Type of Sale % of All Sales Avg List $/sqft Avg Sale $/sqft
CONVENTIONAL 57% $114 $106
BANK-OWNED 23% $59 $57
SHORT SALE 20% $94 $86
*Home Encounter August 2009
After reviewing the GTAR MLS Highlights here are some observations:
- For specific price points the number of sales had a dramatic increase. These price points are where people must feel they are getting a bargain deal. Here is the range on the year to date (YTD) $100-180k and $200-250k. Investors to the rescue!!!!
- These months, March (end Q1), June (end Q2), and September (end Q3)* showed the largest % Change Last Month. If this trend continues September will be full show the highest volume we've seen since before the market correction. I'll get this highlights out as soon as they become available.
- MLS reclassified sales type in September which has resulted in a clearer picture of the volume of distressed sale inventory. More details?! This is good for everyone since this is such an evolving market we are living in. *GTAR MLS Market Statistics August
After review of the Fishhawk Ranch area in Lithia, Florida it was evident over the last three months there was a STABILIZATION in median sales values. Here's some market highlights:
Absorption rate INCREASE (CLOSED SALES) 27/mo. to 37/mo.
Months Supply (Decreased) 3mos. to 2mos.
SHORTAGE of listings/sales (89 to 111 closed past 3 mos.)
List/Sale ratio (up from 96% to 97% of list price)
Median sales prices were Level for prior 3 month period ($263k to $262k)
Things have definitely improved which is primarily comprised of a STABILIZATION. If we look at the SUPPLY/DEMAND aspect of this market area we see things have dramatically improved since the beginning of summer. The ability of a market to have a low amount of inventory drove the stabilization.
If you have any questions please give us a call. We're here to help!!!
I'm not here to tell you SHOULD Twitter. I'm here to share one thing. Twitter is nothing more than a microcosm for life. It's more about a way to live rather than to approach social networking. Twitter in some form will persevere whether it's gone in five years or less. Through focus and filtering it will evolve as we will.
It's true. People aren't in their right minds when they tweet. But when they add value or educate I believe Twitter will continue to evolve and enlighten. Of course there are people out there who use it for ego-boosting when they have over 1 million followers. But some of these individuals aren't as identified as others with their minds. They use focus and filtering BEFORE they update their status. I dream about the day when those on Facebook will realize this.
Twitter is about "concensus building." You get to create your own reality and find like minded people. It's detractors say it's become the "dumb-ification of America." This is only true if you aren't following quality people. It may only seem as if it's "The Apocalypse" if you follow people who update you on what kind of omelet they had for breakfast i.e Shaquille O'neal.
Through the linkages of URL's to other websites and articles is where the real value lies. Twitter in the hands of ego-centered people will of course bring detracting statements against it. Your job is to determine who the quality people are and "surround yourself" with them. It's really important and I can't stress this enough- life is all about the people you surround yourself with. Through focus and filtering we begin to see the true potential in our lives. Just remember, it's not what Twitter is doing to us but rather what we are doing to Twitter.
ABOLISH ALL PROPERTY TAXES NOW!!!! the signs read in Tampa's Westshore area. After googling the phrase the central theme of this argument was to make it more affordable for people to buy. Polls have shown property taxes are the top concern for people considering a home purchase in Florida and a drag on the economy.
Solution: First, no different sales tax rates for different items. A 2 1/2% sales tax would work. Tourists and renters would share the burden of the taxes (not just homeowners). Second, the measure should prevent wording such as, "The legislature may provide for any form of taxation other than ad valorem taxation to replace revenues foregone by the prohibition against levying ad valorem taxes upon real estate or tangible personal property." We have to use specific verbiage stating where the revenues for the state are derived.
This last part of the ballot measure will prevent against a "back door" personal income tax amendment. A 2 1/2% sales tax increase is a good starting point to cover the source of revenue to fund the government. Besides, Florida is the biggest destination for tourists in the nation.
This is a way to bring fairness and equity to the property tax system. Property taxes are fundamentally unfair. They are calculated on the assumption that the mass appraisal system is accurate. There have been studies showing large percentage differences (31% in one) between the appraised price and actual selling price for homes which sold within a month of the assessed value.
The abolition of property taxes would turn Florida into a worldwide Mecca for homeowners, retirees, snowbirds and industries sensitive to the cost of home ownership. No state income tax. No property tax.
After review of the Fishhawk Ranch area in Lithia, Florida it was evident over the last three months there was a rise in median sales values. Here's why some market highlights:
Absorption rate (+1%) 14/mo. to 15.6/mo.
Months Supply (UP 11.79mos. to 13mos.)
Oversupply of listings/sales (204 to 47 closed past 3 mos.)
List/Sale ratio (Level at 96%)
Approximately 18% RISE in median sales values from prior 3 month period
HERE'S WHERE IT GETS INTERESTING......and the differences are.
Prior 3 months, % of Short Sales was 12 of 42 (29% of total)
Current 3 months, % of Short Sales was 12 of 47 (26% of total, DOWN 3%!!!!)
Prior 3 months, % of Bank-owned sales was 17 of 42 (40% of total)
Most current 3 months, % of Bank-owned sales was 6 of 47 (13%, DOWN 27%)
The bank-owned sales move way faster. We already knew that. But the KEY here is to see Short sales as a percentage dropping 3% and Bank-owned sales are down 27% of the total sales. Translation- distressed homes are being absorbed faster than before which makes way for non-distressed home values to do their thing without being pulled down further. It's definitely an apples and oranges scenario but is one where we should look at the whole market versus the specific comparables for a single property. We definitely have a ways to go, but there ARE positive signs out there in the market of a slowing down for declining values overall.
Here is a market summary of the Riverhills Country Club single family homes in Valrico:
In the last 12 months there have been 23 sold listings. Of those sold three were "distressed sales" or bank-owned foreclosures. In other words 13% of all sales were "distressed." It's my opinion that's pretty low and sellers are staying put on their list prices by not putting large discounts on them. The median sales prices for this area were declining with approximately a 15% decline. The absorption rate was declining with 2.33 sales per month down from 3.83 12 months ago. The median sales Days on Market (DOM) was high with 216 days. There were no indications list prices were declining due to an increase in the List/Sale ratios at 97% of list price, up from 94% 12 months ago. There was an oversupply of listings (51) to comparable sales (23) in the last 12 months. This translates to more declines in median prices until the excess inventory is absorbed or taken off the market. Here's a graph to show my findings:
The biggest story for homebuilders can be seen at the top. Three of the largest homebuilders: D.R. Horton, Toll Brothers, and Meritage showed gains on stocks over the last year. These three giants bounced back strong after multi-year lows. This is welcome news in a sea of negativity and inventories which were too high.
D.R. Horton (DHI), America's biggest homebuilder specializes in starter homes for first time homebuyers. What is attractive to these buyers is they do not have to sell existing homes. Most often they come directly from rentals into new homes. They have seen a 100% increase in their stocks.
Toll Brothers (TOL), masters of mass-produced luxury homes, have seen a 50% increase in their stock. This company should not rebound as quickly as Horton, but should be in a great position when credit markets loosen up as these buyers move up to more expensive homes.
By mid-2008, the Congressional Budget Office (CBO) reckoned that the U.S. suffered from an oversupply of 1.7 million units, dwarfing all previous records. Fortunately, the market is working with a vengeance to shrink the oversupply. In the second half of 2008, housing starts fell to an average annual rate of 770,000 units; so far this year, the figure is around 500,000.
All these factors point to a recovery in late 2009 or early 2010 for housing markets. For an industry which has cut costs and inventory dramatically in most areas, the basic math of the real estate market is slowly moving towards a recovery that's now dawning. These are all guesses at timing but let's admit resurgence in home sales is happening as we speak. I can definitely say there is a "New Affordability" in the air.
This is a valuable piece for all current homeowners out there. What you paid may actually be less than the home originally cost to build. Checking with your insurance company is a great idea because costs for materials have increased dramatically in the last five years. Look at these examples:
Some companies are offering 125 percent of the home's insured value. Please consult your home insurance company for more details. Average construction costs for 2008 will be available summer 2009.
Have no illusions. A short sale is rolling the dice. Here's why.
The potential for banks not accepting short sales or deeds in lieu of foreclosure may have everything to do with the Pooling and Servicing Agreement (PSA) in which that particular loan is associated with.
Most loans are sold on the secondary market or "pooled" together and sold to be held in trust as collateral for mortgage-backed securities. The most famous Government Sponsored Enterprisesare Fannie, Freddie, and Ginnie. Once the loans are considered "non-performing" they, the GSE's can pull money from a multi-million dollar escrow fund to cover their lawyer's fees. These pools of mortgages are bound to the Pooling and Servicing Agreement (PSA). At the point where the loan is described as non-performing the servicer is entitled to get double the servicing fees.
Perhaps a more common reason for banks not accepting short sales is because of something called a Tranche. This is described as different terms for different beneficial interests. An example would be risky loans with high returns or less risky loans with marginal returns. A Tranche is defined as "a special type of bond class in a sequential pay collateralized mortgage obligation. This class of bond does not receive any interest or principal payments until all other Tranches have been completely paid off" according to Investopedia.
Many of the "higher-up" beneficial interests, or Tranches, could have insurance on the mortgages to fall back on in the event a borrower defaults. So, what point is there to work out a deal when insurance can balance them out? Conversely, the lesser beneficial interests might not have mortgage insurance and would rather see if any funds from the sale could be attained.
This is the issue for most short-sales with lenders. Do they try to arrive at a deal they can live with or do they simply have no intention of selling and foreclose. Personally, if I were in this situation I would like to know where I stood. Wouldn't it be great to have more transparency between lenders to know where borrowers in default stood? Just a dream....
This site is a portal for meeting, playing, and networking in the sun. Join us..... play with us! I met Bob Schecter on LinkedIn. He's one of very people I know who have the talent to be a "Super-connector." His idea was to do what he loves and that's to play golf. And since we're all spending a great deal of energy networking why not do so on the course. Brilliant!
The benefits of such a group are that we have the possibility to receive discounts to clubs on fees, equipment, etc. assuming we have sufficient numbers. Therefore, I requested Bob start two groups in Pinellas and Hillsborough counties to get the ball rolling. Please sign up on the website and invite everyone who loves to play golf and networks for their business.
"If you reach out to everyone, you're sure to touch someone" - The Networking Fool
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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