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Tag Archives: Florida and Pinellas market news

Downtown St. Pete's Coolest Looking Building Signature Place

61 units sold at Auction in 2 hours most selling for 40-45% above the starting bid. Who said downtown St. Pete wasn’t an exciting place?

The only remaing “B” floor plans units for sale are on 8th and 9th floor with none of these upgrades or view, this 20th floor “B” floor plan with 2 beds and 2 baths with 2 parking spaces and 1,447 sq ft is a incredible deal.

Signature place in downtown St. Petersburg is, in my opinion, one of the best looking buildings downtown. The location is perfect, water views, in the heart of the action for restaurants, shops, movies, grocery stores and best of all front row seats to the St. Pete Grand Prix!

This B floor plan has many custom features including an expanded master bedroom with wood floors and large flat panel TV, tile in the living, dining and kitchen upgrades, jetted tub in the master bedroom with walk-in shower, flat panel TV in the living room. 24 hour security, Community Heated Pool, Community Hot Tub/Spa, 2 Modern & Fully Equipped Hospitality Rooms, Fitness Center, Infinity Edge Pool, 6th Floor Outside Garden Deck, Private Cabanas, Storage, Pet Friendly. Maintenance Includes: Building Exterior, Cable, Escrow Reserves, LAWN, Manager, Recreational Facilities, Roof, Security, Trash Removal

We are setting up private showings now to view this custom unit. Call David Price with the Price Group at Coldwell Banker today!

Fannie Mae Approved Condo List Florida

Here is the updated list from Fannie Mae on PERS approved condos as of March 1st. There are a few additions to the list since December. If you remember, Fannie Mae has a task force dedicated to examining projects across the State to get them appoved. Once approved it allows us to do 80% financing on a conventional basis, for not only owner occupied buyers but 2nd home and investor buyers as well.

Click on this link “Fannie Mae Condo Approval 3-01-10”

Let me know if you have any questions.

John Fenech
Sunbelt Lending Services
Regional Loan Manager
Ph: 800-858-5674 or 727-827-1818
Fax: 856-917-2610

Banks are forcing values down by using Short Sales

http://www.DavidPriceRealtor.com. What are the banks thinking today? Banks are more conservative than ever and are forcing property values down in stable neighborhoods.

I understand banks trying keep their equity position high and prevent further losses, but allowing appraiser to use “Short Sales” as comps in a an arms length transaction is crazy.

Buyer’s who buy short sale homes are looking for a deal and they often get one, discounts as much as 10-30% or more in some cases, I’ve seen banks sell homes to investors who then flip the home and make a profit so I know what is going on. Freddie Mac has a policy that they will accept an offer on a short sale if it’s within 77% of the BPO or appraisal value, which is great for the buyer who has waited 4-9 months to get an answer from the seller’s bank.

Where this breaks down is the poor homeowner next door, who has been paying his mortgage on time for years, and now, his property value just got flushed because appraisers are told to uses these short sales and not make adjustments.

Banks are missing the big picture, right now homeowners who maybe upside down with their property values, but are making payments are thinking and being advised to stop making payments, take a hit on their credit and get out why so many others are doing the something!

Appraisers need to not use short sale or make an adjustment anywhere from 10-30% so they don’t bring down values of non short sale homes anymore!

FHA Financing Requirements – The Changes to FHA Financing Requirements For 2010

OK, there are some interesting changes which will take pace later this year to FHA financed loans. The government has been facing higher defaults with FHA insured loans over the past couple of year’s, in order to build up reserves they are making some changes.

If you are looking to buy a home using FHA financing the window to closing and avoid higher fees is closing quick.

Also, I hear the government is going to adjust the key interest rate at which they loan money to banks this will adjust the interest rate you will be able to get when buying a home. Just a 1% jump in interest rates, is like seeing a 10% increase in the price of a home. My advice would be don’t delay, if you find a home you love and plan on living there for 3+ years you should buy now.

Future changes with FHA:

FHA financing requirements, change from time to time to match the market and the risk of loss. Since the collapse of the financial markets in 07,08 FHA financing has been the primary source for home buyers to obtain a real estate loan with a low down payment. This is the reason for the changes you are about to see.

Imagine the market slips by another 5-10% and the unemployment numbers go about 10%, many borrowers who used FHA financing in the past 3-4 years could find them selves in foreclosure or needing to do a short sale to get out of their home because they have little to no equity in their home. FHA being the #1 source for finding for these low down payment loans could find them selves in a very bad situation. The tax payers could also be facing another bailout. So in order to protect government backed loans and us the tax payers these are the latest rounds of changes.

Initial up-front MIP increase will be raised by.50 to 2.25% will be released in a Mortgagee Letter tomorrow Jan 21 and will go into effect in the spring (example $200,000 loan will now costs the borrower $1,000 more, this is to help cover the losses already seen by FHA)

Borrower will be required to have a min credit score of 580 to qualify for 3.5% down, if score less than 580 must have 10% down this will go into effect in early summer

Seller concessions will be reduced from 6% to 3%, will be posted in February will go into effect in the early summer.

Lender performances, Neighborhood watch will be available on HUD website on February 1

Enhanced monitoring of lender performance, implement credit watch termination through lender underwriting ID in addition to origination ID will be released in Mortgagee Letter tomorrow Jan 21 and is effective immediately

Pursuing authority to increase enforcement on lenders to assume liability for all the loans they originate and underwrite

Legislative authority permitting HUD flexibility to establish areas of review and termination to withdraw originating and underwriting approval for lender nationwide on the basis of the performance of its regional branches.

FHA financing is still the only program that allows a borrower to purchase a home with 3.5% down payment. These changes could effect your ability to qualify for a loan so check with your lender to make sure you will meet the minimum requirements before you make an offer.

Lifelines dry up for mortgage lending

Jan. 25, 2010 – For more than a year, the government pulled out the stops to revive homebuying by driving down mortgage rates.

Now, whether the housing market is ready or not, the government is pulling out.

The wind-down of federal support for mortgage rates, set to end in two months, is a momentous test of whether the Obama administration and the Federal Reserve have succeeded in jump-starting the housing market and ensuring it can hold its own. The stakes for the economy are massive: If the market again falls into a tailspin, homeowners could face another wave of trouble, and it would deal a body blow to President Obama’s efforts to get the economy on track.

Keeping the mortgage rates at historic lows, which required a commitment of more than $1 trillion, was viewed within the administration as a central plank of the economic strategy last year, senior officials said. Though the policy did not attract as much attention as rescue efforts to bail out banks, it helped revitalize homebuying in some parts of the country and put money in the pockets of millions of homeowners who were able to refinance into lower monthly payments, the officials added.

“We did what we thought was necessary to stabilize the market, but we don’t think the government should continue special efforts forever,” said Michael S. Barr, an assistant secretary at the Treasury Department. “As you bring stability, private participants come back in. We do expect this now that the market has stabilized. I’m not going to say there will be no effect on rates, but we do think you are seeing market signs and market signals that there should be an orderly transition.”

A few federal officials and many industry advocates disagree, saying the government is exiting too soon. They offer dire warnings of higher rates and a slowdown in home sales. Fed leaders say they will end a marquee program supporting the mortgage markets in March. Obama’s economic team, led by Treasury Secretary Timothy F. Geithner, has decided not to replace it and has been shutting down its own related initiatives.

Over the past year, these programs have enabled prospective homebuyers to get cheap loans, helping those buying and selling property as well as those eager to refinance existing mortgages. If the end of the initiative drives up interest rates, say from 5 percent to 5.5 percent, homeowners could be deterred from refinancing, industry officials say. A sharper increase in rates could make homes too expensive for many buyers, forcing them from the market and causing the recent pickup in home sales to stall.

“Mortgage rates are the lifeblood of the housing market, and we have cautioned the Fed about the sudden stoppage of this program,” said Lawrence Yun, chief economist of the National Association of Realtors.

But senior government officials said it could be hard to reverse course without damaging the credibility of the Fed and the administration. If the government loses the trust of the financial markets, preparing them for policy changes could be tougher, possibly resulting in economic disruptions. The officials said they also worry that the mortgage market is becoming overly dependent on federal support, inserting the government too deeply into private enterprise.

Only a new crisis would be able to persuade the administration and the Fed to change their minds, officials said.

“This is a worthy experiment to see if they can begin exiting after providing an unprecedented amount of money to one sector of the economy,” said Mark Zandi, chief economist at Moody’s Economy.com. “It’s a close call, though. I can see why they are debating it.”

The Fed’s policymaking body sets a key interest rate at periodic meetings, which in turn influences rates for all kinds of loans. But mortgage rates also are shaped by the health of the market financing these loans.

Banks typically create giant pools of home loans and turn them into securities that can be traded on the open market. When the system is working, many investors buy these mortgage-backed securities, providing a stream of money for lenders so they can make loans at relatively cheap rates. But the trading of these securities seized up when the financial crisis struck and panicked investors. Government officials feared that the mortgage market would collapse.

The Fed and the Treasury stepped into the breach, becoming the only major buyers of these mortgage-related securities, and they kept the mortgage market flush with cash. The Treasury spent about $220 billion, and the Fed pledged $1.25 trillion, the single largest foray the central bank has made into the markets since the onset of the crisis. In essence, the Fed has been printing money and funneling it to people looking to buy a house or refinance an existing mortgage.

At the same time, the federal government stood behind mortgage-finance companies Fannie Mae and Freddie Mac by taking them over and pledging to cover their losses. That helped the firms lower borrowing costs, since lenders know they can’t fail, and the companies passed on their savings to mortgage borrowers in the form of low rates.

Combined, these federal efforts helped push down the rates ordinary Americans pay for a mortgage. The 30-year fixed-rate mortgage declined from 6.04 percent in November 2008, according to Freddie Mac data, and hit an all-time low of 4.71 percent about a year later.

Refinancings surged, while homebuying perked up. Existing-home sales climbed nearly 10 percent in September, their highest level in more than two years.

The policy was the government’s most effective salve for the ailing housing market at a time when other initiatives, such as the administration’s attempts to modify the mortgages of struggling homeowners, produced far more disappointing results.

Now the government wants to end its support for low rates and has been striving to persuade others to buy mortgage securities.

The success of this approach hinges on the willingness of private investors, from China to big Wall Street funds, to buy large amounts of the mortgage securities and fill the void left by the government.

On Christmas Eve, Treasury officials announced a move that would cover losses suffered by investors who buy these securities from Fannie Mae and Freddie Mac, which together now back about half of the nation’s $12 trillion mortgage market. The goal was simple, officials said. They wanted private investors to be reassured that mortgage securities are safe to buy.

As the economy showed signs of recovery at the end of last year, the administration and the Fed decided to end their support.

The Treasury stopped buying mortgage securities in December. The Fed said it would taper off purchases gradually, ending them by March 31.

Obama’s economic team could have raised the limits on how much mortgage securities Fannie and Freddie can buy, allowing those firms to replace the Fed’s purchasing program. But Barr said the administration thinks the mortgage business will stand on its own without such special assistance, similar to the way the nation’s biggest banks weaned themselves off federal bailout funds by raising private capital.

“The basic goal is to implement a gradual process where the government’s role in the economy goes down,” Barr said. “It has to be consistent with the basic goal of stability, but it is appropriate.”

Administration and Fed officials expressed confidence that rates will rise only modestly – perhaps a quarter of a percentage point. They attribute their optimism to the lengthy notice they have given the market. The markets already should have anticipated the government’s exit by adjusting interest rates higher. Yet mortgage rates have been falling slightly the past few weeks.

The optimism at the White House and the Fed, however, is not shared across the government. A few senior policymakers at the central bank view the economic recovery as still too fragile, suggesting that purchases perhaps should expand further. These dissenters also warn that mortgage rates could shoot up, perhaps to 6 percent or higher, because private investors buying securities would demand a greater rate of return than the Fed. To reach it, lenders may have to raise rates for consumers.

“Presumably, there is pent-up demand from the private sector, but the question is: At what rate are they going to be interested?” said Eric S. Rosengren, the president of the Federal Reserve Bank of Boston, who has indicated that he supports expanding the Fed’s mortgage securities purchase program.

There also could be unintended consequences to the government’s pull-out. Last year, big investors such as Pimco sold their mortgage-backed securities to the government and used that money to buy bonds and stocks. That extra cash, which propped up stock prices, could drain away after federal support ends.

Real estate and mortgage finance officials said the timing of the government’s exit seems especially ill-conceived, since the Fed’s support would end just a month before a homebuyer tax credit program, which the real estate industry has credited with jump-starting home sales.

Given the importance of the housing market, some industry officials doubt whether the government will follow through with its pledge to exit the mortgage market in March. Fannie and Freddie officials say that the companies together can buy about $300 billion of mortgage securities by the end of the year before they hit their federally mandated limits. Though it appears reluctant to do so, the administration could use that buying power to cushion the blow after the Fed’s program ends, the industry officials said.

“I believe they do want to end it in March, but it’s like all New Year’s resolutions,” said Mark Vitner, a senior economist at Wells Fargo Securities. “The Fed’s New Year resolution is to go on a diet, go to the gym, give up drinking and clean the garage. They might be able to do one of those things, but to do all four is tricky. They have to drain all the liquidity they added to the financial market so we don’t see a resurgence in inflation, but do it in a way so that the economy does not slip into recession.”

Florida’s existing home, condo sales up in December 2009

Jan. 25, 2010 – Florida’s existing home sales rose in December, marking 16 months that sales activity has increased in the year-to-year comparison, according to the latest housing data released by Florida Realtors®.

Existing home sales rose 33 percent last month with a total of 14,630 homes sold statewide compared to 11,013 homes sold in December 2008, according to Florida Realtors. Statewide existing home sales last month increased 4.3 percent over statewide sales activity in November.

Florida Realtors also reported a 91 percent increase in statewide sales of existing condos in December compared to the previous year’s sales figure; statewide existing condo sales last month rose 22 percent over the total units sold in November.

Seventeen of Florida’s metropolitan statistical areas (MSAs) reported increased existing home sales and higher condo sales in December. A majority of the state’s MSAs have reported increased sales for 18 consecutive months.

Florida’s median sales price for existing homes last month was $140,400; a year ago, it was $155,300 for a 10 percent decrease. Housing industry analysts with the National Association of Realtors® (NAR) note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in November 2009 was $171,900, down 4.4 percent from a year earlier, according to NAR. In California, the statewide median resales price was $304,520 in November; in Massachusetts, it was $285,000; in Maryland, it was $245,569; and in New York, it was $210,000.

According to NAR’s latest outlook, home sales are seeing a boost from the federal homebuyer tax credit. “There are many more potential buyers who can enter the market in the months ahead,” said NAR Chief Economist Lawrence Yun. “Activity should ramp up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. In all, 4.4 million households are expected to claim the tax credit before it expires, and balance should be restored to the housing sector with inventories continuing to decline.”

In Florida’s year-to-year comparison for condos, 5,968 units sold statewide last month compared to 3,132 units in December 2008 for an increase of 91 percent. The statewide existing condo median sales price last month was $107,000; in December 2008 it was $130,300 for an 18 percent decrease. The national median existing condo price was $178,000 in November 2009, according to NAR.

Interest rates for a 30-year fixed-rate mortgage averaged 4.93 percent last month, significantly lower than the average rate of 5.29 percent in December 2008, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s larger markets, the West Palm Beach-Boca Raton MSA reported a total of 849 homes sold in December compared to 638 homes a year earlier for a 33 percent increase. The market’s existing home median sales price last month was $247,900; a year ago it was $246,000 for an increase of 1 percent. A total of 763 condos sold in the MSA in December, up 45 percent over the 527 units sold in December 2008. The existing condo median price last month was $111,400; a year earlier, it was $112,900 for a decrease of 1 percent.

December 2009 MLS Stats for Pinellas County FL

Lot’s of great info here! Take a look at the number of active homes on the market today compared to the past couple of years. The median home price is also on the rise. If we see the unemployment rate go down we could see a much faster recovery in Pinellas County. The number of bank owned homes is also on the way down! Does this mean the end of the great deals? I don’t think so. I’ve seen some great deals in the past few weeks! Like mutiple 3 & 4 bed, pool homes in Clearwater for under $130,000!

Click on the links below and view the pdf. files.

Pinellas December 2009 All Reports: “Condo’s & Single Family”

November 09 monthly foreclosure &short sales report

You still have time to negotiate and buy a “Short Sale” property before the $8,000 first time home buyer tax credit and the $6,500 move up credit runs out! But don’t delay because what I experienced last year was at about 60 days before the end of the tax credit sellers of non “short sale” homes got a higher sold price to list price percentage because they negotiated harder with buyers because they knew that they had the only homes buyers could close on and still get the credit! The morale of the story here is if you want negotiating power, start early.

Have questions? Call or Email me

High court: Mediate on foreclosure

TAMPA, Fla. – Jan. 5, 2009 – Florida homeowners facing foreclosure may soon get one last chance to negotiate with lenders trying to take back their homes.

The Florida Supreme Court issued an administrative order last week that requires a third-party mediation program with all new foreclosure lawsuits involving primary residences.

The goal of the order, written by Chief Justice Peggy Quince, is to help handle the state’s glut of foreclosures. An estimated 456,000 foreclosure cases statewide are clogging the court system, she said.

Florida has the third-highest mortgage delinquency rate in the nation, according to the order. “The crisis continues unabated,” Quince wrote.

The order backs a recommendation made in August by the Supreme Court’s residential task force. The court asked the task force to study the problem and offer guidance.

“I’m pleased the court recognized the need of what the task force asked for,” said Alan Bookman, a task force member and former Florida Bar president. “This is going to force lenders and borrowers to talk to each other. They may not be able to work something out, but it’s a start.”

Lenders have spoken out against mandatory mediation and said it would cause even more delays. Alex Sanchez, president and CEO of the Florida Bankers Association, told the Tribune in August that lenders already are in constant touch with borrowers and file foreclosure cases as a last resort.

Sanchez could not be reached for comment Monday.

The mediation order will be executed through the chief judges of Florida’s 20 judicial circuits. Bookman said he expects the program to be in place by mid-February.

The program requires sending all cases involving primary residences to mediation unless the plaintiff and borrower have already done so or both parties agree to opt out.

The cost of mediation is not to exceed $750, according to the order. Lenders would pay the fee initially, though they could recoup some costs if mediation fails and a foreclosure lawsuit is filed in court.

It’s unclear on what date the mediation requirement kicks in, but it does not apply to cases already in the pipeline, Bookman said.

The order likely will apply to cases filed after the chief judges sign orders for each circuit, Bookman said. However, the chief judges could assign a different date.

“They could make it affective for cases filed this week, when the order was signed,” Bookman said.

Most areas of Florida continue to see a rise in foreclosure filings.

However, the Tampa-St. Petersburg-Clearwater metro area recently saw overall foreclosure filings slow. The November number dropped 9 percent year-over-year and 1 percent from the previous month, according to RealtyTrac, a California company that tracks mortgage activity.

Even so, the area has been rocked by foreclosures. The category of filings known as new foreclosure lawsuits increased in November, from 31,380 the month before to 32,276.

Homebuyer Tax Credit

Real estate Tax credit chart $8,000 & $6,500


Thanks to the newly extended and expanded homebuyer tax credit, first-time homebuyers may still qualify for an $8,000 tax credit and existing homeowners may qualify for a $6,500 tax credit when they buy a new home. That’s a guaranteed federal tax credit that directly reduces the amount of taxes you owe for the entire year. Even if you have little or no federal income tax liability to offset, you may be able to claim the full $8,000 or $6,500 as a refund.
You may qualify for the newly extended $8,000 federal tax credit if*:
You are a first-time buyer or have not owned a home for the past 3 years
You make $225,000 or less if filing as a couple ($125,000 or less if filing single)
You enter into a written contract for sale before May 1, 2010 and close on the new home before July 1, 2010
You don’t sell the home within 3 years of closing
You use the new home as a principal residence, which can be a single-family home, condominium or townhome
The purchase price of the home is $800,000 or less and you did not buy it from a lineal ancestor or descendent
You are not claimed as a dependent on someone else’s tax return
You may qualify for the newly expanded $6,500 federal tax credit if*:
You are an existing homeowner who has owned and lived in your home for any 5 consecutive years out of the last 8 years
You make $225,000 or less if filing as a couple ($125,000 or less if filing single)
You enter into a written contract for sale before May 1, 2010 and close on the new home before July 1, 2010
You don’t sell the home within 3 years of closing
You use the new home as a principal residence, which can be a single-family home, condominium or townhome
The purchase price of the home is $800,000 or less and you did not buy it from a lineal ancestor or descendent
You are not claimed as a dependent on someone else’s tax return