July 8, 2008 at 9:10 am · Filed under Ono Island, Perdido Key, Residential, Seasonal Rentals, The Mortgage Market, Vacation Properties
Island Real Estate – Ono Island Alabama
Ono Island Alabama
When most people think of Island Real Estate or Island Vacations, they don’t think of Alabama. There is, however, a hidden gem on the gulf coast of Alabama called Ono Island. This unique paradise is nestled between Perdido Key Florida on the south and main land Alabama on the north. Even though it is less than 40 minutes from Pensacola, and less than an hour from Mobile, Alabama, you will feel like you have moved to a secluded caribean island when you are there.
With a contrast of older original beach homes, and newer super mansions, this island has an eclectic mix of arcitecture. What many locals may not even know is that Ono Island is world renowed as one of the best fishing spots for speckled trout. Hidden under the illuminated docks of the private residences around the island, the speckled trout makes for good eating, and a whole lot of fun to catch.
If you would like to learn more about how you can buy your slice of a private paradise, go to PerdidoKeyMortgage.com and find out what your options are today.
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June 13, 2008 at 9:48 am · Filed under Pensacola, Perdido Key, Residential, The Mortgage Market
The bond market is showing some indications of a rally.
Early trading efforts this morning are reflecting a possible bullish move higher. The Consumer Price Index (CPI) for May was released with a slightly better than expected 0.6% vs. the 0.5% that economists were expecting. The increase in costs to the consumer combined with the release of the Consumer Sentiment report well below expectations is simply repeating what we already know about weakness in the economy as a whole.
These 2 reports are seen as bad for the economy and bad for stocks. And as you know (as a reader of this blog), what is generally bad for stocks is good for bonds, and mortgages in general. This is by no means a strong rally, nor is it enough to offset the major sell off earlier this week. But, it could be a sign of an upward correction.
This goes against the logic of yesterday’s post, but in this market, there is a lot of volatility that defies conventional wisdom. The best I can say for today is cautiously watch the market for signs of whether or not to lock your rate. If there is any kind of downward movement later in the day, I would recommend locking to protect your current rate.
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June 12, 2008 at 10:13 am · Filed under Affordable Housing, Gulf Breeze, Gulf Coast Housing, Gulf Shores, Pensacola, Perdido Key, Residential, The Mortgage Market, Vacation Properties
If you are waiting for the bottom in the real estate market, you may lose out.
As we continue to see volatility in the financial markets, the question comes up about when is the right time to buy in today’s market. Do you wait until the nightly news tells you it is time? Do you listen to your real estate agent who clearly has a vested interest in the transaction? Do you listen to the statistics reported for your local area?
Real estate is a highly localized market. What is good in your backyard, very likely is not the same 100 miles down the road. This fact alone should make you reconsider blindly following the talking heads on T.V. That being said, there are more factors at play when purchasing property than just the market price as a whole, or where the “bottom” may or may not be.
In the Bond market today, we will very likely see the 25 day moving average cross over the 200 day moving average. This is significant because it means that short term volatility is turning into a long term trend. Historically, when the short term average moves over the long term average, the trend will continue to move in that direction. Newtons law explains that “objects in motion tend to stay in motion”. It is the same reason you wear a seat belt in a car, and the same reason that football players wear pads. Over the last 2 years, every time the short term average has moved across the long term average, the trend has been in that direction for at least 3 months. While we are living in a time that goes against the grain historically, certain truths still warrant discussion.
So what does that mean if you are looking to buy a home, and you are waiting for the bottom to hit in the market? Here is an example:
If you get a 200,000 mortgage at 6.25%, your monthly payment would be $1231.43 (not including taxes and insurance and mortgage insurance). If you continue to watch the market and the same mortgage comes down to $190,000, but at the same time rates go to 7.25%, your new payment would be $1296.13. So congratulations, you got a better deal on the house only to have a payment that is $64.70 per month higher.
If you are paying cash, this example holds much less weight. But in the real world where most people borrow money to buy a home, it is significant.
My point is, don’t watch the national news to get information about whether you should buy or not in your local area, it is just too general to be accurate.
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