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!