January 10, 2012 / Avondale, Featured Properties, Murray Hill, Ortega, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
Prediction- prices of existing homes in Metro Orlando would fall 19 percent during 2011 – the biggest drop in the country. Prediction-the median home price would be $110,500 by the end of 2011. Good news, Orlando never saw these predictions come true. In reaction to these dire predictions, lenders gradually released distressed properties onto the market , and Floridains released an unusually small inventory of homes listed for sale. One of the worst predictions of 2011 was the fear of the “shadow inventory” of foreclosed properties. This blow is being softened by the low inventory of traditional listings currently on the market. The improvment of the overall health of the market in 2012 is that banks have become better at processing short sales, which is the predominant way of selling a homes that is “underwater” or, worth less than their outstanding mortgages. In the beginning, only about 9 percent of pending short sales closed during a month’s time, but that has increased to approximately 10.5 percent.
The public becoming more aware of “the short sale process” coupled with the banks ability to close more quickly has led to a more possitive short sale experience for owner and buyer alike. If you are considering cashing in on the great prices and low interest rates, buying a short sale may be the way to go. Traditions Realty has certified short sale specialist on staff to answer your questions and walk you through the process. Call today for short sale listings in your area. Read more below.
Fewer listings may soften blow of new REOs
NEW YORK – Jan. 9, 2012 – Forecasting the real estate market can be a perilous task.
Case in point: In May, financial services provider Fiserv Inc. projected that prices of existing homes in Metro Orlando would fall 19 percent during 2011 – the biggest drop in the country. Analysts predicted the median home price would be $110,500 by the end of the year.
But as of November, the median was virtually unchanged from a year earlier at $130,000, according to Florida Realtors.
Two factors have mitigated the earlier projections of continued price declines in residential real estate: the gradual release of distressed properties onto the market by banks, and an unusually small inventory of homes listed for sale.
If those factors continue through 2012, they could further soften the potential effect on the market of the region’s “shadow inventory” of foreclosed and repossessed houses.
“The banks really have a lot to do with where the year ends up,” said Re/Max broker David Welch. “Looking back over the last few months, they haven’t been flooding us with REOs (“real estate owned,” or repossessed, properties). It’s more of a garden hose than a wave. … We still have a lot more to go through before we are done with the foreclosure situation in Orlando, but most of them are getting absorbed.”
Buffering the effect of those foreclosed properties as they hit the market is the manageable supply of houses listed for sale. The Orlando Regional Realtor Association started 2011 with about 15,000 listings in its core market – mainly Orange and Seminole counties – but ended November with about 10,000.
Orlando’s modern-day version of a traditional neighborhood, Baldwin Park, is a good example of this shrinking inventory: As of late December, it had 28 homes listed for sale, when a community of its size would ordinarily be expected to have about 200, Welch said.
Another factor that could continue improving the overall health of the market into the coming year is that banks have become more adept at processing short sales, which have become the predominant way of selling homes that are “underwater” – that is, worth less than their outstanding loans. In the recent past, only about 9 percent of pending short sales would close during a given month, but that has now edged up to 10.5 percent, Welch said.
Banks are also now more motivated to get through the short-sale process, Welch added: One bank recently mentioned in a short-sale approval letter that it would increase the real estate commission if a particular sale closed within 30 days.
Such mitigating factors could help stabilize prices this year, though they are not likely to boost them much in areas where more than half of all mortgaged homes are underwater, according to the real estate research firm Corelogic.
John Tuccillo, chief economist for Florida Realtors, expects a gradual increase in existing-home prices for Orlando and the rest of the state through 2012.
“For the state of Florida, I think you’ll see prices begin to move upward, but not by very much,” he said recently.
The large amount of distressed housing has established a price base that, so far, has remained stable; as a result, prices will increase only marginally. In the next year, Tuccillo’s trade group plans to release a new price index for existing homes that would cover all properties within the state, and the association hopes to track same-property sales, both residential and commercial, over a 17-year period.
In the new-home market, the next year is expected to see a continuation of the gradual increases in housing starts that the metro area recorded in 2011. Prime locations, those considered A- or B-level sites, have been holding their prices and even raising them slightly, said Anthony Crocco, director of the research firm Metrostudy Inc.’s North and Central Florida divisions.
“I don’t foresee a very strong growth forecast,” said Crocco, who doesn’t expect the number of starts this year to increase more than 10 percent. “I see it being a stable year from the standpoint of it being an election year.”
While town homes and condominiums have had it the worst of all residential sectors, multifamily products make sense right now in the more urban parts of Orange and Seminole counties, rather than in some of the suburban locations where they were built in the past.
The active-adult market has been doing well and should continue to do so well into the year, Crocco said. He cited The Villages, which straddles parts of Lake, Sumter and Marion counties, and has been adding 200 new homes a month. Other locales where home construction will likely do well this year include the Lake Nona area in southeast Orlando, downtown Orlando, and areas near the University of Central Florida in east Orange County.
“Because of what’s happening with the resale market, the more we look at it you can see that there’s not going to be a slowdown in ‘12 and maybe ‘13 in the REO process, and that’s going to continue to drag the market down,” Crocco said. “But it’s a necessary step for recovery.”
One trend emerging in the region – the development and redevelopment of apartment complexes – is likely to lead in the coming year to an oversupply, Crocco said.
“There probably will be some overbuilding because that’s the only thing that’s been able to get financed, and the occupancy numbers look good,” he said. “The market needs to be aware of the amount of multifamily coming in.”
Copyright © 2012 The Orlando Sentinel (Orlando, Fla.), Mary Shanklin, The Orlando Sentinel, Fla. Distributed by MCT Information Services.
January 10, 2012 / Avondale, Featured Properties, Murray Hill, Open Houses, Ortega, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
Most don’t realize there was a surprise upside to real estate investment in 2011. Mutual funds which buy and sell shares of real estate investment trusts (REITs), out preformed the average stock mutual fund with a gain of an average 7.6 percent, vs. a 2.9 percent loss for the mutual fund. These funds don’t invest in the physical property. Instead they invest in malls, apartments, office buildings and hotels through investment trust that buy and sell shares. With low mortgage rates and all time low purchase prices, investing in apartment buildings may be the way to go for those wanting something more tangible. The rental market is up,up, up. Predictions are for a rise in rental rates for 2012 based on demand.
Call Traditions Realty for professional advise on all your investment needs. With tenant placement and a property management division, we offer you as much or as little control as is comfortable. All landlords know-a good tenant makes all the difference in the “bottom line” for your investment. Call us today to purchase or manage your investment. Traditions Realty can help take the fear out of being a landlord. Read more below.
Real estate investing lands gains
NEW YORK – Jan. 5, 2012 – Real estate had an excellent year last year. Assuming, of course, your mutual fund owned it.
In an otherwise awful year, real estate funds gained an average 7.6 percent, vs. a 2.9 percent loss for the average stock mutual fund, according to Lipper.
This may seem puzzling to homeowners: The Federal Reserve estimates that homeowners have watched $7 trillion evaporate since the housing bubble burst in 2006.
Real estate funds invest in commercial real estate and generally don’t invest in physical property. They buy and sell shares of real estate investment trusts (REITs), which invest in malls, apartments, office buildings and hotels.
By law, a REIT has to pass virtually all its earnings to shareholders in the form of dividends, one reason REITs did all right last year: The average REIT had a dividend yield of 4.83 percent in December, says the National Association of Real Estate Investment Trusts.
“Dividend yields had a big appeal in a low interest-rate environment, with 10-year Treasury yields at less than 2 percent,” says Jeffrey Kolitch, portfolio manager of Baron Real Estate fund.
Real estate aficionados like to say real estate has to go up because they’re not making any more. In today’s environment for commercial real estate, that’s fairly true. Since there’s so much supply, and lenders aren’t in a lending mood, relatively few new buildings are going up. That’s good for investors, Kolitch says, particularly those who invest in apartment buildings.
Even though house prices have fallen dramatically from their 2006 highs, and mortgage rates are low, many people are still renting – so much so that apartment owners have been able to raise rents. “People are concerned about their jobs, and don’t feel confident buying a new home,” says Steve Brown, senior portfolio manager at American Century.
Another type of REIT that’s benefiting from hard times: storage units. “REIT storage companies are benefiting as activity has picked up from foreclosures,” Baron’s Kolitch says. The storage-unit industry is changing, Kolitch says. Big companies such as Public Storage are edging out smaller mom-and-pop storage companies.
Office space REITs are still somewhat problematic, given the current high unemployment rate. Still, some REITs in areas where it’s tough to put up new buildings (New York, Boston) could fare well this year, Kolitch says. In the middle of the country (Cleveland, Chicago) job creation is modest, and there’s not much office space demand, Brown says. Nevertheless, given low interest rates and an improving economy, real estate funds may continue to give concrete returns.
© Copyright 2012 USA TODAY, a division of Gannett Co. Inc., John Waggoner.
January 10, 2012 / Featured Properties, Ortega, Press Releases, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
With property values as low as they are, many prospective Jacksonville real estate buyers are seeking investment properties to lease for profit. But leasing a home can be an overwhelming process for property owners. Experts warn that owners should be extremely selective in placing tenants in their properties, emphasizing the need for thorough background checks and careful consideration of each candidate. It is a large commitment of time and hard work to properly list and fill homes for rent in Jacksonville, but failing to do so could land you with deadbeat tenants and costly eviction procedures.
Listing and filling Jacksonville homes for rent can be a much more pleasant experience with help from Traditions Realty. Traditions offers a full range of services for property owners, including tenant placement, property management, property value determination, and availability to show properties 7 days a week. Traditions can also assist you in purchasing investment properties. We have expertise in all areas of Jacksonville real estate, whether you are looking to buy, sell, or rent.
Thinking about becoming a landlord? You should know this
JUPITER, Fla. – Dec. 6, 2011 – With real estate prices low, many people are considering buying an investment property and becoming a landlord.
It might sound simple, but real estate pros warn that there’s a lot to know. The landlord who doesn’t follow such basic guidelines as conducting a thorough background check can get stuck with a nightmare tenant. It takes both business sense and common sense.
“Most of my tenants, 98 percent, are terrific,” said Jupiter real estate broker and investor Carl Presto, who owns 60 properties. “The problem is that 2 percent.”
The down economy that has resulted in real estate bargains also means it’s more difficult to find a tenant who can afford to pay first and last month’s rent and a security deposit upfront. Landlords report they have to go through 30 to 40 applicants before finding a qualified tenant.
Landlords also find they are competing with foreclosed houses, which some people rent below market, forcing rents lower.
Although picking up a cheap condominium unit might be tempting, David Dweck, founder and president of the Boca Real Estate Investment Club and a real estate broker and investor, advises avoiding them. Instead, buy a duplex, triplex, small apartment building or single-family home where you won’t be subject to a condominium board, he suggested.
Special assessments levied by condo associations can run into thousands of dollars.
Presto agrees: “Pay cash and buy a duplex. Offset your rent. Rent one side, and live in the other.”
Financing is also difficult. Douglas Rill, a West Palm Beach real estate broker who has been a landlord for 38 years, said about 70 percent of investment properties are cash deals.
Whatever the property, Dweck, Presto, Rill and other experts say finding a decent tenant starts with the screening process.
Credit checks and criminal background checks are a must. Small-scale landlords can find help at websites such as www.mysmartmove.com. Operated by Trans-Union, a major credit bureau, SmartMove gives independent rental owners access to the same tenant screening used by large property management groups. It also gives renters data privacy because they provide their identifying information directly to TransUnion in a secure, online setting.
For $25 the landlord receives a credit-based leasing recommendation, national criminal report including 50 state sex-offender and terrorist searches, renter fraud warnings and automated renter identity verification.
For an additional $5, the landlord also can get access to a credit report, a credit score and a detailed rental address history.
The $30 is well spent compared with the basic eviction filing fee, which is $185 in Palm Beach County.
A West Palm Beach landlord contacted recently did not conduct a background check. Now he has a tenant whose true identity is a mystery.
“My experience with landlording has not been positive,” the man said. “I am in the middle of an eviction and the person will not say who he really is.”
Dweck collects a nonrefundable application fee paid in cash before showing a property to a prospective tenant.
An application should be filled out in full as part of that process. The one Dweck developed covers such details as whether the applicant owns a vacuum cleaner, works on cars, owns a boat or personal watercraft, works at home and why he or she is moving.
‘Never be desperate’ for a tenant
Just because you’re offering a place you own for rent doesn’t mean you have to rent to the first person who comes along.
A rental applicant can be denied for such reasons as poor credit, poor personal references, poor job reference, lack of job stability, insufficient funds to move in, criminal background and too many occupants for the size of the dwelling, Dweck said.
“Never be a desperate landlord or landlady,” Dweck advises.
If the prospective tenants have been through a foreclosure or short sale, that doesn’t rule them out if their credit is otherwise OK, Dweck said.
“At the end of the day you have to make a good business decision. Do not let them tug on your heartstrings,” Dweck said.
Rill agrees that background and credit checks have to be conducted. At the same time, don’t expect a perfect credit report. It’s not uncommon to find people with credit scores below 600, Rill said.
“Most people going into a rental are not going to have an 800 credit score. There is a reason why they are renting. Some have low scores because they just lost their house,” Rill said.
Rill said he never checks with the applicant’s most recent landlord.
“If they had a problem, the previous landlord would say anything to get rid of them. I will go to the previous, previous landlord,” Rill said.
Rill advises thoroughly reading the Florida Landlord Tenant Law, Florida Statutes Chapter 83 and giving a copy to the tenant. It states what the landlord’s responsibilities are, such as complying with health and housing codes, and the tenant’s, which include keeping the dwelling clean and sanitary.
Understanding the law can help avoid disputes. For example, the law states that if a deposit is nonrefundable, that should be noted in the rental agreement. The statute also states that the landlord has the right to enter the property at any time in case of an emergency and under other circumstances, such as for repairs, with 12 hours’ notice.
Lawyer review of lease form advised
A written lease is essential. Standard leases are available for free at sites such as www.mrlandlord.com or can be purchased at office supply stores. Rill recommends having an attorney review the lease form you select and modify it specifically for your property.
Of course, leases cover such basics as the term of the lease, when the rent is due and how much the rent is. But they also should include sections on policies about late rent, security deposits and how many people are allowed to live on the premises and that the premises are for residential purposes only.
The lease needs to state what might seem obvious. Many landlords err by not spelling out everything. If you don’t allow pets, don’t just say, “No pets.” State that no pets of any kind are allowed, including visiting pets. Or one day you will knock on your tenant’s door to find her holding a ferret, as one West Palm Beach landlady did.
Don’t just state that parking is provided. Be specific. For example, the lease Dweck created states that the tenant must park in his or her assigned space.
Don’t simply state that the premises must be left clean and undamaged in order for the tenant to receive his damage deposit back after he moves out. Dweck’s lease requires tenants to comply with a number of conditions, such as having the carpet professionally cleaned and cleaning the entire home, including the range, oven, refrigerator, bathrooms, closets, cabinets, windows, carpet and balcony, etc.
‘Professional tenants’
No matter how ironclad the lease is, what some experts call “professional tenants” do exist. These are people who move in and never pay rent. They know that it often takes awhile for an eviction to be carried out.
“Anything is only as good as the tenant’s word. They can still walk out on you,” said a West Palm Beach landlord. “I went to court on an eviction. The guy said, ‘Yes, I owe the money.’ The judge said I did not properly file the three-day notice. The name and address were supposed to be on the bottom right-hand side. It was at the top on my letterhead. It cost me a couple thousand and the guy owed me four grand. I never got paid.”
Landlording is a business, and experts say it’s not for the softhearted.
When rent is past due, Florida law requires landlords to give tenants three days’ notice that they must pay the rent or move. If the rent is not paid after three days, excluding weekends and legal holidays, then the landlord can begin legal action to evict the tenant.
“You have to be on top of it. The stories can get ridiculous. I keep a three-day notice act in my car. I have had people tell me they will not pay the rent because they are buying Christmas presents,” Rill said.
Despite the challenges, people like Alberto Rabadan, a Jupiter real estate broker who owns a 14-unit apartment building in Miami, say they want to expand their investment holdings.
Rabadan was among 20 or so people who attended a real estate investment course that Dweck recently conducted.
“The property values have gotten to a point where it is feasible to be a landlord. I am looking for a bread-and-butter property. Everybody needs a place to live. I want to provide affordable, clean housing,” Rabadan said.
© 2011 The Palm Beach Post (West Palm Beach, Fla.), Susan Salisbury. Distributed by MCT Information Services
December 01, 2011 / Avondale, Featured Properties, Murray Hill, Ortega, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
Today’s shaky real estate market begs the question, “Should I rent a property or is now the time to buy?” The answer varies for the circumstance. If you are transferring to a new city for work or personal reasons, renting may be the answer. Make sure the new job is going to stick or the new town is what you were expecting. Buying and re-selling in this economy will cost. On the other hand, if you are making a change within the same city, now is the time to buy.
Traditions Realty is a full service agency offering sales and rentals. We will be happy to assist you with whatever is best for you, buying or renting. Let our experienced staff help guide you to your new home. Read more below.
Today’s market once-in-lifetime opportunity
WASHINGTON – Nov. 30, 2011 – The monthly cost of owning a home is more affordable now than in the past 15 years, and is less expensive than renting in numerous cities, according to The Wall Street Journal’s third-quarter survey.
Low home prices mixed with low mortgage rates – hovering at 4 percent or lower – create an appealing buyer’s market, analysts say. For example, buyers today have a 77 percent increase in their borrowing power compared to 1991, according to Dan Green, a loan officer with Waterstone Mortgage in Cincinnati. He says that in 1991 a $1,700 mortgage payment allowed a borrower to take out a $200,000 mortgage; today, at current interest rates, the homebuyer can get a $350,000 loan for that same monthly mortgage payment.
In 12 our of 28 cities tracked by The Wall Street Journal, monthly mortgage payments on a median-priced home – including taxes and insurance – were lower than the average rent levels.
In Atlanta, owning was the most favorable compared to renting. The monthly rent on a median-priced home there was $539 during the third quarter (with a 20 percent downpayment) compared to the average asking rent, which averaged $840, according to data provided by Marcus & Millichap.
Nationwide, apartment rents are expected to rise by about 4 percent this year, which may make the owning vs. renting picture tilt even higher, according to some analysts.
Despite the appealing housing picture for homebuyers, some continue to stay on the sidelines, unable to sell their current home, qualify for a mortgage due to the tighter credit requirements or keep a steady job, housing experts say.
Source: “Stronger Lure for Prospective Home Buyers,” The Wall Street Journal (Nov. 26, 2011)
November 28, 2011 / Avondale, Featured Properties, Murray Hill, Ortega, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
Life doesn’t stop because the economy is in the dumps. Your life changes with job promotions, job re-locations, death, divorce, and family growth. What can you do when that new job lands you in another state far from home or when the house you bought for the two of you needs to include the two new members of the family? For many homeowners, selling is not an option at this time. Declines in market value could mean that the good deal you got on a property in 2006 can not be sold for the mortgage value. Short sales are not an option for everyone.
Many homeowners have become reluctant landlords. Renting the property they left behind to cover the mortgage and expenses. The problem lies in filling the vacancy and maintaining the home from miles away.
Could we help you? TraditionsRealty is a full service agency offering tenant placement and property management services. Many of our customers are located throughout the country and throughout the world. We offer on line property management support to view your invoices and payments in your time zone. Our professional staff works with you to chose the best tenant and maintain the property in your absence. Give us a call today to discuss the services we offer. Read more below.
More homeowners try ‘reluctant landlord’ role
WASHINGTON – Nov. 23, 2011 – More sellers who are tired of their home lingering on the market – or who don’t want to take a loss on their home sale – opt to become landlords instead.
For example, one couple told NPR that they owned a two-bedroom bungalow in Oakland, Calif. They purchased it for $500,000, but it was recently appraised at $260,000. When a job relocation sent them across the country, they decided to rent instead of sell.
But becoming a landlord isn’t an easy role to step into, as some “accidental landlords” describe difficult tenants and constant problems or maintenance issues that require fixing.
The number of unintentional landlords is growing. About 2.3 million single-family homes became rentals during 2005 to 2009 – a significant increase compared to about 700,000 single-family homes that became rentals during 2001 to 2005, according to Eric Balky with Harvard’s Center for Housing Studies.
“The good news for the owners or the reluctant landlords has been that the rental market has been so good, they’ve been able to cover pretty much all their expenses and just been able to basically go on with their lives,” Ron Abrams with the Chicago Association of Realtors® says.
Source: “Would-be Sellers Become Reluctant Landlords,” NPR (Nov. 13, 2011)
November 01, 2011 / Avondale, Featured Properties, Murray Hill, Ortega, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
With the price of real estate falling 31% and interest rates at 4% or better, waiting to buy real estate is a “no brainer”. Although prices may fall still, it is predicted to be a insignificant drop and may be off set by a rise in interest rates. So, why are buyers waiting?
If you are interested in investing in Jacksonville real estate, Traiditons Realty can help. We have quailified sales people with real world knowledge of Jacksonville’s neighborhoods. If you are looking to gain more profit through investing in real estate or ready to buy your own happy home, we offer valuable experience to help in the quickly changing markets of today’s economy. Read more below.
Bargains abound: What are buyers waiting for?
NEW YORK – Oct. 28, 2011 – With low home prices and ultra-low interest rates, the housing market now offers “perhaps the best deals of a generation,” notes a recent article by Bloomberg Businessweek.
Since the housing boom of 2006, home prices have fallen about 31 percent. Also, mortgage rates have been hovering at record lows for the past few weeks – in the 4 percent range or even lower on 30-year fixed-rate mortgages, according to Freddie Mac’s mortgage market survey.
“It’s hard to see the possibility of losing on a home purchase right now, with these mortgage rates,” says economist Dean Baker. “Prices may go lower, but not by much.”
The article notes the following scenario: Buying a $300,000 home with a 4 percent mortgage rate and a 20 percent down payment would mean a $1,145 monthly payment. The Mortgage Bankers Association recently predicted that home prices may fall another 3.5 percent by mid-2012, but mortgage rates will increase by a half-point. Under that same loan scenario, a home would sell for $289,000 while the monthly mortgage bill would be $1,171 – only a $26 difference.
For those who can qualify for a mortgage, “playing the waiting game” won’t result in much gain, Nariman Behravesh, chief economist at IHS in Englewood, Colo., told Bloomberg Businessweek.
Source: “Crazy Home Deals Await the Creditworthy,” Bloomberg Businessweek (Oct. 24, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
November 01, 2011 / Avondale, Featured Properties, Murray Hill, Ortega, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
The high rate of homes going into foreclosure has been in the news for years, but now mortgage lenders are taking action. They are making short sales of homes easier to complete, because short sales may be more financially advantageous than foreclosures for all involved . Homeowners looking to sell and those in the market for Jacksonville real estate should be aware of the implications of this development. Short sales in Jacksonville are now easier to come by and can benefit buyers and sellers. A short sale happens when a lender allows a homeowner to sell a house for less than what the homeowner still owes on it. A seller who opts for a short sale over foreclosure may have to wait less time before buying another house and may avoid legal consequences or complications as well as further credit damage arising from foreclosure. For buyers, a short sale means a better chance of buying a desired house that may not have been an option otherwise. It also may mean buying the house at below market value.
If you are looking to buy or sell Jacksonville real estate, Traditions Realty has the capabilities and knowledge to manage all of your needs. We have realtors that are certified short sales specialists and can help you to avoid foreclosure. Traditions also handles all aspects of homes for rent in Jacksonville. If your involvement as a buyer or seller in a short sale leaves you scrambling for a temporary home or tenant, our agents are here to help. Read more below.
CHICAGO – Oct. 21, 2011 – Are short sales getting easier? Some homeowners are reporting that banks are now not only more willing to consider a short sale, but are even offering incentives to complete a short sale. For example, a homeowner in Chicago says his lender approved his short sale and then gave him a $20,000 check after the deal was finalized for selling the home as a short sale instead of letting it sink into foreclosure.
Lenders accepting a lower mortgage payoff from an underwater seller traditionally isn’t thought of an easy transaction to complete. Lenders weren’t so willing a few years ago. But as the number of Americans underwater on their mortgages grow, more lenders are reconsidering as they try to avoid the extra costs incurred to their bottom-lines that a foreclosure can cause.
For 2011, short sales accounted for about 8 percent of total home sales, and rose 7 percent over 2010 totals, according to CoreLogic data. Short sales are up by 59 percent year-over-year in Illinois, 32 percent in Michigan, and 19 percent in Arizona alone, according to CoreLogic.
“We’re starting to see that servicers and lenders are viewing short sales as a better alternative than they had in the past,” says Daren Blomquist, spokesman for RealtyTrac. “Some of that relates to the fact that it’s getting harder to foreclose. There are additional requirements in terms of paperwork and requirements that states and judges are imposing.”
Short sales can still be complex and lengthy – they can take up to nine months to close and even after that, there’s no guarantee it’ll end successfully. “In general, it is a totally different type of transaction,” says Mike Cuevas, a real estate professional at Exit Realty in Chicago. “You’re not only selling a house, you’re negotiating debt.”
Source: “Why it can Pay to try a Short Sale; Lenders may be Viewing Short Sales as a Better Alternative,” MarketWatch (Oct. 20, 2011)
- Show quoted text -
October 07, 2011 / Avondale, Featured Properties, Ortega, Riverside, San Marco / Author: beth / Comments: (0)
Buyers seeking luxury homes and higher-end Jacksonville real estate will soon have a distinct advantage in the market. On October 1st, mortgage loan sizes are set to be cut. Fannie Mae and Freddie Mac will lower limits on mortgage loans they will buy from lenders. Some buyers who may have qualified for mortgage loans would now be forced into jumbo loans, which would be more difficult for them to get. Thus, many buyers will be forced out of the market. Buyers who remain in the market for high-end Jacksonville real estate will have less competition and be able to make the most of their purchases.
While it will be a great time to buy luxury real estate in Jacksonville, home owners may want to hold off on selling homes – especially more expensive ones. Whether you are looking to buy Jacksonville real estate or to rent out your old home, let Traditions Realty handle all your needs. Traditions is experienced and knowledgeable about Jacksonville homes for rent. We understand that luxury home owners require a highly selective tenant-screening and placement process, and we can handle all aspects of property management. Let us help you navigate the current market and make the most of Jacksonville real estate. Read more below.
Mortgage loan limits decline Oct. 1
NAR Call for Action
FHA plans to lower maximum loan limits on Oct. 1, but lawmakers could still change that. NAR’s Call for Action asks all Realtors to write to their personal representatives to explain what this change would mean in their housing market. For more information, visit NAR’s Call for Action website.
WASHINGTON – Sept. 14, 2011 – Fannie Mae, Freddie Mac and Federal Housing Administration (FHA) loan limits shrink a bit starting on Oct. 1, though the Florida impact will be felt mainly in high-cost home areas.
The National Association of Realtors® has protested the increase, saying it will further limit the ability of Americans to purchase a home.
has a searchable database for loan limits, both FHA and Fannie Mae/Freddie Mac, on its website. To see statewide numbers, select only “Florida” and “county” for a search. Change the dates under “Limit Year” to see either the current rates or the rates effective after Oct. 1.
Fannie Mae and Freddie Mac
The two government-sponsored enterprises run by the federal government drop the maximum home mortgage they’re willing to purchase – to $417,000 – effective Oct. 1.
However, the current higher rates never applied nationwide and only worked in select higher-home-price areas. According to HUD’s website, Florida currently has six city areas with a maximum loan limit higher than $417,000 for a one-family home: Fort Lauderdale-Pompano Beach-Deerfield Beach (current maximum loan is $423,750), Naples-Marco Island ($531,250), Bradenton-Sarasota-Venice ($442,500), Miami-Miami Beach ($423,750), Key West ($729,750) and West Palm Beach-Boca Raton-Boynton Beach ($423,750).
Of the six, four will drop to the new maximum of $417,000; however, two will not. Effective Oct. 1, the Fannie Mae and Freddie Mac loan maximum for Naples-Marco Island will be $448,500, while Key West-Marathon will be $529,000.
Loan maximums are higher for two-, three- and four-family homes.
Since Fannie and Freddie do not buy loans until the sale has closed, many lenders have already started enforcing the new limits.
FHA
FHA limits vary by city in Florida. In no area does it go lower than $271,050, however, which is 65 percent of the Fannie Mae/Freddie Mac loan limit. Since many areas already have a $271,050 FHA loan limit – mainly smaller urban areas – a lot of buyers won’t notice a difference.
The FHA national loan limit “ceiling” is 150 percent of the national conforming loan limit. In higher-cost areas, the FHA loan limit lowers after Oct. 1, though not necessarily to the floor amount. In Jacksonville, for example, the current FHA maximum one-family loan limit of $387,500 drops to $304,750; in Miami-Miami Beach-Kendall it drops from the current $423,750 to $345,000; in Key West it goes from today’s $729,750 to $529,000.
For information on other FHA loan limits, check .
September 21, 2011 / Avondale, Featured Properties, Murray Hill, Ortega, Real Estate News, Riverside, San Marco, Uncategorized / Author: beth / Comments: (0)
VA loans, always a god deal for veterans, got another boost due to the Restoring GI Bill Fairness Act of 2011 with the lowering of funding fees. Although Reservist/National guard members are not receiving as much of a decease, they will seeing a downward change in the fees for their VA loans also. With NAS Jax, Mayport, Kingsbay and all the other military facilities around town, Jacksonville houses a large number of VA qualified home buyers. Traditions Realty LLC can help military personnel find the home of their dreams. Let us help you find a home with a good location and all the amenities you desire. With a VA loan and a buyer’s market, you may find affording the home of your dreams is not as difficult as you think. Read more below.
The Department of Veterans Affairs has announced lower VA loan funding fees for active duty, Guard and Reserve veterans effective October 1, 2011.
According to a VA circular posted at VA.gov, “For loans closed on or after October 1, 2011, the fee for subsequent use loans with less than 5 percent downpayment and subsequent use regular refinance loans will be 2.8 percent for both active duty Servicemembers, Veterans, and persons qualifying based solely on service in the Reserves or National Guard.”
The changes in the VA loan funding fee are prompted by legislation. According to the VA, “This change is due to passage of Public Law 112-26, Restoring GI Bill Fairness Act of 2011.” Additionally, “Funding fees for loans other than subsequent use will also change for loans closed on or after October 1, 2011. These fee changes were already set to change based on previous legislation.”
Here is a list of the changes to the VA loan funding fees. In some cases the active duty, Guard and Reserve fees are the same, and in other cases active duty members pay a lower VA loan funding fee than their Guard/Reserve counterparts. Some changes go into effect on October 1, 2011 and are not scheduled (at the time of this writing) to change again, while others will be lowered even more in coming years as described here.
VA Loan Funding Fees:
Down payment less than 5 percent:
October 1, 2004 until October 1, 2011
Active Duty – 2.15%
Guard/Reserve – 2.40%
On or after October 1, 2011 changed to:
Active Duty – 1.40%
Guard/Reserve – 1.65%
At least 5 percent but less than 10 percent down payment:
- Before October 1, 2011
Active Duty – 1.50%
Guard/Reserve – 1.75%
On or after October 1, 2011 changed to:
Active Duty – 0.75%
Guard/Reserve – 1.00%
10 percent or more down payment:
Before October 1, 2011
Active Duty – 1.25%
Guard/Reserve 1.50%
On or after October 1, 2011 changed to:
Active Duty – .50%
Guard.Reserve .75%
Second or subsequent use VA loan funding fees are the same for both active, Guard and Reserve as follows:
Less than 5 percent down payment:
- October 1, 2007 until October 1, 2011
3.30%
- October 1, 2011 until October 1, 2012
2.80%
- October 1, 2012 until October 1, 2013
2.15%
- On or after October 1, 2013 changed to:
1.25%
At least 5 percent but less than 10 percent down payment
- Before October 1, 2011
Active Duty – 1.50%
Guard/Reserve – 1.75%
On or after October 1, 2011 changed to:
Active Duty – 0.75%
Guard/Reserve – 1.00%
10 percent or more down payment
- Before October 1, 2011
Active Duty – 1.25%
Guard/Reserve – 1.50%
– On or after October 1, 2011 changed to:
Active Duty – 0.50%
Guard/Reserve – 0.75%
September 15,2011 Joe Wallace
September 01, 2011 / Avondale, Featured Properties, Murray Hill, Open Houses, Ortega, Press Releases, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
Despite signs of a national economy that is not quite in the clear, Jacksonville’s rental housing market is going strong. Nationally, the rental vacancy rate has declined in the second half of this year. A lack of confidence in the housing market is causing those looking for homes to consider rental housing instead of buying homes. Whether you are currently a Jacksonville real estate owner or are looking to buy real estate in Jacksonville, Traditions Realty can help you to take advantage of this situation.
Traditions is your source for both homes for sale and homes for rent in Jacksonville. Interest rates are currently low, and it is a great time to buy a home.
If you are in the market, we will work with you to find your dream home. We can also help list your home for rent or find the rental housing property that is just right for you. Read more below.
Fannie: Dark clouds loom but no recession
WASHINGTON – Aug. 23, 2011 – The economy was hit by a barrage of disappointing news during the last month, which led to a downgrade in the overall macro economic forecast released today by Fannie Mae’s Economics & Mortgage Market Analysis Group.
While the August 2011 Economic Outlook does not forecast a double dip recession, it finds that the chance of a double-dip recession is roughly equivalent to a coin toss. For all of 2011, economic growth is expected to downshift to 1.4 percent from 3.1 percent in 2010. Growth is expected to pick up in 2012, but only to about 2.0 percent, compared to the 3.1 percent projected in the July forecast.
“Key factors … have revealed that we have a bigger hole to dig out of, which explains the consumer angst over the lack of employment growth,” says Fannie Mae Chief Economist Doug Duncan. “Moreover, European financial market and fiscal policy turmoil, coupled with the U.S. debt ceiling debate, have hit on consumer confidence, which is at recessionary levels.”
Duncan says Americans are clearly worried about global, big-picture concerns.
“Housing has moved into second position behind general economic concerns among consumers, which is demonstrated in our National Housing Survey results,” Duncan says. “Our July data shows that 70 percent of Americans think the economy is on the wrong track, up from 60 percent a year ago. In turn, despite historically low interest rates, consumers are still saying they don’t see this as a good time to go out and borrow money to buy a house.”
Housing activity is expected to weaken along with the overall economy due to a renewed decline in business and consumer confidence, and a weaker jobs forecast.
One exception is the rental housing market. The rental vacancy rate (the share of rental housing that is vacant and for rent) plunged from 9.7 percent to 9.2 percent in the second quarter of 2011, and is now at its lowest rate in nine years. A lower rate of homeownership suggests that a rising share of households have gone from owning to renting.
© 2011 Florida Realtors®