3 Bedroom, 3 Bath
1,589 Square-Feet
$199,000

Downtown Convenience! Steps to Downtown! 10-15 Minutes to Beach! Updated & Renovated & Remodeled in 2002! Artistic Additions Such as, Glass Block Shower, Mosaic Tiles, Designer Paints * French Doors Leading to Expansive, Wrap-Around Lanai * Soaring Oak trees, Lots of Shading & Tropical Landscaping Make this Florida Paradise * Storage Shed in Fenced Backyard * Vaulted Ceiling in Family Room * Additional Formal Living Room * Tile Throughout * Breakfast Nook off Living Room & Gallery Kitchen * Recessed Lighting * Full Appliance Package * Solid Oak Cabinets in Kitchen & Energy Efficient Appliances * Quiet Family Street * Top-Rated School District * Location! Location! Location! Rare-Find!

   Click on smaller thumbnails below to preview larger images of the property

The drop means the number of people losing their homes will start to fall. But some pain from the crisis is sure to persist. Because millions of people are already in foreclosure, deeply discounted houses will put pressure on home prices for years.

“Housing is on a path to recovery,” said Mike Larson, a real estate analyst with Weiss Research. “It’s going to be a very long, gradual process.”

In high-foreclosure cities like Las Vegas, Phoenix and Miami, homes have lost roughly half their values from their peaks. But a report Friday from the Mortgage Bankers Association showed Nevada, Arizona and Florida had some of the biggest declines in new delinquencies.

The figures probably mark “the beginning of the end” of the crisis, said Jay Brinkmann, the trade group’s chief economist.

However, more than 15 percent of homeowners with a mortgage have missed at least one payment or are in foreclosure, a record. Worse, nearly half of all delinquent borrowers were at least three months behind on their payments, up from a typical level of less than 20 percent.

“The bad news is that we still have a big problem,” Brinkmann said. “The good news is it looks like it may not get much bigger.”

That’s because the percentage of borrowers who missed just one payment on their home loans fell to 3.6 percent in the October-to-December quarter from 3.8 percent in the third quarter, according to the Mortgage Bankers Association. That decline was even more surprising because delinquencies usually rise at that time of year due to higher heating bills and holiday spending.

In another encouraging sign, the number of borrowers who had missed at least one payment but were not yet in foreclosure also fell for the first time since the beginning of 2007.

Banks are delaying the foreclosure process, traditionally between four and six months, as they evaluate borrowers for help under the Obama administration’s $75 billion mortgage-relief effort. It lowers borrowers payments to as low as 2 percent for five years and extends loan terms to as long as 40 years.

But experts warn that hundreds of thousands of borrowers will not be eligible or will not complete the process. So far, only 116,300 borrowers out of 1 million who enrolled have had the terms of their mortgages changed permanently.

Despite the government’s efforts, there may be 6 million foreclosed homes that are put on the market over the next three years, according to Barclays Capital.

Timing is key. If banks unload them suddenly, “it will be much more detrimental to the housing recovery than if it’s a slow, gradual bleed,” said Michelle Meyer, a Barclays economist.

On Friday, Obama announced that housing agencies in the five hardest-hit states of Arizona, California, Florida, Michigan and Nevada will receive $1.5 billion in financial rescue money.

It will go to local programs to help unemployed homeowners, “under water” borrowers who owe more than their home is worth, or to give lenders incentives to assist borrowers with second mortgages. The programs will need to be approved by the Treasury Department.

“Government alone can’t solve this problem,” Obama said. “But government can make a difference.”

In a briefing with reporters, administration officials acknowledged that the effort was just a small one. But they said it could help develop broader national solutions. “What we’re trying to do here is foster innovation,” said Herbert Allison, an assistant Treasury secretary.

The days of building your dream home from the ground up appear to be in jeopardy.

 Lending institutions have become increasingly wary of issuing residential construction loans, even to qualified buyers, as defaults and outstanding loans continue to pile up.

About a sixth of all construction loans were outstanding or on the brink at the end of June, according to bank reports filed with the Federal Deposit Insurance Corporation.

The construction lending delinquency rate rose to 18.2 percent in the third quarter of 2009, nearing the peak of the 2001 recession when the rate hit 19.2 percent, according to a recent Bloomberg story.

Commercial
Construction home loans  are inflicting most of the damage on lenders. But real estate construction loans continue to be a losing proposition for scores of banks. For example, the City National Bank of West Virginia recently announced that its toxic assets mostly consisted of residential construction loans at The Greenbrier Resort.

Instead, banks are increasingly focusing on loans solely for purchasing and refinancing homes. Some have even abandoned residential construction loans all together — both JP Morgan Chase and Citi Mortgage shut down their programs this year.

In other words, the lending pool has thinned considerably for families looking to buy land and build from scratch. Combine that with a considerably tighter credit environment and suddenly the all-American concept of “building your dream home” is on the verge of disappearing.

“These families are not in the same bracket of the builders that have over built subdivisions,” Rick Gomez, owner of San Diego-based Nationwide Construction Loans, said in a recent news release. “These are the families that just want to build the American dream on their own land.

Despite the growing caution, there are still lenders out there willing to take on residential construction loans in this climate. Prospective homeowners looking to secure a  residential home loan need to prepare for a potentially turbulent search

To boost their chances of obtaining a loan today, buyers should be prepared on a few key fronts:

Know the story
Construction loans are the epitome of the “story loan.” The lender wants to consider the project background and the prospective borrower’s story before making a decision. If you don’t have a solid, well-crafted story behind the intended purchase, find one

Scour the Internet
Don’t be afraid to include online sources while shopping for lenders. But, as with any potential lender, be sure to investigate their track record and history of working with construction loans.

Check the Credit
It’s shocking how many prospective borrowers fail to reconcile errors and inconsistencies on their credit reports. About one in four credit reports has an error significant enough to quash a loan. This is especially crucial in this current market.

Sarasota real estate market remains hot as temperatures cool

The Sarasota real estate market remained hot in November 2009 with overall sales nearly 86 percent higher than November 2008.  Total sales stood at 578 in November, mirroring last month’s total of 574 and much higher than the 311 sales reported in November 2008. The breakdown was 417 single family homes and 161 condos sold last month.
 
The fall has proven to be a busy one for many local Realtors®, and the trend doesn’t seem to be slowing down. Pending sales stood at 793 in November, just below last month’s total of 839, and far higher than last November, when only 504 pendings were reported. The statistic is a strong indicator for the next two or three months of sales, as pending sales are an indicator of current buyer activity. Some experts had predicted pending sales might slow because of the uncertainty over the extension of the first-time homebuyer’s tax credit. But that fear has proven unfounded in the Sarasota market.

 The tax credit was extended and expanded to include many other homebuyers on Nov. 6, so the home buying sales rush could easily continue through the season and the first quarter of 2010. The recent statistics continue to point to a local market in a prolonged recovery period.
 
The median sale prices for single family homes and condominiums have apparently stabilized after the extended drop experienced in 2008. The median sale price for single family homes actually jumped by approximately 6 percent to $162,500 from October’s level of $151,000. The median was only 4.4 percent below the November 2008 median sale price of $170,000.
 
The condominium median prices continue to see-saw, dropping to $178,750 in November after rising to $220,000 in October. In September 2009, the median was only $162,500. In November 2008, the median sale price was $195,000, which is very near the median condominium sale price for the 11 months of 2009 ($198,500).
 
Bank-owned property sales and short sales are still accounting for almost half of the single-family home sales and a third of the condo sales in November, and still represent the biggest factor in the overall lower sale prices. For normal arm’s length sales the median sale prices are almost double the figures for the distressed properties.
 
“We are experiencing a very active real estate market during the early seasonal months, when our northern visitors and winter residents return,” said Bill Geller, 2009 SAR President. “Even during these times of higher unemployment and slower national economic activity, it’s very encouraging to see that the Sarasota area remains an attractive place to purchase a home. The statistical trends indicate the market is returning to health. Higher sales and pending sales, stabilizing prices, lower inventories – all of these numbers point to a return to a vibrant real estate market.”
 
While the inventory level rose slightly in November, from 6,226 to 6,261 properties on the market, it is still at the lowest level since late summer of 2005 and the years prior to the boom period from 2003 – 2005.
 
The “months of inventory” – the number of months it would take to sell all the available properties at the current sales rate – dropped to 14.6 months for condos. That’s the lowest figure in the past three years, and far lower than the 40.5 months reported in November 2008. The months of inventory is now 9.4 months for single family homes, slightly higher than October’s 9.3 months, but far lower than last year’s figure of 27.6 months. A figure of 6 months is considered to be a market in equilibrium between buyers and sellers.

For Assistance with Purchasing or Selling a Home, Contact Justin Shirley @ 941-448-4872

Fla.: Existing home, condo sales up in November

ORLANDO – Dec. 22, 2009 – Florida’s existing home sales rose in November, marking 15 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 61 percent last month with a total of 14,026 homes sold statewide compared to 8,694 homes sold in November 2008, according to Florida Realtors. Statewide sales of existing condos increased 111 percent last month compared to November 2008’s sales figure.

For the second month in a row, all of Florida’s metropolitan statistical areas (MSAs) reported increased existing home sales and higher condo sales in November. A majority of the state’s MSAs have reported increased sales for 17 consecutive months.

“The extended and expanded federal homebuyer tax credit will continue the positive momentum of the housing sector’s recovery – people will want to take advantage of this incredible, not-to-be-missed opportunity to buy a home of their own in Florida,” says 2009 Florida Realtors President Cynthia Shelton, CCIM, CRE, a broker and director of investment sales with Colliers Arnold in Orlando.

“For 15 months now, statewide sales of existing single-family homes in Florida have increased each month compared to the year-ago figures,” Shelton says. “The continued, gradual absorption of housing inventory will help stabilize home prices. National research notes that housing affordability is at its peak and the highest on record: Along with still-low mortgage rates, it means that the buying power of a typical family has never been better.”

Florida’s median sales price for existing homes last month was $139,000; a year ago, it was $158,200 for a 12 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 October 2009 was $173,100, down 6.8 percent from a year earlier, according to NAR. In California, the statewide median resales price was $297,500 in October; in Massachusetts, it was $287,000; in Maryland, it was $250,210; and in New York, it was $209,900.

According to NAR’s latest industry outlook, home sales are experiencing a pendulum upswing. “Keep in mind that housing had been underperforming over most of the past year,” said NAR Chief Economist Lawrence Yun. “The tax credit is helping unleash pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future. In the second half of 2010, if home values show consistent stabilization or even a modest increase, then home sales could register normal healthy levels.”

In Florida’s year-to-year comparison for condos, 4,889 units sold statewide last month compared to 2,320 units in November 2008 for an increase of 111 percent. The statewide existing condo median sales price last month was $104,400; in November 2008 it was $131,400 for a 21 percent decrease. The national median existing condo price was $172,900 in October 2009, according to NAR.

Interest rates for a 30-year fixed-rate mortgage averaged 4.88 percent last month, a significant drop from the average rate of 6.09 percent in November 2008, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s smaller markets, the Tallahassee MSA reported a total of 174 homes sold in November compared to 100 homes a year earlier for a 74 percent increase. The market’s existing home median sales price last month was $162,000; a year ago it was $170,00 for a 5 percent decrease. A total of 5 condos sold in the MSA in November, up 150 percent over the 2 units sold in November 2008. The existing condo median price last month was $110,000; a year earlier, it was $95,000 for an increase of 16 percent.

© 2009 Florida Realtors®

University Place
8032 Indigo Ridge Terrace
University Park, FL 34201

$249,900
3 Bedroom, 2 Bath
1,652 Square-Feet

Light & Bright, 3 Bedroom & 2 Bath Home in Sought After University Place * Not a Short Sale, or Foreclosure * Close Quick * Upgraded Tile Throughout * Custom Arches & Moldings * New Carpet in Bedrooms * Beautiful Chandeliers, Lighting Fixtures, & Upgraded Fans Included * Breakfast Bar Topped with Corian Countertops * Open Kitchen with Upgraded Tile Backsplash Under Wood Cabinets & Breakfast Bar * Total Appliance Package Included * Split Plan with Large Master Suite * Large Walk-in Closet in Master * Master Bath Includes Garden Tub & Decorative Tile Backsplash in Shower * Oversized Screened Patio/Lanai with Upgraded Tiles * Large Backyard with Lush Flower Beds & Well-Maintained Landscaping * Room for a Pool * Great Curb Appeal! University Place is Private & Gated Throughout * U-Place Offers 2 Community Pools, Barbecue Area, & Childs Recreation * Well-Maintained Lakes & Maturing Tropical Palms Throughout * Great School District * Perfect Home for a Small Family, or Professional Looking for an Upgraded, 3 Bedroom Home Under $250,000 in Amenity-Packed Community @ Prime University Parkway Location * No Dealing with Banks Here * Seller Will Respond Quick to All Offers * Easy to Show * Call 941-448-4872

Click on the Thumbnails Below to Preview Larger Photos

WASHINGTON (AP) – Dec. 16, 2009 – Construction of new homes, helped by better weather, rebounded in the U.S. in November following a setback in the previous month.

The gain is a hopeful sign that the housing recovery is continuing, a development viewed as critical to lifting the overall economy out of recession.

The Commerce Department says construction of new homes and apartments rose 8.9 percent in November to a seasonally adjusted annual rate of 574,000 units. The gain represented strength in all areas of the country although the increase was slightly lower than economists had expected.

Applications for new building permits were also up, rising 6 percent to an annual rate of 584,000 units, a stronger showing than economists predicted.

Copyright © 2009 The Associated Press, Martin Crutsinger

Justin Shirley
CEO
Shirley International Realty
941.448.4872
www.JustinShirley.com

WASHINGTON (AP) – Oct. 27, 2009 – Top Democrats in the Senate are pressing a plan that would extend a popular tax credit for first-time homebuyers but gradually phase it out over the course of next year.

The proposal, by Majority Leader Harry Reid, D-Nev., and Senate Finance Committee Chairman Max Baucus, D-Mont., would extend the $8,000 tax credit – which expires Nov. 30 – through March 31. Its value would drop by $2,000 for each of the subsequent three quarters of 2010.

The plan, which could face a vote in the Senate this week, appears aimed at countering a far more generous $17 billion bipartisan plan that would extend the $8,000 credit through June 30, 2010, boost the income cap for eligibility and open the credit to all buyers, rather than first-timers.

Senators are maneuvering to add the homebuyer tax credit extension to legislation to extend unemployment benefits by up to 20 weeks. That bill faces a key test vote on Tuesday.

Supporters say the tax credit has helped revive the housing market and say that if it’s cut off as scheduled at the end of next month, home sales could drop off.

Reid sought to schedule a vote on the competing measures on Monday but was blocked by top Senate Republican Mitch McConnell of Kentucky, who is demanding votes on unrelated GOP proposals.

One such proposal would require people receiving unemployment insurance to be processed through the E-Verify program to prove legal immigration status and would require all federal contractors to use E-Verify. E-Verify is an Internet-based system that employers use to check on the immigration status of new hires.

The Democratic plan also would extend the ability of money-losing businesses to claim refunds on taxes paid during profitable times up to four years ago. All businesses could take advantage of the credit; when passed in February it was limited to smaller companies with annual revenues of $15 million or less.

The provision is especially popular with homebuilders who made huge profits in the housing boom but are struggling today. Critics say it’s a giveaway to some of the very companies that helped build up the housing bubble years ago.

Copyright © 2009 The Associated Press, Andrew Taylor, Associated Press writer

September sales skyrocket as market approaches equilibrium
 
Real estate expert Barbara Corcoran listed Sarasota as the number one place in the nation to buy a property in her latest “hot market” prognostication. She cited the lower property prices – 30 percent below last year at this time – combined with a recent price surge of 13 percent in the last quarter, plus Sarasota’s unique “metropolitan” cultural appeal for boosting this area to the top spot.
 
On the Oct. 6th Today Show, Corcoran said Sarasota was the top place to buy real estate in the nation today, an opinion shared by SAR and most area real estate professionals.
 
As a confirmation of Corcoran’s report, home and condo sales jumped by 35 percent in September 2009, compared to the same month last year, and 9.7 percent from the August 2009 stats in the Sarasota market. Total sales stood at 554 in September, compared to 409 total sales in September 2008. The breakdown was 399 single family homes and 155 condos sold last month.

 
Sales in September 2009, traditionally a slow month at the end of the summer, were unexpectedly higher than in August 2009, perhaps signaling an early end for the traditional slower season as we head into a hoped for robust fall and winter.
 
The median sale prices continued to be held down by the high number of bank-owned property sales and short sales, which accounted for half of the single-family home sales and a third of the condo sales. But the “discount rack” is beginning to thin out, and once the bargains are gone, there is the potential for price appreciation on a stronger scale. The median sale price for single family homes was $165,000 last month, up slightly from the previous month, but down 21.8 percent from a year ago. The condo median sale price was $162,500, down significantly from September 2008′s $190,000 figure.
 
The future price trend might well be upwards, as about half of the single family sales and one third of the condo sales involved short sales and foreclosures. Once these distressed properties are off the market, the normal, arm’s length sales should bring the median prices to higher, true value levels.
“We certainly agree with Barbara Corcoran, and her conclusions are what we’ve been saying for many months,” said Bill Geller, 2009 SAR President. “This is an amazing time to buy Sarasota properties at prices not seen since the early 2000s, or even earlier. But the public needs to understand – these prices won’t last. Once the market reaches equilibrium, and we’ve exhausted the distressed property pool, we will start to see more and more multiple offers on choice homes.”
 
The $8,000 first-time homebuyer tax credit was one of the factors in the recent market resurgence, which produced sales in September that nearly topped the 600 level for the second time in 2009. In addition, investors seem to have returned to take advantage of the price drops. Pending sales in September have also continued to show strong levels – very near the 800 mark – as the real estate market recovers after a two-year recession.
 
Pending sales have now exceeded the 800 level for seven out of nine months in 2009, after lingering in the 400 to 500 per month range for much of the previous two years. The statistic is a strong indicator for the next two or three months of sales, when many of these pendings will become closed sales. Pending sales are sales where an offer has been accepted during the month, but the sale has not yet closed. Even though some pending sales never close, pending sales are an indicator of current buyer activity.
 
Most of the statistics continue to point to a market in the initial stages of recovery. Inventory levels continued to decline and are now at the lowest point since the boom ended – a good sign for a market in recovery. There are now only 3,915 active single family listings and 2,337 active condo listings, figures not seen since August 2005 and earlier when the boom first started.
 
The “months of inventory” – the number of months it would take to sell all the available properties at the current sales rate – was down for both single family and condos. The figure is 9.8 months for single family and 15.1 months for condos. A figure of 6 months is considered to be a market in equilibrium between buyers and sellers.
 
Sarasota Association of REALTORS®

How to beat the $8K tax credit deadline

CHICAGO – Sept. 28, 2009 – It’s not too late for a determined first-time home buyer to take advantage of the $8,000 federal tax credit, which expires Nov. 30.

Scott Voak, a San Diego practitioner specializing in first-time buyers, helps potential buyers target homes that can close quickly. To identify those properties without touring them, he suggests contacting the listing agent with blunt but important questions that aren’t usually addressed in the listing. These can include:

• Is there mold?
• Does the home need extensive repairs?
• Does the home have aging systems or appliances?
• Are there any troublesome neighbors?

Buyers should factor in these questions before making an offer:

• How long has the property been on the market?
• Have there been any price reductions?
• Are there any offers written on the property?
• Do the home owners need to move by a specific date?

Other recommendations include:

• Provide buyers with as much information about financing as possible.
• Encourage buyers to begin the process right away.
• Make sure buyers understand who is responsible for closing costs.

Source: Move.com, Scott Voak (09/23/2009)

Justin Shirley
CEO
Shirley International Realty
941.448.4872
www.JustinShirley.com