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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

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

NAR says foreclosure sales way up from previous year

 The National Association of Realtors held its annual convention in Orlando earlier this month. One thing that’s always interesting to review is the statistics that NAR collects.

The statistics that they released at this convention were based on a massive survey that NAR conducted between July 2007 and June 2008. In all, NAR asked a number of questions of people who bought or sold property during that time frame. In all, 133,000 people were questioned.

One question asked of buyers was: Did you purchase a home that was in foreclosure? Six percent of the buyers responded affirmatively, and a whopping 38 percent said they considered buying a forclosure property but just couldn’t find the right one.

That six percent number is up from just one percent in the previous year.

It ought to be very interesting to see what that answer is next year.

I’ll be providing answers to more questions in the NAR survey in the coming days.

Tags: Foreclosures