior year’s average of $180,973. Average days on market improved to 106 from 133 in October, but the months of inventory shot up to 25.97 versus 19.89 in October.
For Lakeland, the two price range that dominated most sales was the $200,000 - $249,999 where 13.79% of homes sold and $120,000-$139,999 (13.79%).
In East Polk there were 103 homes closing versus the prior years’ 95 closing and October’s 128 closings. The average list price was essentially unchanged at $136,676 while the average sale price was also nearly unchanged at $125,163. Days on the market improved to 112 versus 118 in October, but the months of inventory increased to 20.24 from 16.43 in October.
For East Polk, the $120,000 to $139,999 price range represented 14.56% of sales while the $100,000-$119,999 price range was in second place with $11.65% of sales.
October Real Estate Sales
Monday, November 24, 2008 - By Gate Arty
The National Association of Realtors announced that real estate sales for the month of October dropped 3.1% to 4.98 million. This was down form 5.14 million in September. The median sales price dipped to $183,000. This was a decrease of 11.3% and the median figure has not been that low since March of 2004.
Keller Williams Realty merger with Coldwell Banker
Tuesday, November 11, 2008 - By Gate Arty
Keller Williams Realty has acquired Coldwell Banker - Plantation Realty. The Plantation office in North Lakeland adds 15 agents to the Lakeland-based Keller Williams roster. There are already well over 245 Keller Williams agents in Lakeland & Winter Haven. The Plantation office will continue to stay open giving Keller Williams Realty a long-awaited presence in North Lakeland. The purchase of Plantation marks the fifth such deal this year. Other partnerships include: First Heritage Realty, Garden Grove Realty, Imperial Lakes Realty, & NAI Realvest.
Exclusive Tour of Lofts on the Park
Thursday, November 06, 2008 - By Gate Arty
In conjunction with the festivities of First Friday, the Group at Keller Williams Realty will be hosting an Open House tour of The Lofts on the Park. Local residents know that this great building is located on Kentucky Avenue adjacent to Munn Park & Lake Mirror. With the resounding turnout last month, there were requests made for an additional Open House tour. Friday November 7 beginning at 5:30 pm is your opportunity if you have always wanted to see the Lofts! Your hosts will be:
Cathy Oliver - 863 286 6732
Christy Gallant - 863 680 9988
Gate Arty - 863 529 3222
Here is a map to the location: MAP
See you there!
New Home Sales INCREASE!
Tuesday, October 28, 2008 - By Gate Arty
The U.S. Commerce Department reported today that month over month sales of new homes rose 2.7% to 464,000 units in September. This was a huge development, considering most analysts had expected a drop from August. The decline on a year over year basis, however, was more significant as home sales were 33.1% below year ago levels. Perhaps bargain hunters are responsible for the monthly increase.The median home price dropped by 9.1% to $218,400, a level not seen since September 2004. There are BUYING opportunities out there folks! Contact you loocal REALTOR now!
Foreclosures up Again
Thursday, October 23, 2008 - By Gate Arty
RealtyTrac announced today that foreclosure filings were up 71% nationwide, in the third quarter over the same period last year. Astoundingly, approximately 766,000 homeowners had a sheriff show up at the door and with a foreclosure complaint in hand! Six states made up for nearly 60% of the list: Arizona, California, Florida, Michigan, Ohio, and Nevada. Most respected experts believe that this trend will continue well into 2010 as the market absorbs the inventory that is just now coming online.
Tags: foreclosure, homeowner, homes, real estate florida
When Will Real Estate Values Rise?
Wednesday, October 08, 2008 - By Gate Arty
Historically-speaking, home values have ultimately risen after dramatic declines. No kidding, right? Although there isn't any widely known or accepted scientific methodology to pinpoint the top or bottom of any market, experts tend to agree that the following signs indicate an upswing:
1. Real estate values stop declining and begin holding steady or selling side-ways. Although it may seem like commonsense, determining the sales price of a home isn't as easy as it may initially appear. It is important to evaluate sale prices across different segments of the market. For example, luxury homes continue to fall (and thereby lower the mean selling price of all homes in the area) while affordable homes have already showed signs of holding steady.
2. Inflation. While inflation tends to hurt those on fixed incomes, or those who put money into savings accounts, it tends to help those who own commodities and hard assets like real estate, since the price of goods and services tend to rise in relation to inflation.
3. Lack of alternative investments. One of the reasons real estate gained such a great deal of appeal in recent years was a lack of viable alternative investments. Following the burst of the "dot-com" bubble, investors were seeking new ways to obtain greater returns on their money. Savvy investors always gravitate toward the segment which provides the best return on investment. Real estate has experienced a major decline, but so has each and every other form of investment, right?
4. Eased lending standards. The availability of credit and affordable low-interest rates is yet another major impetus toward creating rising real estate values. Credit-availability allows potential home buyers to obtain mortgages. Increased mortgage output in the lending industry, leads to more sales in the real estate sector, creating more demand for housing, thus eventually increasing property values.
Chase acquires Washington Mutual
Friday, September 26, 2008 - By Gate Arty
After months of speculation, Washington Mutual became the largest U.S. bank to collapse to date. Although WaMu shareholders have no reason to celebrate, those at JP Morgan Chase seized an opportunity. Chase bought WaMu’s $307 billion in assets and $188 billion in deposits for a mere $1.9 billion, which actually goes to the FDIC. The bank will also re-capitalize by selling some of its stock to raise $8 billion. JP Morgan Chase will now have 5,400 branches in 23 states. Wall Street’s reaction was positive on news of the acquisition, while shares advanced 10%. Investors believe the company continues to scoop up assets cheaply that will eventually provide substantial shareholder return. Once again, proving that those properly positioned in this market will succeed & seize investment opportunities. Top-to-bottom, investors large & small will buy assets that will eventually increase in value.
Market Turmoil
Wednesday, September 17, 2008 - By Gate Arty
The recent turmoil in the financial markets has been nothing but staggering. Storied institutions such as Bear Stearns and Lehman Brothers are essentially gone. Merrill Lynch was scooped up by Bank of America for a song. The US government has come into rescue Fannie Mae and Freddie Mac, but it figured at some point there is a risk of doing too much bailout.
What does all this mean for the real estate industry?
Get ready for more wild rides. Now that equity markets have proven an unsafe and risky investment, more and more real estate investors will be coming out to play. And now that financial institutions are filing for bankruptcy, this will setup even greater liquidation among those real estate assets.
Which means that more wealth will be created for some individuals now than ever before, and frankly this type of wealth creating wasn't even possible when things were considered "good." Sure things are plain awful out there for some investors, but for others this is the opportunity that comes around only once a decade, or perhaps a century. The only thing that resembles this is the S&L crisis in the 1980s, where 747 savings and loan associations failed.
Will there be more government subsidized bailouts? Many are asking why Lehman Brothers was not rescued. Well, enter the economic concept of moral hazard.
Let me ask you a question. Have you ever bought rental car insurance? You know, after you pay for it you feel a little free when your driving someone else's car, right? I know with rental cars I love to take the corners sharper, gun the engine, and basically get “my monies worth,” knowing full well that if I bang up the car, I've got nothing to lose (other than my health if I bang it up too much!). Now please don't forward this e-mail to Avis and get me on their blacklist!
Same concept for the government. They bailed out Bear Stearns. They bailed out Fannie Mae and Freddie Mac. But if they were to bail out yet another financial institution, particularly one that we can all live without, there would be a sense of carelessness that would encourage future speculators.
So what's the story here? In this case, the government wants them not to intentionally cut off their toes, but rather if they see gangrene they go to the hospital rather than awaiting their financial windfall. Lehman Brothers financial woes, due in large part to bad bets on real estate and its related securities, means that the economy is frankly in worse shape than many think. There will be more collateral damage. Lehman's unwinding will cause damage to other financial institutions as inevitably the interest rate swaps (which the Wall Street Journal reported may run into the millions) and other financial instruments affect other institutions, too.
Customer Satisfaction Winner
Thursday, August 28, 2008 - By Gate Arty
Keller Williams Realty ranks highest among real estate companies in satisfying home buyers according to the J.D. Power and Associates 2008 Home Buyer/Seller Study. The inaugural study measures customer satisfaction of home buyers and sellers with the largest national real estate firms. Overall satisfaction is determined by examining three factors for the home-buying experience: agent (65%); office (21%); and services (13%). In the home-buyer segment, Keller Williams achieves a score of 831 on a 1,000-point scale, and receives highest ratings from customers in all three factors.
The study finds that despite the popularity of home-buying and -selling resources on the Internet, real estate agents are key to customer satisfaction with real estate companies. A large proportion of both home buyers and sellers rely on the Internet to facilitate the buying or selling process, with 68 percent of buyers saying that they used Internet tools to help them in the purchase process and 61 percent of sellers reporting that they used a Web site listing to market their home. In addition, among home sellers, online methods are the most important aspect of marketing. However, the agent factor carries the greatest importance among the factors that comprise overall satisfaction among both home buyers and sellers.
The study also finds that the average time a home for sale remained on the market was slightly more than six months, although home sellers represented by the top-ranking real estate companies report that their homes were on the market for slightly less time—approximately five and a half months, on average.
Additional noteworthy study findings include the following:
- Nearly one-half of respondents (46%) report using recommendations from family or friends to find their real estate agent.
- Approximately 28 percent used the Internet, while 23 percent used an agent they had used previously and 11 percent used a printed real estate guide.
- On average, home buyers were shown approximately 13 homes before making a purchase.
- Home sellers report that, on average, their home was shown approximately 11 times and approximately five open houses were conducted before the sale occurred.
The 2008 Home Buyer/Seller Study includes 3,670 evaluations from 3,205 respondents who bought or sold a home between April 2007 and June 2008.
Foreclosure vs. Short Sale
Sunday, August 24, 2008 - By Gate Arty
What follows is a brief synopsis of the differences between a FORECLOSURE and a SHORT SALE and their affects on certain issues.
Fannie Mae Loan: A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years. Homeowners who successfully negotiate & close a short sale will be eligible for A Fannie Mae backed mortgage after only 2 years. For investors that allow a property to go to foreclosure, a Fannie Mae backed investment mortgage will be unattainable for 7 years!
On any future 1003 application, a prospective borrower will have to answer "YES" to question C in Section VIII of the standard 1003 that asks: "Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?" There is no similar declaration or question currently regarding a short sale.
Credit Score: A foreclosure can lower a credit score anywhere from 250 to over 300 points. Typically this will affect a score for about 3 years. A short sale will only affect your credit report to the extent that late payments will be reported. The satisfaction of the mortgage resulting from a short sale will be reported as paid or negotiated. This can lower the credit score as little as 50 points just as long as all other payments are being made. The affect of a short sale can be as brief as 12 to 18 months.
Credit History: Foreclosure will remain as a public record on an individual's credit history for 10 years or more. A short sale is NOT reported on a credit history. In this instance, the loan is typically reported, "paid in full, settled."
Market Update - July Real Estate Sales
Wednesday, August 20, 2008 - By Gate Arty
The MidFlorida MLS reports that the Lakeland Association of Realtors closed 164 homes & the East Polk board reported 120 sales in June. Overall there were 284 homes sold in Polk, up from 282 homes last month. A year ago in June 2007 there were 275 homes sold, so the news should be reported that Polk sales are up from last year!
The average list price in Lakeland decreased to $180,303 from $183,672 last month, and the average sales price decreased to $169,351 from $171,773 last month. The average days on the market increased to 134 from 124 last month. In East Polk, the average list price decreased to $147,019 from $165,987 last month. The average sales price dropped to $136,876 from $153,489 last month. The average days on market decreased to 151 from 155 a month earlier.
What price categories sold last month? In Lakeland the majority of sales occurred in the $140,000-$159,999 price range, which represented 11.59% of all sales (19 units). Both the ranges of $120,000 - $139,9999 price range and $160,000 - $179,999 represented 10.37% of sales, or 17 units sold. The upper end market remained sluggish, with only one home selling for over $800,000 and 13 homes selling for over $350,000 (last month 11 homes sold for more than $350k).
In East Polk there were 18 sales in the $120,000 - $139,999 price range, which represented 15.00% of total sales. The second most popular category was $140,000-$159,999, which represented 12.50% of the market (15 sales). The upper end also was sluggish, with only 2 homes selling for over $350,000, down from 6 last month.
Foreclosures continued to dominate Polk County and we haven't seen much sign of a significant slow down. In July there were 755 foreclosures, down from the record setting number of 888 foreclosures in June. If you consider that all of Polk County sold 284 homes last month, and there were 4,706 Lis Pendens filed so far for the year . . . . WOW! Just to put things in a bit of perspective, however, Hillsborough County had 1,767 Lis Pendens filed. This was up from 1,659 the prior month. Short Sales (Pre-Foreclosures) & other distressed sales will continue to dominate this market for some time.
Insurance NOW
Saturday, August 16, 2008 - By Gate Arty
Experience has shown me that many prospective home buyers shop for homes during the summer months for a variety of reasons. First off, there is more time. Many people take vacation time during the summer months. Other "snowbird" retirees elect to buy a summer home during their regular time here in sunny Florida. More often than not however, the reason involves children. Many parents have told me that they would prefer buying during the summer so they will not have to uproot & disrupt their children's school year midway, in the event that a change of school is necessary.
One important thing (especially in Florida) to consider if you are buying during the summer is HURRICANE SEASON! For buyers who have identified a home and are in the closing process, thoughts of mortgages, inspections, & moving dominate. Another important item to consider is binding your homeowner's insurance policy. One can not close on a purchase transaction without binding insurance coverage if there is a mortgage attached to the transaction. At many points during the hurricane season, writing & binding policies is suspended, however. This can & will delay your closing.
There are two ways insurance companies determine when to temporarily suspend issuing new coverage:
1. When the National Hurricane Center issues a tropical storm or hurricane watch or warning.
2. When a tropical storm or hurricane enters a company’s “storm box.” A storm box is literally a box drawn on a map around a large geographical area. When a name storm enters that "imaginary box," policies are no longer written or bound until the threat of said storm has passed.
There can be delays in real estate closings when availability of insurance coverage is suspended. This is unfortunate, but suspensions only span a couple of days, unless there has been a major hurricane landfall, and then the delay could be longer. When a company suspends binding privileges it only affects those people who don’t already have insurance. If you are in the midst of a closing & have already secured insurance, your closing will not be delayed.
In the event a real estate closings are delayed, the properties are still, of course, insured. If it is a new home, it is still covered by the “builder’s risk insurance.” A re-sale property theoretically would still be insured by the current owner.
Lakeland's USA International Speedway SOLD!
Monday, August 11, 2008 - By Gate Arty
Polk County's many avid NASCAR fans are mourning the loss of an important institution.The USA International Speedway, located at 3401 Old Polk City Road, has closed its doors after its final race On August 2nd and is now under new ownership. The site was previously owned by Bob Brooks, the founder of Hooters restaurants who died in July of 2006. The facility first opened in 1971 with a quarter-mile track under the name Lakeland Interstate Speedway. It was sold in 1995, and has operated as USA International Speedway since. The paved oval stock-car track is nationally renowned as a popular testing spot for NASCAR teams.
Higgenbotham Auctioneers held an Absolute Auction on August 9th where everything was up for sale. All things automotive were sold including equipment, cars, grandstands, pictures, compressors, transmissions, etc. . . . .everything!
The 47-acre tract fronts on Interstate 4, and studies have shown that the North Lakeland site is said to have access to more than 8.5 million people within a 100-mile radius. The new owners are Rockefeller Group Development Corporation and they have acquired approximately113 acres (thus far) of the land off Interstate 4’s exit 38 in Lakeland. The Manhattan-based company hopes to attract a commercial tenant. Rockefeller has plans to build an industrial park on the site with more than 1 million square feet in distribution space. The park would be targeted at large-scale tenants. Construction is scheduled to begin in the first quarter of 2009.
The sale does not include Lakeland Motorsports Park located adjacent to USA International Speedway. That facility, which includes a drag strip and mudbogging pit, is owned by Roy Spiker of Lakeland. Business will continue as usual at that location.
Housing Stimulis Tax Credit
Wednesday, August 06, 2008 - By Gate Arty
A major component of the recent housing stimulis legislation was the temporary first-time home buyer tax credit. According to Census data, first-time home buyers constitute about 40 percent of all buyers. It is thought that the tax credit will stimulate home buying & selling, reduce the amount of inventory in the housing market, and as a result bolster the economy. This incentive is temporary, however. The temporary tax credit is good for a home purchased on or after April 9, 2008 and before July 1, 2009. Buyers can take the tax credit in their 2008 or 2009 tax return. If you purchased the home in 2008, the tax credit is taken on your 2008 tax return. If you buy in 2009, you have the option of taking the credit on your 2008 or 2009 tax returns.
For details, click HERE.
Here's how it works:
- The new law authorizes a temporary $7,500 tax credit for qualified first-time home buyers for the purchase of any home.
- A first-time home buyer is defined as a buyer who has not owned a home during the past three years.
- Single taxpayers with modified adjusted gross incomes of up to $75,000 are eligible to take the full credit. For married couples filing a joint return, the income limit doubles to $150,000.
- Single taxpayers earning between $75,000 and $95,000 can claim a partial credit of less than $7,500 while the phase-out for married couples ends for those earning above $170,000.
- Since the tax credit is refundable, it means that the home buyer can claim the credit even if they owe little or no federal income taxes. In other words, the government would write you a check. For example, if a home buyer owes the federal government $2,500 in federal taxes and qualifies for the $7,500 home buyer tax credit, the taxpayer would receive a $5,000 refund check from the IRS ($7,500 minus the $2,500 owed).
- To reduce the cost to the federal Treasury, Congress has mandated that the tax credit essentially serves as an interest-free loan to be repaid over 15 years. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.
Tags: business, buy real estate, census, economy, housing stimulis, irs, rela estate, sell real estate, tax, tax credit
Downpayment Reform
Monday, August 04, 2008 - By Gate Arty
The new Housing and Economic Recovery Act of 2008 contains a provision that forbids FHA from insuring mortgages in which the downpayment comes directly, or indirectly, from an interested third party (such as the seller), beginning October 1, 2008.
On Thursday, July 31, 2008, the FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008 (H.R. 6694) was introduced by several members of Congress. Representatives Maxine Waters, Gary Miller, Al Green and Christopher Shays sponsored this bill that if passed and signed into law will allow downpayment assistance to continue indefinitely.
Housing and Economic Recovery Act of 2008
Friday, August 01, 2008 - By Gate Arty
On July 30th, President Bush signed the Housing and Economic Recovery Act of 2008. All provision details are not yet available, but the major components included broad authority for the Treasury Department to safeguard the nation’s two largest mortgage finance giants (Fannie Mae and Freddie Mac) and a plan to help hundreds of thousands of troubled homeowners avoid foreclosure.
As anticipated, all seller-funded DPA programs will be abolished October 1st, 2008. Meaning the minimum cash investment requirement will increase to 3.5% of the purchase price.
More news to come on this as it becomes available!
Tags: business, down payment, economy, fannie mae, finance, freddie mac, mortgage, real estate
Down-Payment Assistance Eliminated?
Wednesday, July 23, 2008 - By Gate Arty
Mortgage programs that offer down-payment assistance (DPA) assisted nearly $80,000 people buy homes in the depressed market of 2007. The Senate and House of Representatives are fast-tracking legislation that would likely abolish DPA programs. The repercussions could be devastating to the already ultra-sensitive real estate market.
DPA programs are operated by nonprofit organizations. These organizations provide buyers with money for their down-payment. In turn, home sellers reimburse the organizations and pay an administrative fee. These loans are insured by the Federal Housing Administration (FHA).
Mortgages with DPA account for almost 40% of FHA’s volume! It has been estimated that if DPA programs are eliminated, the direct impact on real estate could result in an estimated $50 billion in lost real estate sales & mortgages, not to mention the loss of jobs in the building & lending sectors of the real estate industry.
Market Update - June Real Estate Sales
Tuesday, July 22, 2008 - By Gate Arty
The MidFlorida MLS reports that the Lakeland Association of Realtors (LAR) closed 172 homes in the month of June, up from 159 sales in May. To put this in perspective, there were only 114 homes sold in January. The East Polk Board of realtors posted 110 home sales, giving Polk County 282 homes sold for the month.
In Lakeland, the average list price increased to $183.672 from $178,894. The percentage difference between sales price/list price increased slightly to 93.52% from 93.09%. The average days on the market dropped to 124 days on market (DOM) from 135 DOM last month. Again signifying increased momentum in the local market.
In East Polk, the average list price increased to $165,987 from $159,173 last month. The average sales price jumped to $153,489 from $147,806 last month. The percentage difference between sales price/list price decreased to 92.47% from 92.86% and the average days on market decreased to 155 DOM from 163 DOM a month earlier.
The hottest price point in Lakeland continued to be south of the $200,000 mark. The majority of home sales in Lakeland occurred in the $160,000-$179,999 price range. The 21 home sales represented 12.21% of all Lakeland sales. Other hot price points were $140,000 - $159,999 representing 11.05% (19 home sales) & the $200,000 - $249,999 accounted for 10.47% (18) of sales. The upper end market remained sluggish, with no homes selling over the $600,000 mark, and only 11 homes selling for over 350,000 (last month there were 8 homes that sold for over $350,000).
In East Polk there were 16 sales in the $120,000 - $139,999 price range, which represented 14.55% of total sales. The second most popular category was $100,000-$119,999, which represented 13.64% of the market (15 sales). The upper end also was sluggish, with only 6 homes selling for over $350,000.
Record Sale for Trump & Apprentice
Friday, July 18, 2008 - By Gate Arty
Donald Trump 'fired' off another record sale this past Tuesday. The Maison de l'Amitié, a 60,000 square foot estate in Palm Beach with 475 feet of beachfront property, sold for a record $95 M. Located at 515 North County Road, the cozy residence typifies Trump's tradmark over-the-top luxuries: a mammoth fountain at the front, a circular gallery boasts a series of trompe l'oeil reproductions of famous paintings, white marble columns, and formal gardens. Of course, the bathroom fixtures simply feature understated 24-carat gold.
The buyer, Dmitry Rybolovlev, is number 59 on the Forbes list of the world's wealthiest people. His net worth is estimated at $12.8 B. the Russian tycoon supposedly covets the property for its expansive beachfront. Trump, the man behind the successful reality television series The Apprentice, bought the property for a meager $41.35 M in 2004. Kendra Todd, winner of the Apprentice (Season 3) spearheaded the renovation of the property, which alledgedly cost a whopping $25 M. Trump originally forecasted an anticipated sales price of $125 M.
Real Estate Foreclosure Opportunities
Monday, July 14, 2008 - By Gate Arty
A turbulent real estate market has presented opportunity for local investors. Polk County has never had as many real estate foreclosures as our present day market. In June alone there were 815 foreclosures. In June of 2007, there were only 381 filings . . . a whopping 114% increase! In all of 2007, there were 5132 foreclosures. Thru June there have already been 4,481.
So what of this opportunity? Buyers, specifically investors, have a treasure trove of real estate inventory to select from. Banks are not in the business of owning real estate. Once a property is foreclosed & in their ownership they will either sell the property at auction, or typically secure the services of a REALTOR to sell the property. It is wise to consult with a REALTOR adept at handling foreclosures, known in the real estate profession as REO (real estate owned) properties. Typically these REALTORS work with several banks & are often the first to know about a property before it even hits the multiple listing service (MLS) database. Working with a REO professional could give you insight on market conditions, incoming inventory, potential resale values, & financing options on rehab properties.
Real Estate Values & Sales on the Rise
Saturday, July 12, 2008 - By Gate Arty
According to the latest report from the National Associaton of Realtors (NAR), real estate values & sales volume appear to be trending upward, in spite of the recent credit crisis and barrage of negative real estate news reports. After reaching a relative low of $195,600 in February of 2008, the NAR reports the median sales price have increased 4 consecutive months. In the month of May (June’s value will be revised on July 24th) the median sales price was $208,600. This represents an increase of 6.6% from the February low! On an annualized basis, home sales volume has also risen.
Mortgage Insurance
Friday, July 11, 2008 - By Gate Arty
Three mortgage insurance (MI) companies filed for bankruptcy this week. Mortgage insurance is insurance to offset losses in the case where a mortgagor (borrower) is not able to repay the loan and the lender is not able to recover its costs after foreclosure and sale of the mortgaged property. Mortgage insurance is typically required on loans where the borrower has less than a 20% down payment.
Remaining mortgage insurers have been tightening their standards and offering borrowers fewer ways to avoid purchasing mortgage insurance. The MI companies have begun categorizing more and more of the country as a "declining market," raising the requirements and making such insurance more difficult to obtain. Stated simply, without MI, buyers will have to put more money down to qualify for loans - perhaps 10%.
During the previous housing boom, borrowers were often able to avoid mortgage insurance by taking out two loans: one that covered four-fifths of the home's purchase price and a second "piggyback" loan that covered the traditional 20-percent down payment. With this type of lending practice now being non-existent, potential home buyers need MI to buy, and the overall buying pool has consequently significantly decreased.
Tags: bankruptcy, finance, foreclosure, insurance, loan, loans, mortgage, property value
Spring Parade of Homes
Sunday, April 20, 2008 - By Gate Arty
The Spring Parade of Homes, hosted by the Polk County Builder's Association, begins Saturday April 19th and runs thru April 27th. Entries of the Parade of Homes offer up a diverse price range, starting as low as $113,990 to as high as $2,000,000! Need a home with a 2-lane bowling alley & basketball court? Well, perhaps the Grande Floridian is the type of home you require. Whether home shopping or simply browsing the Parade is a terrific opportunity to see the products of the premier builders in Central Florida.
Debt Forgiveness
Friday, April 11, 2008 - By Gate Arty
In my last post, I described the short sale process. Some have expressed concerns about the effect the resulting debt-forgiveness of a short sale has on your tax situation. In prior years, any form of debt-forgiveness on a mortgage was considered earned income. Now, however, the Mortgage Forgiveness Debt Relief Act of 2007 allows a 3-year window for homeowners to refinance their mortgage with no tax penalty on any debt relief that is received. This act will increase the incentive for borrowers & lenders to work together to refinance loans , and realtors to negotiate short sales to avoid foreclosure. This act only applies to principal (homestead) property.
Click here for more information on the Mortgage Forgiveness Debt Relief Act.
What is a short sale?
Wednesday, April 09, 2008 - By Gate Arty
A "short sale" or "pre-foreclosure" occurs when a bank (or lien-holder) agrees to accept a discounted pay-off of a mortgage. In other words, the bank(s) will release the lien(s) that is secured on the real estate, upon receipt of LESS money than is actually owed. Why would any bank accept less than what is owed? Well, it must make financial sense for this to occur. Here's a scenario . . .assuming there is an offer, of course!
First off, the mortgage(s) in question is typically in some stage of default. The bank, faced with a mortgage that is not being paid, must decide whether selling at a discount makes better financial sense than actually going through a long & costly foreclosure process. In our current real estate climate (because of the increasing alarming rate of bank foreclosed properties), most institutions are deciding that short sales are a viable route. Remember, banks and other lending institutions are not in the business of owning real estate. They want good mortgages. Foreclosures are not only time-consuming, but they are expensive.
The bank will not accept just any offer, however. They will have the property appraised to establish approximate market value. If they can negotiate a sales price "close" to that figure, a short sale may then be consummated. If the short-sale offer is not considered valuable enough, then they may opt to foreclose, and eventually sell the property on the retail market once they obtain "possession." This is what we know of as a foreclosure property.
Short sales represent a tremendous purchase opportunity for buyers and especially investors. Since most transactions occur on a distressed level, many sales prices occur below appraised value giving the buyer "instant equity."
Sales Increase!
Monday, March 24, 2008 - By Gate Arty
Sales of existing homes posted an unexpected increase in February. This follows six straight months of declining sales. The National Association of Realtors said that sales of existing homes rose by 2.9 % in February to 5.03 million units. It was the biggest increase in a year and caught most economists by surprise. Most had been expecting a small decline.
By region of the country, sales surged by 11.3 percent in the Northeast and were up 2.5 percent in the Midwest and 2.1 percent in the South. The only region of the country to see a decline in the sales was the West, where they dropped by 1.1 percent
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