St. Pete Times article explains how to buy a 180K home for 121K

Should you buy now? Discounts look favorable in Tampa Housing Market-2009

Here’s a column from today’s St. Petersburg Times:  It’s actually the most cut and dry, easy to understand article that I’ve seen. It explains all the ways you can use today’s Tampa Real Estate Market, Low Interest Rates and the National Home Buyer Tax Credit to your advantage. 

It’s a terrible time to buy a home, the naysayers claim. They cite the uncertain job market, the threat of further home price declines, the plundering of retirement accounts. At the risk of raining brimstone on my head, I’ll take the opposite view.

Home buyers enjoy three discounts that might not survive 2009: a foreclosure discount, a tax credit discount and an interest rate discount.

Let’s start with a typical $180,000, three-bedroom, two-bath home for sale in almost any city or suburb around the region.

Foreclosure houses — repossessed by the bank or soon to arrive at that dismal destination — have been selling for about 75 percent of the price of regular homes. The market is rich with such bargains. So let’s take 25 percent — or $45,000 — off the top of that $180,000 home.  That makes $135,000.

Clearwater Yacht Club

We’ll move on to the $8,000 federal tax credit for first-time home buyers. The government defines that as someone who hasn’t owned a primary residence in the past three years. And the beauty of the tax credit is that you won’t have to pay it back, if you stay in the home for 3 years

But to get the $8,000 you have to buy a house by December 2009. Take that $8,000 off the $135,000. We’re down to $127,000. So far, so good.

We still haven’t added in the interest discount. Rates have fallen to historic lows. This week you could get a 30-year fixed mortgage for about 5.2 percent, as long as your credit’s good and your job pays enough. That’s a point lower than rates from 2006, when Tampa Bay area home prices peaked.

Economists predict rates will rise next year as the economy recovers. Shaving off that point saves you about $1,000 a year on your loan. Assume you’ll live in the house six years. That’s close to the average stay in these parts. That’s an additional $6,000 to subtract. So that’s $180,000, minus $45,000 for the foreclosure discount, minus $8,000 for the tax credit discount, minus $6,000 for the interest rate discount.

Our home price is down to $121,000, a tad below the Tampa Bay area’s median sales price for January.  Not a bad deal.

February 27, 2009 | Permalink

The only catch I feel; according to the article is coming up with 10% down to do conventional financing. You can always ask the seller’s to pay for a portion of closing costs and prepaid items, however banks have their limit as to how much a seller is allowed to contribute. 

An FHA approved home or condo only requires 3.5% down, which I think is a better option for some home buyers who may be purchasing their first home.

If you are in the market to buy a home we would be happy to help you find the best neighborhoods in the Tampa Bay Area. Email: realtyrae@yahoo.com with the subject: buyer’s agent.

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2009 Housing Market Forecast-Tampa Bay Area

With 2009 rapidly approaching, we must consider the changes that have occurred in our Real Estate market in Tampa, and plan for what we will experience in the coming year. 

While 2009 will be a difficult year for many, it will also bring unprecedented opportunities for the few who choose to adapt now, before it’s too late.  

The misconception comes when people are listening to the national media and do not consider the specific market conditions here in the Tampa Bay area; which are NOT the same.

Here’s why: 

• Florida is and always will be a tourist and retirement destination. You can’t compare us to the Detriot Housing market.

• We have affordable housing, compared to the number one state for foreclosures (California), we are number 2.  Our average median sales price is around 180K, as of last month.

• Northerners who are planning to retire and purchase their second home are taking action now while prices are at their bottom, instead of waiting until they retire. 

• Believe it or not, people still have money and are paying cash for homes instead of investing in the stock market.  This has been my personal experience just over the last few months.

2009 Housing Market Forecast 

 

1. Prices will continue to fall but dramatic price drops such as those we saw between 2006 and 2008 are unlikely.
2. Affordability will drive an increase in existing-home sales.  Proper pricing, as always, is essential.
3. More real estate agents will be leaving the business as they fail to adapt to market changes. (not me), let’s face it; if you have survived this long you have to love what you do!
4. Mortgage defaults will remain elevated as job and economic growth slows and the next significant wave of mortgages reset.
5. Short Sales will increase as loan modification efforts are exhausted and the majority of existing loan mods default again.  Sellers will ask themselves if they are better off selling their homes on a short sale, absorbing the hit to their credit reports and becoming renters for a few years.   
6. Real estate agents who specialize in short sales, bank owned property and foreclosures will see an increase of business. 

The process of purchasing a home can be overwhelming, especially with our new wave of short sales and foreclosures.  Make an informed decision, know all your options and choose carefully. 

 

If you would like advice on purchasing a distressed property please feel free to contact us: info@thetamparealestateinsider.com or call 813 784 7744

Attend one of our Real Estate Meetup Groups

 

Rae Catanese, PA

Real Estate Agent

Prudential Tropical Realty-Tampa, Fl

Tampa, Florida Economic Real Estate Report 2008

I’ve been receiving a lot of requests for the 2008 Tampa Bay Economic Report, which addresses the Real Estate Housing Market here in the Bay area. It also has data on new construction housing starts

If you would like to receive a copy of this 30 page in depth analysis just send us an email with your request. The file is in PDF format so I cannot post it to the site.As a Real Estate agent working with buyers; these are the trends I’ve seen over the last 3 months in the Tampa Bay area.

• Buyers who are inquiring are investors that have money in REITS and realize that it makes good business sense to buy low.
• Mother’s are calling for their college kids; considering buying instead of renting.
• People wanting to move to Florida, or purchase a second home to buy now and have for retirement.
• Buyer’s who need to relocate for their jobs.

Invest in that beach house you’ve always wanted. Beachfront and Waterfront Property is at an all time low in Clearwater, St. Petersburg, Indian Rocks Beach, and all the beaches within a 30-45 minute drive from the Tampa Airport.

We track where people are from through the site; so I can tell you most of the buyers are coming from New York, Pennsylvania and Ohio. Even International buyers from Shanghai. If that isn’t proof that things are turning around I don’t know what is.

Indicators like these are a very good sign that the bottom has bottomed out, and that now is the best time to buy a home. Yes, people type into Google “when is the best time to buy a home?”

Thinking about buying or selling real estate in the Tampa Bay Area?

Have a Real Estate question?
Feel free to email or call us 813-784-7744
Rae Catanese, PA and Michelle Jordan, PA
Realtors.

Search MLS
Prudential Tropical Realty

Relocating? Consider three things when moving to Tampa Bay

Determining the most desirable neighborhoods means considering three things……….
Convenience, Location and PriceConvenience: I recently began working with a couple who has rented for the past five years in the Feather Sound area of St. Petersburg, but have realized that there is no better time to buy a condominium in the Tampa/St. Pete area than now. They are getting ready to retire which means the maintenance of a home is something they want to avoid. Isn’t that what retirement is all about?

Location: These neighborhoods are located in a very convenient locations. They provide easy access to Tampa, St. Pete and major highways. Shopping and restaurants are all within a couple miles. For people who work at Raymond James Headquarters in St. Pete, or Franklin Templeton, the Feather Sound Community is an ideal location! Feather Sound is also 10 minutes to Tampa Int’l Airport and the Westshore Plaza Shopping mall.

Price: Although there are many great deals for all types of buyers today; buyer’s who have the best chance of getting a great deal are able to pay cash and close quickly. My clients are in the driver’s seat because they can do both! In this tight seller’s market with almost a 2 year supply of housing inventory on the market Cash IS King! Every property on the market is negotiable; so ask for comparable properties sold with in the past year. Offer less and negotiate, negotiate….you are in the driver’s seat.

As an experienced realtor who believes in showing properties matched to the buyers’ needs, I was able to show them several properties in the Audubon Condominiums in Feather Sound and have located several more condos for them to preview as well in Clearwater.

Sunshine Skyway Bridge, Tampa Bay

If you are relocating to the Tampa, St. Pete or Clearwater areas and need advice on the best places to live, give me a call.

See also: Feather Sound Community-Clearwater, FL

Thinking about buying or selling real estate in the Tampa Bay Area? Have a Real Estate question?
Feel free to email or call us 813-784-7744
Rae Catanese and Michelle Jordan
Realtors.

Search MLS
Prudential Tropical Realty

What is most important to you? Pick one of the three and narrow your search from there.

What the Media Doesn’t tell you about the Tampa Real Estate Market-2008

Written By:
Rae Catanese,
Realtor-Tampa, Fl

Just wanted to share with you some of the trends we are noticing right now in the Tampa Bay Real Estate market.

One, the buyers market is starting to pick up. You see all the ads, billboards saying NOW IS THE TIME TO BUY. That statement is true and here’s why.

I’ve been working with 2 buyers and the usual amount of homes we see are six. In both cases, Two, of the the six are usually in a Short-Sale or Pre-Foreclosure status. Another two of the six are priced below what they paid if they purchased in the past 2 years. That’s a total of 4 out of 6 properties that you can get a really good deal on.

People are selling their homes for various reasons now. Not because they want to “see what they can get. ” Everyone already knows now is not the time to be a seller. Sellers and buyers are hearing that the market won’t pick up until the end of 2008. Why wait? If a home is on the market it usually means they HAVE TO SELL. Whether it is because of a job relocation, divorce or they just can’t afford to make the payment due to the increase in taxes and insurance the past 2 years.

Sellers have gotten in over their heads, and those who care about their credit would rather just take a loss, then risk foreclosure. The loss can be taken as a tax write off. People who make money need it anyway.

Sellers also receive a tax credit if they sold their home for less than what was owed; which is retroactive to 2007.

If you’ve been on the fence about buying a home in Tampa; and after reading this article you decide to start your search process, please contact us.

Read more about the seller tax credit in Florida

Thinking about buying or selling real estate in the Tampa Bay Area?
Have a Real Estate question?
Feel free to email or call us 813-784-7744
Rae Catanese and Michelle Jordan
Realtors.

Search MLS
Prudential Tropical Realty

Article about how you can save money if you buy NOW-Tampa, Fl

Thursday, Feb. 14, 2008
Ignore the Headlines
By Dan Kadlec
Correction Appended: February 19, 2008

Famed Money Manager is perhaps best known for his timeless wisdom that you can beat the pros by focusing on stocks of companies where you either work or shop or have some other edge. But a more relevant Lynchism today is this gem: Ignore the headlines.

That’s no easy thing. How do you tune out all the chatter and ink on recession, housing, subprime woes, the credit crunch, rogue traders, insolvent bond insurers, $100 oil and nukes in Iran? It’s enough to make you sit on your thumbs and wait before making any big moves. But what, exactly, are you waiting for?

There has rarely been a moment in history when you couldn’t scare yourself into doing nothing. And yet, as Lynch observed nearly 20 years ago, “in spite of all the great and minor calamities that have occurred … all the thousands of reasons that the world might be coming to an end–owning stocks has continued to be twice as rewarding as owning bonds.”

A top reason to not buy stocks, in Lynch’s view, is if you don’t already own a home–in which case, that should be your first investment, since an owner-occupied home is nearly always profitable. Through a spokesman, Lynch reaffirmed these views to me–housing debacle and all.

When prices are falling, few people have the discipline to buy stocks, a house, gold, art or any other asset. But those who do pull the trigger excel in the long run. As John D. Rockefeller famously said, “The way to make money is to buy when blood is running in the streets.” And the streets are stained crimson.

Start with stocks. They have been pummeled this year. GDP braked sharply last quarter, and there has been plenty of panic about a recession. The Federal Reserve is slashing short-term interest rates at the fastest clip in decades. But if you stick to your steady, diversified plan while everyone else is retreating, you will be happy years from now.

For one thing, Fed rate cuts always lift the economy eventually, and the stock market typically starts responding just as headlines get gloomiest. Sure, the market could fall again before recovering. But the recession may be half over already–or we may avoid one altogether. You just never know.

As for housing, certainly some skepticism is in order. Formerly sizzling markets in Florida, Nevada, Arizona and California probably haven’t seen the worst headlines just yet, though they may well be close. And “jumbo” mortgages, those more than $417,000, are likely to remain artificially high for a few more months while banks work through their credit issues.

But let’s say you are emotionally ready to be a homeowner. You have good credit, plan to stay put for five years and have been waiting for the perfect entry point. It’s time to get serious–before an inevitable rise in interest rates wipes out your advantage. “The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher,” says Jim Svinth, chief economist at mortgage firm Lending Tree. So anything you gain by a further drop in prices might be offset by rising financing costs.

Consider a typical home that sells for $218,900. You put down 20% and get a 30-year fixed-rate mortgage at today’s rate of 5.5%. Monthly principal and interest come to $994.31. Let’s say that 12 months from now the same house goes for 10% less, or $197,010. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise a point, to 6.5%, your monthly payment would be $994.94 and you’d have saved nothing.

Meanwhile, home prices might steady and sellers might become less willing to negotiate. And you have spent a year living someplace you’d rather not be.

It’s more complicated if you must sell before you can buy. But that logjam won’t persist forever–and if it appears you’ll be trapped for a few years, try to refinance at today’s lower rates. Risks always seem most acute when the headlines give you ulcers. But that’s exactly when you should think long term–and get off your thumbs.

Thinking about buying or selling real estate in the Tampa Bay Area? Have a Real Estate question?
Feel free to email or call us 813-784-7744
Rae Catanese and Michelle Jordan
Realtors.

Search MLS
Prudential Tropical Realty

Best Mortgage Rates allow Buyers to take advantage of homeownership

Mortgage Rates Down to the Low Levels

Continuing declines in mortgage rates — down to the lowest levels we’ve seen in nearly two years — should be brightening the outlook for anyone interested in buying or selling real estate.

Equally important: Federal Reserve chairman Ben Bernanke has strongly hinted that the Fed will lower short-term rates by at least a half percentage point at the end of January, and might lower rates again at its next meeting if needed.

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When is a good time to buy Real Estate-Tampa, Fl

When is a good time to invest in Real Estate?

By: Rae Catanese, Realtor

Hyde Park Place-Condo

I was speaking with a friend of mine about the Real Estate Market in the Tampa Bay are, I wanted to give her the best advice in my opinion as a Real Estate Agent.

Through our website, we are able to track what people are searching for when they go online. Over the past couple months we’ve seen an increase in people wanting to know when the Real Estate Market is going to change, and the big question “when is the right time to buy”?

Right now sellers do not have their homes on the market unless they are in a situation where they really need to sell. At first, about a year and a half ago when our market started declining if sellers couldn’t sell then they just decided to rent. Because of all the condo conversions in our area there were plenty of renters to go around. Now finding a renter who can cover the mortgage has become a struggle as well due to a surplus of rentals.

Most of the media and talk on the street says that the market won’t rebound until late 2008 and maybe even 2009 in some areas.

These are the reasons I feel now is the BEST time to purchase.

1. If you can find a seller who purchased 4-5 years ago minimum chances are they have some equity in there home and can be more flexible with their price. They may have it on the market for 250,00 for instance but if they are in a situation that cannot be changed; such as divorce, relocation for a job, they need the money etc. they are going to be more likely to take a much lower price, let’s say between 200-225K.

2. If the home is vacant that’s even better! Now there’s no income AND they want to sell. Sellers are very motivated NOW because they are hearing the same news as everyone else, and they know it may take another year to sell if they keep their price the same and aren’t the lowest price in their neighborhood.

3. If you wait until people start hearing the market is rebounding then sellers will think they can hold out to get a better deal, stop dropping their prices and become less motivated. Or even worse, people who really don’t have to sell as urgently will start putting their homes on the market creating even more inventory which is something our market does not need.

These are the trends that we as Real Estate Agents are seeing in our market. What buyers may not realize is that sellers who have had their home on the market for a year, don’t want to wait or cannot afford to wait another year until things pick up.

Buyers who wait much longer are going to find that everyone who also has been waiting will now become their competition. Interest rates are the lowest they have been right now. When things start rebounding they could go back up again which is also something to keep in mind.

Benefits of using a Realtor
As Realtors we have access to how long a property has been on the market, the amount of price reductions they have had since they listed the property and if the home is vacant. This knowledge is critical in getting a good deal and taking advantage of the buyer’s market that we are in.

If you are looking to purchase a home and have been on the fence, I would encourage people to take a look now and see what type of deals sellers are willing to make.

If you are thinking of buying a home anywhere in the Tampa Bay Area please feel free to contact us with any questions.

Rae Catanese, Realtor
Prudential Tropical Realty
813-784-7744

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Buyers Market picking up due to low interest rates- Tampa, Fl

Beautiful Seminole Heights Bungalow

Lowest Rates in 25 Months

We couldn’t have asked for a better Thanksgiving treat than the one we got on Monday: the lowest 30-year fixed-rate in over two years. That’s right. For those of you who have been patiently waiting, here’s your chance to save anywhere from $5,000 to $7,500 or even more on the mortgage financing you’ve been looking for. Do not miss this great opportunity to cash in on the lowest rates since October 2005.

Here’s why you should act now:
Monday saw the lowest 30-year fixed interest rate in over two years. However, each time this interest rate reached previous low points, both last year and earlier this year, it began increasing and didn’t stop, climbing over 0.50% in the months that followed!

Prudential Tropical Realty- Tampa

Rae Catanese, Realtor at 813-784-7744 or email us.

Search all homes for sale in the Tampa Bay area: www.TampaBayDwellings.com

 

Fannie Mae and Freddie Mac tightened guidelines, announcing new Loan-Level Price Adjustments. In the first quarter of 2008, most borrowers who have good credit, but have FICO scores below 680, will now be forced either to pay more points at closing or incur a higher interest rate.

The amount that a borrower could be forced to pay, even if they’ve never been late on a payment, could be as much as 2.00% in points or an interest rate that’s 1.00% higher than the going rate.

On a $250,000 home loan, a borrower could have to pay up to $5,000 in order to receive normal market rates! Borrowers choosing the higher interest rate, under the worse case scenario, would stand to lose over $7,500 in just the first three years of the loan.

Choosing to wait could cost you money both in the form of higher market rates and points. This could well be the greatest holiday present you could treat yourself to this year, but only if you act fast!

For Real Estate questions, or to get pre-qualified for a loan contact us.

Home Prices Expected to Recover in 2008-Tampa, Fl

Home Prices Expected to Recover in 2008 As Inventories Decline Says NAR Wednesday, July 11, 2007 –

Home prices are expected to recover in 2008 with existing-home sales picking up late this year and new-home sales rising early next year, according to the latest forecast by the National Association of Realtors®.

Lawrence Yun, NAR senior economist, said a good buyers’ market has evolved. “Buyers now have an overwhelming advantage given the wide selection of homes available in many markets,” he said. “But with profit margins coming under pressure, homebuilders will limit new construction well into 2008.

This should help the overall inventory level to move steadily into a more balanced state.”

Existing-home sales are expected to total 6.11 million this year and 6.37 million in 2008, down from 6.48 million last year. New-home sales are projected at 865,000 in 2007 and 878,000 next year, compared with 1.05 million in 2006. Housing starts, including multifamily units, are forecast at 1.43 million units this year and 1.44 million in 2008, down from 1.80 million last year.Existing-home prices are likely to rise 1.8 percent to a median of $222,700 in 2008 after a 1.4 percent decline this year to $218,800.

The median new-home price should rise 2.2 percent to $222,700 next year following a 2.6 percent drop in 2007 to $240,100.“Markets that sharply reduce new construction in 2007 will generally experience respectable price increases in 2008,” Yun said. “Local conditions vary considerably, but with historically low mortgage interest rates this summer and sustained job gains, it could be a good time for first-time buyers with a long-term view to test the housing waters.”

Inflation, as measured by the Consumer Price Index, is projected at 2.6 percent in 2007, down from 3.2 percent last year. Inflation-adjusted disposable personal income should rise 3.0 percent this year, up from a 2.6 percent gain in 2006.

Originator Times, a BEXT Inc. publication http://originatortimes.com/ Copyright 2006 BEXT Inc. All Rights Reserved

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