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Archive for April, 2009

Like sports? Pinellas County has plenty

Tampa Bay Rays vs. Chicago White Sox

Last evening we journeyed down to St. Petersburg (that’s south Pinellas County as opposed to my home turf in North Pinellas County) to take in a Tampa Bay Rays game at Tropicana Field. The trip included a flat tire and an hour-and-a-half at a St. Pete Tire Kingdowm store, but that’s another story.

A lot of people don’t like Tropicana Field because it’s a domed stadium with astroturf and it’s, well, ugly. But I like it just fine. The access off I-275 is easy and there’s plenty of parking (believe it or not, we found an on-street spot right on Central Avenue, a stone’s throw from the ballpark). There’s plenty of lot parking around the field that costs around $10.

The access into and out of the Trop is easy. Once inside, ushers and other workers are always nodding and smiling at you. Best of all, it is always 72 degrees inside, and it never rains. In west-central Florida it’s usually in the mid-90s at game time during the summer, and rain is pretty common in the late afternoon and early evening, so that dome over the stadium comes in handy, even if true baseball fans long for green grass and blue skies.

The Rays management floated an idea for a new outdoor stadium on the water on downtown St. Pete last year. But with no parking (fans would have had to use existing downtown parking garages and then walk several blocks to the stadium) and not very good access for traffic, the reaction was lukewarm at best.

Anyway… this part of Florida is a great place for sports fans. We have the Rays in St. Pete (remember, they went to the World Series last year) and the Tampa Bay Buccaneers, who play in Raymond James Stadium across the bay in Tampa and who always put a good team on the field. One doesn’t think immediately about hockey and Tampa Bay at the same time, but we have an NHL team, the Tampa Bay Lightning, who play in a beautiful facility over in Tampa. We don’t have NBA basketball,  but you can still satisfy that urge if you don’t mind driving an hour and a half over to Orlando.

If you are a college football fan, Florida is heaven. The University of South Florida (in Tampa) has a great team, and you already know about the University of Florida and Florida State.

Want more? Spring training and Grapefruit League baseball, right here in North Pinellas County; great college baseball, too.

I took the picture at the top of this post from a box behind home plate. We had a great time, even though the Rays lost to the White Sox, and even in spite of the flat tire.

Tags: baseball, pinellas county, real estate, sports

Florida may get high-speed rail system

Anyone who has been reading this blog in the past few weeks knows that I’m turning into a big fan of light rail transportation. I’ve always had some interest in the idea of light rail trains, but I got even more inspired when I saw stories about the new light rail train system in Phoenix.
A few weeks later, I was in Baltimore and found that I could travel from Baltimore-Washington Airport to downtown Baltimore on that city’s light rail system. It was fast, clean and really cheap. I loved it.
Now I see that the Obama Administration has unveiled plans for high-speed rail service in 10 different regions of the country. And guess what — Florida is one of them!
Now, what Obama envisions is a bit different than the light rail system I dream about for the Tampa Bay area. This plan would link more far-flung cities rather than local communities. But that’s okay with me — if we get a high-speed system in Florida, I think our chances would be really good for a link-up to a new light rail system that could encircle the Tampa Bay communities.
Obama says a high-speed rail system could help unsnarl airport traffic and lighten the loads on our highways. If you have ever tried to drive on I-4 between Tampa Bay and Orlando and then on to Florida’s East Coast, you quickly get the idea.
I can’t count the number of times I’ve had to sit on I-4 while wreckers and police worked to clean up the mess of serious highway accidents somewhere up ahead. I-4 is over-used and under-built in most areas, and speeding cars roaring along in thick packs run into each other with alarming regularity.
 Obama said the plan would use $8 billion in his stimulus package which would be spent over two years. The money would serve as a sort of down payment to get the rail projects started. Then $1 billion would be spent each year over the next five years to move the projects forward.
He says the U.S. Department of Transportation could start awarding funds as early as the end of summer. I think Florida has  a good chance of being an early recipient of those funds — the state has been involved in planning a high-speed rail system since 2001, so we may be a bit ahead of other states.

Tags: Florida, high speed rail, real estate

Lost your home? We want you!

Bad credit? No problem!

I spotted this sign on a fence surrounding a large apartment complex down in the mid-county area.

If you’ve lost your home to foreclosure, banks won’t be giving you the time of day for a new mortgage. However, there seem to be landlords who will view you as a profit opportunity, and welcome you with open arms.

When it comes to economics, every down has an up.

Tags: Foreclosures, pinellas county

HUD is thinking about energy rating system for homes

Shaurn Donovan

When you buy a new car, you know what that vehicle’s fuel economy will be because that information is contained on a window sticker. Do you think the same sort of information ought to be made available when you buy a new home?
That’s the thinking of the Obama administration. Shaun Donovan, who is secretary of Housing and Urtban Development, says that making energy efficiency information available about new homes would give buyers some important facts when they are shopping for a home. And he says that government-insured mortgages could make additional money available for retrofitted energy-efficient features. The rates on those mortgages could be adjusted downwards, he says, for homes that are energy-efficvient.
Donovan says his thinking applies to new homes as well as older homes that are up for re-sale. He says his department is trying to come up with a scoring system that would help buyers quickly understand the energy efficiency of the home they are considering purchasing. That scoring system would also help lenders decide the rate that should be applied to the mortgage.
And Donovan says there might be other factors that could be incorporated into the scoring system, such as distance from the home to  employment centers. he said that a low-priced home in a distant suburb isn’t much of a bargain if the homeowner has to spend big dollars getting back and forth to work.

Tags: energy, homes, mortgages

Chinese drywall causing problems in North Pinellas County and elsewhere

I had a disturbing call today from a good client who I sold a new town home to a couple of years ago. She told me that the home (which is in Tarpon Springs, in North Pinellas County) is one that was constructed with Chinese drywall.

Chinese sheetrock causing problems

If you don’t know about this Chinese drywall issue, here are a few facts:

Back in the height of the construction boom, around 2005 and 2006, there was so much new construction going on that American drywall manufacturers could not keep up with all the demand.  So builders began looking around for new sources.
They found it in China.

A LOT of Chinese drywall was imported into the U.S. around that time — maybe 10 million square feet of it. A good portion of it ended up in new homes being built in Florida.

Quite a few of those homes were built by Lennar Homes, including the town home purchased by my client.

What’s the problem?

All or most of that Chinese drywall appears to contain high amounts of sulphur and other materials that should not be there. When the drywall is exposed to dampness in the air, it begins to break down and emit a “rotten egg” smell.  The smell is not the only problem; it also corrodes electrical wiring, plumbing and air conditioning equipment.
And it also can cause some respiratory issues.

To their credit, Lennar Homes appears to be standing behind the homes they sold. In some cases, they are moving people out of the homes while they replace the sheetrock as well as the wiring and plumbing.

The problem is that we don’t know at this point what the scope of the problem is.  I saw a news story the other day that said about 300 homes in Florida had been identified as containing the Chinese sheetrock. With 10 million square feet of it having been sold in the US, the problem might be a good deal bigger than that.

I’ll be following the Chinese sheetrock issue and posting news about it here on the blog. Meanwhile, if you’ve had any experiences with the sheetrock, please tell us about it here in the “comments” section.

Tags: China, drywall, Lennar

Buying a house in North Pinellas? Interest rates are DOWN again

This week the magic number is 4.78, the lowest in history. Last week it was 4.85, and THAT was the lowest in history, too.
What is it? Why, the interest rate on 30-year fixed-rate mortgages, of course.
Average rates on a 15-year, fixed-rate mortgage dropped to 4.52 percent; rates on five-year, adjustable-rate loans fell to 4.92 percent from 4.96 percent.
The Federal Reserve has been trying to do what it can to make homes more affordable. Its efforts have driven mortgage interest rates to their lowest point in the history of Freddie Mac, which dates back to 1971. The rates are a full percentage point lower than they were just one year ago.
The low rates mean that more homeowners are refinancing their home mortgages. The Mortgage Bankers Association keeps an index of mortgage applications, and that index showed a three percent increase in applications for the week ended March 27. The week before was even more dramatic – 30 percent. The Mortgage Bankers Association says that fully 80 percent of all those applications were for refinances.
Last month, the Federal Reserve announced it planned to buy $1.2 trillion in mortgage-backed securities as well as $300 billion in long-term government debt. All of that has forced interest rates lower.
I’m not sure I would call this a “down side,” but the other side of the coin is that lenders are tightening up their lending standards. So while rates are going lower, they are increasingly only available to people with spotless credit.

Tags: federal reserve, interest rates, north pinellas

Dunedin hosts annual Highland Games

The city of Dunedin doesn’t just have a Scottish name; it also has a very rich Scottish heritage that local people hold dear.

During the first weekend in April, the city hosts the annual Highland Games and Spring Clan Gathering, a celebration that includes all kinds of Scottish athletic events, sheep herding demonstrations and vendors selling all things Scottish, from scarves to kilts to books.

This year’s celebration was held this weekend at Highlander Park, and we spent most of Saturday afternoon watching the pipers, the dancers and the people dressed in the tartans of their various clans.

Here’s a little of the history; Dunedin was settled in 1899 by two Scots, J.O. Douglas and James Sumerville. They wanted to name the town after their home town in Scotland, Edinburgh. Dunedin was the original name of Edinburgh.

There has been a piper’s band at the local high school since the 1950s, and they have been invited to play all over the world. Dunedin is a sister city to Stirling, Scotland, as well as to Summerside, Prince Edward Island, Canada.

The Highland Games have been held in Dunedin for the past 44 years. They were established to support Dunedin’s three Scottish bands, the City of Dunedin Pipe Band, the Dunedin High School Scottish Highlanders Band, and the Dunedin Highland Middle School Band.

Tags: clan, Dunedin, Highland Games, scottish

Five ways to find down payment money when you’re broke

What’s the biggest single obstacle to home ownership? A lot of people would answer, “The down payment — or lack of it.”

For several years now, we ‘ve had the benefit of some pretty easy no-down or little-down financing.  But with the way things are right now, we’re probably not going to see those days come back any time soon.

That means 10 percent or more down loans are much more the norm than they used to be.  But don’t worry — there are a number of easy ways (or sort of easy ways) to raise that down payment money.  Here are a few ideas:

1. SAVE THAT TAX REFUND CHECK

That annual tax refund check from Uncle Sam is always welcome, but how many of us actually earmark that money for a single purpose? Instead of using it to finance a shopping trip to the mall, or using the money for a down payment on a new car, stash it in a savings account, and then do the same thing all over again next year. In very little time you may have all the money you need to buy a new place for yourself.

2. UP YOUR WITHHOLDING

Are your tax refund checks too pitifully small to add up to very much? Or, even worse, are you getting a bill from the IRS instead of a check? There’s an answer for that — march yourself down to your Human Resources Department and ask them to withhold more money from your weekly paycheck.  If you can live with $100 less per week, that’s $5,200 dollars that will be coming your way next year. If that’s a little rich for your blood, $60 per week will give you $3,120 at the end of the year.

3. ASK YOUR RELATIVES FOR MONEY

Tell your parents that you want to buy a home, but that you don’t have enough money for the down payment.  They may surprise you — they may even applaud your maturity in wanting to own your own place. If they won’t give you the money, maybe they will LEND it to you. Be businesslike, and give them decent terms.

4. SELL SOME STUFF

Let’s face it, most of us have plenty of stuff we don’t need. If that describes you and your bulging garage, have a yard sale or a garage sale and turn those musty old items into cash. If you have some things that actually have some real value, you might try selling them on eBay.  You’d be amazed what people will pay for old car parts or 20-year-old Playboy magazines. If you have a sale and end up cleaning out your own garage, offer to sell some stuff for friends and family members, and offer to split the proceeds with them.  Who knows, you may discover a new career as a garage sale expert.

5. INVESTIGATE GOVERNMENT PROGRAMS

Did you spend time in the military? The Veterans Administration may have a no-money-down loan program for you.  Are you a first-time homebuyer?  There may be programs available for you, as well. There are still a surprising number of no-money-down programs out there; your realtor should be able to help you find them. Also, feel free to call me at 727-643-7100.

I know, I know, I said “Fives Ways…” But here’s a bonus idea for you:

SPECIAL BONUS STRATEGY

Get a second job. I know, this isn’t everybody’s idea of heaven. But do it with a short-term rather than a long-term time schedule in mind. I know someone who had a special financial need, and she financed it by signing up as a host of in-home jewelry parties. I know someone else who works every Christmas season at his local Post Office. There are all kinds of seasonal jobs out there. And if you have a special talent or ability, give some thought to who might like to pay for those skills on a part-time or occasional basis. When you get sick of working those additional hours, quit.

I’ll bet you have some make-money ideas of your own. If you do, hit the “comment” button at the top of those post and share them with us.

Tags: down payment, home financing

Palm Harbor won’t incorporate

We’ve written here about the effort by some in Palm Harbor to incorporate their town.  But now it looks like that won’t happen, at least this year.

Some people are surprised to learn that Palm Harbor remains an unincorporated township.  There are now around 60,000 residents in Palm Harbor, big enough for most towns to have been incorporated long ago.  But Palm Harbor has been growing like crazy for the past 20 years or so — before that it was mostly a series of orange groves.

A group called the Palm Harbor Coalition has been pushing incorporation, something that has to be approved by the state Legislature.  Two bills were working their way through the Legislature this year, but leaders of the Palm Harbor Coalition said there were some problems with wording in the bills, so they decieded to pulll them from consideration this year with hopes of ironing out the problems and re-introducing bills in Tallahasssee next year.

The Palm Harbor Coalition says that Palm Harbor can be incorporated without any increase in taxes.  Opponents say they don’t agree with that asssessment.

Tags: government, Palm Harbor

Tampa Bay real estate market: Sales up, but values down

The thing that continues to be pretty clear about the Tampa Bay real estate market is this: Home sales are continuing to make a nice comeback, but home values are still slipping and sliding.

You’d like to think that the trend of declining values is nearing the bottom. But just when we think that, another month comes along and values decline a bit more.

One good source of home value information is the S & P/Case-Shiller Home Price Index. Recent numbers from that index showed that home values in January in Tampa Bay were down 4.4 percent from the previous month. That’s a pretty steep drop for a single month, especially when you consider that the home value peak was in July of 2006, almost three full years ago.

Case-Shiller says that prices in this region (the region being Pinellas, Pasco, Hillsborough and Hernando counties) have dropped 37.3 percent in that nearly-three-year period.

So what is propping up sales when values are still going down? There’s several reasons:

GOOD PRICES: According to Case-Shiller, home prices in this area in January were just about the same as prices were in February 2004.  How often can you buy homes at five-year-old prices?

GOOD RATES: Mortgage interest rates are very, very low. How often have you seen the one-two punch of low home prices and low, low interest rates?

FIRST TIME HOMEBUYER ADVANTAGES: If you already own a home and you are either upside-down or have lost much of your equity, you’re not in much of a position to buy a move-up home. But if you are renting and don’t currently own a home, this is a GREAT time to buy. And first-timers are very much in the market right now.

TAX CREDIT: If you are a first time home-buyer (or haven’t bought a new home in the past three years), there is a big fat $8,000 tax credit out there just waiting for you.  When is the last time THAT happened?

SELLERS ARE WILLING TO NEGOTIATE: If we had already reached the bottom of the market and prices were going back up, sellers would be saying something like this: “Time is on my side. The more I wait, the higher my selling prices is apt to be. Why should I give anything away?” Instead they are saying things like this: “Prices are still going down. God knows where this is going. I NEED TO SELL! Bring me an offer, and don’t be afraid to ask for anyhing! Go ahead, try me!”

Of course buyers are in the market.

So we’ll be waiting a bit longer for that end to the home price slide. But in the meantime, homes are selling anyway.

Tags: pinellas county, real estate, sales, values