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Bobby J

Beach Fanatic
Apr 18, 2005
4,043
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Blue Mountain beach
www.lifeonshore.com
Another question: How is the decreased availability of jumbo loans affecting what sells? Credit has been extraordinarily tight in that sector from what I have read, and rates have been quite high. So are the properties under $500K, say, selling at a brisker pace?

Also: Are we seeing the return of the (at least occasional) all-cash buyer?

About 6 months ago, it seemed everyone was cash. The past few months we have seen more loan action. To use a catch phrase, most of the people we deal with right now do not "run in herds." They are ready to buy if the price is right. They are not concerned with continued depreciation because they feel they are buying at below replacement cost. They like the property they are looking at and are looking at the property as a long term hold. If the values go lower they are not worried because within time it will rebound at least to a normal market. When, is not an issue. They love the area and have always wanted a beach home. They may rent the property but do not rely on these numbers to pay the mortgage. They are extremely educated on buying property and have great knowledge of finance. BTW, none (except one) that I know of purchased in 2003-2005. The one that did took his loss and today currently flips properties with me in this market. He has been able to do 3 turns in one year and we are currently working on two more.
 

TooFarTampa

SoWal Insider
About 6 months ago, it seemed everyone was cash. The past few months we have seen more loan action. To use a catch phrase, most of the people we deal with right now do not "run in herds." They are ready to buy if the price is right. They are not concerned with continued depreciation because they feel they are buying at below replacement cost. They like the property they are looking at and are looking at the property as a long term hold. If the values go lower they are not worried because within time it will rebound at least to a normal market. When, is not an issue. They love the area and have always wanted a beach home. They may rent the property but do not rely on these numbers to pay the mortgage. They are extremely educated on buying property and have great knowledge of finance. BTW, none (except one) that I know of purchased in 2003-2005. The one that did took his loss and today currently flips properties with me in this market. He has been able to do 3 turns in one year and we are currently working on two more.

Now that's a rundown. Thanks Bobby! :wave:
 

Smiling JOe

SoWal Expert
Nov 18, 2004
31,648
1,773
TFT, I read a story the other day which noted that a large bank (Bank of America, I believe) was going to begin focusing on the jumbo loan market (loans of $417,000 or more) because they recognized that no one was touching it.

It seems that the lenders don't like condos as much as single family homes, but banks are still lending -- it is one way which they will be able to bring in money, via interest. They want to see 20% down, and it will depend on the number of homes owned by the applicant, credit score, debt/cash ratio, etc. On condos, lenders are even asking to see the financials of the condo association, which was unheard of for a while.
 

jpbhen

Beach Fanatic
Jul 10, 2005
521
86
Seagrove/Cincinnati
cavuto today

caught wayne rogers on cavuto this afternoon on fox business channel. he was really talking up the real estate market on the panhandle (rogers' only complaint was all of the cars on highway 98!) his take was that the area here has bottomed out and is on its way back up. and that this is the beginning of a wider recovery of real estate in florida as a whole.
 

SHELLY

SoWal Insider
Jun 13, 2005
5,775
802
caught wayne rogers on cavuto this afternoon on fox business channel. he was really talking up the real estate market on the panhandle (rogers' only complaint was all of the cars on highway 98!) his take was that the area here has bottomed out and is on its way back up. and that this is the beginning of a wider recovery of real estate in florida as a whole.

His company has dibs on the ole Panama City Beach Airport property--he's talking his book.

.
 

Kurt Lischka

Admin
Staff member
Oct 15, 2004
12,457,910
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SoWal
mooncreek.com
Florida Realtors and Gov. Crist agree: ‘Now’s the time to buy’ a home in Florida

TALLAHASSEE, Fla. – April 15, 2009 – Ten Realtors from across Florida met with Gov. Charlie Crist this morning to discuss increased home sales and other positive trends in their markets, as well as offer insight into some current issues facing the real estate industry. It’s part of this year’s Great American Realtor Days, April 14-15, when about 1,000 Realtors from throughout the state join forces at the state capital to meet with their legislators and discuss concerns affecting all Florida residents.

Representing markets from Miami to Jacksonville and all points in between, Realtors reported an upswing in existing home sales in the past three to six months, when comparing year-to-year activity and also month-to-month sales figures. John Sebree, vice president of public policy for the Florida Association of Realtors? (FAR), kicked off the Real Estate Roundtable meeting with Gov. Crist by noting that February’s statewide existing home sales rose 20 percent over the same period last year, according to FAR data. He also reported that February’s home sales were about 17 percent higher than January’s statewide sales activity.

Realtors also told the governor about other positive indicators such as: mortgage interest rates under 5 percent; reduced housing inventory levels as buyers take advantage of current, more affordable housing opportunities; and encouraging market reaction to the federal economic stimulus package, especially the new $8,000 first-time homebuyer tax credit.

Upon hearing these reports from around the state, Gov. Crist said, “It doesn’t get much better than this. [Housing] supply and demand is going to come into balance here. Two to three years from now, people will be saying, ‘Back in April 2009 I could have gotten that home for so many dollars’ – so you don’t want to wait.

“Prices have gotten as low as they can. Now is the time to buy, while the deals still exist,” the governor said.

Discussing some of the challenges in today’s market, many Realtors pointed to difficulties with so-called “short sales,” where the bank or lender agrees to accept less money on a home sale than the seller owes on the mortgage. They said that short sales are problematic not only because of how long it actually takes to finalize the sale, but also because of the inconsistencies in information and documents required by lenders. Streamlining the short-sale process and providing consistency in required documentation among the lenders would boost the recovery of Florida’s real estate market.

Solutions to ease lenders’ restrictions on the state’s condo market are also needed, said Edgewater Realtor Robert Clinton. “Not only is the prospective condo buyer having to be approved for a mortgage, but the condo owners association itself has to be approved and qualified, which is causing problems,” he said.

Largo Realtor Alan Riley told Gov. Crist that 50 percent of buyers involved in recent home sales in the Tampa Bay area paid cash for their purchases, a strong indicator that investors have returned to the housing market.

“Savvy investors have returned to our market as well,” added Eric Sain, a West Palm Beach Realtor. “But we’re also seeing a lot of young families buying a home to settle down and establish roots in the community. That’s a sign that people aren’t leaving the area, aren’t leaving Florida.”

Gov. Crist agreed, saying, “Of course they are [establishing roots] – it’s Florida. Why would they go anywhere else?”

Not only is it a great time to buy a home in Florida, it’s also a great time for businesses to move to the Sunshine State, noted Suzanne Sherer, a Fort Myers Realtor. Commercial and business properties are readily available in a range of price options, she said, providing prime opportunities for entrepreneurs. She asked the governor and state leaders to take steps to encourage the relocation of businesses and industries to Florida.

At noon today on the steps of the old Capitol, Gov. Crist addressed the crowd of nearly 1,000 Realtors participating in Great American Realtor Days, applauding their perseverance and dedication to their profession despite challenges posed by the economy and the marketplace. Amid reports of increased home sales and other positive signs, the governor said that the “changing landscape” for Florida’s real estate markets is “nothing short of remarkable.”

Other participants in Gov. Crist’s Real Estate Roundtable included: Jacksonville Realtor Millie Kanyar; Fort Lauderdale Realtor Jesse Acevedo; Miami Realtor Carlos Cruz; Port St. Lucie Realtor Scott Wingfield; Panama City Realtor Katie Patronis; and Orlando Realtor Les Simmonds.
 

Kurt Lischka

Admin
Staff member
Oct 15, 2004
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mooncreek.com
I am by no means a cheerleader, and mostly just observe what's going on. I don't know what the future holds but it seems pretty good right now, at least for folks buying for long term. Those who need a home can find one that has costs which are favorable compared to renting. Investors can find something that makes sense. There are plenty of deals for beach lovers who want a second home in SoWal. They can feel good about buying here once again, after sitting on the sidelines for a few years.

Two years ago when I heard someone say (rarely) that the bottom was at hand I didn't take it serious for a second. I am beginning to hear it more often from different types of sources, and not just locally. My belief has always been that you can't predict the bottom, or even recognize it when it happens. You might get lucky and actually buy at the bottom, but it isn't necessary. Don't be obsessed with the bottom. There's nothing wrong with simply buying near the bottom, whether it's heading up or down, just buy for the right reasons.

If you bought a house now for $300,000 and the price drops to $275,000, and 5 years from now it is worth $325,000, is that a good buy?
 

Bobby J

Beach Fanatic
Apr 18, 2005
4,043
599
Blue Mountain beach
www.lifeonshore.com
I am by no means a cheerleader, and mostly just observe what's going on. I don't know what the future holds but it seems pretty good right now, at least for folks buying for long term. Those who need a home can find one that has costs which are favorable compared to renting. Investors can find something that makes sense. There are plenty of deals for beach lovers who want a second home in SoWal. They can feel good about buying here once again, after sitting on the sidelines for a few years.

Two years ago when I heard someone say (rarely) that the bottom was at hand I didn't take it serious for a second. I am beginning to hear it more often from different types of sources, and not just locally. My belief has always been that you can't predict the bottom, or even recognize it when it happens. You might get lucky and actually buy at the bottom, but it isn't necessary. Don't be obsessed with the bottom. There's nothing wrong with simply buying near the bottom, whether it's heading up or down, just buy for the right reasons.

If you bought a house now for $300,000 and the price drops to $275,000, and 5 years from now it is worth $325,000, is that a good buy?

None of us know when we will truly be at the bottom until the bottom is passed but you surely want to buy before you come out of the bottom. I always say which side of the curve do you want to buy at? As a buyer you will get a lot more seller negotiation as you approach or are at the bottom then you will when the bottom is actually realized. The sellers will be sooooooo ready to tell the buyers to take a hike once we are on the other side of the curve.
I always tell folks we are near IMO because the buyer arrogance has far surpassed the seller arrogance of 2003-2005. Please no offense here just making light of a true reality.
 

fisher

Beach Fanatic
Sep 19, 2005
822
76
Kurt, you are right, you know the location of "the bottom," only in hindsight.

Many saw the peak when it was occurring. Many will note the bottom as it occurs. We aren't there yet--but we are closer than we were a year ago. ;-)

As for Kurt's example, if you need to sell when it drops to $275k, not only did the house drop in value by $25k, but you also lost your closing costs of 2-3% of the original purchase price, plus you paid 6% commission to sell the house. So, the 10% or so drop in value actually results in about a 17% plus loss of cash.

In addition, in Kurt's example, the $325k price in five years assumes appreciation (which is unlikely in this market for quite some time) and even with such appreciation, you would still only be close to breakeven after considering real estate commissions on a sale in five years.

Only buy if you have enough money to take a big cash loss ast the bottom is not in sight.
 
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