Florida Real Estate Blog

Freddie Mac Reports That National Average Mortgage Interest Rates Go Up Again!

Today  Freddie Mac reported that nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.42% (6.37% in the southeast), up from 6.37% a week ago. The average interest rate for 15 year fixed-rate mortgages was 6.12%, up from 6.06% over last week. Both were smaller jumps than in the previous week's report.

Increased orders for durable goods helped inch interest rates higher and indicate that outside of the housing market the overall economy "remains robust".

April's total home sales (including condos and co-ops) were below those of last year, and property values appear to be down an average of 1.4% over the year ending in March.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

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.

University of Florida Reports that State's Consumer Confidence Takes a Dive!

GAINESVILLE, Fla. — Record-high gas prices and a weak housing market caused consumer confidence in Florida to fall three points in May to 82, its lowest level since October 2005, a new University of Florida study finds.

The source of the decline was broad-based, with all five of the index components registering pessimism. The biggest drop was in perceptions of whether it is a good time to buy big-ticket consumer items, such as appliances and cars, which fell six points to 91. Perceptions of personal finances now compared with a year ago fell four points to 79, while perceptions of personal finances a year from now fell two points to 91. Perceptions of U.S. economic conditions over the next year fell two points to 74, while perceptions of U.S. economic conditions over the next five years fell one point to 78.

“Consumers in Florida are growing much more pessimistic about the economy and their finances,” said Chris McCarty, director of the Survey Research Center at UF’s Bureau of Economic and Business Research, which conducts the survey. “A gallon of gas in Florida has risen more than 13 cents in the past week and 26 cents compared to the same time a year ago. Although it is typical for gas prices to increase as summer approaches, we are now at record highs.”

Although rising gas prices have hurt consumer confidence among low-income consumers – those living in households making less than $30,000 a year – for some time, the source of the drop this month is increased pessimism among upper-income households, McCarty said.

“Given increases in the stock market, the likely culprit is the very weak housing market here in Florida,” he said.

Nearly 70 percent of all real estate sales occur in the spring, but by nearly all measures, this has been a very weak real estate season with overall sales and price declines similar to what they would be during a recession, McCarty said.

“While there are a few real estate experts who think the fall in housing has bottomed out, most remain skeptical as one indicator after another shows the depth and breadth of the decline,” he said.

Retail sales were quite weak in April, with sales of building materials particularly hard hit as new home construction slowed dramatically, McCarty said. Also showing big drops were sales of clothing, cars and general merchandise, he said.

“While some of this decline is due to increased fuel costs, it almost certainly reflects problems in housing,” he said.

One of the biggest problems is declining home values, and with that, home equity, McCarty said. Home equity withdrawals have been a major source of consumer spending over the past few years, he said.

Many aspects of the housing decline have yet to play out, McCarty said. Besides construction workers, real estate agents and others directly involved in the construction and sale of housing, retailers and service industries are also affected by declining home equity.

“We must keep in mind that Florida is among a few states, such as California, that may experience serious effects from the problems in the real estate market,” he said. “People often consider vacations as discretionary spending, which could impact Florida as a primary vacation destination. There is also an impact on employers who cannot get employees to move here, or to transfer, because of problems buying or selling houses.”

Although many economists believe housing may be close to bottoming out, the consequences will be felt for at least another year or two, McCarty said.

“We expect consumer confidence to remain the same or continue to decline as gas prices and housing continue to negatively impact consumers,” he said. “If we see significant declines in the stock market in June, a further drop in consumer confidence is a virtual certainty.”

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 May was conducted from 413 responses. The error rate is plus or minus 5 percent.

Consumer confidence is designed to help predict buying patterns by measuring the mood of consumers toward purchasing. Although other economic indicators also predict buying patterns, consumer confidence tends to be available sooner. The index is benchmarked to 1966, so a value of 100 represents the same level of confidence for the year. The value of the index is in comparing changes over time rather than looking at an isolated month.

Contact

Cathy Keen, ckeen@ufl.edu, 352-392-0186

Source

Chris McCarty, ufchris@ufl.edu, 352-392-2908, ext. 101

SOURCE: University of Florida Press Release

US Commerce Department Reports Mixed News on Housing Situation

The US Commerce Department is reporting that the sales of new homes jumped last month to a level higher than any period over the past 14 years, +16%! However, the median price of new homes fell by the biggest amount since records have been kept, a whopping -11.1%! We are seeing similar drops in new home prices here in the Zephyrhills and Tampa areas as developers are desperate to move homes that are completed and are sitting empty. These deeply discounted prices by developers must be taken into account when agents and sellers work to determine the best price at which to market any specific home. The developers are in direct competition with private home sellers, and buyers are keenly aware that good deals are being offered by worried developers with large inventories to move.

In the end, no one seems to know for sure if the worst of the housing slump is over, or is yet to come.

To download a copy of the Commerce Department's report in PDF format, click on the following link: Download newressalesdeptCommerce.pdf

Freddie Mac Says Average Interest Rates Took Yet Another Jump This Week!

Just today  Freddie Mac reported that nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.37% (6.35% in the southeast), up from 6.21% a week ago. The average interest rate for 15 year fixed-rate mortgages was 6.06%, up from 5.92% over last week. Quite a one week jump, and the first time that 15 year rates have been over 6% in a LONG time.

First there was stronger than expected consumer confidence ratings. Then comments from Federal Reserve representatives raised concerns about future inflation, and these comments dampened expectations of any rate cuts by the Fed this year. These two factors helped to push mortgage rates higher over the past 7 days.

A spokesman said they predict slowly rising interest rates for the remainder of this year, with homes sales declining even more over the second half of 2007. Near the end of the year they believe a gradual recovery will begin and modest sales and new construction increases will take place in 2008.

"The slowdown in the housing market is evident in home sales. Over the first three months of 2006, interest rates for 30 year fixed-rate mortgages averaged 6.25%, which spurred 1.11 million new home sales, and although mortgage rates in the first quarter of 2007 averaged a little lower than those in 2006, they fostered only 0.86 million in sales, or a 23% drop; existing home sales fell 7%".

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

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.

Don't Cut Your Agent Out of His Commission When Dealing With Home Developers & Builders

A colleague of mine here in Zephyrhills, Florida recently had an experience that proves a point. He had some buyers that he had been working with for several months. They finally expressed an interest in seeing some new homes nearby. Most homebuilders and developers will pay agents a commission for bringing them buyers. The agent in question gave the buyers a list of subdivisions that were being built. Thinking they would save him time, the buyers went out to see some of the areas and the homes that were available without letting their agent know what they were doing.

When the people finally found a home they wanted to buy, the developers refused to give the hard-working agent his commission. Why? Because he had not accompanied the buyers in person the first time they looked at the home, and therefore, had not been able to register them as his buyers on that first visit. If he had gone with them when they first visited the subdivision and had registered them as his customers, he would have made a nice commission, several thousand dollars. Now he got nothing for the weeks of work he had put in for his customers.

Some developers are more cooperative and will allow agents to register customers after-the-fact or over the phone. But most want the agents to be there for that very first visit. Otherwise, they will not pay. Customers often do not realize this and think they are helping out by doing some of the preliminary work to save their agent from wasting his or her time. They have the best of intentions.

Do let your agents know when you want to see homes in new subdivisions or developments, and have them go with you on your first visit. In this way you can be sure that your agent will be rewarded for their hard work. Or, at least let the people at the model home know that you were sent there by your agent and that you expect the sellers to pay him or her the stated commission. Some will accept this and some will not. The surest thing is to have your agent with you.

If you have good agents, you know how hard they work for you. Please be sure that they do not get cut out of the deal at the last minute for the lack of a minor item like a registration form.

Younger Home Buyers Increase in Number and Rely More on the Internet

Demography is Destiny: Realtors® Meet the Future of Real Estate

WASHINGTON, May 18, 2007 - Younger home buyers are a bigger portion of the total home buying population than ever before, and they aren’t putting homeownership on hold for marriage or other life events. That’s what speakers at today’s Marketing Forum told Realtors® attending the National Association of Realtors® Midyear Legislative & Trade Meetings here through Saturday. U.S. Census Bureau data shows that homeownership among the under-30 crowd has been rising. In 1993, less than 15 percent of people younger than 25 owned their own home, but by 2006, one in every four people in this age group were homeowners. About a third of people ages 25 to 29 owned a home in 1993; by 2006, 42 percent were homeowners. “Housing is a good long-term investment, and the younger generation seems to understand that,” said NAR Senior Economist Lawrence Yun. “In addition to their interest in homeownership, many of today’s 20- and 30-somethings will have the means to invest in real estate, as well. Most of the record $56 billion of net worth in the United States is held by people 55 and over, and much of the record wealth accumulation among baby boomers is likely to be bequeathed to their sons and daughters.” Younger buyers’ proclivity for homeownership is influencing a number of real estate trends, Yun explained. They have contributed to the recent resurgence of many downtown areas, and are part of the reason that condo sales have increased as a percentage of all homes sold, from 6 percent of the total market a decade ago to 13 percent in 2006. Internet Crusade President Saul Klein described many of these up-and-coming home buyers as “Net Gen,” the first generation born and raised in the era of the Internet. Net Gen members, as Klein defines them, were born between 1977 and 1996. To reach and serve these Net Gen home buyers, Realtors® must be on the cutting edge of technology and stay on top of Internet developments. This generation’s reliance on the Web can already be seen as Internet resources become more important in the home search process – four out of five recent home buyers used the Internet last year to search for a home, according to the 2006 NAR Profile of Home Buyers and Sellers, compared with only 2 percent in 1995. For most young people, the Internet is a part of daily life, and as younger generations come of age, social networking sites like Second Life and MySpace may offer unique opportunities to establish and nurture client relationships. Realtors® can also learn from predictive marketing sites like Amazon.com, according to Klein. This popular online shopping site commonly sends users merchandise suggestions based on previous purchases. Following this model, Realtors® can send their online visitors listings of houses for sale that are similar to homes those potential customers had viewed on their Web site. “In the age of what some call Web 2.0, collaboration, communication and community will mean success for real estate professionals who embrace the change and failure for those who believe it is business as usual,” said Klein. “Realtors® must incorporate technology and the Internet into their marketing and client services to meet the needs of this increasingly influential rising generation.” The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries. Source: National Association of REALTORs (NAR)

Inflation Worries Push Average Mortgage Interest Rates Higher Says Freddie Mac

Today  Freddie Mac reported that nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.21% (6.16% in the southeast), up from 6.15% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.92%, up from 5.87% over last week.

Reports that the Federal Reserve is concerned about the risk that inflation will not moderate as they had expected help fuel this week's increase. However, a spokesman said that as long as core inflation continues to move downward and economic growth is moving at a slow pace, it is not very likely that we will see big movements in the average mortgage rates.

Housing market indicators remain weak and seem to forecast that a bottoming of the current downward trend is still months into the future. House sales are showing signs of stablizing and current inventories of homes are slowly being lowered. However, building permits are still not being isssued in as great a number as in the past few years and condo sales remain very soft in several markets. 

On the bright side, sales of existing homes in the first quarter of 2007 were up 2.4% over the same period in 2006.

Kind of a mish-mash of data with no clear good or bad indicators here. But interest rates are still historically quite low, all things considered.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

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.

Renting VS Owning

Most of you know that renting gives you a roof over your head, and not much more. You do not normally get to deduct your rent payments from your tax returns, nor do you get to take advantage of the appreciation that the property accrues over the years that you live there. Not to mention the fact that you cannot make any changes to the place where you live and you have to put up with periodic rent increases.

Our local Century 21 Mortgage representative, Makenzie Brown, dropped off an information sheet today that illustrates this point. You can download this document in PDF format by clicking on the following link: Download 07   Of course there are many lenders out there. The company that you choose to finance your purchase is completely yours! However, Makenzie might be a good person to start with. I am sure she will be very happy to answer any questions you might have. She can be reached at: 813-362-2273 or e-mailed at: Makenzie.Brown@mortgagefamily.com

If you wish to see a list of other lenders who service Zephyrhills, Pasco County, and beyond, you can visit my webpage at: www.jelwell.century21bnr.com and click on the menu button for Financing Providers. Friends and family members can also recommend lenders to you.

No matter which company you ultimately choose, owning a home is definitely a better investment than renting, and home ownership is a goal worth pursuing!

"60 Minute" Story on Reduced Service Real Estate Companies

Some of you may have seen a piece done by 60 Minutes on May 13, 2007. The type of business model that the subject company is using has been around for several years, here in Florida too. As a full-service REALTOR, I, of course, have some thoughts on what was said. So here they are for what they are worth.

• The 6% commission rate that was mentioned is not set in stone. In fact companies cannot legally agree on a common commission to charge their customers. Many companies have commissions that range from well below 6% to above that percentage, depending on the property and the sellers' circumstances, etc.
• The commission, whatever it may be, is split between the selling agent and his broker AND the buyer's agent and his broker. No one person gets it all. The agent that said she made, I think it was, $14,000 for just 4 hours work was hard to believe. Just 4 hours work? It takes that long just to prepare the comparative analysis well so that the correct price can be recommended. Also, if she was making that much money so quickly, why on earth would she leave that job to work more and make less? I am not sure if even Mother Teresa would have been that saintly.
• Yes, home prices have risen and as a consequence the commission percentage does bring in more money. However, gas has gone up, postage is going up again this week, computer equipment has gone up, MLS fees have risen consistently, lockboxes now cost me $110 a piece, telephone and internet rates are going up, etc. Every bit of the increased gross income from commissions is already spent before I get it. Perhaps in areas of the country where million dollar properties are the norm things are different, but not here.
• With many companies like this, the seller shows the home, not the listing agent. I find this to be a safety issue. I never ask my sellers to let strangers into their homes unaccompanied by a licensed agent. Perhaps their intentions really are to tour the home and buy it. However, in today's world it is possible that more sinister motives may also be involved. Also, what if the home is your vacation home or you have already moved to a new home, and thus are an out-of-town or out-of-state seller. Who will show your home if you are not around or have to drive a long distance to open it for prospective buyers and any hour of the day?
• For buyers it is important to receive the most complete disclosure possible of any problems with the home. The seller is supposed to tell you, but the agent is required by law to let you know if he or she is aware of any material defects, even if the home is being sold "as is". I doubt that someone sitting by a phone in an office will be able to assist you in this way.
• Who will tell you if the home is in a flood zone, has the correct zoning, is located in a community with deed restrictions & get you a copy of those restrictions? Will someone in a phone center know the neighborhood as well as an agent who lives and works there?
• With a full-service agent you know who you will always be dealing with. If you call my number, you get ME, not a different person every time who may, or may not, be familiar with your particular case.
• Will the agents be at inspections, showings, open houses, repair jobs, negotiations etc. in person? Or will the sign placement be the only time you see them?
• If, like Walmart, the objective is to make money by turning over as many properties as you can as quickly as you can, is there not a temptation to underprice the property to get it sold faster with a quicker turnaround? If a flat fee of $3,000 is paid no matter whether the home is sold for $250,000 or for $280,000 why put it at the higher price and hold on to it longer. Using a commission is an incentive to get the highest reasonable price for your home. If you do have to negotiate downward, the commission automatically goes down too. That does not happen with a fixed-fee.
• When problems occur, and they will, who will help you sort them out. A voice at the other end of the phone or a real person who will sit down with you to find solutions.
• I did not hear it mentioned, but sometimes companies with this business model require the sellers to use their title company and to purchase a home warranty. This can be a hidden cost that you will have to pay to make up for the lower commission or selling fee. This may or not be the case with the company that was interviewed for the story. You need to find out before you sign an agreement.
• If you list a home with a company will it be entered in the Multiple Listing Service (MLS)? And if it will, will other agents be offered a commission split that will encourage them to sell your home. I have see companies offer as little as $2 just to get it in the MLS. Perfectly legal and ethical, but do you think agents were fighting to make a $2 commission.
• Also keep in mind that not every buyer buys, nor does every seller sells. Yet the costs involved with these no-goes still has to be paid by the agent. You would be surprised at how many "Looky Lous" are out there just touring homes for the fun of it.
• Remember, you are dealing with a very valuable asset. For most of us, our homes are the biggest investment we have. My customers like dealing with a real professional IN PERSON. Selling beanie babies over the internet or the phone is fine. Selling or buying a home that way may not be the best way to go for you.

Using a service like those mentioned on 60 Minutes may be the way to go for you. Putting a cardboard sign in the front yard may do it too. I do believe that consumers have a right to know all of the facts before making a decision as serious as this. So ask a lot of questions before you use a reduced service provider. Are you willing to fill in all of the empty spaces? The Orlando Regional REALTOR Association has compiled a list of over 175 tasks a full-service REALTOR performs in order to do the best job of selling your home. You can view it by clicking here: Critical Role of a Full-Service REALTOR Are these jobs that you feel competent to do and will you have the time necessary to do them? There is a big difference between selling your home and selling it well!

I work very hard for my clients and consider many of them to be good friends. I still receive baby pictures and postcards from them regularly. They know that even after the sale closes I am here to help them in any way I can, and that they can reach me until midnight 7 days a week. I DO NOT make $14,000 for 4 hours work. Wish I did! But I am able to pay my bills and at the same time make my customers happy. To me, that's all that matters in the end.

So be a very informed consumer and know what you are getting and not getting. Look at the situation from all possible angles. Then make your decision based on all the facts and sally forth.

A Professional Home Inspection as a Part of Your Spring Cleaning Routine

The Spring Cleaning Alternative:
Home Inspections a Quick and Simple Alternative to Traditional Spring Cleaning

Spring is here and with it the infamous phrase, “Spring Cleaning,” but according to a recent survey conducted by Synovate Inc.,* less than 35 percent of consumers actually complete an annual spring cleaning.  This year, the American Society of Home Inspectors (ASHI) reminds homeowners that there’s an alternative to traditional spring cleaning – a home inspection.

“Despite all the hype surrounding spring cleaning, the simple fact is that a majority of home owners don’t want to spend the weekend cleaning out storage spaces and reorganizing their closets,” said Frank Lesh, 2007 ASHI President. “Still, spring is a good time for home owners to take stock in their home and identify potential maintenance issues.  There's nothing better than a home inspection to help identify minor issues before they become major repairs.”

Spring Home Inspection Tips

In addition to inspecting a home’s major systems, a typical spring home inspection should include an inspection of the roof to identify curling, shrinking, broken or missing shingles that may lead to costly leaks; an inspection of the perimeter of the home to look for signs of settling and for voids that will allow rain to enter through the home’s foundation; as well as a thorough inspection of the air conditioning system.

“While we don’t recommend that homeowners conduct inspections themselves due to safety precautions, there are several areas of the home that homeowners should pay close attention to,” added Lesh. 

Lesh encourages homeowners to visually inspect hose bibs (the threaded end of the outside water tap or faucet where a hose can be attached) for signs of frost damage, separated joints or splits in the pipes; tears and holes in window and door screens; broken, loose or clogged gutters; and cracking or peeling paint and caulking.

April is Home Inspection Month

While 62 percent of Americans say spring doesn’t last long enough to merit spring cleaning, according to the Synovate survey, the truth is, you only need one month – April.

“April is the perfect time for a routine maintenance home inspection and the perfect alternative to spring cleaning,” said Lesh.  “The buying and selling season is not yet in full swing, and it is just after the winter months when weather can be especially tough on a home.”

To assist homeowners who may not be familiar with a home inspection Lesh outlines a list of general questions and answers below:

What is a home inspection?
A home inspection is an objective visual examination of the physical structure and systems of a house, from the roof to the foundation.

Why do I need a home inspection if I’m not buying or selling my home?
A home inspection can identify problems in the making and the inspector can suggest preventative measures that might help you avoid costly future repairs.

Why can’t I do it myself?
Even the most experienced homeowner lacks the knowledge and expertise of a professional home inspector.  An inspector is familiar with the elements of home construction, proper installation, maintenance and home safety.  He or she knows how the home’s systems and components are intended to function together, as well as their expected life and why they fail.

How do I find a home inspector?
Ask friends or business acquaintances to recommend a home inspector or visit ASHI’s Web site www.ashi.org and use the advanced “Find an Inspector” tool.  By clicking on the new “Advanced Search” button homeowners can customize their search by language spoken, specialty and ancillary services provided. 

Can a house fail an inspection?
No.  A home inspector will not fail a house, but rather the inspector will provide a report describing its physical condition and indicate what components and systems may need major repair or replacement.

About the American Society of Home Inspectors

In its 31st year and with nearly 7,000 members, ASHI is the oldest and most widely recognized non-profit, professional organization of home inspectors in North America.  Its Standards of Practice and Code of Ethics are the industry standard.  ASHI’s mission is to meet the needs of its membership and promote excellence and exemplary practice within the profession.  For more information, visit: www.ashi.org or call 800-743-2744.

* Survey results were provided by Synovate Inc. A global leader in market intelligence, Synovate Inc.’s online Global Opinion Panel was used as the sample source for this study which included a sample size of 1,000 nationally representative U.S. interviews.  The study’s margin of error is +/- 3.1 %

Contact: Alissa Lew
Manning Selvage & Lee
312-861-5225

Source: American Society of Home Inspectors (ASHI)

PS from John Elwell - If you are thinking of selling your home and have concerns about its condition, it may be to your advantage to have an inspection done even before you list your home. Then you will know what to expect and can act proactively to repair items before they become an issue during negotiations. You can also learn more about home inspections by visiting my website at: www.jelwell.century21bnr.com

More Than $232 Billion to be Spent on Home Remodeling Projects in 2007

Americans To Spend More Than $232 Billion On Home Remodeling In 2007

May 9, 2007 - Americans will spend nearly $233 billion on home remodeling this year, according to the National Association of Home Builders’ (NAHB) 2007 industry forecast. That represents a 1.9 percent increase from the record $228 billion spent in 2006, according to estimates from the U.S. Census Bureau. NAHB announced this forecast today at a teleconference celebrating National Home Remodeling Month.
 
“Remodeling continues to show strength despite the housing slowdown,” said NAHB Remodelers Chairman Mike Nagel, CGR, CAPS, a home remodeler from Chicago. “With more than 120 million homes in the United States plus $11 trillion in owner equity, the demand for remodeling will be there now and in the future.” Remodeling currently accounts for more than 40 percent of the home construction industry by dollar volume.
 
“Quite simply, we’re adding more homes each year than we’re tearing down, and these will eventually require remodeling,” said NAHB Chief Economist David Seiders. “Compared to other components of the housing industry, remodeling remains one of the few areas to show growth, at least in nominal terms.”
 
Driving the remodeling market are the size and characteristics of the housing stock. With an average age of 33 years and rising, older homes require more remodeling – both in terms of upgrading features to compete with new construction as well as maintaining their physical quality. Though remodeling is somewhat cyclical with new construction, homeowners cannot put off a major repair like a leaky roof as they can discretionary upgrades, and that stabilizes the industry during slower housing markets.
 
ABOUT NAHB REMODELERS: NAHB Remodelers is America’s home for professional remodelers, representing the 14,000 remodeling industry members of the National Association of Home Builders (NAHB). Founded in 1982, the organization provides information, education and designation programs to improve the business and construction expertise of its members and to enhance the professional image of the industry.  Its membership incorporates 160 local councils in 43 states. Learn more about remodeling at www.nahb.org/remodel.

SOURCE: National Association of Home Builders

A Must See TV Show For Home Sellers

This is a television program that I love watching. It is called "BUY ME" and is presented at various times on the Home & Garden Television (HGTV) cable channel. Bright House Channel 57 here in Pasco County, Florida. I suppose I enjoy it so much because I am a REALTOR, and what happens on this show validates what I try to get my sellers to see. They often have unrealistic goals for themselves and unrealistic expectations as to what buyers will accept.

On this show, people are trying to sell their homes for various reasons, some are moving out of the area, some want to downsize due to retirement, and others want a bigger home to fit their expanding families. More often than not, the sellers disregard the advice of their real estate professional and then the "fun" begins. What seems a bit strange to me is that on several occassions, the real estate agents were the mothers of the sellers! Never a good idea to ignore Mom!

As you watch it you will see sellers price their homes WAY over the market value, even when the real estate agent shows them the proof that the price is too high and that similar homes down the street are selling for less. You will frequently see sellers dismiss the obvious flaws in their homes and refuse to fix or clean up in an attempt to make their homes more attractive. For some reason they seem to think that huge cracks in foundations, electrical wires hanging from the ceilings, leaking roofs, flooded basements, rotted wood, etc are pluses instead of negatives???? Then when no one visits the home, or when the visitors that do come are unimpressed and run for the doors, they turn on their agents and heap all the blame on them. Even when they decide to sell the home themselves with poor results, they still unfairly blame the real estate agents!

In many cases, at the end of the show the home has either sold for just about what the REALTOR had first said the price should be, or the home remains unsold because the sellers stubbornly refuse to accept reality. And even when the home does sell and the sellers are patting themselves on the back for getting "their price", they forget that it usually took them many many months to sell their home, and in the meantime they have been paying insurance, taxes, and mortgage payments. So in reality they may have even lost money. Their profits might have been higher if they had listed at a lower price as their agent first recommended and had sold their home quickly. Something to keep in mind.

Even in our current "buyers market" a home will sell if it is priced correctly. That is the most important point to remember. A broken down shack will sell if the price is appropriate for its condition. A mansion in perfect condition will not sell if it is priced above similar homes in the neighborhood that are selling for less. That is just reality. If the sellers could put themselves in the buyers' shoes, they would do the same thing. That is, buy the lower priced but equal  home. However, too many think that theirs is "special" and thus should command a higher price. I am sure it is special to them, but what makes it special may make it less attractive to some buyers.

This show is shot in Quebec, Canada. You will notice that the agents there have numerous open houses. Here we do have open houses or caravans for other real estate agents. However, as a rule, open houses for customers do not seem to work here and are no longer the norm, probably due to the internet's influence and accessibility. I have done them, but you are lucky if 1 or 2 window shoppers stop by. Other than this difference, most of the other things that happen on the show are pretty true-to-life.

In any case, I do suggest you try to catch this show when you can. If you are selling your home, see if you can see yourselves in any of the situations. Are you doing all you can to sell your home for the best reasonable price, or are you shooting yourselves in the foot? Hopefully you can learn to sidestep a few of the follies of the sellers on this show. You will note that those sellers who do trust their agents and follow their recommendations are more likely to have a positive and less stressful conclusion to their sales.

To see a schedule of this program's showings you can visit the HGTV site at the following link:  http://www.hgtv.com/hgtv/shows_hbyme

You can also visit my webpage at:  www.jelwell.century21bnr.com and click on the TV menu button to see a list of other shows that can help both sellers and buyers achieve their real estate goals.

Low Inflation Keeps Interest Rates Down, Says Freddie Mac on 5/10/07

Today  Freddie Mac reported that nationally the average mortgage interest rate for 30 year fixed-rate was 6.15% (6.10% in the Southeast), down from 6.16% a week ago. The average 15 year fixed-rate mortgage interest was 5.87%, unchanged from last week! A year ago the rates were 6.58% and 6.17% respectively.

There was low employment growth in April, and the figures for February and March job growth were revised downward. These factors worked together to calm fears of impending inflationary trends for the near future. As a result, interest rates remained very steady.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

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.

Where to Find Cheap Gas in Zephyrhills, Florida, and the United States

This is a little off the topic of this blog, but as a real estate agent I put a lot of miles on my car and a lot of gas in its tank. Many people who are house hunting do the same. If you would like to find where the cheapest gas is in your area, you can click on the following link: http://www.motortrend.com/gas_prices

You will be taken to the Motor Trend website where all you have to do is enter your zip code, and a list of gasoline vendors will appear with the prices that they are are charging. Hope this helps you out.

Florida's Existing Home Sales Soft, Median Price Edges Down in March 2007

In a post last week I offered information from the National Association of REALTORs (NAR) about the national housing market over the past few months. Here is data presented by the Florida Association of REALTORs (FAR) that deals specifically with Florida. You can click on the links at the end to see the actual charts for each metropolitan area around the state. Overall, prices have fallen from a year ago.

Florida's Existing Home Sales Soft, Median Price Edges Down in March 2007

ORLANDO, Fla., April 24, 2007 – Sales of existing homes in Florida remained at a sustainable pace in March, with buyers continuing to see favorable mortgage rates and a range of housing options available across the state, according to the Florida Association of Realtors® (FAR). Statewide, sales of single-family existing homes totaled 13,469 last month compared to 18,751 homes sold in March 2006 for a 28 percent decrease.

Florida’s median sales price for existing single-family homes in March was $236,000; a year ago, it was $244,600 for a 4 percent decrease. The median is the midpoint; half the homes sold for more, half for less. In March 2002, the statewide median sales price for single-family homes was $134,100, for an increase of 75.9 percent over the five-year-period, according to FAR records.

In February 2007, the national median sales price for existing single-family homes was $211,100, down 1.5 percent from the previous year, according to the National Association of Realtors® (NAR). In California, the statewide median resales price was $564,700 in February; in Massachusetts, it was $325,000; in Maryland, it was $308,275; and in New York, it was $265,000.

Rising foreclosures are impacting inventories in some markets, according to housing industry analysts, who predict that tighter lending standards and the fallout from subprime loans will slow the housing sector’s recovery. NAR Chief Economist David Lereah noted that most local markets are demonstrating healthy economic activity and thus can absorb the increases in foreclosures.

In fact, 2007 is expected to be the fourth highest year on record for existing-home sales, according to NAR’s latest housing market outlook. “Housing remains a great long-term investment,” Lereah said. “As home sales moderate, overall home prices will be essentially flat this year. The good news is that inventories remain well below the levels experienced during the last housing downturn in the early 1990s, and supplies are close to balance in many areas.”

Sales of existing condominiums in Florida also decreased last month, with a total of 4,236 condos sold statewide compared to 6,193 in March 2006 for a 32 percent decline, according to FAR. The statewide median sales price for condos last month was $208,800, up 2 percent from March 2006’s condo median price of $203,900. NAR reported the national median existing condo price was $225,400 in February 2007.

Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.13 percent, a drop from the average rate of 6.32 percent in March 2006. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s larger markets, the West Palm Beach-Boca Raton Metropolitan Statistical Area (MSA) reported 725 existing homes sold last month compared to 929 homes sold a year ago for a 22 percent decrease. The market's median sales price for homes was $375,100; it was $393,700 in March 2006 for a 5 percent decrease. A total of 650 existing condos changed hands in the MSA last month, down 8 percent from the 706 condos sold the previous year. The existing condo median sales price in March was $211,800; a year ago, it was $224,600 for a 6 percent decrease.

“The wide selection and diversity of housing choices in the Palm Beach area is a boon for buyers,” says John Mike, president-elect of the Realtors Association of the Palm Beaches and a Realtor sales associate with Prudential Florida WCI Inc. in West Palm Beach. “Historically, this area is – and continues to be – an appealing getaway destination for many people, especially in the winter.”

Among the state’s smaller markets, the Tallahassee MSA reported a total of 360 homes sold in March compared to 499 homes a year ago for a 28 percent decrease. The existing home median sales price was $188,800; a year ago, it was $173,500 for a 9 percent increase. A total of 29 existing condos sold in the MSA last month compared to 30 condos the previous March for a 3 percent decline. The market’s existing condo median price was $150,000; a year ago, it was $161,800 for a decrease of 7 percent.

Robby Turner, president of the Tallahassee Board of Realtors and broker-owner of Robby Turner Realty in Tallahassee, says that area Realtors feel they’re dealing with a more normalized market. “Interest rates still are favorable to buyers, and we’re starting to see buyers return to take advantage of the many housing options open to them. Our two universities, a community college and the state government here in Tallahassee are a stabilizing factor for our economy and for the local housing market.”

Two charts showing statistics for Florida and its 20 MSAs are attached. One chart compares the volume of existing, single-family home sales and median sales prices; the other compares the volume of existing, condominium sales and median sales price in March 2007 to March 2006 based on Realtor transactions.

Single-Family Home Sales: Download march2007_florida_sales

Condominium Sales: Download mar2007_condo_data.pdf

The Florida Association of Realtors®, the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its 170,000 members in 68 boards/associations.

© 2007 FLORIDA ASSOCIATION OF REALTORS®

Housing Forecast Changed Slightly Due to Impact From Tighter Lending - NAR

Housing Forecast Changed Slightly Due to Impact From Tighter Lending

WASHINGTON, May 09, 2007 - 
Housing activity this year will be somewhat lower than in earlier forecasts, with clearer analysis of the effects of stricter lending standards and a decline in subprime mortgage origination, according to the latest projections by the National Association of Realtors®.

Lawrence Yun, NAR senior economist, said one benefit for the market is the disappearance of speculative behavior, which contributed to abnormal price growth.  “Home buyers today are purchasing for the long-term, generally with a realistic expectation of modest gains over time,” Yun said. 

“Housing first and foremost is shelter.  Second, it’s a long-term investment that slowly builds the greatest amount of wealth for most families.  It’s good that we’re getting beyond the tendency of some buyers to view housing as a temporary asset to accumulate short-term wealth, which is not to be expected in a normal market.”

Existing-home sales are likely to total 6.29 million this year and 6.49 million in 2008, compared with 6.48 million last year.  New-home sales are projected at 864,000 in 2007 and 936,000 next year, lower than the 1.05 million in 2006.  Housing starts should total 1.46 million units this year and 1.52 million in 2008, down from 1.80 million last year.

“If it weren’t for a favorable economic backdrop, housing would probably have a hard landing.  As it is, we see this as a soft landing with home sales rising gradually in the second half of the year and prices recovering a bit later,” Yun said.

The 30-year fixed-rate mortgage should rise slowly to 6.5 percent by the fourth quarter.  Last week, Freddie Mac reported the 30-year rate was 6.16 percent.

The national median existing-home price is forecast to slip 1.0 percent to $219,800 this year, and then rise 1.4 percent in 2008.  The median new-home price is expected to be essentially unchanged at $246,400 in 2007, and then rise 2.2 percent next year.

The unemployment rate will probably average 4.6 percent this year, unchanged from 2006.  Inflation, as measured by the Consumer Price Index, is estimated to decline to 2.5 percent in 2007, down from 3.2 percent last year, while growth in the U.S. gross domestic product is projected at 2.1 percent in 2007, lower than the 3.3 percent growth last year.  Inflation-adjusted disposable personal income should rise 2.6 percent in 2007, the same as last year.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

Copyright National Association of REALTORS®, Reprinted from REALTOR.org with permission.

Federal Reserve Decides to Leave Interest Rates for Federal Funds Unchanged at 5.25%

Release Date: May 9, 2007

For immediate release

The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent.

Economic growth slowed in the first part of this year and the adjustment in the housing sector is ongoing. Nevertheless, the economy seems likely to expand at a moderate pace over coming quarters.

Core inflation remains somewhat elevated. Although inflation pressures seem likely to moderate over time, the high level of resource utilization has the potential to sustain those pressures.

In these circumstances, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected. Future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Cathy E. Minehan; Frederic S. Mishkin; Michael H. Moskow; William Poole; and Kevin M. Warsh

Citizens Property Insurance Now Free to Expand and Directly Compete With Other Companies

During the recent session of the Florida Legislature the role of Citizens Property Insurance was expanded and rates were frozen until the year 2009. It is hoped that since now Citizens can compete directly with other insurance companies and will no longer be the "insurer of last resort", other companies will be encouraged to lower their premiums rather than lose customers. The downside of all of this is that Citizens will be able to levy surcharges on property and automobile insurance policies that people already have with other companies if Citizens should run a deficit at some future point in time. This has already happened in the past when we had an extra fee added to our regular premiums to cover the cost overruns of Citizens.

Time will tell if this will turn out well. It would be nice if we could get through a few more seasons without a major hurricane so that the company can get on more solid financial ground before having to pay out the vast sums that a direct hit can require. With insurance premiums climbing ever higher, Floridians are willing to give any reasonable plan a try. Let's hope that one of the times the people in Tallahassee get it right.

Be Careful Not To Violate Fair Housing Laws. If You Do It Will Cost You!

Back in the 1980's I had a house with a studio apartment attached to it that I rented out. I was approached by a neighbor who let me know in "no uncertain terms" that he did not want me to rent to a specific group of persons. I, of course, ignored his request. However, this type of discrimination still occurs from time-to-time and is just as illegal as it was then. If you think that it is no big deal, please read the following press release from The US Department of Housing and Urban Development (HUD). They do not just slap you on the hand if you are found guilty of discrimination when it pertains to housing. Though the following deals with a rental situation, the fair housing laws also apply when selling a home.

HUD CHARGES IDAHO LANDLORD WITH VIOLATING THE FAIR HOUSING ACT
Owner accused of refusing to rent to a mother because of her son's disability

WASHINGTON - The U.S. Department of Housing and Urban Development announced today that it has charged Joy Anderson, the owner of a three bedroom single-family home in Twin Falls, Idaho, with violating the Fair Housing Act by allegedly refusing to rent a house to a mother and her children because of her son's disability.

The charge alleges that Anderson refused to allow the Complainant and her 3 minor children, ages 14, 5 and 4, to rent the property because she believed the woman's son, who has Down Syndrome, would damage it.

The Complainant submitted an application to rent the house. She later called Anderson about the property, and mentioned that she was pleased that the house had a fenced yard because her 4-year-old son has Down Syndrome. Anderson allegedly replied that she had a brother with the same disability, and that he used to stuff things down the toilet and cause problems, and she did not want that at her property. The Complainant explained that her son was not destructive; however, the owner said she wanted to meet the child before making her decision.

Throughout the meeting, the child's developmental therapist was present and told Anderson that the child does not have issues with bad behavior. She explained that he needs therapy because he is developmentally delayed. Anderson allegedly continued to talk about her brother's problems and barely looked at the child and never spoke to him.

Anderson told the Complainant she would get back to her regarding her decision but she never did. A few days after their meeting, a young, unmarried couple applied to rent the house, and was accepted the same day.

"Housing discrimination is always unlawful, but when it is against a child with a disability it is particularly troubling," said Kim Kendrick HUD's Assistant Secretary for Fair Housing and Equal Opportunity. This family should not have been denied access to a safe and affordable home because of the child's disability."

Housing discrimination charges heard before an administrative law judge carry a maximum civil penalty of $16,000 for a first offense, in addition to actual damages for each complainant, injunctive or other equitable relief, and attorney's fees. Sanctions can be more severe if a respondent has a history of housing discrimination. Parties also have the right to elect to have their cases heard in federal district court

FHEO and its partners in the Fair Housing Assistance Program investigate approximately 10,300 housing discrimination complaints annually. People who believe they are the victims of housing discrimination should contact HUD at (800) 669-9777 (voice), (800) 927-9275 (TTY). Additional information is available at www.hud.gov/fairhousing.

Florida Legislature Says You Can Be Buried With Your Cat, But Does Nothing To Reform Property Taxes

So you want to be buried with your cat Fluffy? Well, if the Florida legislature has its way, you will soon have that opportunity. However, as the regular legislative session ends, they did nothing to relieve the property tax woes of Floridians.

The Florida Senate wanted to rollback taxes to 2006 levels, provide for portability of Save Our Home discounts, double the Homestead Exemption for first-time home buyers, and create a $25,000 exemption for intangible property.

The Florida House wanted to rollback taxes to 2001 levels and replace property taxes with a 2.5% addition to the sales tax. This last item would require a constitutional amendment.

Supposedly there was some last minute agreement on cutting property taxes by $20 - $25 billion over 5 years, killing the sales tax increase, and trying to create some form of Save Our Home portability. But nothing ended up in new legislation.

A special session has already been called for June 12 to 22 to see if the differences can be worked out between the House and Senate plans. Let's hope they do not go for a crowd pleasing quick fix that ends up being a disaster down the road. So far the special session that took place back in January 2007 to tackle the high costs of homeowners insurance does not seem to be having much effect.

But just remember, if you have a heart attack and die when your tax bill arrives, you can now have Fluffy the cat buried at your side thanks to your helpful Florida government. Meow!!

Protect Your Home While You Travel, Says Florida Association of Realtors®

ORLANDO, Fla., March 8, 2007 -- Is spring fever prompting you to head for the beaches or some other vacation getaway? If you’re planning to travel during the spring holidays this year, you can help protect your home while you’re away by following these tips from the Florida Association of Realtors® (FAR):

• Make it look like you're home. Install timers on interior lights so they turn on and off periodically. Many timers cost less than $25. Some more costly products are capable of varying the time that your lights turn on. Also consider leaving your radio on and tuned to an all-news or talk show station.

• Disconnect and remove all exterior electrical decorations before you leave to reduce the chance of fire and theft. Install exterior lights that are controlled by motion sensors to make your home a more difficult target for prowlers.

• Discontinue your newspaper delivery temporarily. Be sure to give several days notice so your order can be processed in time.

• Ask someone to collect any free papers or sales materials left near your house. When fliers and papers are left on a driveway day after day, it's a sure sign that no one is home.

• Have the post office hold your mail. This can be initiated by calling the U.S. Postal Service at 1-800-275-8777 and listening to the option for putting a vacation hold on your mail. You can make arrangements up to 30 days in advance of your vacation; at minimum, two days will be needed to process your request. Or you can go to the Postal Service Web site at https://dunsapp.usps.gov/HoldMail.jsp and follow the instructions.

• Ask a friend or neighbor to park a car in your driveway occasionally and keep an eye on your place. If your neighborhood is patrolled by police, give the police your schedule so they’ll watch for suspicious activity; if there’s a crime-watch program, notify the person in charge of your travel plans.

• If you have an alarm that is monitored, tell the alarm company you will be away. If possible, provide a phone number where you can be reached.

• If you’re going to be away for two weeks or more, have a friend or lawn service mow the lawn.

Before traveling for spring break, take these simple steps to help protect your property.

The Florida Association of Realtors, the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its 170,000 members in 68 local boards/associations.

© 2007 FLORIDA ASSOCIATION OF REALTORS®

Passage of FHA Reform Bill Would Help Homeowners and Homebuyers--NAR

Passage of FHA Reform Bill Would Help Homeowners and Homebuyers--NAR

WASHINGTON, May 03, 2007 - The National Association of REALTORs (NAR) has supported FHA modernization legislation in H.R. 1852, the Expanding American Homeownership Act of 2007, that would increase loan limits, eliminate the statutory 3 percent minimum cash down payment, and allow FHA flexibility to provide risk-based pricing. NAR also supports the continued availability of FHA loss mitigation programs. “NAR appreciates the efforts of House Financial Services Committee Chairman Barney Frank (D-Mass.) and Subcommittee on Housing and Community Opportunity Chairwoman Maxine Waters (D-Calif.) for their leadership in protecting the interest of America’s homeowners or potential homeowners,” said Pat V. Combs, NAR president.  “As some homeowners are faced with adjustable subprime loans resetting at levels that they cannot afford and cooling real estate markets, a reformed FHA would be positioned to offer borrowers a safer mortgage alternative and help bring stability to local markets and local economies,” Combs said. “FHA can once again be a leader in providing safe loan products and preventing foreclosures by authorizing lenders to assist borrowers who are in default. This ability will make a substantial difference for many families that may otherwise face foreclosure,” she said. FHA’s loss mitigation program includes mortgage modifications, allowing borrowers to change the terms of their mortgage so that they can afford to stay in their home. The program also offers “partial claim” programs where FHA lends the borrower money to cure the loan default. This no-interest loan is not due until the property is sold or paid off. “In 2004 alone, more than 78,000 people were able to retain their home through FHA’s loss mitigation program, and two years later nearly 90 percent of these families are still in their home. That’s what I’d call really making a difference,” Combs said. In addition, NAR believes that increasing FHA mortgage loan limits will help first-time homebuyers, minority buyers, and others who cannot qualify for conventional mortgages. Increasing loan limits will also help people living in high cost areas because the current low FHA limits make FHA unusable. Eliminating the 3 percent minimum down payment will also have positive results for many homebuyers. Combs noted, “The universal and consistent availability of FHA loan products is the principal hallmark that has made mortgage insurance available to individuals regardless of their racial, ethnic or social characteristics during periods of prosperity and economic depression. The FHA program makes it possible for higher risk, yet credit-worthy borrowers to get prime financing.” NAR thanked the Financial Services committee and expressed agreement that a strong and viable FHA is an important component to a strong and vital housing market. The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

Copyright National Association of REALTORS®, Reprinted from REALTOR.org with permission.

Pending Home Sales Indicate Near-Term Softness - NAR

Pending Home Sales Indicate Near-Term Softness

WASHINGTON, May 01, 2007 - Pending home sales, a forward-looking indicator, show sales closed in April are likely to remain soft, with some drag possible in May as well, according to the National Association of Realtors®. The Pending Home Sales Index*, based on contracts signed in March, registered 104.3 down 10.5 percent from March 2006 when it was 116.5, and is 4.9 percent below an upwardly revised February index of 109.7.  The index is the lowest since a reading of 103.5 in March 2003, coincidentally, the middle of the housing boom. David Lereah, NAR's chief economist, expected the decline.  Although the weather improved in March, we're starting to see the effects of a decline in subprime lending and tighter lending standards, he said.  Home sales will be relatively sluggish in the second quarter, but a modest uptrend should resume during the second half of this year.  We're fortunate to have a positive economic backdrop now with job growth and low mortgage interest rates to provide opportunities for buyers who've been on the sidelines or were unable to get into the market during the boom, especially with inventories favoring buyers. The index is a leading indicator for the housing sector, based on pending sales of existing homes.  A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. An index of 100 is equal to the average level of contract activity during 2001, the first year to be examined as well as the first of five consecutive record years for existing-home sales.  There is a closer relationship between annual changes in the index and actual market performance than with month-to-month comparisons.  As the relatively new index matures and seasonal adjustment factors are refined, the month-to-month comparisons will become more meaningful over time. The PHSI in the West rose 1.6 percent in March to 104.0 but was 8.6 percent below a year ago.  The index in the Northeast fell 4.9 percent from February to 94.2 and was 14.0 percent below March 2006.  The index in the Midwest dropped 6.9 percent in March to 95.9 and was 9.5 percent lower than a year earlier.  In the South, the index fell 7.1 percent from February to 115.2 and was 10.6 percent below March 2006. The National Association of Realtors®, The Voice for Real Estate, is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.                                                   # # # * The Pending Home Sales Index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales.  In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months.  There is a closer parallel between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than there is with month-to-month comparisons. The forecast will be revised May 8, and existing-home sales for April will be released May 25.  The next Pending Home Sales Index will be on June 1. Copyright National Association of REALTORS®, Reprinted from REALTOR.org with permission.

No Change At All In Freddie Mac's Average Interest Rates as of May3, 2007

Today  Freddie Mac reported that nationally the average mortgage interest rates for 30 year fixed-rate and 15 year fixed-rate mortgages did not change at all from the average rates of last week! This is becoming a trend it seems. Average 30 year mortgage interest stood at 6.16% and 15 year mortgage interest was 5.87%. Home buyers should be happy about that.

Reports concerning the Gross Domestic Product (GDP) for the first quarter of 2007 were weaker than had been predicted, and the housing market reduced it a full percentage point further. Consumer spending and price increases were minimal in March. All of these factors contributed to the lack of movement in the interest rates, according to a Freddie Mac spokesperson.

Refinancing has been tapering off as of December 2006, and the majority of the people refinancing their homes are doing so in an attempt to pull out some of the equity that has been accruing since they made their purchases.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

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.

May 2007 Newsletter Ready

I have just prepared my monthly newsletter for May 2007. It has lots of useful information for sellers and buyers. There are two versions, one for buyers and another for sellers.

If you would like to download the Buyer Editions click on the following link: Download May07Newsletter-Buyer.PDF

If you wish to see the Sellers Edition, click on this link: Download May07Newsletter-Sellers.PDF

If you would like me to e-mail you the newsletters when they come out, just send me a message to that effect to: jelwell1@tampabay.rr.com and I will add you to my mailing list.

Florida Legislative Session to End With No Property Tax Reforms

It is being reported today that the current session of the Florida Legislature will end with no property tax reform at all. The Senate and the House were too far apart and the leadership felt there was no way to find a compromise during the waning hours of this regular session. There will supposedly be a special session in the future where the center of attention will be property tax reform.

This is a tricky issue, and if we go down certain roads, we could pay dearly in the future. For example, too great a dependence on sales tax revenues could come back to haunt us when there is a slowdown of the economy and needed funds evaporate. I only hope that the politicians give considerable thought to their solutions and do not just make a jump for the quickest and showiest fix. Fireworks are beautiful and amazing, for about a minute. After that everything goes dark and cold. Let's hope any reforms will have long-lasting positive effects that will not need to be undone in the future. Let's hope our leaders think long range and not for immediate gratification.

Hurricane Season Will Soon Be Here In Florida! Do Not Wait To Get Insurance!

Here in Florida we will soon be entering our hurricane season. Typically this runs from June 1st to November 30th of each year. Though the experts attempt to predict  how many storms will hit us and how severe they will be, there is no way of being 100% sure. Now is the time to be thinking about getting insurance and/or reviewing the policy you currently have to ensure that you have adequate coverage.

Be aware that once a hurricane warning or watch is declared for any part of the state, the insurance companies will stop wri