After a rough January the real estate market in Lake County found some footing in February. A number of very positive stats stick out:

•·         The average sales price jumped over $10k from the previous month. Thirteen single family homes over $300k sold compared to just 6 in January.

•·         Although a total of 55.2% of the homes sold were under $140k, the bulk of them were priced between $100-$140k.

•·         With the exception of last December, we now have less inventory than any time since April of 2007.

Yes we still have over 5000 homes which represents an over 2 year supply at the current rate of sales, and we also have the specter of more foreclosures looming in the future; but we also have a new first time buyers tax credit and continued low interest rates. Most in the industry will agree that foreclosures and short sales have become the bulk of what's selling but multiple offers are becoming a regular occurrence on properly priced properties (say that as fast as you can 3 times!).

The uncertainty that gripped the real estate market in February has been greatly alleviated with the passing of the economic recovery act. With the new $8000 true tax credit (no folks, you don't have to pay it back any more!) and adequate appropriations for the USDA Rural Development loan program we have all seen a marked increase in inquiries for March so far. Buyers are enjoying this buyer's market, but fast realizing any seller with a good deal can't be toyed with- many of the best deals are selling within the first week.

Employment, or the lack of, will play a huge role in determining if this is the beginning of the bottom or not. If the ranks of the unemployed cease to swell, I'd say we may be looking back and realizing this was the beginning of the bottom. Do I predict prices will start to climb from here? Heck no- but are we starting to see more balance in supply and demand? I think we are.

First time buyers especially should ask themselves- how much more do you feel prices may drop? Remember the tax credit represents 7.5% of a $120k purchase so if you answered less than 10%, you are taking a chance that mortgage rates won't increase by not buying now. Also many mortgage programs are still tightening their guidelines. Don't assume if you can qualify for a loan today that you will be able to tomorrow! Mortgage financing in Lake County, FL is still available with zero down by using the USDA and VA loans, and with 3.5% down with FHA. A reasonable tax refund can easily put you into a home today and by filing an amended return you could collect your tax credit money shortly after you buy (speak to your tax advisor for confirmation and details).

Gerry Suarez, Jr.

Your FHA Loan Pro!