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Tuesday, July 6, 2010
July Market Update for Tampa Bay, Apollo Beach Florida
In this month’s update I would like to share some real life stories rather than give you stats.We all like stories, don’t we? Especially when they are real and have “happy endings”. I recently listed a family’s 4 bedroom manufactured home in the Southshore area because they thought NOW was the time to BUY, and they are so right! We put the property under contract rather quickly (it was priced well) and fortunately the family had a home to move into until we found their new home. Over the course of several months they tried waiting on short sales to get approval from the bank, but found the waiting was too much for them. We tried negotiating with a seller on a non-short sale property,but felt the seller was not being realistic (he didn’t want to pay closing costs and actually wanted to offer a cheaper home warranty than the one requested). We were scheduled to go back and look
again at a short sale we heard was approved when I got a text from a NEW HOME sales rep about some special financing on their inventory homes. We went back into the short sale home and found it had an odor problem we didn’t notice the first time. Then we headed to the new home subdivision. They fell in love with a 2200 sq ft 4 bedroom 2 & ½ bath BRAND NEW HOME in a gated community with a pool, basketball court and playground! All this for only $1200 a month – and that includes principal, interest, taxes, insurance, HOA and CDD!!
They got a 4.25% 30 year fixed interest rate. LESS than RENT!! And the builder is paying $12,000 towards their closing costs and prepaids! Had they bought a short sale or bank owned property, they would buy “as-is”…no warranties, no repairs, and they would have to clean, paint and install new flooring (at least) in most we viewed. The non-short sale they considered had a 10 yr old roof, so in about 5 yrs they would have to replace that and the home had vinyl in the kitchen and baths. Their new home has 18” tile, laminate, granite in the kitchen (with an island and black appliances), brand new carpet and fresh paint. And they have full warranties for the first year, warranty less the appliances the second year, and a 10 year structural warranty. How is that for peace of mind? We even negotiated with the new home builder to include the refrigerator, washer & dryer, and blinds. And they can close in 30 days or less. So they ended up with much more house than they ever dreamed they could afford! I think I will end with this one story this month, and share the story next month of someone who “downsized” from an inland home with lots of yard work to a GORGEOUS WATERFRONT VILLA in Apollo Beach. No more mowing or pulling weeds! There is another happy ending.

By Jim Cramer

Forget the crummy quarter that KB Home just reported. Forget that they still have plenty of liquidity, so, unfortunately for the housing market, they can still pump out new homes just when we want them to cut back.

The real takeaway of the conference call was the housing bottom that they saw in Southern California. It’s huge. They said sales are up by hundreds of percent — that’s the term they used — because the affordability is the best in 20 years, and rates are the best in 47 years.

Two years ago, KBH’s Southern California (KBH- commentary- Cramers Take) home business hit a retaining wall going 200 miles an hour. It has seen nothing but price cuts and foreclosures and cancellations in its projects ever since … UNTIL THIS QUARTER.

In this quarter, they saw month-to-month-to-month stronger sales, as housing prices are down as much as 45% in some of their sales areas (you can see all of them by going to their Web site).

I think the case can be made that it is time to buy there. You don’t get a sense from the call that any other place in their network has bottomed. In fact, they almost all have further to go down.

But not Southern California, where they are selling out, particularly of the $200,000 homes. Oh, and they made very clear that there is ample FHA money available to buy there.

It’s just a remarkably positive housing story within the house of gloom, and a perfect harbinger of what will happen later this year with price declines in the rest of the country.

Get this: KB Home is actually running out of inventory and selling new homes at the same price as foreclosed homes. Hence the fabulous affordability.

No wonder the stock is up!

At the time of publication, Cramer had no positions in the stocks mentioned.

Foreclosure Defense  

Real Estate Outlook:
Steady Growth Expected
    Harsh weather conditions held back home sales in February — leading to some renewed gloominess by Wall Street analysts.
     But several new economic reports, including on employment, suggest that during the coming several months we\\\’re likely to see steady but unspectacular national economic growth, and some pretty good housing rebound numbers.
     Even the February home sales numbers were nowhere near as negative as you might expect under the circumstances.
     Existing home sales were down slightly for the month – by six tenths of a percent – but were still clicking along at more than 5 million on an annualized basis.
     New home sales were harder hit – down by 2.2 percent for the month. But median prices on new homes sold for the month jumped by six percent over January and were up five percent year over year, according to the Commerce Department.
     A new study by economists at the Federal Deposit Insurance Corp (or FDIC) also provides a positive take on where we\\\’re headed.
     The United States housing market, according to the FDIC, is showing \\\”tangible signs of improvement\\\”.
     Affordability – which is obviously a crucial factor in whether households can buy or not – is at \\\”historic high levels,\\\” says the report.

Equal Housing Opportunity

Bonnie Fagoh 813-390-7606 bonniefagoh@gmail.com http://www.TampaCoastalHomes.com

Century 21 Beggins Enterprises 813-658-1344 6542 U. S. Hwy. 41 N. Apollo Beach, FL 33572

Mortgage Rates Source: Realty Times U.S. averages as of March 25, 2010: 30 yr. fixed:   4.99% 15 yr. fixed:   4.34% 1 yr. adj:        4.20%

economist. ”Interest rates on 30-year fixed mortgages, however, were still below 5 percent for the fourth consecutive week.”

    You’ve decided to purchase a home and take advantage of the Extended Home Buyer Tax Credit. Here’s what you have to do to get your benefit:
Close on your home purchase between November 7, 2009 and April 30, 2010, or have a binding written contract in place by April 30, 2010 with a closing date no later than June 30, 2010.
Decide whether to:  apply the credit to your 2009 tax return, filed on or before April 15, 2010;  file an amended 2009 return; or,  apply the credit on your 2010 return, filed on or before April 15, 2011.
Homeowners filing for the home buyer tax credit are not allowed to use electronic filing and must file hard copies due to special documentation requirements.

Mortgage Rates Inch Up

      In Freddie Mac\\\’s results of its Primary Mortgage Market Survey the 30-year fixed-rate mortgage averaged 4.99 percent for the week ending March 25, 2010 – up from the previous week when it averaged 4.96 percent. Last year at this time, the 30-year fixed-rate mortgage averaged 4.85 percent.

    \\\”Mortgage rates inched up slightly this week as bond yields rose even further,\\\” said Frank Nothaft, Freddie Mac vice president and chief.

Real Estate Outlook:
Steady Growth Expected
    Harsh weather conditions held back home sales in February — leading to some renewed gloominess by Wall Street analysts.
     But several new economic reports, including on employment, suggest that during the coming several months we’re likely to see steady but unspectacular national economic growth, and some pretty good housing rebound numbers.
     Even the February home sales numbers were nowhere near as negative as you might expect under the circumstances.
     Existing home sales were down slightly for the month – by six tenths of a percent – but were still clicking along at more than 5 million on an annualized basis.
     New home sales were harder hit – down by 2.2 percent for the month. But median prices on new homes sold for the month jumped by six percent over January and were up five percent year over year, according to the Commerce Department.
     A new study by economists at the Federal Deposit Insurance Corp (or FDIC) also provides a positive take on where we’re headed.
     The United States housing market, according to the FDIC, is showing “tangible signs of improvement”.
     Affordability – which is obviously a crucial factor in whether households can buy or not – is at “historic high levels,” says the report.

Equal Housing Opportunity

Bonnie Fagoh 813-390-7606 bonniefagoh@gmail.com http://www.TampaCoastalHomes.com

Century 21 Beggins Enterprises 813-658-1344 6542 U. S. Hwy. 41 N. Apollo Beach, FL 33572

Bonnie Fagoh is a 40 year resident of Tampa Bay. Bonnie is married to Mark Fagoh and together Mark and Bonnie have 3 lovely children. Bonnie is the owner of www.TampaCoastalHomes.com and is a local Apollo Beach #1 Expert for Century 21 Beggins. During the most challenging years ever recorded 2008 and 2009 Bonnie Fagoh earned the coveted “Masters” awards she can be reached at 813 390-7606

MBA proposes forbearance program

The Mortgage Bankers Association (MBA) says it has developed a concept for a new forbearance program that would allow qualified borrowers who had lost their jobs to remain in their homes while they seek new employment.  According to the proposed program, loan servicers would reduce the borrower’s mortgage payment to an affordable amount for up to nine months while the homeowner looked for employment.  “The vast majority of new distressed borrowers we are seeing involve the loss of income,” said John A. Courson, MBA’s President and CEO.  “This program is designed to buy those borrowers time to find a new job, after which they could hopefully qualify for a loan modification.” Loan servicers who participate in this program would reduce monthly payments to an affordable level based on household income, and borrowers would be initially evaluated for the forbearance program using a model that assumes the borrower will be reemployed within nine months of losing his or her job at 75 percent of the borrower’s previous salary.  The borrower would be reevaluated as to employment and income status every three months for a total forbearance of nine months.   Once reemployed, the borrower would be evaluated for a modification under the Obama Administration’s Home Affordable Modification Program (HAMP). “Recent statistics show that the average unemployed U.S. worker stays unemployed for between six and seven months,” added Courson.  “That is a long time for a borrower with a dramatic drop in income to stay current on their mortgage.  Further, borrowers with such a precipitous drop in income can’t qualify for most loan modification programs, so we are looking for ways to allow those borrowers to keep their homes while they look for another job.”

Mortgage rates to rise?

The Fed has been buying mortgage-backed securities since late 2008. But next month it plans to finish its purchase of $1.25 trillion in mortgages, and that could be bad news. There is wide agreement that the removal of this support will mean higher mortgage rates, which could hit housing prices and sales hard. Some even worry that it could cause the broader economic recovery to stall.  The program was the largest single injection of cash into the economy by the Fed during the financial crisis, and it will be the longest-lasting source of funds as well. Even though the Fed intends to stop buying mortgages, few people expect that the central bank will start selling them to private investors any time in the next few years.  even if the Fed holds onto the mortgages it has already purchased, the act of no longer buying additional mortgages is likely to raise mortgage rates in the coming weeks.

Experts say a jump of at least a quarter to a half percentage point is likely.  San Francisco Federal Reserve President Janet Yellen warned of higher rates in a speech Monday.  Fed Chairman Ben Bernanke is likely to take questions about the Fed’s mortgage program when he testifies about economic conditions on Capitol Hill Wednesday and Thursday.  The worries about the Fed pulling back support for housing are compounded by the end of up to $8,000 in tax credits for home buyers. To qualify, buyers face an April 30 deadline to sign a sales contract.  Dean Baker, co-director of the Center for Economic and Policy Research, argues that the Fed’s program and tax credit for home buyers “ended the free fall in home prices.”  But he thinks that the removal of this support could mean that home prices could start to drop by as much as 1% a month again. He also thinks mortgage rates could climb by as much as a percentage point in the coming months.

Fed raises discount rate

The Federal Reserve said yesterday it is raising the rate it charges banks that borrow from the central bank when they run short of funds by a quarter percentage point, or 25 basis points, to 0.75%. The central bank said in a statement it made the move in response to improving financial market conditions.  Don’t everyone panic here, because the move is largely symbolic – banks do little borrowing at the discount window and the discount rate has no effect on the more widely watched federal funds rate, which measures the rate banks charge each other for overnight loans. That rate is expected to remain between 0% and 0.25% for the foreseeable future, given the slack in the labor market and the still fragile state of the economy.  But raising the discount rate allows Federal Reserve chairman Ben Bernanke to take another small step toward normal monetary policy, after the past two last years of  financial firefight.  The Fed also shortened the term of some discount window loans and raised the minimum bid in the term auction facilities it uses to supply overnight funds to banks. The central bank said Thursday’s increase should “encourage depository institutions to rely on private funding markets for short-term credit and to use the Federal Reserve’s primary credit facility only as a backup source of funds” and added that it will “assess over time whether further increases in the spread are appropriate.”  It added: “The modifications are not expected to lead to tighter financial conditions for households and businesses and do not signal any change in the outlook for the economy or for monetary policy.”

Fed raises discount rate

The Federal Reserve said yesterday it is raising the rate it charges banks that borrow from the central bank when they run short of funds by a quarter percentage point, or 25 basis points, to 0.75%. The central bank said in a statement it made the move in response to improving financial market conditions.  Don’t everyone panic here, because the move is largely symbolic – banks do little borrowing at the discount window and the discount rate has no effect on the more widely watched federal funds rate, which measures the rate banks charge each other for overnight loans. That rate is expected to remain between 0% and 0.25% for the foreseeable future, given the slack in the labor market and the still fragile state of the economy.  But raising the discount rate allows Federal Reserve chairman Ben Bernanke to take another small step toward normal monetary policy, after the past two last years of  financial firefight.  The Fed also shortened the term of some discount window loans and raised the minimum bid in the term auction facilities it uses to supply overnight funds to banks. The central bank said Thursday’s increase should “encourage depository institutions to rely on private funding markets for short-term credit and to use the Federal Reserve’s primary credit facility only as a backup source of funds” and added that it will “assess over time whether further increases in the spread are appropriate.”  It added: “The modifications are not expected to lead to tighter financial conditions for households and businesses and do not signal any change in the outlook for the economy or for monetary policy.”

House prices up for the month, down for the year

S&P/Case-Shiller composite index of house prices in 20 metropolitan areas rose 1.6 percent in July from June — more than triple the estimate of a 0.5 percent rise found in a recent Reuters poll.  The monthly price increases helped the annual rates, with the yearly pace of declines in home prices slowing to a 12.8% drop in the 10-city index and 13.3% downturn in the 20-city index.  “These figures continue to support an indication of stabilization in national real estate values, but we do need to be cautious in coming months to assess whether the housing market will weather the expiration of the Federal First-Time Buyer’s Tax Credit in November, anticipated higher unemployment rates and a possible increase in foreclosures,” said David Blitzer, chairman of the index committee at S&P.  Despite the overall improvement, annual rates for all metro areas and the two composites remain in negative territory, with 14 of the 20 metro areas and both composites in double digits, S&P said.

Tax credit lures nearly half of all first-time buyers

According to a survey conducted by Harris Interactive on behalf of Zillow.com, 18% of prospective first-time homebuyers said extending the credit from Dec. 1, 2009 to Nov. 30, 2010 would be the “primary influence” in their decision to purchase a home.  An additional 25% said it would be a “significant influence,” 27% said it would have “some influence,” and 31% said it would have “no influence.”  Zillow projects 1.86m homebuyers stand to take advantage of the program if it is extended, and if all potential buyers took the full tax credit, extending the program could cost $14.86bn.  Zillow.com chief economist Stan Humphries said of all homebuyers expected under the 12-month extension through 2010, only one in five homebuyers will enter the market specifically because of the extended tax credit.  In other words, 334,000 mortgages will open because of the tax credit extension.  “While 334,000 may seem like a small number relative to the total number of homebuyers who would claim the credit, their addition to the market next year could make the difference between a robust annual increase in home sales next year and a flat or negative change in home sales relative to this year,” Humphries said.

Tampa Coastal
Tampa Coastal Homes

Enjoy Bella Sol Luxury Villas at Apollo Beach on Tampa Bay In Florida Call me to arrange your no obligation Free Boat Tour of the Area with world class sunsets, fishing and year round sports.

As a testament to the fantastic waterfront coastal living at Bella Sol Luxury Villas, Despite global market conditions, savvy customers have voted with their hard $$ Dollars in 2009 making this Realtor top 10 in the region out of 4,000 agents from Tampa, Orlando to the Georgia State line Thank you!

As the first 30 days of the new decade have come to close sales at lovely Bella Sol Luxury Villas continue with 2 going to contract. If there is Ever an indication right now is the time! I only have 5 Waterfront units left states Bonnie Fagoh. The developer is taking bids to complete the 2 off water units.

For those who don’t feel BellaSol is a perfect fit, there are many other areas with desirable condos, townhomes and single family homes from which to choose in the Tampa Bay and surrounding areas. One of my clients wanted to be closer to the beach, so I helped them find a home just 10 minutes from the gulf for under $200k!

Buy BellaSol as your retirement home, vacation home, or just to enjoy maintenance free living! You will have more time to enjoy the water while someone else takes care of the lawn, pool, and all exterior maintenance!

For those needing to sell, please call me to go over your options. We have a system that works for those who need to do a short sale and we can offer a FREE consultation with a lawyer so you can find out what is best for you so you can make an informed decision.So to sum it up….great inventory, low prices, low interest rates, and fantastic weather make it the best time to BUY Florida Real Estate!!

Call Bonnie at (813) 390-7606 and schedule your complimentary boat tour of the Apollo Beach area. Come see why the dolphin and manatee love it here! Experience the waterfront lifestyle in this laid back community that is only a short 20 minute boat or car ride to the city of Tampa or 30 minutes to St Petersburg. Find out why the Tampa Sailing Squadron keeps their boats right here in Apollo Beach! We have a great central location with easy access to the Gulf of Mexico, Sarasota, Fantastic Pro-Golf, NFL Football, Even Pro Hockey and Baseball!! Yes you can have it all only 76 miles from Walt Disney World in Orlando and the Space Coast!

Buy BellaSol as your retirement home, vacation home, or just to enjoy maintenance free living! You will have more time to enjoy the water while someone else takes care of the lawn, pool, and all exterior maintenance!

Search all Tampa Bay properties at www.TampaCoastalHomes.com or better yet,
call me for a FREE boat tour! Bonnie (813) 390-7606

ZIP Code: 33572 Location Characteristics: Apollo Beach is a growing community centrally located between Tampa (20 min), Sarasota (30 min) and St Petersburg (20 min). There are 55 MILES of canals leading to Tampa Bay for those of you who enjoy water sports. Southshore Commons, a major “open air” mall is planned for 2011 with shopping, restaurants, movie theatre and office buildings.

Bonnie Fagoh
Tampa Coastal Homes

I’m thinking about getting my real estate license and working for a a r.e. company in Tampa, but don’t want to get it at the wrong time.

There is never a bad time to get in especially if you have another income to fall back on. I would suggest getting in during a down time. I started during a down market and I had to learn how to find clients during a slow time. It also gave me an opportunity to learn a lot of other things so that when the market did pick up I was ready and had the tools I needed to serve my clients. I started part time and now I do this full time. In my area it takes 3 months to get your license but you might not see your first earning for 3-5 months after that. The first year is the toughest so do it now and get ready for when the market turns! GOOD LUCK!

I just recently started up on getting my real estate lisence in florida and was wondering what your predictions where on the housing marketing. Some believe it will go back up after the elections? If you’re an economist, please express yourself! I would like to know when it would be best to activate my license.

I am not an economist but i am a Realtor in Southwest Florida (Cape Coral, Fort Myers) since 15 years. Yes the Real Estate Market goes in cycles, it always did. But i disagree with some people, stating that the market will need a long time to recover. I think the market in our area will recover sooner than a lot of people think. Population grows, Florida is a great place to live and work. We already see improvment in our local market. We have more homes sold than we have new homes coming on the market. We see Buyers and Investors coming back, realizing that it is a Buyers market and they better take advantage of it. And talking to local lenders, they are coming up with fair 100% financing programs because they see as well, that very soon home prices will increase the the properties will have plenty of equity.
Regarding you activating your lic. in Florida, i would do so now, get your base covered, get established in a company, build your client database, get ready.
What i don’t understand – why don’t you want to be a Realtor in a buyer’s market? It is a little bit more work but your buyers will be so thankful if you can find them the "good" deal they are looking for.