June 9, 2008 at 5:57 pm · Filed under Affordable Housing, Condos, Gulf Breeze, Gulf Coast Housing, Pensacola, Perdido Key, Residential, Seasonal Rentals, Selling Your Home, The Mortgage Market, Vacation Properties
New housing report shows the best quarter of the last 5 consecutive.
The post below is cut and pasted from a report that I received from Emerald Coast Appraisal Services. I have been saying for a while that the market appears to be picking up, and here is the proof of it. Not only did housing sales increase, but of the 19 metropolitan markets studied in Florida, Pensacola came up with the largest increase. A special thanks to Roger Kinnard for making this information available.
Emerald Coast Appraisal Services
409 S. Navy Blvd.
Pensacola, Florida 32507
Phone: 850-455-3333 Fax: 850-456-0192
The State of the Pensacola Housing Market – 06/2008
(Roger Kinnard, St. Cert. Res. REA #2782, RAA)
As spring transitions into summer, our real estate market appears to be gaining some momentum and the traditional sales season is underway. Many indicators of activity are up and the message that this is a buyers market and a good time to buy appears to be sinking in. While all of the positives are tempered by the remaining overabundance of active listings and declining values in many segments of the market, they are undeniable.
The Office of Federal Housing Enterprise Oversight issues a housing price index every quarter that measures housing price trends in numerous metropolitan statistical areas throughout the country. The Pensacola market has posted 5 negative quarters in a row, until now. The latest housing price index shows Pensacola gaining .76% in the first quarter of 2008. While less than 1% many not sound impressive, it is the highest number posted by any market in the state of Florida. Out of 19 markets studied in Florida only 3 posted a positive number and Pensacola had the highest increase.
The latest statistics issued by our own Pensacola Association of Realtors show that the median price for May 2008 ($170,900) is higher than the median price for May 2007 ($170,500). While the volume of sales continues to lag behind last year by around 24%, the number of sales has increased every month since January. Supply has remained stable at around 6,400-6,500 units for sale throughout the year to date.
The significance of these signs of stabilization is twofold. Not only are they positive indicators for the future of this market, but they could also affect the number of potential buyers who can qualify for loans. On the basis of previous OFHEO reports, association of Realtors information, and other sources of data, FNMA and many individual lenders have designated the Pensacola market to be a declining market. A loan originated in a designated declining market has different underwriting and qualifying standards. While FNMA has recently announced changes to their policy of requiring higher down payments in declining markets, many lenders remain tentative about making loans in declining markets. If these positive indicators hold true, it is possible that Pensacola may be taken off the list of declining markets.
As mentioned previously, FNMA has recently (starting 06/01/2008) made changes to their loan-to-value policies. A mortgage originated through desktop underwriting can qualify for up to a 97% loan, even in areas that are designated as declining markets. This will allow borrowers who need these types of loans to have another option, besides FHA.
With these positive indications, the first we have seen in a long time and the possibility of more open, available financing, the prospects for the market are much brighter than they were just a few months ago.
Our market remains segmented. Some areas are showing signs of stability, while some areas remain in decline. Even varying price ranges within a specific area are performing differently.
The following charts and tables show how different two segments of the same market can be. While Z2Y1 and Z7Y2 are only separated by 3 or 4 miles, the difference in performance between the two areas over the past year is notable.
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June 3, 2008 at 3:11 pm · Filed under Pensacola, Perdido Key, Residential, The Mortgage Market
Mortgage bonds make a slight recovery.
Early in the trading day, the mortgage bonds were hovering right around the 200 day moving average leading us to wonder if the downward spiral of last week was going to make a recovery. This afternoon has been decidedly better for mortgage bonds, and at the time of this post, they are trading a 30 basis points above the 200 day moving average.
Under normal circumstances, I would not be very excited about news like that. But, given the hard slide downward last week, anything above a moving average is good (even if it is just the 200 day moving average).
There was no significant economic news out today, so the bond market will go at its own pace with the other financial markets.
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May 19, 2008 at 8:13 am · Filed under Condos, Gulf Breeze, Gulf Shores, Pensacola, Perdido Key, Residential, Short Sale, The Mortgage Market
How Do I choose the right realtor?
I am not the first person to write about this, and will most certainly not be the last. Here are some simple things to look for.
We are in historic and interesting times in the real estate business. There are more choices, and at better prices for buyers than have existed for decades. This creates a problem whether you are a buyer or a seller as to who you choose to help you in the process. For buyers, the first thing you should know is that you need your own “Buyer’s Agent”. This is important for 2 reasons: 1) the agent that has the home listed represents the seller, and the seller is their primary responsibility, and 2) the seller pays the fee for both Realtors whether you get one yourself, or use theirs.
For sellers, the chore is more daunting. Finding a real estate professional is the most important part of selling your home. If you get the right one, they could potentially have it sold for you in weeks. And, if you get the wrong one, you might go into foreclosure without ever even getting an offer. As a seller, the relationship between you and your agent is complex, but it must be open minded to work. If you are unrealistic about the price or willingness to negotiate, you will not sell your home. If your agent is so hungry that they will tell you whatever you want to hear, rather than stick to hard market data, you also will not sell your home. Take a look at a few simple suggestions for choosing the right agent for your situation.
- First, steer clear of the inexperienced agent. You may have a brother-in-law that is an auto mechanic, but just got his real estate license, and you feel more comfortable dealing with family. As you prepare to sell the largest asset that you and your family own, you need a professional in the same way that you would not go to a family practitioner to get open heart surgery.
- Find someone who knows your neighborhood better than anyone. There’s an old saying in real estate that is “Live where you sell, and sell where you live”. If you find the “super agent” in the Sunday paper, but he lives 40 minutes away from your home, you will be dissatisfied with his service regardless how many awards he has.
- Be open minded about the price, and decide if you want to “list” the property, or if you want to “sell” the property. The typical home owner may ask “what’s the difference?”, and someone in the business knows exactly what I am talking about. If you look at the comparable sales that have taken place for similar homes in your immediate area, and you are priced 20% above them because you refuse to accept less than “X” for your home, then you are wasting everyone’s time, including your own. You don’t dictate the price, the market does, and if the market is not in the right place for you right now, you need to either change your mind about selling, or change your mind about needs and wants on the price.
There is a lot more to selling your home than these simple pointers. But, the most important thing you need to take away from this article is to trust your Realtor and his(her) judgment. If you don’t….you have the wrong Realtor.
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