Interesting statistics for the past three months in Brevard County still indicate that fewer properties are coming on the market, but the amount of new listings is exceeding the sales slightly. The positive mark is the continued increase in properties coming under contract, that is to say, properties that are approaching closing. We in the business call these "pending" or "contingent" sales.
The number of days on the market has been significantly reduced over this past year and now stands at 122 days. This would indicate that a well-priced property should sell within three to four months. If your property has been on the market for more than three or four months, you need to re-evaluate the following: Price, curb appeal, cleanliness and its overall showability. If your house is priced right and shows well and still hasn't sold, you should find out if something in your area is affecting your property or is it getting the proper exposure to buyers.
Among the factors that can slow a sale are:
--- Floor plan that doesn't appeal to a wide range of buyers.
--- Location considerations, such as traffic or nearby undesirable businesses.
--- Neighborhood considerations, such as a nearby property that isn't maintained.
Often, the only solution is a price adjustment, even though that's not what most sellers want to hear. But if you are motivated to sell, a price adjustment will most likely assist in moving the property. I was asked to supply statistics on sold properties that were foreclosures or short sales and at this point, I am unable to access and rely on the information I have for these types of properties.
I do have some advice if you, as the seller, are debating whether to enter into a sale of your property via foreclosure or short sale. These are desperate measures that will affect you for years to come.
If you have equity, just continue to reduce the property for a quick sale. If you have no equity, this is the time to talk to your lender. Programs are coming on line and lenders are prompted by the government to listen. There is still no guaranteed assistance available but I advise you to hang in there.
Help is inevitable with the economic crisis and the push to assist owners in need. Brevard County is still high on the economic curve. Government contracts are still in force and fueling our economy. Our chambers of commerce and Economic Development Council are actively recruiting new businesses into our area. We have a great deal to offer families relocating here and a tremendous benefit to businesses moving into our area.
Sunday, October 26, 2008
Sunday, October 19, 2008
Stocks, homes seesaw...
Someone once told me that real estate and the stock market were much like a seesaw. When the stock market goes down, real estate goes up and vice versa. There is still too much inventory and not enough buyers in this real estate market to allow for price increases.
We do not qualify as a county or a state with a shortage of available real estate, but the fact is, there continues to be an increase in the volume of sales of existing homes and fewer homes are coming on the market each month. So the supply is dwindling due to fewer homes coming on the market each month combined with the increase in the number of homes closing.
Therefore, the dynamics of the seesaw effect are in a way, working to the benefit of the real estate market!
It is still imperative that if you are a seller, you must price your home correctly and market it properly, in order to sell in today's market. If you are a buyer, it is imperative that you secure preliminary loan approval before contracting on your home purchase. The buyer has a great selection to choose from and a great interest rate can be secured from lenders.
Homeowners facing foreclosure or short sales, hopefully, will see light at the end of this dark and gloomy economic tunnel as the government enacts programs of assistance with lenders to lower rates or payments to rescue those who have fallen behind in payments. This is the time for homeowners in trouble to communicate with their lenders and stay abreast of programs soon to be available for homeowner assistance.
Lenders are strict for new loans. The "jumbo" loan programs are often requiring more than 20 percent down payment. For loans higher than $2 million, lenders are offering 75 percent financing and a five-year fixed rate amortized for 30 years but adjusting or ballooning at the end of five years. The conservative changes in this luxury home market show that lenders are not willing to keep a large loan (over $2 million) for a 30 year fixed rate in their portfolio of loans. The conforming loans with 20 percent down require excellent credit and verification of job stability.
Still the FHA and VA loans continue to be the most popular in the state of Florida with minimal or "no" down payment. Motivated sellers are will to pay buyer's closing costs to secure this type of financing.
The problems in the economy have some silver linings -- not a lot of silver but a glimmer of hope for the future!
We do not qualify as a county or a state with a shortage of available real estate, but the fact is, there continues to be an increase in the volume of sales of existing homes and fewer homes are coming on the market each month. So the supply is dwindling due to fewer homes coming on the market each month combined with the increase in the number of homes closing.
Therefore, the dynamics of the seesaw effect are in a way, working to the benefit of the real estate market!
It is still imperative that if you are a seller, you must price your home correctly and market it properly, in order to sell in today's market. If you are a buyer, it is imperative that you secure preliminary loan approval before contracting on your home purchase. The buyer has a great selection to choose from and a great interest rate can be secured from lenders.
Homeowners facing foreclosure or short sales, hopefully, will see light at the end of this dark and gloomy economic tunnel as the government enacts programs of assistance with lenders to lower rates or payments to rescue those who have fallen behind in payments. This is the time for homeowners in trouble to communicate with their lenders and stay abreast of programs soon to be available for homeowner assistance.
Lenders are strict for new loans. The "jumbo" loan programs are often requiring more than 20 percent down payment. For loans higher than $2 million, lenders are offering 75 percent financing and a five-year fixed rate amortized for 30 years but adjusting or ballooning at the end of five years. The conservative changes in this luxury home market show that lenders are not willing to keep a large loan (over $2 million) for a 30 year fixed rate in their portfolio of loans. The conforming loans with 20 percent down require excellent credit and verification of job stability.
Still the FHA and VA loans continue to be the most popular in the state of Florida with minimal or "no" down payment. Motivated sellers are will to pay buyer's closing costs to secure this type of financing.
The problems in the economy have some silver linings -- not a lot of silver but a glimmer of hope for the future!
Sunday, October 12, 2008
It's time for us to tighten our belts.
Home sales are increasing in activity, in spite of the downturn for the economy. Home ownership truly is the American dream. You might have ridden the wave of property inflation and found that today's prices are back to normal or even more affordable than that -- affordable both in price and in mortgage terms.
Interest rates are low and may be dropping slightly lower. Buying power is at a high with wonderful values surrounding us. Placing most of your life's savings into your home is a safe bet for long-term appreciation. Real estate should not be thought of as a fast turnover market. It is a market that is typically slow to change. Appreciation may not be rapid but it most likely will be safe and consistent.
This is the kind of market in which our parents felt safe placing their hard-earned money into as a home down payment. This is the kind of market where one would like to pay off their home and feel comfortable with our economy. Our economic state these days does not lend itself to comfort. Most of us have lost value in our market-based retirement accounts this past week.
But think about this . . . what if you owned your home free and clear?
This may be the time to plan to be conservative -- conservative in your purchase of a home and conservative in the payment of your mortgage. It was not long ago when I was advising my clients to make one extra mortgage payment each year directly to principal reduction and look at paying off the 30-year mortgage in approximately 18 years. Let's go back to being conservative. Not just because we want to do this but now we must do this.
Educational programs on TV and the Internet are assisting in ways to economize. Sometimes we must listen to this direction, tighten our belts and move forward in a conservative and cautious manner, such as purchasing an affordable home using 25 percent of your income for your mortgage payment.
Using 33 percent of your income for total debts is the conservative way to look at purchasing in today's economy. In this way, one can still save money and enjoy life without the stress of payments that are too big for your comfort zone.
Placing one extra payment towards your principal balance is a method of "forced savings" in a solid and conservative manner. Forcing oneself to save before spending is another cautious and conservative method of budgeting in this tough economy.
Passing up the latte, conserving on energy usage and purchasing needs instead of wants will get us into a more comfortable world.
Interest rates are low and may be dropping slightly lower. Buying power is at a high with wonderful values surrounding us. Placing most of your life's savings into your home is a safe bet for long-term appreciation. Real estate should not be thought of as a fast turnover market. It is a market that is typically slow to change. Appreciation may not be rapid but it most likely will be safe and consistent.
This is the kind of market in which our parents felt safe placing their hard-earned money into as a home down payment. This is the kind of market where one would like to pay off their home and feel comfortable with our economy. Our economic state these days does not lend itself to comfort. Most of us have lost value in our market-based retirement accounts this past week.
But think about this . . . what if you owned your home free and clear?
This may be the time to plan to be conservative -- conservative in your purchase of a home and conservative in the payment of your mortgage. It was not long ago when I was advising my clients to make one extra mortgage payment each year directly to principal reduction and look at paying off the 30-year mortgage in approximately 18 years. Let's go back to being conservative. Not just because we want to do this but now we must do this.
Educational programs on TV and the Internet are assisting in ways to economize. Sometimes we must listen to this direction, tighten our belts and move forward in a conservative and cautious manner, such as purchasing an affordable home using 25 percent of your income for your mortgage payment.
Using 33 percent of your income for total debts is the conservative way to look at purchasing in today's economy. In this way, one can still save money and enjoy life without the stress of payments that are too big for your comfort zone.
Placing one extra payment towards your principal balance is a method of "forced savings" in a solid and conservative manner. Forcing oneself to save before spending is another cautious and conservative method of budgeting in this tough economy.
Passing up the latte, conserving on energy usage and purchasing needs instead of wants will get us into a more comfortable world.
Sunday, October 5, 2008
Credit market where it should be.
How is the credit crunch affecting the real estate market? Can you sell a house now with everything going on in the U.S. economy? Can you buy a house now with this unbelievable economic crisis?
The answer is yes. Homes are selling, and buyers are getting financing. Florida had the highest rate of FHA mortgages recently in the United States. Home loans are available. The clock has now turned back to the way things should be . . . that is, those people who have good credit and verifiable income can secure financing to purchase a home.
Those people who have decided to "short sale" or go into foreclosure have now made a choice that they have to live with. Those who made the choice to sell short or foreclose will not be able to secure mortgages again for many years. Each circumstance for foreclosure and short sales is different, but the lending institutions will now make decisions not to lend to these people regardless of circumstances.
Veterans can secure VA financing with no money down. FHA buyers can purchase with 3 percent or less down. Conventional financing is available for those who can afford a down payment and finance 80 percent loans. Money is available. Credit is available. All are available to those who can afford to purchase and to those who can afford the payments.
This is not a bad change in the market. This is the way the real estate and lending market should be. We all need to tighten our belts and think before we purchase. We need to make certain that we can afford to pay back the money that we borrow.
There is no more incredible leverage -- based on rocketing home values -- available to the consumer. The rules have changed but the good news is that we can purchase a home, we just must be able to "afford" that purchase. Homes are the most affordable than they have been in many, many years. Interest rates are low and reasonable. There is an abundance of properties to from which to choose.
In spite of what you are reading in the newspaper and in spite of what you are seeing on television, real estate is alive and well in Brevard County, in Florida and throughout the United States. This is the time to buy the American Dream.
The answer is yes. Homes are selling, and buyers are getting financing. Florida had the highest rate of FHA mortgages recently in the United States. Home loans are available. The clock has now turned back to the way things should be . . . that is, those people who have good credit and verifiable income can secure financing to purchase a home.
Those people who have decided to "short sale" or go into foreclosure have now made a choice that they have to live with. Those who made the choice to sell short or foreclose will not be able to secure mortgages again for many years. Each circumstance for foreclosure and short sales is different, but the lending institutions will now make decisions not to lend to these people regardless of circumstances.
Veterans can secure VA financing with no money down. FHA buyers can purchase with 3 percent or less down. Conventional financing is available for those who can afford a down payment and finance 80 percent loans. Money is available. Credit is available. All are available to those who can afford to purchase and to those who can afford the payments.
This is not a bad change in the market. This is the way the real estate and lending market should be. We all need to tighten our belts and think before we purchase. We need to make certain that we can afford to pay back the money that we borrow.
There is no more incredible leverage -- based on rocketing home values -- available to the consumer. The rules have changed but the good news is that we can purchase a home, we just must be able to "afford" that purchase. Homes are the most affordable than they have been in many, many years. Interest rates are low and reasonable. There is an abundance of properties to from which to choose.
In spite of what you are reading in the newspaper and in spite of what you are seeing on television, real estate is alive and well in Brevard County, in Florida and throughout the United States. This is the time to buy the American Dream.
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