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!

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!

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

Cyber Monday - Finding Florida Real Estate Online!

With so many websites offering real estate searches such as Realtor.com, Trulia & Zillow, it is most common for potential buyers to explore the market themselves to see what is available. As the online experience continues to grow in every conceivable area, there is no reason logically that real estate shopping would be any different!

To a certain extent that is true. There is an abundance of information available through public records and a little research can uncover a great deal of information from property taxes to recent sale activity to status of liens against a property.

In order to improve the process, here are a few pitfalls to avoid:

1. All of the real estate websites pull their information directly from local Multiple Listing Services (MLS). There are some status categories that these websites do not have which can easily cause confusion. For example, when a listed property goes under contract and there are contingencies to work through - such as short sale lender approval, financing or inspections, the status goes to a category called "Active with Contract". The real estate websites pull these listings as "Active". For that reason, a buyer searching can easily waste a great deal of time researching a property that is actually already under contract.

2. It is very easy to listen to national media and think you understand what the trends are in the market. BUT, word to the wise... every market has its own quirks and trends. Many times it is hard online to determine the pulse of a specific local market.

3. There is no question every buyer wants to feel he or she made a good purchase at a great price. As real estate starts its comeback, there have been many buyers waiting on the sideline trying to decide if now is the time to buy. This pent up demand results in a lot of buyers looking for the same type of property... particularly in a market specific such as the beach area of Tampa Bay. The really good properties go extremely fast and many times are under contract before they can feed through to the other websites.

If you are a serious buyer contemplating a purchase here in the Tampa Bay beach area, The PURTEE Team can offer you a way to blend the ease of online shopping with the expertise of a local realtor. Through our website: www.floridagulfproperty.com , we offer a variety of searches that are available in 'real time'. You can choose to Search All MLS ; Search Distressed Properties ; or select HOT DEALS for our current picks of excellent value properties.

Let us show you how you can become knowledgeable about the specific market you are considering, and help direct you to properties that fit your criteria before others even know about it! Email us to learn more: info@floridagulfproperty.com and you will be on your way to Living the Florida Lifestyle...

The PURTEE Team/Realty Executives/Tampa Bay Beaches Realtors Of Choice!

The PURTEE Team brings some heavyweight sizzle to the Tampa Bay real estate scene. With over 10 years of local real estate experience, their diverse professional backgrounds combine to create one powerful team! Always among the top producing agents along the Tampa Bay beaches, their clients have discovered a cohesive team whose combined strengths make an exceptional total package.

Recently, other institutions have begun to take notice as well. When Lending Institutions select one of the team members as their preferred realtor, it enables our clients to take advantage of distressed property prices right as they hit the market!

For almost a year, Lambdin Freeman has been on the Regions Bank preferred list of realtors in the area. She is an expert in preparing a property to list for Regions... and connecting that property to the right buyer from our team database.

Mark Purtee was recently chosen by Kondaur Capital Corporation of California to handle one of their distressed property listings. He was involved from the original assessment through property upgrades to enhance the property prior to listing. Mark typically suggests spending a minimum amount in order to keep the price low. It is our investor clientele that are truly able to take advantage of these types of properties as they hit the market.

Sun Trust Bank has recently recruited Kathy McBrayer as their realtor of choice in the Tampa Bay area to launch their Special Lending Program for Doctors wishing to purchase property. She brings a great deal of experience and expertise to Sun Trust.

Both Mark and Kathy have achieved their Certified Luxury Home Marketing Specialist (CLHMS) designation and Garges Purtee has added the Resort & Second Home Property Specialist (RSPS) to her list of accomplishments.

Throughout the process of rounding out the team, Garges Purtee brings over 30 years of marketing experience to the team... as evidenced by the team website, marketing materials, and marketing to the team database of over 7000 interested clients! In addition, her interior design license allows the team to offer professional staging all the way to helping a new buyer get to turn key ready.

Whether considering listing your property or making a purchase here in the Tampa Bay Beaches area, call on The PURTEE Team with Realty Executives. 10209 Gulf Blvd., Treasure Island, FL 33706. Or email us at
info@floridagulfproperty.com