Borrowers Wait For Lower Mortgage Rates and Lose

According to Janna Herron, Associated Press real estate writer, "Homeowners who delayed locking in super-low mortgage rates – think close to 4 percent for a 30-year fixed – may have waited too long." Rates are beginning to creep back up. The 30-year rate rose to 4.61 percent from 4.46 percent last week. That is well above the 4.17 percent rate hit a month ago – the lowest level on records dating back to 1971.

“People thought for a while that rates would fall below 4 percent, and they hedged on that,” said New York mortgage broker and banker Andrew Toolin, who had just been on the phone with a client who is paying 5.875 percent on his mortgage. A month ago, the client passed on what now looks like a once-in-a-lifetime opportunity: the chance to refinance at 4.125 percent. That would have put $321 more in his pocket each month. He held out, thinking he could do even better. Now the rate is up to 4.75 percent. He could still shave money off his monthly mortgage payment, but not nearly as much – about $229.“He’s wondering if he should wait for rates to go back down,” Toolin said. “He’s talking to his wife tonight about what to do.”

What is making the rates start to climb? If you look back in prior PURTEE Team Blogs, you will see that interest rates are tied directly to investor buying and selling of Treasury Bonds. With the upcoming tax deal President Barack Obama and Republicans forged that could boost the economy next year if passed, we would see a freeze on tax increases for 2011 and other stimulus tax cuts take effect. A stronger economy would make the stock market a more attractive place to invest money. That’s a big reason why many investors are selling their safer Treasury bonds. As investors sell off these Treasury bonds, rates have to increase for them to compete in the investor market. These bonds help finance the mortgages. As more bonds come on the market, prices become depressed and yields have to increase. "Prices and yields move in opposite directions."

We talk about the pendulum... which we actually thought would start to swing earlier in the year. Everyone wants to buy at the lowest rate and for the lowest price. We hear it every day. The issue is the uncertainty that lingers as to where the bottom truly is. What we do know is that buy the time the general media says it is time to buy, the real opportunities have been left behind. For additional mortgage information, check out our website... Click Here.

Back On Market! Contract Fell Through

In this market, things happen every day that simply make you shake your head in amazement. A client of ours upside down in a property in Clearwater Beach has been working for a year to do a loan modification with his lender... to no avail. Working with an attorney, he actually got an offer on the property that the bank ACCEPTED, then 2 days later they foreclose on the property! What??? Obviously they are repealing...

In this case, the owners of this gorgeous condo at Redington Shores Yacht & Tennis Club, going through their own financial and health issues, find themselves unable to keep up with this property weighted down with both a 1st and 2nd mortgage. They got a contract in which would be a short sale and presented it to the lender along with their hardship dilemma. After several weeks of intense scrutiny, the lender refused to even consider a short sale? So... the alternative??? Either let the bank foreclose on the property or be willing to accept a contract at a price where they can liquidate their future retirement and bring the balance of the funds to the closing table themselves.

So... that is the story with this condo. back on the market at $495,000 FIRM... $55,000 less than any other condo currently listed in the community! Seller will be ADDING close to $150,000 to the Buyer's purchase to make the transaction go through. Tough on the Sellers... an amazing opportunity for the Buyers. For information, click here.

Spectacular Penthouse Just Listed In Redington Shores Yacht & Tennis Club!

Every now and then, a residence comes on the market that is truly unique... Penthouse 702 is just that property! This 4000 sq ft beauty combines top-of-the-line upgrades and designer furnishings with the amenities of an exclusive gated community: Redington Shores Yacht & Tennis Club.

The community consists of 4 buildings of waterfront condos as well as 63 private home lots with custom homes in various states of completion. Las Flores is the second building from Gulf Boulevard giving it the distinct location of far enough away from the road noise and out on wide open water, along with being close enough for a short walk to the beach.

During construction of the condominium residences, Penthouse 702 underwent some extraordinary floorplan alterations opening up the guest suites, embellishing the entry foyer and creating a separate Owner's Retreat. Once the builder turned it over - designer ready - the true work began! Be sure to look at the dedicated website to see some of the amazing details that went into this property. Click Here. There are only six of these penthouse residences in the entire 130 units... making them unique in their own right. But 702 takes that uniques to an entirely new level! Originally appraised

at $2.2 million BEFORE the $250,000 in upgrades. You will find this luxury property just listed at $1.25 million... for an exceptional 50% OFF sale. This is the time to take advantage of the depressed market value and get a property that is truly a stand-out!

Sanding Ovations - Treasure Island

I have to say... Treasure Island is amazing with its different events and Sanding Ovations, the annual sand sculpture competition was certainly no disappointment! 3 days of food, drink, arts & crafts PLUS live music throughout the event AND Fireworks on the beach Saturday night!!! It is happening this weekend behind the Bilmar Beach Resort, right here in Tampa Bay.

Over $10,000 in cash prizes will be awarded to the Top Three Sculptures & "People's Choice" Sculpture. With a high today of 80 degrees in beautiful weather, beachgoers are out in full force. We were there for the "Rocket Man Show" which was a great performance. After the Fireworks show tonight on the beach, tomorrow will feature a 6-hour beach jam with local musicians. There will also be a Jazz Beach Brunch Buffet presented by Sloppy Joe's and the city of Treasure Island. Nothing like listening to a 22-piece jazz band, the "Voices of Jazz" while enjoying a tropical beach brunch!

Did I mention what it is like to live here??? Maybe just once or twice :-))

Pinellas Realtor Organization Market Analysis For October 2010

Overall residential unit sales in October were down more than 18%, caused by a plunge in single family home sales with a drop of over 26% compared to last year. Condo sales also fell but at a milder 4.9%. However listings grew by only 1.32%. There was an increase of just under 5% for single family listings accompanied by a decline of 2.4% in condo listings compared to October 2009.

The median price for single family homes rose to $156,000, a 6.63% increase over last year. The condo median price fell from $113,000 in October 2009 to $104,000 this year—just under 8% dip. Looking more closely, the median price for bank related sales was down 6.8% from October 2009 while the median price for non-distressed homes sold was up by 14%. Pending contracts rose from October 2009 by nearly 4% for single family and about 3.5% for condos.

Distressed properties are still the elephant in the room for the Pinellas market. 56.2% of all the contracts written in October were bank owned or short sales. 36.4% of the homes sold in October were bank owned or short sales. Of the homes available for sale in October, almost 40% are bank related and 43.7% of all new listings in October are bank owned or short sales. Nearly 44% of the October new listings were bank related—so it is clear that this challenging market will be with us for a while yet.

For all the October Market Statistics, check out our website!

Spotlight on Harborview Grande - Clearwater Beach!

As we showed property to buyers over the weekend, the question that continues to arise yet again is a confusion over "Which condo complex should we choose?" It is rather daunting when you drive from St Pete Beach in the south to Clearwater Beach in the north and see hundreds of different complexes.

"What is the difference we can expect between buying a condo versus a single family home?" and the ever-present "Explain what these short sales are about."

First, let's tackle the condo complex question. In 2004, after a series of hurricanes, Florida toughened up the building codes making builders adhere to a much more rigid permitting and approval system. 2005 was about the turning point when builders no longer elected to use wood frame structures and began building with concrete (a combination of poured and block). Sliding glass doors began to have step-over high water thresholds at their base and high impact glass. If you take buildings completed in 2005 (like Sereno), 2006 (like Harborview Grande, La Vistana and Bella Rosa), 2007 (like Redington Shores Yacht & Tennis Club), they all have been built with the new codes and have the higher ceiling height, all block construction and high-impact glass.

Bear in mind that as the market declined in late 2007 construction on new projects halted... resulting in NO inventory from 2008, 2009 and 2010! Therefore, when a buyer is looking for newer construction, it narrows down to complexes built in 2005, 2006 or 2007. That certainly does not mean that the other older complexes are not worth consideration. Many of the buildings from the 70's and early 80's were built with all-block and have weathered many strong storms. Hurricane shutters go a long way in protecting the lower impact glass.

As a team, we determined that a dedicated website to certain complexes would go a long way to provide information and current availability. We opened the Redington Shores Yacht & Tennis Club site in 2008: www.redingtonshoresyachtclub.com Recently, we added a website dedicated to Harborview Grande in Clearwater Beach. This complex is worthy of note not only for its 2006 building completion, but also for its prime location and 7-day rental capability. This website is www.harborviewgrande-sales-rentals.com

Feel free to bookmark them and learn more about both complexes... we feel they are rising stars for both the present and future!

Art Harvest in Dunedin - A Juried Art Show Spondored By The Junior League Of Clearwater-Dunedin

An annual event, Art Harvest this year features artist James Michaels with his iconic display of work. Over 230 artists from around the country will be competing in one of the best art shows held in the Tampa Bay area. Sponsored by the Junior League of Clearwater-Dunedin, this year's event is being chaired by our own Lambdin Freeman!

Lambdin has been active in the Junior League and other volunteer projects since she moved to the Tampa Bay area from Atlanta, Georgia. She has a particular interest in the support of foster children and the proceeds from this weekend's event will benefit foster children and community projects in Pinellas County. It is amazing to see her manage such a large project while maintaining her real estate business!

Featured artists such as Michaels and Juan Ramirez Cotrino will be on hand to discuss their work. The festival atmosphere will feature a wide variety of food and drink to supplement the artist viewings. Some of the works will be offered for sale and will include sculptures, jewelry, photography, paintings and ceramics, along with glass, metal and wood works.


Art Harvest
A juried art show hosted by the Junior League of Clearwater-Dunedin featuring the works of more than 230 artists from across the country.
Where: Dunedin Highlander Park, Michigan Boulevard and Pinehurst Road.
When: 10 a.m. to 5 p.m. Saturday and Sunday.
Parking: On-site parking, $5. Or park for $3 at Dunedin High School, 1651 Pinehurst Road, and take the shuttle.
For information: Visit http://www.jlcd.org/