NorthFloridaHomeSearch.com Blog

GRAND RAVINE

2010-04-17T00:22:00.001-04:00

Grand Ravine Townhome Style Condominiums. A Luxury Condomimium Community in St Augustine.

Nestled on 34 acres, surrounded by a conservation preserve, this
community is located just minutes away from restaurants, Anastasia
Island, shopping and of course the historic St. Augustine district.
Stroll along the brick paver ...sidewalks; enjoy a quick dip in the
intimate pool or the privacy of your screened covered lanai. This
community boasts exquisite interior finishes, exceptional quality
construction, energy efficient features all at unbeatable prices!!
Poured Concrete Construction, barrel tile roof system,
paver driveways, patios and walkways. Granite countertops, 42"
cabinets, crown molding, tray ceilings with energy efficient features
like natural gas, tankless water heaters, high impact glass and so much
more!!

They offer three bedroom, two and three bath condominiums with one and two
car attached garages with 1300 to 2000 square feet of living space all
at pricing starting @ $169,900!!

Contact Me At 904-687-0542 to set up a community tour. I will provide all of my Buyers a $500 VISA GiftCard At Closing!

St Augustine Real Estate Monthly Radio Interview with Sharon Stevens of NorthFloridaHomeSearch.com

2010-04-16T15:44:00.002-04:00

St Augustine Real Estate Monthly Radio Interview

My April podcast interview is done!

Lend me your ear............

St Augustine Real Estate Monthly Radio Interview

This month's edition covers St. Augustine real estate market activity and with this being the last month for the $8,000 tax credit extension, we'll discuss how buyers and sellers are taking advantage of this opportunity!

Features special guest Terri Murphy of US Learning and Sharon Stevens of NorthFloridaHomeSearch.com.

FHA Guidelines Change This Week!

2010-03-29T22:22:00.001-04:00

Looking to FHA for your next mortgage? Get a move on! Although you have until Friday, April 2, 2010 to get your application in, Friday is Good Friday and most banks will be closed.

Your true FHA deadline is Thursday, April 1.

Guidelines Change In 3 Days

To shore up its balance sheet and dwindling capital reserves, the Federal Housing Authority is rolling out sweeping financial changes. Starting next week, FHA borrowers must to look better on paper and to be better credit risks.

Mortgage insurance premiums are rising, too.

In its official announcement, the FHA said its trying to better position itself to "manage its risk while continuing to support the nation’s housing market".

The changes start with case numbers assigned on or after Monday, April 5, 2010.

Reviewing The FHA Mortgage Changes

One widely speculated change wasn't made -- the increase of the FHA minimum down payment. Homebuyers in North Florida and elsewhere can still buy with just 3.5 percent down. However, the group did roll out a number of other changes, including:

* An increase in Upfront MIP from 1.75 percent to 2.25 percent

* A plan to reduce maximum seller contributions from 6 to 3 percent by summer

* A Congressional request to increase monthly mortgage insurance premiums

To keep informed on up to the minute mortgage information subscribe to Matt Daly's blog.

Take a look at:

http://dalymortgageadvisor.thewrittenblog.com/

Florida existing home, condo sales rise in January 2010

2010-02-27T21:53:00.000-05:00

Florida’s existing home sales rose in January, marking 17 months that sales activity has increased in the year-to-year comparison, according to the latest housing data released by Florida Realtors®.

Existing home sales increased 24 percent last month with a total of 10,465 homes sold statewide compared to 8,444 homes sold in January 2009, according to Florida Realtors. January’s statewide sales of existing condos rose 81 percent compared to the previous year’s sales figure.

Sixteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing home sales in January; all MSAs had higher condo sales. A majority of the state’s MSAs have reported increased sales for 19 consecutive months.

“Now is the time for anyone thinking of buying a home in Florida to make that decision,” said 2010 Florida Realtors President Wendell Davis, a broker and regional vice president with Watson Realty Corp. in Jacksonville. “Markets across the state are seeing increased sales, yet conditions remain very favorable with still-low mortgage rates, a range of housing inventory and attractive prices. As an added incentive, buyers need to accelerate their plans because a purchase contract must be in place by the end of April to take advantage of the extended and expanded federal tax credit. To find out more, consult a Realtor about options, qualification criteria and opportunities in your local housing market.”

Florida’s median sales price for existing homes last month was $130,900; a year ago, it was $139,400 for a 6 percent decrease. Analysts with the National Association of Realtors (NAR) note that 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 the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in December 2009 was $177,500, up 1.4 percent from a year earlier, according to NAR. In California, the statewide median resales price was $306,820 in December; in Massachusetts, it was $305,000; in Maryland, it was $244,820; and in New York, it was $222,000.

According to NAR’s latest outlook, homebuyers are taking advantage of the federal tax credit. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices,” said NAR Chief Economist Lawrence Yun.

In Florida’s year-to-year comparison for condos, 4,631 units sold statewide last month compared to 2,554 units in January 2009 for an increase of 81 percent. The statewide existing condo median sales price last month was $97,300; in January 2009 it was $113,300 for a 14 percent decrease. The national median existing condo price was $183,700 in December 2009, according to NAR.

Interest rates for a 30-year fixed-rate mortgage averaged 5.03 percent last month, slightly lower than the average rate of 5.05 percent in January 2009, 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 Fort Walton Beach MSA reported a total of 143 homes sold in January compared to 118 homes a year earlier for a 21 percent increase. The market’s existing home median sales price last month was $201,400; a year ago it was $188,300 for an increase of 7 percent. A total of 70 condos sold in the MSA in January compared to 25 units sold the same month a year earlier for an increase of 180 percent. The existing condo median price last month was $270,800; a year earlier, it was $268,800 for a gain of 1 percent.

2010-02-23T22:45:00.002-05:00


Lennar Model Home	Angela Olmous Interview

St Augustine Gets High Ratings In Health!

2010-02-22T21:25:00.002-05:00

By JONATHAN MATTISE

St. Johns County has the state's top rated school system, and now it can claim it is one of the two healthiest counties in the state.
"These health rankings are a result of ongoing community efforts," said Dr. Dawn Allicock, St. Johns County Health Department director/health officer. "It is important to know that the measures compiled in this report are impacted by all sectors here in St. Johns County."
She listed politicians, health providers, Flagler Hospital, the Council on Aging, local fire-rescue units, the school system and law enforcement as all coming together to help the county score at the top of this national survey.
"The saying 'It takes a village' is nowhere more true than in the health of a community," she said.
The national study of every county in America measured two things: the overall health of each county's residents and the factors that influence their health, such as lifestyles choices. The Robert Wood Johnson Foundation and the University of Wisconsin Population Health Institute did the study. The results were released Wednesday.
For St. Johns County, the news was great. In overall health, St. Johns finished second in the state, behind only Collier County on the southwest coast. In factors that influence good health, St. Johns was tops in the state.
In the first category -- overall health -- residents relatively long life spans and self-reported health measures propelled the county to second in the state.
In the second category -- factors that influence health -- St. Johns did well because of social factors, such as high educational levels, strong families, low crime rate, high income and relatively low unemployment rates. This category alone accounted for 40 percent of the county's score.
Allicock said social factors help determine our future health -- things that make people sick or die too early -- are measured in health studies such as this one.
"While wealthier communities have certain advantages over less wealthy communities, income alone does not ensure good health," she said.
Flagler Hospital Chief Executive Officer Joe Gordy was not surprised at St. Johns strong showing.
"Looking at St. Johns County, it's not hard to imagine," he said. "We have one of the most educated populations in the state, mostly because we have some of the best school systems."
In other factors that influence health, St. Johns ranked eighth in health behaviors, including tobacco use, exercise, dieting, alcohol use and risky sex behavior.
In access to quality health care, St. Johns ranked seventh in the state.
Clay, Flagler do well
Of the county's neighbors, Clay and Flagler counties weren't far behind. Clay was seventh in overall health and 13th in factors that influence health.
Flagler ranked 13th in overall health and 15th in the lifestyles and community category.
Duval and Putnam lagged well behind, however.
Duval had the 44th best overall health and 34th best lifestyle and community contributions, and Putnam registered at 66th and 61st, respectively. Duval's highest rating was in access to quality care, where it ranked sixth in the state and first in Northeast Florida. Putnam lagged in most categories, with its highest rating being 35 in physical environment. Putnam scored next to last in two categories, long life spans and overall health.
Good health in St. Johns doesn't apply just to the wealthy and educated, said Jerry Cameron, assistant county administrator for community services.
"The real secret to our success is a sort of total integration of county resources, and that doesn't just mean county agencies, either," Cameron said.
As an example, he pointed out that Flagler Hospital has joined in partnership with St. Johns County to provide urgent care for the medically indigent.
The Wildflower Clinic in St. Augustine, another service for the poor, includes volunteer medical personnel from throughout the area, he added.
Even catching a free ride to a doctor's appointment on a Council on Aging shuttle adds to the opportunities to receive proper health care.
"All of us work closely together," Gordy said. "We're not out there competing against each other."
Smoking, obesity are targets
The praise for the county's health also brings up a few areas of potential improvement.
The lifestyle choices shown in the study are causes for concern, and should be addressed with additional educational efforts, Gordy said.
Particularly, confronting child obesity and the early onset of diabetes, smoking and drinking present an immediate need, Gordy said.
"As a community, we'd like to work a little harder at smoking cessations and some of those types of things," Gordy said.
Allicock agreed.
"We will refocus our anti-tobacco program to align with (county and city) anti-tobacco efforts utilizing broad-based coalitions .. to address tobacco use prevention," she said.
She also said the county Health Department will be working on anti-obesity initiatives.
Allicock said one area the county has improved in dramatically in recent years is infant mortality, which she said has experienced several spikes over the past 10 years.
"In 2008/2009, St. Johns County had the best maternal and infant health indicators for our region, 4.5 per 1,000 live births compared to 8.8 per 1,000 lives births for the Northeast Florida region and 7.2 per 1,000 lives births in the state," she said.

Vilano Town Center Is Back!

2010-02-19T09:31:00.000-05:00

By JENNIFER EDWARDS

The proposal for a town center in Vilano Beach is back, a couple of years after a bigger plan died, the victim of the sour economy.
The new plan calls for a grocery store and two small buildings for retail space. The town center will be south of the east end of the Usina Bridge, the same location of the original proposal.
"For our community it's the right time because the streetscape -- water, sewer, drainage, all the infrastructure -- was finished in October 2008," said Vivian Browning, chair of the Vilano Beach Main Street group and the long-time leader of revitalizing Vilano Beach. The streetscape was a $12 million project funded by St. Johns County.
The developer of the project, Vilano Beach Town Center Partners LLC, said through a spokesman that the new plan calls for a 29,160-square-foot grocery store and about 14,000 square feet of retail space in two buildings.
"There's a definite need for this small commercial development," said company spokesman Bob Bentz. "And we have tremendous support from the community. We think it will be a successful retail center."
Bentz said funding, which killed the earlier proposal, is no longer an issue.
"Funding isn't the problem, it's getting the tenants," he said. "Funding is tied to the tenants. As long as we have the tenants," the project will be funded, he said.
Bentz didn't foresee any problems filling the spaces, though.
"We've had a number of phone calls and a lot of interest," he said.
The developer is in talks with a grocery store chain, but won't say which one, Bentz said.
"We hope to know in the next six weeks whether the grocery store is going to come in or not, or who it will be," he said.
It's hard to say whether Publix, Winn Dixie or Food Lion are interested in a store smaller than most of what they have now.
Publix regional spokesman Dwaine Stevens said the chain was interested in the Vilano Beach site a couple of years ago, before the real estate bust sunk financing for the project.
"When the developer's financing doesn't go through, the deal doesn't go through," he said.
He declined to comment on whether the chain is revisiting plans to locate a Publix in Vilano Beach.
Christy Phillips-Brown, Food Lion external communications director, also said she couldn't comment on possible future locations. A spokesman for Winn Dixie could not be reached for comment.
As the developers negotiate to get a grocery chain contract, changes nearby are improving the look of the neighborhood. On Thursday, construction crews demolished a mobile home park, long an eyesore on the streetscape. Browning said that change, along with the new streetscape and the pavilion, is an indicator of more improvements to come.

How it will look
Architecture in Vilano Beach differs from downtown St. Augustine because the community sprang up centuries later. Buildings on this peninsula, bordered by water to the east, south and west and Ponte Vedra Beach to the north, do not generally reflect the Mediterranean Revival or Spanish Colonial styles.
Instead, they are a variegated collection of Art Deco, mid-century modern and Florida vernacular styles.
The retail center would reflect those influences, said Bob Bentz, a spokesman for Vilano Beach Town Center Partners, LLC, the developer of the proposed town center.
"The community indicated they'd like to see a blending of the art deco style as well as the Florida vernacular," Bentz said.
To that end, the grocery store would have an art deco look, and the smaller buildings housing six to nine more tenants would be fashioned after the Florida vernacular style.
The smallest tenant space would span 1,000 square feet, and there would likely be a 3,000- to 5,000-square-foot space to accommodate a restaurant.
"There will also be outdoor patio and dining," Bentz said.
The abandoned buildings on the property would be demolished, he said, as would the current buildings now housing a surf store and a dry cleaner.
The majority, though, is just vacant land.
"Vilano Beach is a very unique location," Bentz said. "We're very excited about the project."
BREAKS The way it was
The Vilano Beach area, a peninsula surrounded on three sides by water and bordered to the north by Ponte Vedra Beach, doesn't look the way it did 10 or 15 years ago.
Then, a wooden bridge funneled traffic over from the mainland and there wasn't a unified feeling. Since then, the streetscape has been revitalized and accented with recycled glass for a more "art deco" feel.
The bridge where seagulls used to roost is now a pier jutting out over the water and features modern accents.
Want more info?
Visit www.vilanobeachfl.com.

Polar Bear Plunge At Nocatee!

2010-02-17T08:49:00.001-05:00

Article By JIMMEL WALSH
More than 500 people bundled up in jackets Saturday morning to ward off the brisk weather watched families and friends strip down to their bathing suits and jump into the Lagoon Pool at Splash Water Park in Nocatee.
"Before you ask, it was cold," said Kevin Wilson, purchasing manager of David Weekley Homes, a home building company with a site in Nocatee.
The temperature in the pool was the same as the air temperature -- 59 degrees.
Wilson didn't play in the water as others did. He was in and out. Wilson and his co-workers joined the Nocatee Polar Plunge to promote team building and camaraderie.
After swimmers received the signal at 9 a.m. to jump in, 50 people, some dropping their towels just as they went in, were in the pool, as their friends watched and laughed.
The event was a sneak peek of the new water park, which includes the Riptide Slide, a 53-foot tower with two water slides, a pool, Splash Cove for children and the Lazy Tides River.
The park is scheduled to open officially March 27.
The new recreation facilities also will have a 5,000-square-foot fitness center, concession building, and a clubhouse that will house special events.
Vance LeClair, resident of Riverwood, one of Nocatee's communities, has driven several times passed the park in anticipation. On Saturday, he went down the water slide twice.
"I love it! It's great." LeClair said.
Joyce Seymour, 61, also a resident of Riverwood, is originally from Michigan and is used to the cold climate. She laughed and called herself "nuts" for wanting to jump into the pool.
"I'm trying to keep young," Seymour said.
*
About Nocatee
Nocatee is a new town located in Ponte Vedra on the borders of St Johns and Duval Counties. The town consists of 450 families that occupy five communities: Tidewater, Willowcove, Austin Park, Riverwood and Coastal Oaks. The town is expanding with new communities, Kelly Pointe and White Hall. The community will also have a Town Center with a Publix Supermarket, which is scheduled to open Saturday. When Nocatee is completed, it will have more than 15,000 homes.

Statewide Open House April 10-11

2010-02-17T08:48:00.002-05:00

ORLANDO, Fla. – Feb. 9, 2010 – Meet the neighbors and find your Florida dream home at the same time by taking part in Florida Open House Weekend, set for April 10-11, 2010. Realtors will host open houses on behalf of home sellers in neighborhoods and communities across the Sunshine State, giving buyers a rare opportunity to visit many homes for sale in just one weekend. This first-ever statewide open house weekend is sponsored by the 115,000-member Florida Realtors®.
“It’s a home shopper’s dream,” says 2010 Florida Realtors President Wendell Davis, a broker and regional vice president with Watson Realty Corp. in Jacksonville. “For the serious buyer, the opportunity to tour dozens of homes in one weekend is a real time saver. Others who didn’t think they could afford a home may be drawn into the market by affordable prices and low interest rates. It’s a win-win!”
The Florida Open House Weekend takes place just ahead of the deadline for the federal homebuyer tax credit. Homes need to be under contract by April 30, 2010, and the purchase closed by June 30, 2010, to take advantage of up to $8,000 in the tax credit for eligible first-time buyers and up to $6,500 for eligible repeat buyers.
“This event offers people a convenient way to see as many homes as they wish in one weekend and gives Realtors a chance to be part of this massive effort to match buyers to their dream homes,” Davis says.
He adds that the Florida Open House Weekend will be a fun way to capture buyers’ attention and help them learn more about what is available in the local housing market. Blue balloons featuring the Realtor “R” logo in white – 50,000 of them – will be on display simultaneously at open houses from the Panhandle to Key West as part of the Florida Open House Weekend.
As the date for the Florida Open House draws closer, consumers can get the latest information about the event at Florida Realtors’ website: http://www.floridarealtors.org/AboutFar/OpenHouse/index.cfm
Florida Realtors®, formerly known as the Florida Association of Realtors®, serves as the voice for real estate in Florida. It provides programs, services, continuing education, research and legislative representation to its 115,000 members in 67 boards/associations. Florida Realtors® Media Center website is available at http://media.floridarealtors.org.

Overview of Florida Real Estate Market in 2009

2010-02-17T08:47:00.001-05:00

Florida’s existing home sales rose in December, marking 16 months that sales activity has increased in the year-to-year comparison, according to the latest housing data released by Florida Realtors®.

Existing home sales rose 33 percent last month with a total of 14,630 homes sold statewide compared to 11,013 homes sold in December 2008, according to Florida Realtors. Statewide existing home sales last month increased 4.3 percent over statewide sales activity in November.

Florida Realtors also reported a 91 percent increase in statewide sales of existing condos in December compared to the previous year’s sales figure; statewide existing condo sales last month rose 22 percent over the total units sold in November.

Seventeen of Florida’s metropolitan statistical areas (MSAs) reported increased existing home sales and higher condo sales in December. A majority of the state’s MSAs have reported increased sales for 18 consecutive months.

Florida’s median sales price for existing homes last month was $140,400; a year ago, it was $155,300 for a 10 percent decrease. Housing industry analysts with the National Association of Realtors® (NAR) note that 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 the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in November 2009 was $171,900, down 4.4 percent from a year earlier, according to NAR. In California, the statewide median resales price was $304,520 in November; in Massachusetts, it was $285,000; in Maryland, it was $245,569; and in New York, it was $210,000.

According to NAR’s latest outlook, home sales are seeing a boost from the federal homebuyer tax credit. “There are many more potential buyers who can enter the market in the months ahead,” said NAR Chief Economist Lawrence Yun. “Activity should ramp up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. In all, 4.4 million households are expected to claim the tax credit before it expires, and balance should be restored to the housing sector with inventories continuing to decline.”

In Florida’s year-to-year comparison for condos, 5,968 units sold statewide last month compared to 3,132 units in December 2008 for an increase of 91 percent. The statewide existing condo median sales price last month was $107,000; in December 2008 it was $130,300 for an 18 percent decrease. The national median existing condo price was $178,000 in November 2009, according to NAR.

Interest rates for a 30-year fixed-rate mortgage averaged 4.93 percent last month, significantly lower than the average rate of 5.29 percent in December 2008, 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 larger markets, the West Palm Beach-Boca Raton MSA reported a total of 849 homes sold in December compared to 638 homes a year earlier for a 33 percent increase. The market’s existing home median sales price last month was $247,900; a year ago it was $246,000 for an increase of 1 percent. A total of 763 condos sold in the MSA in December, up 45 percent over the 527 units sold in December 2008. The existing condo median price last month was $111,400; a year earlier, it was $112,900 for a decrease of 1 percent.

Read This Before Closing Your Credit Card

2010-02-17T08:45:00.000-05:00

If your favorite restaurant dismissed its longtime chef, hired surly waiters and raised its prices, you would probably stop eating there. That’s the beauty of the free-market system: Dissatisfied customers can vote with their feet.

But many consumers who have been treated badly by their credit card companies feel they don’t have that option. That’s because closing a credit card account, while emotionally satisfying, could hurt your credit score. That, in turn, could raise the cost of getting a mortgage, car loan or even a new credit card.

In the past, the most effective way around this problem was to pay off the balance and stop using the card. As long as the account remained open, your credit score would remain unscathed. But increasingly, that strategy carries a cost.

In response to credit card reforms that take effect Feb. 22, credit card companies are looking for new ways to raise revenue. Some are adding annual fees. Others have started charging inactivity fees if customers fail to use their card during a specified period. It sounds like a scene from a Mafia movie: Pay the fee or your credit score gets whacked.

But the impact of closing an account varies, depending on your credit profile, says John Ulzheimer, president of consumer education for Credit.com. Some consumers can close an account without hurting their credit score at all, he says. Others could see their scores decline by a few points, but not enough to make a difference.

Here are some things to consider before you tell your credit card issuer to take a hike:

• Your total available credit. Closing a credit card account could hurt your score because of what’s known as the credit utilization ratio. This ratio is based on the amount of debt you have outstanding as a percentage of your available credit. Closing a credit card account reduces your available credit, leading to a higher utilization rate.

Opening accounts to increase available credit is a bad idea, says Craig Watts, spokesman for Fair Isaac, which developed the widely used FICO score: “Any time you open a new account, your credit score is likely to drop a few points, because statistically, you’re riskier.” However, if you already have several credit cards with large credit lines and pay off your balances every month, closing one account may not affect your score, Ulzheimer says.

To determine how closing a card will affect your utilization ratio, get out a calculator and copies of all your credit card statements. Add up how much available credit you have and how much you’re using. Then subtract the available credit from the account you’d like to close. Ideally, you should have a credit utilization rate of 30 percent or lower.

• Your credit score. Consumers with excellent credit scores can afford to lose a few points, Ulzheimer says. FICO scores range from 300 to 850. If your score is 825, closing an account probably won’t affect your ability to get a loan. You can purchase your FICO scores from www.myfico.com.

The credit bureaus also sell scores, although they often bundle them with credit-monitoring services, so make sure you understand what you’re buying. Credit Karma (creditkarma.com), Credit.com and Quizzle (quizzle.com) provide free credit profiles. These sites don’t provide a FICO score, but they provide an idea of where you stand.

• Your borrowing plans. If you have a score in the mid-700s or higher, and you’re not planning to apply for a loan any time soon, “You should feel free to close accounts, open accounts, as you see fit,” Watts says. But suppose you’re thinking of refinancing your mortgage within the next few months or plan to buy a new car. The wisest course of action is to avoid closing any credit card accounts until you’ve been approved for your loan, Watts says.

In the wake of the credit crisis, lenders are paying more attention to credit scores than ever. Ideally, you want a score in the high 700s, or even low 800s, to get the best deals, he says. Many consumers fear that closing a credit card account will hurt their credit history, which accounts for 15 percent of the FICO score. But when you close an account, it doesn’t disappear from your credit record. The credit bureaus will keep a record of your history with that account for about a decade after it’s closed.

“Then it will stop affecting your score, but who is thinking 10 years ahead?” Watts says. “That’s a moot issue.”

© Copyright 2010 USA TODAY, a division of Gannett Co. Inc., Sandra Block.

Weekly Mortgage Review by Matt Daly of Dolphin Mortgage

2010-02-17T08:43:00.002-05:00

The Markets. Rates continued to be stable in the past week. Freddie Mac announced that for the week ending February 4, 30-year fixed rates averaged 5.01%, up from 4.98% the week before. The average for 15-year fixed rose slightly to 4.40%. Adjustables were mixed with the average for one-year adjustables falling to 4.22% and five-year adjustables rising slightly to 4.27%. A year ago 30-year fixed rates were at 5.25%. “Rates remained relatively stable for a second week amid news of a strengthening housing market," said Frank Nothaft, Freddie Mac vice president and chief economist. “Residential fixed investment rose for two consecutive quarters over the last half of 2009 following a steady quarterly decline since the beginning of 2006. Pending existing home sales rebounded by 1 percent in December from a record drop in November that was due in part to the original expiration of the homebuyer tax credit, according to the National Association of Realtors. Even more encouraging news came from the Federal Reserve’s Senior Loan Officer Opinion Survey, which reported that banks have generally stopped tightening standards on most types of loans in the fourth quarter of 2009, with commercial real estate as the exception.” Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Current Indices For Adjustable Rate Mortgages
Updated February 5, 2010

	Daily Value	Monthly Value
	February 4	January
6-month Treasury Security	0.16%	0.15%
1-year Treasury Security	0.32%	0.35%
3-year Treasury Security	1.34%	1.49%
5-year Treasury Security	2.29%	2.48%
10-year Treasury Security	3.62%	3.73%
12-month LIBOR		0.906% (Jan)
12-month MTA		0.463% (Jan)
11th District Cost of Funds		1.828% (Dec)
Prime Rate		3.25% (12/08)

The FHA-backed 203(k) rehab loan is an increasingly popular option in today’s market because so many available properties, especially foreclosures, are in need of repair. A streamlined 203(k) provides money to pay for improvements such as a new roof, appliances, furnace, energy-efficient windows, and cosmetic improvements like carpet, paint, and remodeled kitchens and baths. The maximum loan available is $35,000. The buyer must put down 3.5 percent of the acquisition. At closing, the seller is paid and the remaining money goes into an escrow account to pay for repairs. A licensed contractor must complete the work within six months. Some lenders allow the borrower to do minor cosmetic work like painting themselves. Source: Minneapolis-St. Paul Star-Tribune
Green market research firm SBI Energy forecasts that in the next five years, the market for energy-efficient home renovation products will grow 15 percent, 50 percent faster than the renovations market as a whole. According to the report, the energy-efficient market will reach $35 billion and claim 15 percent of all home renovation dollars spent. "The growth will come as a result of the tax credits, new incentives, and the reality that more agencies and utilities are promoting the fact that adding improved energy efficiency is the most cost-effective way to decrease home utility bills," says Norman Deschamps, author and SBI Energy analyst. Source: SBI Reports
Falling prices for real estate and the declining value of the dollar are luring investors from all over the world to purchase properties for as little as half what they might have paid four years ago. "This could be a once-in-a-generation opportunity for real estate investment," says Arthur Wong, whose Calgary, Alberta-based U.S. Real Estate Fund has invested $5 million in properties in the U.S. Southwest and plans to buy millions more. Buyers from countries like Brazil, Canada, France, and the Netherlands, whose currencies are particularly strong against the dollar, are spending millions on luxury condos in New York City, Las Vegas, and Miami. Foreign buyers also find the warm climates of California, Texas, and Arizona attractive. Peter Zalewski, a principal with Miami-based Condo Vultures, says he has sold foreign condo buyers seven bulk deals in downtown Miami alone, with investors coming from Argentina, Canada, Colombia, Italy, Norway, and Venezuela. Source: MSNB

This Week In Review was brought to you by:

Matthew J Daly, CRMS CMPS
Dolphin Home Mortgage, Inc
2308 Sawgrass Village Drive
Ponte Vedra Beach, Fl 32082
matt@dolphin-mortgage.com
(904) 280 - 9600
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$8,000 Tax Credit Can Be Frustrating!

2009-10-13T15:48:00.000-04:00

MAITLAND, Fla. – Oct. 13, 2009 – This summer, Brian Smith decided he should buy a house.

The 35-year-old was in the break room at his Maitland office talking to a friend about the idea, and the timing seemed perfect.

Prices were at record lows; “for sale” signs were common, and, most importantly, he could get a tax credit of as much as $8,000 for first-time buyers if he bought before December. But four months later, after looking at more than 40 houses and condominiums, Smith quit his search in frustration.

“Honestly, my heart was so broken,” said Smith, an associate at a financial-investment company. “I hate it I am going to miss the tax credit. But it’s better to wait and get the place you need and want than to get a place and not be happy with it.”

As the Nov. 30 deadline nears for the first-time-buyer tax credit, no hard numbers suggest how many buyers are in Smith’s position. But interviews with real-estate agents, lenders and buyers suggest that the number of first-time buyers who are encountering challenges is rising.

At least some are learning they must play by a whole new set of rules from just a few years ago. Stung by a real-estate meltdown fueled with free-flowing mortgages and runaway prices, regulators have reacted to the downturn by forcing lenders to be stingier with loans.

Buyers in Orlando, one of the hardest-hit markets in the country, must compete with multiple offers on bargain properties. Short sales can take months to finalize. Foreclosed houses often need repairs that disqualify them from federally backed mortgages. And, amid the free-falling prices, deal-killing appraisals often fall short of sales prices.

Smith found monthly fees on the condos would have cost more than mortgage payments. He endured a trail of “junk” houses that needed new roofs and other repairs. Some of the foreclosed properties had no power, and he had to view them by flashlight or cell-phone light. And finally, the four-bedroom pool home he wanted the most failed to meet federal lending rules.

“In a nutshell, it’s a whole different world out there,” said Judi Northrop, the Equilliance LLC loan officer who worked with Smith. She said he was a great candidate for a mortgage, but the days of someone with a pretty credit score skating through the process are over. Now lenders want documents to address every note in a mortgage application.

The real-estate industry continues to hope that the tax incentive will revive the sagging market. A study released earlier this month by the Fisher Center for Real Estate and Urban Economics at the University of California showed the credit has spurred sales.

The supply of homes priced at less than $300,000 decreased by 26percent compared with a year ago; and the amount of homes priced within the $300,000 to $500,000 range dropped by only 18percent. Study author Kenneth T. Rosen, lead researcher on the study and Chairman of Rosen Consulting Group, credited the federal tax break.

Sales up 45 percent vs. ‘08

In the Orlando area, it’s not clear how many first-time buyers are hitting snags while investors and others scoop up bargains.

Though sales overall for the year are up 45 percent from last year, the percentage of home sales with prices from $300,000 to $500,000 grew more during the last year than home sales under $300,000, according to a review of data from the Orlando Regional Realtor Association.

Investors are definitely making their mark, said Les Simmonds, president of the association.

“Multiple offers are there because investors are getting back in the market,” Simmonds said. “Traditional buyers coming in are going to find they’re in that mix with those bids ... the frustration is understandable.”

Until the tax credit emerged, buying a home had not been on Smith’s to-do list for a long time. In 2002, he considered purchasing a house but “chickened out” after declines in the stock market. For years, he rented from a roommate.

Smith, who was earning $39,000 at his job in Maitland when he started his search, targeted homes priced at $100,000 – about $28,000 less than the area’s median price. His loan officer said he could have afforded more, but he wanted to play it safe. Working with Olde Town Brokers agent Robert Gaudreau, Smith focused on neighborhoods along Interstate 4 from Altamonte Springs south to the Mall at Millenia area.

Early in his hunt, he found a real-estate landscape defined by foreclosures and distress sales, which constitute about half of the sales in the Orlando market. Of the 20 houses or condos he had seen by June, only two had people still living in them.

Northrop recalled that one of the houses Smith zeroed in on was in such rough shape that the drywall was missing in some places and only the studs showed after owners did not complete a renovation. Smith was getting a Federal Housing Administration-backed loan because those mortgages require down payments of only about 3 percent, compared with 10 percent or 20 percent for conventional loans. Those loans also require solid houses instead of makeover candidates.

“His problem has been finding the right property,” Northrop said. “Quite honestly, one of the last ones I saw, I wouldn’t live there.”

‘Very inconvenient’

Troubled house hunts aren’t unique to Smith. Orlando resident Darby Miller, 29, said he has found the market so competitive that one house had 12 offers by the time he looked at it. The biggest problem, he said, was that he did not qualify for a state program that would have given him the $8,000 tax-credit money upfront to use as a down payment.

“At this point, it’s very inconvenient,” Miller said. “I’m going to have to draw from funds I didn’t really want to use.”

For Smith, any condos and houses that were in his price range and in good condition quickly disappeared from the bargaining table. Two months into his search, Smith had made no offers.

“By the time I’ve said I’m interested, they’re gone,” he said in August. “Someone got to them before me.”

Finally, at the end of August, Smith found something. The four-bedroom pool home south of downtown Orlando threw him off at first because it was the color of mustard. But with a large, fenced backyard, it had everything he needed.

When he went to put together an offer, he learned that the house had sold for $54,000 the month before – half the price it had fetched seven years earlier. The most recent buyers painted it and put it back on the market for $99,900. Smith quickly learned that FHA would not OK a mortgage on a house that had just been flipped.

“I should have figured as much that it wouldn’t happen,” he said. “I didn’t even get a chance to put in an offer.”

Even if he had put in an offer, it wouldn’t have mattered. The house quickly sold for $7,000 over the asking price.

He said he’s going to spend the next few months saving more for a down payment. Then maybe he’ll try again.

Read more at http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=225169.

News Flash! RE: Extending the Home Buyers $8,000 Tax Credit

2009-10-13T15:36:00.000-04:00

The House of Representatives voted unanimously Monday to extend the deadline for the home buyers’ tax credit for one group of Americans.

HR 3590 will allow eligible military personnel and foreign service and intelligence officers to apply for the $8,000 tax credit for one year beyond its current November 30 deadline. Those meeting the underlying requirements for the credit must also be serving overseas or have spent at least 90 days deployed outside of the country during the current calendar year. It is expected that about 350,000 military personnel and an unknown number of federal employees may be affected by the new law.

The bill, introduced by Representative Charles Rangel (D-NY) because it was thought that families serving overseas were being passed over for this one-time opportunity to purchase a home. It passed the Housed passed with 416 votes and 16 abstentions.

FHA Offering Cash For Keys

2009-10-13T14:56:00.001-04:00

WASHINGTON – Oct. 13, 2009 – The Federal Housing Administration (FHA) is giving struggling borrowers an opportunity to deed their property over to the lender in exchange for up to $2,000.

Under the Cash for Keys program, borrowers with FHA-backed loans who agree to a deed-in-lieu-of-foreclosure do not have to repay the mortgage.

To qualify, owners must face long-term financial hardship, put the house on the market at a fair price for at least 90 days, face no additional claims or liens other than the first mortgage on the house, and leave the property clean and in good condition.

Source: Sarasota Herald-Tribune (FL) (10/12/09) P. D12; Bayles, Tom

Builders Cutting Back On Buyer Incentives

2009-10-06T15:41:00.001-04:00

Home builders are cutting back on the freebies they’ve been tacking on new homes for the last couple of years to woo buyers.

The reason is simple: Demand is almost back in sync with supply. According to Jeffrey Laverty, analyst with research firm Oscar Gruss & Son, new-home inventory has declined from 12.4 months in January to 7.3 in August, close to the six-month mark considered standard.

While eliminating incentives like free cars and free pools, some builders are continuing to offer to pay points on mortgages and discounts on upgrades – “Incentives that make sense,” says Laura VanVelthoven, Hovnanian’s corporate vice president of marketing and sales.

Source: The Wall Street Journal, Dawn Wotapka (10/05/2009)

To read more visit http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=224691

Finding Your Dream Foreclosure: What To Know When Buying An REO Property

2009-10-06T08:36:00.002-04:00

Buying a foreclosure often is appealing to buyers trying to stretch their dollars. It’s finding a good one can that can be a challenge.
“The vast majority of the banks don’t want us to advertise them as ‘bank-owned’ because it comes with a negative connotation,” said Ryan Melvin, co-owner of More Realty Group in Las Vegas.
That means no sign on the front lawn indicating the home is anything other than a traditional sale. A buyer probably won’t find a property advertised as a foreclosure on marketing materials, said Melvin, who specializes in real-estate owned properties, or REOs, those that have been reclaimed by a bank, typically after an unsuccessful foreclosure auction.
Plus, in some markets, including Las Vegas, foreclosure inventory is actually down compared with last year as government programs attempt to keep owners in their homes and banks aren’t putting as many homes on the market, Melvin said. That’s making it harder for buyers to snag a foreclosure, and those paying with cash often win a bid over someone who needs financing.
If you’re considering the purchase of a home that is now owned by a bank, it’s also important to know at the outset just how much work you’re in for — and how much it is going to cost you. Many foreclosures are in various states of disrepair; some of the fixes are cosmetic, but some can be extensive.
Those looking for the best deal probably shouldn’t rule out non-foreclosure properties, either, said Mark Goldman, a mortgage broker with Cobalt Financial Corp., and a real estate lecturer at San Diego State University. Sometimes, people set their sights on bank-owned properties “like the word ‘foreclosure’ equals ‘good deal,’” he said.
And that’s not always true.
For a fee, some websites will hunt down properties for you. RealtyTrac.com, which helps people find foreclosure and pre-foreclosure properties, charges $49.95 a month, after a free seven-day trial. The company also recently launched BankHomesDirect.com, which charges $19.95 per month and lets people search just for REOs.
Foreclosures.com charges $49.95 per month, after a free seven-day trial.
Otherwise, you might want to enlist the help of a REALTOR. Someone who works regularly with REOs might be able to track down the properties more easily than a traditional agent.You will be able to get a list of foreclosures in your area for free. If you live in St Johns County you can get a free list of foreclosures at www.NorthFloridaHomeSearch.com.
Lenders aren’t held to the same disclosure requirements as sellers who have lived in the home, mainly because the lender hasn’t occupied the home to notice leaks or other problems. For that reason, an inspection is crucial.
“If there are lessons out of the last couple of years, it’s certainly buyer beware,” said Dan Steward, president of the home inspection firm Pillar to Post, which has a U.S. headquarters in Tampa, Fla.
“We have all heard the stories of people ripping the copper pipe and wiring out … people have literally gone to the light switch, disconnected the wire from the switch box and have pulled the wire through the drywall,” Steward said. Some have ripped out toilets and kicked in walls or left water faucets running before they left the house, often out of anger.
You don’t need to be told the toilet is gone, but an inspector can tell if there is damage 20 feet down the water line because of the way that toilet was ripped out, he said.
Other issues could pop up due to the property being vacant. Large banks will often hire a field service to cut the grass, shovel the snow and winterize a home, yet when homes aren’t occupied it’s harder to catch small problems before they become big ones.
“When we live at home or drive the car, if something is off we notice it. We notice it and we deal with it,” Steward said. When a place is unoccupied, pests could become an issue. If you were living in a home, a nest of raccoons probably wouldn’t be able to find a home in your crawlspace—not for long, anyway.
A neighborhood environmental report might also be worthwhile, he said, which could reveal if the property was the site of a drug lab, for example. When a meth lab is operating in a home, air quality issues can arise; when a home was used for growing marijuana, there is a tendency for mold problems from the high humidity, Steward said.
The time it takes to complete the sale can vary from lender to lender. In some cases, the process goes smoothly, Goldman said. Other lenders are disorganized.
“It really depends on who you’re doing business with,” Goldman said.
But for your best chance at having an offer accepted and for a quick closing process, have everything in order before making the offer, said Duane Andrews, CEO of Clear Capital, a company that provides valuation products for the mortgage and lending industries. That includes having the financing firmed up and writing a clean offer — for example, asking for new oven racks as part of the deal could peg you as a demanding buyer who will be annoying to deal with, he said.
“What this tells the seller is this guy is going to be a pain and they don’t have time for this pain,” Andrews said.
In fact, most bank-owned properties are sold “as is,” so if there is something you want fixed, it’s best to just factor that into the price you’re offering, Melvin said.
But don’t expect to bargain the listing price way down, Melvin added.
Banks typically price their properties at a 20 percent to 30 percent discount anyway, he said. If the property has been on the market for a week or two, don’t expect the bank to drop the price; if the listing is older, you might have more power, he said.
Also, don’t be surprised if the bank that is selling the property asks you to get an approval from its mortgage operation; you often don’t have to take the loan from their company, but they may want to get a closer look at your finances to make sure you’re a solid buyer, Melvin said.
Above all, make sure to follow directions when submitting the offer, he said. That likely includes having an approval letter from the bank and the correct amount of earnest money.
“Most listing agents will have instructions how we want buyers agents to submit the offer,” he said. Delays can occur when instructions aren’t followed exactly.
Read more: http://rismedia.com/2009-10-04/finding-your-dream-foreclosure-what-to-know-when-youre-buying-an-reo-property/#ixzz0T9tQbYdh

30-Year Mortgage Rates Fall Below 5%

2009-10-04T10:31:00.001-04:00

Rates on 30-year home loans dropped below 5 percent for the first time in four months, but still remained above this year's record low, Freddie Mac said Thursday.

The average rate on a 30-year fixed mortgage was 4.94 percent, down from 5.04 percent last week, Freddie Mac said. The last time the 30-year home loan averaged less than 5 percent was the week ending May 28, when it was 4.91 percent.

Rates hit a record low of 4.78 percent hit in the spring, and remain appealing for people interested in buying a home or refinancing.

On Thursday, the National Association of Realtors said the number of signed sales contracts rose for the seventh straight month in August, as homebuyers rushed to take advantage of a tax credit for first-time owners that expires in November.

"Low mortgage rates are helping to stabilize home sales," said Frank Nothaft, Freddie Mac's chief economist.

But borrowers may want to consider the Federal Reserve's announcement last week that it is slowing down a program intended to lower mortgage rates and boost the housing market. Analysts say mortgage rates should remain low for now but could eventually move higher, and homeowners who want to refinance mortgages shouldn't delay.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

The average rate on a 15-year fixed mortgage fell to 4.36 percent from 4.46 percent last week, according to Freddie Mac. This week's rate on 15-year mortgages was the lowest since Freddie Mac started tracking it in 1991.

Rates on five-year, adjustable-rate mortgages averaged 4.42 percent, down from 4.51 percent a week earlier. Rates on one-year, adjustable-rate mortgages fell to 4.49 percent from 4.52 percent last week.

The rates do not include add-on fees known as points. The nationwide fee for loans in Freddie Mac's survey averaged 0.7 point for 30-year mortgages, and 0.6 point for 15-year and five-year loans. The fee averaged 0.5 point for one-year mortgages.

Do I Need An Inspection If The House Is Sold "As-Is"?

2009-07-09T13:28:00.003-04:00

Since short sale and foreclosure properties are typically sold in "As-Is" condition
many buyers mistakenly believe they shouldn't seek out an inspector.
Before going it alone, it is important to know what type - or types - of
inspections you need and what they can - and can't -do for you.

For the purpose of this article, we will be discussing optional home
inspections. The scenario usually goes something like this; you find a
potential short sale property and have decided to make an offer --
contingent upon the inspection. After all, you want to make sure you have the
required funds to bring the property up to par with the local area
either for resale or rental.

Having a thorough inspection is also another excellent negotiations
tool for use with both the buyer and bank; banks dislike properties in
need of extensive repairs because they recognize the additional time and
cost required to make the property appealing to potential buyers. So,
being the savvy short sale investor, you decide to hire an inspector.

Time for a Reality Check

At this point you might assume the inspector will crawl through every
crook and cranny searching for every minor detail and defect. If you
have ever sold your own home it can certainly feel that way. The actual
quality of the inspection is highly dependent upon the individual hired
but in every case you can expect to pay an additional charge if you
desire things like water quality testing, testing of the septic or sewer
system for anything other than major defects, and general testing of
electric, AC/Heat etc...most basic inspections only test whether the unit
comes on not whether it works efficiently or not. This brings us to the
first important point to keep in mind...if you want more then make sure
you stipulate it and expect to pay more.

No Guarantee

Many people unwisely assume an inspection provides a 'guarantee' but
read the fine print -carefully. If a major problem is missed during the
inspection you will still be out the cost of repairs. The vast majority
of home inspectors will refund your service charge if they miss
anything - but specifically state they are not responsible for further damages
or costs. Don't assume they are flawless- instead, use inspections
like a negotiation tool.

In many cases the seller might be unaware or just grown accustomed to a
problem and the bank is more likely to consider a low offer on a
property in need of improvement or repairs. Having an inspection
performed...even on an "As-Is" sale, provides an objective measures and
negotiation strategy to make the buyer and bank aware of potential problems and
the likelihood that other buyers will encounter the same.

Rather than thinking of independent inspections as a "security" or some
type of "insurance," instead consider them a tool in your negotiation
strategy.