News in Real Estate for Port Charlotte / Punta Gorda

Bargains abound: Why are buyers waiting?

2011-10-28T16:45:00.000-04:00

With low home prices and ultra-low interest rates, the housing market offers "perhaps the best deals of a generation

Since the housing boom of 2006, home prices have fallen about 31 percent. Also, mortgage rates have been hovering at record lows for the past few weeks – in the 4 percent range or even lower on 30-year fixed-rate mortgages, according to Freddie Mac’s mortgage market survey.

“It’s hard to see the possibility of losing on a home purchase right now, with these mortgage rates,” says economist Dean Baker. “Prices may go lower, but not by much.”

The article notes the following scenario: Buying a $300,000 home with a 4 percent mortgage rate and a 20 percent down payment would mean a $1,145 monthly payment. The Mortgage Bankers Association recently predicted that home prices may fall another 3.5 percent by mid-2012, but mortgage rates will increase by a half-point. Under that same loan scenario, a home would sell for $289,000 while the monthly mortgage bill would be $1,171 – only a $26 difference.

For those who can qualify for a mortgage, “playing the waiting game” won’t result in much gain, Nariman Behravesh, chief economist at IHS in Englewood, Colo., told Bloomberg Businessweek.

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

Investors see bigger profits in rising rents

2011-10-28T10:26:00.000-04:00

Rents are rising at a 5.17% annual rate from 2010's 4.72%; higher demand comes, in part, from foreclosed homeowners

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

Foreigners' sweetener: Buy house, get a visa

2011-10-26T12:49:00.000-04:00

A proposal in Washington could create a retiree visa for those who spend at least $500K cash investing in U.S. real estate

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

Are banks getting better on short sales?

2011-10-26T12:47:00.000-04:00

Some sellers say banks are more willing; they close faster and even offer seller incentives to avoid foreclosure process.

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

South Florida rents rise as international buyers continue to invest in local housing

2011-10-26T12:35:00.002-04:00

As more homeowners turn into renters because of the foreclosure crisis, investors are buying distressed properties and converting them to rentals to meet the demand. By choice or by force, more and more people in South Florida’s foreclosure-ridden housing market are renting, rather than owning, their homes. In an ironic twist on economics, that dynamic is actually helping the resale market. According to sales reports released Thursday, South Florida is on track to set a new sales record this year. The reason: investors.

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

Homeownership rate second highest on record

2011-10-26T11:41:00.002-04:00

Nearly every metro area had more homeowners than renters in 2010. The metro areas with the highest homeownership rates were in Michigan and Florida. Monroe, Mich., had the highest percentage of owner-occupied units at 79.8 percent, followed by Punta Gorda, Fla., at 79.7 percent.

While the national homeownership rate remained high, the decrease in the rate from 2000 to 2010 by 1.1 percent – to 65.1 percent overall – is the largest decrease since the 1930 to 1940 period, the Census Bureau reported.

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

10 Places to Buy a Retirement Home for Under $100,000

2011-10-18T19:20:00.000-04:00

10 Places to Buy a Retirement Home for Under $100,000

9 of 12
Port Charlotte, Fla.
Charlotte Harbor & the Gulf Islands Visitor's Bureau

The housing bust hit Port Charlotte hard, which may lead to good deals for newcomers. The city’s median home-sale price in 2010 was just $59,950. Many homes in this Gulf Coast town are located along canals and waterways.
And many of these homes are located along canals and waterways. "There are a tremendous number of houses on the water, and everybody's got their boats in their backyard," says retiree Chris Zwirner, 78. "All the people who live on water essentially have access to the Gulf of Mexico, and from there you can go around the world." The Charlotte Harbor Preserve State Park spans 42,000 acres, including 70 miles of shoreline along the Charlotte Harbor. An added bonus: Florida has no state income tax.

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

Another Look at Short Sales

2011-10-18T13:54:00.001-04:00

There is another "dramatic shift" in home sales, according to Ron Peltier, chairman and chief executive officer of HomeServices of America Inc., the second-biggest U.S. residential brokerage which has over 700 offices under the Coldwell Banker brand.
That "dramatic shift" is in bank's willingness to sell than the mortgage balance to avoid foreclosing.
Finally, common sense is coming into the equation!
Typically short sales sell at a discount of about 20% for home not in financial distress, in contrast to a 40% discount for bank-owned homes also known as REOs. That is of 20% more for the mortgage holder, so it is a clear financial incentive for banks to accommodate a short sale over having to process a foreclosure.
HomeServices reports that the distressed sales were a mix of 60% foreclosure and 40% short sales. But that ratio has now flipped.
Why Banks Should Short Sell:
Following the Robo-Signing and subsequent delays in the foreclosure process, banks are facing the realities of how to dispose of these assets, which in fact become a liability to them:

- First, banks do not want to be landlords, they are in the business of lending on not acquiring real estate.

- There is increasing pressure on banks to hold and rent-out these properties so as not to flood the housing market with for sale inventory and further drive down values and selling prices.

- This is a policy that Fannie Mae and Freddie Mac are exploring for the same reasons and collectively that would place an enormous inventory of rental homes on the market.

- This would bring another wave of income loss and uncertainty further prolonging a housing market recovery.
Short Sales Benefit All:
- Mortgage lenders recover more money - With either a short sale or foreclosure the bank stands to lose money. It makes so much more sense to negotiate the short sale with a 20% discount than to push through a foreclosure and take 40% discount in a less predictable market.

- The housing market will be less damaged - Either way the market has to absorb this inventory before it can normalize. Short sales will better stabilize market values and sales prices and transaction time.

- Short sales will benefit the lenders, the homeowners, home values, selling prices, and finally it will benefit the housing industry as a whole including real estate and lending professionals.
Short sales over foreclosures benefit the entire economy.

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

North Port home prices start up from the bottom

2011-10-17T18:51:00.000-04:00

The city -- which now boasts the largest population in the Southwest Florida according to the most recent census findings -- also is on the rise in other ways.

North Port has long been viewed as the epicenter of the foreclosure crisis because of the preponderance of investors in the city, but even the city's distressed sales are showing appreciation.

According to an analysis by Michael Saunders & Co. agent Robert S. Goldman, the average sales price for all properties -- distressed and others -- was $104,400 last month, 15.6 percent higher than the same time a year ago and has been on an "upward trend" for much of 2011.

Also, "the gap between the average list price and the sales price for all properties has narrowed significantly," Goldman noted.

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

BofA pushes short sales, not foreclosures

2011-10-14T00:19:00.002-04:00

Submit a short sale request to Bank of America before Nov. 30 and homeowners could qualify for a $20,000 incentive.

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

Could Google soon power homes?

2011-10-14T00:12:00.000-04:00

Google seems to be everywhere. Internet giant investing $75 million to put solar-panel generators on thousands of homes.

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

Shadow inventory continues to decline

2011-10-13T23:41:00.002-04:00

CoreLogic: The number of homes close to foreclosure fell 16% in one year and 22% since its peak in Jan. 2010.

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

Southwest Florida home sales boom in August

2011-10-13T23:32:00.000-04:00

Home sales boomed in Southwest Florida during August with some of the lowest inventories since the real estate boom. But pricing gave some ground in the short term, likely reflecting the preponderance of distressed properties and the bargain-hungry buyers who are still making a strong play for them. Sales rose 15 percent in the Sarasota-Bradenton market and climbed 11 percent in Charlotte County-North Port from a year ago. That sales strength also was seen at both the state and national levels. Though the median sales price of $155,600 in Sarasota-Bradenton was down 3.2 percent from July, it was up 4 percent from a year ago. Charlotte County-North Port's median was $97,600, down 4 percent from a year ago and 9.5 percent from July.
Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

Foreign buyers have big impact on SW Florida real estate

2011-10-13T23:26:00.000-04:00

Just as tourism has been one of the few bright spots in the Southwest Florida economy, foreign real estate buyers have become a key source of demand for an industry eager for buyers. That has been particularly true for condominiums in Sarasota and single-family homes and vacant lots in North Port. Foreign ownership in Sarasota and Manatee counties jumped 10 percent last year and is up by more than one third since 2007, according to a Herald-Tribune analysis of property records. Owners listing foreign addresses bought more than 1,000 parcels in the two counties last year, totaling more than $100 million in value, the analysis shows.
Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

More home sellers paying full real estate commissions

2011-10-13T22:07:00.000-04:00

FSBOs seemed like a great deal during the real estate boom, but today's sellers understand the value of using an agent.

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

Florida banks offer deals to encourage short sales instead of foreclosures

2011-10-12T15:04:00.000-04:00

Bank of America is testing Florida's foreclosure waters with an incentive program for defaulting homeowners to "short sell" their homes instead of enduring a foreclosure, which can take years. Almost unheard of five years ago, a short sale must be approved by the lender because the sale amount winds up being less than the mortgage owed on the house. Foreclosures have come to cost lenders so much in terms of sunken prices, deteriorated properties and legal fees that Bank of America announced last week that it would give $5,000 to $20,000 to qualified borrowers who submit a short-sale request to the lender by Nov. 30. A seller would be paid if the house is sold by Aug. 31, 2012. Guidelines for Bank of America's new Florida Enhanced Short Sale Relocation Assistance program state that a borrower may use the incentive to pay off existing liens or for relocation expenses. FHA, Ginnie Mae, VA and USDA loans are not eligible. Details are available

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

More homeowners become ‘accidental landlords

2011-10-12T14:59:00.000-04:00

Some landlords out of necessity - those unable to sell a home or cut the asking price - still can't make ends meet.

Pascal Schreier Broker Associate
Pascal@OConnorRealty.info

Cash is king for Southwest Florida real estate

2011-08-25T06:59:00.000-04:00

For Southwest Florida buyers, cash is king — and shows no signs of abandoning its throne. At least three out of every five homes and condos in Southwest Florida are changing hands with no financing, something that would have seemed almost unthinkable during the boom years of easy credit. Multiple Listing Service data show that particular ratio of cash buyers for the 12 months ended July 31 compares with just one out of six in 2006-07. One reason is that loans are simply harder to come by in the post-recession world. Freshly wounded lenders are risk-averse and they are being extremely picky about whom they loan to. But another factor is that buyers themselves have developed an aversion to debt.

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

30-year mortgage falls to lowest on record

2011-08-20T15:39:00.000-04:00

The 30-year FRM dipped to 4.15% from 4.32% a week ago - the lowest level since record keeping began in 1971

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

USDA still offers no-downpayment mortgages

2011-08-20T15:35:00.002-04:00

Department has record $11.2B in money to lend before Oct. 1; buyers in Fla.'s smaller towns and suburbs may qualify!

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

Tourists flock to Florida in second quarter

2011-08-20T15:25:00.002-04:00

Here's some happy news in a time of unemployment and uncertainty: the Sunshine State is still drawing tourists, 7 percent more in the second quarter than a year ago, in fact. Visit Florida, the state's tourism agency, says that 21.2 million travelers visited Florida from April to June, a 6.9 percent increase from the same period in 2010. There also were 5.6 million pleasure trips taken by Florida residents in-state during the second quarter. Overall, there was a 5.3 increase in domestic visitors, a 17.3 percent increase in the overseas market and an 18.4 percent increase in Canadian travel to Florida.

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

IRS's top 10 tax tips for home sellers

2011-08-17T13:53:00.000-04:00

From time to time the IRS releases tips designed to help people with their taxes. Some of these are quite useful.
Last week the agency released "Ten Tax Tips for Individuals Selling Their Home," (IRS Summertime Tax Tip 2011-15).
As a real estate agent or broker, it is...

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

Mortgage rate fall again to near-record low

2011-08-12T15:36:00.002-04:00

Panic may be bad for the economy, but it nudged 30-year FRM to 4.32% this week; 15-year FRM broke record at 3.5%.

Pascal Schreier Broker Associate Pascal@OConnorRealty.info

A special report on Latin America. So near and yet so far

2010-09-13T18:10:00.002-04:00

A richer, fairer Latin America is within reach, but a lot of things have to be put right first.
Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

Costa Rican Real Estate on Slow Upswing

2010-09-13T16:20:00.000-04:00

The consensus among realtors in Costa Rica is that the national real estate market is beginning to show signs of improvement. Small, encouraging, but don't-pop-the-corks-yet signs of improvement.

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

FHA short refinance option now available

2010-09-13T13:53:00.002-04:00

WASHINGTON – Sept. 8, 2010 – In an effort to help responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development (HUD) now provides a new refinancing option for underwater borrowers. Originally announced in March, the enhancement of a Federal Housing Administration (FHA) refinance program offers non-FHA borrowers the opportunity to qualify for a new FHA-insured mortgage. To qualify, the homeowner must be current on his existing mortgage and lien holders must agree to write off at least 10 percent of the unpaid principal balance.

The FHA Short Refinance option is targeted to people who owe more on their mortgage than their home is worth because the local market saw large declines in home values. The Obama Administration hopes the change, as well as other programs that have been put in place, will help up to 4 million struggling homeowners through the end of 2012.

Participation in FHA’s short refinance program is voluntary and requires the consent of all lien holders. To be eligible for a new loan, the homeowner must also qualify under standard FHA underwriting requirements. The property must be the homeowner’s primary residence and the borrower’s existing first lien holder must agree to write off at least 10 percent of their unpaid principal balance. In addition, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent, and a combined loan-to-value ratio no greater than 115 percent.

To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens. To be eligible, servicers must execute a Servicer Participation Agreement (SPA) with Fannie Mae, in its capacity as financial agent for the United States, on or before October 3, 2010.

For more information on FHA Short Refinance option, read FHA’s mortgagee letter: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-23ml.pdf

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

Investment property: four considerations

2010-09-13T13:25:00.002-04:00

NEW YORK – Sept. 7, 2010 – Real estate entrepreneur Ryan Moeller offers these four tips for anyone considering a consumer real estate investment:

1. Don’t count on appreciation. Appreciation is a bonus.

2. Watch the loan-to-value ratio. Ideally, the total cost of the purchase, fees and repairs should be no more than 70 percent of the appraised value of the property in good condition.

3. Maximize annual return. Aim for properties that can be rented for at least 1.5 percent to 3 percent of the purchase price. For example, plan to pay no more than $50,000 for a property that can be rented for $750 per month.

4. Have an exit strategy. Seek properties that are attractive enough to have value no matter what happens to the market – as rentals, for sale to other investors, or for sale to somebody who plans to live there via conventional financing or lease purchase.

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

5 reasons homeownership trumps renting

2010-09-01T09:57:00.000-04:00

NEW YORK – Aug. 31, 2010 – The seemingly endless run of bad housing news is discouraging some potential homebuyers from considering a purchase. But the truth is that the advantages of homeownership have very little to do with investment gains, and a lot to do with personal comfort and satisfaction.

Here are five of them:

• Be your own landlord. The bank can only kick you out if you don’t pay; a landlord can be much less dependable – deciding to sell the property or choosing to live there themselves.

• Paying the principal is forced savings. Yes, it’s possible that home prices will fall further. It is also possible that your 401(k) will lose value. But over the long haul, both are likely to enjoy modest gains in value.

• Fixed-rate mortgages never rise – and eventually you pay them off. With mortgage rates at record lows, people who buy now are locking in real bargains.

• Good schools. Family-sized rentals are harder to come by in areas with excellent public schools.

• Spacious properties in pleasant neighborhoods. Sizable homes in attractive communities are almost always owned – not rented.

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

'A great time' to buy: 6,000 South Florida homes on sale for $50,000 or less

2010-08-31T14:15:00.000-04:00

"Investors are sitting out there and swooping in," Trudel said. "Cash is king."

David Dweck, a real estate agent and founder of the Boca Real Estate Investment Club, said investors must do the proper research to ensure the deals make financial sense. As long as they do that, most of his members find the industry lucrative, he said.

"It's very hard to go wrong when you're buying this cheap," Dweck said.

Even if investors can't resell the homes they've bought, they can rent them and make money, said Peter Zalewski, principal at CondoVultures.com.

"You still can get upwards of $700 a month in rent, and the expenses will be no more than half that," Zalewski said. "You're cash-flow positive from day one."

Last fall, investor Laura Trebatch bought a 1,200-square-foot home off Sample Road in Pompano Beach for $47,000. The home sold for $142,000 in 2003.

The list of fixes was lengthy.

There was an illegal shed that had to be torn down. The three-bedroom house also needed a paint job, along with a new kitchen, bathrooms, a patio and an electrical rewiring. Total cost of repairs: about $15,000.

Once the work was complete, she turned around and sold the home in March to a first-time buyer for $99,000.

Trebatch, 31, a former banker, found the home while on a foreclosure bus tour sponsored by Dweck's Boca Raton investment club. She expects to buy and sell three or four homes this year.

"It's a great time to be buying," she said. "Banks are trying to get rid of their inventory."

She said her business strategy is simple.

"Buy low and sell low. Don't be greedy."

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

Investors turn to flipping for quick profits

2010-08-27T16:16:00.000-04:00

Private equity firms are again purchasing homes at distressed prices, rehabbing them and selling for fast money

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

6,000 properties in South Fla. under $50K

2010-08-27T16:12:00.000-04:00

Number includes 5,400 townhouses/condos and 600 single-family homes in Miami-Dade, Broward and Palm Beach.

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

Buy Owner service is in liquidation

2010-08-27T15:26:00.002-04:00

The Buy Owner broker-free real estate firm, known for its familiar "Thanks, Buy Owner" advertisements, has filed for liquidation as the housing market continues to struggle. The Deerfield Beach-based company will continue to operate with a reduced staff as a buyer is sought for its assets, which could include the purchase of the firm in its entirety, minus its debt.

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

More home sellers cut price

2010-08-12T18:14:00.002-04:00

25 percent of homes on the market in July had price cuts as sellers tried to attract buyers who are dealing with high unemployment rates, lower wages, tighter lending practices and falling home values. For-sale homes also face competition from foreclosures.

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info

Long-feared wave of foreclosures has begun in Sarasota area

2010-08-12T18:06:00.002-04:00

Total filings in the three-county region jumped to 3,349 during July, a 40 percent increase from a month earlier and a 10.6 percent increase from July 2009. Charlotte County led the way with a 61 percent leap, while both Manatee and Sarasota counties saw their increases of more than 26 percent.

Pascal Schreier
Broker Associate
www.PSKM.info

Aid coming to homeowners without jobs

2010-08-12T18:00:00.002-04:00

The Treasury Department will add $2 billion to its existing “Hardest Hit Fund,” assisting the 17 states that have unemployment rates higher than the national average. In addition, a new $1 billion program led by the U.S. Department of Housing and Urban Development will give loans to homeowners who are at risk of foreclosure because of involuntary unemployment, underemployment or a medical condition. The loans, for as much as $50,000, will be interest-free for up to two years.

Pascal Schreier
Broker Associate
www.Pascal@OConorrealty.info

North Port officials get credit warning

2010-08-06T09:10:00.000-04:00

One of the major credit ratings agencies has warned North Port that the city's borrowing power could suffer if it does not start living within its means. Last week, Fitch Ratings revised one of its assessments of North Port's financial condition from "stable" to "negative," citing a chronic budget imbalance that the city has failed to address. Instead of cutting spending, the city has been spending its savings.

Pascal Schreier
Broker Associate
www.PSKM.info

Five reasons to buy a home now

2010-08-05T11:44:00.002-04:00

Five reasons to buy a home now
The tax credit expired, but it’s still a great time to buy a home thanks to low mortgage rates and motivated sellers. Here are five reasons why now is a great time to buy:

1. Low mortgage rates serve as an equity shock absorber. When buyers borrow at today’s record-low rates, they start building equity as soon as they close. That means they can absorb a few ups and downs as the still-recovering housing market gains traction.

2. Houses are in move-in condition. Homeowners continue to spend on maintenance and repair, according to the Harvard Joint Center on Housing. As these houses enter the market, they stand in marked contrast to tattered foreclosures.

3. Terrific houses are coming on the market. Foreclosures are finally starting to clear the system, and they are being replaced by some very attractive properties.

4. Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines, giving appraisers more flexibility to set values that reflect the current market.

5. Plenty of programs. Many programs that encourage middle-class families to buy homes still exist, despite market downturns. Buyers who qualify can get a big boost by combining one of these programs with today’s low mortgage rates.

Pascal Schreier
Broker Associate
www.PSKM.info

Right price helps sell homes

2010-07-30T10:46:00.000-04:00

What matters is what buyers are willing to pay; helping sellers figure out the right pricing in today's market isn't easy

Pascal Schreier
Broker Associate
www.PSKM.info

South Florida mortgage rates at record lows, but who can get them?

2010-07-27T13:24:00.000-04:00

Mortgage interest rates dropped to record lows last week, hitting rates not seen since the 1970s. But brokers say few of the many South Florida homeowners rushing to take advantage and refinance their loans will be able to qualify. The region's high levels of unemployment and depressed property values have made it tougher for many borrowers, and lenders are demanding better credit histories and proof of income before they'll refinance a loan. Only about half of those in the region seeking to refinance may actually qualify for a loan - far lower than before the housing market bust, South Florida mortgage brokers say.

Pascal Schreier
Broker Associate
www.PSKM.info

See what mortgage problems and mortgage modifications do to your credit score

2010-07-27T13:22:00.000-04:00

Sometimes you are doomed if you do and doomed if you don't.

That's the case now with mortgage payments you can't afford to pay. When you are missing payments, you are lowering your credit score, so your lenders get rough on you -- increasing interest on credit cards, for example, and making it harder to get your feet on the ground. On the other hand, your score also gets hammered if you get a loan modification.

A measure before Congress would provide some relief. See my Chicago Tribune column.

But with or without help on your credit score from this bill sponsored by Democrat Jackie Speier, of San Francisco, you will see that it pays to get a modification if you can. If you, instead, end up having to give up your home in foreclosure or a bankruptcy the consequences are much worse.

To see the impact of each possibility, consider this data from VantageScore, which provides credit scores to some banks. It's a different group than FICO, the organization that is most often referred to in the media when talking about credit scores. FICO doesn't provide the detail of VantageScore. But by seeing the impact of mortgage changes on VantageScores you can imagine a similar impact -- on a percentage basis -- on a FICO score.

VantageScore, which comes from the Experion credit scoring firm, gives you a score ranging from 501 to 990. FICO scores run from 300 to 850.

I am going to show you different mortgage changes or consequences using VantageScores -- 862, which in school would be equivalent to about a B+, and 625, which would be about a D.

So here's what certain actions would do to the scores.

Action: Loan modification/borrower responsible for new loan
Person with 862: With no prior defaults -- or missed payments -- on any loan or credit card, the person would lose 14 to 20 points on their credit score

Person with 625: With past defaults on loans and credit cards, the person would lose
2 to 5 points on their score.

Action: Short sale

862: With no prior default, the person would lose 120 to 130 points on their score.

625: With defaults from the past, the person would lose 15 to 25 points on their score.

Action: Foreclosure: Foreclosure initiated, payment made

862: With no prior defaults, the person would lose 115 to 125 points.

625: With defaults from the past, the person would lose 5 to 10 points

Action: Foreclosure: Foreclosure initiated

862: With no prior defaults, the person would lose 130 to 140 points.

625: With defaults from the past, the person would lose 10 to 20 points.

Action: Bankruptcy/filing for mortgage only

862: With no prior defaults, the person would lose 65 to 175 points.

625: With defaults from the past, the person would lose 20 to 30 points

Action: Bankruptcy/all accounts in filing

862: With no prior defaults, the person would lose 355 to 365 points.

625: With defaults from the past, the person would lose 110 to 120 points.

If you are wondering why the person with the higher credit score faces a bigger plunge in their score in each instance, it's because the person with the lower score has already been knocked down for defaults in the past. The problems are already embedded in their score. Meanwhile, the high-scoring person faces defaults for the first time when encountering housing problems.

Pascal Schreier
Broker Associate
www.PSKM.info

Persuade sellers to accept realistic pricing

2010-07-20T11:11:00.002-04:00

1. Tell them the odds. Calculate the absorption rate in their area. Divide “1” by the number of months of housing inventory. For instance, if there are 12 months of inventory on the market, the probability of selling in any given month is 8.3 percent. The probability of not selling is 91.7 percent.

2. Explain the cost of not selling. That includes paying the mortgage, insurance, utilities, etc., plus the cost of any further price declines.

3. Compare the price per square foot. Show the seller the prices of comparable homes sold on a price-per-square-foot basis.

4. Point out how much lenders are willing to loan on similar properties. If a house can’t qualify at the price the sellers seek, few will be able to buy it.

5. Show them the goods. Take sellers on a tour of competing properties and show them the online tours of those that sold previously.

6. Use online pricing tools. Sites such as Zillow.com can help you demonstrate competitive pricing.

Pascal Schreier
Broker Associate
www.PSKM.info

Americans' credit scores sink to new lows

2010-07-16T13:55:00.002-04:00

One in four Americans has a credit score below 599, FICO reports, making 25% of the population a poor risk in lenders' eyes.
Pascal Schreier Broker Associate
www.PSKM.info

Mortgage rates tie record low

2010-07-16T13:36:00.001-04:00

Mortgage rates were unchanged this week at 4.57%, matching last week's record low.

Pascal Schreier
Broker Associate
www.PSKM.info

Homeowners file suit against assessments

2010-07-16T12:48:00.000-04:00

TALLAHASSEE, Fla. – July 14, 2010 – A group of Gulf coast homeowners have sued local property appraisers and the Florida Department of Revenue to reduce assessments on coastal property they say has been significantly devalued from oil spilling into the Gulf and washing ashore.

In a lawsuit filed July 2 in the Second Circuit Court in Tallahassee, attorneys in the class action lawsuit filed on behalf of Franklin, Okaloosa and Bay County property owners argued that the spill has caused long-term damage that will affect the value of their property for years to come.

“The alleged oil spill and related pollution infiltrations and threatened infiltrations have substantially caused, and will continue to cause, a diminution in the just value of the residential coastal properties of plaintiffs and the plaintiff class members immediately and in the foreseeable future,” the lawsuit contends.

The group is seeking declaratory judgment.

Source: News Service of Florida

Pascal Schreier
Broker Associate

Home buyers get longer to complete tax incentive requirements

2010-07-02T12:39:00.002-04:00

Home buyers worried about closing their house purchases by the tax credit cutoff can relax after the government extended the deadline. Congress sent President Barack Obama a plan that he is expected to sign to give home buyers an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.

Pascal Schreier
Broker Associate

Mortgage rates at lowest point since 1971

2010-06-25T17:38:00.000-04:00

Mortgage rates at lowest point since 1971
The average rate for 30-year FRMs sank to 4.69% this week - the lowest point since Freddie Mac began tracking.

Pascal Schreier
Broker Associate

In SW Florida home market, a bit less distress?

2010-06-24T17:36:00.000-04:00

Foreclosures leveled off during May in Southwest Florida, the third consecutive month that the total number of filings has declined. The tally of filings representing the start of the foreclosure process also dropped for the third month in a row, though the reading for banks actually seizing a property did not show the same increase that it had in previous counts. others think that another major factor in the apparent stabilization of the distressed-property market is that banks are letting delinquent borrowers stay longer in their homes rather than adding to the glut of foreclosed properties on the market.

Pascal Schreier

Broker Associate
941 628 6000

For sale? Yes, no, maybe

2010-06-24T17:18:00.000-04:00

Even with easier credit and low home prices, real estate pros are seeing more transactions fall apart at the last minute.

Pascal Schreier

Broker Associate 941 628 6000

Home size declines; buyers want one story

2010-06-24T17:16:00.000-04:00

For almost 30 years, average sizes increased, peaking at 2,521 square feet in 2007; but in 2009, it was down to 2,438
Pascal Schreier
Broker Associate
941 628 6000

May Shows a Continued Strong Pace for Existing-Home Sales

2010-06-24T16:01:00.001-04:00

Existing-home sales remained at elevated levels in May on buyer response to the tax credit, characterized by stabilizing home prices and historically low mortgage interest rate. Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, were at a seasonally adjusted annual rate of 5.66 million units in May, down 2.2 percent from an upwardly revised surge of 5.79 million units in April. May closings are 19.2 percent above the 4.75 million-unit level in May 2009; April sales were revised to show an 8.0 percent monthly gain.

Pascal Schreier
Broker Associate
941 628 6000

Data illustrate more pain in housing market

2010-05-27T14:43:00.000-04:00

The housing market is in a tentative recovery. Sales of previously owned homes jumped nearly 8 percent in April compared with the previous month, for example. And there was some positive news in the Case-Shiller data: Prices were up about 2.3 percent compared with the same period last year.

"The housing market may be in better shape than this time last year; but when you look at recent trends, there are signs of some renewed weakening in home prices," David M. Blitzer, chairman of the Index Committee at Standard & Poor's, said in statement.

The recent weakness in prices is disappointing given record-low mortgage rates and a homebuyer tax credit that helped boost sales through the first few months of this year, analysts said. The tax credit expired last month, and home sales are expected to decline in its absence.

"We haven't turned the corner on home prices," said Steven Ricchiuto, chief economist for Mizuho Securities in New York.

The Case-Shiller index measures repeat sales of homes and reflects a rolling three-month average, so the March data also captured transactions that closed in February and January.

There is still an oversupply of homes on the market, particularly foreclosures, said Patrick Newport, U.S. economist for IHS Global Insight. Foreclosed properties typically sell at a discount, bringing down neighboring home values.

The "housing glut and foreclosures" will drive the Case-Shiller index down another 6 to 8 percent before reaching bottom in 2011, Newport said. "Prices appeared to stabilize late last year, and they are now starting to edge down again," he said. "With the tax credit gone, sales are going to drop, and we're going to see that trend continue."

Another index tracking price changes in homes with loans backed by Fannie Mae or Freddie Mac provided a mixed picture. Prices of homes sold in March were up slightly, 0.3 percent, compared with February, according to data released by the Federal Housing Finance Agency, which regulates the mortgage-finance companies. But that increase was offset by a 1.9 percent decline in prices during the first quarter compared with the previous quarter and a 3 percent decline compared with the first quarter of 2009.

Overall, home prices are likely to gradually fall an additional 5 percent through the end of 2011, said Paul Dales, an economist at Capital Economics. "I don't think we're going to get anything like the crash [in prices] we had before," he said. "It won't be a disaster, but it will undermine the wider economic recovery."

Copyright © washingtonpost.com

Pascal Schreier
Broker Associate

Southwest Florida housing upswing continues

2010-05-25T16:53:00.000-04:00

April was fiesta time in the Southwest Florida real estate market, with another month of sales harkening back to the boom times of mid-2005. In Charlotte County-North Port -- which has not seen a drop since December 2008 -- sales rose 6 percent last month. Prices also continued their upswing, rising 5 percent in Sarasota-Bradenton to $163,600 from a year ago and 20 percent in Charlotte County-North Port to $114,500.

Pascal Schreier
Broker Associate
www.PSKM.info

homestead info

2010-05-25T16:39:00.000-04:00

Save Our Homes limits tax increases when real estate values go up, but the state's recapture rule has the opposite effect. It raises assessments by up to 3 percent when values drop, which they've been doing in recent years. That's reduced some of the advantage longtime primary homeowners received from Save Our Homes.

Pascal
Broker Associate
941 628 6000

Fla. jobless rate better: 1st time since '06

2010-05-25T16:30:00.000-04:00

Florida's unemployment rate improved in April for the first time in over four years, with 15,500 more workers finding jobs than those who lost them, state labor officials reported Friday.

More than 1.1 million Floridians remained jobless and the unemployment rate was 12 percent. That was slightly better than a record 12.3 percent in March, the first improvement in the state's employment numbers time since February 2006, the Agency for Workforce Innovation said.

It provided a morsel of good news for Florida's governor, Charlie Crist, who has been dealing with a recalcitrant Legislature on a variety of issues and an oil slick in the Gulf of Mexico that could sully the state's beaches. It was the first time since Crist took office in January 2007 that unemployment numbers didn't worsen.

The impact of the April 20 explosion of a BP oil rig that led to millions of gallons of crude oil contaminating the Gulf and threatening the coastal areas of several coastal states was not calculated in Florida's April unemployment numbers, which remain well above the national average of 9.9 percent. The Deepwater Horizon accident occurred after AWI's survey week (April 11-17), chief economist Rebecca Rust said.

But it could figure into the May figures if tourism is adversely affected by the threat of the oil coming ashore as feared by some officials.

"Florida beaches have not experienced any impact from the oil spill in the Gulf at this time, and we are continuing to work to reduce its effect on our economy," said Crist, who bolted the Republican Party last month to make an independent run for the U.S. Senate. "Florida is open for business."

Pascal
941 628 6000

What to watch for when buying a vacant home

2010-05-20T14:12:00.000-04:00

DETROIT – May 20, 2010 – When it comes to the housing market for foreclosures – buyer beware.

"One mistake that we see all the time is buyers going in and assuming all the mechanicals are working," said Brandon T. Johnson, president of GTJ Consulting in Roseville, Mich. "You have to be careful you don't get burned that way."

Johnson's company maintains foreclosed homes for a number of lenders, Realtors and Freddie Mac. He said the term "as is" shouldn't scare buyers off as long as they know what it means. He recommends that buyers get private inspections on houses they want to buy to avoid surprises such as missing plumbing or water damage.

Here's a list of 10 things to watch for in foreclosed or vacant homes from Ross Kollenberg, mitigation and construction manager for On-Site Specialty Cleaning & Restoration in Troy, Mich:

1. Air quality. This tells a lot about the home's condition. Include air and surface testing in your home inspection. It is a few hundred dollars well spent.

2. Black cobwebs, greasy gray residue on walls and/or a strong oily odor. This is soot damage, which requires professional cleaning, and points to a malfunctioning furnace. It also could be a tip-off that the home had a fire.

3. Discolored subflooring. From the basement, check the subflooring above for stains and small holes, both caused by mold.

4. An older home with extensive renovations. Check with the city for permits: You'll get remodeling details. If asbestos or lead paint is present and has been disturbed, be sure it's been remediated by a certified specialist. It the home has four or five major changes, it may not be up to code, and that could mean extensive fixes for the next owner.

5. Peeling, bubbling, and discolored paint; swelling in walls or ceilings (especially around kitchens and bathrooms); a musty odor: All indicate water damage and, potentially, the presence of moisture and mold.

6. Missing sinks, toilets and other fixtures. Sometimes the previous owner will take the fixtures with them, but won't shut off the pipes or will rip fixtures from the wall. If a pipe was cracked during the fixture removal, it could start a slow leak in the wall that isn't easily seen. Make sure those fixtures have been properly removed and not ripped from walls and floors.

7. Fungus growth inside cabinets, behind drawers and built-ins. That could mean there has been water damage. Since water falls down, look for the source above the mold. One trick inspectors use to determine whether there could be hidden water damage is to pull out the kitchen drawers and look inside to see whether the back wall has been rebuilt. If it has, that could mean water damage has been covered up.

8. Excessive painting of every nook, cranny, door and floor. The seller may be covering up mold. "When you go do a home that is 'landlord white' and the trim is flat, we tell people there is a reason the house was painted this way," Kollenberg said. "When we see it is over everything, it is a tip-off that it is just covering something up."

9. Unheated house in winter months. If the home has been properly winterized, there's no need for heat. If not, pipes will burst and cause water damage.

10. Blocked drains or pipes. These will cause future problems and may have already created sewage backups. Check for a telltale water ring in the basement, Kollenberg said.

Pascal Schreier
Broker Associate
941 628 6000
www.PSKM.info

Will home prices have a ‘saw-tooth’ effect?

2010-05-18T15:58:00.002-04:00

ATLANTA, Ga. – May 18, 2010 – Some housing experts now predict what one calls a "saw-tooth bottom" to the housing market, driven by a shadow inventory that could include up to 4.5 million properties.

This shadow inventory is more than just bank-owned homes not yet on the market. It also includes sellers who would like to sell but, fearing they can't, are waiting for signs of a market bottom before putting their homes on the market.

"These sidelined sellers closely watch the market for signs of a possible turnaround and rush in if there's a hint of good news," says Leslie Appleton-Young, chief economist for the California Association of Realtors.

This rush to sell will add inventory to the market and at least temporarily drive prices back down – hence, the "saw-tooth" description.

Stan Humphries, chief economist for Zillow.com, describes the potential problem this way: "Prices go up; inventory rises, which sends prices down again. That plays out for three to five years of no appreciation. … Without price appreciation, it leaves more homeowners in negative equity. That's toxic. Any setback, like a job loss, they go into foreclosure."

Pascal Schreier
Broker Associate
941 628 6000
www.PSKM.info

Housing starts rise 5.8% in April

2010-05-18T15:53:00.000-04:00

WASHINGTON – May 18, 2010 – Nationwide housing starts rose 5.8 percent to a seasonally adjusted annual rate of 672,000 units in April as the deadline for an important homebuyer tax incentive arrived, according to figures released today by the U.S. Commerce Department.

"While some of the starts activity noted in today's report reflected homes for which buyers had just signed a contract at the tail-end of the tax credit program, the rest was probably tied to builders replenishing their inventories in preparation for the post-tax credit era," says Bob Jones, Chairman of the National Association of Home Builders (NAHB). "That said, builders are maintaining a cautious attitude with regard to new building as the economy and housing markets slowly recover."

On the down side, building permits, an indicator of future building activity, slid 11.5 percent in April to a seasonally adjusted annual rate of 606,000 units. It reflected a 10.7 percent decline on the single-family side and a 14.7 percent decline on the multifamily side.

"The drop-off in building permits in April indicates that builders are working down the inventory of permits pulled in the previous month and taking care not to get ahead of the market," says NAHB Chief Economist David Crowe. "Builders also continue facing difficulty in obtaining project financing, which will limit the pace of a housing recovery."

Single-family housing starts surged 10.2 percent to a seasonally adjusted annual rate of 593,000 units in April, the strongest rate since August 2008. Meanwhile, multifamily starts posted an 18.6 percent decline to a 79,000-unit rate, offsetting a big gain posted by that sector in the previous month.

Three out of four regions posted solid gains in new housing production in April. Combined single- and multifamily starts rose 23.9 percent in the Northeast, 16.7 percent in the Midwest and 7 percent in the South. The West registered a 13.3 percent decline.

Conversely, permit issuance was down in three out of four regions in April. The Northeast posted a 7.4 percent decline, the South registered a 14.3 percent decline and the West posted a 16 percent decline. Permit issuance remained unchanged from the previous month in the Midwest.

Pascal Schreier
Broker Associate
941 628 6000
www.PSKM.info

Economists: Improved housing market but timing uncertain

2010-05-17T16:52:00.002-04:00

WASHINGTON – May 17, 2010 – Two top housing economists forecast some encouraging but tempered predictions for the housing market over the next few years during an economic session at the National Association of Realtors® Midyear Legislative Meetings & Expo today.

Lawrence Yun, NAR chief economist, and Mark Zandi, chief economist and co-founder of Moody's Economy.com, agreed that job creation is key to an economic and housing recovery, with job creation expected as the year progresses. But they differed somewhat on the impact that foreclosures will have on home price stabilization. Both project that mortgage interest rates will remain historically low, the availability of jumbo loans will improve, and home sales will rise over the next few years.

On the effect of the homebuyer tax credit, Yun said that the broader view would assert that the credit added 1 million buyers, reduced housing inventory by 1 million, and in turn, reduced the supply of housing by two to two-and-a-half months.

"This corresponded with a positive home price impact of 5 to 8 percent percentage points," Yun said. "Stabilizing home prices will limit future foreclosures. But those with a dimmer view would say that billions of dollars were wasted on people who would have bought anyway."

Yun expects a slightly stronger demand for housing and a fairly even level of foreclosures entering the inventory pipeline before easing in 2011. "We expect distressed home sales to account for 30 to 40 percent of transactions for the remainder of this year," he said.

Zandi also forecasts improving demand for housing, but with foreclosures rising later in 2010 before easing in 2011. He said home prices may weaken this year. "The housing crash is over – nearly. We are now near the bottom," he said. "There will be no real price growth in 2010 or 2011. Whether home prices weaken is unclear, but it will take two more years to work off excess housing inventory at the current sales pace. Of course, if demand picks up, it would take less time for prices to rise."

With improved market fundamentals and rising consumer confidence, Yun thinks home prices could rise 2 to 3 percent this year; but within the next two to three years, he suggests there could be stronger upward pressure on prices from a potential housing shortage because housing construction has fallen significantly below long-term demand.

Zandi said that the Fed won't raise interest rates until the unemployment rate is heading south, but that deficit spending is the greatest threat to the U.S. economy. "The debt-to-GDP (gross domestic product) ratio is extremely high and troubling, meaning we could have measurably higher interest rates in 2011 and 2012."

Pascal Schreier
Broker Associate
941 628 6000
www.PSKM.info

Commercial market struggling but Realtors focus on positive trends

2010-05-17T16:50:00.000-04:00

WASHINGTON – May 17, 2010 – While the commercial real estate market may not have fully recovered, National Association of Realtors® (NAR) Chief Economist Lawrence Yun identified some developing, positive trends in the market that could eventually lead to recovery at the "Economics Issues and Commercial Business Trends Forum" last week.

"With the momentum of a broader economic expansion and the recent creation of jobs, the commercial market is showing slight signs of improvement," said Yun. "There will likely be weaker figures through 2010, but it's important to keep in mind that commercial real estate almost always lags the economy by a full year."

Yun said jobs only began increasing a couple of months ago and are still below peak. "We have turned a corner in terms of jobs, but we still have a long way to go."

The commercial market has seen a few improving trends in recent months. The market is experiencing an increase in transactions due to more distressed properties available, and prices are beginning to stabilize. Yun believes within the next year more lending will slowly become accessible to commercial property owners. Two commercial sectors showing the most promise are manufacturing and multifamily. Manufacturing activity and employment have risen recently and because household formation is also rising, the multifamily sector will likely fare the best during this economy.

Despite some of these promising trends, the commercial market is still experiencing high vacancy rates and rent concessions. "All real estate is local, but I expect to see vacancy rates bottoming out and rent rising by next year," said Yun.

Yun also warned against some of the possible risks commercial practitioners may experience in the future such as high interest rates and inflation, as well as increased taxes for commercial real estate investors.

During the session, two leading economic experts – Diane Swonk with Mesirow Financial and Brendan Reilly, Commercial Mortgage Securities Association – joined Yun. The panelists agreed that an improving economy and job creation continue to be the two main factors when it comes to restoring the commercial real estate market.

"The commercial market may not be where we would like to see it right now, but it is trending up," said Swonk. "The economy is slowly stabilizing and jobs are steadily rising, but full recovery cannot happen without liquidity. Liquidity is the fuel for the engine in the commercial real estate market."

Pascal Schreier
Broker Associate
941 628 6000
www.PSKM.info

Mortgage rates drop to lowest level this year

2010-05-15T14:34:00.000-04:00

WASHINGTON – May 14, 2010 – Mortgage rates fell this week to the lowest level of the year, as rates fell on U.S. government securities. Fixed mortgage rates closely track interest rates paid on long-term Treasury bonds.

The average rate on a 30-year fixed rate mortgage dipped to 4.93 percent this week from 5 percent a week earlier, Freddie Mac said Thursday. It was the lowest level since mid-December, when rates averaged 4.81 percent.

The drop came as investors shifted money from risky European debt to safer U.S. securities. Bond yields fell as a result, and that lowered mortgage rates.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

The average fixed rate dropped to a record low of 4.71 percent late last year, pushed down by a campaign by the Federal Reserve to reduce borrowing costs for consumers. The program ended this spring, but rates have remained low, especially after fears that Greece's government would default shook world markets.

"In times of nervousness, everybody seeks the safe haven," said Greg McBride, senior financial analyst at Bankrate.com

The last time rates for 30-year fixed mortgages averaged less than 5 percent was the week of March 25, when they were 4.99 percent.

This week, the average rate on a 15-year fixed-rate mortgage was 4.30 percent, down from 4.36 percent last week.

Rates on five-year, adjustable-rate mortgages averaged 3.95 percent, down from 3.97 percent a week earlier. Rates on one-year, adjustable-rate mortgages fell to 4.02 percent from 4.07 percent.

The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount.

The nationwide fee for loans in Freddie Mac's survey averaged 0.7 of a point for 30-year loans 0.6 of a point for 15 year, 5-year and 1-year loans.

Pascal Schreier
Broker Associate
941 628 6000
www.PSKM.info

Home prices could sink again

2010-05-13T12:34:00.002-04:00

McLEAN, Va. – May 12, 2010 – Home prices are widely expected to fall now that a tax credit for homebuyers has expired.

That's raising concern about a possible double dip in home prices.

National housing prices stopped falling early last year and rose 0.3 percent over the 12 months ended in February, according to a study by real estate analytics firm CoreLogic.

The firm predicts prices will fall this year before starting to rise again in late 2010. Even so, next February's prices are likely to be 4.2 percent lower, it forecasts.

"Home prices will struggle for maybe another year," says Mark Fleming, CoreLogic's chief economist.

A shrunken pool of buyers due to the tax credit's expiration is one reason.

"The tax credit is the big reason home prices have been so buoyant, and sales will drop" with its expiration, says Paul Ashworth of Capital Economics. "You will see a double dip in housing prices."

Another reason is the number of distressed houses – including foreclosures and short sales – that are on the market or that will be in coming months.

Distressed homes, typically sold at discounted prices, accounted for 36 percent of first-quarter sales, the National Association of Realtors reported Tuesday. The first quarter's median single-family home price ($166,100) was roughly flat with a year earlier, despite gains in nearly two-thirds of 152 metro areas that the NAR surveys.

The NAR's survey isn't the first to show evidence of softening prices. The 20-city Standard & Poor's/Case-Shiller home price index has fallen for five-consecutive months through February.

"It is too early to say the housing market is recovering," David Blitzer, chairman of S&P's index committee, said when the Case-Shiller report for February was released last month.

There may be some good news for sellers in areas not hit so hard by foreclosures. When distressed sales are excluded, CoreLogic's home price index shows a 4.9 percent rise in U.S. prices from this February through next February.

While some economists expect home prices to weaken, they don't expect a major drop.

"I wouldn't expect anything like the meltdown we've had over the past couple years," says Jay Feldman, senior economist at Credit Suisse.

Pascal Schreier
Broker Associate
941 628 6000
www.PSKM.info

Short sale and foreclosure specialists were expecting a deluge of new filings in April, but just the opposite occurred.

2010-05-13T12:21:00.000-04:00

Foreclosure filings dropped significantly last month -- both locally and nationally, data released Wednesday by California-based RealtyTrac Inc. showed.

Without more inventory of foreclosed homes coming into the market, Southwest Florida real estate agents say they are seeing more competition for existing supplies and more upward pressure on prices.

"When a bank lists a foreclosed home for sale, we are seeing 22 offers on it," said Gina Amato Brown, an agent with Re/Max Palm Realty in North Port. "There are so few out there. Even short sales only take three or four days to get under contract."

Because so many more people are bidding against each other on bank-owned properties, they are more likely to meet or exceed offering prices. "I am seeing homes that sold for $100,000 last year, selling for $110,000 to $115,000 this year," Brown said.

But not every segment of the market is behaving the same way. Agents are seeing an increase in foreclosures against owners of luxury properties as well as shopping centers, office buildings, hotels and other commercial space.

"The higher-dollar stuff is really up," said Jules Roman, owner of Tarpon Coast Realty in Boca Grande. "A lot of people with deeper pockets who had been hanging on are deciding that they're so upside down that it isn't worth it any more."

Nationwide, there were 337,837 foreclosure filings in April, a 9 percent decrease from the previous month and a 2 percent decrease from April 2009.

In Southwest Florida, the decline was even more pronounced.

Sarasota County's 927 filings represented a 31 percent drop from a month ago and a 28 percent decline from April 2009, while Charlotte County's 561 filings represented a 42 percent drop from the previous month and a 26 percent decline from a year ago.

"It think we're seeing the slowdown now," said Irv Degraw, a St. Petersburg College banking professor. "We're at the latter stages of the low-end foreclosures. But the high end still remains a question mark."

Market experts say government programs designed to get banks to renegotiate with borrowers and to speed up their decisions on short sales may be helping to slow the foreclosure flow.

"I do think short sales are moving quicker, and that may have something to do with government action," said Brown, the Re/Max Palms agent. "Instead of taking six months to respond, we're seeing banks give us an answer in a month or two."

That means fewer people are becoming discouraged with the short-sale process and more people are contemplating jumping in, Brown said.

Real estate experts also say they are encouraged by a general increase in demand, which appears to be coming from around the country and beyond.

"We're seeing a lot of vacation buyers from other states and a lot from Canada," Brown said. "The last three people I met with wanted to buy retirement homes early because the price points are so good. Why wait to buy if you already know prices are at the bottom?"

RealtyTrac's data shows the drop in foreclosures only applies to early-stage filings.

In Southwest Florida's three counties, for example, there were 1,028 initial-stage foreclosure filings in April -- a 34 percent drop from March and a 58 percent drop from the same month a year ago.

By contrast, late-stage foreclosure filings, which represent the moment a bank seizes a property from a borrower, were way up.

"Bank repossessions, or REOs, hit a record monthly high for the report even while default notices dropped substantially on a monthly and annual basis," said James J. Saccacio, chief executive officer of RealtyTrac. "We expect a similar pattern to continue for most of this year, with the overall numbers staying at a high level and ripples of activity hitting the various stages of the foreclosure process as lenders systematically work through the backlog of distressed properties."

In Southwest Florida, banks repossessed 790 properties during April -- three times as many as were seized in April 2009 and a 27 percent increase from March.

How fast banks can get rid of those properties is an open question, said Degraw, the banking professor.

"We already see buying increase, especially at the low end," he said. "That will continue as long as buyers believe there are enough bargains."

Pascal Schreier
Broker Associate
941 628 6000
www.PSKM.info

Home sale prices up 8 percent

2010-05-12T12:37:00.000-04:00

Home prices rose 8 percent in both Sarasota-Bradenton and Charlotte County-North Port during the first quarter from a year ago, but were down from a busier fourth quarter.

The big questions hanging over the Southwest Florida real estate market are what impact the end of federal tax credits will have on sales and whether distressed properties will continue to hold down prices.

In all, about 2.2 million households had used the first-time buyer credit as of late March at a cost of $16 billion, according to the Internal Revenue Service.

In the Charlotte County-North Port market, the first-quarter median was $103,500 compared with $95,500 a year ago. The most recent price was down 3.5 percent from $107,300 in the fourth quarter.

Sales in both markets rose from a year ago.

The quarter saw 2,464 homes change hands in Sarasota-Bradenton, a 34 percent increase, while the 746 sales in Charlotte County-North Port was a 9 percent gain.

When compared with the fourth quarter, sales were roughly flat in Sarasota-Bradenton and down 5.6 percent in Charlotte County-North Port.

Pascal Schreier
Broker Associate
941 628 6000
www.PSKM.info

Florida’s existing home, condo sales up in 1Q 2010

2010-05-11T19:42:00.000-04:00

A total of 38,846 existing homes sold statewide in 1Q 2010; during the same period the year before, a total of 31,410 existing homes sold. It marks the seventh consecutive quarter that Florida has seen higher existing year-to-year home sales, according to the state association.

Statewide sales of existing condominiums in the first quarter rose 67 percent compared to the same time the previous year. This marks the sixth consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.

The first quarter data release from the Florida Realtors paints a picture of a housing market continuing down the long road to recovery," said Dr. Sean Snaith, director for the University of Central Florida's Institute for Economic Competitiveness.

Transactions in the single family market have extended quarterly year-over-year gains for nearly two years, and condo sales have also risen sharply. Median prices in most areas of the state continue to fall; however, the rate at which they are falling has diminished significantly and this is indicative of a bottom approaching.

"How long prices stay at the bottom and when price appreciation will reappear will depend in a large part on the improving fundamentals in the economy and credit markets."

The University of Florida's Bergstrom Center for Real Estate Studies' latest quarterly survey of real estate trends also notes positive signs of recovery in the state's real estate industry. The survey polls market research economists, industry executives, real estate scholars and other experts.

"Results indicate that the real estate market in Florida has hit bottom and is in the process of stabilizing across most property types," said Timothy Becker, the center's director. Private capital – both foreign and domestic – continues to enter the state in search of quality investment deals, he added.

The statewide existing-home median sales price was $133,800 in 1Q 2010; a year earlier, it was $140,900 for a decrease of 5 percent. According to industry analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is a typical market price where half the homes sold for more, half for less.

Pascal Schreier
Broker Associate
941 628 6000
www.PSKM.info

Something strange is happening in North Port.

2010-05-10T12:01:00.004-04:00

Building lots are beginning to sell again, and some are being bought and resold for quick profits by investors. Court records also show that Landamerica Inc., a Sarasota company that has been buying and selling lots in North Port since 1994, has bought 12 lots so far this year for $2,900 per lot and sold 12 for $5,500 per lot. Willis Miller, whose family owns and operates Landamerica, said his company has sold many more lots than that but they have not shown up in court records yet. "We're seeing a lot more activity than last year," Miller said. "Foreigners are seeing the value. People from Indiana and Ohio and other states are seeing the value. They know that some day these lots will cost a lot more than they do now." Miller said some investors who paid too much for lots during the boom are also re-entering the market.

Pascal Schreier
Broker Associate
941 628 6000
www.PSKM.info

Mortgage insurer says housing is recovering

2010-05-06T17:04:00.002-04:00

WASHINGTON – May 5, 2010 – Mortgage insurer PMI released a report Monday that indicates a housing market recovery and predicts that prices are likely to rise in many markets over the next two years.
Florida, California, Nevada and Arizona have the highest risk score MSAs. Of the top 10 high-risk scores, seven are in Florida: Naples-Marco Island, Cape Coral-Fort Myers, Lakeland-Winter Haven, Palm Coast, Miami-Miami Beach-Kendall, Port St. Lucie and Fort Lauderdale-Pompano Beach-Deerfield Beach.
On the other hand, two Florida cities ranked in the top 10 for "Housing Affordability" under "Best Performing MSAs," including one considered high risk: Cape Coral-Fort Myers and Sebastian-Vero Beach.
The study also noted that the states hit hardest by the recession, including Florida, made a sizable improvement – the highest ever measured – in declining numbers of new foreclosures.
In calculating risk factors, PMI considers affordability, mortgage credit quality, decreasing foreclosure rates and the direction of the area's housing supply.
Pascal Schreier
Broker Associate
941 628 6000
www.PSKM.info

Foreign buyers kick-start condo sales

2010-05-04T15:47:00.000-04:00

With the region's population basically stagnant and unemployment at or near record levels, the question is: Who is buying all of these units?
According to brokers, industry reports and others, foreign buyers are largely behind the surge.
"They are paying all cash, and their primary purpose is to get a monthly rented unit that provides cash flow with the expectation of some appreciation," said Alec String, a broker with Coldwell Banker NRT Development Advisors in Longwood.
Unlike the deals that drove condo speculators during the homebuying frenzy of the mid-2000s, these sales aren't based on incentives or inflated promises of rental income,
The sharp decline in prices since the market's peak in 2005-06 is part of the reason Florida accounted for almost one-fourth of all U.S. property purchases by international buyers in late 2008 and early 2009, according to a report by the National Association of Realtors. California was second with a 13 percent share of the foreign market.
Nationwide, those foreign buyers paid a median of $247,100 during the period studied, compared with a median of $198,100 for all buyers. About 70 percent of the purchases were single-family homes, 18 percent were multifamily, and the rest were commercial properties.
In Florida, most foreign buyers hail from the United Kingdom, other parts of Europe, and Canada.
James Black, managing partner of a London-based company, Ultimate Holdings, said the British outfit has raised about $50 million to purchase distressed properties in the U.S., starting with properties in the Orlando area.
In February, Ultimate Holdings purchased 122 units in a 240-unit Davenport condominium called the Village at Town Center, paying a combined $5.38 million. The company has improved the units, which start at $54,000 for a one-bedroom model, and says it has 37 buyers under contract. Most of its customers are from the U.K., Canada and Switzerland.
"They really have expressed some strong interest this year, but they're having difficulties finding bargains," said Jim Fetgatter, the group's chief executive.
The last time members felt as strongly about U.S. real estate was in 2003, Fetgatter said. In the group's fourth-quarter survey, two-thirds of those who responded plan to increase their U.S. holdings this year compared with 2009.
An influx of foreign investors snapping up the region's distressed real estate is a two-edged sword, said Bob Daday, founder of the 40-member Oviedo HOA Presidents Association.

Pascal Schreier
Broker Associate
941 628 6000
www.PSKM.info

Florida real estate market has hit bottom ??

2010-04-29T17:22:00.000-04:00

GAINESVILLE, Fla. – April 29, 2010 – Florida real estate markets show the first tentative signs of recovering from the most painful recession in the state's history, according to the latest University of Florida (UF) report.
"Results of our first quarter survey indicate that the real estate market in Florida has hit bottom and is in the process of stabilizing across most property types," says Timothy Becker, director of UF's Bergstrom Center for Real Estate Studies.if anything, we will get less bad.'"
On the negative side, unemployment continues to be one of the state's biggest problems, edging up to 12.3 percent in March, its highest level since the state began keeping count in the 1970s. Florida has lost more than 880,000 jobs since 2007.
Apartments continue to be the best market in the state due to high demand from people moving out of foreclosed homes. "More people are going to be living in temporary spaces than trying to buy homes just because it's gotten a lot more difficult to buy homes from a financing perspective," Becker says.
Florida's new housing market will continue to be slow, a result of more foreclosed homes becoming available. "That competition makes it very difficult for new homes to get built and purchased because buyers can often get an equal or nicer home for a much cheaper price on the foreclosure market," Becker says.
"It's always a good sign for us that the lenders think their business is going to get better," Becker says. "Maybe it means there is some light at the end of the tunnel, even though we're still not at a great spot."Pascal Schreier

Broker Associate
941 628 6000
www.PSKM.info

Tax credit doesn’t expire yet for military

2010-04-28T17:22:00.002-04:00

WASHINGTON – April 28, 2010 – Members of the military, foreign service and intelligence communities may have an additional year to buy a home and claim the homebuyer tax credit – up to $8,000 – that expires for most Americans on April 30.
To qualify for the extended tax credit deadline, service members must have served on official extended duty outside of the United States for 90 days or more at any time between Jan. 1, 2009, and April 30, 2010. If so, they have until April 30, 2011, to sign a sales contract, and until June 30, 2011, to settle and close on the home. The rule includes both the $8,000 first-time and $6,500 repeat homebuyer tax credit.
Under the law, "qualified service members" includes those serving in the uniformed services of the United States military, a member of the Foreign Service of the United States or an employee of the intelligence community.
The rule that requires buyers to repay the credit if they move out of their home within three years has also been waived for qualified service members if they must sell their home after receiving government orders for extended duty service.

Pascal Schreier
Broker Associate
941 628 6000
www.PSKM.info

new Fannie Mae loan in two years after shortsale possible

2010-04-26T17:23:00.003-04:00

WASHINGTON – April 26, 2010 – Struggling borrowers who give up their homes through a "deed in lieu of foreclosure" or a short sale will be able to obtain a new Fannie Mae loan in two years. Currently, these owners must wait at least four years.
The new policy, which takes effect in July, is designed to make foreclosure alternatives more attractive. The policy applies only to Fannie Mae's willingness to approve a mortgage, however. Homeowners' credit scores will still take a hit following a short sale or deed in lieu of foreclosure.
To qualify for a mortgage after the two year wait, Fannie Mae says borrowers must make a 20 percent down payment; but those who lost a job or have other extenuating circumstances will be able to make a 10 percent down payment.
Freddie Mac – which, with Fannie Mae, insures over half the mortgages in the U.S. – currently makes homeowners wait four years after a short sale or deed in lieu of foreclosure before it will back a new mortgage. Owners who go through a foreclosure wait five years. For both Fannie Mae and Freddie Mac, the waits can be shorter in some cases if borrowers show extenuating circumstances.

Pascal Schreier Broker Associate
941 628 6000
www.PSKM.info

Foreclosure

2010-04-25T23:01:00.000-04:00

Statewide, more than 153,000 Florida properties, roughly 16 percent of the nation's total, were hit with foreclosure filings in the first quarter, up 7 percent from the quarter before and 28.79 percent over the first quarter of 2009. For the second quarter in a row, Florida had the third-highest foreclosure rate -- one in every 57 homes -- in the nation, behind Nevada and Arizona, respectively.

Florida's numbers echoed the nationwide trend, in which foreclosures rose 7 percent from the quarter before and 16 percent from the same period last year. There were 932,234 U.S. homes hit with foreclosure filings during January, February and March, a rate of one in every 138 households. March alone brought notices to 367,056 properties -- the highest monthly total since January 2005, when RealtyTrac issued its first monthly report.

Pascal Schreier Broker Associate
941 628 6000
www.PSKM.info