Mortgage Rates Still Under The Microscope

Industry analysts are having a difficult time agreeing on the direction of mortgage rates over the short term.  According to Bankrate.com, an even number (31% each) believes rates will either go up or stay the same over the next few weeks while 38% expect a further decline.

Mortgage rates, at a new record low of 3.62% for a 30-year fixed and 2.89% for a 15-year, tend to follow along with the 10-year US Treasury note.  As demand for Treasury bonds increase (considered a safer inventment in times of economic uncertainty), the yield falls.

This trending of the mortgage rates record lows has brought some relief to the slowly recovering housing market.  According to the National Association of Realtors, pending home sales rose in May, matching the highest level in the past two years, and are well above year-ago levels. Monthly and annual gains were seen throughout the country.

We are certainly seeing a strong come back here in the Tampa Bay market!  Inventory continues at record low levels and the mortgage lender still have a tight fist around our buyers taking advantage of these low rates.  Lawrence Yun, NAR chief economist, said longer term comparisons are more relevant. “The housing market is clearly superior this year compared with the past four years. The latest increase in home contract signings marks 13 consecutive months of year-over-year gains. Actual closings for existing-home sales have been notably higher since the beginning of the year and we’re on track to see a 9 to 10 percent improvement in total sales for 2012.”

If you are interested in exploring a purchase along the pristine beaches of Tampa Bay, let The PURTEE Team help!  We bring the advantage of excellent market knowledge and experience to every transaction.
Contact us today!

Mortgage Rates - How Low Can They Go?



 This week both 15-year and 30-year mortgages fell to new record lows. It is actually the 6th week in a row for such records!  Will it have the desired effect to bring the housing industry around?  Many attribute the modest gains to the fact that rates have remained under 4% since December for 30-yr loans. Another stimulus to the economy would occur if people choose to take advantage of the rates and refinance.

According to Freddie Mac, this week the 30-yr loan dropped to a record low of 3.67% (down from 3.75% last week).  The 15-year mortgage often chosen as a refinance option also declined to 2.94% (down from 2.97% last week).  Mortgage rates tend to track the yield on the 10-yr Treasury note.  This number fell last week to a 66-yr low!  To check rates or comparison shop for a loan, be sure to use our Mortgage Finder.

This is interesting news when over 62% of the sales in Pinellas County here in Tampa Bay have been all-cash purchases.  Many of our clients who would require a mortgage are either having difficulty qualifying for a home loan or not able to afford the larger down payments required by the banks.  None of the analysts are predicting rates to fall further. Actually 23% of the experts expect rates to increase over the next week.

With the demand for long term luxury rentals continuing to increase... we can see first hand the number of potential buyers who have opted instead to rent for awhile. This should be a very interesting trail to follow...

Bidding Wars? Seriously???

Well, if you thought bidding wars were a thing of the past... think again! Homebuyers here in the Tampa Bay area are finding more competition when trying to find their dream home. The problem is that buyers are getting frustrated that this is the current scenario.


Why are things getting so competitive? There are several factors that have fueled the increase in multiple offers during the first quarter.

1) Low inventory of homes for sale. [ See Absorption Rate Blog ] In Pinellas County alone there has been a DECREASE of 44% less inventory of homes or condos for sale, leaving homebuyers with fewer options and more bidding on the same property! During March, absorption rates moved over 20%!

2) Record low mortgage interest rates remain around 4%. It appears the Feds will support this rate for at least two more years making financing very attractive when combined with a great deal.

We have 3 real life examples going on at this very moment here with The PURTEE Team:

1) We listed a 3-bedroom beach front condo in an extremely popular 7-day rental complex in Indian Shores. The unit is bank owned and was listed at a "sell quick" price of $399,900. In less than two days there were multiple offers involved. Bank called for highest and best and accepted the highest offer... leaving the other 6 buyers high and dry, along with all those who simply hadn't made time to get an offer in. The sense of urgency is bank!

2) In Clearwater Beach there are a very limited number of condo complexes that allow weekly rentals making them highly desirable. Over the past couple of years, several units in each of these complexes have sold at highly distressed and de-valued prices. However, there was NOTHING available in any of these buildings. With the pent up demand, we listed a condo in one of these buildings on Tuesday of this week. It is a corner unit with solid rental history in place, fully furnished, over $10,000 in future bookings, a repeat renter group and two live and fully operational rental websites for the unit. It was listed at $485,000... $35,000 higher than the highest recent sale. For every realtor or buyer who is calling arguing about its price, there are two others trying to see it. This one will set a new bar in price and guess what... the next buyer will wish he got it at this price!

3) We submitted a full price buyer offer for a bank owned property that was listed at $39,250. Needed quite a bit of work but a lot of potential. 3 offers came in and were submitted to bank. Bank called for highest and best yet they held the property open for additional offers. This one is still in 'wait and see' mode.
The point is... read our blog about Low-Balling Offers. If you are a buyer or investor looking for a great property, USE A REALTOR AND FOLLOW THEIR ADVICE. You still may not get the property in this situation, but you at least have a fighting chance. The next tier of listings will come as sellers begin to enter their properties at non-distressed but still value packed prices. PURTEE advice: don't miss out!

Just Listed! Beach Front 3-BR In Indian Rocks Beach, Florida

Over the past few weeks, we have been discussing the shrinking real estate inventory here along the beaches of Tampa Bay. As non-distressed properties begin to emerge, this Indian Rocks Beach gem in Driftwood Sands is one to take special note of!

These particular owners purchased this condo in 2010... recognizing that it had all the good "bones" to give them an affordable 3 bedroom condo right on the beach. When they bought it, there was no furniture... it was white on white drab with carpet that was downright scary. Once they closed on the property, the work began. From painting with colors to coordinate with all the designer furnishings and window treatments, to brand new bamboo flooring in the master suite, to california closets throughout... the condo went through a transformation that is truly amazing! Check out the virtual tour

Unlike when it sold in 2010, this condo is being sold with all the bells and whistles included! Even down to the matching dinnerware! If you are looking for beachfront living but without the hassle of repairs and furnishing... this is the one. Driftwood Sands is a well maintained complex with resort style pool and sun deck area, along with outdoor kitchen/entertaining gazebo with multiple grills... and even shuffle board. You can start living the Florida Lifestyle RIGHT NOW! More details about this property, click here.

Low Ball Offers: Effective or Counter-Productive?

From the perspective of a realtor... we saw this coming. For those who listened, they truly reaped the rewards! Here in Pinellas County (the waterfront county of Tampa Bay that includes the beaches), in 2007 just as the market started to head downward there were a total of 18,504 property listings. Buying at such an unprecedented rate was slowing down. Seller began to realize that no offer could be ignored, even if it was 25% or more off the asking price!

Today, however, at the end of March there were 6,985 listings throughout the entire county... I checked today and that number is down to 6,935. If you combine a rebounding market with a severe depletion of inventory, we very quickly move away from a buyer's market. Those buyers need to understand that a more realistic buyer gets the home. There is nothing wrong with a low ball offer and everyone wants to get the best deal possible. However, we are finding buyers who make that stand losing out on the property. Multiple offers are becoming a norm.

"In a survey last year conducted by the National Association of Realtors® (NAR), one in 10 respondents cited low-ball offers as a concern. According to real estate columnist Kenneth Harney, a NAR survey conducted in March and not yet released found that almost no one complained about low offers. When the number of listings outpaced the number of buyers, many potential homeowners submitted a shockingly low offer on the theory that they had nothing to lose. If the seller balked, most would still counter with something below their asking price. Today, however, offers close to the asking price – or even beating it – will probably come in fairly quickly from someone else if a home is priced correctly in the first place."

The misconception is easy to understand, particularly for out of state and international buyers (which Florida has plenty of). The media is filled with news about Florida's foreclosures and short sales. The point is that this news is old. Markets are local and diverse and when you have one rebounding it is easy to miscalculate the time for a low ball offer. You never want to blame someone for trying to get the best deal possible. My concern is the buyer who says "I don't pay retail" or "I am patient and can wait for the right deal" "I am paying cash!" Even the sellers who don't get offended by a low ball offer are more frequently countering at only a little off their asking price. In this Tampa Bay market of 2012, if a property is correctly priced... it may well be counter-productive to low ball. Not only that but 63% of the local sales are all cash so that once admirable playing card doesn't have quite the punch as it once did.

Keep up with the real estate market and The PURTEE Team. Email is at info@floridagulfproperty.com to receive monthly updates and local market statistics.

Looking For Florida Rental Properties?Supply Is Drying Up!

Whether it is the allure of the mild winter, spring training baseball, the simple sounds of rolling sea, the vast amounts of sea life or the magnetism of a white sandy beach... people are drawn to the Tampa Bay beaches for a wide variety of reasons!
This spring season brought a dramatic increase in tourists to the area compared to the last several years. As a result, demand is already heating up for Winter and Spring 2013! A combination of things have happened... 1) With the downturn in the market, previous seasonal rentals have opted to replace with more steady income with annual rentals. So far we have seen each of the annual rental tenants renew their leases for a 2nd or third year; 2) As short sales of seasonal rentals finally made their way through the sales process, many of the new owners are opting to not rent out their property for various reasons; 3) With the upswing in the market, some sellers have decided to go ahead and sell their property rather than rent seasonally; 4) Renters who have found a great property are re-securing the property for the following year during their current rental.

So what does that mean? Just as properties on the market actively listed in MLS are seeing a dramatic decline in inventory... the same is happening in the seasonal rental market. Buyers active in the Tampa Bay real estate market who are savvy to this deficit are picking up rental properties, sprucing them up and raising rates accordingly. Check out our Vacation Rental Property Investment Newsletter. Contact The PURTEE Team to discuss rental property options which include both vacation rentals and multifamily housing.

Absorption Rate Continues Momentum!

Click on Chart For Larger View
As realtors, we have seen first hand that March brought about a buying frenzy and a continuation of the decline in inventory. The market statistics that were just released by the Pinellas Realtor Organization gave full credence to what we inherently knew. Take a look at the chart on the left... the Absorption Rate is determined by dividing the number of units sold during the month by the total number of listings in the MLS.

March saw a HUGE jump in the numbers and basically it is saying that 1 in 5 listings was sold during the month! Another important factor is that out of those sales, 69% were non-distressed properties! Distressed home sales are down 28% from a year ago while bank owned properties have fallen 57%. To take a closer look at the 2007-2012 statistics and comparison from listings to sales, click on either Single Family Homes or Condos to see for yourself.

Throughout 2011 The Purtee Team has been keeping their clients informed about the market which is reflected in their sales performance. Many of their clients got amazing deals by knowing when to enter the market and how to best get the property at the greatest value. On the other side, sellers that use The PURTEE Team have found that over 40% of those sales are with buyers brought to the closing table by The PURTEE Team... resulting in lower commission fees. Whether you are in a position to buy or sell in the Tampa Bay, Florida area, contact a member of this team first! Email us at info@floridagulfproperty.com.

The PURTEE Team Awarded Top Producer for 2011

At the awards ceremony last week, The Purtee Team came away with three major awards for volume of business done during calendar year 2011. Their broker, Realty Executives Homes in Florida applauded the team for its $10 million+ volume here in Tampa Bay in such a tough market.

When asked about their 2011 performance, both Mark and Garges attribute a great part of the success to their diligence regarding their database. As a matter of practice, monthly market updates are emailed to their list of over 3,000. Each update is filled with market statistics, analysis, HOT DEALS and rental property updates. With that help and an in-debth proactive website, their clients can search the MLS just like a realtor, save searches and properties they find and receive updated properties that fit their criteria right as they come on the market! We then work together to negotiate the best deals.

As a team, we bring a very strong knowledge of the market, negotiation skills, construction, finance, rental property, home decor... and so much more! Visit our website at www.floridagulfproperty.com or join our database to receive those market updates by emailing info@floridagulfproperty.com. We look forward to working with you!

Vacation Home Sales Rise In 2011 & Continue In 2012!

Each real estate market area is unique is how it performs and how it adjusts to this slow turn in the economy... they do NOT all operate the same. The PURTEE Team has been talking in our BLOG about the beaches of Tampa Bay and how the recovery has swiftly turned the pendulum into a HOT sales market!

According to the National Association of Realtors, "sales of investment and vacation homes jumped in 2011, with the combined market share rising to the highest level since 2005. NAR’s 2012 Investment and Vacation Home Buyers Survey, covering existing- and new-home transactions in 2011, shows investment-home sales surged 64.5 percent to 1.23 million last year from 749,000 in 2010. Vacation-home sales rose 7.0 percent to 502,000 in 2011 from 469,000 in 2010."

Vacation-home sales accounted for 11 percent of all transactions last year, up from 10 percent in 2010, while the portion of investment sales jumped to 27 percent in 2011 from 17 percent in 2010. NAR Chief Economist Lawrence Yun said investors with cash took advantage of market conditions in 2011. “During the past year investors have been swooping into the market to take advantage of bargain home prices,” he said. “Rising rental income easily beat cash sitting in banks as an added inducement. In addition, 41 percent of investment buyers purchased more than one property.”

Here on the beaches, we have see inventory dwindle and distressed properties easily absorbed... often before they even hit the market! Nationwide, all-cash purchases have become fairly common in the investment- and vacation-home market during recent years: 49 percent of investment buyers paid cash in 2011, as did 42 percent of vacation-home buyers. Half of all investment home purchases in 2011 were distressed homes, as were 39 percent of vacation homes. Here in Tampa Bay, the all-cash percentage currently exceeds 63%!

Some interesting statistics from NAR’s 2012 Investment and Vacation Home Buyers Survey, conducted in March 2012:

• Eight out of 10 second-home buyers said it was a good time to buy. Nearly half of investment buyers said they were likely to purchase another property within two years, as did one-third of vacation-home buyers.


• The typical vacation-home buyer was 50 years old, had a median household income of $88,600 and purchased a property that was a median distance of 305 miles from the primary residence; 35 percent of vacation homes were within 100 miles and 37 percent were more than 500 miles. Buyers plan to own their recreational property for a median of 10 years.


• Eighty-two percent of vacation-home buyers said the primary reason for buying was to use the property themselves for vacations, or as a family retreat. Thirty percent plan to use the property as a primary residence in the future, and only 22 percent plan to rent to others.

In our local area, as inventory for sales has dwindled so has inventory for rentals. Even snowbirds traveling to the Tampa Bay are are finding their property to secure for next year harder and harder to find. This is a primary reason some of these renters are turning into buyers in order to secure their own place that they can count on year after year.

At this very moment, The PURTEE Team has 6 bank owned distressed properties in various stages with the bank prior to their being listed for public sale! Want to be on the inside track? Email us today at info@floridagulfproperty.com

Bank Owned REO's In High Demand!

As foreclosures move through the process and the banks finally take possession, the bank listing is referred to as REO or "Real Estate Owned". The bank will try to sell the property on the open market after removing liens. However, these lenders are not in the business of owning homes and, in some cases, the house can be bought at a discount to its market value... making it very attractive to real estate investors.

The REO activity is really heating up along the beaches of Tampa Bay, Florida! There are only 13 active currently in all of the beach communities from Clearwater Beach in the north to St. Pete Beach in the south. The average price is $183,546.

25 are currently under contract pending closing with an average list price of $271,453 and average days on the market of 53 (ranging from 3 to 81). To date in 2012, 28 have sold at an average price of $246,211 and an average of 98.53% of asking price! The average days on the market for the sold properties is 57 days from list to close.

So... how is a buyer to get on track with finding these properties BEFORE the competition gets to it? Knowing the path they are coming from and having a savvy realtor on the lookout for you is the best route. Currently, The PURTEE Team has 5 such REO properties about to hit the market. They are in various stages of the process with the bank... some without prices yet. If you are on the inside track, you may have an opportunity to pick up one of these properties before the public ever finds out about it! Do NOT be left out of this important part of the current real estate market where some of the most outstanding opportunities exist today. Email us at info@floridagulfproperty.com to find out if one of these upcoming REO's might be right for you!

Housing Affordability At Record High

The National Association of Realtors (NAR) announced that "housing affordability conditions have reached the highest level since record keeping began in 1970."

The Housing Affordability Index rose to a record high 206.1 in January. This index is influenced primarily by the relationship between median home price, median family income and average mortgage interest rate. The higher the index, the greater the household purchasing power. If an index of 100 is considered the "breakeven where a median-income household has exactly enough income to qualify for the purchase of a median-priced existing single-family home, assuming a 20 percent downpayment and 25 percent of gross income devoted to mortgage principal and interest payments."

NAR President, Moe Veissi, says this latest data underscores buyer opportunities in today’s market.“This is the first time the housing affordability index has broken the two hundred mark, meaning the typical family has roughly double the income needed to purchase a median-priced home!”

So, what we need to look at regarding buyers being able to get these homes is financing. The rates are at historic lows but the regulations are so tight that many potential homeowners are simply not able to get the financing they need to make the purchase. Here in Florida a purchase of a condo anywhere in the state requires a 25% deposit down. Underwriters are scrutinizing all aspects of the purchase.

Veissi says. “If access to credit improves, we could see a much more meaningful increase in home sales and broader stabilization in home prices, with modest gains in areas with stronger job growth.” Currently here in Tampa Bay, cash sales are representing over 60% of transactions. Until financing returns to being a viable option, many of these opportunities will go to the cash buyers. To explore your options, The PURTEE Team is here to help. Specializing in Tampa Bay beach real estate, we understand the market, its trends and where the opportunities are. Whether considering a purchase or listing your property, contact us today!

Consumer Confidence Rising

On February 28, the Conference Board’s Consumer Confidence Index, which had decreased in January, announced an increase of 9.3 points in February. The Index now stands at 70.8 (1985=100), up from 61.5 in January. The Present Situation Index increased to 45.0 from 38.8. The Expectations Index rose to 88.0 from 76.7 in January.

According to Gallup's Economic Confidence Rating, confidence has been improving steadily over the past five months and is continuing that monthly trend during February. The stable nature of confidence in recent weeks suggests that surging gas prices have yet to dramatically affect Americans' perceptions of the national economy.

The proportion of consumers expecting business conditions to improve over the next six months increased to 18.7 percent from 16.7 percent, while those anticipating business conditions will worsen decreased to 11.8 percent from 14.6 percent. The PURTEE Team, with Realty Executives, keeps you informed about the emerging real estate market along the beaches of Tampa Bay and how to best navigate the buying or selling process. Contact Us Today: info@floridagulfproperty.com

Inventory At Record Lows - Sign Up For Monthly Updates To Stay Informed!

The PURTEE Team keeps their clients informed about the Tampa Bay beach real estate market with informative monthly updates via their email list. These updates include the current statistics on Absorption (inventory turnover), Condo and Single Family Home Active Listings Inventory & Sales.

In order to navigate this recovering market, buyers and sellers need to be informed. Real estate is not the same from county to county across the country... it is very much localized. The worst thing we are seeing is buyers who think they are more knowledgeable about the market and where it is headed. They often do not listen nor do they look at the facts or trends... these are the buyers who will miss the opportunities that exist here on the water in Florida TODAY!

Take a look at the chart above in regards to inventory being absorbed. 2008 was even worse, but look at the trend since February 2011! Look again at the start we had in March to June 2010. What happened there??? The Gulf oil spill happened which halted that momentum. However, we have been in double digit absorption for a year. Inventory is at record low levels... and the trend of moving to Florida has picked up again, primarily due to its affordability.

If you are interested in learning more about the Tampa Bay beach real estate market, join our monthly update email list. It is easy. Just us our CONTACT US ez form to send us your email and start getting information this month! Just tell us you want to be on the email list in the notes section. You, too, can own your piece of paradise and enjoy the Florida lifestyle that we all love so much!

Tampa Bay Beaches Continues Decline In Active Real Estate Listings

Click Here To Enlarge Chart
We continue to talk about inventory here along the beaches of Tampa Bay. January 2012 has continued the trend of dwindling real estate that is actively for sale. The chart at left represents the entire Pinellas County inventory! Active inventory is down 31% from last January with 3,672 fewer listings. Foreclosures alone are down 56% from last January!

According to the Pinellas Board of Realtors, there are fewer than 2 houses for sale for each buyer actively looking in the market. On the other hand, pending contracts were up 22% in January from this time last year. We will be talking about other market statistics in the days to come, but this trend is here in realty... right now. The PURTEE Team monitors the market and its evolving trends. You can sign up to get their monthly updates by sending your email address to info@floridagulfproperty.com

Retirement On The Horizon? Florida-Bound!

78 million 'baby boomers' begin their approach to retirement this year when those born in 1946/47 turn 65 and start qualifying for Social Security benefits. In 2003 and 2004, over 1000 people were moving to Florida a day! Builders were struggling to keep up with the demand. However, that process slowed dramatically as a result of increased property costs, insurance and the economic downturn.

As this determined generation gets back on its feet and once again looks toward retirement, Florida is returns as a top destination with its current depressed prices, no state income tax, pleasant climate, recreational and cultural activities and excellent senior care.

Tampa Bay offers the three dynamic cities of Tampa, St Petersburg and Clearwater... with the eclectic 23 miles of sandy white beaches and diverse beach communities. According to a recent survey, 58% of relocating baby boomers plan to purchase a home or condo in their destination city. So where are these seniors going to go??? Home building virtually stopped in 2007. Inventory has dried up back to 2005 levels. Very few building permits are even being pulled because building new can't be done at the prices we are at right now. So with no new building on the horizon, what will this mean for the retiring senior planning to come to this area in 4-5 years? It means start looking NOW while there are still some of these incredible value deals! Who can you trust to help you through this process? The PURTEE Team specializes is real estate along the beaches of Tampa Bay. With a diverse background or business, financial planning, negotiation, construction and design, Mark, Garges, Lambdin and Kathy are ready to help. Find out what they can do for you to get you on your way to living the "Florida Lifestyle". Read the article...

Tampa Bay Avoiding General Housing Gloom

When the Federal Reserve puts out their Beige Book report (issued about every 6 weeks) on current market sales trends, it is worth taking note. Here in Florida, we are part of the Atlanta District which spans the southeast. While other areas in the region experienced "soft" sales, the Sunshine State actually rebounded! The reason according to the Beige Report? INTERNATIONAL & CASH BUYERS!

Click On Chart At Right To Enlarge
According to the Miami Herald, only Nevada and California vied with Florida for being hardest hit by the housing crash, so it’s natural for Florida to enjoy a stronger turnaround than places where prices didn’t fall as far.

Florida’s relative optimism on the sales front has been a recurring theme in the Beige reports this year. Here in Pinellas County, we have watched double digit Absorption Rates since the 1st quarter of 2011 gobble up our inventory and begin to push prices upward. For the latest Year End 2011 Market Statistics, view Single Family Home or Condo.

The PURTEE Team, with Realty Executives, can keep you ahead of the market trends. Just give us a try and see why we closed over $10.2M in sales in 2011 in a still depressed market!

The Art Of Flipping Property - A Thing Of The Past?

From 2004 to late 2006, appreciation of property here in the Tampa Bay area was spiraling upward at an unprecedented rate! The hunger for "flipping" properties drew buyers by the thousands, often resulting in long lines or lotteries just for the chance of purchasing. Combine that appetite with "anyone can get" financing and the bubble was well on its way... Pre-construction was a key choice for many. With 20% down, buyers could wait through the building process and find their property substantially increased in value by the time construction was complete and they closed on the property.

Many of those buyers were looking for a quick return on their investment, not looking to carry a property long term. Those are many of the investors that got caught when the market turned, resulting in short sales, damaged credit or foreclosures.

During 2011, we have seen prices plummet to a fraction of their previous value. As inventory decreased throughout the year (currently at a 6 year low), sales have increased bringing the absorption rate into double digits month after month. Although there continues to be great values in the market place, there has been a shift in demand for those properties that stand out and we are seeing some similar patterns to the feeding frenzy of 2004-2006.

The new "flipping" involves buying properties at highly distressed levels, fixing them up with either a slight face lift or a major remodel and putting it back on the market. There is a LOT of that practice going on and a LOT of $$ being generated! In Pinellas County, out of 7,931 active listings only 1,927 (just over 24%) are distressed. As the market gobbles up these distressed listings, the only direction for the appetite to go is to the lowest of the non-distressed properties.

On January 2, the Federal Housing Administration extended a temporary waiver of FHA’s anti-flipping regulations through 2012... primarily in order to allow the re-sale of foreclosures. “This extension is intended to accelerate the resale of foreclosed properties in neighborhoods struggling to overcome the possible effects of abandonment and blight,” said Commissioner Carol A. Galante. “FHA remains a critical source of mortgage financing and stability and we must make every effort to promote recovery in every responsible way we can.”

While some buyers continue to sit on the sidelines wondering if the market has hit the bottom, others are taking full advantage. Schedule a meeting with The PURTEE Team and find out more... Email us at info@floridagulfproperty.com