Gasparilla Is Here - The Annual Pirate Invasion

Yes, the Tampa tradition is upon us! Since the first pirate invasion in 1904, Gasparilla Pirate Fest means boats, pirates, parades, merriment and more! It means January is here and the city's notorious event is about to unfold.

It is an amazing thing to watch downtown Tampa become immersed into this tradition! All the events begin Saturday, January 30th around 10am. From 10-1, there will be a Gasparilla Invasion Brunch at the Tampa Convention Center. Reserved Tickets Are Required. At the same time, the various pirate "krewes" surrounding the infamous Jose Gasparilla will set sail from the south end of Hillsborough Bay, between Davis Island and Harbour Island and arrive at the Convention Center at about 1pm ready to begin the invasion! Amidst cannon fire and traditional fury, the major of Tampa will turn over the key to the city to the pirates!

The Parade of the Pirates, celebrating their victory, will travel along Bayshore Boulevard from 2-5:30pm. There are reserved bleacher seats available which make a great place to see the parade.

And, of course, one age-old tradition is the tossing of the beads and trinkets along the way. Watch as the crowd clamors to get the attention of the bead-throwing pirates! You won't want to miss it!

It's Official - High Speed Rail A Go!

Yesterday, in a Town Hall meeting at the University of Tampa, President Obama and Vice President Biden made a rare joint appearance to announce that that Florida would receive $1.25 billion in economic stimulus money to help build a High-Speed Rail line from Tampa to Orlando.

"We're going to put more Americans to work building our infrastructure and building our infrastructure for the future,'' Obama said. "There's no reason why other countries can build high-speed rail lines and we can't, and that's what's going to happen right here in Tampa.'' At a time of record high unemployment in the area, this is the result of a huge bipartisan effort

The $1.25 billion represents just under half of the request for #2.6 billion. A total of $8 billion will be handed out to Florida and 12 other places for fast trains, but no single grant will be for more than half of the original request. Still, U.S. Sen. Bill Nelson, D-Fla., predicted, "This will be one of the largest boosts to the state's economy since Disney, since the interstate highway system."

Design work and construction could start late this year or early in 2011. Operations could begin in early 2015. Disney has promised to support the train and has offered up to 50 acres of free land for a station. As proposed, the train would start at Orlando International Airport and run along the BeachLine Expressway and Interstate 4 until stopping in Tampa, a little past Ybor City. It would have stops at the Orange County Convention Center, Walt Disney World (near Celebration) and Lakeland.

Obama In Tampa Today To Announce High Speed Rail Grants!

Last September, The PURTEE Team wrote in our Blog about the impact of Florida getting part of the $8 billion in grants for High Speed Rail infrastructure. In last night's State Of The Union address, President Obama announced his plans to travel to Tampa today to unveil grants to 31 states under the recovery act for state governments to begin developing new high-speed rail corridors or upgrade lines for future high-speed rail or intercity rail service. Thursday’s awards will include projects on 13 major corridors, as well as smaller awards to improve parts of existing lines.

In Obama's words. "Tomorrow, I'll visit Tampa, Florida, where workers will break ground on a new high-speed railroad." Supporters of Florida's proposed high-speed rail system are optimistic that the reason is to announce funding for a Tampa-Orlando route. This is BIG! The 19th century was the railroad age. The 20th century was the highway age. High speed rail is planned as the transportation system of the 21st century!

Click here for HSR Economic Impact Studies

Obama Administration Plans Exit From Mortgage Markets

Mortgage rates have remained low over the past year as the Obama Administration has used federal support to drive down rates in order to revive home buying. Keeping interest rates at historic lows cost an investment of over $1 trillion and was considered a key ingredient to stabilizing the housing industry and re-booting the economy.

The announcement has been made that the wind-down of government support for mortgage rates has begun and will be completed within two months. "We did what we thought was necessary to stabilize the market, but we don't think the government should continue special efforts forever," said Michael S. Barr, an assistant secretary at the Treasury Department. "As you bring stability, private participants come back in. We do expect this now that the market has stabilized. I'm not going to say there will be no effect on rates, but we do think you are seeing market signs and market signals that there should be an orderly transition."

This will be the test of whether the Obama administration and the Federal Reserve have succeeded in jump-starting the housing market and ensuring it can hold its own. What will be interesting is to see the impact it will have on interest rates in both the immediate and long term future. The mortgage industry depends on the private sector to fund it via mortgage-related securities. As the economy softened, the Fed and Treasury became the only major buyer of these securities. At the same time, the federal government stood behind mortgage-finance companies Fannie Mae and Freddie Mac by taking them over and pledging to cover their losses. Has the mortgage industry become too dependent on government support? In our dialogs with both buyers and sellers, financing is a key ingredient to any transaction. We are seeing more requests for All Cash, Seller Financing or Lease/Purchase to generate more creative ways to navigate the financing issue.

As the economy began to recover, the Treasury ended its purchase of these securities in December and the Fed is winding down it purchases to end March 31st. We will be watching closely to see the impact this will have in our market.

Florida Bucks The Trend In December Home Sales!

Watching Fox News yesterday, a very depressing story came on the air about "home sales taking a dramatic plunge in December." It caught my attention because I knew Florida's existing home sales had grown in December.

As a matter of fact, home sales in Florida grew "33 percent last month with a total of 14,630 homes sold statewide compared to 11,013 homes sold in December 2008, according to Florida Realtors. Statewide existing home sales last month increased 4.3 percent over statewide sales activity in November.

The National Association of Realtors says sales nation-wide dropped 16.7 percent to a total of 5.45 million in December, down from 6.54 million in November. Experts had predicted a decrease of 7-10 percent. This news came out at the same time as the Obama administration announced plans to withdraw mortgage support that kept interest rates low! Tomorrow's blog will concentrate on the impact of that wind down of federal lender support.

We have said all along that real estate and the recovery would be localized. Here in Florida, and specifically the Tampa Bay area, we are poised to bounce back much faster than other parts of the country. Forbes Magazine predicted that over a year ago. December marked Florida's 16th month of sales activity increases over prior year! As the snow birds come here throughout the season, the appeal to some of these great prices is a huge draw.

Tampa Bay Realtors sold 5,000 more homes in 2009 than they did in 2008, a healing trend that helped real estate prices find some footing last year. Single-family home sales totaled 28,617 in 2009, up 21 percent from the 23,615 homes that changed hands in 2008, Florida Realtors said.
Tampa Bay's median home price ended the year at $140,000, pretty much the level at which it was in the spring of 2009, defying the depressing effects of cheap foreclosure homes.

The PURTEE Team Is Expanding!

In this economy, it is exciting to see a business working to expand rather than cut back its services! Over the last 6 months, we have seen a surge in the rental business... both Vacation or Seasonal Rentals and Long Term "Corporate" Rentals. Sellers who have not been able to sell their properties or simply want to wait out the market until prices rebound are putting their properties on the market for rent. Potential Buyers who are finding the current financing market difficult and economy uncertain are choosing to rent for a while before making a purchase.

There are also an abundance of people taking advantage of these Vacation Rentals here along the Tampa Bay Beaches to avoid the frigid temperatures back home, or simply enjoy the area year round with its gorgeous beaches and dazzling sunsets!

For that reason, The PURTEE Team has entered into an affiliated business with Florida-Beach Rentals to enhance the rental end of their business and offer onsite rental management from their N Redington location at 16725 Gulf Blvd... staffed 7 days a week! Kelly Ross and Claudia Perez have joined the team to handle Vacation Rentals. As part of this new service, we have added a BOOK ONLINE feature to our website for potential renters to check availability and book their vacation right from the secure website! In addition, we offer a Travel resource to provide competitive pricing on flights and rental cars for your visit. Very exciting addition... you can email either of them for additional information to kelly@floridagulfproperty.com or claudia@floridagulfproperty.com

Long term rentals will continue to be handled by Garges and Jill. They can be reached through the office at 727-490-3556.

Go Fly A Kite - Treasure Island Style!

Treasure Island is unique community along the 23-mile stretch of white sandy beachs that border Tampa Bay. Clearwater Beach has its fancy hotels and Pier 60 activities; St Pete Beach is lined with large hotels... many that have been there for decades. But quirky Treasure Island with its Buccaneer welcome definitely has its own personality!

Mark and I moved to Treasure Island in 2004. We were involved in a small, custom townhome development right on the beach that really seemed to fit our lifestyle. However, we were a bit 'put off' by the little shacks, bright blue surf shop, and low rise motels. It wasn't until living here that we discovered as own slice of paradise!

Without the huge crowds that fill the other beaches, this gorgeous stretch of beach sometimes seems to belong just to us. There are beach front restaurants like Caddy's and Sloppy Joe's which are a short walk away for a casual meal on the beach... often with live entertainment.

The beach is particularly wide in front of the Bilmar and it makes a great venue for Concerts and Fireworks. In November, there was an amazing Sand Sculpting contest that brought out artisans from all over the country. This past week, the focus has been on Kite Flying and at one point I counted over 200 kites in the air!!! On Sunday evenings, like with a gravitational pull, drummers and musicians form a circle on the beach and begin a jam session. So much fun to see, hear and experience! I wouldn't trade...

December '09 Market Statistics Posted

The December market statistics for Pinellas County are in and are now available on our website: December 2009 Market Statistics. As we review the numbers, some very important trends continue.

The year in review focuses on continuing increases of sales over prior year and decrease of inventory. Out of the December sales, 44% were cash transactions, with 32% Conventional and 18% FHA.

Single Family Homes - YTD Sales (22.2% Increase)
2008 - 6054
2009 - 7400

Single Family Homes - End Of Year Listings Inventory (25.2% Decrease)
2008 - 7930
2009 - 5828

Condos - YTD Sales (21.4% Increase)
2008 - 3444
2009 - 4181

Condos - End Of Year Listings Inventory (21.4% Decrease)
2008 - 6593
2009 - 5180

Prices for Single Family Homes have leveled off during the year while condo prices have taken another 10% off the selling prices. However, condo sales have taken a dramatic turn upward during the month of December (from 280 sold in 2008 to 413 sold in 2009). Foreclosures and short sales are still driving the pricing trend, especially on condos. But one thing is for sure... inventory being reduced combined with increasing sales signifies we are on the way toward recovery. There are now condo buildings that have NO inventory on the market! That is a huge change and someone wanting in that building will have to pay the price. Sharing this information will help others feel more confident that the time to make a wise purchase is now. Also, be sure to take a look at the Blog on Mortgage Qualification.

Focus on Tarpon Springs

What started off as a small community of Greek divers has today become an area with a distinct Hellenic flavor within America. Just a mere 30 minutes north of Clearwater, Tarpon Springs with its new houses and stately mansions has a lot to offer when it comes to Greek heritage. Festivities in this region are centered on the Spring Bayou and are kick started by the annual Epiphany celebrations in January which draw Greek Americans from across the country. As a matter of fact, the traditional diving for the cross took place in 40 degree weather as hearty young men competed in the dive for the sacred cross. The population here actually triples in size over the Epiphany weekend.

In 1887, as sponges were discovered growing in the waters of the gulf in that area, Tarpon Springs found its niche in the sponge business. By 1890, the sponge industry was firmly established in Tarpon Springs. The Cheney Sponge Company sold almost a million dollars worth of sponges that year!

The early sponge divers created a need at the docks for eating places for the boat crews. Then as news of the industry grew, people began coming to the docks to see the sponges. Shops opened so people could buy the sponges and other souvenirs. Today Greek Cuisine proliferates in the downtown area of Tarpon Springs with at least 25 Greek restaurants and cafes offering a variety of snacks and meals. Greek influence is so strong that you can feel it all along the Dodecanese Boulevard, which is dotted with Greek bakeries, sponge and souvenir stores and the Spongeorama Exhibit Center, displaying different aspects of the town related to sponging, religion, and culture at Tarpon Springs.

When looking for a unique excursion near Tampa Bay, head to the sponge docks for authentic sponges of every sort, loofahs and great Greek food. A stop at Hellas Bakery is a MUST! I can be writing for a long, long time with how much there is to do and see around Tampa Bay!!!

Fannie Mae's "Special Approval" Designation

Buyers of Florida condominiums have been finding it more restrictive to get lenders to finance their purchase... even if they are more than qualified financially! That is why it was such good news that Fannie Mae announced last Thursday that it would comprehensively review hundreds of condominium projects in Florida. Through a new “Special Approval” designation, Fannie hopes to streamline mortgage approvals for projects that don’t currently fit Fannie Mae guidelines even though they present limited risk to the company.

Florida Realtors strongly urged Fannie Mae to revisit its lending program in the condo market, and as a result it consulted a number of Florida Realtors as it developed the program, including Florida Realtors® Vice President Summer Greene. “This is good news for Florida and a step in the right direction for the state’s condominium market,” Greene says. “Hopefully, with the special approval designation process, we can begin to get our condo inventories reduced and absorbed as more condo buyers receive a green light from lenders for loans. This will help boost confidence in the market.” *

Fannie Mae and its cousin, Freddie Mac, back more than half of all U.S. mortgages. As the Fannie Mae initiative develops and gains momentum, Greene hopes it provides incentive for Freddie Mac to follow suit.While Fannie Mae currently has boilerplate guidelines for approving condo loans, it will sometimes grant a mortgage to a non-conforming condo if requested by a lender. The Special Approval designation takes that a step further by approving exceptions before a lender request has been submitted.

A dedicated team of six Fannie Mae professionals based in Florida will now examine statewide condominium projects that may not currently meet Fannie Mae’s standard eligibility criteria and assessing specific criteria more closely. The team will look at a condo project’s occupancy level, association dues, financial stability and property condition. If a project is deemed sufficiently stable following a closer examination, it will be granted the Special Approval designation, freeing lenders to originate and deliver mortgage loans secured by Fannie Mae. Projects deemed eligible will be listed on www.eFannieMae.com, and qualified borrowers will be eligible for financing.

This is big news...

*According to the National Association Of Realtors

Mortgage Market Weekly Review

Mortgage bond prices rose last week pushing mortgage interest rates lower. The bond market was buoyed by the announcement that US Treasury increased the credit lines of Fannie Mae and Freddie Mac a total of $400 billion. This was a signal to investors that those entities are “too big to fail” as viewed by the Treasury. The mortgage industry saw some weakness Thursday afternoon as retailers reported stronger than expected holiday sales. (Keep in mind that a recovering economy will drive the mortgage rates UP.) The employment report Friday was generally bond friendly. For the week interest rates fell by about 1/4 of a discount point which brought 30-year home mortgages down to 5.09% for the first decline in a month.

The inflation data that comes out this Friday will be the most important economic data this week. Signs of stronger than expected inflation would not be good for mortgage interest rates. (see above) The Treasury auctions will also dominate trading. Stronger than normal foreign demand could bode well for the overall level of interest rates. Weaker than expected bids would likely result in interest rate increases.

The good news here in Florida is that Fannie Mae announced last Thursday that it would comprehensively review hundreds of condominium projects in Florida. Through a new “Special Approval” designation, Fannie hopes to streamline mortgage approvals for projects that don’t currently fit Fannie Mae guidelines even though they present limited risk to the company.

More on the "Special Approval" designation tomorrow...

REO - Buying Bank Owned Real Estate

What exactly is an REO? According to Wikipedia, "Real estate owned or REO is a class of property owned by a lender, typically a bank, after an unsuccessful sale at a foreclosure auction. A bank will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount. If there are no bidders that are interested, then the bank will legally repossess the property. As soon as the bank repossess the property, it is listed on their books as REO – Real Estate Owned – and is categorized as an asset (non-performing)."

As soon as a property goes into a distressed status (the borrower/home owner misses mortgage payments) the bank will want to determine the amount of equity that the property has. A popular method to determine the equity is to obtain a Broker Price Opinion (BPO) or order an appraisal. Based on the amount of equity that is determined from the BPO, the bank will decide to try for a short sale or to allow it to go through the foreclosure process. If the bank is able to sell the property through a short sale or at a foreclosure auction, then the property will not become a REO property.

Just because a property is bank owned doesn't mean the property comes on a silver platter! Everybody has their definition and I’m sure we all know stories or heard a story about somebody who got this phenomenal deal but at the end of the day the banker is trying to realistically get rid of their property in a reasonable amount of time. They have an obligation to maximize the return for the corporation. It’s the corporate assets you’re playing with. To think that you can make a "lowball" offer and the bank will take it is definitely not a given. In fact, many either won’t or can’t consider offers below a certain level that may have been established by an appraisal. We’ve been seeing banks actually ask for a second appraisal. So, you really need to get to as few conditions and as few contingencies as possible to make yours the best piece. Obviously at the end of the day, price is always trump. It’s about buying right but not necessarily at the lowest price.

An investor looking for a great deal needs to be in a position to be able to perform on it, and that may be to get yourself into a liquid position, to have the cash and be able to perform and be a credible buyer. That makes for an interesting playing field!

New Years Resolutions - What About Real Estate?

As we start not only a new year but also a new decade, this certainly seems like the ultimate time for New Years Resolutions! With an economically challenging year just past and an unprecedented arctic blast this first week of the new year... it certainly gives us a lot to think about. Somehow losing weight or getting is shape pales in comparison to 'getting a job' or 'finding a home'.

Thankfully, unemployment finally appears to have stabilized and companies are hiring again. The forecast is for mortgage rates to begin to inch higher this year. With home prices a definite bargain and mortgage rates still low, the time for procrastinating on buying that may be over. As we mentioned in an earlier blog about the Move.com survey, nearly 18% of Americans say they are resolved to become a first time home buyer in 2010. The aging population is finding these harsh winters more and more difficult to handle and are searching for an alternative lifestyle. With prices rolled back to 2003, many are getting serious about resolving to find their second "winter" home in 2010.

Another 16% are seriously considering real estate as an investment purchase as their top resolution considering the current investment conditions! So how to get started? These days almost everyone uses the Internet during the home search process. 90% used the Internet at some point and 76% said they did so frequently. Hard to believe that just seven years ago only 41% of buyers indicated any Internet use at all! In a study of what the most effective way for a Buyer to match up with the right Home, it was the combination of the Internet and the right real estate agent. The various search engines for homes can often fall short on their own with outdated information or inability to search for more pertinent factors such as deed restrictions, pet weight, tax information. Using an agent with knowledge of the area and access to the realtor-only MLS search engine makes a great deal of sense in making the best of both worlds.

That is why as The Purtee Team we specialize in the area along the beaches of Tampa Bay. In addition, we have a powerful search engine available right from our website to Search All MLS. You can do a search, find MLS #'s you like and email it directly to us. We then do the further homework for you to find out more specifics. The other extremely useful tool is the Home Buyer Program where you can get automatically emailed when a home that meets your criteria comes on the market or has a reduction in price. In that way, you are the first to be informed! Be sure to check out our website and all its features at www.floridagulfproperty.com

Everyone Settled Into 2010?

Well, we have had the weekend to adjust to the start of not only a new year, but also a new decade! It seems much of the attention has been focused on bowl games and the unseasonable cold weather plaguing the country. To be honest, temperatures in in Tampa Bay are not reaching past the mid-50's!

Fortunately, cold snaps in our area do not linger long and milder temps are just on the horizon. The big news here is all the arrivals of our northern friends! How do we recognize them? That is easy... first, the license plates from all the different states, Canada and Nova Scotia on SUV's loaded with supplies to land for the winter. Secondly, the groups walking around in shorts and t-shirts in 50 degree weather... or even swimming in the 65 degree Gulf of Mexico!!! Burrr...

Which brings about an interesting fact that the Gulf can swing 20 degrees in temperature! In the heat of the summer, it can be like bath water in the mid-80's. Then, cool off to the current mid-60's range in December and January! Definitely nice to have a heated pool at this time. No worries, though. By the time Spring Break comes, temperatures will have moderated enough for swimmers to enjoy the gulf.

There are still openings at many of our rental properties to come and enjoy a break from the harsh winter. And shortly, we will actually be adding a 5th member to The PURTEE Team to focus full time on rental property!