Real Estate Resource for Jacksonville and Orange Park, Florida

7 Home Buyer tips

Mon, 14 Sep 2009 19:25:39 -0500

7 Tips for Jacksonville First-Time Home Buyers

A year after the financial collapse of 2008, the housing market is very different than it was before the foreclosure crisis.

Here are seven bits of wisdom from economists and financial planners for anyone contemplating a home purchase today:

Old-fashioned basics are more important than ever. The safest way to purchase a home is to put down 20 percent on a fixed-rate, 30-year (or less) mortgage.
Don't become overconfident about income growth. Even though buyers in their 20s and 30s will likely see their incomes grow more quickly than previous generations, it is important to act sensibly when borrowing.
Anyone contemplating adding children to the family should calculate whether they could live on one income because having both halves of a couple work may turn out to be impractical.
Include a maintenance budget. Even new homes need upkeep and repairs.
Buyers who can't afford their dream home now should opt for a starter home where they can save money each month for what they really want.
Consider a property that can be expanded and improved down the road when money is available.
No two buyers are the same, but they should all feel confident with the loan they enter into, no matter the size of the mortgage.

Source: The New York Times, Ron Lieber (09/12/2009)

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Good news for builders

Tue, 18 Aug 2009 18:03:05 -0500

Single-Family Home Construction Rises

Construction of single-family homes rose 1 percent in July, the fifth month of continuous increases and a 37 percent rise compared to last winter when housing construction hit bottom, the U.S. Commerce Department announced Tuesday.

Construction of apartment buildings fell 13 percent in July, which pushed the combined level of construction starts down 1 percent to a seasonally adjusted annual rate of 581,000 units. This number surprised some knowledgeable observers who had predicted an overall increase.

Applications for building permits also declined in July, down 2 percent from June to an annual rate of 560,000 units.

Most economists ignored the bad news. "It's the general trend that matters and with housing, the direction is up," wrote Joel Naroff, president of Naroff Economic Advisors.

Source: The Associated Press, Alan Zibel (08/18/2009)

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Ponzi schemer's properties for sale

Wed, 05 Aug 2009 18:56:42 -0500

Convicted Ponzi Schemer's Properties Hit the Market

The federal government is about to sell off more than $20 million in real estate owned by Ponzi scammer Bernard Madoff. Properties for sale include his Upper East Side Manhattan duplex; valued at $7.5 million; his 3,000-square-foot, Long Island, N.Y., beach house, $7 million; and his 6,475-square-foot Palm Beach, Fla., mansion on the Intracoastal, $7.5 million.

Besides these properties, the Feds are selling Madoff's 55-foot fishing boat for $1.5 million, approximately $6 million in furniture, and they've already unloaded a three-bedroom vacation house on the Cote d'Azur for $1.48 million.

Some observers say the government's estimate for the Manhattan duplex and the Florida mansion to be high, but they think the Long Island beach house may be bid up beyond the sale price because it is closer to the water than current zoning would allow.

Source: CNNMoney.com (08/03/2009)

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A Short Lesson in "Tact"

Fri, 24 Jul 2009 07:46:09 -0500

Perhaps you heard about the husband who lacked tact. Early one morning his wife left for a trip abroad . . . and that very day their poodle died. When she called home that evening, she asked how everything was---and he bluntly blurted out, "Well, the dog died!" Shocked, she chided him through tears for being so tactless.... so strong.

"What should I have said?" he asked.

"You should have broken the news gently, perhaps in stages. When I called you from here in New York, you could have said, 'The dog is on the roof.' And the next day when I called you from London, 'He fell off the roof.' The following day from Paris, you could have told me, 'He is at the vet's . . . in the hospital.' And finally, from Rome, I could have then been informed, 'He died.'"

The husband paused and thought about the advice. His wife then asked, "By the way, how is mother?"
He responded, "She's on the roof!"

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Buy! Buy! Bye!

Thu, 23 Jul 2009 07:42:14 -0500

Jacksonville Real Estate?? Buy now before the opportunity is GONE!!

Experts Say Now is the Time to Buy
Many investment experts advise it's time to buy. With prices falling, it is a once-in-a-generation chance to load up on property, they say.

How much of an investment portfolio should be devoted to real estate? David Swensen, who manages Yale University's endowment, says 20 percent is a smart number.

One possibility is real estate investment trusts (REITs), which, despite the fact that they are slashing dividends to conserve cash, are still paying average yields of 7.3 percent. That's double the yield on Treasurys.

Should a home be part of the equation? Michael Kirby, founder of Green Street Advisors, says no.

"You should own a house to provide shelter," says Kirby. "In a way, it's not an investment, and it's not part of your investment portfolio. It's really just a living expense. By owning a house you are prepaying rent."

Source: Forbes (08/03/2009)

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Jacksonville, Orange Park, St Augustine
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BEWARE! Mortage Fraud

Thu, 09 Jul 2009 07:02:33 -0500

Mortgage Fraud Continues to Increase

Mortgage fraud continues to increase as vulnerable homeowners seek answers to their housing issues, according to the 2008 Mortgage Fraud Report released Tuesday by the Federal Bureau of Investigation.

Reported losses to fraud hit $1.4 billion, up 83 percent compared to 2007 and are likely to climb even higher in 2009, the FBI said.

The number of fraud reports was 63,713 in fiscal 2008, up from 46,717 the previous year.

"The downward trend in the housing market during 2008 provided a favorable climate for mortgage fraud schemes to proliferate," the report said. "Several of these schemes have the potential to spread if the current economic downward trend, as expected, continues into 2009 and beyond."

Source: The Associated Press (07/08/2009)

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WHAT'S YOUR NORTHEAST FLORIDA PROPERTY WORTH??

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Tubs on the way out??

Tue, 07 Jul 2009 18:03:46 -0500

Jacksonville Real Estate Listings Search

What's Your Home Worth

Walk-in Showers Gain in Popularity

Home owners are choosing showers over tubs, despite the long-standing notion that it is important to have a tub for resale value.

"We're definitely seeing a trend toward walk-in showers versus tubs," says Katie Campbell, sales manager for the Heritage of Palatine, a Chicago-area development where homes are priced from $221,900. "We used to do a lot of big soaking tubs with shower stalls in the master bathroom, but we had a lot of people eliminate the tub because they wanted a bigger shower."

Having at least one tub in the house is still important because some buyers want them, insists Kathy Dames-Mattox, an associate with ReMax of Joliet. But she advises homeowners not to spend a lot of money on whirlpool tubs.

"I don't see whirlpool tubs as being a big deal anymore," Dames-Mattox says. "Everybody who adds one says they never use it."

Source: Chicago Tribune, Allison E. Beatty (07/03/2009

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Treasury Makes Refinancing More Attractive

Thu, 02 Jul 2009 13:26:27 -0500

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Treasury Makes Refinancing More Attractive
The Treasury Department on Wednesday expanded its foreclosure prevention plan, lifting the current 105 percent loan-to-value cap to refinance up to 125 percent of a home's value.

Applications to refinance mortgages have fallen as rates have increased in the last couple of weeks, but this move may bring more borrowers to the table.

At the same time, Fannie Mae and Freddie Mac have agreed to reduce the processing fee for borrowers who select a 25-year mortgage.

Fannie said in a statement, "The reduction is intended to lure borrowers to select shorter terms and build positive equity in their homes sooner than with a typical 30-year mortgage."

Source: Reuters News, Patrick Rucker (07/01/2009)

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"Echo Boomers"???? What the???

Wed, 24 Jun 2009 18:41:07 -0500

Cindy's property pick of the week

Will 'Echo Boomers' Save the Housing Market?

Echo boomers, the children of baby boomers, will be the salvation of the housing market, Harvard University's Joint Center for Housing Studies predicts.

In its annual state of the nation's housing study, the center says that the 75 million Americans born between 1979 and 1995 will mean plenty of demand for housing units.

"There will be 5 million more echo boomers than there were boomers when they first started swelling housing markets," says Eric Belsky, executive director of the Joint Center.

Belsky predicts that once the job market turns around, the housing market will recovery quickly because inventories are close in balance between supply and demand.

But the study warns that while echo boomers will increase demand significantly, they may not drive up prices much because their real incomes are lower than those earned by people a decade older when they entered the job market.

"While fundamentally we see what could be the foundation for long-term recovery, we still have to get through today's challenges," says Nicolas Retsinas, director of the Harvard center.

Sources: CNNMoney.com, Les Christie, and Reuters, Lynn Adler (06/22/2009)

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Not a Short Sale....thanks so much!

Tue, 23 Jun 2009 13:57:29 -0500

So refreshing to list a house where the seller is reasonable and not in need of a short sale.....one such house is on Osprey Bluff in the Fleming Island area of Orange Park. Not waterfront but neighborhood has a community dock on Swimming Pen Creek, just steps away and included in the sale of this property is a private boat slip with 10000lb lift.

Take a look

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No help for transferees

Sun, 21 Jun 2009 16:31:41 -0500

Jacksonville Relocation home search

Fannie Mae Changes Job-Transfer Rules
Fannie Mae has changed the rules about how it considers income from a spouse or partner who moves without a job.

Under the old rules, when a company transferred someone or an employee accepted a new position that entailed a move and the spouse or partner quit his or her job to come along, Fannie Mae would count at least part of that person's income when considering a mortgage application.

But now, Fannie will no longer count the income of what it calls the "trailing spouse" until that person actually finds a new job and has a paycheck in hand.

Brian Faith, a spokesman for Fannie Mae, says, "Given the current economic and job market instability, the company has opted to discontinue consideration of trailing secondary wage-earner income in the interest of safer underwriting, since this income would only be anticipated and undocumented."

Jan Hatfield-Goldman, a vice president for Worldwide ERC, the international trade association representing the employee relocation industry, said Fannie's decision "makes the current challenging relocation environment even more so. Some transfers will either have to qualify on the basis of one income." This will force couples to "buy less house than they wanted," or "they may be required to rent for an extended period of time until the spouse or couple is re-employed."

Source: Washington Post Writers Group, Ken Harney (06/19/2009)

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POOL Home for sale in Fleming Island with its own boat slip

Tue, 16 Jun 2009 19:38:04 -0500

***OPEN HOUSE: SAT JUNE 20TH 12 noon - 2PM***

Beautiful pool home with community dock and assigned boat slip on Swimming Pen Creek that leads to the St. Johns River!! Total heated and cooled area is 3574 square feet including 600 square feet in the guest suite above the 2 car detached garage. Guy's......you'll love the garage tech storage system in the 2 car detached garage as well. This home features a large bonus/game room with Italian tile, seperate formal living and dining rooms, lots of storage space, fresh paint and brand new carpet.

From the family room take the french doors to the outdoors and enjoy a screened in pool, hot tub, flagstone patio, room to play, room for your boat, fruit & pecan trees plus much more! Must see to appreciate.

MORE INFO COMING SOON!!!!!!!

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Mike and Cindy Jones
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An easy solution

Sat, 13 Jun 2009 20:04:14 -0500

This is from an article in the St. Petersburg Times Newspaper on Sunday.

The Business Section asked readers for ideas on "How Would You Fix the
Economy?"

I think this guy nailed it!

Dear Mr. President,

Please find below my suggestion for fixing America 's economy. Instead
Of giving billions of dollars to companies that will squander the money
On lavish parties and unearned bonuses, use the following plan. You can
Call it the Patriotic Retirement Plan:

There are about 40 million people over 50 in the work force. - Pay them
$1 million apiece severance for early retirement with the following
Stipulations:

1) They MUST retire. Forty million job openings - Unemployment fixed.

2) They MUST buy a new American CAR. Forty million cars ordered - Auto
Industry fixed.

3) They MUST either buy a house or pay off their mortgage - Housing
Crisis fixed.

It can't get any easier than that!

P.S. If more money is needed, have all members in Congress and their
Constituents pay their taxes...

How to Find Cash in a Second Home

Wed, 10 Jun 2009 06:39:58 -0500

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How to Find Cash in a Second Home
Second homes are a tougher sell during an economic slump when people are reluctant to buy first homes.

Owners who discover their vacation homes have become a financial burden can find ways to generate income from their properties, say real estate professionals with experience in making second homes pay off.

Here are some of their suggestions:

1. An owner can rent out a property for two weeks without paying taxes on the income. If there is an annual cultural activity, like a film festival, it can provide a good opportunity to make significant money.

2. Concentrate on renting properties profitably. An effective do-it-yourself Internet rental campaign can cost less than $500 and yield thousands in return. One option is to put an ad on VRBO.com which is the Web site for Vacation Rentals by Owner.

3. Donate a week or two stay at your vacation home to charity and then take a tax deduction for the gift. VacationHomesforCharity.com will help identify the right value.

4. Donate the whole property to charity. The owner can maintain a life estate which is the right to live in the house until death.

5. Appeal property taxes. Municipalities are recognizing that some assessments are out of whack and will adjust them.

Source: The Wall Street Journal, Suzanne Barlyn (06/08/2009)

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Hit Bottom Yet??

Mon, 08 Jun 2009 19:54:51 -0500

Jacksonville Homes for sale

What's it worth - Sell my Home

Too Early to Call Housing Bottom
Housing research organization IHS Global Insight estimates that the average U.S. home is undervalued by 12.2 percent, and many previously pricey communities are undervalued by considerably more.

A recent study released by IHS used home prices, interest rates, area incomes, population density, and historic premiums and discounts to analyze housing values. It examined 330 markets and found homes are underpriced in 248 of them.

Despite the high percentage of undervalued areas, IHS says "it is too early to call a bottoming," as "job losses continue, housing inventories remain elevated, and consumers remain wary in light of economic uncertainty."

Here are the 10 most undervalued areas:

1. Vero Beach, Fla., -42.5 percent
2. Houma, La., -41.4 percent
3. Las Vegas, -40.9 percent
4. Merced, Calif., -40.1 percent
5. Cape Coral, Fla., -39.1 percent
6. Houston, -36.9 percent
7. Midland, Tex., -34.8 percent
8. Lafayette, La., -34.4 percent
9. Vallejo, Calif., -34.3 percent
10. Stockton, Calif., -34.3 percent

Source: CNNMoney.com, Les Christie (06/04/2009)

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1 Million Foreclosures This Year

Tue, 02 Jun 2009 13:56:32 -0500

As of this week, 1 million new foreclosures have been filed in 2009, according to estimates by the Center for Responsible Lending, a nonprofit research and policy organization dedicated to preserving home ownership.

A new foreclosure starts every 13 seconds - nearly 6,500 a day.

"It's easy to think, 'Well, that's tough luck for the families that lose their homes.' The truth is that foreclosures are costing neighboring families hundreds of billions of dollars and dragging down the entire economy," says Michael Calhoun, president of CRL.

Calhoun called on lenders and loan servicers to utilize the tools offered by the U.S. government to keep people in their homes.

Source: Center for Responsible Lending (06/01/2009)

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Mortgage rates on the rise...better buy now!

Mon, 01 Jun 2009 17:32:08 -0500

As Rates Rise, Fed Holds Steady
Yields on U.S. Treasury bonds rose in March and April and yields on mortgage-backed securities continue to increase, pushing 30-year fixed home loans up to 5.44 percent-the highest rate for mortgages since early February.

The Federal Reserve is buying Treasurys and mortgage-backed securities (MBS) in an attempt to keep borrowing costs low and to provide the financial system with money for lending.

However, there is some concern about the amount of borrowing needed to fund the campaign, which has resulted in the purchase of $130.5 billion in long-term Treasury debt and $481 billion in MBS so far. Yet the market still believes the central bank will expand its purchases in order to restrain long-term rates.

Source: The Wall Street Journal, Jon Hilsenrath and Liz Rappaport (05/29/09)

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YOUR HOMES VALUE

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Existing Home Sales Rise, FHFA Suggests Price Stabilization

Sun, 31 May 2009 10:20:42 -0500

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FREE Market analysis for Jacksonville, Orange Park, Northeast Florida

Sales of existing homes rose as expected in April, led by buyers in lower price ranges, according to the National Association of Realtors on Wednesday. Meanwhile, a report from the FHFA indicates prices may be stabilizing.

Existing home sales increased 2.9% in April to a seasonally adjusted annual pace of 4.68 million units, up from a downwardly revised pace of 4.55 million units in March. Since April 2008, sales have fallen 3.5%

"Most of the sales are taking place in lower price ranges and activity is beginning to pick up in the midprice ranges, but high-end home sales remain sluggish," said Lawrence Yun, NAR chief economist, in the report.

First-time buyers were responsible for 40% of all transactions in April. Moreover, distressed properties accounted for 45% of all sales.

"Because foreclosed properties will likely be released into the market over the rest of year, it is critical that distressed homes be quickly cleared from the market," Yun said, adding that the sale of foreclosure-related homes sets the stage for healthy conditions.

Single-family home sales rose 2.5% to a rate of 4.18 million in April, a pace that is 2.8% below the level one year ago.

Regionally, sales advanced in three of the four regions. Existing home sales in the Northeast jumped 11.6%, while those in the South increased 1.8%, and sales in the West rose 3.5%. In the Midwest, however, sales slipped 2.0%.

The national median price for all types of existing homes - including single-family, townhomes, condominiums and co-ops - was $170,200, representing a 15.4% fall from the same time last year. For single-family homes only, the price was $169,800 in April, which is 14.9% below a year ago.

Inventories of existing home rose 8.8% in April to to 3.97 million, representing a 10.2-month supplyat the current sales pace. The prior month's figure was 9.6-months, while a healthy market has just a 6-month supply.

Also released at 10 am was a home price report from by the Federal Housing Finance Agency. It said prices fell an additional 1.1% in March, following a 0.2% uptick in February.

"Our latest data are consistent with growing evidence that housing market conditions may be stabilizing in some parts of the country, especially areas not covered by the other major repeat sales price index," said FHFA Director James Lockhart.

His comments stand in opposition to those from David Blitzer, Chairman of Index Committee at Standard & Poor's, who said on Tuesday the Case-Shiller study of home prices did not suggest price recovery.

"Seventeen metro areas recorded a monthly decline in March, with Minneapolis, Detroit and New York posting record monthly declines," Blitzer said on Tuesday. He added, "Based on the March data . . . we see no evidence that that a recovery in home prices has begun."

Source: Mortgage News Daily

EXTRA! EXTRA! Read All About It! Tax Credit for closing cost...

Fri, 29 May 2009 14:56:21 -0500

HUD: Tax Credit Can Be Used on Closing Costs

FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.

Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.

The loans can't be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning.

Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent downpayment.

There remain many sources of assistance for buyers needing help with the 3.5 percent downpayment, including many state and local government instrumentalities and nonprofit lenders.

In addition, some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their downpayment. These programs are separate from what HUD announced today.

The first-time homebuyer tax credit was enacted last year--and improved upon earlier this year--to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven't owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.

Learn more about the credit, including how to apply for it this year even if you've already filed your taxes, at REALTOR.org.

Source: Robert Freedman, REALTOR® Magazine Online

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No wonder my Jacksonville commercial listings aren't moving....

Fri, 29 May 2009 12:56:55 -0500

No Credit Means Businesses Face Default
Commercial credit remains almost impossible to get, even for well-qualified borrowers.

According to New York Democratic Congresswoman Carolyn Maloney, who spoke before a Congressional Oversight Panel this week, "Access to commercial credit is absolutely frozen."

Unlike residential real estate loans, commercial real estate loans don't usually require repayment of the principal loan balance and the repayment period is much shorter. As the deadline for repayment nears, borrowers typically refinance. If they can't refinance, then they are forced to default.

Richard Parkus, head of CMBS and ABS synthetics research at Deutsche Bank Securities Inc., says two-thirds of outstanding loans packaged into commercial mortgage-backed securities could face trouble refinancing in the next few years. Those loans are worth a total of about $400 billion, he estimates.

Source: The Associated Press, Stephen Bernard (05/28/2009)

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All the best Jacksonville area homes for sale

Fri, 29 May 2009 10:04:08 -0500

BUILD YOUR OWN CUSTOM HOME SEARCH HERE

Or check out the latest below....

Homes for sale in Jacksonville, Fl, Orange Park, Green Cove Springs, on the St Johns River, Mandarin, Ponte Vedra, Oakleaf Plantation, Argyle Forest, Chimney Lakes, Waterfront

Could the worst be over?

Thu, 28 May 2009 05:55:23 -0500

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NAR: Existing-Home Sales Jump

Existing-home sales rose in April with strong buyer activity in lower price ranges, according to the NATIONAL ASSOCIATION OF REALTORS®.

Existing-home sales - including single-family, townhomes, condominiums and co-ops - increased 2.9 percent to a seasonally adjusted annual rate of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March. Yet, home sales were 3.5 percent below the 4.85 million-unit level in April 2008, according to NAR.

Lawrence Yun, NAR chief economist, says first-time buyers continue to influence the market but there also is a seasonal rise of repeat buyers.

"Most of the sales are taking place in lower price ranges and activity is beginning to pickup in the midprice ranges, but high-end home sales remain sluggish," he says. "The Federal Reserve needs to help restore liquidity for the jumbo mortgage market by buying these loans under the TALF program."

Buyers Once Again Emerge

An NAR practitioner survey in April showed first-time buyers declined to 40 percent of transactions, implying more repeat buyers are entering the traditional spring home-buying season. It also showed the number of buyers looking at homes has increased 14 percentage points from a year ago.

"This is consistent with our forecast for home sales in the latter part of the year to be 10 to 20 percent higher than the second half of 2008," Yun says.

It's critical that distressed homes be quickly cleared from the market, Yun says.

"Fortunately, home buyers are being attracted to deeply discounted prices and are bidding up many foreclosed listings, particularly in California, Nevada, and Florida - this will set the stage for healthy market conditions going forward," Yun says.

NAR President Charles McMillan says conditions are optimal for buyers with good jobs and long-term plans.

"We have record low mortgage interest rates, a wide selection of homes and affordable prices in most areas," he says. "When you add the $8,000 first-time buyer tax credit, it's hard to imagine a better time to make an investment in your future through homeownership."

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.81 percent in April from 5.00 percent in March; the rate was 5.92 percent in April 2008; data collection began in 1971.

A Closer Look at the Numbers

National median existing-home price: for all housing types, was $170,200 in April, which is 15.4 percent below 2008. Distressed properties, which accounted for 45 percent of all sales in April, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Total housing inventory: at the end of April, rose 8.8 percent to 3.97 million existing homes available for sale, which represents a 10.2-month supply at the current sales pace, compared with a 9.6-month supply in March. "The gain in inventory is largely seasonal from sellers entering the spring market," Yun says. "Even with the rise, inventory over the past few months has remained consistently lower in comparison with a year earlier."

Single-family home sales: rose 2.5 percent to a seasonally adjusted annual rate of 4.18 million in April from a level of 4.08 million in March, but are 2.8 percent below the 4.30 million-unit pace in March 2008. The median existing single-family home price was $169,800 in April, which is 14.9 percent below a year ago.

Existing condominium and co-op sales: increased 6.4 percent to a seasonally adjusted annual rate of 500,000 units in April from 470,000 in March, but are 9.4 percent lower than the 552,000-unit pace a year ago. The median existing condo price was $173,900 in April, down 18.5 percent from April 2008.

By Region

NAR reported the following with existing-home sales across the country:

Northeast: jumped 11.6 percent to an annual pace of 770,000 in April, but are 10.5 percent below April 2008. Median price: $237,400, which is 9.6 percent lower than a year ago.
Midwest: slipped 2 percent in April to a level of 1.00 million and are 9.9 percent lower than a year ago. Median price: $138,800, down 11.7 percent from April 2008.
South: increased 1.8 percent to an annual pace of 1.74 million in April but are 8.9 percent lower than April 2008. Median price: $148,000, which is 12.8 percent below a year ago.
West: rose 3.5 percent to an annual rate of 1.17 million in April and are 19.4 percent higher than a year ago. Median price: $222,600, down 21.8 percent from April 2008.

Source: NAR

BUY! Buy! Buy!

Fri, 22 May 2009 13:53:45 -0500

Jacksonville home search

Mortgage Rates Continue to Fall
Freddie Mac reports a drop in the 30-year fixed mortgage rate to 4.82 percent during the week ended May 21 from 4.86 percent the prior week. Meanwhile, the 15-year fixed mortgage rate dipped to 4.5 percent.

The Federal Reserve is working to hold down rates by purchasing upwards of $1.25 trillion in mortgage-backed securities and $300 billion in Treasuries. Mortgage rate premiums have declined substantially over the last couple of months even as Treasury yields climbed.

Source: Investor's Business Daily (05/22/09)

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Condos are a tough sell!

Thu, 21 May 2009 15:52:49 -0500

Jacksonville Home Search

Foreclosed Condos: Attractive Price Not Enough

A foreclosed condo can seem like an attractive bargain, but buyers without cash might have trouble getting financing and any buyer should investigate the property carefully to ensure that it is financially stable, experts say.

In markets that are dominated by condo developments--like southern Florida--many buildings have multiple foreclosures and vacancies. As a result, the condo associations are struggling with shortfalls.

To compensate, condo boards are raising fees for remaining owners and tacking on special charges.

Fannie Mae won't purchase mortgages in condo buildings in which more than 15 percent of the owners are late paying their association fees. Also Fannie requires that 70 percent of units in a new building be presold - up from the previous 51 percent standard. Both these factors discourage lenders from approving condo loans.

"If a building is in trouble and a buyer can't get a loan, then it means the building will continue spiraling down," says Summer Greene, managing director for Prudential Florida 1st Realty in Fort Lauderdale, Fla.

Source: The South Florida Sun-Sentinel, Paul Owers (05/21/2009)

Homebuyer Tax Credit Loans still Okay

Thu, 21 May 2009 15:43:55 -0500

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HUD: Homebuyer Tax Credit Loans Still on Track
News reports that the federal government is backing away from its plan to permit eligible borrowers to monetize the first-time homebuyer tax credit are off the mark, a spokesperson for the U.S. Department of Housing and Urban Development says.

"The technical details are still being finalized and will soon be published in a mortgagee letter and posted on our Web site," Lemar Wooley, a HUD spokesperson, told REALTOR® Magazine Wednesday afternoon.

Under the guidance that's under development, state agencies and other HUD-approved entities would be able to provide short-term bridge loans that households could use to help with their downpayment. The loans would be repaid with the proceeds from the households' federal tax credit.

The loans were announced on the opening day of NAR's 2009 Midyear Legislative Meetings in Washington, D.C., last week. In his announcement, HUD Secretary Shaun Donovan said guidance would be issued shortly.

When the guidance is released, it is expected to cover eligible lenders and set parameters for loan terms and repayment.

Source: REALTOR® Magazine Online

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