10 Cities Where List Prices Soared Last Month

Now is a good time to buy real estate, according to data from Moody’s Analytics. Home affordability has returned to pre-housing bubble levels or even fallen below the average in many U.S. markets. In fact, housing affordability by the end of September had returned to or fallen below the average reached between 1989-2003 in 47 of the 74 housing markets that Moody Analytics tracked. In September 2010, the ratio of home prices to annual household income had fallen to 1.6–below the historical average of 1.9 between 1989 and 2003. The ratio peaked in 2005 at 2.3. “Based on incomes, this is as affordable as it gets,” says Mark Zandi, chief economist at Moody’s Analytics. “If you can get a loan, these are pretty good times to buy.” Some of the most undervalued markets include Cleveland, Detroit, Las Vegas, Atlanta, and Phoenix. But those cities also are facing high rates of foreclosures and more borrowers defaulting on their mortgages that could decrease values further in those cities before they start to improve, Zandi says. In Phoenix, for example, “it’s become cheaper to buy than to rent,” Jon Mirmelli, a real estate investor in Scottsdale, Ariz., who rents out foreclosed homes, told The Wall Street Journal. “But the question is: can you qualify for a loan?”

Source: “Home Affordability Returns to Pre-Bubble Levels,” The Wall Street Journal Online (Feb. 8, 2011)

If you want to know what’s going on in the Tampa Bay market, check out www.TheTruthAboutYourHome.com. Free information with photos, live data and updates monthly.

While FEMA is only about two-thirds of the way through the project nationwide, some home owners are already finding out that their property’s boundaries are now being designated as flood zones. The redrawn floodplains are leading some home owners to have to buy costly flood insurance, which can equate to hundreds or even thousands of dollars annually.

Home owner Amy Marren says she was surprised when she recently received notice from her lender that she needed flood insurance for her home in Wayne, Pa. She now has to pay a $2,400 annual policy, after an insurance agent told her the house was zoned like it were a “beach house.”

“It’s an emotional issue,” says David Bollinger, a hazard-mitigation specialist in FEMA’s Philadelphia region. “People are upset with us at times.”

To find flood maps and other information from FEMA, visit www.fema.gov.

Source: “Remapping of Floodplains Costly for Some Homeowners,” The Philadelphia Inquirer (Feb. 6, 2011)

I previously lived in the Philadelphia region (West Chester) for 22 years growing up. My parents have flood on their home in WC and live on a hill. With these new maps, our neighbors may have to pay higher insurance because of where they end up elevation wise to a very small creek at the bottom of our development. I currently live in the highest part of the beaches in Clearwater/St. Pete, about 55 feet above sea level. So my flood insurance is $395/year. There are homeowners paying several thousand for living on the water/beach.

I am disturbed how landlocked areas are being raked over the coals especially in landlocked states! Unfortunately FEMA is the only insurer of flood policies. A complete monopoly. Even more disturbing.

To obtain a flood policy, they verify your location on a map and need an elevation certificate. The cost of paying someone to survey your home for elevation can cost several hundred dollars. Speak to your insurance agent about money saving techniques on your insurance but don’t skip on the coverage! If you would like to save hundreds on homeowners and flood or would like to request a quote, I can refer you to a local agent I work with and trust who has saved my clients hundreds of dollars, and sometimes thousands of dollars with new policies or mitigation programs that add bonus points in lowering your costs.

Rebecca Paone

Keller Williams Gulfside Realty

rebeccatherealtor@live.com

727-216-9253

www.RebeccaTheRealtor.net

Jobs in some industries might have flatlined in the current economy, but employment at Florida hospitals is proving to be recession-proof. A University of Florida economic impact study released recently shows that the state’s hospitals added about 10,000 employees between 2007 and 2009. Florida hospitals are responsible for creating 739,078 jobs and generate $54 billion in total economic contributions, according to the study commissioned by the Florida Hospital Association and released last week. That translates to a 12 percent increase in full- and part-time employment, according to the study commissioned by the Florida Hospital Association. Hospitals are the second-largest segment of the health-care industry in Florida, behind physicians, dentists and other health-care practitioners. [Source: Gainesville Sun]

If you are looking for a move to the sunshine state, don’t hesitate to find out great rentals or homes to buy! Email me at RebeccaTheRealtor@live.com.

Rebecca Paone

Keller Williams Gulfside Realty

www.RebeccaTheRealtor.net

Shea and Michelle Carlin recently had their eye on a two-story home with an expansive balcony outside Brooksville. As is often the case with foreclosures, the prior owners pilfered the entire kitchen and all the light fixtures. The Carlins couldn’t afford the $46,000 in repairs, and banks wouldn’t lend them the money to buy the house until the repairs were completed — a catch-22 common in the foreclosure market. Their dream home could have slipped away. Then they heard from their Realtor about a government program that would allow them to buy the house without needing bundles of money in advance. It let them roll the repairs into their total mortgage. The little known and once seldom used program backed by the Federal Housing Administration has caught fire as of late. In 2006, just two people used the program to buy property in the Tampa Bay area. Last year, the number jumped to 135. Nationally, the numbers increased nearly 700 percent. [Source: St. Petersburg Times]

FHA 203K is the program. It’s considered a construction loan on top of your original FHA mortgage. You can only get a 203K loan on an FHA mortgage (Sorry VA). Traditionally, the interest rates can be about .5% higher, but can be refinanced upon lender qualifications down the road.

So why don’t many people take 203K or ask for it? Well, the process takes a little bit longer for closing. There is additional underwriting guidelines that must be met. Such as, an estimate of repairs costs by a licensed contractor  must be submitted. Also, the amount of the loan plus repair costs must equal or less than what the projected appraised value will be. So example above with the kitchen, say the home was purchased for $100,000, the loan amount is $96,500 (3.5% down). Repair costs equals $12,000. The home must appraise at or above $108,500. The biggest issue is with short sales. When the seller’s lender approves the short sale, closing is usually expedited to 30 days or less. A 203K process can take 45 – 60 days. Sometimes the seller’s lender will not budge on the closing date.

In this economy, many homes are being appraised at sales price. Most modifcations will not net you more money in a declining market. So its a little harder to find the great buy, easy/moderate fixer, and get FHA 203K but IT IS POSSIBLE! I have several lenders I work with that specialize in 203K loans.

If you would like to purchase a home, get more information on FHA 203K or find out more information about buying a home, please email me for a Homebuyer Brochure that I can email or mail to you. Email me at RebeccaTheRealtor@live.com or call my office at 727-216-9253.

Rebecca Paone

Keller Williams Gulfside Realty

www.RebeccaTheRealtor.net

Movie Gallery, the parent company of the video rental stores and once the second-largest video rental chain, went bankrupt last year, and the debt collection agency National Credit Solutions is now trying to collect from its past customers. National Credit Solutions filed negative credit reports without informing the customers and did not give customers the opportunity to dispute the fees, according to a lawsuit filed by Montana’s Department of Justice on behalf of the customers.

National Credit Solutions is also accused of charging the customers penalty late fees–more than $300 in some cases–on top of what they already owed.

The black marks on the customers’ credit reports are preventing some from getting loans or refinancing a mortgage. But some customers say they are being charged for failing to return a movie even when they had.

Movie Gallery is trying to collect from 12,325 customers from Montana. It’s unclear whether customers outside of Montana had been affected, too.

“It’s crazy to think that a Montanan would be prevented from refinancing their house or buying a new car simply because they returned ‘Caddyshack’ two days late,” State Attorney General Steve Bullock said in a statement.

As a realtor, it can sound overly critical. But as a risk assessor in a bank, I can understand. There are some other small “debts” that can affect your lending abilities. If you are interested in the qualifiers for obtaining a loan, I can email you what you will need to prepare and be mindful of when thinking of what you can afford. Email me at RebeccaTheRealtor@Live.com.

“By mid 2011 and certainly by end of 2011, buying will be superior to renting in most parts of the country,” Zandi says.

Home prices are expected to fall further, making more homes affordable, whereas rent prices are expected to continue to rise this year.

The following are a few of the top cities where it makes more sense to buy than rent, according to Moody data. (Experts often recommend buying when the price-rent ratio is below 15 and rent when it’s above 20.)

▪ Cleveland: 11.43
▪ Pittsburgh, Pa.: 11.71
▪ Detroit: 12.32
▪ Phoenix: 12.35
▪ Atlanta: 12.82
▪ Tampa, Fla.: 13.08
▪ Orlando, Fla.: 13.1
▪ Cincinnati: 13.74
▪ Las Vegas: 13.89

Source: “Rent vs. Own Ratio to Flip in 2011?” Fortune (Jan. 4, 2011)

Call me, Rebecca The Realtor, today for a free, no obligation consultation on home buying. Selling all of Tampa Bay (Pinellas, Pasco and Hillsborough Counties)
727-216-9253, RebeccaTheRealtor@live.com, www.RebeccaTheRealtor.net

NEW YORK – Jan. 6, 2011 – Home prices are falling across the country, but many homeowners are paying more to insure their homes. So why is insurance going up when a home’s value is going down?

“The price of homeowners’ insurance is based on the cost to repair or rebuild your home. The price of a home is based on the market value of that home and the land upon which it sits,” Robert Hartwig, president of the Insurance Information Institute, told MSNBC.

But the cost of labor and materials needed to rebuild a home has not necessarily gone down, even though the home’s price has, Hartwig said.

The premium for homeowners’ insurance rose nearly 62 percent between 2000 and 2007. Prices did dip by nearly 4 percent in 2008 to $791, according to the most recent data from the National Association of Insurance Commissioners. However, Hartwig attributes the dip to homeowners dropping extra coverage options or increasing their minimum deductible.

The cost to rebuild a home actually could be more than what you could sell it for, and insurance usually has to cover how much is owed on a person’s mortgage, even if it’s more than the current value of the home, experts say.

In certain regions of the country, homeowners may find they’re paying even more to insure their homes. For example, Louisiana and other places hit by hurricanes or other weather related disasters have seen increases in average premiums. Florida, Texas, and Louisiana are the most expensive states to buy homeowners’ insurance.

Source: “Home Prices is Down, so Why Not Insurance?“ MSNBC (Jan. 3, 2011)

© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688

As a homeowner, or potential homeowner, you should scruitinize the policy you have. Worse thing to do is under insure your home. A rule of thumb is putting your deductibles at an affordable level to you. Then keep a savings aside to cover that amount as an emergency fund. Dave Ramsey talks about insurance in his Financial Peace University class. If you are interested in hearing what Dave has to say about you, your money and how to build weath the good ol’ fashion way, ask me about sending you his introduction cd. I currently work with 3 insurance agents and always get quotes from each getting apple to apples for comparisons. If you want to get a quote on a policy from one of my insurance agents that I know and trust, call me.

And as always, if you are looking to buy, sell or invest in real estate call me for a FREE NO OBLIGATION appointment.

Rebecca Paone

727-216-9253

Keller Williams Gulfside Realty

www.RebeccaTheRealtor.net

Selling Florida’s Gulfcoast Beaches and Tampa Bay

Florida’s unemployment rate rose to 12 percent in November, the highest level since April and just shy of the 12.3 percent record set earlier this year. The rate released Friday by the Florida Agency for Workforce Innovation (AWI), which is up from 11.9 percent in October, reflects more than 1.1 million jobless out of a labor force of 9.2 million. Employer surveys shows job creation statewide was flat for the month, with an increase of just 300 jobs, or about 0.1 percent. “The November unemployment rate reflects the challenges our state is facing as we slowly emerge from the national recession,” AWI Director Cynthia R. Lorenzo said in a statement. “Knowing that this is an uncertain time for many Florida families, our agency has been closely monitoring the discussion in Congress on an additional extension of federally funded unemployment benefits.” [Source: St. Petersburg Times]

As the Florida local economy is in a ebb and flow of job loss and small gains, my clientel on the buyers end has shifted. I would say about 65% of my buyers in the Pinellas County Market are foreign nationals or domestic 2nd vacation home investments. Most of my local buyers are resorting back to renewing their leases or staying tight in a home underwater. The job economy has resorted to a balanced real estate market. There are enough product out there for the amount of buyers out there. Current days on market before a home is sold in Pinellas County is 184 days. In real estate a balanced market is between 120 days – 240 days (4-8 months). A sellers market which occured in 2004-2007, average days on market was less than 90 days. Inventory was low to a high demand of buyers. A buyers market which occurs when the average days on market is more than 240 days is when there is a high supply of homes and low demand of buyers. In a buyers market, if the home is not priced effectively, or fair market value in regards to location, condition and price, it will sit and eventually will be a desperation sale on the end of a motivated seller.

In the mid 1st quarter of 2011, the local economy in Pinellas County is expecting 6,000 foreclosure homes (bank owned/REO) to be released on the market. That’s coming directly from Freddie Mac. So if you add that to the estimated hundreds of homes that will be added after the holidays, then the 6,277 single family homes currently on the market that most will roll over to the new year, there will be over 13,000 homes for sale in the late 1st quarter, early 2nd quarter of 2011. A shift to a buyers market will most likely be seen as a trend once summer hits.

Prices will decline again. Traditionally, REO properties are priced 30% below fair market value to insue an auction like atmosphere… multiple offers in a short amount of time, usually over 1 weekend.  These properties are used as comparables when an appraiser tours and values a home. No way around it.

So recommendations for buyers. Armed with this information, if you need to get under contract in the next 60 days, use this with your offer. Have power to ask 5-10% below current asking price. A motivated seller will negotiate always. Have your agent, or myself, evaluate the motivation of the seller by consulting with the listing agent or ask questions to the seller directly. Not all sellers in today’s market are motivated or have found the right motivation to move.

Recommendation for sellers, if you are thinking of selling in the new year. List your property today. Serious buyers are in the market over the holidays. As you can see with waiting, your chances of being sold at top fair market value today can plummet in 2-3 months if you are not sold and priced right to begin with. In a declining market, your best day to sell was yesterday. Each day a home sits on the market, the price drops. And after 1 month your home becomes stale in the eyes of buyers. They think something must be wrong with your home if it hasn’t sold. Mostly its price. If you are currently on the market, sorry to say, its time for a price adjustment. And make it a good one. A major adjustment of 10% can make a large difference. In some cases if your closest competitor is 15% different, then make the gut check and do it! If you are not prepared to price it to sell, then you aren’t motivated to sell. If you price it slightly below market, then you may create that auction type atmosphere and have multiple offers and get a possible over asking price sale!

If you are interested in buying or selling in the Tampa Bay, FL market, call me, Rebecca The Realtor today for a free, no obligation, consultation. You get the whole truth and nothing but the truth, so help me god. For a free market evlaution for buying or selling check out www.TheTruthAboutYourHome.com.

Rebecca Paone, Keller Williams Gulfside

727-216-9253

RebeccaTheRealtor@live.com

www.RebeccaTheRealtor.net

TALLAHASSEE, Fla. – Dec. 14, 2010 – The 2005 hurricane season was devastating, but since then Florida has been lucky not to sustain damage from hurricanes. Many residents had hoped the absence of hurricanes and damage would lead to lower premiums.

However, that has not been the case, as rates continue to rise each year. Consumer groups indicate rates continue to rise as insurers pay higher reinsurance premiums, but experts suggest that reinsurance rates are falling in some regions.

Florida Insurance Commissioner Kevin McCarty indicates that state reinsurance rates continue to increase because the state is at risk for heavy losses should a storm hit, and non-hurricane losses for insurers have risen 65 percent across the state

 Florida Insurance Council President Sam Miller says part of the problem in Florida is the tight regulation prevalent in the state.

Source: WTSP-TV (12/10/10) Desson, Mike

I believe we need to stop this bullying of insurance companies to the state government. Each insurance company needs to ask permission to the State of Florida to raise their rates by X%. If the government doesn’t allow it, as in example – State Farm, the bullying from the employees who would lose their jobs was a tremendous burden. The non-storm claims come mostly from a visible increase in sink hole activity across the state since the rainfalls and poor soil quality across the state leave it open for major damages. In the past 5 years, the sinkhole claims were wildly paid out with little claims that really weren’t sinkhole issues. Now in the past 2 years, sinkholes are popping up again, but are true sink hole issues. Insurance companies are making it harder to get a repair done because in 2005, people were cashing out and selling. If someone cashes out today, they paid less than if they repair the home.  Cashing out can be as low as 25 – 50 cents per repair dollar. To a homeowner underwater to begin with, what do you do?