Housing Inventory Drying Up!

An interesting thing is happening in the Tampa Bay real estate market. Have you tried to put a contract out on a house that is unbelievably priced only to find that there are already several offers on the table? If so, you are not alone. Housing inventory is drying up. The drastic dip in supply is due to several factors. With fewer foreclosures, bargain basement prices on homes for sale, and incredible tax incentives being offered, investors and first-time home buyers are gobbling up Tampa housing inventory. Current demand has definitely reduced available housing supply.

The National Association of Home Builders article Slow Recovery May Be Leading to Serious Housing Shortages addresses this saying “NAHB economists project that the industry will need to deliver 16 million homes over the next 10 years to keep pace with the demand. As the excess inventory is worked off, which is likely by the end of 2012, the long-run demand for new housing – based on population growth, immigration and the replacement of losses from the housing stock – will average approximately 1.5 million single-family and 300,000 multifamily units annually, or about 1.8 to 1.9 million starts.”

No matter what the media may say or do, the dream of homeownership is alive and well in Tampa, Florida. Don’t be fooled by thinking that nothing is happening in the real estate market! Homes are receiving multiple offers and true transactions are taking place every day. Investors, first-time home buyers and move-up/repeat home buyers are abundant, and they are taking advantage of this unprecedented real estate market. Maybe you should think about your real estate goals and options.

Fewer People Behind on Home Loans

Experts tell us, the end of the foreclosure crisis is finally in sight. This is good news indeed for the real estate market in Tampa, Florida. “Housing is on a path to recovery,” said Mike Larson, a real estate analyst with Weiss Research in a FloridaRealtors.org News and Events article titled Fewer People Behind on Home Loans. Jay Brinkmann, the trade group’s chief economist added the figures probably mark “the beginning of the end” of the crisis.

In an effort to bring some relief to homeowners who are experiencing problems with their mortgage payments, the Obama administration’s $75 billion mortgage-relief effort is underway. All borrowers who are experiencing problems with their mortgages may not qualify for help under this plan, but it is a big step in the right direction for many homeowners.

In addition to the $75 billion mortgage-relief effort which lowers payments and extends mortgage loan terms, President Obama has also stated that Arizona, California, Florida, Michigan and Nevada will receive $1.5 billion in financial rescue money as these states have been hit extremely hard in this foreclosure crisis. This money “will go to local programs to help unemployed homeowners, under water borrowers who owe more than their home is worth, or to give lenders incentives to assist borrowers with second mortgages. The programs will need to be approved by the Treasury Department.”

Combine the fact that the number of homeowners falling behind on their loans is declining for the first time in three years, the $75 billion mortgage-relief effort is underway, and the Obama administration has implemented $1.5 billion in rescue money to hardest-hit states for relief programs and there starts to be some light at the end of the tunnel for this foreclosure crisis. There is no doubt that It will still take time for the real estate market to continue on its path to full recovery, but many of the indicators are that the real estate market is stabilizing. This is evidenced by the amount of activity and true transactions that SI Real Estate has handled in the Tampa Bay area since mid-2009.

Mortgage Rates Hover Near Record Lows

Great news for those wish to buy a home or sell your real estate in Tampa, Florida! Mortgage rates are hovering at near record lows. Freddie Mac performed a Primary Mortgage Market Survey® and the results show that 30-year fixed-rate mortgage (FRM) averaged 4.93 percent. The 15-year FRM averaged 4.33 percent, and the 1-year Treasury –indexed adjustable rate mortgage (ARM) averaged 4.23 percent. What does that mean in the big scheme of things for the real estate market? It means buyers have the ability to obtain financing at near historically low rates. It is also good news for sellers as buyers have more reasons to get off the fence and purchase that home they have been dreaming of but thought they could not afford. It’s a win-win for buyers and sellers. We have heard for months that the time to buy is now! It could also mean the time to list or sell your home is also now. Buyers are abundant.

RealtyTimes® article Mortgage Rates Hover Near Record Lows adds “The National Association of Realtors® (NAR) reported that existing home sales rose in 48 states and the District of Columbia between the third and fourth quarters of 2009; 32 states experienced double-digit growth. In addition, 67 metropolitan areas saw positive annual house price growth in the fourth quarter, more than double that in the third quarter, according to the NAR.”

Record low mortgage rates, positive house price growth, and first-time home buyer and move-up/repeat home buyer tax credits combined make this a unique time in the real estate market. Opportunities exist for everyone to benefit in Tampa, Florida and around the country. Call your real estate professional and find out how you can make the most of these extraordinary opportunities.

What is Really Happening on Wall Street and The Back End Deals That Are Being Made

This is a must see video.  Please share with your real estate and financial partners. http://www.thinkbigworksmall.com/mypage/player/tbws/23088/1559063

Move-Up/Repeat Home Buyers in Tampa, Florida Can Benefit from Home Buyer Tax Credits

Don’t Miss the Boat!

Part 2 of a 2-Part Series

Are you a home owner in Tampa Bay, Florida and wish to move up to a larger home or even downsize? Are you uncertain whether you are financially able to make that move in today’s real estate market? Well, think again. Many people are unaware that tax credits are now available for existing and repeat home buyers. Time is of the essence. Time is ticking on this soon-to-expire opportunity!

With historically low interest rates, an abundance of aggressively priced homes listed for sale, and the home buyer tax credit being offered, nobody is excluded in today’s real estate market. Everyone is included.

Who is eligible for the $6,500 tax credit? U.S. citizens or those with permanent resident status who have owned and lived in the same home for at least 5 consecutive years of the 8 years prior to purchasing are eligible for this tax credit.

What are the income limits for this tax credit? Single taxpayers can earn up to $125,000, and married taxpayers filing a joint return can earn up to $225,000. Taxpayers who exceed these limits will receive a reduced amount of credit and limits are based on a modified adjusted gross income (MAGI).

What types of homes qualify? The purchase price of the home cannot be more than $800,000 and it must be the principal residence of the home buyer(s).

Questions? Contact a real estate professional to answer any questions you may have.

Time is truly running out as binding sales contracts must be signed by April 30, 2010 and the deal must be closed by June 30, 2010. Real estate tax credits like this do not come along often, and there is nothing to indicate that an extension of this tax credit will occur. Take action now to purchase that home and make your real estate dreams become a reality.

Move-Up/Repeat Home Buyers in Tampa, Florida Can Benefit from Home Buyer Tax Credits

Don’t Miss the Boat!

Part 1 of a 2-Part Series

For the past six months, there has been a wealth of information and press about the 2009 First-Time Home Buyer Tax Credit, but there has not been as much talk about the fact that move-up home buyers can also benefit from the Worker, Homeownership, and Business Assistance Act of 2009. Who are move-up home buyers and how can they benefit from this tax credit by purchasing a home right here in Tampa, Florida? All real estate buyers should benefit in the first quarter of 2010.

According to the National Association of Home Builders Home Buyer Tax Credits, “The law defines a tax credit qualified move-up home buyer (“long-time resident”) as a person who has owned and resided in the same home for at least five years of the eight years prior to the purchase date. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. That is, both spouses must qualify as long-time residents, with at least five years of principal residency for each. Repeat home buyers do not have to purchase a home that is more expensive that their previous home to qualify for the tax credit.”

There are many factors involved with this tax credit such as how the amount of the tax credit is determined, income limits of taxpayers, partial tax credit, claiming the tax credit, and types of homes that qualify. Those who do not fully understand this program are encouraged to consult a qualified tax advisor or legal professional to discuss their unique situations.

This is an incredible opportunity for those who have owned a home, and now wish to purchase another to enjoy the financial advantages of a tax credit while doing so. Don’t miss the boat! Real estate opportunities like this don’t come around often and do not last long.

Buyers in Tampa, Florida - More Reasons to Buy Your Home Now

Just the FHA Facts

The federal government’s decision to extend the 2009 Homebuyer Tax Credit is strong incentive for first-time homebuyers and move-up homebuyers to get off the fence and purchase a home. If that were not enough, new Federal Housing Administration (FHA) policy changes may push those who have been waiting to take the leap to make that real estate purchase sooner rather than later in Tampa, Florida and around the nation.

FHA is one of the largest sources of financing with its low down payment program and generous seller concessions. FHA is often the only way for many to afford to purchase a home. It is a well-known fact that many are able to afford monthly housing payments, but coming up with the down payment is extremely difficult for a large majority of those who wish to purchase a home. Bearing that in mind, FHA is taking new measures to help manage risk while maintaining support for the housing market and its recovery.

In a HUD Press Release on January 20, 2010 FHA Announces Policy Changes to Address Risk and Strengthen Finances, FHA’s Commissioner David Stevens announced policy changes. “Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important,” said Commissioner Stevens. “When combined with the risk management measures announced in September of last year, these changes are among the most significant steps to address risk in the agency’s history. Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market’s recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities.”

Policy changes will be made to mortgage insurance premiums. The premiums will increase from 1.75% to 2.25% and this will go into effect in the spring. Also addressed are FICO scores and corresponding minimum down payment amounts. New borrowers will be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. Those borrowers with scores lower than 580 will be required to put at least 10% down, allowing FHA to better balance its risk. Additionally, seller concessions will be reduced from 6% to 3%. Down payment and seller concession changes are expected to go into effect in the early summer. Increased enforcement on FHA lenders is also slated in an effort to make information more user-friendly and hold lenders more accountable.

What do these changes mean to potential homebuyers in Tampa, Florida and the real estate market in general? These changes will have the result of increased fees and tighter qualification guidelines. That being said, buyers who have been on the fence waiting to see how low the real estate market will go should understand how these policy changes will affect them and take action to purchase their homes prior to these new policy changes taking effect.

FHA Has Lifted the 90-Day Seasoning Requirement!

The Tampa housing market has been hit hard with a glut of foreclosed properties that have forced home prices to spiral downward, along with most areas in Florida and the rest of the nation. HUD Secretary Shaun Donovan has announced a temporary policy to ease FHA 90-day seasoning guidelines to facilitate the sale of foreclosed properties, which should bring price stabilization to the real estate market in Tampa, Florida and other areas across the country.

FHA has prohibited insuring mortgages on a home owned by a seller for less than 90 days. This has slowed the sale of many foreclosed homes. In the January 15, 2010 press release HUD Takes Action to Speed Resale of Foreclosed Properties to New Owners , HUD Secretary Shaun Donovan addressed this problem saying, “As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers. FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization.” FHA Commissioner David H. Stevens added, “FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties. This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity." The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner.

The lifting of the 90-day seasoning requirement by FHA will not only help first-time homebuyers and move-up real estate purchasers, but also investors who have purchased homes and have been unable to sell them in a timely and cost-effective manner. The press release stated, “In today’s market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.” Investors as well as purchasers stand to benefit directly from this policy made by FHA.

Ultimately the bottom line should be more home sales at a faster pace, reducing the inventory of all real estate including foreclosed properties and bringing some long awaited stabilization to the Tampa, Florida real estate market.

First-Time Home Buyers Dominate Tampa Real Estate Market

First-time home buyers dominated the Tampa real estate market in 2009 and that trend is expected to continue into the first quarter of 2010. The 2009 First Time Home Buyer tax credit has been extended so that those with a binding contract on or before April 30, 2010, and closing before June 30, 2010, will be able to take advantage of this fantastic opportunity. That combined with fire sale real estate prices will create a second wave of first-time home buyers eager to take advantage of the benefits of homeownership. It will be forthcoming first quarter 2010 according to real estate market forecasts.

Paul Bishop, vice president of research of the National Association of Realtors stated in an article titled NAR Survey First-Time Home Buyers Set Record in Past Year that “several factors have been at play. Tax incentives, record high affordability conditions and pent-up demand brought a record share of first-time home buyers into the market. These buyers are critical to housing and a general economic recovery because the market always heals from the bottom up – they absorb inventory, free existing owners to make a trade and stimulate related goods and services.”

SI Real Estate forecasts that this is the calm before the storm. Just as home buyers rushed to take advantage of the tax credit prior to November of 2009, indications are that real estate sales will increase markedly once again, helping lead the way to recovery of the real estate market.

Florida Real Estate Market – Condo Updates

Fannie Mae Relaxes Florida Condo Standards

There was considerable movement for certain sectors of the real estate market in 2009. Thanks to the 2009 Home Buyer Tax Credit, many first-time homebuyers were able to purchase properties and enter the arena of homeownership. Additionally, international, national and local investors were able to take advantage of record low prices that were caused by the foreclosure crisis. Condo sales were one segment of the real estate market that was largely left out due to difficulties with obtaining financing. Due to strict mortgage standards, condos were available primarily to only those who were cash buyers.

According to the Palm Beach Post Money article, “Fannie Mae is seeking to prop up Florida’s ravaged real estate market by reviewing hundreds of condo projects in the state that don’t qualify for its loans. The mortgage finance company said Thursday that buildings deemed stable after the review will be given a special approval lasting up to 18 months. If they are approved, lenders will be allowed to offer mortgages to homebuyers and sell those loans to Fannie Mae, which pools them into bonds and sells them to investors.” Karen Pallotta, executive vice president of the company’s single family mortgage business stated that the initiative “is geared toward providing maximum support for Florida’s distressed condo market.”

The article continues saying, “Under nationwide regulations enacted in March, Fannie Mae has been rejecting any mortgage for a condo buyer if more than 15 percent of a development’s other owners are delinquent on their association fees. Fannie Mae has been willing to make exceptions to that rule, but now it is actively seeking out applications for exceptions.” This easing of financing restrictions will create opportunities for those who wish to purchase a condo to do so. Many people seeking the maintenance-free, amenity-rich lifestyle will be able to secure the financing they need, setting the stage for a boon to condo sales in Florida in 2010.