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WASHINGTON – Sept. 2, 2010 – Following a sharp drop in the months immediately after expiration of the homebuyer tax credit, pending home sales have modestly risen, according to the National Association of Realtors® (NAR).

The Pending Home Sales Index (PHSI), a forward-looking indicator, rose 5.2 percent to 79.4 based on contracts signed in July from a downwardly revised 75.5 in June; it’s 19.1 percent below July 2009 when it was 98.1. Pending sales data reflects contracts and not closings, which normally occur with a lag time of one or two months.

“Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery,” says Lawrence Yun, NAR chief economist. “But the recovery looks to be a long process. Homebuyers over the past year got a great deal, and buyers for the balance of this year have an edge over sellers. For those who bought at or near the peak several years ago, particularly in markets experiencing big bubbles, it may take over a decade to fully recover lost equity.”

On the other hand, homes have not been this affordable in recent memory. “Affordability could reach a generational high in the second half of this year because of rock-bottom mortgage interest rates, helped partly by the Fed’s very accommodative monetary policy,” says Yun. “The loan underwriting standards are tighter, but homebuyers can improve their chances of getting a loan by staying well within their budget.”

The PHSI in the Northeast rose 6.3 percent to 62.5 in July and is 21.1 percent below a year ago.

In the Midwest the index increased 4.1 percent to 66.7 and is 25.7 percent below July 2009.

Pending home sales in the South rose 1.2 percent to an index of 86.3, and are 15.6 percent lower than a year ago.

In the West, the index jumped 11.6 percent to 95.0 and is 17.6 percent below July 2009.

The national index had fallen 29.9 percent in May and another 2.8 percent in June.

© 2010 Florida Realtors®

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Existing-home sales were sharply lower in July following expiration of the home buyer tax credit but home prices continued to gain, according to the National Association of EALTORS® www.realtor.org, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, dropped 27.2 percent to a seasonally adjusted annual rate of 3.83 million units in July from a downwardly revised 5.26 million in June, and are 25.5 percent below the 5.14 million-unit level in July 2009. Sales are at the lowest level since the total existing-home sales series launched in 1999, and single family sales – accounting for the bulk of transactions – are at the lowest level since May of 1995.www.realtor.org/research/chief_economist Lawrence Yun,NAR chief economist, said a soft sales pace likely will continue for a few additional months. “Consumers rationally jumped into the market before the deadline for the home buyer tax credit expired. Since May, after the deadline, contract signings have been notably lower and a pause period for home sales is likely to last through September,” he said. “However, given the rock-bottom mortgage interest rates and historically high housing affordability conditions, the pace of a sales recovery could pick up quickly, provided the economy consistently adds jobs.“Even with sales pausing for a few months, annual sales are expected to reach 5 million in 2010 because of healthy activity in the first half of the year. To place in perspective, annual sales averaged 4.9 million in the past 20 years, and 4.4 million over the past 30 years,” Yun added.

Mortgage Rates Dip According to Freddie Mac, the www.freddiemac.com/pmms national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.56 percent in July from 4.74 percent in June; the rate was 5.22 percent in July 2009. Last week, Freddie Mac reported the 30-year fixed was down to 4.42 percent.The national median existing-home price for all housing types was $182,600 in July, up 0.7 percent from a year ago. Distressed home sales are unchanged from June, accounting for 32 percent of transactions in July; they were 31 percent in July 2009.

“Thanks to the home buyer tax credit, home values have been stable for the past 18 months despite heavy job losses,” Yun said. “Over the short term, high supply in relation to demand clearly favors buyers. However, given that home values are back in line relative to income, and from very low new-home construction, there is not likely to be any measurable change in home prices going forward.

Inventory Rises Total housing inventory at the end of July increased 2.5 percent to 3.98 million existing homes available for sale, which represents a 12.5-month supply at the current sales pace, up from an 8.9-month supply in June. Raw unsold inventory is still 12.9 percent below the record of 4.58 million in July 2008.

NAR President Vicki Cox Golder said there are great opportunities now for buyers who weren’t able to take advantage of the tax credit. “Mortgage interest rates are at record lows, home prices have firmed and there is good selection of property in most areas, so buyers with good jobs and favorable credit ratings find themselves in a fortunate position,” she said.

A parallel NAR practitioner survey shows first-time buyers purchased 38 percent of homes in July, down from 43 percent in June. Investors accounted for 19 percent of sales in July, up from 13 percent in June; the balance were to repeat buyers. All-cash sales rose to 30 percent in July from 24 percent in June.

Breakdown of the Numbers

Single-family home sales dropped 27.1 percent to a seasonally adjusted annual rate of 3.37 million in July from a pace of 4.62 million in June, and are 25.6 percent below the 4.53 million level in July 2009; they were the lowest since May 1995 when the sales rate was 3.34 million.

The median existing single-family home price was $183,400 in July, which is 0.9 percent above a year ago.

Single-family median existing-home prices were higher in 11 out of 19 metropolitan statistical areas reported in July in comparison with July 2009 (the price in one of 20 tracked markets was not available). However, existing single-family home sales fell in all 20 areas from a year ago.

Existing condominium and co-op sales fell 28.1 percent to a seasonally adjusted annual rate of 460,000 in July from 640,000 in June, and are 24.0 percent below the 605,000-unit level in July 2009. The median existing condo price was $176,800 in July, down 1.7 percent from a year ago.

Existing-home sales in the Northeast dropped 29.5 percent to an annual pace of 620,000 in July and are 30.3 percent lower than a year ago. The median price in the Northeast was $263,800, up 4.8 percent from July 2009.Existing-home sales in the Midwest fell 35.0 percent in July to a level of 800,000 and are 33.3 percent below July 2009. The median price in the Midwest was $151,600, down 2.8 percent from a year ago.In the South, existing-home sales dropped 22.6 percent to an annual pace of 1.54 million in July and are 19.8 percent below a year ago. The median price in the South was $156,300, down 3.3 percent from July 2009.Existing-home sales in the West fell 25.0 percent to an annual level of 870,000 in July and are 23.0 percent below a year ago. The median price in the West was $224,800, up 3.3 percent from July 2009.

Source: NAR

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Three Reasons to Buy a Home Now

Stocks are up 50 percent from the March 2009 bottom. Some commodities have risen dramatically. The only asset class left in the cellar is real estate, says Michael Murphy, editor of the New World Investor stock newsletter.

As a result, Murphy is advising investors to buy now for these three reasons:

• Desperate sellers: Both home owners and lenders are eager to unload a flood of foreclosed and underwater properties. Buyers with the patience to push through these complex deals can save a bundle.

• Little competition. Because most people don’t have what it takes to negotiate their way through short sales and REOs, patient investors are winners.

• Low rates. Mortgage rates are at their lowest level in 40 years. If you believe inflation is inevitable, lock in now.

Source: MarketWatch, Michael Murphy (08/19/2010)

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ORLANDO, Fla. – Aug. 11, 2010 – Sales of existing single-family homes in Florida rose 21 percent in second quarter 2010 compared to the same period a year earlier, according to the latest housing statistics from Florida Realtors®. A total of 51,564 existing homes sold statewide in 2Q 2010; during the same period the year before, a total of 42,604 existing homes sold. It marks the eighth consecutive quarter that Florida has seen higher existing year-to-year home sales, according to the state association.

Statewide sales of existing condominiums in the second quarter rose 45 percent compared to the same time the previous year. This marks the seventh consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.

Statewide sales activity in 2Q 2010 also increased over 1Q 2010’s sales figure in both the existing home and existing condo markets, Florida Realtors’ records show. For 2Q 2010, statewide sales of existing homes rose 32.7 percent over the 1Q 2010 figure; statewide existing condo sales in 2Q 2010 increased 24.2 percent over the 1Q 2010 level.

Looking forward, the University of Florida’s Bergstrom Center for Real Estate Studies’ latest quarterly survey of real estate trends reported that job growth and the BP oil spill were cited as top concerns for the future outlook of the state’s real estate industry. The survey polls market research economists, industry executives, real estate scholars and other experts.

The center’s director, Timothy Becker, noted in the report that the oil spill has created “a cloud of uncertainty that is affecting all markets across the state. Our respondents indicate that the effect of the oil spill is being felt across Florida despite the fact that oil is only showing up on some beaches in the Panhandle.”

The survey reported the outlook for investment in industrial properties continues to brighten and is becoming increasingly positive.

Seventeen of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in 2Q 2010 compared to the same three-month period a year earlier; 18 of the MSAs showed gains in condo sales.

The statewide existing-home median sales price was $141,300 in 2Q 2010; a year earlier, it was $143,000 for a decrease of 1 percent. The 2Q 2010 statewide existing-home median sales price was 5.6 percent higher than the statewide existing-home median sales price of $133,800 in 1Q 2010. According to industry analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is a typical market price where half the homes sold for more, half for less.

In the year-to-year quarterly comparison for condo sales, 20,986 units sold statewide for the quarter compared to 14,430 in 2Q 2009 for a 45 percent increase. The statewide existing-condo median sales price was $98,900 for the three-month period; in 2Q 2009, it was $110,300 for a decrease of 10 percent. The 2Q 2010 statewide existing-condo median sales price was 3.2 percent higher than the 1Q 2010 statewide existing-condo median sales price of $95,800.

Low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 4.91 percent in 2Q 2010; one year earlier, it averaged 5.03 percent.

© 2010 Florida Realtors®

Xena Vallone Realty Moves to Expanded Offices

 

SARASOTA, FL – One year after defying the housing-market collapse and opening a real estate brokerage firm, Xena and David Vallone of Xena Vallone Realty have signed a lease for expanded quarters at 3562-A S. Osprey Avenue in Sarasota.

The new office, scheduled to open in August, nearly doubles the firm’s existing square footage and offers room to grow for an expanding staff.

We launched our company during one of the worst real estate markets on record with the belief that there would be a re-emergence of ‘the little guy,’” remembers Xena Vallone. “One year later, that premise has proved true. Real estate professionals must now work harder, and transactions are a lot more difficult, but that’s what the market needs.” The new office, located near the intersection of Osprey Avenue and Siesta Drive in an established West of Trail community, reflects the neighborly feel and focus of the boutique firm. Xena Vallone Realty now has seven associates, four of whom hold the Short Sales and Foreclosure Resources (SFR) Certification. The firm performed in the top 30 percent of the Sarasota market in sold properties during the first five months of 2010.

Vallone said she and like-minded associates believe in educating themselves to respond professionally to market demands, and in establishing and nurturing community roots. The company also has become adept at marketing through Internet resources, social media, local networking opportunities and the latest tools.They are well represented in service to the industry, business community and community at large, including the Sarasota Association of Realtors (SAR) International Committee and Realtor/Attorney Joint Committee, the Sarasota Chamber of Commerce; the Humane Society of Sarasota County; and the Sarasota-Bradenton Attorneys Real Estate Council. Vallone is a regular speaker on short sales, foreclosures and legislative initiatives.Vallone holds the Accredited Buyer’s Representative (ABR) Designation. Associate Ellen Esses has earned the National Association of Realtors (NAR) Green Designation. Associate Chaim Gleitmann holds the Transnational Referral Designation and is currently enrolled in the Certified International Property Specialist (CIPS) program. He has been building an international business.Vallone is Broker-Owner and President of the firm. Her husband, Vice President David Vallone, has assumed the lead role in marketing. Her sister, Renee Marquiss, an active Realtor, also serves as Office Manager.

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Property sales again reach highest level of the year in Sarasota real estate market

The Sarasota real estate market remained active and vibrant in June 2010, in spite of the loss of the federal home buyer tax credits, oil crisis rumors, and the sluggish national economy.

Property sales in June 2010 in the Sarasota market once again topped the 700 mark, with 776 total sales - once again the highest of the year and the highest total since December 2005 when 784 properties were sold. The figure of 776 sales topped the May 2010 total of 766, the previous high, and was 27.2 percent higher than June 2009, when only 610 homes and condos sold.

In June, 576 single family homes were sold, 28.3 percent higher than June 2009, when only 449 single family homes sold.  The median price was also trending higher at $175,000, the highest figure in 11 months.  Not since June 2009 has the market seen single family home values this high.

Condo sales in June were 200, a 24.2 percent increase over June 2009, when 161 condos were sold.  The median price of condos fell in June to $145,000, which primarily reflected distressed property sales.  Non-distressed condo sales saw a median price of $236,000, while for distressed properties, the median sale price was $88,000, about a third.

For the last 12 months combined, the median sale price for single family homes was $165,000. For condos, the median price over the last 12 months was $185,000.

Pending sales were once again strong, hitting 767 -  slower than the period during which homebuyers were eligible for tax credits.  The March and April pending sales figures both topped 1,000 and reflected a last minute rush to beat the federal homebuyer tax credit deadline.

"With the expiration of the $8,000 tax credit we had anticipated a potential drop off in sales, but the level of pending sales still shows strength in the market," said 2010 SAR President Erick Shumway. "The June figures are a testament to the strength of this market, and prove the old adage that all real estate is local. There are still a lot of serious buyers in our market, and we hope this very active period continues through the usually slower summer months."

The level of sales of distressed properties (foreclosures and short sales) rose slightly in June 2010 to 44.6 percent of the overall market, from 40 percent in May 2010. The distressed market topped 48 percent in late 2009.

The property inventory level dropped below the 6,000 level in June 2010 at 5,993, which is the lowest level since late summer of 2005.

Another interesting statistic in June was the fact that in nearly every price range below $250,000, inventory levels have dropped below a six-month supply, entering "seller's market" territory.  This generally precedes a period when price appreciation should be expected.

The months of inventory for single family homes in May 2010 dropped to 6.6 months, the number of months it would take to sell all available homes at the current pace. This was a significant drop from June 2009 - 10.0 months - and very near equilibrium. For condos, the figure rose slightly to 10.6 months, much lower than last June's figure of 16.1 months. Once the market reaches the 6 month level it is considered to be in equilibrium between a buyers and sellers market.

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Reports show that Sarasota Florida is the best buy in the Western World!

The report, published today in www.GlobalEdge.co.uk ranks popular resort and second home locations around the world reveals the cheapest western holiday home destination is Sarasota, Florida, which is little surprise given how much the market has fallen over the past two years and the number of agents currently selling distressed property to foreigners in the sunshine state.

Among the surprises: Apartments in Warsaw, Poland are selling for higher prices than Dubai.

Manhattan and Paris are running neck in neck, but Moscow makes them both look cheap. Little wonder that the Russians are on an international buying spree, with Hong Kong residents close behind them. With China now officially the hottest residential market in the world, US properties are practically an impulse buy.

International estate agency group Savills has published a list of best-value destinations in 35 countries across the globe.

Continue reading here

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Sarasota real estate market at highest level since 2005

Property sales in May 2010 in the Sarasota market once again hit the highest total since 2005 and median sale prices continued the steady pace observed in recent months.

The 766 sales were the highest for the year, topping the April 2010 total of 757, and were the highest total since December 2005, and 51.3 percent higher than the May 2009 total of 506 sales.

Pending sales were once again strong, hitting 857, but were slower than April 2010. The March and April pending sales figures both topped 1,000, and reflected a last minute rush to beat the federal homebuyer tax credit deadline.

"The May 2010 statistics continued to show that the Sarasota real estate market is continuing a steady recovery," said 2010 SAR President Erick Shumway. "We saw a slight dip in the pending sales, which will likely be reflected in the sales numbers over the next 30 to 60 days. But median sale prices are higher than last year at this time, and we remain optimistic."

Members of the Sarasota Association of Realtors® sold 539 single family homes and 227 condos in May 2010, a huge jump over May 2009, which saw only 375 single family homes and 131 condos sold.

The median sale price for a single family home was also trending higher at $169,000, up 8.4 percent from last May's figure of $155,000. For the last 12 months combined, the median sale price for single family homes was $165,000. For condos, the median price was $184,500, slightly higher than last May's figure of $181,000, while the median sale price for condos over the last 12 months was $192,000.

The pace of sales quickened for single family homes, with the average days on market dropping to 168, from 195 days last May. For condos, the figure stood at 213 days, slightly higher than last May's figure of 203 days.

The level of sales of distressed properties (foreclosures and short sales) rose slightly in May 2010 to 40 percent of the overall market, from 38 percent in April 2010. The distressed market topped 48 percent in late 2009, so the overall trend remains downward - a good sign for a market returning to normal.

The property inventory level remained steady in May 2010 at 6,094, which is the lowest level since late summer of 2005.

The months of inventory for single family homes in May 2010 dropped to 7.2 months, the number of months it would take to sell all available homes at the current pace.

This was a significant drop from May 2009 - 14.3 months - and very near equilibrium. For condos, the figure fell to 9.7 months, much lower than last May's figure of 19.0 months. Once the market reaches the 6 month level it is considered to be in equilibrium between a buyers and sellers market.

 

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Walking away from a mortgage you can still afford to pay has consequences; everyone knows that. Your credit score is shot and it can be impossible to get credit.Some homeowners, no doubt, believe that the credit score hit is worth getting out from a deeply underwater mortgage. They may owe, say, $500,000 when their house value is only valued at $350,000. And, they figure, there's no way it will ever be worth what they owe so it's better to get out from underneath the burden.

After default, they reason, they can raise their FICO scores by paying all their bills on time and eventually finance another home purchase.

Don't count on it.

While homeowners who default due to economic hardship, such as a job loss or divorce, normally must wait two to five years before buying a home again, walkaways may face double that time.

"It could be well over seven or eight years before [walkaways] are able to obtain a mortgage to buy a home again," said Jay Brinkmann, chief economist for the Mortgage Bankers Association.

Credit scores are only one component of a complete credit decision," Brinkmann said. "[In these cases] credit scores are not a good indicator of their willingness to continue to pay their mortgage."

But future underwriters will scrutinize their records very closely, and if they find no precipitating factors leading to the defaults -- no job loss, no health issues --the repaired credit score won't overshadow the black mark of a walkaway.

"If you made a strategic decision to default on paying your mortgage, it will work against you," said Bill Merrell of the National Association of Review Appraisers and Mortgage Underwriters.

Merrell, who teaches underwriting, said banks are looking at several factors in determining whether to grant mortgages: the amount of money borrowers have in the bank; employment histories; payment history.

However, banks may be far more lenient if the default resulted from factors somewhat beyond the borrower's control, such as from local economic problems. "They'll give you more consideration if it's job related," he said. But, he added, banks look at strategic defaults "very negatively."

That said, it's not impossible to get a loan. Banks still want to make interest payments, so they might be willing to gamble with a walkaway.

"It might be a little more difficult for them to borrow, but [banks'] drive for market share -- to profit from making loans -- will trump that caution," said Keith Gumbinger, of the mortgage information publisher HSH Associates. "I don't think we'll see a full denial."

It's hard to foresee the state of mortgage lending six or seven months from now, let alone seven or eight years into the future. So lenders may look at applications from one-time strategic defaulters and say, "Yes, they walked away but it's a whole different market now," according to Gumbinger.

Even so, lenders may require more from borrowers who walked away than those who didn't.

"To the extent they could get a mortgage," said Brinkmann, "they can count on needing a heavy down payment."

The lenders may ask for 30% down or more. That would provide enough collateral cushion that the bank could get all or most of its money back in a foreclosure.

Strategic defaulters might also be charged higher interest rates, even above the levels other borrowers with similar credit scores would receive.

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Chaim Gleitmann | Xena Vallone Realty | 941 312 1214
1050 LONGBOAT CLUB RD, Longboat Key, FL
Vacation on Longboat Key year round or seasonally for $3500 monthly in this highly desirable location behind the gates of the Longboat Key Club. You
Furnished 2BR/2BA Condo

$1,550/month
Bedrooms 2
Bathrooms 2 full, 0 partial
Sq Footage 1,409
Parking 1 dedicated
Pet Policy No pets
Deposit $1,550


see additional photos below
RENTAL FEATURES

- Air conditioning - Central heat - Walk-in closet
- Tile floor - Living room - Dining room
- Breakfast nook - Dishwasher - Refrigerator
- Stove/Oven - Microwave - Laundry area - inside
- Balcony, Deck, or Patio - Yard - Swimming pool
- Jacuzzi/Whirlpool - Sauna - Cable-ready

COMMUNITY FEATURES

- Covered parking - Guest parking - Clubhouse
- Storage space(s) - Fitness center - Swimming pool(s)
- Sauna/Spa - Tennis court(s) - Golf course
- Gated property - Secured entry - Elevator

 


LEASE TERMS

Management requires a $200 check for move-in & move-out period (not for deposit) in addition to application fee.
ADDITIONAL PHOTOS


Tennis Court

Great Room

Dinning Room

Master Bedroom

Bedroom 2

Exterior
Contact info:

Chaim Gleitmann
Xena Vallone Realty
3039242
941 312 1214

powered by postlets Equal Opportunity Housing

ORLANDO, Fla. – May 24, 2010 – Sales of existing homes in Florida rose 27 percent in April, which means that sales activity has increased in the year-to-year comparison for 20 months, according to the latest housing data released by Florida Realtors®. Another positive sign: Last month's statewide existing-home median price of $140,100 was 1 percent higher than the statewide median price in April 2009.

Existing home sales rose 27 percent last month with a total of 16,781 homes sold statewide compared to 13,244 homes sold in April 2009, according to Florida Realtors. Statewide existing home sales last month increased nearly 3 percent over statewide sales activity in March. Meanwhile, April's statewide existing-home median price was 2.3 percent higher than March's statewide existing-home median price of $137,000. It marks the second month in a row that the statewide existing-home median price has increased over the previous month's median.

"Buyers responding to the federal homebuyer tax credit before it expired helped to boost home sales across Florida," said 2010 Florida Realtors President Wendell Davis, a broker with Watson Realty Corp. in Jacksonville. "And buying conditions remain favorable, with a variety of housing options available in local markets at attractive and affordable prices. Plus, current mortgage interest rates are at historically low levels, which gives buyers more 'bang' for their buck."

Florida Realtors also reported a 55 percent increase in statewide sales of existing condos in April compared to the previous year's sales figure; statewide existing condo sales last month rose 2 percent over the total units sold in March. Though April's statewide existing-condo median price of $103,600 was down 3 percent compared to the year-ago figure, it was 6.9 percent higher than March's statewide existing-condo median price.

 

Seventeen of Florida's metropolitan statistical areas (MSAs) reported increased existing home sales in April while all but one MSA had higher condo sales. A majority of the state's MSAs have reported increased sales for 22 consecutive months.

Florida's median sales price for existing homes last month was $140,100; a year ago, it was $138,100 for a 1 percent gain. The median is the midpoint; half the homes sold for more, half for less.

Thenational median sales price for existing single-family homes in March 2010 was $170,700, up 0.6 percent from a year earlier, according to the National Association of Realtors® (NAR). In California, the statewide median resales price was $301,790in March; in Massachusetts, it was $280,000; in Maryland, it was $235,785; and in New York, it was $209,900.

According to NAR's latest outlook, two trends are influencing a broader stabilization of home prices in housing markets across the nation: months of increased sales activity and lower levels of inventory. "Foreclosures have been feeding into the inventory pipeline at a fairly steady pace and are being absorbed manageably," said NAR Chief Economist Lawrence Yun. "With home values stabilizing, a revival in homebuying confidence will likely help the housing market get back on its feet even as the tax credit impact disappears."

In Florida's year-to-year comparison for condos, 7,291 units sold statewide last month compared to 4,703 units in April 2009 for an increase of 55 percent. The statewide existing condo median sales price last month was $103,600; in April 2009 it was $107,200 for a 3 percent decrease. The national median existing condo price was $170,600 in March, according to NAR.

Interest rates for a 30-year fixed-rate mortgage averaged 5.10 percent in April, up from the average rate of 4.81 percent during the same month a year earlier, according to Freddie Mac. Florida Realtors' sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state's smaller markets, the Panama City MSA reported a total of 128 homes sold in April compared to 108 homes a year earlier for a 19 percent increase. The market's existing home median sales price last month was $160,000; a year earlier it was $156,800 for an increase of 2 percent. A total of 65 condos sold in the MSA in April compared to 53 units sold the same month a year earlier for an increase of 23 percent. The existing condo median price last month was $187,100; a year earlier, it was $172,900 for an 8 percent gain.

© 2010 Florida Realtors®

 Property sales in April in the Sarasota market hit the highest total in almost five years, while pending sales were the highest in four years, likely fueled by the expiration of the homebuyer tax credit on April 30. Median sale prices continued the steady pace reflected in recent months.

The 757 sales exceeded the March 2010 total of 753. It was the highest total since December 2005 and 50 percent higher than April 2009.

Pending sales were once again strong, hitting 1,160 – better than March 2010’s total of 1,060. It was the highest total in the past four years.

“There was clearly a sense of urgency in April, reflected in higher closed sales as well as contracts written, as buyers attempted to purchase properties before the expiration of the homebuyer tax credits,” said 2010 SAR President Erick Shumway. “There is a lot of enthusiasm and optimism among local real estate agents that the trend will sustain in the months to come.”

Members of the Sarasota Association of Realtors® sold 529 single family homes and 228 condos in April 2010, a huge jump over April 2009, which saw only 367 single family homes and 138 condos sold. Pending sales, at 1,160, were about 18 percent higher than last April, when only 981 were reported. This statistic is a strong indicator for the next two or three months of sales, as pending sales reflect current buyer activity.

The median sale price for a single family home was steady at $165,000, up from last April’s figure of $160,000. For condos, the median price was $193,975, higher than last April’s figure of $182,750. Both figures were slightly lower than March 2010. For the last 12 months combined, the median sale price for single family homes was $163,800, while the median sale price for condos was $192,000.

The level of distressed property sales (foreclosures and short sales) dropped again in April 2010 to 38 percent of the overall market, from 41 percent in March 2010. The downward trend is a sign that the market is returning to health after topping 48 percent in late 2009. The downward trend in the percentage of short sales and bank-owned foreclosure sales in the Sarasota market, if it continues, would be a harbinger of a market in full recovery, and should bring greater appreciation for the overall median sale prices.

The property inventory level remained steady in April 2010 at 6,160, the lowest level since late summer of 2005.

The months of inventory for single family homes in April 2010 was 7.3 months, the number of months it would take to sell all available homes at the current pace. This was a huge drop from April 2009 – 15.2 months – and very near equilibrium. For condos, the figure was 9.9 months, much lower than last April’s figure of 19.1 months. Once the market reaches the 6 month level it is considered to be in equilibrium between a buyers and sellers market.

For information about the Sarasota Real Estate Market, visit PremiumPropertiesSarasota

You want to buy a foreclosure? Remember, there are both great opportunities and great pressures and pitfalls in this market.

First, you have to decide at what stage of foreclosure you want to buy. There are three options: 1. pre-foreclosure; 2. sheriff's auction; 3. repossession, called REO (for real estate owned by the bank).

The safest and best way to buy is when it's a bank-owned property," said Rick Sharga, a spokesman for RealtyTrac, the online marketer of foreclosure properties.

Pre-foreclosure: These homes are in the foreclosure process, but they have yet to be sent to auction. Owners are typically trying to unload them because they are "underwater," owing more on the homes than they are worth.

As a result, potential buyers must negotiate a deal with the lender as well as the owner. That makes buying at this stage of foreclosure complicated and slow. But, you have the advantage of being able to inspect the home before purchase -- which isn't the case in other types of foreclosure sales. Sharga warned, however, that prices are usually higher than at other stages of foreclosure.

Sheriff's auction: These sales yield the lowest prices, but they are fraught with difficulties. Often the house is unavailable for inspection, leaving buyers with a long list of expensive repairs -- and much larger bill than they intended. This stage is usually best left to the professionals, the contractors and investors who regularly bid on these places and know what they're doing.

Repossession: This occurs after the home has gone through a sheriff's auction but does not sell and the bank gains possession of the property. Homebuyers may not get the best bargains during this stage, but they can nearly always perform a thorough inspection before closing, minimizing costly surprises. Plus, the property comes with a clear title.

In addition, the banks selling these places may extend preferential financing terms to the buyers and may have made some repairs before putting the property on the market.

Even in this safer stage, though, homes are still usually sold in "as is" condition. "That means the bank won't pay for cosmetic issues," said Adam Wiener, a spokesman for the Redfin, the online real estate marketer. "Although, they will often pay for some or all of repairs that are health and safety issues. That makes the home inspection even more critical."

He also pointed out that, since you're buying from a corporation, not an individual, the buying process can be faster, so be prepared to move quickly. Many times a listing goes on sale on a Friday and is sold over the weekend.

"The buyers and their agents need to be on top of everything from the inspection to the financing," said Wiener. "Some banks will even charge a per diem fee for late closings."

Once you've decided which type of home to buy, there are several common mistakes foreclosure buyers should take care to avoid. These include:

Getting caught up in a bidding frenzy: The banks often under-price repossessions, hoping to generate excitement, attract multiple bids and sell them quickly. The problem is, as in any auction-type sale, bidders get excited and pay too much.

"Remember," said Sharga, "there are 800,000 REOs in the banks' inventories. There'll be another home to bid on tomorrow."

Underestimating repair costs: Take full advantage of the home inspection and don't delude yourself about much the repairs will cost.

"Take along someone who can give you a good estimate of how much repair costs will come to," said Sharga.

Redfin coaches its agents to warn buyers to factor in a cushion of 10% to 20% of the purchase price to pay for unexpected repairs. "If you end up not using it, go on vacation after 6 months," Wiener said.

Not knowing what comparable properties cost: This is important in any market but especially in this endeavor. In high foreclosure areas, prices can be eroding very quickly. You want to have the latest homes sale prices on repossessed properties and try to keep your bid comparable or lower.

Buying in a neighborhood flooded with foreclosures: This is most important for people buying for the short-term. Any neighborhood saturated with REOs and foreclosures may be headed for further price falls. If you're planning to relocate within a few years or buying a bigger house, that could mean selling at a loss. A better bet, if you can find it, is to buy the only foreclosed home in an otherwise stable community. That's more likely to hold its value.

Not having financing in place: If you don't have a pre-approved mortgage, you're really not in the market. "You have to be able to move quickly," Sharga said.

Banks don't want to dilly-dally on sales; they're losing money every day that homes sit on the market. That means they'll often jump on the highest bid with the best financing already in place.

Having a loan beforehand carries another advantage: It tells you how much credit you have available. You won't spend time shopping for homes that are too expensive.

Remember that pre-approved financing is different from pre-qualified financing; it means the loan is ready to go. Pre-qualified is more like an opinion of a loan officer and there's still work to be done before final approval.

For information about the Sarasota Real Estate Market, visit PremiumPropertiesSarasota

Once you fall behind your mortgage payments, you would be confronted with certain repercussions. For one, you might be on the verge of losing your home. Other home owners in a difficult position like you are in dire need of rescue on what to do to save their home or at least be free from debt. Your option then is to sell your home. But with the pre-condition of financial hardship, your choices are narrowed down between two - foreclosure or short sales.
Either option would do your credit standing some harm. On the other hand, these two processes have distinct attributes per se. Before you can enter either transaction with your lender, it is best to know the real current status of your mortgage. Consult your broker so as you can immediately advance to steps regarding your home. Meanwhile, below are some of the differences between foreclosure and short sale. Carefully take into account their respective details so that you can better understand which one you can opt to go for.
Foreclosure is commonly dubbed as the worst option a home owner is left with in case the lender wants to take the house. The expenses and stress involved in this process can be very detrimental. For one, the lender can request for a court-assisted judgment against you for the arrearages you were not able to pay. You might also be asked to pay for the costs accumulated by the lender when the foreclosure action was pursued. Ultimately, your credit rating will be tarnished for a long time. It would be very hard to recover.
Apparently, the disadvantages a foreclosure can bring you are almost endless. That is why a lot of home owners try to rescue their homes and crediting status by presenting their lenders with a proposal for entering short sales. The crucial part though is convincing your lender to consent such sale. Remember that this sales endeavor would require your lender to accept remuneration way less than what you owed. Thus, you must have proficient negotiating skills to make your lender agree.
While there might not be deliberate credit advantage by going through short sales, there are other forms of benefits you can have. There are very rare cases wherein lenders do not deliver promptly or at all the negative details to the credit reporting bureaus. Some fortunate delinquent borrowers have only seen their scores decrease by only 100 points. Also according to Fannie Mae guidelines, home owners who went through this option were allowed to purchase another home with relatively decent rates within two years. Those who went through foreclosure would have to wait five to seven years before they would be presented with reasonable mortgage rates and useful financing.
Although your credit report would reflect the process as a pre-foreclosure process with an attempt to redeem your property, a deficiency judgment would also appear in your credit record given particular circumstances. For one, this process entails your responsibility to compensate for the discrepancy from the sale, which most lenders require by the way. If you cannot pay the outstanding balance within the time frame your lender set, negative data would put in your record.
With the conditions existing in both options, neither seem to better than the other. In order for you to be saved in going through such set ups, prioritize organizing your finances. Keep track of your payments to protect your credit score and property ownership.

For information about the Sarasota Real Estate Market, visit PremiumPropertiesSarasota


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A productive cash flow turns the wheels of the condo market - whether you are a buyer or a seller. Most buyers need backing (financing) and sellers need sales. In order to get the best deal, buyers and sellers need to understand the process. Both parties must know how to avoid the pitfalls.

5 Tips for Buyers

1. Financing Comes First

Financing issues are responsible for wrecking many deals. Figure out which form of works best for you. Remember that pre-approval is the preferred way to go into a deal.

2. Fannie and Freddie May Not Be Friendly

Fannie Mae and Freddie Mac, government-controlled mortgage companies, have their place. As of March 2009, however, they tightened their restrictions on mortgages for condos (new or newly constructed). At present, they will only consider mortgages if 70% of the units have sold or are under contract.

3. Know Your Association

As people face financial challenges, many are falling behind on association dues. This delinquency forces condo associations to pass on the debt to other condo owners. Fannie Mae won't purchase mortgages for condos if 15% or more are over 30 days late with payments.

4. Look for the FHA Seal of Approval

A building with the FHA seal of approval can mean a much lower down payment for many buyers. A down payment can be as low as 3.5% of the purchase price of the condo. The mortgage process also moves much faster for condos with FHA approval.

5. Prepare Your Down Payment

Private lenders can require a substantial down payment from condo buyers. Consider your budget and research your options. Seek out condo experts who can find the best deal for you.


5 Tips for Sellers

1. Compare Prices

You may be the seller but you still have to compare prices - the sale prices of your competition! To get the most money, you want to set your price at the top rate acceptable to a buyer. You don't, however, want to turn buyers away with unreasonable prices.

2. Go with the Experts

Find a condo expert! They have a history with the condo buyer. They can use that expertise to effectively market and build interest in your condo.

3. Create a Counter Offer

Sellers must remember that they can create counter offers. If you like a price but don't favor some of the terms, consider a counter offer. Get the best deal for you!

4. Be Willing To Negotiate

The best offer comes about when both parties feel they have won points. A seller needs to bargain from a strong position. Try not to be so difficult, however, that you turn away every potential buyer.

5. Consider the Cost of Closing

Sellers of condos also have closing costs. These charges can add up so you must factor them into your plan. These costs can include real estate broker fees, processing fees, and transfer taxes.

Low interest rates, affordable prices, and government programs are fueling the current condo market. The time is perfect for either buying or selling a condo. Whether you are looking for a home or planning to sell and move on, you can still get the most from today's condo market.

For information about the Sarasota Real Estate Market, visit PremiumPropertiesSarasota

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