I received this from SunTrust Mortgage today:

Mortgage Rates Improve

While the headlines were focused on the poor performance of the stock market, mortgage rates improved moderately during a volatile week. Mortgage rates were helped by a couple of factors. Seeking to reduce risk, investors sold stocks and moved the funds into relatively safer Treasury bonds and government guaranteed mortgage backed securities. In addition, slower economic growth and lower energy prices reduced expectations for future inflation. More good news for the housing market came from the September Existing Home Sales report, which rose 5.5% from August to the highest annual rate since August 2007.

Another important development was a decline in Libor rates during the week. Libor rates are viewed as a primary indicator of credit market conditions. They are also an important benchmark for setting the rates on many consumer loans, including adjustable-rate mortgages. Libor rates shot higher during the credit crisis when financial institutions became reluctant to lend money to each other. The broad series of recent government actions brought Libor rates down closer to more normal levels.

A series of government officials made statements during the week, including Fed Chief Bernanke, former Fed Chief Greenspan, Treasury Secretary Paulson, and FDIC Chairman Bair. The common theme is that the government is ready to take further actions as needed to support the economy and financial markets. Broad support was seen for a second fiscal stimulus package. The decline in the housing market was a key factor in causing the credit crisis, and many proposals are under consideration to help stabilize the housing market and prevent foreclosures. The bottom line, though, is that it will take some time for economic conditions to improve.

Also Notable:

• Inventories of unsold homes decreased in September
• Bernanke supports a new fiscal stimulus package to boost the economy
• Major US stock indexes fell to the lowest levels in over five years
• Oil prices fell as low as $63 per barrel, down from $147 per barrel in July

Week Ahead

The biggest event next week will be Wednesday's Fed meeting. Investors have priced in a half-point rate cut, and they are waiting to see if the Fed will take any other actions to boost the economy. The most important economic data will be Thursday's Gross Domestic Product (GDP) report. GDP is the broadest measure of economic activity. In addition, New Home Sales will come out on Monday. Durable Orders, another important indicator of economic activity, is scheduled for Wednesday. Personal Income and Chicago PMI will be released on Friday. Consumer Confidence and Consumer Sentiment will round out the economic data next week.

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Data Statistics for Duval County from September 28, 2008 - October 28, 2008

Active Residential Listings in Jacksonville:  7,384

Pending Residential Sales in Jacksonville:  591

Residential Sales in Jacksonville:  434

Average Days on Market: 121 days for Active Residential listings
                                                  101 days for Residential listings sold 

Median Sales Price:   $157,950 for Active Residential listings
Median List Price:      $177,750  

Sales Price:
Least-Expensive Single Family Residence Active Listing:  $61,900                                                   Least-Expensive Condominium Active Listing:  $65,000                                                                      Most-Expensive Single Family Residence Active Listing:  $10,000,000
Most-Expensive Condominium Active Listing:  $2,750,000
Price Point with the Most Listings:   $100,000-$200,000 in Residential listings (3,122 listings)

Average number of units sold in Jacksonville this year:

Here are the latest charts for residential properties in Jacksonville...

Average Price:

 Average Days on Market:

It looks like there's reason for cautious optimism in the Florida real estate market. The Florida Association of REALTORS (FAR) announced that sales of single family homes increased slightly in July, 2008 vs. those in July, 2007. Even more good news: Florida's single family home median sales price is up 18% over the last five years, with the current price standing at $193,600. 

I'm convinced that two recent acts passed by Congress will continue to boost the housing market: one is the housing stimulus bill and the second is the first time homebuyer's tax credit. The National Association of REALTORs seems to feel the same way; a recent report from the NAR states that existing home sales are expected to show modest improvement in the coming months. 

Even with the slight upswing in prices, this is still a GREAT time to buy in the Jacksonville area. I'm always updating my inventory of available properties-call me and let's work together to find the one that's right for you.

Gina

Can news of inflation ever be good news? Yes, when it indicates that a turnaround may be in store for Jacksonville's housing market. A University of Northern Florida economist reports that last month's 1% jump in Jacksonville's consumer price index may signal a revival of the city's real estate market. 

"Normally, a jump of inflation of 1% would be very disconcerting, but when it indicates a growing recovery in the housing market, it's not as bad as it appears on the surface," said Paul Mason, an economist with the University of Northern Florida and coordinator of the Local Economic Indicators Project. 

There's more good housing news from Central Florida as well. "Geographically, Central Florida is going to be the recovery point for the state of Florida," said Roger Soderstrom, owner and founder of Stirling Sotheby's International Realty. He said "pent-up demand" is bringing people back into a buying mode and forecasts an upward swing in the market with buyers able to find homes they love at affordable prices.  

Soderstrom notes that people who have owned homes for a decade or more have also experienced strong appreciation in their property's value. He predicts that real estate will continue to make gains in Florida, with the state continuing to attract newcomers and retirees. 

If you know someone who is thinking about moving to the Jacksonville area, please pass my name and number along. There are some great homes at affordable prices out there just waiting for some new owners! 

Gina

Florida homeowners aren't dancing in the streets just yet. But there is good news on the horizon. Overall, sales of existing homes were up for the third consecutive month in May, according to the Florida Association of REALTORS (FAR). 

However, buyers are being very particular about neighborhoods. According to Jack Winston, a real estate analyst with Miami-based Goodkin Consulting, the rising cost of gas is stimulating activity in downtown areas and other locations close to work and amenities. This is good news for Dade county markets like Doral, Hialeah, North Miami and, in Broward, West Hollywood, Miramar and sections of Lauderhill. In Broward, about 651 houses and condos listed for less than $199,000 were bought and sold in May, a substantial increase from 2007. 

Part of this activity is being spurred by lowered prices due to the many foreclosures in the area. Although financing regulations have tightened up, buyers who are "moving up" are often able to use the money from the sale of their lower-priced home as a substantial down payment for a foreclosure or home whose price has been lowered for a quick sale.

European and out-of-state investors may also  be influencing the increase in sales, especially in markets like Miami Beach which experienced more sales in May than almost any other area in Miami-Dade. However, investors and speculators are generally looking for single property values and are not expected to ignite another real estate boom here as they did in the 90s and early 2000s.

Your credit score, that is. Millions of Americans don't realize that they can save hundreds, if not thousands, of dollars annually by maintaining a good credit score. With a high credit score you'll qualify for lower interest rates on credit cards, auto loans, home equity loans and mortgages. Landlords and utility companies often check your scores as well to determine your credit worthiness. The savings from a good credit score can be substantial and may make the difference between being able to afford your dream home and having to continue renting. 

Credit scores range from 200 to 800, with the top number representing a sterling rating. The closer you are to the bottom, the less chance you have of obtaining a loan at anything resembling a reasonable rate. 

If you don't know what condition your credit is in, you can request a free credit report from any one of three bureaus - Equifax Inc., TransUnion LLC or Experian Group. You're entitled to one report from each of the three every year. The report will show your current loan and credit card standing. To learn your actual numerical score usually costs about $15. Log on to www.annualcreditreport.com to learn more or order a report. 

There are a number of ways you can increase your credit score, according to Washington Mutual bank of Seattle: 

• Avoid charging above your maximum limit on a credit card, or coming close to the limit. It's best to stay at 50% or lower.

• Don't open multiple new accounts at the same time

• Pay off your debt; don't switch it to another card
  
  
• Pay down large credit card balances

• Don't miss a monthly payment; pay the minimum if that's all you can afford at the time

• On the other hand, don't get into the habit of always paying the minimum

If your credit score isn't all it should be, heeding any of the above steps should help.  For more information and advice, contact the Consumer Credit Counseling Service at http://www.cccsatl.org/.

If you've been waiting to sell your Jacksonville area home, here's some good news on the real estate front. The Florida Association of REALTORS reported that existing home sales were up 10% from February to March of this year. That increase, along with Jacksonville's ranking as #26 in the Forbes 100 Best Cities for Jobs in 2008, makes this a good time to put your house on the market.

The decision to sell your home is a complicated one that requires a lot of preparation and decision-making. As a long-time real estate agent in Jacksonville, I have many years of experience helping families price, market and showcase their homes. I have the marketing expertise and the know-how to make your home sell in the shortest possible time for the best possible price.

So, if you're ready to sell, call me. Together we'll take advantage of improving market conditions in the Jacksonville area to ensure the best possible home sale experience possible.

-Gina

I won't jump the gun and say that all is well but, according to an article in the Wall Street Journal, housing prices have been slowly, if steadily, declining since 2006. The author, Cyril Moulle-Berteaux, notes that in 2005 and 2006, the average home mortgage required 25% of a buyer's monthly income. For first-time buyers, the numbers were more intimidating, with homes often commandeering up to 37% of the household income. Ouch!

Over the past two years, as more people have been unable to purchase or maintain their current homes, housing prices have fallen 10% - 15%, while income is steadily growing. Home prices now are on par with where they were in the 1990s and, consequently, more people are able to afford to buy. This is especially helpful to first time homebuyers.

Will this decline in housing prices lead to a dramatic drop in home value for people who already own homes? Not to worry, according to Mr. Moulle-Berteaux. As inventories of unsold homes decrease (due to increased affordability and people buying them), the market will start to swing upward again. This is a pattern that has occurred consistently in the U.S. housing market and there is no reason to expect that this time will be different. We can, however, hope that the growth will be slow and steady, and avoid the fireworks that led to drastic price increases, speculative loans and a rash of foreclosures.

If you'd like to see what is available in the Jacksonville area in your price range, give me a call.

-Gina