March 10, 2013, Daylight Savings Spring Forward

Daylight saving begins, March 10, 2013. This is just a friendly reminder to turn your clock one hour forward at mid-night, March 10th. Enjoy the extra daylight to get all of your work done. Personally, I look forward to daylight savings because it allows me to show homes later in the evening. Quick note from your Tampa Realtor, Gloria Walters,www.gloriawalters.com.

2013 Projected to be A Great Year for Florida’s Buyers and Sellers

Florida Realtor’s chief economist, Dr. John Tuccillo predicts that Florida’s real estate market will improve in 2013, considering the stronger economy. Over the past two years, job creation has improved across the state. Better jobs, equals higher standard of living and better housing conditions.

Another positive sign includes the low mortgage rates. Some buyers may find it difficult to secure a mortgage, due to stringent credit criteria. However, it still remains an attractive incentive to secure a 30-year, fixed loan with an interest rate under 5%.

Cash is still King. Sellers are seeing more and more cash offers which prove to be very favorable in multiple offer situations. These cash offers are often from investors who will remain active throughout 2013.

Foreclosures, short sales and other distressed properties will also remain very much prevalent in 2013. Although in abundance, the foreclosures and short sales have stabilized and both real estate professionals and buyers have adjusted to this market. Foreclosures and distressed properties are so prevalent that they have become their own property type like condos, single family homes, vacant land, etc.

New home developers will also move forward with some projects this year. They won’t build in large volumes; however, there is enough confidence in this year’s market to build new homes in niche markets.

International buyers and investors are anticipated to continue to acquire homes in bulk. The largest acquisitions are said to be had by Canada and Latin American, specifically narrowed down to Brazil and Venezuela. Florida can also look forward to a number of new residents. Many retirees who lost money back in 2008/2009 are slowly regaining this wealth and are anticipated to move to Florida to retire.

The Real Estate Market Is Alive & Well

There are fewer homeowners that are behind on their mortgage payments. According to CoreLogic, the number fell from 12.1M in 2011 to 11.4M in the first quarter of 2012. The decrease in-turn shows a slow increase in the price of single-family homes, according to a recent housing index. Has the market bottomed out? Some experts believe that the market “bottomed” in January 2012.

What is evident is that there is a change in the culture of the real estate market. The buyer’s confidence has increased. More and more individuals are looking to purchase homes to capitalize on the low interest rates. Investors are also flooding the market to secure a cheap investment property. Some investors look to flip, while others reap the rental benefits until they can sell in a more seller favorable market. Despite the skeptics, the real estate market is alive and well. Regardless of home values, the individuals who understand the benefits of this market are certainly taking advantage. If you are looking for a diligent Realtor, to assist you with your real estate goals, I encourage you to give me a call or send me an email. I look forward to working with you in attaining your real estate dreams.

Short Sales, Shorter Process

 

 

The short-sale process is expected to get shorter starting June 15. New guidelines issued under the Federal Housing Finance Agency will require Fannie Mae and Freddie Mac to give homebuyers of short sales notice of their final decision within 60 days. The new guidelines also will require the mortgage giants to respond to initial short-sale requests within 30 days of receiving an offer.

The speedier process is expected to be a boost to the housing market, Michael McHugh, president of the Empire State Mortgage Bankers Association, told the New York Times. Homebuyers and sellers often have to wait months before they receive a short sale decision from a lender. Some deals fall apart just from the wait alone.

Short sales have been increasing in recent months as many lenders find them more appealing than foreclosures, which can cost more and take longer to remove from their books.

Short sales now outpace foreclosure sales in many parts of the country. Short sales represent more than 14 percent of existing-home sales, according to CoreLogic housing data from March, the most recent month available.

McHugh says that a faster short-sale process may be particularly helpful in speeding the recovery in judicial states, where foreclosures must go through the courts before they are approved. Now short sales may be viewed by defaulting homeowners as more of an option if they want to avoid foreclosure.

“There should be a significant improvement in the turnaround,” McHugh said regarding housing markets with judicial foreclosure processes.

Source: “Speeding Up Short Sales,” The New York Times (May 24, 2012)

Short sales lose appeal among first-time buyers

A short sale occurs when a seller, sells his/her home for less than the amount owed. For example, seller A owes $100,000 for their single family home, but sells to buyer A for $50,000.  Since the home is sold for less than what the seller owed, this transaction is called a “Short Sale”. Short sale homes relieve the seller of a mortgage they could no longer afford and allow a buyer to purchase the home at a great price point. The short sale process could be cumbersome and takes a lot longer than traditional sales. The turnaround times can be anywhere from 90 days to nine months, sometimes even longer. According to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, short sale purchases for first time buyers have dropped to 39.7% of total transactions for the month of August. The survey further explains that buyers are frustrated with the approval response times, the extended time to close and the unexpected delays. Some buyers consider placing multiple offers on different homes and choses the home that wins the race to the closing table. When looking to purchase a short sale, hire a Realtor who can help you uncover all that you can about the home. 

Calling All Investors to the Rental Market

I recently read an article from Money Magazine entitled, “Cashing in on Rental Property”. This article solidified my belief in the rental potential of the current real estate market. Low priced homes become available on the market, week after week, many with tenants already in tact.

According to a recent study, nearly 35% of occupied U.S. homes were rentals in 2010, which is a 33.8% increase from 2000. The demand for rentals is apparent. Homeowners who have lost the loan modification battle have circumstantially become renters.  Over 500 cities nationwide are experiencing an increase in home rental demand.

From an investment perspective, this rise in rental demand yields an opportunity for increased rental income. According to the real estate research firm Hotpads.com, the price of rent increased 11.6% nationally in 2010 to $1,320 a month on average. The ‘flipping’ opportunities that were prevalent back in 2005 may be slim in today’s market; however, if investors are looking to own rental properties and build their real estate portfolio, this is the time to capitalize. According to a survey by the National Association of Realtors® (NAR), investors say they plan to hold onto their rental property for 10 years before selling.

Investing in today’s real estate market is an excellent long-term strategy. If you are looking to build your real estate portfolio, give me a call. I’ve been working with investors since 2006. My niche is helping Tampa’s savvy investors own in today’s market. Whether you are looking for a fixer-upper, or a great deal in a desirable community, I can help you accomplish your goal.