Sales were up 31% in June!

As I continue to share the good news with you, my friendly readers, let us celebrate more positive housing market news as shared by Florida Realtors


ORLANDO, Fla. – July 19, 2012 – Florida’s housing market had increased pending sales, more closed sales, higher median prices and a reduced inventory of homes for sale in June, according to the latest housing data released by Florida Realtors®.

“Florida’s housing recovery continues its positive momentum,” said 2012 Florida Realtors President Summer Greene, regional manager of Better Homes and Gardens Real Estate Florida 1st in Fort Lauderdale. “All of the signs point to solid gains, which is good news for the state’s economy.  In June, pending sales were up 31 percent for existing single-family homes and nearly 23 percent for townhouse-condo units compared to a year ago. The trend shows that many buyers are ready to purchase their Florida dream home, but a lack of financing options and overly restrictive credit standards remain obstacles.”

Pending sales refer to contracts that are signed but not yet completed or closed; closed sales typically occur 30 to 90 days after sales contracts are written.

Statewide closed sales of existing single-family homes totaled 18,800 in June, up 5.3 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. The statewide median sales price for single-family existing homes last month was $151,000, up 8.2 percent from June 2011.

According to the National Association of Realtors (NAR), the national median sales price for existing single-family homes in May 2012 was $182,900, up 7.7 percent from the previous year. In California, the statewide median sales price for single-family existing homes in May was $312,110; in Maryland, it was $259,207; and in New York, it was $208,000.

The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts 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.

Looking at Florida’s year-to-year comparison for sales of townhomes/condos, a total of 9,202 units sold statewide last month, up 1.5 percent from those sold in June 2011. The statewide median for townhome-condo properties was $110,000, up 15.8 percent over the previous year. NAR reported the national median existing condo price in May 2012 was $180,000.

Last month, the inventory for single-family homes stood at a six-months’ supply; inventory for townhome-condo properties was at a 5.9-months’ supply, according to Florida Realtors.

“The trend we’ve seen established over the past year is continuing,” said Florida Realtors Chief Economist Dr. John Tuccillo. “In June, every housing market indicator moved in the right direction. Closed sales are up, but so are pending sales, median prices, average prices and the ratio of sales price to list price. Conversely, listings are down, days on market are down and – most important – inventories are down. We have now reached a six months’ supply of inventory for existing single-family homes and 5.9-months’ supply for townhouse-condos.”

Tuccillo added, “With an improving employment environment in Florida, we expect that the housing market recovery will continue in the future.”

The interest rate for a 30-year fixed-rate mortgage averaged 3.68 percent in June 2012, significantly lower than the 4.51 percent average during the same month a year earlier, according to Freddie Mac.

To see the full statewide housing activity report, go to Florida Realtors Media Center athttp://media.floridarealtors.org/ and look under Latest Releases, or download the June 2012 data report PDF under Market Data at: http://media.floridarealtors.org/market-data

© 2012 Florida Realtors®

A picture is worth a thousand words

These pictures show PROOF of a Recovering housing market!  The pictures were taken yesterday in Jupiter Florida.  It made me smile and I wanted to share it with you.  The Sun Sentinel Reported a 20% growth in the new homes market for Palm Beach County and the proof is in the building.  Let's get started finding you the perfect home.

Holidays for reflection

Today is a typical, although not frequent, holiday day off for me.  I am spending the day, catching up on cleaning and laundry, but decided that I needed to "clean" my thoughts as well.  I keep saying the Real Estate Market is improving, and I can say from a personal point of view that it is true.  My listing of a 5,334 sq ft estate in Steeplechase closed last month, and I am pleased to say it was a win-win for both buyer and seller.  I have a Short Sale in Lake Worth.... a charming 2 bedroom 1 bath with a large yard blocks from the water that has only been on the market for a week, and I just received a contract on it!
My belief is that people are tired of all the bad news in the paper, and are also tired of putting their lives on hold.  They are buying new cars and buying new homes!

It is time to clear the clutter from our homes and heads, make a plan on where you want to live in 6 months, and call me to help you get there.

"What is the Biggest Mistake Sellers Make in Today's Real Estate Market?"

I was speaking with a nationwide top real estate agent the other day. During our conversation, I asked him, "What is the biggest mistake that you see sellers make in today's real estate market?"

His answer blew me away because it seems so easy to avoid. He said the biggest mistake he sees people make is not making a counteroffer on purchase offers they deny.

He said it is critical for sellers to not take offense to a buyer's offer and completely forget about them.

Instead, try to come to an agreement with an offer of your own that is below what you are asking and above what they offer. While this seems like such an obvious answer, he said many people just ignore a real low offer. That is a HUGE MISTAKE!

Frequently a buyer comes in at a low price on the first offer just to see what will happen, even if they are prepared to pay full price.

It is so important to keep the lines of communication open. Communication is the secret to success in all relationships.

Just remember that you have somebody that has seen your house and wants to buy it. Obviously they want to pay as little as possible, you want them to pay as much as possible, and that's why they call it negotiations. Counteroffers can be a great way to sell and buy a home.

(reposted with permission from Daniel at Elite Lending)

It has been a great week!

Wow, There has been so much good news this week.

Regarding the economy, 3 big areas all posted positive news this week.

Unemployment dropped to 8.3%.

The housing Market update is also positive: The mortgage rate on a Fixed Rate Mortgage dropped to 3.87%, and many of the nations top home builders said they feel the housing market has stabilized.

and another great economic indicator is Auto sales: Chrysler Group LLC reported a hefty 44-percent gain in U.S. auto sales in January, led by its Jeep brand, while Ford Motor Co posted a 7 percent gain.

This is a great way to go into the weekend. As I keep saying, now is the time to buy or sell your home. Please call me to discuss your options.

10 Surprising Reasons You Can’t Get a Home

Getting a home signifies financial security and an investment for the future. Owning a home is part of the American Dream. There are some surprising reasons why you can’t get a home.

1. Down Payment – You may have the required 10%-25% on the asking price of the home you are interested in but how you acquired it and how long you’ve had it could keep you from getting the home. Many times relatives offer young couples the down payment. Lending institutions take this into consideration when looking at the ability of a homeowner to keep up with mortgage payments. Saving the down payment over time lends to the credibility of money management.
2. Credit– Credit history is an ongoing process. Student loans are one of the first obligations a person may have as an adult. Late payments may have a bearing on your ability to acquire a home later in life. Credit scores are also affected by utility payments. Any recurring bill that is paid late may come back to haunt you even though your financial situation is now more sound. Your debt to income ratio ideally needs to be under 45%. Less than a 3 month asset reserve in a bank account will generally keep you from getting a home. Check your credit score with all 3 agencies and make sure there is nothing being reported incorrectly. You need to aim for a score of 660 or better.
3. Job Security – Your job history may be why you can’t get a home. Lenders look for stability. If you jump from job to job, regardless of monetary or career improvement, lenders see you as a financial risk. When the economy takes a downward turn, employers tend to retain employees with seniority. Also taken into consideration is the risk of the job.
4. Parent History – If your parents have a questionable credit history, you may be dealing under their shadow. If parents foreclosed, you may be affected. If they were late with mortgage or credit card payments, you may be looked upon as having the same traits. If you are asked information on parent particulars, you may need to look elsewhere for home financing.
5. Location – The location of a home may affect whether or not a lender is willing to risk mortgaging it. LNG routes, Super Site areas, fault lines, destructive weather patterns all have bearings on mortgage risks lenders are willing to take on.
6. Inspection – More and more, home inspections are being required to seal the closing deal. Hopes have been dashed to learn major expenses must be incurred to pass inspection for the approval of the sale.
7. Condition – Fixer-uppers may offer pricing that appears affordable. If you have no background of construction or home improvement projects completed, lenders are leery to finance such undertakings. They may require a lump sum amount be in an account to cover the improvements necessary to ensure the property does not result in a loss to the lender.
8. Liens – If you owned property before and were subject to liens for unacceptable reasons such as credit card debt or unpaid taxes, you may not get the home you desire. A current homeowner may also have substantial liens that need to be satisfied at closing either from the sale itself or as additional costs to the buyer.
9. History – The history of the home may be the deciding factor that keeps a lender from financing in your behalf. A murder, haunting, nearby sinkhole, or other less favorable activity, bear upon the lender’s willingness to finance such a home.
10. The Bank – Economic conditions and bank lending history may be the reason you can’t get a home. Banks may be leaning toward only very secure clients to up their lending credibility. If a bank turns you down, look to other options before you decide to settle on thinking you can’t get a home. FHA, VHA, or a first time buyer program offer other alternatives for which you may qualify.

If you can’t get a home loan with one lender, chances are good that another institution will also turn you down. You should take some time and work at increasing the good points that will work in your favor. Try again when your situation has improved.

posted with permission by KCM