Understanding that life is sometimes a dance, you go forward one and back two and then three forward. Real estate has the same rhythm, and the dance we are dancing is the quick step with all movements being forward.
Statistics continue to support the increased activity each month in Brevard County, and those who snooze will lose in this market. The premium homes and condos for these bargain prices are now showing that the best of the best are being absorbed. Local Realtors agree the correction in this market is being seen with multiple offers on good properties and some scarcity of listings in a few neighborhoods.
Financing still is the difficult part of the transaction and many cash buyers are showing their strength in selecting the values and knowing they can move forward quicker than others. The cash buyer controls the best transactions.
Appraisals continue to be the problem, with many of our local lenders using out-of-town appraisers. It is understood that appraisers are bidding for these jobs and lowering prices to be competitive. The out-of-town appraisal groups are undercutting the locals and capturing the jobs. Interesting that the cost does not appear to be passed on to the consumer. It is no wonder appraisals appear to show inconsistencies in the competitive properties selected.
The appraisers who are not in this market do not know which neighborhoods are considered comparable. Can the borrower insist on a local appraiser?
This appraisal problem, apparent in our area, does not appear to benefit the lender as many new loans are lost due to the low appraisals. Refinancing is effected in the same manner.
The lending institutions with strong local leadership will find a way to change this procedure and create the fairness this market deserves. For the first time in several years, it has been reported that developers are now coming into the market to capture the value of vacant land that is prime for new construction.
With the planning and permitting time period needed for development, the time may be right for land transactions to begin to show a significant increase in activity.
With a two- to three-year absorption rate for residential homes and the necessary time needed to prepare and plan for a development, it would be wise for developers to begin to take advantage of the low land prices and plan for the next several years.
As the hot summer sun beats on Brevard County, let the rhythm of the dance continue.
Sunday, June 28, 2009
Sunday, June 21, 2009
Realtors can offer guidance.
Buyers are flocking to Brevard, and the reasons are clear. They have heard of the "eco tour" on our rivers, highlighting our natural wonders. They have heard of kayaking through the zoo to see animals in their natural habitat. Some have experienced skimming through the wetlands on an airboat. Others just enjoy the walk through the old towns, dining on the street cafes or enjoying the many theatrical performances our cities offer.
Although the interest rate edged up, the contracts continue to be written as buyers pounce on the great values in Brevard County. A good Realtor can help guide you through the process. Those looking at property on a daily basis know that the best buys are going quick. Yes, the market is beginning to change. The surplus still exists in all phases of the housing market, and prime properties are being scooped up by the knowledgeable buyers.
The time is right. Sellers who are pricing their properties correctly in this market are experiencing action and possible offers. Problems still plague the financing aspects of the real estate purchase, so buyers and sellers need to be aware of this possibility. Low appraisals also continue to be an issue.
The problem circumstances are highlighted in the condominium market. If the developer still owns a majority of the units, financing may be limited and almost, in some cases, impossible. If there is a program for special financing in these circumstances, I have not yet, found it but I am still searching.
Foreclosures continue, and short sales are changing. Investors specializing in short sales are contracting at a rapid rate, negotiating with the lender and flipping the property. Buyers and Realtors need to be aware that if the short sale is a flip, a lender for the buyer may require more time prior to financing. To further explain: a flip is when an investor contracts on the short sale and lists it for sale prior to the investor closing on such a property. Thus, it's reselling the short sale or flipping the property to a second buyer with the intent of capturing a profit in the second transaction. The transactions usually have a simultaneous closing where the investor closes in the morning and the buyer closes in the afternoon.
Fascinating! People are creative in every market. Knowledge is the key to closing on such a property. Researching the property, the seller, the lender and the flipping investor may be the keys to closing on this transaction if it is still a good deal for the buyer being represented.
Real estate is now a complex process. Working with a professional in the business full time is an absolute necessity in today's market.
The Realtors struggle with these changes as do the sellers and buyers, but a sunset walk on the beach will lower your stress level.
Although the interest rate edged up, the contracts continue to be written as buyers pounce on the great values in Brevard County. A good Realtor can help guide you through the process. Those looking at property on a daily basis know that the best buys are going quick. Yes, the market is beginning to change. The surplus still exists in all phases of the housing market, and prime properties are being scooped up by the knowledgeable buyers.
The time is right. Sellers who are pricing their properties correctly in this market are experiencing action and possible offers. Problems still plague the financing aspects of the real estate purchase, so buyers and sellers need to be aware of this possibility. Low appraisals also continue to be an issue.
The problem circumstances are highlighted in the condominium market. If the developer still owns a majority of the units, financing may be limited and almost, in some cases, impossible. If there is a program for special financing in these circumstances, I have not yet, found it but I am still searching.
Foreclosures continue, and short sales are changing. Investors specializing in short sales are contracting at a rapid rate, negotiating with the lender and flipping the property. Buyers and Realtors need to be aware that if the short sale is a flip, a lender for the buyer may require more time prior to financing. To further explain: a flip is when an investor contracts on the short sale and lists it for sale prior to the investor closing on such a property. Thus, it's reselling the short sale or flipping the property to a second buyer with the intent of capturing a profit in the second transaction. The transactions usually have a simultaneous closing where the investor closes in the morning and the buyer closes in the afternoon.
Fascinating! People are creative in every market. Knowledge is the key to closing on such a property. Researching the property, the seller, the lender and the flipping investor may be the keys to closing on this transaction if it is still a good deal for the buyer being represented.
Real estate is now a complex process. Working with a professional in the business full time is an absolute necessity in today's market.
The Realtors struggle with these changes as do the sellers and buyers, but a sunset walk on the beach will lower your stress level.
Sunday, June 14, 2009
Buying on water an option...
In the early hours today, the sun was rising and the water was like glass. It was just perfect.
In a spectacular three minutes, five dolphins splashed in the wake of our boat. They must have known my granddaughter was with us as they put on their performance.
Welcome to the waterfront in Brevard County.
News reports continue to boast that Brevard County is undervalued. When I search the Multiple Listing System on Realtor.com, I must agree that some of the best buys are on the waterfront.
Oceanfront condos still lead the way in an oversupply, thus, tremendous values are in this category. Canal-front homes are certainly available in price points that are hard to believe.
Riverfront under $1 million is a price range that did not exist in Brevard County for many years, yet is available in today's market.
The economy is consistently showing signs of improvement. Is this oversupply in housing going to exist for many years? Are people continuing to purchase at an increased rate? The fact is, the contracts are being written and negotiated to a meeting of the minds, with an increased rate of activity that continues. Still, I predict an oversupply in housing for several years.
A balanced market is not forecasted for two to three years if this action is consistent throughout a two-year period. Sellers who are wanting to buy in this market must agree to sell low and understand that they, in turn, will buy low. This will offset the impact of a low offer.
Now that the interest rate has increased -- but is still at a very low rate -- one needs to jump into this housing market before there's another rate increase.
Increases or decreases in rates are controlled by the secondary money market and the economic situation. Rates under 5.5 percent still are excellent rates. The truth is, one does not know what the future rates will be. Appraisals still are coming in on the low side. If a buyer or seller has no consistent proof of the price that is negotiated in a contract for sale and purchase, it is recommended that a special clause showing the contract is contingent upon an appraisal reflecting at least the value of the contract price and performed within two weeks of date of acceptance, be added to the contract.
Your Realtor can assist you with the wording. If the appraisal results are known up front -- that is, in the early stages of the loan process -- any adjustments that must be agreed by both buyer and seller are done prior to the seller moving out of the property.
Hopefully, this market devaluation will not remain in existence much longer. It is the low sales of the past that influence the value indicated by the appraiser. A cash contract is an exception as no appraisal is needed. Bring on the cash contracts.
In a spectacular three minutes, five dolphins splashed in the wake of our boat. They must have known my granddaughter was with us as they put on their performance.
Welcome to the waterfront in Brevard County.
News reports continue to boast that Brevard County is undervalued. When I search the Multiple Listing System on Realtor.com, I must agree that some of the best buys are on the waterfront.
Oceanfront condos still lead the way in an oversupply, thus, tremendous values are in this category. Canal-front homes are certainly available in price points that are hard to believe.
Riverfront under $1 million is a price range that did not exist in Brevard County for many years, yet is available in today's market.
The economy is consistently showing signs of improvement. Is this oversupply in housing going to exist for many years? Are people continuing to purchase at an increased rate? The fact is, the contracts are being written and negotiated to a meeting of the minds, with an increased rate of activity that continues. Still, I predict an oversupply in housing for several years.
A balanced market is not forecasted for two to three years if this action is consistent throughout a two-year period. Sellers who are wanting to buy in this market must agree to sell low and understand that they, in turn, will buy low. This will offset the impact of a low offer.
Now that the interest rate has increased -- but is still at a very low rate -- one needs to jump into this housing market before there's another rate increase.
Increases or decreases in rates are controlled by the secondary money market and the economic situation. Rates under 5.5 percent still are excellent rates. The truth is, one does not know what the future rates will be. Appraisals still are coming in on the low side. If a buyer or seller has no consistent proof of the price that is negotiated in a contract for sale and purchase, it is recommended that a special clause showing the contract is contingent upon an appraisal reflecting at least the value of the contract price and performed within two weeks of date of acceptance, be added to the contract.
Your Realtor can assist you with the wording. If the appraisal results are known up front -- that is, in the early stages of the loan process -- any adjustments that must be agreed by both buyer and seller are done prior to the seller moving out of the property.
Hopefully, this market devaluation will not remain in existence much longer. It is the low sales of the past that influence the value indicated by the appraiser. A cash contract is an exception as no appraisal is needed. Bring on the cash contracts.
Sunday, June 7, 2009
Now is the time to buy!
Wow! This market is exciting and challenging.
Real estate sales continue to sizzle as the summer heat comes to Florida. Carey Bay, in a DSNews article published June 3, writes,
All of the indicators point to this being the right time to buy:
Real estate sales continue to sizzle as the summer heat comes to Florida. Carey Bay, in a DSNews article published June 3, writes,
"For the first quarter of 2009, only six states saw an increase in home sales,Carey further mentions that Central Florida seems to show more significant signs of recovery than other regions. The Home Building Industry is reporting an increase in new construction, which makes us all smile.
and Florida was among the lucky few."
All of the indicators point to this being the right time to buy:
- Federal tax rebate for first-time homebuyers in the amount of $8,000. Note: First-time homebuyers must finalize their purchase by Nov. 30 to get this tax credit.
- Numerous financial assistance programs are available. Some offer a bridge loan to facilitate the use of the $8,000 tax credit as a down payment. Your Realtor can assist you with this information.
- Continued low interest rates.
- Continued availability of inventory in the housing market.
- Press releases indicate Brevard County is undervalued.Predictions of a mild hurricane season.
For all the reasons listed above, the Brevard real estate market has continued to be blessed with this flurry of action as buyers review their many opportunities for valuable purchases in today's market. Real estate sales strengthen the economic situation in so many ways that this is the first indication of economic recovery. The real estate market continues to face obstacles in continued low appraisals, difficulty in closing short sales and frustrated buyers who have lost money on past home sales.
The positive effects of this action far outweigh the problems. We have all learned to tighten our budgets, find energy and money-saving ideas to lower our household expenses, analyze and prepare for loan processing problems and boost those low appraisals by cash sales showing some value stability in this market.
Under the new Foreclosure Alternative Program outlined by President Obama, there is some help to streamline the short sale process creating a positive effect in moving the inventory of short sales and expediting the closing process.Local lenders are offering flexible and creative financing programs to enhance the opportunities for financing. Jumbo loans are enticing buyers with new lower rates.
The beach salt air brings a tranquility to our busy lives, the shuttle allows us to marvel in our manmade accomplishments and the abundance of Florida wildlife fascinates us daily. We are so fortunate to live in Brevard County.
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