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Interest rates are low, but they won’t always be. Remember that when you consider buying a home in Pinellas County

What single factor may splash cold water on the recovering housing market? According to a CNN/Fortune Magazine report, it could be interest rates.

“What’s that?” you say. “Interest rates are at historic lows. Interest rates seem to be the one single thing that we don’t have to worry about when we think about the housing market.”

Yup, you are correct.  But according to the report, rising interest rates could be looming. And if that comes true, it will retard the housing market recovery.

According to the report, there are a number of factors that should have favorable impacts on a better housing market – strong improvements in the rate of single-family housing starts, more construction permits being pulled, and an upward trend in home sales across the nation, to name just three.

And let’s not forget really, REALLY low interest rates.

But, according to the report, interest rates will inevitably rise. And when they do, mortgage costs will go up. And that will be an impediment to a market recovery.

Those historically low interest rates are around 4 percent right now. But the MEDIAN interest rate, looked at long-term, is more like 9 percent. The report says that when interest rates go up, as they inevitably will, the effect is likely to be like an anchor on the recovery of the housing market.

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Something else that is probably inevitable – people saying, “Wow, I wish I had purchased a home in Dunedin or Palm Harbor when the prices and interest rates were really low.”

That doesn’t have to be you. Call or e-mail me now and we’ll discuss what you want to accomplish home-wise. I’m always available! beth@bethfrederick.com, or 727-643-7100.

Tags: Dunedin, home, interest rates, Oldsmar, Palm Harbor, pinellas county, purchase

Waterfowl love living in Dunedin

As I’ve said before here, I love Florida’s birds — they are one of things that make living here so interesting.

There’s a pond a few steps from my back door, and it attracts all sorts of different birds. There’s a family of ducks that live there, and they are there every day, but other waterfowl pop in for vistits pretty regularly.

I was outside the other day when this big guy dropped in. I think it’s a heron of some sort, but I’m no expert and I couldn’t find a picture on the internet of a bird that exactly matched this fellow, so I’m not really sure what he is. If you recognize it, please post what you know.

What’s the point of bird pictures on a blog that specializes in Pinellas County real estate? Good question. But it’s my blog, and I like birds, so you can expect to see some photos of birds that I come across in Pinellas County. This particular guy is in Dunedin, a little south of Palm Harbor.

Tags: birds, Dunedin, Palm Harbor, pinellas county, real estate, wildlife

Christmas in Palm Harbor

Yes, we celebrate Christmas in Pinellas County. It may not be the cold, crisp, white Christmas we were used to in New England, but it’s stilla  beautiful season. Like anywhere else, the local residents do their best to decorate their homes in bright, seasonal splendor. I’ll try to post some more examples between now and Christmas Day. This house is in Palm Harbor.

Tags: christmas, Christmas lights, homes, Palm Harbor, pinellas county, real estate

200 posts about Pinellas County real estate

I started this blog about Pinellas County real estate a little over five years ago. Lots of things have changed since then — I started the blog under a different blog name, and I used a different blog platform back then.

I mention all this because we just reached an important milestone — 200 blog posts, all of which relate in some way or other to Pinellas County real estate. The blog entry about three entries back, entitled “What’s the outlook for first-time homebuyers in the Pienllas County real estate market?”, was our 200th entry.

Just for fun, I scrolled all the way back to the beginning and took a look at our first blog entry, back on May 4, 2006. It’s about Strachan’s Ice Cream. (I think I may have posted a few before that one, but I seem to remember that a handful of blog entries didn’t survive the transfer of content from one blog platform to the other.)

Anyway, that’s a lot of stories just about real estate in Pinellas County, even though a few of them have strayed a little bit from that single subject.

Feel free to page back through the old entries. Most of them are still informative about homes and real estate in Pinellas County, or more specifically real estate in Palm Harbor, Clearwater, Dunedin, Tarpon Springs, Crystal Beach, Ozona, Oldsmar and Safety Harbor.

Tags: Crystal Beach, Dunedin, Oldsmar, Ozona, Palm Harbor, Pinellas County real estate, real estate, Safety Harbor, Tarpon Springs

Hurricanes don’t come ashore in Pinellas County very often, but if one does…

We need to be prepared. So plan, plan, plan, and take measures that will minimize risk and damage.

 Below is a list of hurricane preparation tips. Have a tip of your own to share? Tell us below and help keep others safe.

 If you are evacuating your home:

•  Turn the pilot light off on your water heater and furnace, then turn off the gas line valve near the appliance. Finally, turn off your gas at the meter. This will reduce the probability that a tree falling on the roof will break an active gas line and create the chance for a spark to cause a fire. Turning off valves working from the appliance to the meter will make it easier to reignite on your return by reversing the process.
• Turn off your master water supply
• 

  Hurricane supplies

   While some would recommend leaving your master breaker on for your alarm and refrigerator function, if you are leaving the property due to the severity of the weather, chances are the power may be lost anyway. It’s really safest to shut it off. The reason is that if the power surges, as it does when the power company is trying to restore the down service or with blowing transformers, it can damage electronics including HVAC systems. Homes equipped with a generator must turn off the main breaker to avoid shifting power back out to the street, as this can be dangerous for utility company workers or if a line has broken from the property with the generator. If you are not going to be leaving the property you can, and should, keep the main breaker on until the power goes out.

•  Unplug all fixtures or small appliances that can be accessed.
•  Bring into the garage, or otherwise secure, all movable exterior items such as small plants in pots, lawn furniture and pool equipment.
•  Fill all vehicle fuel tanks.
•  If you have time, trim all branches or heavy bushes that could damage windows.
•  Use wind shutters: either pull down your professionally installed hurricane shutters or install your own plywood panels.*

Take with you:

•  Food and snacks for two days
• Two gallons of water per individual
• Clothing for one week
• First aid kit
• Medications for 30 days
• Flashlights and spare batteries
• Cash
• Important documents (wills, insurance, licenses, medical and bank records as needed)
• Pet care items
• Tell a neighbor who is staying where you are going and how to contact you. Exchange numbers.

 If you are staying: (Highly discouraged if you are in a storm surge area or near the immediate path of the storm):

•  Increase food supplies to 3-7 days—preferably non-perishable food items.
•  Fill up your propane tank for your grill or buy two sacks of charcoal.
• Make sure you have a functional fire extinguisher. ABC type will work on any fire.
• Remember, with down trees and no reliable phone service, 911 may not be an option.
•  Increase water supplies to one gallon per person per day.
•  Adequate toiletries, diapers and special items to last at least one week
•  One flashlight per individual and one spare set of batteries per light
•  Increase cash on hand.
•  Battery operated radio
•  Toys books and games
•  Tools
•  Clean and fill the tub the night before land fall. This water will be used for pets and flushing toilets.
•  Do all of your laundry before land fall. You may not have a chance for a week or so.
•  Take digital pictures of your home and each room. This will support future insurance claims.
•  Store your valuable papers in a waterproof container or bank vault
•  Fill bags with ice from your ice machine
• Back up your computer data and store it in a safe place

 Additional steps for family safety:

• Discuss hazards that could affect your family (storm surge, rising water, down power lines).
• Determine a safe escape route and two meeting points if you have to evacuate your house unexpectedly. Have a contact person out of the area that each family member can contact if you are separated.
• Locate the safest room in your home. Pre-stock with pillows and blankets if room allows.
• Plan for taking care of your pets.

*According to the National Hurricane Center (NHC), “In past hurricanes, many homeowners upon returning have noticed their temporary plywood shutters blown off because they were not adequately fastened. If you have a wood-frame house, use adequate fasteners to attach the panels over the openings when a hurricane approaches. Have these temporary shutters stored and ready to use since building supply stores generally sell out of these materials quickly during a hurricane warning. If your home is made with concrete blocks, however, you will have to install anchoring devices well in advance.”

A map showing evacuation routes, county shelters, and emergency numbers can be see here.

(Thanks to USInspect.com for this article)

Tags: hurricanes, Palm Harbor, pinellas county, real estate

Five ways to make sure you get that Palm Harbor house you really want

A real estate client of mine recently had a very disappointing experience – she made an offer on a home in Pinellas County she really wanted, only to lose out to another, higher offer.

Of course, it wasn’t the first time that one of my clients was disappointed when a competing offer prevailed. But it did get me to thinking – how can you avoid the disappointment of losing out to another offer from some other home buyer when you find that one-in-a-million home that you just have to have?

So here are five ways to make sure that your offer is the one that the seller chooses:

1. TAKE YOUR BEST SHOT: If you’re shopping for a bargain, go ahead a lowball your offer to your heart’s content. But if you find the perfect property and you have your heart set on it, make an offer that the seller can’t refuse. You’ll pay a premium price, but chances are you’ll get what you really want, and in a few short years the price you paid won’t matter to you.
2. OFFER A SIGNIFICANT DOWN PAYMENT: A big down payment signals financial strength. That may communicate to the seller that financing won’t be a big problem for you, and the deal is likely to go through.
3. PAY CASH: If a big down payment signals financial strength, a cash offer completely eliminates any questions about financing. Of course, not everyone can pay cash for a house. But if you can do it, a cash offer may help you get what you want. And you can always finance the property later.
4.  OFFER PLENTY OF EARNEST MONEY: Putting a big pile of cash up front as earnest money says, “I am a serious buyer.” Making an offer that’s backed up by a small amount of earnest money conveys a number of messages, none of them very good. A seller may see a small amount of earnest money as a lack of seriousness on the part of the buyer, or a lack of financial soundness. Now isn’t the time to look cheap.
5. AVOID CONTINGENCIES: Asking the seller to make repairs, upgrade systems or throw in that dandy bedroom set are all factors that can make the deal less palatable to the seller. If you really, really want that house, don’t muddy the waters.

If all you want is the deal of the century, pay no attention to these suggestions. But if you really, really want that one special house, make your offer irresistible.

Tags: home, Palm Harbor, real estate

Why the increase in home sales contract cancellations?

Why do home purchase contracts get cancelled?

You spend weeks or even months searching for just the right home. After a lengthy search, and after kissing a lot of frogs, you find your prince of a home and make an offer. You and the seller finally agree on a price and terms; at last you have a contract!

But instead of everything moving forward smoothly, something happens, and you end up with a cancelled contract.

After all your careful work, how can that be?

Cancelled real estate contracts are one of the side affects of this very difficult real estate market, and they can happen for a multiude of reasons. The National Association of Realtors (NAR) reported this month that real estate sales slipped during the month of June for the third straight month, and one of the reasons was an increase in the number of cancelled sales contracts.

What’s the reason?

No one really knows for sure, but the NAR points out that tighter credit standards might be one reason. If a loan application is unexepectedly rejected because of credit issues, you can say goodbye to your sales agreement. Likewise, tighter appraisals might be a contributing factor; if a home doesn’t appraise for the agree-upon selling price, that can mean another sales contract that ends up going nowhere.

However, economic uncertainty and the federal budget debacle may be causing hesitation among some consumers or lenders.”

Other possible reasons, according to the NAR: general uncertainty about the nation’s economy, and about the federal budget. That uncertainty may affect home buyers and sellerds as well as mortgage lenders.

Lower limits on loan amounts are scheduled to go into affect on October 1. That is several months off, but some lenders may be applying those lower limits already, anticipating that same current sales may not close before the end of September. That could be having an impact, too.

If you are planning on buying a home in the near future, you may want to call me soon so we can discuss ways of making sure your sales contract stays together until the closing.

I’m always available for a chat at 727-643-7100, or via e-mail at beth@bethfrederick.com

Tags: mortgages, Palm Harbor, pinellas county, real estate, real estate contracts

Adjustable rate mortgages on the rise again in Palm Harbor

One of the casualties of the real estate market “collapse” was the adjustable rate mortgage. ARMs were hugely popular just a few years ago, when home prices were at their highest and borrowing cheap money was easy. But many home buyers went back to the sensible old 30-year fixed-rate home mortgage when more conservative financing seemed like the right way to go.

But not everyone shied away from ARMs. Even though the total number of adjustable rate mortgages was way down in the first quarter of 2011, the total market share of ARMs actually rose to its highest point since 2008. Inside Mortgage Finance, a mortgage trade publication, reports that ARMs actually accounted for 12 percent of all home mortgages in that first quarter of 2011.

Why is that?

Mortgage rates are really low, and the rates for ARMs are REALLY low, and some buyers simply have a hard time resisting that fact. ARMs are especially attractive when mortgage money is expensive, but people really like those rock-bottom rates no matter what the prevailing rates are.

Adjustable rate mortgages are usually written for one, five or seven years, and their rates can go either up or down at the end of the mortgage term. It’s hard to imagine that the rates on new ARMs will be going anywhere but up, current rates being as low as they are.

But for some home buyers, that fact is not all that important. Some people buy homes knowing that they will be turning around and selling their new properties in just a few years – well within in the term of the ARM. In a case like that, there really isn’t much of a down side, or risk of an escalating mortgage rate.

Also, some people don’t like debt and have serious plans to pay off their mortgages in just a few years. If you are one of those people, once again the risk of getting caught with an escalating ARM isn’t very high.

The danger lies in getting an adjustable rate mortgage simply because of the more attractive rate, with no thought given to how you will cover your mortgage payment if the rate goes up in a few years. If you plan to stay in your home for a long time, an ARM may not be a very good strategy for you.

What’s the best mortgage strategy for you? Why don’t you give me a call and we’ll discuss your own special needs and strategies – 727-643-7100.

Tags: Mortgage, Palm Harbor, pinellas county, real estate

Murals adorn the walls of Palm Harbor real estate

If you’ve ever browsed through this blog before (yeah, I know, I haven’t exactly been a blogging fool lately), you probably know I enjoy finding and photographing murals in Pinellas County.

For some reason, this area is just brimming with murals of all kinds. Tampa, St. Pete and Clearwater are the best places to find them, but murals are all over the place if you just keep your eyes open.

Recently, I was coming out of the Publix near the corner of Alt. 19 and Alderman and I happened to look across the parking lot at the back of a strip mall building.  Sure enough– a bright, very graphic mural showing sunshine and a big, breaking wave. I didn’t see an artist’s signature, but the next time I’m there I’ll look a little more carefully. If I can find out who did the work, I’ll share it here.

Tags: murals, Palm Harbor, real estate

Savannah: Worlds away from Palm Harbor

Why a post about Savannah, Ga., when this is a blog about Pinellas County real estate? 

Excellent question.

The thing is, every once in a while it feels good to get away from Palm Harbor real estate and take a look at real estate in some other locale — hopefully one that has a great selection of restaurants.

So last weekend we decided to take a few days off and head for Savannah. We drove up on New Year’s Day and came back three days later. We took the Paula Deen tour, ate dinner in her restaurant, took a long walk through the historic district, had some heavenly ice cream at Leopold’s (an ice cream shop founded almost 100 years ago) and just generally had a wonderful time in spite of overnight temperatures in the 20s.

Once nice thing about living in Pinellas County is that we are a day’s ride or less from some great getaway spots — Miami and the Keys to the south, Orlando and St. Augustine to the east, Atlanta and the Georgia mountains to the north, to name a few.

We don’t take advantage of all that near enough. Maybe this year we will.

Tags: Palm Harbor, pinellas county, real estate, Savannah