Florida Real Estate Blog

Average Mortgage Rates Move Back Lower Again: Freddie Mac

Today 7/02/09 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5.32% (5.26% in the southeast), down from 5.42% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.77%, down from 4.87% last week. A year ago the 30 year rate was 6.35%.

The lower rates we are seeing are a big help for the housing market. That could explain why the sales of existing homes was up lately. Since rates have gone down for the past two weeks, this has helped spur people to think about refinancing their existing loans.

From many corners we are also hearing that the fall in home prices is slowing. Many think we have already bottomed-out here in Florida. It looks that way to many of us who live and work here. Of course, some are still lowering their prices, but that is largely due to the effects of starting way above what was a reasonable price at that time. Trust me, there are still sellers out there who believe that it is still 2005 and then price their homes accordingly. Shame on those agents who play along. Reality has to hit home at some point.

In my personal opinion, and I am no big New York analysist, I will not be surprised at all if we see some normalization of the Florida housing markets in the coming months. It may already have started here-and-there. 2010 may be a much better year for many of us. Let's hope so! Fingers crossed.

Do keep in mind that we are a very large country. So figures that come out for the entire nation, may have little or no relevance for your particular area. In the end, it is best if you speak with a local REALTOR or financing expert to see what the situation is for your part of the United States. Florida is not Michigan, nor is Maine the same as California. Market conditions can be very different from place-to-place.

If you want to learn more about Freddie Mac or see the details of their survey, go to: www.freddiemac.com and click on the link for "Current Weekly Survey". They break down the survey by specific regions in the United States so you can see how your state compares to other parts of the country. They also explain the mission of Freddie Mac and offer a lot of useful information for consumers.

If you would like to speak with a lender you can find some at my website: www.jelwell.century21bnr.com . You can also speak with your own bank, credit union, or mortgage broker to see what your particular interest rate would be, should you decide to finance a home purchase.

I would also be happy to assist you in any way that I can. Just call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com  You are also welcome at my webpage:  www.jelwell.century21bnr.com

University of Florida Research Shows Florida's Consumer Confidence Drops in June 2009

June 30, 2009 - GAINESVILLE, Fla. — Florida’s consumer confidence fell three points in June to 68, possibly because of new and increased state fees for residents, General Motors’ bankruptcy and a spike in Florida’s unemployment rate a new University of Florida survey finds.

The index components were mixed, with perceptions of personal finances now compared with a year ago up three points to 44 from a revised May reading of 41 but still near historical lows. All others were lower than or the same as last month.

Perceptions of personal finances a year from now fell six points to 84, and perceptions of U.S. economic conditions over the next year fell seven points to 65 — it was 51 at this time last year. Perceptions as to whether it is a good time to buy big-ticket items fell nine points to 67. Finally, perceptions of U.S. economic conditions over the next five years remained unchanged at 80.

“In the previous two releases we had suggested the possibility of a small decline in confidence in June, which seems to have been the case,” said Chris McCarty, director of UF's Survey Research Center at the Bureau of Economic and Business Research. “This is most likely a combination of the fallout from the Florida state budget, which includes several new and increased fees, as well as the bankruptcy of GM.”

Another factor affecting the decline is a sharp increase in Florida’s unemployment rate. A previous unemployment release from the Agency for Workforce Innovation showed a slight decline, but that has since been erased by an increase into double-digit unemployment, he added. Florida’s seasonally adjusted unemployment rate for May 2009 was 10.2 percent, according to the agency.

“Most economists believe unemployment will continue to increase as the economy moves into recovery,” McCarty said.

The economic landscape in Florida remains mixed. On the negative side is high unemployment and continued foreclosures, although the rate of foreclosures in Florida may already have peaked, McCarty said. Gas prices have increased dramatically over the past month, although there are signs that may be reversing.

On the positive side, the Florida Association of Realtors report for May once again showed signs that the median price of existing homes is stabilizing. Since January, the median price has fluctuated in a narrow range and is now up for the year at $144,400. It is increasingly likely that Florida has taken most of its knocks to housing value, even as other states continue to decline, McCarty said.

“Moving forward, we do not expect Florida consumer confidence to decline much more over the next couple of months, barring some unforeseen change here in Florida or nationally,” he said. “There is at least a temporary reaction of the stock market to some recent news, including Iran and dramatic increases in mortgage and credit card delinquencies. So far, this volatility is relatively small and not indicative of a reversal in the economic recovery.”

However, McCarty cautions that everyone should expect the recovery to be long and uneven for some sectors of the economy.

“With the demise of longstanding financial institutions such as Lehman Brothers and manufacturing companies like Chrysler and GM, it is no longer business as usual,” he said. “The U.S. is clearly going to share more of the global economic pie than it has in the past.”

The research center conducts the Florida Consumer Attitude Survey monthly. Respondents are 18 or older and live in households telephoned randomly. The preliminary index for June was conducted from 430 responses. The index is benchmarked to 1966, so a value of 100 represents the same level of confidence for that year.

Source: Chris McCarty        Writer: Ron Wayne

Source: University of Florida Press Release

Note from John Elwell: This information seems to mirror a press release from The Conference Board that was also released on June 30, 2009 that showed that consumer confidence nationwide had also decreased in June after showing an increase in May. Is this just a correction or a trend? We will just have to wait for the coming months to tell us that.

 

Casa del Sol Furnished Double-Wide Mobile For Sale in Zephyrhills, Florida

Located in the Casa del Sol mobile home subdivision, this spacious and furnished 2 bedroom/2 bath home is ready for its new owners. It has an "open plan" with 1,268 square feet of heated and cooled living space. Nearly the entire front half of the home is one large inviting space. Though the home is sold furnished, there is still ample room for your own items. The vaulted ceilings accent the roomy feeling here. A bank of windows ensure that this area is always light and bright. Just what you expect in Florida!

There is an easy flow from the huge living room to the dining area and its nearby well-appointed kitchen. All the major applicances are included in the sale. You will have more than enough cabinet space and counter-tops for preparing delicious meals. There is even a snackbar where informal meals can be enjoyed.

The master bedroom has a large mirrored closet and its own "en-suite" bath with a garden tub and separate shower. This master is a great spot where you can retreat from the hustle and bustle of the world.

The laundry room is located inside the home and also has a built-in home office with desk and cabinets. How convenient! The washer and dryer are also included in the sale of this home.

Attached to the home is a one-car carport to shade your vehicle from the sun. There is also a large Florida room where you will enjoy entertaining friends and neighbors, or perhaps just relaxing.

Behind the Florida room is an even larger workshop/utility/storage area. This room is huge! A perfect place to work on projects, keep an extra home freezer, store seasonal items and tools, etc. I am sure you will find many uses for this versatile space.

The low homeowner association fees that are currently just $25/month (as of 6/2009) give you access to the community's clubhouse, pool, and shuffleboard courts. This is a very social subdivision, and it seems like there is always someone to do things with. This is not a rental park. You own the land under the home. Sorry, but in Casa del Sol, no pets are allowed.

Attractively priced at just $79,900, this furnished home is move-in ready and is awaiting its new owners. Could you be the ones? Call today for more information or to arrange a tour. John Elwell at CENTURY 21 Bill Nye Realty, Inc.  813-783-4444 or e-mail me at:  jelwell1@tampabay.rr.com  I also invite you to stop by my webpage at: www.jelwell.century21bnr.com

Click on any of the pictures below to see a larger version.

Average Mortgage Interest Rates BARELY Move Up a Bit This Week

Today 6/25/09 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5.42% (5.36% in the southeast), up from 5.38% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.87%, actually down from 4.89% last week. A year ago the 30 year rate was 6.45%. One rate went up and one went down. Mostly a wash I would say. Changes that will matter little on your loans.

Interest rates remained relatively unchanged due to very conflicting economic reports concerning the housing market. The sales of existing homes went up for the second straight month, but the median price for them was nearly 17% lower than it was last year. This according to the National Association of REALTORs (NAR). While the sales of existing homes rose, sales of new homes fell 0.6% in May. But their median price was only 3.4% lower than last year. In my opinion, the builders were discounting more aggressively and started doing it way before the average home seller did. That could explain the difference in the median price drops.

Some good news is that the inventory of unsold homes has gone down. Don't you remember me telling you that on several occasions? Here in Zephyrhills, instead of having 30 new listings come on the market each day, now we only have 3 or 4. And with the builders sitting things out for the most part, it only figures that inventory will drop. According to Freddie Mac, the number of existing homes waiting to be sold is 15.3% lower than it was a year ago. And the number of new homes in the inventory was down 35.9%!

Now one more good note. The number of distressed (short sales, foreclosures, abandoned homes) up for sale no only consitute 1/3 of the market as opposed to nearly half of it as recently as March 2009!. That is very good news for the rest of you selling who want to sell your homes and this could help to stablize the prices in the future. Will be nice not to have to compete with 10 foreclosures in your neighborhood.

But do watch those interest rates and do not try to guess when it will be the lowest it can go. No one can predict that. When the rates are "pretty good" and are acceptable to you and your budget, that may be the time to make a move. If you wait to long as you try to anticipate whether rates will go even lower, you are likely "to get caught with your pants down and interest rates up".Trying to avoid that could be what is making some buyers finally get off the fence based on recent interest rates increases.

Do keep in mind that we are a very large country. So figures that come out for the entire nation, may have little or no relevance for your particular area. In the end, it is best if you speak with a local REALTOR or financing expert to see what the situation is for your part of the United States. Florida is not Michigan, nor is Maine the same as California. Market conditions can be very different from place-to-place.

If you want to learn more about Freddie Mac or see the details of their survey, go to: www.freddiemac.com and click on the link for "Current Weekly Survey". They break down the survey by specific regions in the United States so you can see how your state compares to other parts of the country. They also explain the mission of Freddie Mac and offer a lot of useful information for consumers.

If you would like to speak with a lender you can find some at my website: www.jelwell.century21bnr.com . You can also speak with your own bank, credit union, or mortgage broker to see what your particular interest rate would be, should you decide to finance a home purchase.

I would also be happy to assist you in any way that I can. Just call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com  You are also welcome at my webpage:  www.jelwell.century21bnr.com

Florida Mirrors National Trend with Increases in Existing-Home and Condo Sales for May 2009

ORLANDO, Fla., June 23, 2009 – Florida’s existing home sales rose in May – the ninth month in a row that sales activity increased in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR). Statewide sales showed gains over the previous month’s sales level in both the existing home and existing condominium markets. Also, for the first time in many months, the statewide median sales price in May for existing homes and for existing condos rose over the previous month’s figure.

Existing home sales rose 16 percent last month with a total of 13,921 homes sold statewide compared to 12,044 homes sold in May 2008, according to FAR. Statewide existing home sales in May increased 6.2 percent over April’s statewide activity. Florida Realtors also reported a 21 percent rise in statewide sales of existing condos in May; existing condo sales last month rose 3.8 percent over the total units sold in April.

“The improving sales of existing single family homes and condos is a trend we have been seeing for several months in Florida – what is new in this month’s data release is that we are seeing evidence of prices beginning to firm,” says Dr. Sean Snaith, director for the University of Central Florida’s Institute for Economic Competitiveness. “While one month of data does not a trend make, it is the first green shoot we have seen in some time as far as prices are concerned; until prices stop declining, we cannot state with confidence that the housing market has stabilized. Sales have risen to levels we have not seen since 2006, though the economy still faces headwinds. As credit markets begin to thaw this will help speed along this process of recovery in the housing market.”

Thirteen of Florida's metropolitan statistical areas (MSAs) reported increased existing-home sales in May and 13 MSAs also showed gains in condo sales. A majority of the state's MSAs have reported increased sales for 11 consecutive months.

Florida’s median sales price for existing homes last month was $144,400; a year ago, it was $203,800 for a 29 percent decrease. However, the statewide existing home median price in May was higher than the statewide median price reported in each of the previous four months. According to housing industry analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to lower the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in April 2009 was $169,800, down 14.9 percent from a year earlier, according to NAR. In California, the statewide median resales price was $256,700 in April; in Massachusetts, it was $275,000; in Maryland, it was $255,587; and in New York, it was $185,000.

According to NAR’s latest housing industry outlook, buyers are responding to favorable market conditions. “Now the $8,000 first-time buyer tax credit is beginning to impact the market,” said NAR Chief Economist Lawrence Yun. “Since first-time buyers must finalize their purchase by Nov. 30 to get the credit, we expect greater activity in the months ahead and that should spark more sales by repeat buyers.” Many homebuyers are taking advantage of the bargain prices offered on foreclosed listings in states like Florida, California and Nevada, Yun noted, which should “set the stage for healthy market conditions going forward.”

In Florida’s year-to-year comparison for condos, 4,839 units sold statewide compared to 3,998 units in May 2008 for a 21 percent increase. The statewide existing condo median sales price last month was $113,400; in May 2008 it was $181,700 for a 38 percent decrease. May’s statewide existing condo median price was the same as January’s statewide median, and was higher than the median reported in February, March or April. The national median existing condo price was $173,900 in April 2009, according to NAR.

Interest rates for a 30-year fixed-rate mortgage averaged 4.86 percent last month, down significantly from the average rate of 6.04 percent in May 2008, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s smaller markets, the Melbourne-Titusville-Palm Bay MSA reported a total of 584 homes sold in May compared to 491 homes a year ago for a 19 percent increase. The existing home median sales price was $123,700; a year ago, it was $163,100 for a 24 percent decrease. In the year-to-year comparison for the existing condo market, 123 units sold in the MSA last month, up 6 percent compared to 116 condos sold the previous May. The market’s existing condo median price last month was $134,400; a year earlier, it was $144,300 for a 7 percent decrease.

Source: Florida Association of REALTORS Press Release

Existing Home Sales Rose Again in May 2009: NAR

Washington, June 23, 2009 - Sales of existing homes showed another gain in May, benefiting from favorable affordability conditions and a first-time buyer tax credit, according to the National Association of Realtors®. May’s increase was the first back-to-back monthly gain since September 2005.

Existing-Home Sales– including single-family, townhomes, condominiums and co-ops – rose 2.4 percent to a seasonally adjusted annual rate¹ of 4.77 million units in May from a downwardly revised level of 4.66 million units in April, but remained 3.6 percent below the 4.95 million-unit pace in May 2008.

Lawrence Yun, NAR chief economist, expected an improvement. “Historically low mortgage interest rates clearly drew buyers into the market, and housing remains very affordable even with a recent uptick in rates,” he said. “First-time buyers also are being drawn off the sidelines by the $8,000 tax credit, which is helping to absorb inventory. However, the increase in sales is less than expected because poor appraisals are stalling transactions. Pending home sales indicated much stronger activity, but some contracts are falling through from faulty valuations that keep buyers from getting a loan.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage edged up to 4.86 percent in May from a record low 4.81 percent in April; the rate was 6.04 percent in May 2008. Last week, Freddie Mac reported the 30-year fixed at 5.38 percent; data collection began in 1971.

Total housing inventory at the end of May fell 3.5 percent to 3.80 million existing homes available for sale, which represents a 9.6-month supply² at the current sales pace, down from a 10.1-month supply in April.

Yun said the appraisal problem is serious. “Lenders are using appraisers who may not be familiar with a neighborhood, or who compare traditional homes with distressed and discounted sales,” he said. “In the past month, stories of appraisal problems have been snowballing from across the country with many contracts falling through at the last moment. There is danger of a delayed housing market recovery and a further rise in foreclosures if the appraisal problems are not quickly corrected.”

An NAR practitioner survey in May showed first-time buyers accounted for 29 percent of transactions, and that the number of buyers looking at homes is nearly 10 percentage points higher than a year ago. “This is the time of year when we see large increases in the number of repeat buyers, who are benefitting from sales to entry-level buyers,” Yun said. “Investors appear less active, but are more prevalent in areas with large price corrections.”

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said appraisals and the tax credit are key issues. “To maximize the potential for a housing recovery and subsequent economic recovery, we need realistic appraisals that are based on proper comparisons and done by a local specialist,” he said. “In addition, the first-time buyer tax credit should be expanded to all buyers of primary homes regardless of income. Extending the credit into 2010 would allow more time for the market to catch up with underlying demand, in part because many families with children, who normally time their purchase based on school year considerations, do not have enough time to move before the start of school in late August.

“Freeing a pent-up demand in housing will absorb inventory at a faster pace, strengthen communities and stabilize home prices earlier,” McMillan said.

The national median existing-home price³ for all housing types was $173,000 in May, down 16.8 percent from a year earlier. Distressed properties, which declined to 33 percent of all sales in May from 45 percent in April, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.

“The decline in the distressed sales share likely results from an increase of repeat buyers in May,” Yun said. “First-time buyers are concentrated in the lower price ranges, which include most of the distressed sales.”

Single-family home sales rose 1.9 percent to a seasonally adjusted annual rate of 4.25 million in May from a pace of 4.17 million in April, but are 3.0 percent below the 4.38 million-unit level in May 2008. The median existing single-family home price was $172,900 in May, down 16.1 percent from a year ago.

Existing condominium and co-op sales increased 6.1 percent to a seasonally adjusted annual rate of 520,000 units in May from 490,000 in April, but are 8.9 percent below the 571,000-unit level in May 2008. The median existing condo price⁴ was $173,800 in May, down 21.9 percent from a year earlier.

Regionally, existing-home sales in the Northeast rose 3.9 percent to an annual level of 800,000 in May, but are 10.1 percent below a year ago. The median price in the Northeast was $243,600, which is 12.5 percent below May 2008.

Existing-home sales in the Midwest jumped 9.0 percent in May to a pace of 1.09 million but are 4.4 percent below May 2008. The median price in the Midwest was $145,800, which is 10.4 percent lower than a year ago.

In the South, existing-home sales were unchanged at an annual pace of 1.74 million in May but are 8.9 percent below a year ago. The median price in the South was $157,400, down 9.9 percent from May 2008.

Existing-home sales in the West slipped 0.9 percent to an annual rate of 1.14 million in May, but are 11.8 percent higher than May 2008. The median price in the West was $197,700, down 30.6 percent from a year ago.

Source: National Association of REALTORS Press Release

Zephyrhills Saturday Nite Cruise to Take Place on July 25th in Downtown Area

Main Street Zephyrhills, Inc. is offering another Zephyrhills Saturday Nite Cruise on July 25th from 4 PM to 8 PM. It will take place near the intersection of US 301 and State Road 54 (5th Avenue).

There will be:

• No entry fee
• Food
• Music
• 50/50 Raffle
• Door Prizes
• Cars, Cars, and more Cars!

Sounds like a nice way to spend a summer evening in Florida. For more information call: 813-780-1414 or e-mail: mszi@verizon.net

 

Why Buyers Really Need the Services of a REALTOR

I was recently asked to list a mobile home in one of our nearby retirement subdivisions here in Zephyrhills, Florida. (Not the one in the image here) The home had been purchased for about $38,000 a few years ago directly from a seller with no real estate professionals or title insurance company involved in the sale. And though it was older, she had done a great job of updating it with new energy-efficient windows, laminate floors, beautiful furnishings, new kitchen and bath cabinets, etc. In a word, the home was wonderfully redone and very attractive to buyers.

However, as I went over the listing papers with the owner, I asked her for a copy of the title to the mobile. Whoops, she had never received one from the previous owner. She had some papers that even indicated that he had not received title from two owners back, who were now deceased!! So my seller did not technically have title to the mobile home. Not a good thing. How about the land under it?

Turns out that some office in Indiana (we are in Florida) had made out a deed to the home, but had done it in such a way that it did not meet Florida's requirements. Plus, she did not get an owners title insurance policy from the seller, and therefore had no title protection from anyone.

So here she sat with a home she had paid $38,000 for and upgrades that she had done for an additional $15,000+, and her ownership was not clear. Not a good position to be in.

In addition, the seller neglected to attach the lead based paint disclosure addendum to the contract and did not provide the buyer with the Lead Paint pamphlet, as required by law since the home was built before 1978. Any good REALTOR would have known to do that. The buyer was also incorrectly told that she could not get insurance for the home. Of course she could. But instead, she spent several years with no coverage whatsoever. She was just lucky a storm did not cause any damage or someone was not injured at her home. If necessary, insurance can be purchased from Citizens, the state-run company. At least the buyers should have known that she had the option of having coverage.

Before I go further, do let me say that I do not believe the seller was trying to cheat or deceive the buyer. He just assumed that it was "a piece of cake" to sell a home and moved ahead without knowing all the fact, laws, or his responsibilities were. But his lack of knowledge could have caused the buyer serious problems.

Ironically, when she bought the home it would have cost her nothing to have a REALTOR help her. In Florida the seller normally pays the commission for the sale. But her REALTOR would have advised her to get the title, use a local title company so the deed would be done correctly and an owners policy would be provided to protect her. I certainly would have warned her!

In a worst case scenario, the now out-of-state former owner could have just said, "tough luck, you're on your own". Can you imagine the fun of trying to sue a person who lived 1,000 miles away? Or worse, a former owner who was now dead!

As it was, the former owner was gracious and paid the cost of an attorney to straighten out the problems with the title and the deed. This of course, took away a lot of the money he thought he was saving by selling it himself. It also took 2 months to complete the transaction, and delays are not nice. But the deal did finally close thanks to the cooperation of the buyer, seller, former owner, title company, attorney, and REALTOR (me).

All of this could have been avoided if the seller and the buyer had used the services of a REALTOR. Our training and experience can help you avoid problems like the ones we encountered in this deal. If you do not, in the end, any money you think you have saved (and then some) could be quickly eaten up by the costs of trying to correct the mistakes you will make by going it alone. You could also lose the sale altogether. A lot of buyers are not willing to wait month-after-month to get their homes. Before you sell, you need to have clear title to the home.

Here are just a few of the tasks that a REALTOR working with buyers will likely do:

• Make sure you get title to mobiles
• Make sure that you get the type of deed that is required for the land
• Make sure that you are issued an owners title insurance policy
• Act as a communications "go between" for you and the seller(s)
• Coordinate all required or requested inspections
• Ensure that local, state, and federal laws and regulations are adhered to
• Help you keep to any timetables set in place by your purchase agreement
• Keep you updated on the progress of the sale
• Disclose any known defects that he/she is aware of that materially affect the value of the home

• Conduct a walk-through inspection with you just before the closing takes place

As I said previously, in Florida, your agent will normally provide these services to his buyers for free, since the seller pays the commission here in most cases.

If the buyer I mentioned above had use a REALTOR from the beginning, she would have had a good deed, a title to the mobile, and a proper title insurance policy in hand. Even in a "for sale by owner" situation, you can ask the seller to pay your agent a commission. If he or she refuses, I strongly recommend that you then consider hiring your own "buyers agent" to make sure that your interests are better protected than they would be if you go it alone. You can avoid a lot of troubles, hassles, financial losses and delays by doing this. A well-trained, experienced, full-time, and competent REALTOR can be worth his weight in gold.

If you need more information or if I can assist you in any way, do not hesitate to contact me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com  Feel free to also visit my website at:  www.jelwell.century21bnr.com

Finally Average Mortgage Interest Rates Move a Bit Lower: Freddie Mac

Today 6/18/09 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5.38% (5.37% in the southeast), down from 5.59% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.89%, down from 5.06% last week. A year ago the 30 year rate was 6.42%. So rates, while a bit higher than a month ago, are still pretty low.

It was explained by spokespersons that since inflation seems to be at a minimum, interest rates fell. Nothing gets the Fed more excited than a fear of inflation. When it is not on the horizon, they do little to raise rates. The consumer price index (inflation) rose by just 0.1% in May. Over the past year the overall drop in consumer prices was 1.3%, the largest since the year 1950. Kind of makes sense. When consumers aren't buying clothes, trips, cars, houses, pets, televisions, etc. it is only natural that retailers, wholesalers, and factories will lower prices to get buyers to spend money. Thus drops in prices and their corresponding indices.

As far as housing goes, they feel it is too early to say if things have bottomed out. But we do see inventory continuing to drop here in Zephyrhills and Dade City, Florida. Applications for mortgages fell for the first time in 4 weeks. Well, duh! When interest rates jump about 1% in just a few weeks time, it is only natural that homeowners and home buyers are more reticent about financing or refinancing. My guess it that if rates drop back below 5% we will see renewed interest and the number of mortgage applications will go back up.

As I reported just recently here, new construction of single-family homes went up for the third month in a row. In May it rose 7.5%. This could show builder confidence, which is a good thing. But, I am not sure we need that many new homein the marketplace at this point in time.

Do keep in mind that we are a very large country. So figures that come out for the entire nation, may have little or no relevance for your particular area. In the end, it is best if you speak with a local REALTOR or financing expert to see what the situation is for your part of the United States. Florida is not Michigan, nor is Maine the same as California. Market conditions can be very different from place-to-place.

If you want to learn more about Freddie Mac or see the details of their survey, go to: www.freddiemac.com and click on the link for "Current Weekly Survey". They break down the survey by specific regions in the United States so you can see how your state compares to other parts of the country. They also explain the mission of Freddie Mac and offer a lot of useful information for consumers.

If you would like to speak with a lender you can find some at my website: www.jelwell.century21bnr.com . You can also speak with your own bank, credit union, or mortgage broker to see what your particular interest rate would be, should you decide to finance a home purchase.

I would also be happy to assist you in any way that I can. Just call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com  You are also welcome at my webpage:  www.jelwell.century21bnr.com

4th of July Sparklebration in Dade City, Florida at the County Fairgrounds

On Saturday, July 4, 2009 the Annual Sparklebration will take place in Dade City, Florida at the Pasco County Fairgrounds located at 36722 State Road 52. This is just to the west of the city center. Gates will open at 4 PM and the fireworks display will take place at 9:15 PM.

Admission is $3.00 for adults, and kids under the age of 10 are FREE! Parking is $5.00.

Starting at 4:00 PM there will be continuous LIVE ENTERTAINMENT including:

• Dan Story and the Sez Who Band
• Russell Elvis - A Tribute to the King
• Fritzy Bros. - One Man Circus
• Bounce House, Jumpers, & Slides
• Face Painting
• A Balloon Artist
• Magician Steven Marcus
• All-American Food Court
• Watermelon, Hotdog, and Apple Pie eating contests
• Pony rides
• Petting Zoo
• and Lots More!

So why not stop by and spend a wonderful Florida evening at the fairground. Sounds like it will be a night of fun and action.

For more information you can visit their website at:  www.sparklebration.com  Other activities will take place on July 3rd, so check out this link for more information!

US Commerce Department Reports Increases in Building Permits & Housing Starts for May 2009

WASHINGTON—The Commerce Department’s U.S. Census Bureau today released data on building permits and housing starts in May 2009, showing that building permits rose 4.0 percent in May to 518,000 at an annual rate, and housing starts rose 17.2 percent to 532,000.

“Even as we see important glimmers of light like today’s increases, we have not yet seen consistent gains,” Blank said. “The economic environment remains difficult. That’s why it’s important that we continue advancing an agenda to improve the nation’s long-term fiscal health, and nothing is ultimately more important for that than reforming America’s healthcare system.”

Source: US Commerce Department News Release

For information concerning the real estate market in Zephyrhills, Florida and the surrounding Pasco County area, you can call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com

Home Buyers Should Understand How Their Credit Works

Today we are in a bit of a mess economically here in the United States, as are many other countries. Zephyrhills, Florida is no exception. Part of the problem is a clogged-up credit system. Money is not flowing as freely as it used to. In past decades most deals took place on a cash basis. For better or worse, today it is credit that moves the economies everywhere. Without good credit and the flow of borrowed funds, things grind to a halt. How many people could buy a $200,000 home or even a $12,000 car for cash today. The vast majority of us finance these purchases.

It is sometimes surprising that many people do not understand how the credit system works in general. They also do not understand how their own personal credit history can help them or hurt them. A good credit profile makes more money available at lower interest rates when you need to borrow it. However, it can also make security deposits to utility companies unnecessary, get you cheaper insurance premiums, and much more. A bad credit history or no credit rating can do just the opposite.

So what can you do to fix things? The non-profit Fannie Mae Foundation has created a brochure called "Knowing and Understanding Your Credit" that can provide you with some of the answers. To download a copy, just click on the following link: Download Knowing & Understanding Your Credit

If you want more information concerning this topic you can call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com  I also invite you to stop by my webpage at: www.jelwell.century21bnr.com

Mortgage Interest Rates Jump Higher Still says Freddie Mac

Today 6/11/09 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5.59% (5.53% in the southeast), up from 5.29% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.06%, up from 4.79% last week. A year ago the 30 year rate was 6.32%. Though not as big a jump as last week's, it was still no small potatoes! These are the highest rates in 7 months. Will they go back down or go even higher. Who knows? If I were you I would speak with your lender or mortgage broker ASAP.

The economic reports showed that fewer jobs had been lost in May and this boosted bond yields. Ever the one to play follow-the-leader, mortgage interest rates increased as well. Even earlier job loss reports were revised and showed that less jobs had gone bye-bye than the experts had first reported. Some are even hinting that the Federal Reserve may raise its rates in the not-too-distant future. Funny how when there is positive new interest rates climb. Just a few weeks ago the average was nearer to 4.50%!

Refinancing activity is slowing since now the rates are higher and to refinance is not so advantageous. However, applications for loans for new home purchases rose. Could be people think that interest rates have now "bottomed out", and they are afraid they will not get a good rate unless they move now. Hard to tell, but that could be a motivator.

But do watch those interest rates and do not try to guess when it will be the lowest it can go. No one can predict that. When the rates are "pretty good" and are acceptable to you and your budget, that may be the time to make a move. If you wait to long as you try to anticipate whether rates will go even lower, you are likely "to get caught with your pants down and interest rates up".Trying to avoid that could be what is making some buyers finally get off the fence based on recent interest rates increases.

If you want to learn more about Freddie Mac or see the details of their survey, go to: www.freddiemac.com and click on the link for "Current Weekly Survey". They break down the survey by specific regions in the United States so you can see how your state compares to other parts of the country. They also explain the mission of Freddie Mac and offer a lot of useful information for consumers.

If you would like to speak with a lender you can find some at my website: www.jelwell.century21bnr.com . You can also speak with your own bank, credit union, or mortgage broker to see what your particular interest rate would be, should you decide to finance a home purchase.

Realty Trac Reports 6% Decrease in Foreclosures Nationwide from April to May 2009

IRVINE, Calif. – June 11,    2009 – RealtyTrac®  (www.realtytrac.com),    the leading online marketplace for foreclosure properties, today released    its May 2009 U.S. Foreclosure Market Report™, which shows foreclosure filings —  default notices, scheduled auctions and bank repossessions — were reported on 321,480 U.S. properties during the month, a decrease of 6 percent from the previous month but an increase of nearly 18 percent from May 2008. The report also shows that one in every 398 U.S. housing units received a foreclosure filing in May.

“May foreclosure activity was the third highest month on record, and  marked the third straight month where the total number of properties with foreclosure  filings exceeded 300,000 — a first in the history of our report,” said  James J. Saccacio, chief executive officer of RealtyTrac. “While defaults  and scheduled foreclosure auctions were both down from the previous month,  bank repossessions, or REOs, were up 2 percent thanks largely to substantial  increases in several states, including Michigan, Arizona, Washington, Nevada,  Oregon and New York. We expect REO activity to spike in the coming months as  foreclosure delays and moratoria implemented by various state laws come to  an end.”

Nevada, California, Florida post top state foreclosure rates
Nevada continued to document the nation’s highest foreclosure rate, with  one in every 64 housing units receiving a foreclosure filing during the month — more  than six times the national average.

With one in every 144 housing units receiving a foreclosure filing during  the month, California posted the nation’s second highest state foreclosure  rate despite a 4 percent decrease in foreclosure activity from the previous  month.

Florida posted the third highest state foreclosure rate in May, with one in  every 148 housing units receiving a foreclosure filing during the month.

Arizona posted the fourth highest state foreclosure rate in May, with one  in every 158 housing units receiving a foreclosure filing, and Utah posted  the fifth highest state foreclosure rate, with one in every 316 housing units  receiving a foreclosure filing.

Other states with foreclosure rates ranking among the nation’s 10 highest  were Michigan, Georgia, Colorado, Idaho and Ohio.

Top 10 states account for nearly 77 percent of total U.S. foreclosure    activity
California reported 92,249 properties with foreclosure filings in May, the  highest total of any state and up nearly 23 percent from May 2008. Bank repossessions  in California were down 1 percent from the previous month and defaults were  down 18 percent, but scheduled auctions were up 18 percent.

Default notices, scheduled auctions and bank repossessions in Florida were  all down from the previous month, but the state still posted the nation’s  second highest number of properties with foreclosure filings: 58,931, up 50  percent from May 2008.

Nevada documented 17,157 properties with foreclosure filings in May, the third  highest total of any state and up nearly 83 percent from May 2008. A 23 percent  increase in bank repossessions helped push Nevada foreclosure activity up 5  percent from the previous month.

Other states with totals among the 10 highest in the country were Arizona  (16,865), Michigan (13,891), Ohio (11,360), Illinois (10,942), Georgia (10,516),  Texas (9,813) and Virginia (5,385). The top 10 states accounted for nearly  77 percent of total properties with foreclosure filings nationwide.

California, Florida, Nevada dominate top 10 metro foreclosure rates
Foreclosure filings were reported on 14,681 Las Vegas properties in May, one    in every 54 housing units — more than seven times the national average    and the highest foreclosure rate among metro areas with a population of at    least 200,000. The city’s foreclosure activity increased 4 percent    from the previous month and 78 percent from May 2008.

California and Florida accounted for the remainder of top 10 metro foreclosure  rates.

California cities accounted for six of the top 10 spots: Stockton at No. 2  (one in 68 housing units), Modesto at No. 3 (one in 71), Riverside-San Bernardino  at No. 4 (one in 75), Merced at No. 5 (one in 78), Bakersfield at No. 7 (one  in 94), and Vallejo-Fairfield at No. 9 (one in 101).

Florida cities accounted for three of the top 10 spots: Cape Coral-Fort Myers  at No. 6 (one in 82 housing units), Orlando-Kissimmee at No. 8 (one in 101),  and Miami-Fort Lauderdale-Pompano Beach at No. 10 (one in 105).

Source: Press Release from RealtyTrac - www.realtytrac.com

Blood Net Blood Drive at CENTURY 21 Bill Nye Realty on Monday, June 29th

Please be aware that the Bloodnet USA bus will be parked outside of our offices on Monday, June 29, 2009 (my birthday). It will be there from 10:00 AM to 12:30 PM. Many of our agents and other employees will be making donations and we invite the public to stop by as well.

As many of you know summer is a time with lots of people on the road and therefore there are more accidents. Often these result in a demand for blood. Bloodnet supplies many of our local hospitals, so your donation could save the life of a friend, neighbor, or family member.

Why not stop by, say "Hello" and make a life-saving donation.

Our Address is: CENTURY 21 Bill Nye Realty, Inc., 34619 State Road 54, Zephyrhills, Florida 33541

For more information you can call Jill at: 813-714-3270. For driving directions, you can call our office at: 813-782-5506.