Florida Real Estate Blog

Pricing and Preparation - The Keys to Selling Your Home Well!

• 

  How to Use Comparable Sales to Price Your Home

  Before you put your home up for sale, use the right comparable sales to find the perfect price. Read
• 

  Listing and Selling Your Green Home

  If you want to get the full value for your green home when it comes time to sell, use a green real estate agent and a green MLS. Read
• 

  Make Your House FHA-Loan Friendly

  Know the basics of FHA loan rules and you stand a better chance of selling your house or condo. Read
• 

  6 Reasons to Reduce Your Home Price

  While you’d like to get the best price for your home, consider our six reasons to reduce your home price. Read
• 

  5 Tips to Prepare Your Home for Sale

  Working to get your home ship-shape for showings will increase its value and shorten your sales time. Read

Visit houselogic.com for more articles like this.

Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®

Average Mortgage Interest Rates Head Back Down Once Again: Freddie Mac

Today, 9/30/10,  Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.32% (4.37% in the southeast), down from 4.37% a week ago. The average interest rate for 15 year fixed-rate mortgages was 3.75%, down from 3.82% last week. A year ago the 30 year rate was 4.94%. Glad to see them going down again. After a couple of weeks of upward movement I was afraid that some buyers might miss out on the lowest rates in a LONG time. If you would like to see how the rates have fallen since the start of 2010, you can download a chart by clicking on the following link: Download Average Mortgage Interest Rates since Jan. 2010

Consumer confidence in the country fell, which caused the yield offered on bonds to fall and that took mortgage interest down as well. Funny, since just yesterday it was reported that in Florida, consumers were more confident, partly due to the end of the BP oil spill. Oh well, as long as buyers can get good rates, this is fine with me. Over a 30 year period, each drop adds up to some big savings for buyers that make purchases now. It also increases the amount of house then can now buy as opposed to when rates were nearly 6%.

Freddie Mac's Deputy Chief Economist said:

"Homeowners have regained $1.0 trillion in home equity as of the second quarter of 2010 after losing more than $7.5 trillion over the three-year period ending in the first quarter of 2009, the Federal Reserve Board reported. This, in part, strengthened household balance sheets and reduced serious mortgage delinquencies. For instance, first mortgages 90-days delinquent or worse fell to 3.16 percent in August from 4.76 percent a year prior and was the lowest rate since June 2008, according to the S&P Experian Consumer Credit Default Indices."

Do keep in mind that we are a very large country. So figures that come out for the entire nation, may have little or no relevance for your particular area. In the end, it is best if you speak with a local REALTOR or financing expert to see what the situation is for your part of the United States. Florida is not Michigan, nor is Maine the same as California. Market conditions can be very different from place-to-place. Also, your own credit history, the property you want to buy, etc. will effect your specific loan options and interest rates. Your mortgage broker or bank loan officer can give you more specific information.

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

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

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

With End of BP Oil Spillage, Floridians' Consumer Confidence Climbs a Bit

GAINESVILLE, Fla. – Sept. 29, 2010 – The sealing of the BP oil well in the Gulf of Mexico put a stop to the hemorrhaging of Florida’s consumer confidence, which rose two points to 68 in September, its highest level since May according to a new University of Florida survey.

“With the Gulf oil spill largely behind us, consumer confidence has begun to recover to pre-spill levels,” said Chris McCarty, director of UF’s Survey Research Center in the Bureau of Economic and Business Research. “This is by no means a return to a state of optimism. Overall confidence is four points lower than it was at this time last year.”

Although this month’s consumer confidence is 10 points below the April reading of 78, all five of the index components posted gains. Rising four points were expectations of U.S. economic conditions over the next year, to 62, and expectations of U.S. economic conditions over the next five years, to 73. Rising one point were perceptions of personal finances now compared with a year ago, to 52, and expectations of personal finances a year from now, to 79. Perceptions of whether it is a good time to buy big-ticket items increased two points to 76.

“It seems increasingly less likely that we will fall into another recession,” McCarty said. “However, there are still a number of drags on the economy and we should expect confidence to oscillate between the upper 60s and lower 70s at least through the end of the year.”

Unemployment in Florida edged up again in August to 11.7 percent, up 0.2 percent from July, McCarty said. Despite that increase, it is still below the record 12.5 percent set in March, he said.

In other disappointing news, prices for existing single-family homes declined in August to a median $134,000, McCarty said. While this is still above the price at the beginning of the year, it is close to 2002 levels, he said.

Prices for food and energy have remained in check, although there are signs that gas and some food prices may go up in the coming months, he said.

Also of concern is that the stock market continues to exhibit volatility, but it appears to be resistant to a major downturn, he said.

On the positive side, job growth is expected, McCarty said. Companies have accumulated enormous amounts of cash and are waiting for some indication about where to invest it for growth, he said.

“Unfortunately, the job losses from this past recession have been so high that it will take many years to return to pre-recession levels,” he said. “Many jobs will not come back. Persistently high levels of unemployment will continue to be an anchor on consumer confidence, which we anticipate to remain near its current level over the next several months.”

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 September was 419 responses.

© 2010 Florida Realtors®

Reprinted with permission. Florida Realtors®. All rights reserved.

Consumer Confidence Drops a Bit Since August 2010

WASHINGTON – Sept. 28, 2010 – The Conference Board Consumer Confidence Index, which had improved last month, now stands at 48.5 in September, down from 53.2 in August.

The Present Situation Index, which represents attitudes about financial situations today, decreased to 23.1 from 24.9. The Expectations Index, which gauges attitudes about the future, declined to 65.4 from 72.0 last month.

“September’s pull-back in confidence was due to less favorable business and labor market conditions, coupled with a more pessimistic short-term outlook,” says Lynn Franco, director of The Conference Board Consumer Research Center. “Overall, consumers’ confidence in the state of the economy remains quite grim. And, with so few expecting conditions to improve in the near term, the pace of economic growth is not likely to pick up in the coming months.”

Consumers’ assessment of current conditions
Those saying business conditions are “bad” increased to 46.1 percent from 42.3 percent, while those claiming business conditions are “good” declined to 8.1 percent from 8.4 percent. Consumers’ appraisal of the labor market was also less favorable. Those claiming jobs are “hard to get” rose to 46.1 percent from 45.5 percent, while those stating jobs are “plentiful” decreased to 3.8 percent from 4.0 percent.

Consumers’ assessment of future conditions
The percentage of consumers expecting business conditions to worsen over the next six months rose to 16.4 percent from 13.4 percent, while those anticipating business conditions will improve declined to 14.9 percent from 16.9 percent.

Consumers are also more pessimistic about future employment prospects. Those expecting more jobs in the months ahead remained essentially unchanged at 14.5 percent in September compared to 14.7 percent in August. However, those anticipating fewer jobs increased to 22.7 percent from 19.6 percent. The proportion of consumers expecting an increase in their incomes declined slightly to 10.2 percent from 10.6 percent.

The Consumer Confidence Survey® is based on a representative sample of 5,000 U.S. households. The monthly survey is conducted for The Conference Board by TNS, one of the world’s largest custom research companies. The cutoff date for September’s preliminary results was September 21st.

© 2010 Florida Realtors®

Reprinted with permission. Florida Realtors®. All rights reserved.

Freddie Mac: Average Fixed-Rate Mortgage Rates Remain Unchanged

Today, 9/23/10,  Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.37% (4.38% in the southeast), unchanged from 4.37% a week ago. The average interest rate for 15 year fixed-rate mortgages was 3.82%, also unchanged from 3.82% last week. A year ago the 30 year rate 5.04%. Fixed "in cement". But when the rates are this low, that is a very good thing! Right?

Freddie Mac's chief economist said that low employment coupled with a lower than expected risk of inflation helped relieve any upward pressure on interest rates. Thus, they are pretty stable at their current low levels.

He also said, "Since 1975, fixed mortgage rates typically fall over the 12 months following the end of a recession; the one exception was the 1980 downturn. The National Bureau of Economic Research recently announced that the current recession ended in June 2009. Rates for 30-year fixed mortgages were 0.7 percentage points lower in June 2010, representing the largest decline during the first year of recovery over the last six recessions. With a weaker recovery, these rates fell by another 0.4 percentage points by September."

But without a doubt, this real estate agent firmly believes that at some point, not all that far off, either interest rates or home prices will start to move upward again, and the current historically unique "buyers market" will come to an end. The question is, "How many buyers will take advantage of it, and how many will wait just a little too long?" It will not last forever. Things will return to normal at some point. When? Who knows?

Do keep in mind that we are a very large country. So figures that come out for the entire nation, may have little or no relevance for your particular area. In the end, it is best if you speak with a local REALTOR or financing expert to see what the situation is for your part of the United States. Florida is not Michigan, nor is Maine the same as California. Market conditions can be very different from place-to-place. Also, your own credit history, the property you want to buy, etc. will effect your specific loan options and interest rates. Your mortgage broker or bank loan officer can give you more specific information.

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

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

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

Survey Says Public Still Demands We Keep the Mortgage Interest Tax Deduction

WASHINGTON –Sept. 23, 2010 – Americans overwhelmingly oppose any action by Congress to tamper with the mortgage interest deduction, according to a new nationwide survey of likely voters commissioned by the National Association of Home Builders (NAHB). Nearly 80 percent of respondents support retaining federal tax incentives to promote homeownership, which have been in the tax code since the introduction of federal income taxes in 1913.

“These poll results show strong national voter support for keeping the mortgage interest deduction that cuts across gender, age, partisan, ideological, educational and regional lines,” says Neil Newhouse, partner at Public Opinion Strategies, which conducted the survey. “Clearly, voters have a very strong connection to the home mortgage interest deduction and … and overwhelmingly say they would be less likely to vote for a candidate for Congress who supported either eliminating or reducing the home mortgage interest deduction.”

When asked to rate the importance of preserving tax deductions in the current tax code, 81 percent said it’s important to keep the deduction of mortgage interest on a primary home, ranking it in a virtual tie with medical expenses (82 percent); most (76 percent) also want to keep the deduction for state and local taxes, including property taxes.

Even renters agreed about the mortgage interest tax deduction. In ranking the importance of current tax deductions, renters said this provision came in second at 71 percent, behind the deduction for medical expenses.

Public Opinion Strategies conducted the survey Sept. 9-12 to assess the public’s attitude toward the mortgage interest deduction and the importance of homeownership. Among the poll’s key findings:

• 79 percent of all respondents – both owners and renters – believe the federal government should provide tax incentives to promote homeownership.

• 82 percent favor providing tax incentives to promote homeownership.

• Even when told that getting rid of the mortgage interest deduction would help ease the federal budget deficit, 72 percent of voters opposed any proposal to abolish the home mortgage interest deduction – 76 percent of Republicans, 75 percent of Independents and 64 percent of Democrats.

• 70 percent would be less likely to vote for a candidate for Congress who proposed eliminating the home mortgage interest deduction; 63 percent would be less likely to vote for a candidate who supports the change.

• 78 percent of those polled say they currently use the home mortgage interest deduction, have used it in the past or hope to use it in the future. Among those renting, 58 percent said have used the mortgage interest deduction in the past or hope to use it in the future.

To view key findings from the survey, please click here: http://bit.ly/cZmNGv  (If link will not open, cut-and-paste it into your web browser - John Elwell)

© 2010 Florida Realtors®

Reprinted with permission. Florida Realtors®. All rights reserved.

Continued Upward Movement of Existing-Home Sales in State of Florida for August 2010

ORLANDO, Fla. – Sept. 23, 2010 – Sales of existing homes in Florida rose 1 percent in August, with a total of 13,997 homes sold statewide compared to 13,908 homes sold in August 2009, according to the latest housing data released by Florida Realtors®. Statewide existing home sales in August increased 3 percent over statewide sales activity in July.

Ten of Florida’s metropolitan statistical areas (MSAs) reported higher existing home sales last month, while 13 MSAs posted increased existing condo sales. Florida’s median sales price for existing homes last month was $134,000; a year ago, it was $146,500 for a decrease of 9 percent. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in July 2010 was $183,400, up 0.9 percent from a year earlier, according to the National Association of Realtors® (NAR). In Massachusetts, the statewide median resales price was $333,000 in May; in California, it was $314,850; in Maryland, it was $267,489; and in New York, it was $227,000.

In Florida’s year-to-year comparison for condos, 5,706 units sold statewide last month compared to 4,662 units in August 2009 for an increase of 22 percent. Statewide existing condo sales last month increased almost 2.7 percent over July’s condo sales. The statewide existing condo median sales price in August was $81,600; in August 2009 it was $107,200 for a 24 percent decrease. The national median existing condo price was $176,800 in July, according to NAR.

The housing sector faces a long recovery process, due in part to slow job growth and the still-fragile economy, according to NAR’s latest industry outlook. “Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery,” said NAR Chief Economist Lawrence Yun. The pace of sales has slowed since May, following the expiration of the federal homebuyer tax credit, Yun said, who predicted this “pause period” likely will last through September.

“However, given rock-bottom mortgage interest rates and historically high housing affordability conditions, the pace of a sales recovery could pick up quickly, provided the economy consistently adds jobs,” he said.

The interest rate for a 30-year fixed-rate mortgage averaged 4.43 percent in August, down from the 5.19 percent averaged in August 2009, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

© 2010 Florida Realtors®

Reprinted with permission. Florida Realtors®. All rights reserved.

Following a July Correction, August 2010 Existing Home Sales Move Back Upward

Washington, September 23, 2010 - Existing-home sales rose in August following a big correction in July, according to the National Association of Realtors®.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 7.6 percent to a seasonally adjusted annual rate of 4.13 million in August from an upwardly revised 3.84 million in July, but remain 19.0 percent below the 5.10 million-unit pace in August 2009.

Lawrence Yun, NAR chief economist, said home sales still remain subpar. “The housing market is trying to recover on its own power without the home buyer tax credit. Despite very attractive affordability conditions, a housing market recovery will likely be slow and gradual because of lingering economic uncertainty,” Yun said.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.43 percent in August from 4.56 percent in July; the rate was 5.19 percent in August 2009.

Yun added, “Home values have shown stabilizing trends over the past year, even as the economy shed millions of jobs, because of the home buyer tax credit stimulus. Now that the economy is adding some jobs, the housing market needs to steadily improve and eventually stand on its own.”

The national median existing-home price for all housing types was $178,600 in August, up 0.8 percent from a year ago. Distressed homes rose to 34 percent of sales in August from 32 percent in July; they were 31 percent in August 2009.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said consumers have been getting mixed signals about the housing market. “People understand the good affordability conditions with stable home prices in most areas, but they’re concerned about the economy and speculation on Wall Street,” she said. “We need to stick with the facts about the long-term value of homeownership and avoid unrealistic assessments. Tight credit and slow short sales are ongoing problems – expediting short sales will help the market to recover more quickly.”

Total housing inventory at the end of August slipped 0.6 percent to 3.98 million existing homes available for sale, which represents an 11.6-month supply at the current sales pace, down from a 12.5-month supply in July.

A parallel NAR practitioner survey shows first-time buyers purchased 31 percent of homes in August, down from 38 percent in July. Investors rose to a 21 percent market share in August from 19 percent in July; the balance of purchases were by repeat buyers. All-cash sales slipped to 28 percent in August from 30 percent in July.

Single-family home sales rose 7.4 percent to a seasonally adjusted annual rate of 3.62 million in August from a level of 3.37 million in July, but are 19.2 percent lower than the 4.48 million level in August 2009. The median existing single-family home price was $179,300 in August, up 1.2 percent from a year ago.

Single-family median existing-home prices were higher in 10 out of 19 metropolitan statistical areas reported in August from a year ago (the price in one of 20 tracked markets was not available). Existing single-family home sales were down in all 20 metro areas from August 2009.

Existing condominium and co-op sales increased 8.5 percent to a seasonally adjusted annual rate of 510,000 in August from 470,000 in July, but are 17.1 percent below the 615,000-unit pace in August 2009. The median existing condo price was $174,000 in August, which is 2.8 percent below a year ago.

Regionally, existing-home sales in the Northeast rose 7.9 percent to an annual level of 680,000 in August but are 24.4 percent below August 2009. The median price in the Northeast was $260,300, up 7.6 percent from a year ago.

Existing-home sales in the Midwest increased 5.0 percent in August to a pace of 840,000 but are 26.3 percent below a year ago. The median price in the Midwest was $149,600, up 0.4 percent from August 2009.

In the South, existing-home sales rose 5.2 percent to an annual level of 1.62 million in August but are 13.4 percent below August 2009. The median price in the South was $155,000, down 1.5 percent from a year ago.

Existing-home sales in the West jumped 13.8 percent to an annual pace of 990,000 in August but are 16.1 percent lower than August 2009. The median price in the West was $214,700, which is 2.5 percent below a year ago.

Existing-home sales for September will be released October 25. The next Pending Home Sales Index is scheduled for October 4; release times are 10 a.m. EDT.

Source: National Association of REALTORS Press Release

Many Floridians Upset Over New Septic Tank Law

TALLAHASSEE, Fla. – Sept. 23, 2010 – A bill passed by the Florida Legislature, SB 550, requires septic tank homeowners to have an inspection every five years. The Florida Department of Health (DOH) is now drafting rules for compliance. The law becomes effective on Jan. 1, 2011, with the inspection component phased in over the following five years.

The Legislature created stricter septic tank rules to protect the environment. Better septic systems are designed to filter out more nitrogen, which feed weeds and algae.

But the rule comes at a significant cost to the state’s 2.6 million homeowners that rely on a septic tank, and Florida lawmakers representing rural counties that rely heavily on septic tanks – Rep. Marti Coley (R-Marianna) and Sen. Evelyn Lynn (R-Ormond Beach) – have promised to introduce legislation next year to repeal the septic tank inspection measure.

“I just simply think that to mandate every five years for every homeowner with a septic tank to have it inspected is unnecessary and big government,” Coley says.

The DOH has heard from a number of counties and homeowners worried about the $100 to $300 cost of a septic inspection, and Gerald Briggs, DOH’s bureau chief for onsite sewage programs, says he’s “very concerned this will cost property owners,” and “we are making sure the cost is as low as we can make.”

State officials believe some septic tanks pollute more than others, and the mandatory inspections will help identify those homes. If an inspection does uncover a major problem, new drain fields could cost homeowners as much as $5,000 or $6,000 to fix, according to Sam Averett, president of Averett Septic Tank in Lakeland.

“Every system needs to be maintained,” Averett said. “You are affecting some water body somewhere – everywhere in the state … If the homeowners were maintaining their systems to begin with this would not be an issue – but they are not.”

Source: Bruce Ritchie, 09/21/2010

© 2010 Florida Realtors®

Reprinted with permission. Florida Realtors®. All rights reserved.

There is Hope for Extension of the National Flood Insurance Program

WASHINGTON – Sept. 23, 2010 – The U.S. Senate passed a one-year extension for the National Flood Insurance Program (NFIP) last evening. The House must now approve the bill and send it to President Obama to avoid a temporary NFIP shutdown after Sept. 30.

If NFIP shuts down, current homeowners cannot renew a policy, and homebuyers cannot secure a policy, which can postpone closings of flood-zone homes that require a mortgage.

Also yesterday, The National Association of Realtors® (NAR) testified to the Senate Committee on Banking, Housing and Urban Affairs on the importance of renewing the flood program, which is set to expire for the ninth time in two years. Congress has already approved eight short-term extensions, essentially punting the issue down the field.

“We are pleased that last night the Senate passed S. 3814 to extend the NFIP for one year until Sept. 30, 2011. We urge the House to immediately do the same,” said Realtor Nick D’Ambrosia, who testified on NAR’s behalf. “However, this month-to-month approach has hindered recovering real estate markets and exacerbated the uncertainty for the more than 5.5 million taxpayers who depend on the NFIP to protect them against floods.”

The House earlier passed H.R. 5114, the Flood Insurance Reform Priorities Act, which would reauthorize the NFIP for a full five years. The Senate held yesterday’s hearing to begin the process of developing a Senate response to the House reform bill.

As part of long-term reauthorization reforms, NAR supports strengthening the NFIP’s solvency through outreach and education programs that would help raise participation beyond the current 50 percent of homeowners in federally designated flood areas. The increase in participants would boost funding for the NFIP, help property owners recover from flood losses and decrease future federal assistance when uninsured properties flood and suffer loss, NAR said.

Adding types of coverage for living expenses, business interruption and replacement cost of contents and updating coverage limits – which haven’t been adjusted since 1994 –would also help increase participation.

NAR also strongly supports extending and fully funding the pilot program to mitigate properties that have repeatedly suffered insured flood losses.

“NAR urges the Senate to consider H.R. 5114 and work to strike a proper balance between the NFIP’s fiscal stability and housing affordability,” D’Ambrosia said in testimony.

© 2010 Florida Realtors®
Reprinted with permission. Florida Realtors®. All rights reserved.