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July 31, 2007

Deed Restrictions: Heaven Sent or the Devil's Playground?

DevilI am often asked what deed restrictions are. Some parts of the country have very little experience with this type of issue, while others who have lived in subdivisions, small and large, are all too familiar with them.

Deed restrictions are usually set up by the developer and/or the Home Owners Association (HOA) and limit what you can and cannot do within a community where a property is located. In the sad days of discrimination, deed restrictions were used to keep certain races, nationalities, families, or religions out of an area. Happily those days are long gone. Though I am told that some very old deeds may still have such rules in them. However, these can no longer be enforced since they would violate Fair Housing Law.

Today the main goal of deed restrictions is to maintain the neighborhood in such a way that its property values are kept at the highest levels possible. Have you ever driven down a street in an area of nice homes with no deed restrictions and all of a sudden, there is a bright purple house next to the others? How about a home with an unmown lawn and a couple of vehicles up on blocks in the side yard. What does that do to the values of the well-maintained homes on either side? I can tell you that it does not make them go up. That is what deed restrictions try to prevent.

Some subdivisions have very minor restrictions, such as: no livestock can be kept on the property, no derelict vehicles to be parked on the property, no more than X number of pets, lawns must be mowed regularly, etc.

Some others are much stricter. Rules in these subdivisons can include: all mailboxes must be the HOA approved model, no vehicles can be parked on the driveway at night, all exterior house paint colors must be approved by the HOA, plants in your gardens must be from a specified list of approved varieties, no exterior structures (including swingsets or jungle gyms) can be placed on the property, no fences, no clotheslines in public view, only approved grass can be planted in the lawns, and the always present catch all, no activities that could be considered to be a nuisance in nature.

Some subdivisions are very strict about enforcing their restrictions and have roving residents who will report violations. I must admit that some of these enforcers seem to get a certain amount of pleasure from ferreting out violations. Park your boat on the driveway overnight and you can expect a warning note on your door the next day. Others are more lax about such things. As long as it does not annoy the neighbors, not much happens. The subdivisions with the more expensive homes tend to be more fastidious about enforcement.

As a buyer, it is advisable that you get a copy of the deed restrictions for any neighborhood that you are thinking of purchasing a home in. Often your agent can get you a copy from the HOA or they can be obtained from the county offices where they were probably recorded. If they seem reasonable to you, then full steam ahead. But if you think they wil be too onerous, you may want to look elsewhere. Otherwise you may be the subdivision's pariah, forever arguing with the HOA over whether your red hibiscus should stay even though only the yellow hibiscus is on the approved list.

In a perfect world all of us would try to do things in such a way that we would not hurt our neighbors in any way, and we would expect them to return the favor. Unfortunately it does not always work that way. I guess that is why there are laws, rules, and deed restrictions.

So be an informed buyer and ask about the deed restrictions for any subdivisions that you are house hunting in. If you want to be to live in a "deed restriction free" zone, there are plenty of those around too. There you will just need to follow local ordinances or zoning laws. The choice is all yours. The important thing is that you find a property and location where you can enjoy living in your new home.

For more information or questions about this topic please call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com 

Florida's Citizens Property Insurance Company Offers a Brochure to Help You Protect Your Home and Possibly Reduce Premiums

TornadohousebedCitizens Property Insurance Company has prepared a brochure that contains information that may be helpful to Florida residents. Citizens is the largest insurer of homes in our state and recent legislation has expanded its market sector greatly. Older homes and many mobile homes have no other alternative than to get their coverage from Citizens.

To download a copy of their brochure in PDF format, click on the following link: Download MitigationBrochure.pdf

Almost daily I hear of conventional insurance companies again asking for double digit increases in their premiums. I wonder what ever became of the insurance reforms of January 2007 that were supposed to reduce our costs. Looks like the companies are using the new laws to make more money for themselves rather than save us some dough. They are screaming about their hurrican liabilities when no storm is even on the horizon and we have not been battered in several years. Oh well, did we really expect the government to fix the problem??? Does not give me much faith that the property tax reform will fare any better. Time will tell. Am not sure I want to hear that story.


July 30, 2007

Foreclosures Bad For Owners and Bad For the Neighbors Too!


New Woodstock Institute Research Illustrates Devastating Impact Foreclosures Have on Neighborhood Property Values

A new report by Woodstock Institute, There Goes the Neighborhood: The Effect of Single-Family Mortgage Foreclosures on Property Values, shows that foreclosures have a significant negative effect on neighborhood property values. Although foreclosures have long been considered a problem associated with FHA loan programs, recent research has shown that the explosion in foreclosures that began in the 1990's was primarily driven by the growth of high-risk, conventional subprimelending.

Any debate about the costs and benefits of subprime lending needs to include consideration of the impact that failed subprime loans have not just on the individual homeowner or lender, but on the community as a whole,” says Geoff Smith, Project Director at Woodstock Institute and co-author of the report.

The report uses a unique database that combines data on the location of foreclosures with data on neighborhood and property characteristics for more than 9,600 single-family properties sold in the city of Chicago to measure that impact that nearby foreclosures have on property values. Even after controlling for more than 40 characteristics of propertiesand their respective neighborhoods, the study finds that foreclosures of conventional, single-family loans have a significant impact on nearby property values. The report’s key findings show:

1. Each foreclosure of a conventional mortgage within an eighth of a mile (essentially a city block) of a single-family home results a decline in property value between 0.9 and 1.136 percent. Less conservative estimates also show that each conventional foreclosure between an eighth and quarter of a mile leads to an additional 0.325 percent decline in single-family property values.

2. For the years examined, this indicates an estimated cumulative city-wide loss in property value due to conventional foreclosures between $598 million and $1.39 billion. For the 3,750 conventional foreclosures in Chicago during this period, this is an average of between $159,000 and $371,000 cumulative lost property value per foreclosure. These estimates include only the effects of foreclosures on single-family property values and do not include the effects on the values of condominiums, larger multifamily rental properties, and commercial buildings.

3. When isolating properties in low- and moderate-income neighborhoods, nearby foreclosures have an even larger negative effect on single-family property values. Estimates show property values declining by between 1.44 and 1.8 percent for each conventional foreclosure within one-eighth of a mile of a single-family property in a low- or moderate-income community. Given an average selling price of $111,002 for properties in low- and moderate-income census tracts, this amounts to an average loss of between $1,598 and $1,998 per foreclosure for every single-family property sold in a low- or moderate-income tract.

4. Policy makers need to consider the total costs of irresponsible subprime lending and the strong negative impact that these risky loans have on the economic, social, and emotional well being of neighborhoods and cities devastated by skyrocketing foreclosures,” says Smith.

Note from John Elwell: It is no surprise that when a home goes into foreclosure the neighboring properties also suffer. Though this study took place in Chicago, property values fall around the country for the very same reason. The former owner no longer cares about the home and has possibly even damaged it out of revenge prior to vacating. I have seen drains plugged and the water left running in several homes. The banks just see these homes as financial liabilities. Lending institutions make poor landlords. They are not set up to handle it. Who will mow the lawn, make repairs, keep the power on? Add to that the fact that a vacant house is a perfect target for vandalism, and you have an eyesore in the making. In a down market and with many banks holding out unreasonable hopes of recovering all of their investment, the home could linger on the market for months or longer! What will potential buyers think when they drive down your street and see these vacant and ill-maintained homes? Will they want to live next to such a property? So when you hear that foreclosures are increasing, keep in mind that you may feel their secondary effects by way of a lower value for your own home.

Source: Press Release from the Woodstock Institute


July 29, 2007

FLASH.ORG Helps Florida Residents and Others Prepare for Hurricanes, Tornadoes, and Other Natural Disasters

HurricaneI just found this site on the internet. I think it could be useful for homeowners, especially in Florida and the south where our weather can sometimes be severe.

The site is called Flash.org (Federal Alliance for Safe Homes) and it is a non-profit organization that has the goal of helping residents be prepared for natural disasters that can occur. They cover such topics as: hurricanes, tornadoes, thunderstorms, floods, power outages, earthquakes, tsunamis, etc. Now, here in Florida earthquakes are not a big worry. However, when a hurricane "comes a calling", everyone takes note.

What I like about this site is that they not only have written instructions that you can print up, they also have videos online that you can view to see how best to protect your home and family should the situation call for it. For example, just a click of your mouse will show you how to install plywood sheets to protect your windows from high winds.

Now is the time to think about weather related issues. Do not wait until the weathermen start warning us 3 days in advance. By that time the plywood, batteries, drinking water, and other items will be disappearing from the stores' shelves. So take a moment to visit this site and see if you can learn a new trick or two. I sure did.

To visit Flash.Org  CLICK HERE

OFFICE OF INSURANCE REGULATION DENIES FLORIDA FARM BUREAU’S REQUEST FOR RATE INCREASE

StopsignlargeTALLAHASSEE (07/19/2007) - Florida Insurance Commissioner Kevin McCarty announced today that the Office of Insurance Regulation is denying Florida Farm Bureau's request to raise its rates by 30.3%. After receiving testimony from the company in a public hearing last week, and reviewing all previously submitted data seeking to justify the increase, the Office Florida Farm Bureau a Notice of Intent to disapprove the increase.

"What we discovered from the testimony at the hearing was that the company made a business decision to reinvest $6 million in added reinsurance rather than passing the savings on to their policyholders," McCarty said. Reinsurance is the insurance that companies buy to cover extreme losses.

"The intent of the law that came out of the January special legislative session was to give companies less expensive reinsurance from the state and to pass on that savings to their policyholders," McCarty added, "and Florida Farm Bureau's actions are clearly contrary to the intent of that law."

Another aspect of the special session legislation was a mandate that companies file with the Office their expected savings from getting less expensive reinsurance from the state. These presumed savings filings were submitted in March and since then, companies have negotiated reinsurance contracts for the 2007 hurricane season. They are required to make a second filing by September 30th indicating how close they were to their initial presumed savings. Florida Farm Bureau's March filing was an anticipated decrease of 24.9%. On May 10th however, they made a second filing requesting an increase of 30.3%.

Source: Florida Office of Insurance Regulation Press Release

July 28, 2007

Twenty and Thirty-Somethings' Latest Accessory is Their Home

Buildhouse

ASHI Reminds Young Homebuyers to Make Smart Decisions When Buying a House or Condo

Chicago, Ill. (July 26, 2007) – For young professionals in their 20s and 30s buying a house or condo is in vogue. In fact, a visit to a local watering hole during happy hour will confirm what the 2006 U.S. Census Bureau data revealed – twenty-somethings are buying homes at record levels (42 percent of people ages 25-29 are homeowners). As the age of a typical homeowner declines, the American Society of Home Inspectors (ASHI) reminds homebuyers about the importance of having a professional home inspection prior to purchasing a house or condo.

“Buying a home may be fashionable, but it’s not something you pick-up off the rack at Nordstrom’s, said Frank Lesh, 2007 ASHI President. “One of the top five mistakes homebuyers make is to forgo a home inspection prior to the purchase of their house or condo.” In fact, according to Lesh, one in four homebuyers (25 percent) do not have their house or condo inspected prior to purchase.

Recent House and Condo Sale Statistics

Below are a few of the latest statistics for house and condo sales as well as a breakdown of the number of homes sold in the U.S. without a home inspection in 2006:

  • In 2006, 1,619,500 homes were sold in the U.S. without a home inspection, according to the American Society of Home Inspectors
  • Throughout the last 10 years, condo sales have doubled from 6 percent to 13 percent, according to the 2006 U.S. Census Bureau data
  • People in their 20s and 30s account for more than 50 percent of newly built home purchases, according to the American Housing Survey conducted by the U.S. Commerce Department

ASHI’s Top Five Words for the Wise

According to Lesh, savvy consumers of any age should arm themselves with the facts about the importance of having a pre-purchase, pre-listing or general maintenance home inspection. Below are ASHI’s top five tips for identifying a qualified home inspector:

  1. Locate an ASHI Certified Inspector by using ASHI’s “Find an Inspector” tool at www.ASHI.org. Consumers can locate an ASHI Certified Inspector by specialty, language spoken or ancillary services provided.
  2. Confirm that the inspector is an experienced residential inspector and check his or her references. Whether you’re purchasing a house or condo, there is no substitute for experience.
  3. Identify how long he or she has been a home inspector and how many inspections he or she has completed. ASHI Certified Inspectors are required to have completed at least 250 paid professional home inspections and pass two written exams that test the inspector’s knowledge of a home’s major systems.
  4. Determine what the inspection and inspection report will cover. Make sure the inspection complies with the ASHI Standards of Practice (the industry standard) available online at www.ASHI.org.
  5. Attend the inspection. Home inspectors should encourage homeowners/potential homeowners or interested parties to attend the inspection. It’s a valuable opportunity for the homeowner or potential homeowner to learn more about the property at hand.

“Purchasing a house or condo is one of the greatest investments a person can make,” added Lesh. “Keeping these tips top-of-mind will ensure that homebuyers, especially those in their 20s or 30s, select the right man or woman for the job.”

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.

Note from John Elwell: A home inspection is usually not mandatory, but home buyers would be well advised to have one done. They cannot guarantee that every problem will be found. However, they will help you hedge your bets and make you a better informed consumer. You can find more information concerning home inspections at my webpage: www.jelwell.century21bnr.com

Source: American Society of Home Inspectors Press Release

The Mortgage Prepayment Predicament

Caution

I was just at a home to do a market analysis for the owners. I toured the home and made recommendations as to how they could stage the home and make cosmetic changes so that we could get the best price possible for them.

The home had been listed with another agent that I know. That agent is very good, yet the home had been shown very little during the last listing period. In all likelihood, it is the price that is the issue. In my initial estimation, the best price would be around $199,000. At that price the home would probably be shown quite a bit and would likely sell near that price. However, the owners will have to get that much just to pay off their mortgage. The closing costs will push it to about $215,000! A price that is REALLY pushing the upper levels for the current buyers market we find ourselves in.

The sellers would be able to lower their price to a more attractive level except for one fly in the ointment. A PREPAYMENT PENALTY!  From what they tell me, this penalty adds $6,000 to $7,000 to their loan payoff. If they did not have this penalty, their asking price could be much lower and would likely attract more potential buyers.

Good lenders and mortgage brokers will make sure that their clients know about prepayment penalties and do their best to help them find a loan that does not have them, if possible. Penalties can be a problem in that if you pay off the loan before a specified period of time, you will be forced to pay several thousands of dollars, depending on the terms of your loan. A typical prepayment penalty will be something like 6 months worth of interest on the remaining principal of the loan. Since the penalties apply during the first few years of a loan, the principal has hardly been lowered at all, so 6 months of interest can be considerable. In a buyers market this money can determine whether you get money, break even, or lose money when you sell your home.

Why do prepayment penalties exist? If lenders have you paying a high rate of interest, they want to make sure that you do not refinance quickly to a lower rate if interest rates should drop. They want a guarantee that for a certain number of years they will get the higher rate of interest. If you stay in the home beyond the penalty period, no problem. The problem occurs when you want or are forced to sell you home sooner. Maybe you get transferred, for example. You want to sell, but right from the get-go you are thousands in the hole. If you bought your home in 2005, like my sellers today, then you have a double whammy. The market prices are stagnant or losing ground and you have the prepayment penalty. If you want to break even, you have to hope that the sale of the home will cover what you paid, your closing costs, the mortgage payoff, AND now the prepayment penalty.

So, if you are financing or refinancing your home, ask the lender or mortgage broker about whether or not there are prepayment penalties. If he cannot find you a loan without them, call some other lenders and see if you can find a more attractive loan package. If, due to your circumstances, you cannot find a no prepayment penalty loan, shop for the one that has the shortest period during which it will exist. As I said earlier, the ones I have seen were 3 year prepayment penalty periods. My sellers today said theirs was for FIVE years. That is a very long time to be "locked" into a loan.

So be aware of these penalties, shop around for financng, and ask a lot of questions. Do not wait to hear about your loan terms at the closing table when you are against the wall. This is an important investment for you. You deserve and need to understand exactly what you are getting.

If you would like to speak with a local lender in the Tampa area you can find some at my website: www.jelwell.century21bnr.com

You can also contact me via telephone from 9 AM to Midnight at: 813-783-4444 or e-mail at: jelwell1@tampabay.rr.com  It will be my pleasure to assist you in any way that I can!

 

July 27, 2007

Looking for Open Houses in Zephyrhills or around the USA??

Front_best Just wanted to let you know that CENTURY 21, ERA Realty, Coldwell Banker, and Sothebys are now using OPEN HOUSE.COM to list their open houses. You can do a search for events in a specific area and you can also set up a notification service so that a month down the road when an open house will take place in your area, you will receive an e-mail message giving you all the details.

This may be a lot easier for you than hunting through the newspaper or on the internet. In any case, I thought it was worth passing along to you. To try out OPEN HOUSE.COM  Click Here 

If you have any question about open houses or real estate in general, do not hesitate to contact me at any time. Phone: 813-783-4444 E-Mail: jelwell1@tampabay.rr.com Webpage: http://www.century21bnr.com

John Elwell

July 26, 2007

Freddie Mac: Concern Over Softening Housing Market Brings Interest Rate Drop

Ctfdbbca8kgiiscavldwgzcaezbhakcajva Today 7/26/07,  Freddie Mac reported that average mortgage interest rates for 30 and 15 year loans were lower. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.69% (6.65% in the southeast), a drop from 6.73% a week ago. The average interest rate for 15 year fixed-rate mortgages was 6.37%, down from 6.38% last week.

Mortgage rates dropped due to worries that weak housing demand this spring will deter any quick recovery in the housing sector. For example, building permits in June fell to the slowest pace in 10 years. Information concerning the number existing home sales in June continued a four month decline.

Freddie Mac reports that the tightening of lending standards (especially on the subprime loans you have heard so much about in the news) and the 40 basis point jump on 30-year fixed-rate mortgages last month, have made borrowers think twice about buying a home. They report that the sales of single-family homes continues to slide downward.

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 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.

July 25, 2007

National Association of REALTORs: Prices Rise, Existing-Home Sales Decline in June

WASHINGTON, July 25, 2007 -

Sales of existing homes fell in June with some potential buyers staying on the sidelines, but prices rose modestly as inventories eased, according to the National Association of Realtors®.

Total existing-home sales – including single-family, townhomes, condominiums and co-ops – declined 3.8 percent to a seasonally adjusted annual rate1 of 5.75 million units in June from a downwardly revised level of 5.98 million in May, and are 11.4 percent below the 6.49 million-unit pace in June 2006.

Lawrence Yun, NAR senior economist, said some consumers are uncertain. “Home buyers have been getting mixed signals about the housing market, which is causing some of them to hesitate,” he said. “Mortgage interest rates have risen recently, and tightening lending standards are continuing to hamper sales, but fewer risky loans will put the market on a healthier path. Although general buying conditions remain favorable for long-term home buyers, it appears some buyers are looking for more signs of stability before they have enough confidence to make an offer.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.66 percent in June, up from 6.26 percent in May; the rate was 6.68 percent in June 2006.

“Two bright spots in the June report are a decline in housing inventory and a modest gain in home prices,” Yun said. “Although we’ve seen seasonal month-to-month price increases over the past four months, this is the first time in 11 months that the median home price is higher than the year-ago price.”

The national median existing-home price2 for all housing types was $230,100 in June, up 0.3 percent from June 2006 when the median was $229,300. The median is a typical market price where half of the homes sold for more and half sold for less.

Total housing inventory fell 4.2 percent at the end of June to 4.20 million existing homes available for sale, which represents an 8.8-month supply at the current sales pace, the same as a downwardly revised 8.8-month supply in May.

NAR President Pat V. Combs, from Grand Rapids, Mich., and vice president of Coldwell Banker-AJS-Schmidt, said that local market conditions vary widely. “Consumers should avoid making decisions based on what they hear about the national market because all real estate is local,” she said.

“There are pockets around the country where home sales are quite strong, so you really need to consult with a knowledgeable real estate professional about local market conditions – experience is one way Realtors® add value to the real estate transaction, and a reputable agent is your best resource to navigate the current market, whether it’s moving up or down,” Combs said.

Single-family home sales fell 3.5 percent to a seasonally adjusted annual rate of 5.01 million in June from a downwardly revised 5.19 million in May, and are 12.1 percent below the 5.70 million-unit level in June 2006. The median existing single-family home price was $230,300 in June, up 0.1 percent from a year ago.

Existing condominium and co-op sales dropped 6.3 percent to a seasonally adjusted annual rate of 740,000 units in June from 790,000 in May, and are 6.6 percent lower than the 792,000-unit pace a year ago. The median existing condo price3 was $228,900 in June, up 2.6 percent from June 2006.

Regionally, existing-home sales in the South eased by 1.7 percent to an annual sales rate of 2.26 million in June, and are 11.4 percent below a year ago. The median price in the South was $190,800, up 0.7 percent from June 2006.

Existing-home sales in the Midwest declined 2.8 percent in June to a level of 1.37 million, and are 8.1 percent below June 2006. The median price in the Midwest was $171,700, which is 1.5 percent below a year ago.

Existing-home sales in the West dropped 6.8 percent in June to an annual pace of 1.10 million, and are 19.1 percent below a year ago. The median price in the West was $340,000, down 0.4 percent from June 2006.

Existing-home sales in the Northeast fell 7.3 percent to a level of 1.01 million in June, and are 7.3 percent lower than June 2006. The median existing-home price in the Northeast was $294,400, up 1.8 percent from a year ago.

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® I Headquarters: 430 North Michigan Avenue, Chicago, IL 60611, DC Office: 500 New Jersey Avenue, NW, Washington, DC 20001-2020

SOURCE: National Association of REALTORs Press Release

Florida Association of REALTORs: Florida's Existing Home Sales Remain Slower in June 2007

ORLANDO, Fla., July 25, 2007 – Despite favorable mortgage interest rates, strong job growth and other positive economic conditions, statewide sales of existing single-family homes in Florida totaled 12,954 in June and were closer to activity levels in June 2002 – prior to the housing boom years – than June 2006 figures when 18,607 homes sold for a 30 percent decrease in the year-to-year comparison, according to the Florida Association of Realtors® (FAR).

Florida’s median sales price for existing single-family homes last month was $243,200; a year ago, it was $256,200 for a 5 percent decrease. The median is the midpoint; half the homes sold for more, half for less. In June 2002, the statewide median sales price for single-family homes was $142,400, for an increase of 70.8 percent over the five-year-period, according to FAR records.

In May 2007, the national median sales price for existing single-family homes was $223,000, down 2.4 percent from the previous year, according to the National Association of Realtors® (NAR). In California, the statewide median resales price was $591,180 in May; in Massachusetts, it was $355,000; in Maryland, it was $312,683; and in New York, it was $239,000.

Existing home sales are expected to recover in 2008 and pick up by the end of this year, according to NAR’s latest market outlook. “It appears some buyers are simply waiting for more signs of stability before they get serious about getting into the market,” says NAR Senior Economist Lawrence Yun. “The market is underperforming when you consider positive fundamentals such as the strength in job creation, economic growth, favorable mortgage interest rates and flat home prices.”

Sales of existing condominiums in Florida also decreased last month, with a total of 4,004 condos sold statewide compared to 5,532 in June 2006 for a 28 percent decline, according to FAR. The statewide median sales price for condos last month was $206,100, down 3 percent from June 2006’s condo median price of $213,200. NAR reported the national median existing condo price was $228,200 in May 2007.

Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.66 percent, according to Freddie Mac, lower than the average rate of 6.68 percent in June 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 Sarasota-Bradenton Metropolitan Statistical Area (MSA) reported 797 existing homes sold last month compared to 762 homes sold a year ago for a 5 percent increase. The market's median sales price for homes was $292,700; it was $326,800 in June 2006 for a 10 percent decrease. A total of 276 existing condos changed hands in the MSA last month, down 7 percent from the 297 condos sold the previous year. The existing condo median sales price in June was $256,300; a year ago, it was $287,500 for an 11 percent decrease.

“Several factors are influencing the market in the Sarasota-Bradenton area,” says May Aston, president of the Manatee Association of Realtors and real estate consultant with RE/MAX Gulfstream Realty. “Here in Manatee County, our location and beautiful beaches are central to the major airports and attractions. Inventory is plentiful, and sellers have adjusted their price expectations, which helps make homes more affordable again.”

Among the state’s smaller markets, the Tallahassee MSA reported a total of 422 homes sold in June compared to 512 homes a year ago for an 18 percent decrease. The existing home median sales price was $187,900; a year ago, it was $180,500 for a 4 percent increase. A total of 42 existing condos sold in the MSA last month compared to 41 condos the previous June for a 2 percent increase. The market’s existing condo median price was $161,500; a year ago, it was $141,000 for an increase of 15 percent.

Robby Turner, president of the Tallahassee Board of Realtors and broker-owner with Robby Turner Realty, says that the area’s economy remains strong and home sales are returning to a more normal pace. “As the state capital, Tallahassee is fortunate to have a stable, government-based economy, as well as a positive employment and job outlook due to our higher education institutions and a vibrant healthcare industry,” he says. “We’re the center of an eight-county region that offers plenty of room to grow.”

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 June 2007 to June 2006 based on Realtor transactions.

Single-Family: Download June_2007_home_chart.pdf

Condominium: Download June_2007_condo_chart.pdf

The Florida Association of Realtors (FAR), the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its 150,000 members in 68 boards/associations.

© 2007 FLORIDA ASSOCIATION OF REALTORS®

SOURCE: Florida Association of REALTORs Press Release

July 23, 2007

Bankrate.Com: Florida Has Some of the Highest Closing Costs in the US


Press Releases

New York State Ranks #1 Highest Mortgage Closing Costs in the US for the Third Straight Year

Bankrate Releases 2007 National Closing Cost Survey


NEW YORK, July 12 /PRNewswire-FirstCall/ -- Bankrate, Inc. (Nasdaq: RATE) announced today that New York State is the most expensive location in the country to close a mortgage transaction. The average closing cost in New York is $3,830, compared to Indiana (least expensive state) at $2,339. The survey compared the costs of lender fees, title fees and settlement fees in 51 geographic locations. Included in the study is a detailed listing of average closing fees by state, and a printable worksheet for consumers to compare average costs to their lenders' fees. To view the survey, go to
www.bankrate.com/closingcosts.

"Consumers armed with information can make better deals," said Holden Lewis, senior reporter at Bankrate.com. "Many fees are fixed costs, but others are negotiable. Doing homework can save consumers money in the end," Mr. Lewis added. The Bankrate survey includes tips and advice on saving money on closing costs.

Bankrate's Closing Cost Survey was conducted in June of 2007 by obtaining four to nine good faith estimates from the Web sites of online lenders. Researchers picked a ZIP code in some of the largest cities in each state and requested information on the closing costs for at $200,000 loan. They requested fees on a 30-year, fixed-rate mortgage for a borrower with a 20 percent down payment and good credit to buy a single-family house. Bankrate's survey includes lenders' origination fees and title and settlement fees, and not taxes or prepaid items.



2007
Closing
2007 Rank 2006 Rank State Costs

1 1 New York $3,830
2 2 Texas $3,413
3 5 Florida $3,175
4 12 Pennsylvania $3,169
5 4 Ohio $3,047
6 3 Hawaii $3,008
7 13 New Jersey $2,996
8 11 Oklahoma $2,978
9 8 New Mexico $2,922
10 25 Delaware $2,904
11 6 Connecticut $2,858
12 14 Massachusetts $2,849
13 18 Louisiana $2,844
14 16 Mississippi $2,836
15 21 Tennessee $2,832
16 7 Alaska $2,811
17 17 Calif. - LA $2,779
18 27* Rhode Island $2,768
19 38 Maryland $2,755
20 32* Virginia $2,727
21 49 New Hampshire $2,724
22 46* District of Columbia $2,722
23 36 North Dakota $2,719
24 23* Colorado $2,705
25 50 Michigan $2,694
26 30 Minnesota $2,692
27 41 West Virginia $2,692
28 35 Arkansas $2,687
29 27* Maine $2,671
30 29 Vermont $2,666
31 20 Georgia $2,655
32 32* Utah $2,646
33 19 Idaho $2,627
34 48 Montana $2,619
35 9 Kentucky $2,602
36 40 Iowa $2,583
37 23* South Carolina $2,558
38 37 Washington $2,555
39 10 Alabama $2,552
40 42 South Dakota $2,532
41 15 Oregon $2,532
42 44 Kansas $2,521
43 39 Nebraska $2,515
44 26 Wisconsin $2,508
45 51 Missouri $2,496
46 45 Arizona $2,489
47 34 North Carolina $2,487
48 22 Nevada $2,467
49 31 Illinois $2,401
50 46* Wyoming $2,390
51 43 Indiana $2,339



SOURCE Bankrate, Inc.


July 21, 2007

Weather Radios - A Good Investment, Especially For Mobile Home Residents

Tornado_2Now that summer is here in Florida, and around the country, some of the most violent storms of the season can occur. Whenever a tornado strikes, I always think of my customers who live in those types of residences. Lately, I have begun to purchase weather radios for my customers who are buying a mobile home through me. I got the idea a while back when I read that the federal government was considering a requirement that all new mobile homes should come with such a device installed.

With hurricanes, we often have several days of warning so there is plenty of time to get to higher ground or to find an emergency shelter. However, tornados can pop up at a moment's notice, often when we are asleep. That is why they can be so deadly. The combination of incredible wind speeds and unpredictability are often a fatal combination. Tornados can even severely damage conventional homes.

Many weather radios have alert features so they are silent until the US Weather Service sends through the alarm. At that point the occupants can be warned, even if it is in the middle of the night. Hopefully giving them plenty of time to move to a more secure location.

I checked online and Radio Shack has models ranging in price from $15.99 to $89.99. Walmart had a model priced at $12.86. Other outlets might also sell this type of device. I noticed that some even come with a flashlight built into them. Not a bad feature if the power goes out.

So if you live in a mobile home, I recommend that you make a small investment in a weather radio. It will give you some peace of mind and will perhaps save the lives of you and your loved ones. Thought this idea was worth passing along to those of you who live in areas that are tornado prone.

If you have any questions concerning this topic, you can call me at: 813-783-4444 , e-mail me at: jelwell1@tampabay.rr.com  or visit my webpage at:  www.jelwell.century21bnr.com


July 20, 2007

Floridians Support "Super Homestead Exemption", But Most Know Little About It

Crist
In a poll conducted by Quinnipac University in New York, it was revealed that voters in Florida favor a property tax proposal that will be voted on in January 2008, 57% to 17%. However, most admit that they do not really understand how it would work. At least 60% of the people who vote on the proposed change will need to support it in order for it to become law. Those persons who were polled felt that local government worries about cuts in services were either "not valid" or "not a reason to vote against the proposal".

The property tax cuts already enacted during the recent special session of the state legislature were felt to be insufficient by 47% of voters, too large by 8%, and just about right by 29%.

Meanwhile, Charlie Crist is riding a surge of popularity. 73% of voters approve of his performance so far, including many Democrats. However, many say they are not seeing the insurance savings that he promised when he first took office and called for a special legislative session to handle this concern of Floridians. No one I know is yet jumping for joy over lower premiums. It would seem that by now someone would see some positive results.

On the tax proposals, what concerns me personally is that it appears that so few voters know what the new plan will entail. As voters it is our responsibility to be educated concerning the issues in play and to understand the choices that we are making in the voting booth. Hopefully, more information will become available before January 2008 so that all of us can become informed voters and do what is best for our state.

You can see the full poll results by clicking on the following link: Poll Results

July 19, 2007

Freddie Mac Says Mortgage Interest Rates Remain Virtually Unchanged This Week

Today  Freddie Mac reported that average mortgage interest rates for 30 and 15 year loans were motionless, or nearly so. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.73% (6.70% in the southeast), unchanged from 6.73% a week ago. The average interest rate for 15 year fixed-rate mortgages was 6.38%, down only slightly from 6.39% last week.

Recent statistics indicate that the housing market has not arrived at the bottom of its fall. It was reported that June's housing starts were somewhat of a surprise rising to 1,470,000 units for the month. However, single home construction fell 0.2%. New building permits declined 7.5% in June, and that was the lowest they have been since 1997.

I also just saw a report that said the Federal Reserve chairman indicated that we should not expect the Fed to lower interest rates significantly in the near future since inflation remains a major concern. However, in the past we have seen that sometimes mortgage rates do not necessarily mirror what the Federal Reserve tries to accomplish.

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 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.

July 12, 2007

After 3 Weeks of Declines, Freddie Mac Says Mortgage Interest Rates Have Risen

Earlier today  Freddie Mac reported that after three weeks of having interest rates decline, they have gone back up again. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.73% (6.65% in the southeast), up from 6.63% a week ago. The average interest rate for 15 year fixed-rate mortgages was 6.39%, up from 6.30% last week.

Healthy consumer credit growth in May and positive employment figures forced interest rates higher during the past week. This one jump all but erased the declines that had taken place over the past 3 weeks.

Freddie Mac is predicting that 30 year fixed-rate mortgage interest rates will remain relatively stable through the rest of 2007. They also feel that the weakness in the housing market will continue during the same period. The number of homeowners refinancing their home loans is also decreasing

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 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.

National Association of REALTORs (NAR): Home prices to recover in 2008

WASHINGTON, July 11, 2007

Home prices are expected to recover in 2008 with existing-home sales picking up late this year and new-home sales rising early next year, according to the latest forecast by the National Association of Realtors®.

Lawrence Yun, NAR senior economist, said a good buyers’ market has evolved. “Buyers now have an overwhelming advantage given the wide selection of homes available in many markets,” he said. “But with profit margins coming under pressure, homebuilders will limit new construction well into 2008. This should help the overall inventory level to move steadily into a more balanced state.”

Existing-home sales are expected to total 6.11 million this year and 6.37 million in 2008, down from 6.48 million last year. New-home sales are projected at 865,000 in 2007 and 878,000 next year, compared with 1.05 million in 2006. Housing starts, including multifamily units, are forecast at 1.43 million units this year and 1.44 million in 2008, down from 1.80 million last year.

Existing-home prices are likely to rise 1.8 percent to a median of $222,700 in 2008 after a 1.4 percent decline this year to $218,800. The median new-home price should rise 2.2 percent to $245,400 next year following a 2.6 percent drop in 2007 to $240,100.

“Markets that sharply reduce new construction in 2007 will generally experience respectable price increases in 2008,” Yun said. “Local conditions vary considerably, but with historically low mortgage interest rates this summer and sustained job gains, it could be a good time for first-time buyers with a long-term view to test the housing waters.”

The 30-year fixed-rate mortgage is estimated to average 6.7 percent during the second half of this year, and fluctuate around 6.6 percent in 2008.

Growth in the U.S. gross domestic product (GDP) will probably be 2.0 percent in 2007, compared with a 3.3 percent growth rate last year; GDP is forecast to grow 2.8 percent in 2008.

The unemployment rate is likely to average 4.6 percent in 2007, unchanged from last year. Inflation, as measured by the Consumer Price Index, is projected at 2.6 percent in 2007, down from 3.2 percent last year. Inflation-adjusted disposable personal income should rise 3.0 percent this year, up from a 2.6 percent gain in 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.

# # #

Existing-home sales for June will be released July 25; the Pending Home Sales Index is scheduled for August 1 and the next forecast will be August 8.

SOURCE: National Association of REALTORs Press Release


Let's hope that for the sake of sellers and real estate professionals (and those who depend on them) that there may be a glimmer of light at the end of this tunnel. And that it is not a train coming toward us!!

July 09, 2007

How to Find a Local REALTOR®

Telescope

What is the best way to find a REALTOR® in the area where you are selling or buying a home? These days many people, up to 75%, begin their searches by looking on the internet. However, when you enter something like "Realtor Zephyrhills Florida" into a search engine like Yahoo or Google, what most often comes up first is a series of services that appear to be local specialists since they pepper their search results with the word "Zephyrhills". In reality, they are referral services that could be located anywhere in the country! I suppose they could even be in a foreign country. Their computers add in the word "Zephyrhills" from your search inquiry so that it appears that you have reached a local site. If you had put in "Holliston" then the results would have that city's name appear several times. If you proceed to give them your contact information they contact an agent that they have recruited over the phone and probably have never met. They then charge a percentage of the commission or a flat fee for each lead referral they send to an agent. I get at least one call a week, sometimes more, from these services promising to send me referral leads if I sign up with them. But, I have never had any of them qualify me based on my expertise, training, experience, or area of service. My willingness to pay them seems to be the main qualification. If you use one of these services investigate it carefully to be sure that you will be getting an agent that works in your target area and can perform the services you need.

If you scroll down a little farther the screen or go to the next page, the actual websites of agents in your target area should begin to appear. You can usually identify these because the name of a specific real estate agent will probably be included in the information. When you speak with them always ask them where they work and what area they cover. If it is in or close to your city of interest, great. If it is farther away, be sure that you are convinced that they can help you efficiently and expertly.

One good way to find an agent is to visit the National Association of REALTORS® (NAR) site at: www.realtor.com You can enter the name of the city where you currently live or where you wish to move, and the names of NAR members in that general area will appear. One caveat here though! If you put in Zephyrhills, for example, 500 names will appear. In our town there are no where near 500 agents. Some of the names are those of agents located up to 50 miles away. Ask any prospective agents how far away from your target city they live and work. It just makes sense that a local agent will be better informed about the local real estate market. Legally I can sell homes in the Miami area and tell the NAR system that I would service a zip code area there. However, I know little about that particular market and could not perform as well in that city. Not to mention that I could not service the listing well due to its distance. My best advice is to deal with a local REALTOR®. An additional benefit of searching through the NAR site is that you will not just find a real estate agent, but a REALTOR® who subscribes to the NAR's Code of Ethics. This ensures that you will get the highest standard of service possible. You can see the Code of Ethics at the NAR site.

In Florida you can search through the Florida Association of REALTORs® (FAR) site at: http://fl.living.net/  Again, be aware that some agents will list cities they service that are faraway from your target area. So if you truly want a local agent, ask the agent how far they are from the city you are interested in and how much business they do there. They may offer to do a referral for you, but you can also find the agents in that city yourself.

If you are looking for a REALTOR® in a city other than the one you live in, you may wish to contact a local agent you know and respect near where you live, and ask him/her to find an agent for you. As a real estate professional, your local agent can help evaluate the abilities of other REALTOR®s and refer you to the best qualified candidates. In this electronic age we often have contacts in other markets and can put our customers in touch with them. This can greatly streamline the search process for you and will  hopefully increase your chances of finding a great agent to work with. Usually the agent in the other town will pay your local agent a referral fee if you buy or sell a property. So he/she will be compensated for helping you find a good REALTOR®.

Of course, another way of finding a good REALTOR® is to call me! I am a full-service real estate professional,and always work very hard for my customers. I invite you to visit my website at:  jelwell.century21bnr.com  to see what CENTURY 21 Bill Nye Realty, Inc. and I can do for you. You can also contact me via telephone from 9 AM to Midnight at: 813-783-4444 or e-mail at: jelwell1@tampabay.rr.com  It will be my pleasure to assist you in any way that I can!

July 05, 2007

Pending Homes Sales Index Declines While Some Regions Are Up (NAR)

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WASHINGTON, July 03, 2007 - Pending home sales, a forward-looking indicator, shows existing-home sales may ease but should stay fairly close to present levels in the months ahead, according to the National Association of Realtors®.

The Pending Home Sales Index*, based on contracts signed in May, rose in the West and Northeast but fell in the Midwest and South. The national index stood at 97.7 in May, down 3.5 percent from a downwardly revised April index of 101.2, and is 13.3 percent lower than May 2006 when the reading was 112.7. In April, the index was 10.4 percent lower than a year earlier.

Lawrence Yun, NAR senior economist, stressed that housing activity continues to be impacted by tighter lending criteria and a lack of buyer confidence. “Some transactions are being postponed from mortgage market disruptions,” he said. “But better supervised lending will put housing in a fundamentally healthier state over the long term.

“Mortgage purchase applications are trending up, with some of the rise due to buyers reapplying for alternatives to subprime financing. Nonetheless, home sales should stay close to present levels in the months ahead given an accumulating pent-up demand,” Yun said.

The pent-up demand results from slow household formation, which is significantly below levels that would be expected in a period of job creation and economic growth. “As consumer confidence improves, home sales will rise,” he said.

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, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

Annual changes in the index are more closely related to actual market performance than are 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.

The PHSI in the West rose 5.6 percent in May to 95.4 but was 13.7 percent below a year ago. In the Northeast, the index increased 3.8 percent from April to 93.1 but is 9.6 percent lower than May 2006. The index in the South fell 7.6 percent in May to 107.2 and was 15.4 percent below a year ago. In the Midwest, the index dropped 8.9 percent in May to 89.4 and was 11.7 percent below May 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 relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

The forecast will be revised on July 11, and existing-home sales for June will be released July 25.

SOURCE: National Association of REALTORS® (NAR) Press Release

US Census Bureau Releases Names of Fastest Growing and Most Populous Cities in the US and Florida

The US Census Bureau is reporting which cities now sit at the top of the population list and which ones are out-pacing the rest of us in growth. Out of the top 25 fastest growing population centers, 4 of them are in my state of Florida, though only two are in a major city, those being Orlando and Miami, predictably. The two fastest growing cities are not usually considered to be major players in the state, Port St. Lucie and Cape Coral.

As always population growth is a two-edged sword. For real estate agents we love having more people come to our areas since they will need a place to call home. That normally means more sales for us. On the other hand, in some states and areas (like Florida) our officials are always a step behind when it comes to getting infrastructure ready to handle the increased number of residents. Roads, schools, parks, jails, libraries, etc always seem to be in short supply. I used to be a teacher and it was a yearly sight that when a new school opened there would be a field full of portable classrooms out back since between the planning stage and the opening day, the school had become too small for the influx of new residents.

Oh well, that is just the way it is I guess. Hope you find the information concerning your own little piece of this big country interesting and informative.


Census Bureau Announces Most Populous Cities

     Phoenix has become the nation’s fifth most populous city, according to U.S. Census Bureau population estimates released today. As of July 1, 2006, this desert metropolis had a population of 1.5 million.

     New York continued to be the nation’s most populous city, with 8.2 million residents. This was more than twice the population of Los Angeles, which ranked second at 3.8 million. (See Table 1 Excel | PDF.)

     The estimates reveal that Phoenix moved into fifth place ahead of Philadelphia, the latest evidence of a decades-long population shift. Nearly a century ago, in 1910, each of the 10 most populous cities was within roughly 500 miles of the Canadian border. The 2006 estimates show that seven of the top 10 — and three of the top five — are in states that border Mexico.

     Only three of the top 10 from 1910 remained on the list in 2006: New York, Chicago and Philadelphia. Conversely, three of the current top 10 cities (Phoenix; San Jose, Calif.; and San Diego) were not even among the 100 most populous in 1910, while three more (Dallas, Houston and San Antonio) had populations of less than 100,000. (See fact sheet. [PDF])

     The estimates also reveal that many of the nation’s fastest-growing cities are suburbs. North Las Vegas, Nev., a suburb of Las Vegas, had the nation’s fastest growth rate among large cities (100,000 or more population) between July 1, 2005, and July 1, 2006. North Las Vegas’ population increased 11.9 percent during the period, to 197,567. It was joined on the list of the 10 fastest-growing cities by three in the Dallas metro area: McKinney (ranking second), Grand Prairie (sixth) and Denton (ninth). In the same vicinity, Fort Worth just missed the list, ranking 11th.

     Florida and Arizona each had two cities among the 10 fastest growing: Port St. Lucie (third) and Cape Coral (fourth) in Florida; and Gilbert (fifth) and Peoria (seventh) in Arizona, both near Phoenix. North Carolina (Cary, near Raleigh) and California (Lancaster, near Los Angeles) each contributed one city to the list. (See Table 2 Excel | PDF.) California had seven cities among the 25 fastest growing, leading all states.

     Phoenix had the largest population increase of any city between 2005 and 2006, adding more than 43,000 residents to reach 1.5 million. However, Texas dominated the list of the 10 highest numerical gainers, with San Antonio, Fort Worth, Houston, Austin and Dallas each making the top 10. North Las Vegas; Miami; Charlotte, N.C.; and San Jose, Calif., rounded out the list of the 10 biggest numerical gainers. (See Table 3 Excel | PDF.) Overall, eight Texas cities were among the 25 biggest numerical gainers to lead all states.

     New Orleans had by far the largest population loss among all cities with populations of at least 100,000 people. The city lost slightly more than half of its pre-Hurricane Katrina population. It fell from 452,170 on July 1, 2005, to 223,388 one year later — a loss of 50.6 percent. To put the size of this loss into perspective, Hialeah, Fla., which experienced the second-highest rate of loss over the period, saw its population decline by 1.6 percent.
(See Table 4 Excel | PDF.)

     For more information about the geographic areas for which the Census Bureau produces population estimates, see <http://www.census.gov/popest/geographic>.

-X-

These estimates are based on Census 2000 population counts — updated using information on building permits and other estimates of change.

SOURCE: US Census Bureau

For a 3rd Week Freddie Mac Reports Mortgage Interest Rate Drop

Today  Freddie Mac reported that for a third week in a row the mortgage interest rates have inched down. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.63% (6.56% in the southeast), down from 6.67% a week ago. The average interest rate for 15 year fixed-rate mortgages was 6.30%, down from 6.34% last week.

Moderating core inflation rates were given as a cause of the lower rates. In fact the Federal Reserve mentioned this moderation of the core rates as the basis for leaving the target federal funds rate unchanged. As many of you know, inflation is a main worry of the Federal Reserve and often helps them determine whether they will raise or lower their interest rates. That is how they help prevent runaway inflation from taking place like it once did in the early 1970's.

Their concerns were lessened due to reports that May's personal consumption expenditures were within a range that does not set off alarm bells at the Fed. They are taking a wait-and-see attitude about whether the moderate rates of inflation will continue or not. If they begin to get uncomfortable about the trends they see, we could see the mortgage interest rates begin to climb once again. In my opinion, interest rates are still historically low and show encourage home buyers to make a move. Especially since they will be saving money due to the price reductions that we are seeing from developers and sellers of resale homes.

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.

July 03, 2007

No Florida Cities Considered Most Affordable by National Association of Home Builders, But None Found To Be Least Affordable Either

Indianapolis and Youngstown, Ohio Share Title of Most Affordable Housing Market

June 28, 2007 - The metropolitan areas encompassing Indianapolis-Carmel, Ind. and Youngstown-Warren-Boardman, Ohio-Pa. tied for the title of most affordable major U.S. housing market in this year’s first quarter, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), released today. Meanwhile, lower home prices and mortgage interest rates helped boost housing affordability across the nation in the first three months of this year.

“The latest HOI shows that about 44 percent of new and existing homes that were sold in the United States during this year’s first quarter were affordable to families earning the national median income,” said NAHB President Brian Catalde, a home builder from El Segundo, Calif. “This is up from 41.6 percent of homes sold in the final quarter of 2006, and is likely the result of lower house prices as well as the very favorable financing conditions that existed at the beginning of this year.”

“The national weighted interest rate on prime quality fixed- and adjustable-rate home mortgages, which is used in calculating the HOI, slipped to 6.4 percent in the first quarter of this year, down from 6.52 percent in the final quarter of 2006 and the lowest level since the first quarter of 2006, when it was gauged at 6.39 percent,” said NAHB Chief Economist David Seiders. “Meanwhile, following a strong nationwide surge that started in early 2004 and continued through mid-2006, overall home prices weakened for three consecutive quarters leading up to and including the period encompassing January through March of 2007. Together, these factors improved the typical family’s ability to purchase a home,” he said, “although tightening of lending standards in the subprime component of the mortgage market certainly affected more marginal credit risks as the first quarter drew to a close.”

In the nation’s most affordable major housing markets of Indianapolis and Youngstown, 89 percent of new and existing homes that were sold during the first quarter of this year were affordable to families earning those areas’ respective median household incomes of $63,800 and $51,400. The median sales price of all Indianapolis homes sold in that time frame was $116,000 and the median sales price of all Youngstown-area homes sold was just $78,000. Also near the top of the list for affordable major metros in the first quarter was Dayton, Ohio, followed by Detroit-Livonia-Dearborn, Mich., and Grand Rapids-Wyoming, Mich., respectively.

Midwestern metros also dominated the list of the most affordable smaller housing markets (defined as those with fewer than 500,000 people). Kokomo, Ind., was at the top of that list, followed by Lansing-East Lansing, Mich.; Lima, Ohio; Saginaw-Saginaw Township North, Mich.; and Bay City, Mich., in that order.

Once again at the bottom of the affordability scale was Los Angeles-Long Beach-Glendale, Calif., where just 3 percent of homes sold in the first quarter were affordable to families earning the metro’s median household income of $61,700. The median price of all homes sold in that area was $525,000. As usual, Los Angeles shared the bottom of the affordability scale with other major California metros including Santa Ana-Anaheim-Irvine as the second-least affordable, San Francisco-San Mateo-Redwood City as the fourth least affordable and Modesto as the fifth least affordable large housing markets in the nation. As the third least affordable major metro, New-York-White Plains-Wayne, N.Y.-N.J. was the only non-California location within the bottom five.

Continuing the trend, all five of the least affordable small cities (populations under 500,000) were located in California during the first quarter, with Salinas at the very bottom of the chart followed by Merced; Santa Barbara-Santa Maria-Goleta; Napa; and San Luis Obispo-Paso Robles.

Please visit www.nahb.org/hoi for tables, historic data and details.

Source: National Association of Home Builders

Is Your Real Estate Agent Using The Internet to Its Greatest Potential?

Computer1bg_120899 I have read articles that state that at least 75% of today's home buyers begin their searches on the internet. That is a big change from just 10 years ago when most people either used print ads, mailings, or signs to find homes they might be interested in. That has all change in the technological age we now live in. I have heard people say, "That might be true for the younger generation, but not for the mature crowd". I beg to differ. In Zephyrhills, many of my customers are retirees with ages ranging from 55 to 95 years. Those rascals are just about as adept at computer searches as any teenager I know.

Due to this change in search habits, it is critical that the agent you choose to market you home is internet savy and has a broad presence on the world wide web. Now most companies at least have a company webpage and will place your  home in their Multiple Listing System (MLS) and many of the larger franchises give each of their agents their own webpages. However, take a look at some of these. Many have not modified them in the least to make them more useful to their customers. It is just the basic page with basic functions.

If you take a look at my page at:  www.jelwell.century21bnr.com  You will see that I have added many features that help my customers get more information so that they can be better informed buyers and sellers.

It is also imperative that your home appear on as many internet venues as possible. Think of it this way. The county lets me put up just one sign in front of your home. Someone may drive by and see it, but they might make a left turn just before your corner and go the other way, never knowing your wonderful home is on the market. Now suppose it were legal for me to put 16 signs around your subdivision or neighborhood. Think of how much more likely it would be that a buyer would go by one of them and be informed that your home was nearby and available for purchase. Common sense tells you the odds are greatly increased. And the more people that learn about your home, the more likely that you will sell it sooner, with less hassles, and at a better price.

To achieve this goal I try to maintain a large presence on the internet. When customers are doing searches it is much more likely that your home will appear if it is listed on many sites, instead of just one or two. It takes me a lot of time to do this, but it helps me serve my customers better. My listings currently appear on the following websites:

  1. My own webpage at: www.jelwell.century21bnr.com
  2. My