Chuck's South Florida RE Blog

The End is Coming for Owner Financing!

Chuck Mixon (Choice One) — Fri, 03 Jul 2009 09:12:22 -0700

HR1728 Mortgage Reform and Anti-Predatory Lending Act

HR 1728 has already passed the House and is now in the Senate waiting on a vote to become law. The main points of the law are more protection for the consumer from the lender. Notice I said Lender not Banks or Mortgage companies, so I am including the homeowner offering Owner Financing. Some of the new requirements will be too much for a homeowner to comply with.

For example the lender will be required to provide monthly disclosures, I sure a receipt for a mortgage payment will not meet the requirements of a disclosure. I expect the minimum will be a running balance just like a credit card statement. What homeowner will be mailing out monthly running balances. The law will also encourage the use of escrow accounts for both Taxes and Insurance, something else the common homeowner is not likely willing to do.

I'm not in favor of Balloon Loans, but they do have a place in real estate just like Bridge Loans, they are there to fill a gap and were never intended as full Amortized Loans. The current $8K bridge loan made as the down payment for First Time Home Buyers is a bridge from closing until you receive your tax return, at which time you pay off the bridge loan. As for a Balloon the purpose was to keep the loan amount lower until the remainder of the loan will be paid off at a certain date in the future like after the sale and closing of a home that is currently on the market. These loans were abused and as such then new law is basically making then illegal, with the wording that any future payment may not be more then double.

I feel that the issue here is that the government is lumping together the homeowner with the Banking Industry. The common homeowner does not have the resources to provide or meet all the requirements that are currently in this bill. This will remove another source of funding from the already stalled Real Estate Market. The following link is a good source for the current status of the bill. http://www.govtrack.us/congress/bill.xpd?bill=h111-1728

A solution to the problem could be as simple as exempting individual homeowner for the law, and required professional to follow the law. What is you take on the matter?

C. "Chuck" Mixon, Keyes Company

Cutler Bay & Palmetto Bay, Florida

Florida's $8K program , don't confuse it with Uncle Sam's

Chuck Mixon (Choice One) — Wed, 01 Jul 2009 23:09:28 -0700

That is right we have two 8K programs out there, and we need to know how they differ and not confuse them. The Federal Government has offered the First Time Home Buyer a tax credit off their federal tax return, even if you don't owe taxes you will still get the up to $8K back. This offer was to stimulate the housing market. The problem was that a large percent of first time home buyers did not have the money for a down payment. They could only apply after the closing, but with out the down payment the closing would never happen.

The State of Florida Legislature created the Florida Home buyers Opportunity Program (FLHOP) to loan the same amount that the Federal Government was giving homeowner in there program, it basically a bridge loan due when the homeowner gets his tax return. So the first difference is that one is a credit the other is a loan that must be paid back.

I need to mention that one other program is available to get you down payment through Federal Housing Administration (FHA). They have a bridge loan program also but you need to still come up with 3.5% for a down payment and will also pay back when you get your refund back.

Florida's program FLHOP was suppose to be up and running July 1, 2009, but funding issues are delaying the program until Aug it looks like. So no need to rush to you Local Housing Administrator to apply for FLHOP, but you can call them and see what the process is to get the loan. Below is a link to find your local administrator. http://apps.floridahousing.org/StandAlone/FHFC_ECM/AppPage_SHIPLGContacts.aspx

It is a good idea to promote this program since once the money is paid back to the local governments, if can be kept in the and used in the local economy. So the money will serve more then one purpose in your community and that is a very good reason to spread the word.

All of the programs offer only 10% of the purchase price so if you are not buying a home for $80,000 or more you will not get the full $8K that is offered. As for the Federal Program you will need to fill out IRS Form 5404 and turn it in with you tax return. You can down load the form from this link. www.irs.gov/pub/irs-pdf/f5404.pdf

If you have any questions fell free drop you question in this form and I try and find you an answer as soon as possible. http://www.chucksellsmiami.com/contact.html

C. "Chuck" Mixon, Keyes Compay

Cutler Bay and Palmetto Bay, FL

Tax Credit could Go to $15000

Chuck Mixon (Choice One) — Thu, 25 Jun 2009 09:43:39 -0700

For those that have heard whispering about a $15000 Tax Credit, it is true. Both the House and Senate have bills introduced that expand on the current program. One of the bills introduced by Sen. Johnny Isakson a Republican from Georgia proposes an increase to $15,000 or 10% of the purchase price, to Anyone , not just first time home buyers.

Other offering are a $3000 tax credit for Borrowers who refinance. Some of the program may not get passed, since these programs are tied to the New Stimulus Package and the current price tag it sitting at $900 Billion. Once signed into law they will be extended until mid-2010, from the current programs the expire December 1 2009.

C. "Chuck" Mixon, Realtor

Keyes Company

ChuckSellsMiami.com/blog.html

Public Service Commission Meeting

Chuck Mixon (Choice One) — Thu, 25 Jun 2009 06:38:59 -0700

The PSC has scheduled 5 customers service hearing from June 24 -26, 2009. The two local meeting for Miami-Dade will be today June 25 at 4:00PM at the Miami Science Museum, and Friday at the North Dade Regional Library at 10:30 AM. For more details check the PSC News Release link below. This rate increase if approved will be an increase of about $12.40 per 1000 kwh, currently at $107.04

http://www.psc.state.fl.us/home/news/index.aspx?id=547

Charles "Chuck" Mixon, Realtor

Keyes Company

ChuckSellsMiami.com/blog.html

When will we know the bottom is here ?

Chuck Mixon (Choice One) — Fri, 12 Jun 2009 08:10:20 -0700

I just finished reading an article published June 11, 2009 by Richard Mullins a writer for the Tampa Tribune. To sum him up the market is still going down and in his word the numbers are increasing. The number of foreclosures in Tamp area is up 32% from a year ago, with one out of every192 home in some phase of foreclosure. The points out that the number are throughout Florida and that Tampa is not as bad as other places such has Homestead. I Homestead he state the numbers at 50% and 1 out of every 105 homes are effected.

I have watched condos in my area go from $200,000 to where they are selling for under 50,000 today. At the high I would never of guess that the fall would be that much or take this long, which brings me to this point. Are the actions to this point slowing down the recovery? Are the action we are doing in the industry like picking at a scab on a wound, should we stop and let it heal?

The few articles I have read the loan modifications are not working in two ways. The first way it the number of modification is not anywhere close to what needs to be effective on the current problem. The numbers I am reading are less then 10% of the numbers needed. So the program is able to reach enough that qualify, this maybe be the only good point after you heard the second problem.

The second problem is that even after the loan modifications the default rate in the first 12 month is higher then expected. With the article today form Richard Mullins can we expect those numbers to go higher? I feel that all the action that has been take to soften the blow to the Real Estate markets has back fired and we are beginning to see the results with more negative news.

What is your thought, what will it take to help this economy and stop the red ink from flowing?

Why I feel sorry for the REO Departments

Chuck Mixon (Choice One) — Thu, 23 Apr 2009 21:55:05 -0700

A day does not go by where I don't see some city or county taking action to "Fix the Foreclosure Problem". To day newspaper tells how The City of Detroit implemented a new vacant property procedure to allow the city to board up a property at the banks expense, of course they give them a warning 24 Hours. They estimate the cost at about $1200 per property.

In the same article the City of Farmington approved an amendment similar to amendment's already passed in California and Minnesota to required property owners (Banks) to register and maintain properties. Here in Florida the City of Miami requires a fee to register foreclosed or abandon property. I sure hope the last person in the property, before they abandon the property and leave will pay the fee and register it correctly.

The latest ordance to pass here in Miami-Dade County is the Certificate of Use, this will effect any forclosed or judgement properties. It requires that the owner ( Bank) have a Licinsed Engineer or Architect, inspect, document and estimate all repairs needed and code violations noted. This roughly 14 page report must then be filed in public record for all to see. The cost of the to the owner is about $2500 and up.

As an REO Department I can see that every property they handle has a different set of rules that need to be researched so as to not waste time accepting contracts the are voided at the closing table because the correct rules were not followed, please go back to step one and start all over and hope the rules don't change in the mean time.

It would sure be nice if we could all get on the same page and march to the same beat when it comes to handling Forclosured Property.

Chuck Mixon, Keyes Company

ChuckMixon@Keyes.com

What is the last word on Loan Modification

Chuck Mixon (Choice One) — Fri, 20 Mar 2009 21:22:36 -0700

The Federal Housing Agency (FHFA) just released the fourth quarter report to Congress. The main point of the report was to show what the agency has done to stop the increase of foreclosure in the housing market. They are reporting that the numbers are working it appears with the loan modification part of “Making Home Affordable” program has had a positive effect on the market with the number of loan modifications increasing as well as the number of families staying in there home as well. Make Home Affordable website you can look and see details on Refinancing and Modification. Feel safe at this website it was setup by the government to help families get the information needed to save there homes.

A day does not go by that I don’t hear someone affected by the current housing market condition. The most important think I can say on the subject is don’t wait till it is too late, the sooner you take action the better. Too often I am approached by a friend all to later when it is all over. If only they had approached me 2-3 months earlier, there are step they could have done to change a bad situation, and end up with better results.

I try and share my knowledge of the programs available to as many as possible. So if you find this information helpful please share with all your friends.

To read the full article go to the following link: http://www.dsnews.com/index.php/home/news_story/2708

This Link will ask you a few questions then tell you if you qualify for modification: http://www.makinghomeaffordable.gov/modification_eligibility.html

Also released are the trial guidelines for the Make Home Affordable program. You can get a copy at the link below:

http://www.treas.gov/press/releases/reports/modification_program_guidelines.pdf

This information provided by:

Chuck Mixon,Realtor

Keyes Company

Cutler Bay, FL

ChuckSellsMiami.com

Miami-Dade County Certificate of Use - Update

Chuck Mixon (Choice One) — Thu, 12 Mar 2009 21:00:35 -0700

(The following information is for Miami-Dade County only, and no other part of the State of Florida is effected)

Miami-Dade County passed a Certificate of Use (CU) Ordinance in December 2008. The intension was to inform Buyers of foreclosed property of the real condition not just the standard "As-Is" clause. This ordinance will only cover unincorporated Miami-Dade County, not the surrounding 30 plus municipalities. The expected effective date for enforcement of the ordinance will be April 1, 2009.

At this point the process starts after the Loss Mitigation Department (Bank) takes control of the property. A licensed architect or engineer must inspect and document that the structure is the same as the original plans on file with Miami-Dade Building Department. They will also document the condition of the structure and any repairs needed to bring the structure up to code and in compliance. This document will include an estimate of the cost for all repairs needed.

The report will be reviewed by the Building Department. Once the application and reports have been reviewed and approved they need to take the document to the Clerk's Office so that can be recorded into Public Record. With proof of recording the Building Department should then approve your Request for CU. All the steps above must be completed before the first offer can be accepted by a Realtor.

It is hoped that this ordinance will prevent future problems for potential Buyers that won't do the homework required before the purchase of a new home.

Chuck Mixon, Realtor

Cutler Bay, Florida

Keyes Sunset /Kendall

ChuckMixon@keyes.com

ChuckSellsMiami.com

Time to look back in history

Chuck Mixon (Choice One) — Mon, 09 Feb 2009 16:21:51 -0800

Well I think I will stick my head out on the line with this one. I going to say that the vast majority of professional out there free that Price drive the market. If the price is low enough someone will buy! If the price is not in range the home will will linger on the market. I agree with those statements, but feel that they are not 100% accurate. You see Price is only one part of the equation, the other side is Terms.

With the correct terms the price maybe acceptable. For example in today market some lenders will not lend on a condo project period. If the owner is will to provide Seller Financing the Buyer may be will to pay the full price, because the may save in the expenses of closing cost. With the owner offering a mortgage the buyer may feel that he is getting a better rate because of his credit and again accept a full price offer.

In today'smarket Creative Financing can open the door to deals that are fall apart. It's time to dust off the books for the 70-80's, and polish up or skills on being creative. It's time to look up and keep a list of good lenders that have Hard Money to lend. I have found Hard Money in today market with Down Payment requirements ranging from 40 to 20 down. Keep your eye open and collect the numbers of those that can help you close the deal.

Chuck Mixon, Cutler Bay , Florida

Now CASH ONLY Buyer needed!

Chuck Mixon (Choice One) — Thu, 05 Feb 2009 13:11:47 -0800

Well the time has come to stress Cash Buyers only. In less then 12 month we have mover from 3% downpayments to the extreme "cash only buyers" will be accepted. The complex I am speaking of has been RedLined by Fannie-Mae. Am I allowed to to say Redline in this industry? What do you call it when I provided the the Seller with a Pre-Qualified, Job holding willing and able buyer, how is now told that Fannie-Mae will not approve the complex so no bank will make a conventional loan. Are we look at the credit risk of the Borrower who can make the payment and wants to make the payments is out in the cold since no conventional loan are available to purchase this property.

Well since the Seller has now changed to only Cash Offers accepted. I in the market for Cash Buyers looking for 3/2 going for less then $50K in Palmetto Bay, FL. Call me since my 20% down buyers and I are looking for new properties that will take 20% as a downpayment. Seriously check out you market, make sure the property you are going to show is FHA approved, and meets Fannie-Mae Guidelines, so that you can get a loan for your buyer. I have been doing this for awhile and it worked well, not wasting time show listing that were going to fall apart later in the deal. The problem here is that South Florida is changing so fast that the rules were changing almost daily, remember 97% loans to cash only in about 8 months. So share information in the off as things change so you know how to handle each complex in your area. As for the future it looks worst not better I see tighter money for Condo in the future, yes tighter then CASH ONLY. You may ask how so, I feel more complexes will be added to the growing list that now stands at maybe 20% of the market.

New Condominium Governance Form Requirement in Florida

Chuck Mixon (Choice One) — Thu, 01 Jan 2009 18:03:35 -0800

As we bring in the New Year so do we bring in the new laws and new requirments of 2009. Florida Law Makers see a need to require a document, notice I did not say form, that will become reqired as part of the paper work of any sale that deals with an association. The document is 5 pages that explains in detail all the rights and obligations of the seller, buyer and the association. From reading the entire document I can not see where any laws have changed, so it appear to me that the new law is basicly provideding a disclosure to all parties involved in the transaction.

I will say that it clears up any questions as to who must do what when. Afew example is that the property owner must provide to the association if requested byt the association proof of insurrance. If proof is not given to the association, the assocation can then purchase insurance coverage to protect the property.

You can read the complete document at the following link: http://www.chucksellsmiami.com/usefuldoc/condogovernanceform.html

Next Blog we will take a look at the new reqirments taking effect later this year with Citizen Insurance

Chuck Mixon

Keyes Company

chucksellsmiami.com

How do you define Buyers Market?

Chuck Mixon (Choice One) — Tue, 29 Apr 2008 20:14:32 -0700

At lest once a week I am asked if it is a good time to buy? I do my best to to convince them the that there is no better time then right now. Is it the very bottom, no one can answer that on the exact day the market hits the bottom. I can say the the market in some areas has corrected very close to 50%, and now is priced in a range where most families can buy there first home.

The most important thing I stress is that they don't make the same mistakes that were made in the past. Don't speculate with you home purchase, make sure you know what you are buying and how you will be paying for it. Don't get a surprise that you never expected such as unexpected mortgage payment increases, Higher Taxes than you planned for or any other expense that will put you in a position of possible foreclosure.

Last week the Miami Herald had a front page story about troubles with condo association paying the bills because in some situations 90% of the unit owners are not paying the home owners fees. This means that 10% are left to cover the bills for the entire community, the fee can increase four or five hundred percent just to cover the bare minimum. This increase has now push some home owners in this situation into foreclosure because they are not able to keep up with the new fees. Is it far to them to charge them for all the other non payment? Someone need to cover the expenses of the association. These are the examples of unexpected surprises.

So to recap I show them that the market has moved down in a very dramatic manner. I explain the loan process and types of loans and stress the need to know the loan produce completely before signing the dotted line. The last last thing is location, location, location. Know the area that you are planing to buy in and if it is a condo learn about the association, and get involved. If things are not looking right do the research and take action.

I have been surprised at the interest in todays market, and even more surprised at the interest in the detail of the market, such as mortgages. This is probably because of the high number of current foreclosures in todays market. The customers seem to know that then have a source for any question from a professional that can get them the answers. Once I have gain there trust it is much easier to work with them and the result can bee seen.

What No Pictures?

Chuck Mixon (Choice One) — Sun, 27 Apr 2008 17:34:05 -0700

Today everyone is going high-tech, as we can see here on active rain. The latest courses being offered at the local boards are about Bloging, Search Engines and getting a Internet presents. It is an exciting new world for the Real Estates Industry. I can say that my plate is full with new opportunities using this new technology.

I am also surprised in the number of listing that have zero pictures and 80% of the amenities are blank. I try my best not to skip over these listings since I just may find that diamond in the rough for my customer. Every I come across a blank listing and do my homework and check it out more I pretty much find the same thing, the poorly listed home does not show well and the listing are not even in the market. I still get more excited when the search finds home that are match my criteria and then have some meat and bone in the listings.

I feel it will be an up hill battle, if not an impossible transition to the high-tech world for the agents that can't upload picture or even fill out the amenities, who will they ever set up a web-page or write a blog. The time is coming where 90% is started on the Internet, and if these agents don't join the system soon they will be left out.

I'm not sure why someone would buck this trend since it has made our jobs so much easier. I can remember the day of searching the MLS by books 3inches thick, and send photo off to be added to the listings. No day if you see a error in your listing you do need to wait till the next book come out to see the correction, you can take action and see the results most of the time right away. So why would anyone not want to get on the band wagon?

How do we stop the bleed?

Chuck Mixon (Choice One) — Tue, 22 Apr 2008 16:07:59 -0700

Today in the Miami Herald, http://www.miamiherald.com/ one more problem is taking front page for South Florida condo owners. It seems that an increasing number of condo owners are not paying the association fee, this put the remaining owners in a very tight squeeze. In a very extreme case 90% of the owners are not paying their fees. This has caused the associations to cancel services, postpone maintance and in some cases drop insurance coverage.

The result is the fees are increasing to the remaining few to the point that current owners are not able to keep up with payments and defaults to this group are increasing, creating a new wave of non-payments and forclosures. The article stated that some banks are even failing to pay the fees, Florida law states that the banks are responible for fees for both the curent as well as the past fees up to 1% or six months which ever is less.

The lack of fees is lowering the value of the condos accross the board for both the condo owners and the banks as well. It is very important to maintain values for everyones benefit. It is also important to act quickly to stop the losses and turn the situation around as soon a s possible.

I maybe wrong in my logic but it seems to me that the association are better forclosing and stop the bleeding of non payment of fees within 6 months or sooner. This way you at least have a chance of the new owner paying the fees, and if they do not pay it is back to forclosure again until you find someone that will pay long term.

Am I correct in this logic? Am I missing something between the lines?

Cutler Bay, FL Market Snap shot

Chuck Mixon (Choice One) — Sun, 30 Mar 2008 20:06:41 -0700

March is on the way out the door, and April is bringing in more activity. The problem of finding a buyer is starting to fade. February and March saw a pick up in the number of buys testing the waters, the number of offers also increased. The final numbers I'm sure will show an increase for this area.

The one reason I feel the buyers are out and looking is the larger number of Bank-owned properties that have showed the largest drop in market value compared to the Owner-occupied sellers. The Bank-owned properties are down from there peaks by about 30-40% while the Owner-occupied are down 15-20%. The current buyers are looking for good deals and as such are more interested in the Bank-owned for the bigger drops. The FSBO is still feel the pain of no offers on the table.

I feel that later this summer the market will pick up for every type of property across the board. The great deal will be gone and off the market and the public will see the market numbers picking up and the confidence will return to the market. I encourage anyone that has an interest not to wait but to start looking early and be ready when the time is right.

South Florida Market maybe changing

Chuck Mixon (Choice One) — Sat, 22 Mar 2008 11:10:38 -0700

Here in South Florida the market has been in a clear down trend for the past 24 months. Inventories are up and the closed sales are down. The one thing I have noticed in the past month is that the buyers are out looking, I have been on two showing in the past week where someone driving by was interested in a house that I was showing another customer and asked to look in. Big difference from a few months ago where open houses for 4 hour drew a big ZERO at the end of the day.

It is also common knowledge that the rental market has become very hot since the Sub Prime market took a lot of homeowners by surprise and made them homeless. I not sure if this sudden interest in homes is the group that 12 months ago were foreclosed and the credit rating looks like some of the homes out there Vacant. Time will tell, but I can say for the time being customers are out there.

No stimulus package for South Florida

Chuck Mixon (Choice One) — Mon, 10 Mar 2008 16:26:59 -0700

Well Congress has spoken and the Big Spending Package for South Florida is a whopping 1.6% increase or $6,700 dollars. Yes you heard that right the jumbo loans amounts have increased from $419,000 to $423,750, if you plan to borrow more then this plan to pay a higher interest rate, as much as one percent more. This maybe a good time to buy but Congress has not joined our party.

In the long run this could help slow the run away housing prices in this market. Only time will tell. Just this month for the first time in the past 24 months the median price of home in Miami-Dade has dropped from the low $300 thousands into the high $200 thousand range. The market has started pick up lets see if the move by Congress will not scare off any buyers in the near future.

Are we really insured here in Florida?

Chuck Mixon (Choice One) — Fri, 29 Feb 2008 09:55:13 -0800

I just finished reading an article in the Miami Herald http://www.miamiherald.com/business/story/438339.html and then ask myself why am I buying insurance. The answer was for financial protection from a major hurricane, so that I would not have to pay an excessive amount that I could not afford after a storm. Our lawmaker here in Florida changed the 2006 Insurance Law so that if they were unable to pay claims they could assess policy holders any where from 30-90% of the annual premium. Before this other insurance companies were assessed the amount needed to pay claims, that was the risk the companies took sell insurance in Florida. Now this risk has been placed on the home owner, who purchased insurance just to prevent this unexpected expense.

The break down on how pays what is pretty straight line, each assessment could be as much as 30%. With multiples attached to different types of properties. The highest is Business with a 3X or 90%. Non home stead and Snowbirds 2x or 60%. they say there thinking is that out-of-towners benifit from the state run insurance program so they should pay MORE! As for all of us policy holders the Lawmakers feel since we are the no benefiting from the insurance we should be tapped for the cash first. I don't know why but i just can't understand their logic, and probably never will.

Citizens say its exposer in the market is $485 Billion and it currently has $9 Billion in the bank to cover losses. All you have to do is Google "Cost of Katrina" and the numbers are there $200 Billion is the cost to the United States government. Any CAT 5 storm that hits a major city in Florida will drain the citizens cash overnight. So the question are we Really Insured here in Florida? Why are the large insurance companies still on the hook to bail out the State insurance fund if needed?

I'm interested in finding out your take on this matter. Do you agree with the lawmakers in this matter? Are there other issues out there that have not surfaced yet?

Sign of the times, Foreclosures

Chuck Mixon (Choice One) — Thu, 28 Feb 2008 22:06:41 -0800

Late in the morning I had a buyer walk into the office looking for s very specific area. We started on the computer and and found about a dozen homes, which we narrow down to 3 homes by lunch. We then agreed to get some lunch and get back together at 2PM, and I would also try and schedule the 3 showings for the afternoon.

All went well and and we got to see all three homes. The buyer was buying a second home within walking distance of his home, so that the son , daughter-in-law and grandkids were close by. Everything was going good until we finished the last walk through. We had just walked though 3 Bank-owned properties. The buyer looked a bit unhappy, I ask him what he thought about the homes. He answered with a question "Are there any homes not in foreclosures in this neighborhood?" Before I could answer the question he made on more comment "I did not realize that my neighborhood had dropped this much in value!

What i did not realize is that the home owners sometimes do know what is going on in their own backyards. If he we selling his home, he would think that his home was worth 30% then then the current market. So the next time work with the sellers I will make every effort to document the number of foreclosures not just the standard CMA numbers I normally use.

Chuck Mixon

The Keyes Company

Cutler Bay, FL

The time is NOW!.... To look at the South Florida Market.

Chuck Mixon (Choice One) — Sun, 24 Feb 2008 18:11:13 -0800

My last blog said it all with one single chart showing "The ugly picture of the market" . For the past few week the phone have been busier and the traffic has picked up some. So I decided to to take another look at the current situation and see if there was some positives to learn for this.

The first thing that I noticed is that the investors who were always there looks to get a steal, and tell you to call them with any great deal I may have for them. They were now calling me asking about the same deals I told them about 6 months ago, and is till on the market. One customer of mine called and ask why it is still on the market and I smiled and said because you have not put an offer in on it. He looked at an put an offer in, time will tell if it is excepted. I had called him 4-5 months ago on at least three listing and he was not ready, but in todays market something has peaked his interest. It is my feeling that the market has slowed down so much that now he can his Realtor, Banker or any of the many professionals involved in Real Estate who are very hungry for business from able and willing buyers. Those professionals currently have empty offices and are willing to talk business.

I also feel that even though I said in my last blog that the listings and the sales gap is getting larger, it will not last for ever and can not go that much farther. The South Florida market will not disappear completely. Just like all expansion is followed by contraction. The South Florida market is high priced to the average person living in this local market. If this situation is not corrected naturally, which the market is doing now, we could loss local business to the fact that high local housing prices have made it hard finding local affordable labor. So everything we see in todays market is natural and must correct itself, and should be very close to an end. As I said earlier we do have signs the the business is picking up.

Can you guess the last thing that is no longer in the picture? Hint look left then look right. Notice the empty desk and chairs in your office and all the other offices around town. The gravy is no more now the remaining work out there is for the few agent that are left. It will be enough to pay the bills, but the bad apples are GONE! The hard working one are here for the next roller coaster ride up. So what is left is the Good Hard Working agent that can make a living in this market or any other. So hang on tight we are on the ride UP on this coaster!

Chuck Mixon

The Keyes Company

Cutler Bay, Florida

Don't forget to remind your Florida customers!

Chuck Mixon (Choice One) — Tue, 19 Feb 2008 16:33:21 -0800

A last minute reminder for Florida Realtors who had customer(s) that purchased and sold a home last year. They only have until March 3 2008 ( March 1 falls on Saturday) to fill out an application for Amendment 1 Portability. Even if they know its a great way to keep in touch and show them you are there to help them and that is part of the service we Realtors provide even after the closing. Not all agent go that extra step and this will make you stand out in the crowd! I sent out an e-mail to my customers from a 2007 contact list.

Next week I'll talk about the Insurance woes in the South Florida market.

The ugly picture of South Florida Real Estate

Chuck Mixon (Choice One) — Sat, 16 Feb 2008 15:04:35 -0800

The chart below is current as of this month. What it is showing is the number of listing on the market (Green), the average price per sale(Yellow), the number of new listings add(Red) and last the number of listing sold (Blue) in the past two year on a monthly period. Two of those line paint a very scary picture of the future, can you guess which two?

The Green line is the inventory of homes in the MLS back in June 2006 we have a inventory of about 2000 home and were closing close to 500 deals a month according to the Blue line that means we would see the entire numbers of homes in the MLS inventory with in less then 6 month. Today the number are 6500 home in the MLS and the sales have dropped to less then 25 closed. At this rate we have a 10 years supply in the MLS. One last look at the chart the inventory is still rising and the sales are still dropping, the gap is still increasing.