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Archive for the 'Pinellas County real estate' Category

Builders more confident about the future

If you are a regular reader of this blog, you know we have been cautiously reporting some positive factors that seem to be contributing to a slowly-emerging, or improving, real estate market.

None of these things have been dramatic, but all of them have been positive – things like an improving employment picture, continuing low interest rates, and increases in the number of pending home sales.

Here’s one more thing to add to the list – an optimistic report from the National Association of Home Builders (NAHB).

The NAHB reported this week that confidence among home builders is on the upswing when it comes to the construction of single-family homes.  The NAHB says it is the third consecutive month that builders have reported increased confidence in the future of single-family home construction.

 “While builder confidence remains low, the consistent gains registered over the past several months are an indication that pockets of recovery are slowly starting to emerge in scattered housing markets,” said NAHB Chairman Bob Nielsen.

Nielsen had something else to say, also; he noted that new single-family home sales might be even better if lenders were a little freer with their money. Builders and home buyers are both being negatively impacted by tight credit restrictions, he said.

NAHB Chief Economist David Crowe said buyers are still cautious because of the large inventories of foreclosed properties in many markets, and they also worry about continuing high unemployment ands the challenges of selling their existing homes.

Even so, Crowe said, “builders are reporting more inquiries and more interest among potential buyers than they have seen in previous months.”

The area of the country where builders are expressing the biggest boosts in confidence levels? Right here in the South.

Tags: hernando county, home builders, new construction, new home construction, Pasco County, pinellas county

Rates down, but down payments up for Pinellas County real estate (and real estate everywhere)

I’ve mentioned here a number of times how low mortgage interest rates are, and how they – along with the lowest home prices in at least a decade – make homes really affordable right now.

But to be fair, there is another side of the coin (isn’t there always?) which makes home-buying more of a challenge than it was in the rock-n-roll days.

I’m talking about down payments.

Home prices may be down, and interest rates may be at historic (or near-historic) levels, but the demand for more substantial down payments is up. It’s all part of the tougher underwriting standards; lenders want to see buyers begin the home buying process with a bigger personal stake in the transaction, and that means larger down payments.

Just a few years ago, it seemed like down payments were going to become a thing of the past. Nothing-down and little-down mortgages were all the rage, and you could buy expensive homes and finance them with big mortgages without having to come up with actual cash – or not much of it, anyway.

Great interest rates are available now, as I’ve written about in the past. But if you really want that rock-bottom rate, you’d better be ready to come up with a 20 percent down payment.  It’s still possible to get a mortgage and put less than 20 percent down, but the rates are going to be higher.

LendingTree came out with a report last week that listed state-by-state average down payments, and the average of all of them was 12.29 percent.

(I know you’re wondering what the average rate is for Pinellas County real estate. Actually, LendingTree didn’t get that fine on rates, but the company DID say what the average down payment is for the state of Florida: 13.16 percent.)

Fannie Mae and Freddie Mac want at least 10 per cent down.  If you want the very best rate, you’re going to have to also pay for private mortgage insurance – not part of the down payment, but an upfront cost you can’t avoid.

A Lending Tree spokesperson said, “The reality is when you put less than 20 percent down, you have to pay for some kind of insurance to protect the lender from the higher risk that you’ll default…but private mortgage insurers these days aren’t always willing to do business with low down payments.”

There is some speculation out there that if we are going to continue to have record low interest rates, the mortgage industry may increasingly move toward that 20 per cent down payments.

Tags: down payment, interest rates, pinellas county, Pinellas County real estate, real estate

Joblessness down, but not enough to inspire the price of Pinellas County real estate sales

Here’s some good news: The national unemployment rate in November was down to 8.6 percent, a nice drop from the 9 percent registered in the previous month. So, does that mean that we may see a corresponding modest increase in home prices?

If you want a one-word answer to that question, here it is: No.

Still, it’s good news for the overall economy, and the strength of the economy (or lack of it) is what will ultimately drive home prices up and stimulate the market. It’s all about confidence, and no one has an awful lot of that right now when it comes to the economy, or visions of the future.

Nationally, the unemployment rate peaked in October of 2009, at 10.1 percent (according to the federal Bureau of Labor Statistics). It’s been settling back downward at a snail’s pace ever since, keeping pace with an agonizingly slow economic recovery.

If the economy was really starting to boom, a .4 percent single-month drop in the unemployment rate might be cause for celebration – and for a mini-stampede of home buyers wanting to take advantage of low home prices and historically low interest rates.

Instead, we have an economic recovery that is just creeping along. It doesn’t inspire much confidence about the future, and confidence about the future is what drives home sales.

Pending home sales are UP in Pinellas County and elsewhere

  Here’s some good real estate news: the National Association of Realtors says that pending home sales rose 10.4 percent during the month of October. Pending sales are contracts on home purchases that have not yet closed.

 Pending sales now are running 9.4 percent above last year’s levels.

Here in the South, those numbers are strong as well, if a bit behind the national average. Pending sales in the South for October were up 8.6 percent.

NAR doesn’t break down those figures beyond regions, but it’s safe to say that real estate trends in Pinellas County roughly track the NAR’s regional analysis. Some if you are thinking about a real estate purchase in Pinellas County, this information should be a real plus as you consider your options.

Lawrence Yun, chief economist for the National Association of Realtors, said the increase may be due to the continuing affordability homes, and pent-up demand.

 ”Home sales have been plodding along at a sub-par level while interest rates are hovering at record lows and there is a pent-up demand from buyers who normally would have entered the market in recent years,” he said. “We hope this is indicates more buyers are taking advantage of the excellent affordability conditions.”

 While the numbers are encouraging, there is a caution that must be remembered; not all contracts lead to closed transactions. In fact, these tough economic times have resulted in an increase in the number of contracts that never reach closing. Sometimes appraisals come in lower than agreed-upon sales prices and that can end deals; Also, buyers sometimes underestimate the new, more stringent credit score requirements.

 ”Although contract signings are up, not all contracts lead to closings,” Yun said. “Many potential home buyers inadvertently hurt their credit scores and chances of getting a mortgage through easily averted actions, such as canceling an old credit line while taking on a new one. Such actions could unwittingly prevent buyers from obtaining a mortgage if their credit score is close to the margins of qualifying, or they might get a loan but with less favorable terms.”

 If you are wondering where you might stand in trying to buy a home in Pinellas County, you should give me a call. I have many years of experience in the mortgage field, both in Pinellas County and elsewhere, and I can offer you valuable advice about how to go forward in today’s real estate market.

Rates keep on tumbling – in Pinellas County and elsewhere

Do you think of yourself as a nervy risk-taker? Steely-eyed, firm of hand, able to discern real opportunities when they come along?

If so, and you have a mortgage on your home, you may be starting to think about refinancing. After all, interest rates are at historic lows. Just about 10 days ago, Freddie Mac reported the average rate for 30-year fixed mortgages had dropped to 3.94 percent, which was the lowest rate in history.

So why wouldn’t you take advantage of that unbelievably low rate and refinance the old ranch?

Well, because a lot of experts are saying that mortgage rates might go even lower, that’s why. That’s where the steely eyes and the firm hands come into play.

You could re-finance now and take advantage of great mortgage interest rates. OR, you could wait a little longer and (perhaps) take advantage of even lower interest rates.

Rates may vary a little bit in different areas around the country. But rates are WAY down almost everywhere you look, and the end of falling rates may not be in sight yet.

Why do these rates keep coming down? There are several reasons:

The Federal Reserve has been buying up mortgage-backed securities in hopes of forcing interest rates down.

President Obama is trying to strengthen the Home Affordable Refinance Program, which helps home owners refinance their properties – even properties with little or no equity.

The idea behind all this is that if lots of people refinance their mortgages, it could have a stimulating effect on the economy at large.

With current rates hovering around (or even below) four percent, it’s tempting to think about refinancing now. After all, how much lower can the rates go?

Many industry observers believe that you should be able to cut at least one percent off your rate when you re-finance. If you can’t do that, they say, closing costs and fees could counteract the benefits of the refinance.

But if you can talk the lender into waiving many of the fees associated with a refinance, then it may make sense to refinance, even if the new rate is only a half-percent better than the old one.

So… do ya feel lucky? Well, do ya?

Tags: mortgage rates, pinellas county, real estate, refinance

We got away from Pinellas County real estate for awhile…

You may have noticed a distinct lack of posts lately.  The reason: We were on a three-week motorcycle trip through New Mexico.

I won’t go on and on about the trip or the great beauty of the state of New Mexico, but I will add a single picture here of some of the scenery. If you want to see more, you can go to the blog we maintained during the trip. Lots of pictures there, and more coming in the next few days.

Then we’ll get back to blogging about Pinellas County real estate!

Bright colors and red peppers. You see them both all over New Mexico. This was in Taos.

Five things that can be done right now to stimulate Pinellas County real estate sales (and real estate sales everywhere)

We’re around five years into the recession, and the real estate market has been suffering all of that time. There were a lot of reasons for the downturn, just as there are lots of reasons for the slow recovery.

While I don’t have a magic bullet to right the ship and make everything okay real estate-wise, I think there are some things that could be done right now to stimulate sales and make things better, here in Pinellas County and really everywhere. Nothing is going to make up for nine percent unemployment or for the under-employment of millions more people, but I think we could do a lot for the national and the Pinellas County real estate markets to make home ownership more possible for thousands of would-be home owners by taking a few simple steps.

Here they are:

1. MAKE CREDIT STANDARDS MORE REASONABLE: Much of the problem in the first place resulted from very easy-going credit standards when it came to home mortgages – things such as incomes that didn’t have to be verified or 100 percent (and even 110-percent) financing. Lenders have reacted to those transgressions by tightening credit requirements to a ridiculous level. So let’s find a happy medium that works for buyers while protecting the interests of lenders.
2. BRING BACK THE 90 PERCENT MORTGAGE:  Where we once saw no-money-down mortgages, we now see lenders who want 20 or 25 percent down. There are many very qualified buyers with good incomes who should be able to buy homes with 10 percent down. Let’s make that possible for the right buyers.
3. STREAMLINE THE UNDERWRITING PROCESS:  Underwriting has become extremely tight and difficult, and it is not unusual for lenders to come back repeatedly for additional documentation. That takes extra time, and deals can fall apart during those long waits. Good, effective underwriting shouldn’t have to take weeks or months.
4. GENERATE MORE JOBS: Probably the biggest impediment to a housing market recovery is a lack of good-paying jobs. If people can’t earn adequate incomes, they can’t afford to buy new homes. This is something the government can help with by instituting encouraging policies; the private sector can contribute to it by investing in themselves in ways that encourage job creation.
5. CLEAR OUT THE FORECLOSURE INVENTORY: Banks have been slow to clear out the inventory of foreclosed homes. Short sales can take forever, and lenders seem to be in no hurry to get their foreclosed-upon properties off their books. Some observers even say that banks have withheld significant numbers of foreclosed properties in order to keep home values from falling even further.  If banks want to get back to the business of lending money for home purchases, they have to do their part, take the hit, and get that inventory back into the hands of private owners.

Got any ideas of your own? Send them along and I’ll post them on the blog.

In many ways, this is a great time to buy Pinellas County real estate, especially in certain market segments. Give me a call and we’ll discuss: 727-643-7100, or e-mail me at beth@bethfrederick.com .

Tags: First time homebuyers, Foreclosures, home sales, pinellas county, Pinellas County real estate, real estate, short sales

Tampa Bay, nation show some rallying in real estate prices

Every few months, people who are interested in the real estate market turn their attention to the S&P/Case-Shiller Home Price Indices, the most reliable measurement of home prices in the nation. 

That quarterly report came out today, and it contains some encouraging news – home prices were up in the second quarter of 2011. According to the Case-Shiller report, the U.S. National Home Price Index went up 3.6 per cent in the second quarter. In the previous quarter, the one ended at the end of March, the Home Price Index was down 4.1 percent. 

Any bad news in this report? Well, while the second quarter was up from the first quarter, it was down 5.9 percent when compared to the second quarter of 2010, one year ago. 

Nationally, home prices are about where they were in early 2003. 

Case-Shiller comes up with its national figures by keeping track of home prices in 20 metropolitan areas. One of those areas is Tampa Bay. Pinellas County real estate is not considered on its own, but the Tampa Bay real estate numbers should be very close to our own here in Pinellas County. 

Tampa Bay has taken a worse-than-average hit when it comes to home values for the quarter. Values are down seven per cent in this most recent quarter when compared to a year ago. That’s more than a percentage point more than the national average. 

Not as bad as such places as Minneapolis or Portland, Ore. or Phoenix, but worse than such cities as New York, Boston or Washington DC. 

“This month’s report showed mixed signals for recovery in home prices,” said David M. Blitzer, chairman of the Index Committee at S&P Indices. “No cities made new lows in June 2011, and the majority of cities are seeing improved annual rates.” 

Blitzer said the numbers show that regional markets have to be considered as separate entities – the national housing market is not rising or falling as one. So don’t simply go by whatever national real estate figures you see in the newspaper — remember that values of Pinellas County real estate may be quite different.

You can see the Case-Shiller news release here.

Tags: case-shiller, home values, Pinellas County real estate, Tampa Bay