Moratorium on foreclosure sales empties bargain bin
Bargain buyers have to look harder to find foreclosed homes as bank-owned properties were yanked from the South Florida market during the past three weeks.
Four lenders froze foreclosure proceedings several weeks ago after allegations that paperwork was faulty, or in some cases even fraudulent.
It’s unknown how fast Bank of America, which said Monday that it was restarting its foreclosure proceedings, will be able to get its repossessed homes into circulation, but Realtors and investors say they hope the uncertainty clouding the process clears soon.
Also Tuesday, the White House said that an interagency task force on financial fraud has launched an investigation into the foreclosure process.
“If this turns into a lengthy situation, it could really destabilize the marketplace as discount buyers compete for properties or decide to sit on the sidelines.
The reduction of bank-owned homes leaves fewer than 4,000 foreclosures on the market in South Florida, including 1,650 single-family homes and 2,271 condominiums.
“The person I wouldn’t want to be is the listing agent on bank-owned properties because effectively they are going on vacation for the next quarter,” Zalewski said.
Some economists have said a foreclosure delay will pump up the economy by slowing the number of discounted properties going to market, which could even out or bolster home prices.
But investor Don Cameron, who owns a South Florida franchise of We Buy Ugly Houses, disagrees. Cameron buys many of his homes at Palm Beach County’s thrice-weekly foreclosure auctions, carefully researching the condition and history of each property before bidding.
When sales are pulled because of the moratorium, that research is wasted, he said.
Also, Cameron’s business involves rehabilitating homes, which means hiring people for construction jobs. Through the sales of the houses, Realtors make commissions, title companies have business, and taxes get paid.
“It’s all a domino effect and it’s stunting and halting economic recovery here,” Cameron said.
Two federal agencies look for fraud
WASHINGTON – Oct. 20, 2010 – The Obama administration said Tuesday that it has started its own investigation into mortgage foreclosures, joining the nation’s 50 state attorneys general in probing the alleged use of faulty or fraudulent documents to seize tens of thousands of homes.
White House press secretary Robert Gibbs released a statement Tuesday morning saying two federal agencies “have undertaken their own regulatory and enforcement investigation into the foreclosure process.”
The statement came the morning after Bank of America announced it would resume seizing more than 100,000 homes in 23 states next week, lifting a moratorium it imposed Oct. 8. The bank said that despite accusations that documents filed in courts were flawed, it had found no significant problems with its foreclosure actions.
Foreclosure laws are set by states, which makes federal prosecution difficult, defense lawyers said. The administration could pursue lenders and mortgage servicers under various federal statutes such as mail, wire or bank fraud, said attorney Daniel Mestaz of Scottsdale, Ariz.
In past federal investigations of big lenders, “It almost always ends up being some kind of settlement or arrangement, and the people who go to prison are the little guys,” Mestaz said.
Portland, Ore., lawyer Robert Calo suspects investigators will look at individuals such as notaries, but if fraud is “pervasive enough, if enough people are looking the other way, including higher officers, then they’ll tag the bank.”
Despite investigations of Goldman Sachs, Countrywide and AIG, no major player has been convicted in the subprime mortgage crisis, said former federal prosecutor Robert Mintz, now a New Jersey defense lawyer.
State attorneys general announced a 50-state probe on Oct. 12 into foreclosure practices. On Oct. 6, Attorney General Eric Holder said federal officials “are looking at” reports of mortgage fraud. Gibbs’ statement Tuesday goes further than Holder’s remark in saying that an “investigation” is underway by the Federal Housing Administration and the Financial Fraud Enforcement Task Force.
The task force, created in November, includes senior officials from 24 departments and agencies including the Justice and Treasury departments.
Task force leaders, including Treasury Secretary Timothy Geithner and Housing and Urban Development Secretary Shaun Donovan, are scheduled to meet privately today to discuss the foreclosure crisis.
Rob Skeel , Realtor- e-Pro - Cell --305-393-6300 Email--rob@robskeel.com
Century 21 Keysearch Realty--877-660-4637
Web Site-- www.RobSkeel.com
Wednesday, October 20, 2010
Tuesday, September 14, 2010
Florida Keys Real Estate Market result through August 31, 2010
Welcome to Century 21 Keysearch Realty
It is a great time to find your dream home in the Florida Keys. Mortgage interest rates are at historical lows and residential home prices are very good.
The following are real estate statistics through August.
If you need additional information regarding a particular area of the Keys or about a specific type of property please let me know..
Market result through August 31, 2010
Upper Florida Keys
Residential properties sold - Up 22.1% over same period last year.
Pending sales Up 20.1% over same period last year.
Average sales price- down 15.2%
Florida Keys -Key Largo to Key West
Residential properties sold - Up 25.1% over same period last year
Pending sales Up 17.7% over same period last year
Average sales price- down 10.2%
Currently there are 201 pending sales in all of the Keys, 127 of these properties are under $400,000, 127 are between $400,000 and $1,000,000 and 7 properties over $1,000,000.
145 of these properties are either foreclosures or short sales.
Rob Skeel e-Pro
Century 21 Keysearch Realty
305-393-6300
YOUR FLORIDA KEYS REAL ESTATE CONNECTION
It is a great time to find your dream home in the Florida Keys. Mortgage interest rates are at historical lows and residential home prices are very good.
The following are real estate statistics through August.
If you need additional information regarding a particular area of the Keys or about a specific type of property please let me know..
Market result through August 31, 2010
Upper Florida Keys
Residential properties sold - Up 22.1% over same period last year.
Pending sales Up 20.1% over same period last year.
Average sales price- down 15.2%
Florida Keys -Key Largo to Key West
Residential properties sold - Up 25.1% over same period last year
Pending sales Up 17.7% over same period last year
Average sales price- down 10.2%
Currently there are 201 pending sales in all of the Keys, 127 of these properties are under $400,000, 127 are between $400,000 and $1,000,000 and 7 properties over $1,000,000.
145 of these properties are either foreclosures or short sales.
Rob Skeel e-Pro
Century 21 Keysearch Realty
305-393-6300
YOUR FLORIDA KEYS REAL ESTATE CONNECTION
Wednesday, August 11, 2010
Good time for Canadians to buy property in the Florida Keys
Low U.S. home prices, high loonie make it a good time to be a Canadian snowbird
TORONTO – Aug. 6, 2010
– Mary and Ron Ethier long believed a getaway home in the Florida sun would remain a retirement dream, but when a recent real estate turnaround opened the border to a growing flock of snowbirds, the couple suddenly saw an opportunity too tempting to pass up.
“We just felt with the prices that were happening down there, that it was out of our reach financially,” said Mary Ethier from her home in Pembroke, Ont. “But when their real estate market basically took a big hit and the Canadian dollar came up, we thought if we’re ever going to do it, now’s the time to get off our butts and go and do it.”
The couple, too busy with their lawn-care franchise to enjoy Ontario summers, toured homes in the Fort Myers, Fla., area in the fall of 2007 and made a lowball offer, expecting to negotiate, but instead found their deal accepted.
By January, they owned a condo in a gated community, a property foreclosed upon when the U.S. housing bubble burst and home prices began to plummet and many American homeowners realized they could no longer pay their mortgages.
The loonie has since risen to hover around parity while U.S. home prices have stagnated, creating new financial incentives for Canadians to act fast and scoop up American real estate deals.
“It’s a once in a lifetime opportunity for Canadians,” says Mark Dziedzic, a Canadian Realtor with Cross Border Realty and a snowbird himself.
The Sun Belt states of Texas, Arizona, California and Florida are favorites.
“People are buying $40,000 to $50,000 condos in Phoenix right now. Condos (in Toronto) are selling for $400,000 to $500,000,” Dziedzic said. Taxes, condo fees and closing costs are also generally less expensive in the U.S., he added.
Prices in most U.S. regions have steadied after falling for three years, but a high number of foreclosures persist, lowering prices, especially in Florida and Nevada, said Bank of Montreal mortgage specialist Laura Parsons.
“This is the time to buy if you’re going to,” she said.
“I think you’ve got to look at this as a long-term investment because you’re getting such a deal. You’re going to have to hang on to it for a while,” and ride out any further downturns before the market picks up again, she said.
There is a fine balance between rushing to buy and waiting for lower prices. Economists predict the U.S. housing market will remain soft, but it’s futile to make decisions based on where a currency or a housing market is going.
“I don’t think you need to rush down and get a place, but the good stuff in the lower price range ... those are moving. The good ones come up and they’re sold,” Dziedzic said.
Buying real estate in the U.S. is becoming easier for Canadians as more snowbirds snap up getaway homes. But experts caution that the buying process, which takes about three to four months, is a different beast.
© The Canadian Press 2010
Rob Skeel , Realtor- e-Pro - Cell --305-393-6300 Email--rob@robskeel.com
Century 21 Keysearch Realty--877-660-4637
Web Site-- www.RobSkeel.com
TORONTO – Aug. 6, 2010
– Mary and Ron Ethier long believed a getaway home in the Florida sun would remain a retirement dream, but when a recent real estate turnaround opened the border to a growing flock of snowbirds, the couple suddenly saw an opportunity too tempting to pass up.
“We just felt with the prices that were happening down there, that it was out of our reach financially,” said Mary Ethier from her home in Pembroke, Ont. “But when their real estate market basically took a big hit and the Canadian dollar came up, we thought if we’re ever going to do it, now’s the time to get off our butts and go and do it.”
The couple, too busy with their lawn-care franchise to enjoy Ontario summers, toured homes in the Fort Myers, Fla., area in the fall of 2007 and made a lowball offer, expecting to negotiate, but instead found their deal accepted.
By January, they owned a condo in a gated community, a property foreclosed upon when the U.S. housing bubble burst and home prices began to plummet and many American homeowners realized they could no longer pay their mortgages.
The loonie has since risen to hover around parity while U.S. home prices have stagnated, creating new financial incentives for Canadians to act fast and scoop up American real estate deals.
“It’s a once in a lifetime opportunity for Canadians,” says Mark Dziedzic, a Canadian Realtor with Cross Border Realty and a snowbird himself.
The Sun Belt states of Texas, Arizona, California and Florida are favorites.
“People are buying $40,000 to $50,000 condos in Phoenix right now. Condos (in Toronto) are selling for $400,000 to $500,000,” Dziedzic said. Taxes, condo fees and closing costs are also generally less expensive in the U.S., he added.
Prices in most U.S. regions have steadied after falling for three years, but a high number of foreclosures persist, lowering prices, especially in Florida and Nevada, said Bank of Montreal mortgage specialist Laura Parsons.
“This is the time to buy if you’re going to,” she said.
“I think you’ve got to look at this as a long-term investment because you’re getting such a deal. You’re going to have to hang on to it for a while,” and ride out any further downturns before the market picks up again, she said.
There is a fine balance between rushing to buy and waiting for lower prices. Economists predict the U.S. housing market will remain soft, but it’s futile to make decisions based on where a currency or a housing market is going.
“I don’t think you need to rush down and get a place, but the good stuff in the lower price range ... those are moving. The good ones come up and they’re sold,” Dziedzic said.
Buying real estate in the U.S. is becoming easier for Canadians as more snowbirds snap up getaway homes. But experts caution that the buying process, which takes about three to four months, is a different beast.
© The Canadian Press 2010
Rob Skeel , Realtor- e-Pro - Cell --305-393-6300 Email--rob@robskeel.com
Century 21 Keysearch Realty--877-660-4637
Web Site-- www.RobSkeel.com
Friday, August 6, 2010
Real Estate Update & Reasons to buy a home
Five reasons to buy a home
1. Low mortgage rates serve as an equity shock absorber. When buyers borrow at today's record-low rates, they start building equity as soon as they close. That means they can absorb a few ups and downs as the still-recovering housing market gains traction.
2. Many Houses are in move-in condition. Homeowners continue to spend on maintenance and repair, according to the Harvard Joint Center on Housing. As these houses enter the market, they stand in marked contrast to tattered foreclosures.
3. Terrific houses are coming on the market. Foreclosures are finally starting to clear the system, and they are being replaced by some very attractive properties.
4. Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines, giving appraisers more flexibility to set values that reflect the current market.
5. Plenty of programs. Many programs that encourage middle-class families to buy homes still exist, despite market downturns. Buyers who qualify can get a big boost by combining one of these programs with today's low mortgage rates.
South Florida market, a hopeful sign
South Florida's housing sector asserted its independence from national trends in July as a key measure of the real estate market improved year-over-year.
In July, pending home sales in Miami-Dade County stood at 10,113, up 40.5 percent from July of 2009, according to figures released Tuesday by the Miami Realtors. In Broward, pending sales stood at 7,830 in July, up 25.4 percent from a year earlier.
Pending home sales refer to the number of housing contracts that have been signed, and offer an early indicator of sales activity because typical sales have a one- to two-month lag between a sales contract and a completed deal.
The Florida Keys Pending listings are up 19.5% compared to 2009 and the Sold listings are up 29.5% YTD.
Rob Skeel , Realtor- e-Pro - Cell --305-393-6300 Email--rob@robskeel.com
Century 21 Keysearch Realty--877-660-4637
Web Site-- www.RobSkeel.com
1. Low mortgage rates serve as an equity shock absorber. When buyers borrow at today's record-low rates, they start building equity as soon as they close. That means they can absorb a few ups and downs as the still-recovering housing market gains traction.
2. Many Houses are in move-in condition. Homeowners continue to spend on maintenance and repair, according to the Harvard Joint Center on Housing. As these houses enter the market, they stand in marked contrast to tattered foreclosures.
3. Terrific houses are coming on the market. Foreclosures are finally starting to clear the system, and they are being replaced by some very attractive properties.
4. Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines, giving appraisers more flexibility to set values that reflect the current market.
5. Plenty of programs. Many programs that encourage middle-class families to buy homes still exist, despite market downturns. Buyers who qualify can get a big boost by combining one of these programs with today's low mortgage rates.
South Florida market, a hopeful sign
South Florida's housing sector asserted its independence from national trends in July as a key measure of the real estate market improved year-over-year.
In July, pending home sales in Miami-Dade County stood at 10,113, up 40.5 percent from July of 2009, according to figures released Tuesday by the Miami Realtors. In Broward, pending sales stood at 7,830 in July, up 25.4 percent from a year earlier.
Pending home sales refer to the number of housing contracts that have been signed, and offer an early indicator of sales activity because typical sales have a one- to two-month lag between a sales contract and a completed deal.
The Florida Keys Pending listings are up 19.5% compared to 2009 and the Sold listings are up 29.5% YTD.
Rob Skeel , Realtor- e-Pro - Cell --305-393-6300 Email--rob@robskeel.com
Century 21 Keysearch Realty--877-660-4637
Web Site-- www.RobSkeel.com
Wednesday, July 21, 2010
Florida Keys Oil Spill update July 21, 2010
According to the National Oceanic and Atmospheric Administration, the Loop Current has pulled even further away from the Transocean/BP spill site.
According to a new NOAA graphic, which is being displayed on the Monroe County Tourist Development Council’s special oil spill page at www.fla-keys.com/oilspill, the closest point of the oil slick to the northernmost edge of the Loop Current on Monday was about 350 miles.
The separation of the Loop Current from the spill site, coupled with the clockwise-rotating Eddy Franklin current in between, makes it extremely unlikely that oil residues, including tar balls, from the spill site will reach the Keys and Florida’s east coast.
The Loop Current is dynamic and its position can change, but given the large separation, officials continue to project low risks of oil residue impacts for the Keys.
According to a new NOAA graphic, which is being displayed on the Monroe County Tourist Development Council’s special oil spill page at www.fla-keys.com/oilspill, the closest point of the oil slick to the northernmost edge of the Loop Current on Monday was about 350 miles.
The separation of the Loop Current from the spill site, coupled with the clockwise-rotating Eddy Franklin current in between, makes it extremely unlikely that oil residues, including tar balls, from the spill site will reach the Keys and Florida’s east coast.
The Loop Current is dynamic and its position can change, but given the large separation, officials continue to project low risks of oil residue impacts for the Keys.
Wednesday, June 23, 2010
Florida’s existing home, condo sales rise in May
Sales of existing homes in Florida rose 18 percent in May, marking 21 months that sales activity has increased in the year-to-year comparison. A total of 16,745 single-family existing homes sold statewide last month compared to 14,172 homes sold in May 2009, according to Florida Realtors. The statewide existing-home median price of $140,400 in May was slightly higher – by $300 – than April's statewide existing-home median price of $140,100. It marks the third month in a row that the statewide existing-home median price has increased over the previous month's median.
@ Florida Association of Realtors | Posted: 06/23/10 at 0215 EDST
The Florida Keys real estate market is also showing signs of strengthening with many pending sales and sellers of non distressed homes willing to negotiate to move their property.
Rob Skeel , Realtor- e-Pro - Cell --305-393-6300 Email--rob@robskeel.com
Century 21 Keysearch Realty--877-660-4637
Web Site-- www.RobSkeel.com
@ Florida Association of Realtors | Posted: 06/23/10 at 0215 EDST
The Florida Keys real estate market is also showing signs of strengthening with many pending sales and sellers of non distressed homes willing to negotiate to move their property.
Rob Skeel , Realtor- e-Pro - Cell --305-393-6300 Email--rob@robskeel.com
Century 21 Keysearch Realty--877-660-4637
Web Site-- www.RobSkeel.com
Friday, June 11, 2010
Mortgage rates hit low for year
If your considering purchasing in the Florida Keys this is great news!
Freddie Mac: Mortgage rates hit low for year
Mortgage Rate Trend Index
No experts polled by Bankrate.com expect mortgage rates to go lower, but a majority (56%) doesn’t expect much change over the short term. The remaining 44%, however, predict an increase.
WASHINGTON – June 11, 2010 – Rates on 30-year fixed mortgages fell this week to the lowest level of the year and barely shy of the all-time low.
Mortgage finance company Freddie Mac says the average rate sank to 4.72 percent, down from 4.79 percent last week. It was just above the record of 4.71 set last December.
The average rate on a 15-year fixed-rate mortgage hit 4.17 percent, down from 4.2 percent last week and the lowest on records dating back to August 1991.
Rob Skeel , Realtor- e-Pro - Cell --305-393-6300 Email--rob@robskeel.com
Century 21 Keysearch Realty--877-660-4637
Web Site-- www.RobSkeel.com
Freddie Mac: Mortgage rates hit low for year
Mortgage Rate Trend Index
No experts polled by Bankrate.com expect mortgage rates to go lower, but a majority (56%) doesn’t expect much change over the short term. The remaining 44%, however, predict an increase.
WASHINGTON – June 11, 2010 – Rates on 30-year fixed mortgages fell this week to the lowest level of the year and barely shy of the all-time low.
Mortgage finance company Freddie Mac says the average rate sank to 4.72 percent, down from 4.79 percent last week. It was just above the record of 4.71 set last December.
The average rate on a 15-year fixed-rate mortgage hit 4.17 percent, down from 4.2 percent last week and the lowest on records dating back to August 1991.
Rob Skeel , Realtor- e-Pro - Cell --305-393-6300 Email--rob@robskeel.com
Century 21 Keysearch Realty--877-660-4637
Web Site-- www.RobSkeel.com
Tuesday, June 8, 2010
Q&A Regarding the Florida Keys and the Gulf Oil Spill
The following is information regarding the Gulf oil spill and questions and answers addressing the spill's potential impact on the Florida Keys.
KEYS TOURISM ADVISORY 26 June 8, 2010 • 9 AM EDT
News and Information From the Monroe County Tourist Development Council
Q&A Regarding the Florida Keys and the Gulf Oil Spill (Revision 4)
Because developments regarding the Transocean/BP (British Petroleum) oil spill and its relationship to the Florida Keys continue to evolve, the Monroe County Tourist Development Council has updated this Question and Answer document originally published May 4 and revised several times since then. This should be
helpful to answer questions from current or potential visitors. It is also published on the www.fla-keys.com website in a home page-linked spill-related section, or go directly to www.fla-keys.com/oilspill.
I heard the Keys are in imminent danger of being affected by the oil spill. Is that true?
According to officials at the National Oceanic and Atmospheric Administration, or NOAA, semitransparent, noncontiguous sheens of oil and tar balls from the Transocean/BP oil spill have been seen near the Loop Current, while others are being entrained into a counterclockwise current eddy northeast of the Loop Current. NOAA insists in the time it would take for any oil to travel to the vicinity of the Keys, it would be highly weathered and both the natural process of evaporation and application of dispersants would reduce the oil volume significantly. It is still unclear whether the weathered oil would actually arrive in the Keys region or bypass the area and remain either in the Loop Current or enter the Gulf Stream (see explanation of Loop Current below). The bulk of the spill should remain away from the Loop Current, NOAA said.
What is the Loop Current?
The Gulf Loop Current is a dynamic, clockwise warm-water current that carries water from the Yucatan Channel north to the Gulf of Mexico, then eastward and looping back down south off Florida’s west coast, past the Dry Tortugas and into the Gulf Stream, also known as the Florida Current.
I have heard that oil will definitely hit the Keys and impacts will be devastating. Is that true?
NOAA, Coast Guard and other officials say the kinds of impacts the Keys and areas on the east coast might experience would be much different than what is transpiring in the northern Gulf of Mexico. Most experts say any oil that is moving south would be more dispersed and highly weathered by the time it reaches the Keys, which is some 500 miles from the spill site. That means it is highly unlikely that large “rivers” of heavy, aqueous oil — the kind of horrific impacts currently affecting some northern Gulf shorelines — would encroach on the Keys. The weathered and diluted oil would likely appear in isolated locations in the form of tar balls. While arrival of oil in any form is unacceptable, tar balls are “significantly less toxic to the
environment,” according to NOAA and Florida Department of Environmental Protection officials. It is possible one area of the Keys could be affected and others not, or that oil residues could remain in currents and completely miss the Keys.
What about the oil tar balls that have already been found in different parts of the Keys?
There has been much news coverage and I heard they were from the Gulf oil spill.
Since May 19, the U.S. Coast Guard has tested more than 40 tar ball samples and none were from the Gulf spill. Finding tar balls in Keys waters or on area beaches is not an unusual occurrence. The Keys are located along a busy commercial shipping route, with some 24,000 vessels passing by annually. Commercial vessels sometimes discharge bilge water that has oil in it. Unfortunately, even though it is illegal, officials believe some vessels are now using the Gulf oil spill as an “opportunity” to empty oily bilge water into the sea. Tar balls also can drift into Keys waters from many other areas, not just the Gulf region.
What is a tar ball?
A tar ball is a blob of oil that has been weathered after floating in the ocean. Tar ball concentration and features have been used to assess the extent of oil spills, and their composition can help identify their sources of origin. They are slowly decomposed by microorganisms. While not dangerous to most people, tar balls can cause allergic reactions and should only be retrieved by trained personnel. Tar balls can occur naturally and so are not always associated with oil spills. All tar ball or other oil-related sightings should be
reported to the Coast Guard at 1-800-424-8802.
Can you guarantee me that oil residues will not make their way into the Keys during my vacation?
Nobody can make a long-term guarantee that residues from the Gulf Coast oil spill will or will not reach the Keys. However, currently, expected impacts, if any, do not seem to be a serious issue for travelers. Each property has its own cancellation policy. It is prudent to check with the hotel as well as any other travelrelated
operator in advance to determine cancellation policies and if management will offer refunds or credits in the event oil adversely affects Keys waters. Some Keys resorts are offerring “oil-free vacation guarantees,” with written and web-published compensation policies.
I hear authorities have shut down fishing in the Keys.
That is not true. A large area in the Gulf of Mexico, west of the Keys, has been closed by NOAA Fisheries to protect the public. But no area in the Keys is under the order at this time. That means Keys-caught seafood has not been affected and is safe to consume.
Is it safe to dive, swim and participate in other water sports in the Keys?
Currently, there are no advisories in the Keys in effect due to the Gulf oil spill.
The Monroe County Health Department is monitoring the situation and would issue an advisory in the event of any health-related risk.
I hear the Florida Keys and much of Florida are under a state of emergency.
Twenty-six of the state’s 67 counties are under a state of emergency, even though moderate impacts have only been seen on northwest Florida beaches. A state of emergency is declared in advance of a potential emergency so the region can qualify for federal reimbursement funding and small business loans, if needed.
Visitors continue to be welcomed to all Florida areas that are under a state of emergency.
Are there protective actions being taken to safeguard the environment, if needed?
The U.S. Coast Guard is the lead government agency responsible for oversight of any necessary cleanup and remediation activities. The Coast Guard works in conjunction with other local, state and federal authorities to enact a 725-page area contingency plan that includes oil spill response actions. Some other agencies involved are NOAA’s Florida Keys National Marine Sanctuary, the Department of the Interior, Florida Department of Environmental Protection and Monroe County Emergency Management. All are operating under the recently established Florida Peninsula Command Center. Assessment and cleanup crews have been mobilized to mitigate tar balls, or any other unexpected effects. Currently, no protective actions are interrupting water- or land-related visitor activities in the Florida Keys.
When will this be over?
Officials don’t know for sure. The outcome and timing depend on when the leak at the Transocean/BP well site can be plugged or fully contained and how effective current mitigation efforts are in containing oil already in the northern Gulf of Mexico.
Where can I get more information on the oil spill?
The Keys tourism council is posting information — including official NOAA oil slick trajectory maps — on its website at www.fla-keys.com/oilspill as well as on Twitter and Facebook:
http://twitter.com/KeysNewsBPspill • http://www.facebook.com/floridakeysandkeywest
Spill-related websites includes:
http://www.deepwaterhorizonresponse.com • http://www.dep.state.fl.us/deepwaterhorizon/default.htm
Florida Oil Spill Information Line (8 a.m.-6 p.m. ET daily): 1-888-337-3569
###
KEYS TOURISM ADVISORY 26 June 8, 2010 • 9 AM EDT
News and Information From the Monroe County Tourist Development Council
Q&A Regarding the Florida Keys and the Gulf Oil Spill (Revision 4)
Because developments regarding the Transocean/BP (British Petroleum) oil spill and its relationship to the Florida Keys continue to evolve, the Monroe County Tourist Development Council has updated this Question and Answer document originally published May 4 and revised several times since then. This should be
helpful to answer questions from current or potential visitors. It is also published on the www.fla-keys.com website in a home page-linked spill-related section, or go directly to www.fla-keys.com/oilspill.
I heard the Keys are in imminent danger of being affected by the oil spill. Is that true?
According to officials at the National Oceanic and Atmospheric Administration, or NOAA, semitransparent, noncontiguous sheens of oil and tar balls from the Transocean/BP oil spill have been seen near the Loop Current, while others are being entrained into a counterclockwise current eddy northeast of the Loop Current. NOAA insists in the time it would take for any oil to travel to the vicinity of the Keys, it would be highly weathered and both the natural process of evaporation and application of dispersants would reduce the oil volume significantly. It is still unclear whether the weathered oil would actually arrive in the Keys region or bypass the area and remain either in the Loop Current or enter the Gulf Stream (see explanation of Loop Current below). The bulk of the spill should remain away from the Loop Current, NOAA said.
What is the Loop Current?
The Gulf Loop Current is a dynamic, clockwise warm-water current that carries water from the Yucatan Channel north to the Gulf of Mexico, then eastward and looping back down south off Florida’s west coast, past the Dry Tortugas and into the Gulf Stream, also known as the Florida Current.
I have heard that oil will definitely hit the Keys and impacts will be devastating. Is that true?
NOAA, Coast Guard and other officials say the kinds of impacts the Keys and areas on the east coast might experience would be much different than what is transpiring in the northern Gulf of Mexico. Most experts say any oil that is moving south would be more dispersed and highly weathered by the time it reaches the Keys, which is some 500 miles from the spill site. That means it is highly unlikely that large “rivers” of heavy, aqueous oil — the kind of horrific impacts currently affecting some northern Gulf shorelines — would encroach on the Keys. The weathered and diluted oil would likely appear in isolated locations in the form of tar balls. While arrival of oil in any form is unacceptable, tar balls are “significantly less toxic to the
environment,” according to NOAA and Florida Department of Environmental Protection officials. It is possible one area of the Keys could be affected and others not, or that oil residues could remain in currents and completely miss the Keys.
What about the oil tar balls that have already been found in different parts of the Keys?
There has been much news coverage and I heard they were from the Gulf oil spill.
Since May 19, the U.S. Coast Guard has tested more than 40 tar ball samples and none were from the Gulf spill. Finding tar balls in Keys waters or on area beaches is not an unusual occurrence. The Keys are located along a busy commercial shipping route, with some 24,000 vessels passing by annually. Commercial vessels sometimes discharge bilge water that has oil in it. Unfortunately, even though it is illegal, officials believe some vessels are now using the Gulf oil spill as an “opportunity” to empty oily bilge water into the sea. Tar balls also can drift into Keys waters from many other areas, not just the Gulf region.
What is a tar ball?
A tar ball is a blob of oil that has been weathered after floating in the ocean. Tar ball concentration and features have been used to assess the extent of oil spills, and their composition can help identify their sources of origin. They are slowly decomposed by microorganisms. While not dangerous to most people, tar balls can cause allergic reactions and should only be retrieved by trained personnel. Tar balls can occur naturally and so are not always associated with oil spills. All tar ball or other oil-related sightings should be
reported to the Coast Guard at 1-800-424-8802.
Can you guarantee me that oil residues will not make their way into the Keys during my vacation?
Nobody can make a long-term guarantee that residues from the Gulf Coast oil spill will or will not reach the Keys. However, currently, expected impacts, if any, do not seem to be a serious issue for travelers. Each property has its own cancellation policy. It is prudent to check with the hotel as well as any other travelrelated
operator in advance to determine cancellation policies and if management will offer refunds or credits in the event oil adversely affects Keys waters. Some Keys resorts are offerring “oil-free vacation guarantees,” with written and web-published compensation policies.
I hear authorities have shut down fishing in the Keys.
That is not true. A large area in the Gulf of Mexico, west of the Keys, has been closed by NOAA Fisheries to protect the public. But no area in the Keys is under the order at this time. That means Keys-caught seafood has not been affected and is safe to consume.
Is it safe to dive, swim and participate in other water sports in the Keys?
Currently, there are no advisories in the Keys in effect due to the Gulf oil spill.
The Monroe County Health Department is monitoring the situation and would issue an advisory in the event of any health-related risk.
I hear the Florida Keys and much of Florida are under a state of emergency.
Twenty-six of the state’s 67 counties are under a state of emergency, even though moderate impacts have only been seen on northwest Florida beaches. A state of emergency is declared in advance of a potential emergency so the region can qualify for federal reimbursement funding and small business loans, if needed.
Visitors continue to be welcomed to all Florida areas that are under a state of emergency.
Are there protective actions being taken to safeguard the environment, if needed?
The U.S. Coast Guard is the lead government agency responsible for oversight of any necessary cleanup and remediation activities. The Coast Guard works in conjunction with other local, state and federal authorities to enact a 725-page area contingency plan that includes oil spill response actions. Some other agencies involved are NOAA’s Florida Keys National Marine Sanctuary, the Department of the Interior, Florida Department of Environmental Protection and Monroe County Emergency Management. All are operating under the recently established Florida Peninsula Command Center. Assessment and cleanup crews have been mobilized to mitigate tar balls, or any other unexpected effects. Currently, no protective actions are interrupting water- or land-related visitor activities in the Florida Keys.
When will this be over?
Officials don’t know for sure. The outcome and timing depend on when the leak at the Transocean/BP well site can be plugged or fully contained and how effective current mitigation efforts are in containing oil already in the northern Gulf of Mexico.
Where can I get more information on the oil spill?
The Keys tourism council is posting information — including official NOAA oil slick trajectory maps — on its website at www.fla-keys.com/oilspill as well as on Twitter and Facebook:
http://twitter.com/KeysNewsBPspill • http://www.facebook.com/floridakeysandkeywest
Spill-related websites includes:
http://www.deepwaterhorizonresponse.com • http://www.dep.state.fl.us/deepwaterhorizon/default.htm
Florida Oil Spill Information Line (8 a.m.-6 p.m. ET daily): 1-888-337-3569
###
Thursday, May 13, 2010
State of Florida 1st Quarter Real Estate Sales Results
ORLANDO, Fla. – May 11, 2010 — Sales of existing single-family homes in Florida rose 24 percent in first quarter 2010 compared to the same period a year earlier, according to the latest housing statistics from Florida Realtors®. A total of 38,846 existing homes sold statewide in 1Q 2010; during the same period the year before, a total of 31,410 existing homes sold. It marks the seventh consecutive quarter that Florida has seen higher existing year-to-year home sales, according to the state association.
Statewide sales of existing condominiums in the first quarter rose 67 percent compared to the same time the previous year. This marks the sixth consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.
"The first quarter data release from the Florida Realtors paints a picture of a housing market continuing down the long road to recovery," said Dr. Sean Snaith, director for the University of Central Florida's Institute for Economic Competitiveness. "Transactions in the single family market have extended quarterly year-over-year gains for nearly two years, and condo sales have also risen sharply. Median prices in most areas of the state continue to fall; however, the rate at which they are falling has diminished significantly and this is indicative of a bottom approaching.
"How long prices stay at the bottom and when price appreciation will reappear will depend in a large part on the improving fundamentals in the economy and credit markets."
The University of Florida's Bergstrom Center for Real Estate Studies' latest quarterly survey of real estate trends also notes positive signs of recovery in the state's real estate industry. The survey polls market research economists, industry executives, real estate scholars and other experts.
"Results indicate that the real estate market in Florida has hit bottom and is in the process of stabilizing across most property types," said Timothy Becker, the center's director. Private capital – both foreign and domestic – continues to enter the state in search of quality investment deals, he added.
Seventeen of Florida's metropolitan statistical areas (MSAs) reported increased sales of existing homes in 1Q 2010 compared to the same three-month-period a year earlier, while all of the MSAs showed gains in condo sales.
The statewide existing-home median sales price was $133,800 in 1Q 2010; a year earlier, it was $140,900 for a decrease of 5 percent. According to industry analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is a typical market price where half the homes sold for more, half for less.
In the year-to-year quarterly comparison for condo sales, 16,897 units sold statewide for the quarter compared to 10,131 in 1Q 2009 for a 67 percent increase. The statewide existing-condo median sales price was $95,800 for the three-month period; in 1Q 2009, it was $110,000 for a decrease of 13 percent.
Low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5 percent in 1Q 2010; one year earlier, it averaged 5.06 percent.
© 2010 Florida Realtors®
Statewide sales of existing condominiums in the first quarter rose 67 percent compared to the same time the previous year. This marks the sixth consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.
"The first quarter data release from the Florida Realtors paints a picture of a housing market continuing down the long road to recovery," said Dr. Sean Snaith, director for the University of Central Florida's Institute for Economic Competitiveness. "Transactions in the single family market have extended quarterly year-over-year gains for nearly two years, and condo sales have also risen sharply. Median prices in most areas of the state continue to fall; however, the rate at which they are falling has diminished significantly and this is indicative of a bottom approaching.
"How long prices stay at the bottom and when price appreciation will reappear will depend in a large part on the improving fundamentals in the economy and credit markets."
The University of Florida's Bergstrom Center for Real Estate Studies' latest quarterly survey of real estate trends also notes positive signs of recovery in the state's real estate industry. The survey polls market research economists, industry executives, real estate scholars and other experts.
"Results indicate that the real estate market in Florida has hit bottom and is in the process of stabilizing across most property types," said Timothy Becker, the center's director. Private capital – both foreign and domestic – continues to enter the state in search of quality investment deals, he added.
Seventeen of Florida's metropolitan statistical areas (MSAs) reported increased sales of existing homes in 1Q 2010 compared to the same three-month-period a year earlier, while all of the MSAs showed gains in condo sales.
The statewide existing-home median sales price was $133,800 in 1Q 2010; a year earlier, it was $140,900 for a decrease of 5 percent. According to industry analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is a typical market price where half the homes sold for more, half for less.
In the year-to-year quarterly comparison for condo sales, 16,897 units sold statewide for the quarter compared to 10,131 in 1Q 2009 for a 67 percent increase. The statewide existing-condo median sales price was $95,800 for the three-month period; in 1Q 2009, it was $110,000 for a decrease of 13 percent.
Low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5 percent in 1Q 2010; one year earlier, it averaged 5.06 percent.
© 2010 Florida Realtors®
Monday, April 19, 2010
Florida Keys 1st Quarter Real Estate Results
The first quarter result for 2010 for sold properties is 404 homes sold a 37% increase over the same period in 2009.
Short Sales and Foreclosures accounted for 150 of those sales.
Of the 404 sales Key West led the way with 156 sales, the Upper Keys had 91 and the balance were from Mile Marker 74 to Key West.
The inventory is still crowded but has dropped 16% from last year.
The difference between final list price and sales price is now 91%, up from 87% at year end. During the peak years it was 95%. Prices are getting to where there is less margin between what a seller is willing to take and the buyer is willing to spend.
Pending sales are so strong that they should continue to support positive closed sales through spring on into summer.
The average for closings is around 60 to 90 days when financing is involved. Average closings use to take about 45 days. Interest rates are still low but have begun to trend up after the Fed stopped subsidizing rates the end of March.
I hope you find this information helpful. When you need a realtor please think of me to assist you with your real estate needs.
Rob Skeel , Realtor- e-Pro - Cell --305-393-6300 Email--rob@robskeel.com
Century 21 Keysearch Realty--877-660-4637
Web Site-- www.RobSkeel.com
Short Sales and Foreclosures accounted for 150 of those sales.
Of the 404 sales Key West led the way with 156 sales, the Upper Keys had 91 and the balance were from Mile Marker 74 to Key West.
The inventory is still crowded but has dropped 16% from last year.
The difference between final list price and sales price is now 91%, up from 87% at year end. During the peak years it was 95%. Prices are getting to where there is less margin between what a seller is willing to take and the buyer is willing to spend.
Pending sales are so strong that they should continue to support positive closed sales through spring on into summer.
The average for closings is around 60 to 90 days when financing is involved. Average closings use to take about 45 days. Interest rates are still low but have begun to trend up after the Fed stopped subsidizing rates the end of March.
I hope you find this information helpful. When you need a realtor please think of me to assist you with your real estate needs.
Rob Skeel , Realtor- e-Pro - Cell --305-393-6300 Email--rob@robskeel.com
Century 21 Keysearch Realty--877-660-4637
Web Site-- www.RobSkeel.com
Monday, March 29, 2010
First Quarter 2010 Florida Key's Real Estate Update
With the lowest prices seen in years, rock bottom interest rates and federal tax breaks, Florida Keys property sales for January and February are running 40% ahead of last year and March is looking positive as well.. There are 16 percent fewer homes for sale and 60% more pending sales compared to last year.
Things to consider!
Interest rates may not be this low much longer as the Treasury's subsidy is set to expire at the end of March. Rates may head up from there.
It is a buyers market but buyers need to be realistic in their price expectations. There are many sellers who are not desperate to sell (not a short sale or forclosuer) and still want a fair value for there home.
If you are one of the buyers with either cash or who is preapproved for a loan, that can go a long way in negotiations and help get the best deal possible. Just be prepared for when the right home comes along, to move on it as the competition amongst the good deals is becoming fierce.
Rob Skeel , Realtor- e-Pro - Cell --305-393-6300
Email--rob@robskeel.com
Century 21 Keysearch Realty--877-660-4637
Web Site-- www.RobSkeel.com
Green Certified Real Estate Professional, FHA Certified, SFR
Things to consider!
Interest rates may not be this low much longer as the Treasury's subsidy is set to expire at the end of March. Rates may head up from there.
It is a buyers market but buyers need to be realistic in their price expectations. There are many sellers who are not desperate to sell (not a short sale or forclosuer) and still want a fair value for there home.
If you are one of the buyers with either cash or who is preapproved for a loan, that can go a long way in negotiations and help get the best deal possible. Just be prepared for when the right home comes along, to move on it as the competition amongst the good deals is becoming fierce.
Rob Skeel , Realtor- e-Pro - Cell --305-393-6300
Email--rob@robskeel.com
Century 21 Keysearch Realty--877-660-4637
Web Site-- www.RobSkeel.com
Green Certified Real Estate Professional, FHA Certified, SFR
Wednesday, March 17, 2010
Fed weighs how and when to signal higher rates
Seriously thinking about purchasing a place in the Florida Keys? Our inventory has dropped considerably and with the possibility of higher interest rates in the future this could be the best time to make your move.
WASHINGTON (AP) – March 16, 2010 – Debate is heating up within the Federal Reserve over how and when to signal that the days of record-low interest rates are numbered.
A rate hike isn’t imminent. But at their meeting Tuesday, Federal Reserve Chairman Ben Bernanke and his colleagues will likely focus on how to telegraph that higher rates are coming once the economic recovery is more deeply rooted. Eventually, Fed policymakers will need to start bumping up rates to head off inflation.
It will be a challenging maneuver. Fed officials will want to signal a move to higher rates in advance so borrowers and investors aren’t jarred. And they will need to send a signal that isn’t confusing.
The Fed has held rates at a record low near zero since December 2008. Bernanke and other Fed officials have said low rates are still needed to underpin economic growth.
But they need to decide whether to keep or modify their yearlong pledge to hold rates at record lows for an “extended period.” Economists generally think “extended period” means at least six more months.
The Fed could drop that commitment altogether. Or it could pledge to keep rates low only for “some time” or vow to keep “policy accommodative.” Or it could change its language in some other way to stress that credit will be tightened when the time is right. Any such step would signal that the days of easy money are fading.
Inside the Fed, debate is intensifying.
Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, has pushed to change the signal. At the Fed’s last meeting in late January, Hoenig dissented from the “extended period” pledge. He favored saying rates would stay low for “some time.” He thought that would give the Fed more flexibility to start raising rates.
Some economists aren’t ruling out a change in language at Tuesday’s meeting. Others don’t think a change will come until the Fed’s next meeting on April 27-28.
“During the Depression, the Fed tightened policy too soon and cut off the recovery before it was self-sufficient,” said Joel Naroff, president of Naroff Economic Advisors. “The Fed doesn’t want to make that mistake again. I think that they are willing to stay with very easy money longer than they might normally because of all the damage that has been done to the economy.”
The recession wiped out 8.4 million jobs. And with companies still wary of ramping up hiring, the unemployment rate – now at 9.7 percent – is likely to stay high.
Even though the jobless rate hasn’t budged for two months and companies aren’t cutting as many jobs as they did a year ago, hiring is tepid. Consumer and business spending is sufficient to keep the economy growing only modestly. The housing and commercial real-estate markets are wobbly. Lending remains tight.
“Cautiously optimistic is where the Fed is right now,” said William Cheney, chief economist at John Hancock. “But it is heavy on the caution and light on the optimism.”
That helps explain why the Fed is expected to keep its key rate at a record low Tuesday. It has held its target range for its bank lending rate at zero to 0.25 percent since December 2008. In response, commercial banks’ prime lending rate, used to peg rates on certain credit cards and consumer loans, has remained about 3.25 percent – its lowest in decades.
Super-low rates benefit borrowers who qualify for loans and are willing to take on more debt. But they hurt savers. Low rates are especially hard on people living on fixed incomes who are earning measly returns on savings accounts and certificates of deposit.
The Fed could start boosting rates as early as June – if economic growth accelerated. A more likely time is this fall, economists say.
Investors also will be looking to see if the Fed makes any changes to an economic-support program that’s lowered mortgage rates and bolstered the housing market. Under that program, the Fed is scheduled to end its mortgage-securities purchases from Fannie Mae and Freddie Mac at the end of this month.
Some analysts fear that once the program ends, mortgage rates could rise. That could weaken the recovery in housing and the overall economy. The Fed has left the door open to extending the program if the economy weakens.
Please contact me and I will help you find just the right property and negotiate in your behalf to get the best deal. It doesn't cost you a dime and I can save you valuable time searching for that DREAM home.
Rob Skeel , Realtor- e-Pro - Cell --305-393-6300 Email--rob@robskeel.com
Century 21 Keysearch Realty--877-660-4637
Web Site-- www.RobSkeel.com
WASHINGTON (AP) – March 16, 2010 – Debate is heating up within the Federal Reserve over how and when to signal that the days of record-low interest rates are numbered.
A rate hike isn’t imminent. But at their meeting Tuesday, Federal Reserve Chairman Ben Bernanke and his colleagues will likely focus on how to telegraph that higher rates are coming once the economic recovery is more deeply rooted. Eventually, Fed policymakers will need to start bumping up rates to head off inflation.
It will be a challenging maneuver. Fed officials will want to signal a move to higher rates in advance so borrowers and investors aren’t jarred. And they will need to send a signal that isn’t confusing.
The Fed has held rates at a record low near zero since December 2008. Bernanke and other Fed officials have said low rates are still needed to underpin economic growth.
But they need to decide whether to keep or modify their yearlong pledge to hold rates at record lows for an “extended period.” Economists generally think “extended period” means at least six more months.
The Fed could drop that commitment altogether. Or it could pledge to keep rates low only for “some time” or vow to keep “policy accommodative.” Or it could change its language in some other way to stress that credit will be tightened when the time is right. Any such step would signal that the days of easy money are fading.
Inside the Fed, debate is intensifying.
Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, has pushed to change the signal. At the Fed’s last meeting in late January, Hoenig dissented from the “extended period” pledge. He favored saying rates would stay low for “some time.” He thought that would give the Fed more flexibility to start raising rates.
Some economists aren’t ruling out a change in language at Tuesday’s meeting. Others don’t think a change will come until the Fed’s next meeting on April 27-28.
“During the Depression, the Fed tightened policy too soon and cut off the recovery before it was self-sufficient,” said Joel Naroff, president of Naroff Economic Advisors. “The Fed doesn’t want to make that mistake again. I think that they are willing to stay with very easy money longer than they might normally because of all the damage that has been done to the economy.”
The recession wiped out 8.4 million jobs. And with companies still wary of ramping up hiring, the unemployment rate – now at 9.7 percent – is likely to stay high.
Even though the jobless rate hasn’t budged for two months and companies aren’t cutting as many jobs as they did a year ago, hiring is tepid. Consumer and business spending is sufficient to keep the economy growing only modestly. The housing and commercial real-estate markets are wobbly. Lending remains tight.
“Cautiously optimistic is where the Fed is right now,” said William Cheney, chief economist at John Hancock. “But it is heavy on the caution and light on the optimism.”
That helps explain why the Fed is expected to keep its key rate at a record low Tuesday. It has held its target range for its bank lending rate at zero to 0.25 percent since December 2008. In response, commercial banks’ prime lending rate, used to peg rates on certain credit cards and consumer loans, has remained about 3.25 percent – its lowest in decades.
Super-low rates benefit borrowers who qualify for loans and are willing to take on more debt. But they hurt savers. Low rates are especially hard on people living on fixed incomes who are earning measly returns on savings accounts and certificates of deposit.
The Fed could start boosting rates as early as June – if economic growth accelerated. A more likely time is this fall, economists say.
Investors also will be looking to see if the Fed makes any changes to an economic-support program that’s lowered mortgage rates and bolstered the housing market. Under that program, the Fed is scheduled to end its mortgage-securities purchases from Fannie Mae and Freddie Mac at the end of this month.
Some analysts fear that once the program ends, mortgage rates could rise. That could weaken the recovery in housing and the overall economy. The Fed has left the door open to extending the program if the economy weakens.
Please contact me and I will help you find just the right property and negotiate in your behalf to get the best deal. It doesn't cost you a dime and I can save you valuable time searching for that DREAM home.
Rob Skeel , Realtor- e-Pro - Cell --305-393-6300 Email--rob@robskeel.com
Century 21 Keysearch Realty--877-660-4637
Web Site-- www.RobSkeel.com
Thursday, March 4, 2010
2009 Florida Keys YE Real Estate Stats
2009 Total # of property sales was up +34% over 2008!
Months of Inventory, a measure of how many months it would take to sell the existing property inventory, is 28 months down from a peak of 55 months.
The Florida Keys real estate market showed steady improvement as 2009 progressed with the last months of the year showing the largest gains. This momentum continued into 2010 driven by attractive interest rates, home buyer credits, a continuing decline in prices and inventory and a recognition that prices are stabilizing. The 3rd and 4th quarters of the year, historically the slowest time of the year for sales in the Keys, were the best quarters in 2009. All indicators point to a much improved real estate market in 2010.
No one knows how long the great interest rates will be available or when housing prices will start to go back up.
If your considering purchasing your dream home in the Florida Keys please contact me and I will assist you with finding the property your seeking and negotiate a good price.
Rob Skeel , Realtor- e-Pro - Cell --305-393-6300 Email--rob@robskeel.com
Century 21 Keysearch Realty--877-660-4637
Web Site-- www.RobSkeel.com
Months of Inventory, a measure of how many months it would take to sell the existing property inventory, is 28 months down from a peak of 55 months.
The Florida Keys real estate market showed steady improvement as 2009 progressed with the last months of the year showing the largest gains. This momentum continued into 2010 driven by attractive interest rates, home buyer credits, a continuing decline in prices and inventory and a recognition that prices are stabilizing. The 3rd and 4th quarters of the year, historically the slowest time of the year for sales in the Keys, were the best quarters in 2009. All indicators point to a much improved real estate market in 2010.
No one knows how long the great interest rates will be available or when housing prices will start to go back up.
If your considering purchasing your dream home in the Florida Keys please contact me and I will assist you with finding the property your seeking and negotiate a good price.
Rob Skeel , Realtor- e-Pro - Cell --305-393-6300 Email--rob@robskeel.com
Century 21 Keysearch Realty--877-660-4637
Web Site-- www.RobSkeel.com
Friday, February 12, 2010
Thinking of purchasing your dream home? Good information for you.
4 reasons to sell now ORLANDO, Fla. – Feb. 9, 2010 – Selling a property in this tough market can seem like a challenge. Here are four factors that actually make this a good time to post a For-Sale sign:
• Sell low and buy low. Because all property values are down, the loss on the property a homeowner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he’ll be in better shape.
• Downpayment help is widely available. While nothing-down loans have disappeared, it’s easy to find downpayment assistance for lower-income and first-time homebuyers. Programs vary all over the country, but one good way to find them is to search online for “downpayment assistance programs” and the name of your region.
• Your Uncle Sam has money to share. Besides the $8,000 first-time homebuyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
• Good help is available. Really talented real estate practitioners, contractors and designers are available and eager for business.
Fed’s plans bode well for homebuyers WASHINGTON – Feb. 11, 2010 – Federal Reserve Chairman Ben Bernanke said Wednesday he doesn’t expect the central bank to sell its huge trove of mortgage securities anytime soon, easing fears the move would raise borrowing costs for home buyers.
“I currently do not anticipate that the Federal Reserve will sell any of its security holdings in the near term, at least until after policy tightening has gotten underway and the economy is clearly in a sustainable recovery,” he said in testimony prepared for a congressional hearing Wednesday that was postponed due to a snowstorm.
But Bernanke provided his most detailed blueprint yet for draining the massive reserves of cash the Fed pumped into credit markets after the financial crisis.
That cooled the markets. The Dow Jones industrial average closed down 20.26 points at 10,038. The Fed’s purchase of $1.25 trillion of mortgage-backed securities has pushed down mortgage rates and stoked home sales.
But some fear the massive liquidity will spark inflation. Bernanke said the most drastic option – selling securities – isn’t imminent, and interest rates will stay low for “an extended period.” Conrad DeQuadros of RDQ Economics doesn’t expect the Fed to raise rates until next year. The Fed plans to end purchases of mortgage securities by March 31. Economists such as DeQuadros say that will lead to modestly higher mortgage rates.
Bernanke reiterated that the Fed has other tools to drain reserves from credit markets to stave off inflation. It could boost the interest rate it pays banks to keep excess cash at the Fed, and offer a “term deposit” that would pay an even higher rate for a bank to park cash for a longer period. Both would discourage lending. The Fed also could sell its securities with an agreement to buy them back in the future. Such reverse repurchase agreements, or “reverse repos,” would temporarily siphon cash from markets.
Bernanke said under a possible scenario, the Fed would use various tools to remove small amounts of cash from credit markets, then increase the interest rate it pays on bank reserves to reclaim larger amounts. But if cash must be withdrawn rapidly, it would also offer term deposits and conduct reverse repos.
Bernanke said the Fed plans soon to raise the discount rate it charges banks for emergency loans, a rate it lowered amid the financial crisis. Economists say that does not herald higher interest rates for consumers.
“It’s consistent with the Fed saying … the crisis is past us,” says James O’Sullivan, chief economist of MF Global.
Please let me know what type of property your thinking of, where in the Keys you'd like to be and your price range and I will work to find just the right property for you.
Rob Skeel , Realtor- e-Pro - Cell --305-393-6300 Email--rob@robskeel.com
Century 21 Keysearch Realty--877-660-4637
Web Site-- www.RobSkeel.com
YOUR FLORIDA KEYS REAL ESTATE CONNECTION
• Sell low and buy low. Because all property values are down, the loss on the property a homeowner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he’ll be in better shape.
• Downpayment help is widely available. While nothing-down loans have disappeared, it’s easy to find downpayment assistance for lower-income and first-time homebuyers. Programs vary all over the country, but one good way to find them is to search online for “downpayment assistance programs” and the name of your region.
• Your Uncle Sam has money to share. Besides the $8,000 first-time homebuyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
• Good help is available. Really talented real estate practitioners, contractors and designers are available and eager for business.
Fed’s plans bode well for homebuyers WASHINGTON – Feb. 11, 2010 – Federal Reserve Chairman Ben Bernanke said Wednesday he doesn’t expect the central bank to sell its huge trove of mortgage securities anytime soon, easing fears the move would raise borrowing costs for home buyers.
“I currently do not anticipate that the Federal Reserve will sell any of its security holdings in the near term, at least until after policy tightening has gotten underway and the economy is clearly in a sustainable recovery,” he said in testimony prepared for a congressional hearing Wednesday that was postponed due to a snowstorm.
But Bernanke provided his most detailed blueprint yet for draining the massive reserves of cash the Fed pumped into credit markets after the financial crisis.
That cooled the markets. The Dow Jones industrial average closed down 20.26 points at 10,038. The Fed’s purchase of $1.25 trillion of mortgage-backed securities has pushed down mortgage rates and stoked home sales.
But some fear the massive liquidity will spark inflation. Bernanke said the most drastic option – selling securities – isn’t imminent, and interest rates will stay low for “an extended period.” Conrad DeQuadros of RDQ Economics doesn’t expect the Fed to raise rates until next year. The Fed plans to end purchases of mortgage securities by March 31. Economists such as DeQuadros say that will lead to modestly higher mortgage rates.
Bernanke reiterated that the Fed has other tools to drain reserves from credit markets to stave off inflation. It could boost the interest rate it pays banks to keep excess cash at the Fed, and offer a “term deposit” that would pay an even higher rate for a bank to park cash for a longer period. Both would discourage lending. The Fed also could sell its securities with an agreement to buy them back in the future. Such reverse repurchase agreements, or “reverse repos,” would temporarily siphon cash from markets.
Bernanke said under a possible scenario, the Fed would use various tools to remove small amounts of cash from credit markets, then increase the interest rate it pays on bank reserves to reclaim larger amounts. But if cash must be withdrawn rapidly, it would also offer term deposits and conduct reverse repos.
Bernanke said the Fed plans soon to raise the discount rate it charges banks for emergency loans, a rate it lowered amid the financial crisis. Economists say that does not herald higher interest rates for consumers.
“It’s consistent with the Fed saying … the crisis is past us,” says James O’Sullivan, chief economist of MF Global.
Please let me know what type of property your thinking of, where in the Keys you'd like to be and your price range and I will work to find just the right property for you.
Rob Skeel , Realtor- e-Pro - Cell --305-393-6300 Email--rob@robskeel.com
Century 21 Keysearch Realty--877-660-4637
Web Site-- www.RobSkeel.com
YOUR FLORIDA KEYS REAL ESTATE CONNECTION
Tuesday, February 2, 2010
Real Estate Information regarding Fannie Mae & Future Interest rates
Fannie to offer closing cost aid on foreclosures WASHINGTON – Feb. 1, 2010 – Fannie Mae, the largest provider of residential home funding in the United States, announced on Friday that it would start to pay closing costs for buyers of foreclosed homes in its inventory. Buyers of qualified properties will get up to 3.5 percent in closing costs or an equivalent amount for the purchase of new appliances.
Fannie wants to clear out the nearly 50,000 properties it has in inventory – listed on HomePath.com, the Web site created by Fannie Mae last year to sell the growing number of foreclosed homes. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010. Applicable properties can be found on HomePath.com, along with property descriptions, photographs, community and school information, and more.
In addition, some Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing, which offers qualified homebuyers the ability to purchase with as little as 3 percent down.
© 2010 Florida Realtors®
It’s not if interest rates will rise but when COLLEGE STATION, Texas – Feb. 1, 2010 – According to Dr. Mark Dotzour, chief economist for the Real Estate Center at Texas A&M University, mortgage interest rates are low right now but don’t expect that to last. When the government quits buying mortgage-backed securities, rates will head up and away.
Dotzour says that mortgage rates were low at the end of 2009 because “the global consensus among bondholders appeared to be that inflation will remain low in the United States for an extended period. This caused the ten-year U.S. Treasury rate to fall to between 3.2 and 3.6 percent for much of the second half of 2009.”
With extraordinary levels of federal deficit spending, Dotzour says it is unlikely that the low-inflation scenario will be popular when the economy starts to rebound. Consumers should expect mortgage rates to rise when signs of improvement appear.
A second factor contributing to the low mortgage rates is the Federal Reserve Bank’s unprecedented purchase of nearly all the mortgage-backed securities issued by Fannie Mae and Freddie Mac in 2009, he adds. Totaling more than $1 trillion for the year, this program has been extended through the end of March 2010.
“The Fed has never done this before in its history,” says Dotzour. “They are doing this to stimulate the economy by keeping mortgage rates as low as possible. When the Fed stops buying these securities from Fannie and Freddie, mortgage rates are likely to increase, and possibly quite abruptly.”
How far will rates go up when the Fed terminates its buying program? Dotzour says that question is difficult to answer precisely because this has never been done before; but many experts think that rates could move up one-half to 1 percent.
“The combination of extraordinarily low mortgage rates and current price levels are making homes extremely affordable to American families. In fact, national and Texas housing affordability indices indicate that homes are more affordable than ever. But this will not last. When the economy recovers and the Fed stops purchasing mortgages, rates will rise.”
© 2010 Florida Realtors®
YOUR FLORIDA KEYS REAL ESTATE CONNECTION
Rob Skeel , Realtor- e-Pro - Cell --305-393-6300 Email--rob@robskeel.com
Century 21 Keysearch Realty--877-660-4637
Web Site-- www.RobSkeel.com
Fannie wants to clear out the nearly 50,000 properties it has in inventory – listed on HomePath.com, the Web site created by Fannie Mae last year to sell the growing number of foreclosed homes. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010. Applicable properties can be found on HomePath.com, along with property descriptions, photographs, community and school information, and more.
In addition, some Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing, which offers qualified homebuyers the ability to purchase with as little as 3 percent down.
© 2010 Florida Realtors®
It’s not if interest rates will rise but when COLLEGE STATION, Texas – Feb. 1, 2010 – According to Dr. Mark Dotzour, chief economist for the Real Estate Center at Texas A&M University, mortgage interest rates are low right now but don’t expect that to last. When the government quits buying mortgage-backed securities, rates will head up and away.
Dotzour says that mortgage rates were low at the end of 2009 because “the global consensus among bondholders appeared to be that inflation will remain low in the United States for an extended period. This caused the ten-year U.S. Treasury rate to fall to between 3.2 and 3.6 percent for much of the second half of 2009.”
With extraordinary levels of federal deficit spending, Dotzour says it is unlikely that the low-inflation scenario will be popular when the economy starts to rebound. Consumers should expect mortgage rates to rise when signs of improvement appear.
A second factor contributing to the low mortgage rates is the Federal Reserve Bank’s unprecedented purchase of nearly all the mortgage-backed securities issued by Fannie Mae and Freddie Mac in 2009, he adds. Totaling more than $1 trillion for the year, this program has been extended through the end of March 2010.
“The Fed has never done this before in its history,” says Dotzour. “They are doing this to stimulate the economy by keeping mortgage rates as low as possible. When the Fed stops buying these securities from Fannie and Freddie, mortgage rates are likely to increase, and possibly quite abruptly.”
How far will rates go up when the Fed terminates its buying program? Dotzour says that question is difficult to answer precisely because this has never been done before; but many experts think that rates could move up one-half to 1 percent.
“The combination of extraordinarily low mortgage rates and current price levels are making homes extremely affordable to American families. In fact, national and Texas housing affordability indices indicate that homes are more affordable than ever. But this will not last. When the economy recovers and the Fed stops purchasing mortgages, rates will rise.”
© 2010 Florida Realtors®
YOUR FLORIDA KEYS REAL ESTATE CONNECTION
Rob Skeel , Realtor- e-Pro - Cell --305-393-6300 Email--rob@robskeel.com
Century 21 Keysearch Realty--877-660-4637
Web Site-- www.RobSkeel.com
Tuesday, January 26, 2010
Florida Home Sales & Interest Rates
If your thinking about purchasing Florida Keys property the cost of your purchase may start going up as the year progresses.
Please contact me and let me know what type of property and where you'd like to be and your price range and I will work to find just what your looking for.
Rob Skeel Realtor
Century 21 Keysearch Realty
305-393-6300
rob@robskeel.com
Florida’s existing home, condo sales up in December 2009
Dec. existing-home sales down, prices rise; 2009 sales up, says NAR.
ORLANDO, Fla. – Jan. 25, 2010 – Florida’s existing home sales rose in December, marking 16 months that sales activity has increased in the year-to-year comparison, according to the latest housing data released by Florida Realtors®.
Existing home sales rose 33 percent last month with a total of 14,630 homes sold statewide compared to 11,013 homes sold in December 2008, according to Florida Realtors. Statewide existing home sales last month increased 4.3 percent over statewide sales activity in November.
Florida Realtors also reported a 91 percent increase in statewide sales of existing condos in December compared to the previous year’s sales figure; statewide existing condo sales last month rose 22 percent over the total units sold in November.
Seventeen of Florida’s metropolitan statistical areas (MSAs) reported increased existing home sales and higher condo sales in December. A majority of the state’s MSAs have reported increased sales for 18 consecutive months.
Florida’s median sales price for existing homes last month was $140,400; a year ago, it was $155,300 for a 10 percent decrease. Housing industry analysts with the National Association of Realtors® (NAR) note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.
The national median sales price for existing single-family homes in November 2009 was $171,900, down 4.4 percent from a year earlier, according to NAR. In California, the statewide median resales price was $304,520 in November; in Massachusetts, it was $285,000; in Maryland, it was $245,569; and in New York, it was $210,000.
According to NAR’s latest outlook, home sales are seeing a boost from the federal homebuyer tax credit. “There are many more potential buyers who can enter the market in the months ahead,” said NAR Chief Economist Lawrence Yun. “Activity should ramp up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. In all, 4.4 million households are expected to claim the tax credit before it expires, and balance should be restored to the housing sector with inventories continuing to decline.”
In Florida’s year-to-year comparison for condos, 5,968 units sold statewide last month compared to 3,132 units in December 2008 for an increase of 91 percent. The statewide existing condo median sales price last month was $107,000; in December 2008 it was $130,300 for an 18 percent decrease. The national median existing condo price was $178,000 in November 2009, according to NAR.
Interest rates for a 30-year fixed-rate mortgage averaged 4.93 percent last month, significantly lower than the average rate of 5.29 percent in December 2008, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
Lifelines dry up for mortgage lending WASHINGTON – Jan. 25, 2010 – For more than a year, the government pulled out the stops to revive homebuying by driving down mortgage rates.
Now, whether the housing market is ready or not, the government is pulling out.
The wind-down of federal support for mortgage rates, set to end in two months, is a momentous test of whether the Obama administration and the Federal Reserve have succeeded in jump-starting the housing market and ensuring it can hold its own. The stakes for the economy are massive: If the market again falls into a tailspin, homeowners could face another wave of trouble, and it would deal a body blow to President Obama’s efforts to get the economy on track.
Keeping the mortgage rates at historic lows, which required a commitment of more than $1 trillion, was viewed within the administration as a central plank of the economic strategy last year, senior officials said. Though the policy did not attract as much attention as rescue efforts to bail out banks, it helped revitalize homebuying in some parts of the country and put money in the pockets of millions of homeowners who were able to refinance into lower monthly payments, the officials added.
“We did what we thought was necessary to stabilize the market, but we don’t think the government should continue special efforts forever,” said Michael S. Barr, an assistant secretary at the Treasury Department. “As you bring stability, private participants come back in. We do expect this now that the market has stabilized. I’m not going to say there will be no effect on rates, but we do think you are seeing market signs and market signals that there should be an orderly transition.”
A few federal officials and many industry advocates disagree, saying the government is exiting too soon. They offer dire warnings of higher rates and a slowdown in home sales. Fed leaders say they will end a marquee program supporting the mortgage markets in March. Obama’s economic team, led by Treasury Secretary Timothy F. Geithner, has decided not to replace it and has been shutting down its own related initiatives.
Over the past year, these programs have enabled prospective homebuyers to get cheap loans, helping those buying and selling property as well as those eager to refinance existing mortgages. If the end of the initiative drives up interest rates, say from 5 percent to 5.5 percent, homeowners could be deterred from refinancing, industry officials say. A sharper increase in rates could make homes too expensive for many buyers, forcing them from the market and causing the recent pickup in home sales to stall.
“Mortgage rates are the lifeblood of the housing market, and we have cautioned the Fed about the sudden stoppage of this program,” said Lawrence Yun, chief economist of the National Association of Realtors.
But senior government officials said it could be hard to reverse course without damaging the credibility of the Fed and the administration. If the government loses the trust of the financial markets, preparing them for policy changes could be tougher, possibly resulting in economic disruptions. The officials said they also worry that the mortgage market is becoming overly dependent on federal support, inserting the government too deeply into private enterprise.
Only a new crisis would be able to persuade the administration and the Fed to change their minds, officials said.
“This is a worthy experiment to see if they can begin exiting after providing an unprecedented amount of money to one sector of the economy,” said Mark Zandi, chief economist at Moody’s Economy.com. “It’s a close call, though. I can see why they are debating it.”
The Fed’s policymaking body sets a key interest rate at periodic meetings, which in turn influences rates for all kinds of loans. But mortgage rates also are shaped by the health of the market financing these loans.
Banks typically create giant pools of home loans and turn them into securities that can be traded on the open market. When the system is working, many investors buy these mortgage-backed securities, providing a stream of money for lenders so they can make loans at relatively cheap rates. But the trading of these securities seized up when the financial crisis struck and panicked investors. Government officials feared that the mortgage market would collapse.
The Fed and the Treasury stepped into the breach, becoming the only major buyers of these mortgage-related securities, and they kept the mortgage market flush with cash. The Treasury spent about $220 billion, and the Fed pledged $1.25 trillion, the single largest foray the central bank has made into the markets since the onset of the crisis. In essence, the Fed has been printing money and funneling it to people looking to buy a house or refinance an existing mortgage.
At the same time, the federal government stood behind mortgage-finance companies Fannie Mae and Freddie Mac by taking them over and pledging to cover their losses. That helped the firms lower borrowing costs, since lenders know they can’t fail, and the companies passed on their savings to mortgage borrowers in the form of low rates.
Combined, these federal efforts helped push down the rates ordinary Americans pay for a mortgage. The 30-year fixed-rate mortgage declined from 6.04 percent in November 2008, according to Freddie Mac data, and hit an all-time low of 4.71 percent about a year later.
Refinancings surged, while homebuying perked up. Existing-home sales climbed nearly 10 percent in September, their highest level in more than two years.
The policy was the government’s most effective salve for the ailing housing market at a time when other initiatives, such as the administration’s attempts to modify the mortgages of struggling homeowners, produced far more disappointing results.
Now the government wants to end its support for low rates and has been striving to persuade others to buy mortgage securities.
The success of this approach hinges on the willingness of private investors, from China to big Wall Street funds, to buy large amounts of the mortgage securities and fill the void left by the government.
On Christmas Eve, Treasury officials announced a move that would cover losses suffered by investors who buy these securities from Fannie Mae and Freddie Mac, which together now back about half of the nation’s $12 trillion mortgage market. The goal was simple, officials said. They wanted private investors to be reassured that mortgage securities are safe to buy.
As the economy showed signs of recovery at the end of last year, the administration and the Fed decided to end their support.
The Treasury stopped buying mortgage securities in December. The Fed said it would taper off purchases gradually, ending them by March 31.
Obama’s economic team could have raised the limits on how much mortgage securities Fannie and Freddie can buy, allowing those firms to replace the Fed’s purchasing program. But Barr said the administration thinks the mortgage business will stand on its own without such special assistance, similar to the way the nation’s biggest banks weaned themselves off federal bailout funds by raising private capital.
“The basic goal is to implement a gradual process where the government’s role in the economy goes down,” Barr said. “It has to be consistent with the basic goal of stability, but it is appropriate.”
Administration and Fed officials expressed confidence that rates will rise only modestly – perhaps a quarter of a percentage point. They attribute their optimism to the lengthy notice they have given the market. The markets already should have anticipated the government’s exit by adjusting interest rates higher. Yet mortgage rates have been falling slightly the past few weeks.
The optimism at the White House and the Fed, however, is not shared across the government. A few senior policymakers at the central bank view the economic recovery as still too fragile, suggesting that purchases perhaps should expand further. These dissenters also warn that mortgage rates could shoot up, perhaps to 6 percent or higher, because private investors buying securities would demand a greater rate of return than the Fed. To reach it, lenders may have to raise rates for consumers.
“Presumably, there is pent-up demand from the private sector, but the question is: At what rate are they going to be interested?” said Eric S. Rosengren, the president of the Federal Reserve Bank of Boston, who has indicated that he supports expanding the Fed’s mortgage securities purchase program.
There also could be unintended consequences to the government’s pull-out. Last year, big investors such as Pimco sold their mortgage-backed securities to the government and used that money to buy bonds and stocks. That extra cash, which propped up stock prices, could drain away after federal support ends.
Real estate and mortgage finance officials said the timing of the government’s exit seems especially ill-conceived, since the Fed’s support would end just a month before a homebuyer tax credit program, which the real estate industry has credited with jump-starting home sales.
Given the importance of the housing market, some industry officials doubt whether the government will follow through with its pledge to exit the mortgage market in March. Fannie and Freddie officials say that the companies together can buy about $300 billion of mortgage securities by the end of the year before they hit their federally mandated limits. Though it appears reluctant to do so, the administration could use that buying power to cushion the blow after the Fed’s program ends, the industry officials said.
Please contact me and let me know what type of property and where you'd like to be and your price range and I will work to find just what your looking for.
Rob Skeel Realtor
Century 21 Keysearch Realty
305-393-6300
rob@robskeel.com
Florida’s existing home, condo sales up in December 2009
Dec. existing-home sales down, prices rise; 2009 sales up, says NAR.
ORLANDO, Fla. – Jan. 25, 2010 – Florida’s existing home sales rose in December, marking 16 months that sales activity has increased in the year-to-year comparison, according to the latest housing data released by Florida Realtors®.
Existing home sales rose 33 percent last month with a total of 14,630 homes sold statewide compared to 11,013 homes sold in December 2008, according to Florida Realtors. Statewide existing home sales last month increased 4.3 percent over statewide sales activity in November.
Florida Realtors also reported a 91 percent increase in statewide sales of existing condos in December compared to the previous year’s sales figure; statewide existing condo sales last month rose 22 percent over the total units sold in November.
Seventeen of Florida’s metropolitan statistical areas (MSAs) reported increased existing home sales and higher condo sales in December. A majority of the state’s MSAs have reported increased sales for 18 consecutive months.
Florida’s median sales price for existing homes last month was $140,400; a year ago, it was $155,300 for a 10 percent decrease. Housing industry analysts with the National Association of Realtors® (NAR) note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.
The national median sales price for existing single-family homes in November 2009 was $171,900, down 4.4 percent from a year earlier, according to NAR. In California, the statewide median resales price was $304,520 in November; in Massachusetts, it was $285,000; in Maryland, it was $245,569; and in New York, it was $210,000.
According to NAR’s latest outlook, home sales are seeing a boost from the federal homebuyer tax credit. “There are many more potential buyers who can enter the market in the months ahead,” said NAR Chief Economist Lawrence Yun. “Activity should ramp up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. In all, 4.4 million households are expected to claim the tax credit before it expires, and balance should be restored to the housing sector with inventories continuing to decline.”
In Florida’s year-to-year comparison for condos, 5,968 units sold statewide last month compared to 3,132 units in December 2008 for an increase of 91 percent. The statewide existing condo median sales price last month was $107,000; in December 2008 it was $130,300 for an 18 percent decrease. The national median existing condo price was $178,000 in November 2009, according to NAR.
Interest rates for a 30-year fixed-rate mortgage averaged 4.93 percent last month, significantly lower than the average rate of 5.29 percent in December 2008, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
Lifelines dry up for mortgage lending WASHINGTON – Jan. 25, 2010 – For more than a year, the government pulled out the stops to revive homebuying by driving down mortgage rates.
Now, whether the housing market is ready or not, the government is pulling out.
The wind-down of federal support for mortgage rates, set to end in two months, is a momentous test of whether the Obama administration and the Federal Reserve have succeeded in jump-starting the housing market and ensuring it can hold its own. The stakes for the economy are massive: If the market again falls into a tailspin, homeowners could face another wave of trouble, and it would deal a body blow to President Obama’s efforts to get the economy on track.
Keeping the mortgage rates at historic lows, which required a commitment of more than $1 trillion, was viewed within the administration as a central plank of the economic strategy last year, senior officials said. Though the policy did not attract as much attention as rescue efforts to bail out banks, it helped revitalize homebuying in some parts of the country and put money in the pockets of millions of homeowners who were able to refinance into lower monthly payments, the officials added.
“We did what we thought was necessary to stabilize the market, but we don’t think the government should continue special efforts forever,” said Michael S. Barr, an assistant secretary at the Treasury Department. “As you bring stability, private participants come back in. We do expect this now that the market has stabilized. I’m not going to say there will be no effect on rates, but we do think you are seeing market signs and market signals that there should be an orderly transition.”
A few federal officials and many industry advocates disagree, saying the government is exiting too soon. They offer dire warnings of higher rates and a slowdown in home sales. Fed leaders say they will end a marquee program supporting the mortgage markets in March. Obama’s economic team, led by Treasury Secretary Timothy F. Geithner, has decided not to replace it and has been shutting down its own related initiatives.
Over the past year, these programs have enabled prospective homebuyers to get cheap loans, helping those buying and selling property as well as those eager to refinance existing mortgages. If the end of the initiative drives up interest rates, say from 5 percent to 5.5 percent, homeowners could be deterred from refinancing, industry officials say. A sharper increase in rates could make homes too expensive for many buyers, forcing them from the market and causing the recent pickup in home sales to stall.
“Mortgage rates are the lifeblood of the housing market, and we have cautioned the Fed about the sudden stoppage of this program,” said Lawrence Yun, chief economist of the National Association of Realtors.
But senior government officials said it could be hard to reverse course without damaging the credibility of the Fed and the administration. If the government loses the trust of the financial markets, preparing them for policy changes could be tougher, possibly resulting in economic disruptions. The officials said they also worry that the mortgage market is becoming overly dependent on federal support, inserting the government too deeply into private enterprise.
Only a new crisis would be able to persuade the administration and the Fed to change their minds, officials said.
“This is a worthy experiment to see if they can begin exiting after providing an unprecedented amount of money to one sector of the economy,” said Mark Zandi, chief economist at Moody’s Economy.com. “It’s a close call, though. I can see why they are debating it.”
The Fed’s policymaking body sets a key interest rate at periodic meetings, which in turn influences rates for all kinds of loans. But mortgage rates also are shaped by the health of the market financing these loans.
Banks typically create giant pools of home loans and turn them into securities that can be traded on the open market. When the system is working, many investors buy these mortgage-backed securities, providing a stream of money for lenders so they can make loans at relatively cheap rates. But the trading of these securities seized up when the financial crisis struck and panicked investors. Government officials feared that the mortgage market would collapse.
The Fed and the Treasury stepped into the breach, becoming the only major buyers of these mortgage-related securities, and they kept the mortgage market flush with cash. The Treasury spent about $220 billion, and the Fed pledged $1.25 trillion, the single largest foray the central bank has made into the markets since the onset of the crisis. In essence, the Fed has been printing money and funneling it to people looking to buy a house or refinance an existing mortgage.
At the same time, the federal government stood behind mortgage-finance companies Fannie Mae and Freddie Mac by taking them over and pledging to cover their losses. That helped the firms lower borrowing costs, since lenders know they can’t fail, and the companies passed on their savings to mortgage borrowers in the form of low rates.
Combined, these federal efforts helped push down the rates ordinary Americans pay for a mortgage. The 30-year fixed-rate mortgage declined from 6.04 percent in November 2008, according to Freddie Mac data, and hit an all-time low of 4.71 percent about a year later.
Refinancings surged, while homebuying perked up. Existing-home sales climbed nearly 10 percent in September, their highest level in more than two years.
The policy was the government’s most effective salve for the ailing housing market at a time when other initiatives, such as the administration’s attempts to modify the mortgages of struggling homeowners, produced far more disappointing results.
Now the government wants to end its support for low rates and has been striving to persuade others to buy mortgage securities.
The success of this approach hinges on the willingness of private investors, from China to big Wall Street funds, to buy large amounts of the mortgage securities and fill the void left by the government.
On Christmas Eve, Treasury officials announced a move that would cover losses suffered by investors who buy these securities from Fannie Mae and Freddie Mac, which together now back about half of the nation’s $12 trillion mortgage market. The goal was simple, officials said. They wanted private investors to be reassured that mortgage securities are safe to buy.
As the economy showed signs of recovery at the end of last year, the administration and the Fed decided to end their support.
The Treasury stopped buying mortgage securities in December. The Fed said it would taper off purchases gradually, ending them by March 31.
Obama’s economic team could have raised the limits on how much mortgage securities Fannie and Freddie can buy, allowing those firms to replace the Fed’s purchasing program. But Barr said the administration thinks the mortgage business will stand on its own without such special assistance, similar to the way the nation’s biggest banks weaned themselves off federal bailout funds by raising private capital.
“The basic goal is to implement a gradual process where the government’s role in the economy goes down,” Barr said. “It has to be consistent with the basic goal of stability, but it is appropriate.”
Administration and Fed officials expressed confidence that rates will rise only modestly – perhaps a quarter of a percentage point. They attribute their optimism to the lengthy notice they have given the market. The markets already should have anticipated the government’s exit by adjusting interest rates higher. Yet mortgage rates have been falling slightly the past few weeks.
The optimism at the White House and the Fed, however, is not shared across the government. A few senior policymakers at the central bank view the economic recovery as still too fragile, suggesting that purchases perhaps should expand further. These dissenters also warn that mortgage rates could shoot up, perhaps to 6 percent or higher, because private investors buying securities would demand a greater rate of return than the Fed. To reach it, lenders may have to raise rates for consumers.
“Presumably, there is pent-up demand from the private sector, but the question is: At what rate are they going to be interested?” said Eric S. Rosengren, the president of the Federal Reserve Bank of Boston, who has indicated that he supports expanding the Fed’s mortgage securities purchase program.
There also could be unintended consequences to the government’s pull-out. Last year, big investors such as Pimco sold their mortgage-backed securities to the government and used that money to buy bonds and stocks. That extra cash, which propped up stock prices, could drain away after federal support ends.
Real estate and mortgage finance officials said the timing of the government’s exit seems especially ill-conceived, since the Fed’s support would end just a month before a homebuyer tax credit program, which the real estate industry has credited with jump-starting home sales.
Given the importance of the housing market, some industry officials doubt whether the government will follow through with its pledge to exit the mortgage market in March. Fannie and Freddie officials say that the companies together can buy about $300 billion of mortgage securities by the end of the year before they hit their federally mandated limits. Though it appears reluctant to do so, the administration could use that buying power to cushion the blow after the Fed’s program ends, the industry officials said.
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