Existing home, condo sales rise

If you’ve been sitting on the market sidelines, waiting to see when it “hits bottom,” better get ready to get in the game! According to data collected by the Florida Association of Realtors, existing home and condo sales continue to rise over last year:

Florida’s existing home sales rose in February, making it the sixth consecutive month that sales activity showed increases in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR). February’s statewide sales also increased over January’s figures in both the existing home and existing condo markets.
Existing home sales rose 20 percent last month with a total of 9,858 homes sold statewide compared to 8,181 homes sold in February 2008, according to FAR. February’s statewide existing home sales were 16.7 percent higher than January’s statewide sales.Florida Realtors also reported a 15 percent gain in statewide sales of existing condominiums in February, continuing a trend in recent months for higher statewide sales of both the existing home and existing condo markets compared to year-ago levels. Statewide existing condo sales last month increased 25.1 percent over the total units sold in January.
Thirteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing-home sales in February while 11 MSAs also showed gains in condo sales. It marks the eighth month in a row that a number of markets have reported increased sales.

Here on the Emerald Coast, we are not yet seeing increases in prices but choice properties priced well do not stay on the market long. Don’t let opportunity pass you by!

Mortgage rates at record low

Rates on 30-year mortgages plunged to a record low Thursday after the Federal Reserve launched a new effort to prop up the housing market. According to Bankrate.com, more than half of industry experts believe that mortgage rates will continue to drop.

The national average rate on 30-year, fixed mortgages was 4.94 percent on Thursday; the average rate on a 15-year fixed-rate mortgage dropped to 4.61 percent, down from 4.64 percent last week, Freddie Mac said.Rates on five-year, adjustable-rate mortgages fell to 4.98 percent, compared with 4.99 percent last week. Rates on one-year, adjustable-rate mortgages rose to 4.91 percent, from 4.8 percent last week.The rates do not include add-on fees known as points. The nationwide fee for fixed and adjustable rate mortgages averaged 0.7 point last week.

For borrowers with stable jobs and good credit, it represents an opportunity to refinance at the lowest rates in decades.

Questions? Comments? Respond to this Blog, or contact Jennifer Howard at 850-585-7334, Jennifer@MyDestin.info.

Destin, South Walton market is moving!

Here’s a brief but very significant market update with data compiled by our Broker Chip Jervis:
· Since January 1, 2009, Prudential Coastal Properties has taken 102 new listings, with a dollar volume of $82,548,998.
· Also since January 1, 2009, we have also posted 52 new pending and/or closings.
· Since Feb. 20, 2009, Prudential Coastal Properties has added 32 listings and 38 new pending/ closings.

Based on data collected since January 1, 2009, from our area-wide Emerald Coast Association of Realtors Multiple Listing Service:
· Combined Residential (single family homes, attached units and condos): 386 Contingents, 1106 Pending.
· Residential Land: 24 Contingent, 87 Pending.
· Commercial: 10 Contingent, 20 Pending.
· Combined Residential: 626 Closed.
· Residential Land: 62 Closed.
· Commercial:17 Closed.

Bottom line: the real estate market is moving. Buyers and Sellers had best get moving, too.

Questions? Contact Jennifer Howard at 850-585-7334 or jennifer@MyDestin.info.

What's next: Inflation?

Anybody out there remember Economics 101? After the government releases a lot of money into the economy, too many dollars begin chasing too few goods. That nasty economic situation is known as inflation. And it hurts!

Two days of the stock market managing to stay of the positive side is far too soon to say the long-awaited economic turn-around is here. Still, I can’t add fast enough to keep up with how many ba-zillion dollars the feds are dumping into the economy. Once enough money gets into the economy, it will take a very deft hand to make sure that ugly circa-late-1970s-style inflation doesn’t hit. I believe we’ll feel the effects of inflation, no matter how careful our global financial leadership might be.

When inflation hits, all the folks who are holding on to cash instead of investing in real property (like real estate) will watch their funds devalue. Sure, it’s not as obvious as watching your 401K statements plummet. The realization may hit only when they try to purchase something. On the other hand, people who have purchased real property (like real estate) will watch its value grow.

To all you folks sitting on the fence, hanging on to your cash, waiting for real estate to hit bottom before you buy: prices are low, you have a plethora of opportunities from which to choose, and financing is available with good interest rates. Beware of inflation!

Waiting For The Bottom?

If only I had a dollar for every time I am asked, “When will the real estate market hit bottom?”

The real answer is: NOBODY KNOWS.

The second part of the answer is: By the time anyone is able to definitively pinpoint the bottom of this cycle, it will be long past.

So what’s a Buyer to do? Decide what property you want to buy. Gather good data about that local market. Then decide if you believe prices there will fall over the next year. If you do, then make an offer to buy the property based on the percentage you think the market will drop.

Does this strategy work? I’ve advised several customers based on this strategy and it has worked for them. Some 18 months ago, a waterfront buyer and I researched property that would fit their requirements. They believed the market would fall a little more than 20%, so we made our offer based on that belief. The buyers purchased their property at just below their 20% point, and the purchase price continues to hold as the market bottom for this particular kind of property – in spite of short sales, foreclosures and distress sales.

So while others struggle with the discomfort of sitting on the fence, these folks have been enjoying a great property for 18 months.

What are you waiting for?

How to base buy or sell decisions on the best data available

How to base buy or sell decisions on the best data available

These days, a Buyer or Seller can find plenty of facts and figures about real estate. Do a Google search for real estate in a particular area and you better have half a day to look through the results. You can find an almost infinite number of websites and blogs devoted to real estate. And if you don’t want to look online, just pick up a newspaper or magazine; turn on the TV; or open your “snail mail.”

Problem is, almost every single bit of this data is essentially HISTORY. That’s right, it’s all about what economists, statisticians, data collectors and number-crunchers can document that happened last week, last month or last year. I’m not saying we can’t learn from history, but making important real estate decisions based on yesterday’s news is risky at best.

So how do you get the absolute best, most up-to-date information on which you can confidently base buying and selling decisions? Work with a good Realtor®.

A Realtor knows where the market in their area is today, this hour, this minute. Why? Because your Realtor is on the street, meeting with Buyers and Sellers, and at the negotiating table working sales every day. They can pinpoint the market based on daily information.

Spotting historical trends is important. But working with a good Realtor allows you to make history rather than base one of your most financial decisions on stale data.

Contact Jennifer Howard at jennifer@mydestin.info or 850-585-7334 for the most up-to-date data available on Destin and South Walton County real estate.