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Buyers vs. sellers on home prices

julesroman — Thu, 02 Feb 2012 20:21:20 +0000

WASHINGTON – Jan. 3, 2012 – Housing analysts expect home prices to stabilize in 2012, but that doesn’t mean buyers and sellers won’t continue to be at odds over home prices.
While buyers are feeling good about the housing market and saying it’s a great time to buy, seller sentiment is falling to a record low, a new report by the Mortgage Bankers Association shows. Sellers say they’re unhappy because they can’t snag the prices for the home that they want.
The MBA report finds a large sentiment gap between homebuying and home selling that isn’t expected to narrow for at least five quarters.
From 1992 to 2005, seller sentiment remained high – between 40 percent and 60 percent, according to the report. However, since 2005, seller sentiment decreased to 7.6 percent. Meanwhile, homebuyer sentiment has remained high despite unemployment and economic conditions. Nearly 80 percent of American households say now is a good time to purchase a home.
As home values dropped over the last few years, many sellers refused to budge on their prices to reflect current market traditions. One reason why: About 20 percent of homeowners nationwide are considered “underwater,” owing more on their mortgage than their home is currently worth.
Also, some sellers realize there may be a benefit in waiting to sell or keeping the home on the market to hold out for a higher price, says the author of the report, Gary Engelhardt, a Syracuse economics professor.
“This (trend) could hold prices high enough to drive a substantial wedge between the existing buyer and seller,” Engelhardt says. “And a poor jobs market with limited mobility, a key driver of housing-market transactions, may exacerbate this.”
Source: “Buyers, Sellers Continue to Butt Heads on Home Prices,” HousingWire (Dec. 29, 2011)
© Copyright 2012 INFORMATION, INC. Bethesda, MD (301) 215-4688 http://www.hammockscapehaze.com/

Hammocks Preserve Cape Haze

julesroman — Mon, 30 Jan 2012 18:20:58 +0000

http://www.hammockscapehaze.com/

Introducing The Hammocks, a delightful coastal residential haven in the unique harbor and beach region of the Cape Haze Peninsula on Florida’s west coast. The gated enclave of charming villas and spacious condominium residences is nestled within an estuary preserve framed by palm and mangrove canopies, offer captivating coastal vistas overlooking a beautiful 197-acre nature preserve alongside the sparkling waters of Lemon creek.

UF: Fla. consumer confidence surges upward in January

julesroman — Wed, 01 Feb 2012 20:12:50 +0000

GAINESVILLE, Fla. – Feb. 1, 2012 – Consumer confidence among Floridians surged in January, up seven points to 77 from a revised December reading of 70, marking a steady rise in optimism, according to the University of Florida’s (UF) monthly survey.
Four of the five categories measured by the survey found increased optimism. One category that asks survey takers if they’re better off financially than they were a year ago rose four points to 60, its highest level since March 2008 when the U.S. economy began to falter. Expectations that their personal finances will improve by this time next year rose eight points to 86.
In addition, confidence in the nation’s economy over the next year went up dramatically by 14 points to 74. Trust in the U.S. economy over the next five years was upbeat, too, moving 10 points to 83. These figures parallel results of a University of Michigan study that show consumer confidence across the nation shot up from 69.9 in December to 75 in January.
Only one category dropped – whether or not it’s a good time to buy big-ticket items such as an automobile or a refrigerator, which fell four points to 81.
“Consumer confidence in Florida is now back to the level it was in January 2011,” says Chris McCarty, director of UF’s Survey Research Center in the Bureau of Economic and Business Research. “We are beginning the year with the same pattern as last year where there were relatively steady increases in confidence from the end of the summer with a surge to 77 in January 2011. This was followed by seven months of decline with the low of 61 in August 2011 when Congress debated the debt ceiling.”
The UF survey shows these increases ranged across income and age groups, except for lower income respondents whose perceptions of current personal finances declined slightly. Results also indicate little difference in confidence among political parties, which indicate that the rising consumer confidence is most likely linked to perceptions of the economy rather than concern about the upcoming November elections, McCarty says.
Employment gains, especially in trade, transportation and utilities, may help explain the boost in confidence. However, McCarty says, the drop in unemployment may also reflect a decline in the labor force, along with adjustments the Bureau of Labor Statistics used to remove seasonal fluctuations in its unemployment calculations.
Encouraging news about housing prices and stock market investments, which are the major asset sources for most households, also may be helping to buoy Floridians’ spirits. For instance, the median price of a single-family home increased in December to $134,300, a $4,000 gain from the previous month. In addition, the stock market is near a post-recession high.
“Concrete plans to modify Social Security and Medicare have been shelved, at least temporarily, which is a relief to many seniors,” McCarty adds.
Finally, although gas prices have increased nearly 20 cents a gallon over the past month, inflation overall remains low. In addition, interest rates are at near record lows and the Federal Reserve has announced plans to keep them low for the next two years.
“While many aspects of the economy are better this year, it remains to be seen whether this level of confidence will be sustained,” McCarty says. “The biggest threat to the U.S. economy, and therefore Florida, is the recession in Europe, which would affect Floridians primarily as decreased demand for Florida tourism, decreased demand for houses from foreign investors, and the stock market portfolios of workers and retirees whose investments would include companies with exposure to much of Europe. However, barring a very negative outcome to the turmoil over European debt, this pattern of confidence, if sustained, bodes well for Florida.”
The index used by UF researchers is benchmarked to 1966, which means a value of 100 represents the same level of confidence for that year. The lowest index possible is a 2; the highest is 150. The UF survey was conducted between Jan. 2 and Jan. 25, and reflects the responses of 420 individuals statewide.
© 2012 Florida Realtors® www.hammockscapehaze.com

First-time buyers more willing to compromise

julesroman — Mon, 30 Jan 2012 20:08:17 +0000

WASHINGTON – Jan. 30, 2012 – When it comes to space and upgrades, first-time homebuyers are more willing to compromise than repeat buyers, according to the National Association of Realtors®’ (NAR) 2011 “Profile of Home Buyers and Sellers.”
While first-time buyers have big wish lists too, they seem most driven by finding a home that offers a reasonable monthly mortgage payment.
“Single homebuyers tend to value affordability above all when choosing a home and a neighborhood,” says Jessica Lautz, NAR’s manager of member and consumer survey research. “They also focus more on living some place convenient to friends and family, as well as entertainment and leisure activities.”
The median age of first-time homebuyers is 31, and about 26 percent are married with children.
First-time homebuyers tend to rate energy efficiency high on their wish list, as well as simple, no-hassle technology use in their house, the study finds.
But “even if they like the idea of solar panels, first-time buyers are not likely to spend an extra $20,000 to have them,” says Stephen Melman, director of economic services for economics and housing policy for the National Association of Home Builders.
First-time buyers also are willing to compromise on space: The median-size of a home purchased by a first-time buyer is 1,570 square feet.
Overall, “the top three things that buyers want are a great room instead of a formal living room, a walk-in closet in the master bedroom and a laundry room,” says Melman. “First-time buyers want the same thing, but they are more likely to be satisfied with a small laundry room without an attached mudroom, and with a smaller master bedroom and a smaller walk-in closet.”
But one thing first-time buyers aren’t as willing to compromise on: Buying a home that needs a lot of repairs.
“Buyers that don’t have any experience with home maintenance tend to be afraid of renovations, so home sellers should be sure to fix everything they can and make minor home improvements in order to appeal to first-time buyers,” Melman says.
Source: “Size Matters Most to First-time Buyers,” HSH.com and Fox Business News (Jan. 26, 2012)
© Copyright 2012 INFORMATION, INC. Bethesda, MD (301) 215-4688 http://www.hammockscapehaze.com/

Hammocks Cape Haze now a Healthy HOA

julesroman — Fri, 27 Jan 2012 03:47:27 +0000

After Years of litigation between BB&T and PNC, The Hammocks is now free and clear of any clouds on the Homeowners association. The Hammocks HOA is now fully funded with positive cashflow and ample reserves. Financing is now available. The Gulfstream group has taken over the developer units and they are now being marketed by Tarpon Coast Realty. Pricing starts at $179,000 for preserve view 3 bedroom 2 bath condominiums. With unsurpassed amenities on the Cape Haze peninsula, the Hammocks has cornered the market on affordable luxury condos.

visit www.hammockscapehaze.com today for details or call our sales center at 941 952 0000

Hammocks Sales Event this Saturday Noon to 4 PM

julesroman — Thu, 26 Jan 2012 19:23:54 +0000

Please note that we will be having a Sale at the Hammocks on Saturday Noon to 4 PM.

Open to the Public, The Hammocks sales and model center is open. This special event offers buyers large developer incentives on the first 5 units sold.

Refreshments will be served.

Tonight we will be having a Realtor party and preview 4-6 PM

Wine and cheese – see you there at the sales center

Please try to attend

www.hammockscapehaze.com

High downpayments: More harm than good?

julesroman — Thu, 26 Jan 2012 18:39:16 +0000

CHAPEL HILL, N.C. – Jan. 25, 2012 – To avoid future housing crises, the federal government is creating a QRM (qualified residential mortgage) rule – a minimum standard a buyer or refinancer must hit before most banks will consider originating a mortgage, as required under the Dodd-Frank financial law.
However, raising the qualifications to get mortgage approval will also push some potential homebuyers out of the market. Since any QRM standard has the potential for harm as well as good, the University of North Carolina conducted a study.
According to UNC, a mandatory 10% downpayment for mortgages would push about 38 percent of creditworthy borrowers out of the home market. If the federal government chose to make a 20 percent downpayment mandatory, 61 percent of potential homebuyers would be unable to buy property.
The study also looked at possible default rates. Raising mandatory downpayments to 10 percent or 20 percent each decreased the potential risk of default, as did demanding higher credit scores from buyers – but at what cost, asked researchers.
The study authors said that “Overall, the evidence … suggests that stricter underwriting may not be the best approach to reducing foreclosures when weighed against ensuring continued access to sustainable mortgage credit for a wide range of creditworthy borrowers.” Authors said that the marginal benefit of tighter mortgage standards did not justify the risk to the housing market.
Researchers concluded that federal QRM protections could be achieved through “responsible underwriting without having to set a bright line for the QRM market.”
The 44-page study is available in PDF format on the University of North Carolina’s website.
© 2012 Florida Realtors®

Are cash buyers driving down home prices?

julesroman — Wed, 25 Jan 2012 20:45:24 +0000

WASHINGTON – Jan. 25, 2012 – Cash buyers are sending home values down much lower than they otherwise would be, suggests a new survey by Campbell Inside Mortgage Finance, which polled more than 2,500 real estate agents nationwide.
In its December Housing Pulse Tracking Survey, the company found that investors accounted for one out of three real estate transactions last month, and about 74 percent of those purchases by investors were made using all cash.
“Investors have an over-sized command on the market since their ability to pay cash in the majority of transactions puts undue downward pressure on home prices,” an article at Housing Predictor notes about the study.
Cash buyers can be attractive to home sellers, banks and mortgage companies, since they do not usually come with contingencies, require extra time to secure financing, and tend to move more quickly to closing. As such, cash buyers tend to make purchases at lower prices than those who may need financing or come with contingencies.
Source: “Cash Buyers Pushing Home Prices Lower,” Housing Predictor (Jan. 24, 2012)
© Copyright 2012 INFORMATION, INC. Bethesda, MD (301) 215-4688

FHA to limit seller help at closing

julesroman — Mon, 23 Jan 2012 20:36:52 +0000

FHA to limit seller help at closing

WASHINGTON – Jan. 23, 2012 – Acting Federal Housing Administration (FHA) Commissioner Carol J. Galante announced the latest in a series of steps designed to strengthen FHA’s Mutual Mortgage Insurance Fund. FHA issued a final rule governing its lenders and announced a new rule, which it has not yet published, to “reduce the maximum allowable seller concession from its current level to one more in line with industry norms.”
Under current law, a seller may contribute 6 percent toward the buyer’s closing costs, which include prepaid expenses, discount points and other financing concessions. FHA previously proposed a lower rate in July 2010 and says its soon-to-be-released rule proposal will be based, in part, on comments received following that recommendation. The new proposal will also have a 30-day comment period once published in the Federal Register. FHA says a final rule will become effective after all comments are analyzed.
Any rule change remains controversial. If a seller cannot contribute more than 3 percent or 4 percent to closing costs, a buyer must bring more money to the table. The change could impact a housing market still finding its feet after the recent meltdown.
FHA, however, says the change is needed to keep FHA funding viable. According to FHA, the 6 percent cap creates “incentives to inflate appraised value.”
Lender requirements
The tighter lender rules call for FHA-approved banks, which insure more than 80 percent of all FHA forward mortgage loans, to meet stricter performance standards.
HUD may require indemnification for ‘serious and material’ violations of FHA origination requirements. A lender must also show a low delinquency rate. FHA says it will monitor lender performance on an ongoing basis.
© 2012 Florida Realtors®

The Hammocks of Cape Haze Luxury Living

julesroman — Mon, 23 Jan 2012 17:11:11 +0000

» News

Buyers vs. sellers on home prices

Hammocks Preserve Cape Haze

UF: Fla. consumer confidence surges upward in January

First-time buyers more willing to compromise

Hammocks Cape Haze now a Healthy HOA

Hammocks Sales Event this Saturday Noon to 4 PM

High downpayments: More harm than good?

Are cash buyers driving down home prices?

FHA to limit seller help at closing

The Hammocks of Cape Haze Luxury Living

Hammocksofcapehaze

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