Tampa Bay: Among Areas with Largest Price Decreases

Areas With the Largest Forecasted Price Decreases

For the millions of Americans who became caught up in the crazy "seller's market" of yesteryear, the harsh reality of ARMs and adjustable rates is starting to take its toll. Familiar stories of buyers stretching to purchase a home outside their means, or of investors who can't give away their impulse-buy Gulf-front condo, have created the hottest 'buyers market' in years.

Glass 1/2 Empty: This means I need to reduce my price if I want to get it sold.

Glass 1/2 Full: When I purchase another property, I'm going to get a "STEAL!"

Buyers take note!

Despite the dismal forecasts and negative media hype; no one can really predict real estate's future. The season of out-of-control property values didn't make sense, and this desperate slump only adds to the confusion. Homeowners are left without a security blanket: how can one make reasonable plans for the future without knowing what one of their biggest investment is worth?

Well...

First of all, consulting a Realtor can help you understand what the current market value for your property is - and also what price it would take to get it SOLD. Second, the predictability for the next 5 years is similar to stocks and bonds. Over the long haul housing (like stocks and bonds) follows a natural set of economic fundamentals.

And Third: realize that no matter how low prices may seem at this point, this too soon shall pass. As with any "peak and valley" financial situation - and we're in the middle of a serious 'blue light special' - the fundamentals to a market's ebb and flow will eventually help us see a turnaround.

Buyers take note: the season of "sale" won't last forever!

Sellers: you can start to breath again.

WHY THE DRAMATIC DIP?

Easy money. According to Fortune's Shawn Tully, the 40-year-low interest rates that prevailed from 2003 to 2005 brought a flood of investors into the market. Lax lending standards allowed subprime borrowers, in other words practically anyone who could afford to rent, could afford to buy. Demand increased and prices kept going up.

In 2005 when the Feds started to cool the party off, banks weren't ready to go home. Creative lending continued the crazy mortgage trends like keeping prices low for the first two years -- but only resulted in foreclosure on year 3. Combine the extraordinary foreclosure rate with the sub prime meltdown and the disappearance of the "bargain rates" that started the entire boom - and here we are.

Here's Fortune's forecast for the value of an upscale home (one that sells for double the local median price) in five years. According to Fortune's calculations, prices in most markets will fall by double digits over the next five years.

ORLANDO
June 2007: $522,000
Five-year projection: $343,000
Percent decrease: -34.2%


MIAMI
June 2007: $759,000
Five-year projection: $514,000
Percent decrease: -32.2%

EAST BAY, CA
June 2007: $1,562,000
Five-year projection: $1,078,000
Percent decrease: -31.0%

TAMPA, FL
June 2007: $444,000
Five-year projection: $320,000
Percent decrease: -28.0%

BALTIMORE
June 2007: $565,000
Five-year projection: $408,000
Percent decrease: -27.8%


by Stephanie Stanina

11 Reasons To List During The Holidays

The Top 11 Reasons You Should List During The Holidays

11. By selling now, you may have an opportunity to be a non-contingent buyer during the spring, when many more houses are on the market for LESS money! This will allow you to sell high and buy low.

10. You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year—this means that you can enjoy your holidays at home.

9. Even though your house will be on the market, you still have he option to restrict showings during the 6 or 7 days around the holidays—we will work around your preferences.

8. January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until spring to buy, you need to be on the market during the holidays to capture those potential buyers!

7. Some people MUST BUY before the end of the year for tax reasons.

6. Buyers have more time to look for a home during the holidays than they might during a working week.

5. Buyers are more emotional during the holidays, so they are more likely to pay your price.

4. Houses show better when decorated (subtly) for the holiday season.

3. Since the supply of listings will dramatically in crease in January, there will be less demand for your particular home. Less demand = less money for you!

2. Serious buyers have fewer houses to choose from during the holidays and less competition = more money for you!

The NUMBER ONE Reaon Why You Should List Now

1. People who look for homnes during the holidays are more serious buyers! This means you'll waste less time with "lookey-loo's" who aren't really wanting to buy NOW.

In The News: Public Awareness Campaign

Realtors are constantly working to educate their clients on the benefits of buying real estate as a means of building long-term wealth.

Unfortunately, the media has served as significant head-wind in getting this message across to consumers on a POSITIVE note.

To counter the negative feedback surrounding the real estate industry, the National Association of Realtors (NAR) is helping local REALTOR® associations across the country explain the "real facts" behind the real estate market in their area.

With a series of print ads targeting potential home buyers, NAR is the national level helping-hand working to educate consumers about the long-term value of purchasing real estate. The ads also aim to provide insight on the local real estate markets; this is anticipated to enable buyers to make better informed decisions about purchasing a home - aka: one of the biggest investments a person can make.

NAR notes that a full-page ad will run in USA Today on November 2 and November 9, 2007. Local versions of the USA Today ad will run in select markets nationwide on November 4 and November 11, 2007.

In The News: Mortgage Reform Bill

Daily Real Estate News November 7, 2007
House Committee Passes Mortgage Reform Bill

The U.S. House Financial Services Committee approved legislation on Tuesday creating new consumer protection standards in the mortgage industry.The bill drafted by Rep. Barney Frank (D-Mass.) would:

• Ban lenders from making loans that borrowers don't have the ability to repay.
  
• Prohibit lenders from steering home owners into refinanced mortgages that don't provide any benefit.
  
• Make Wall Street banks that package mortgage securities into investments liable for violations of lending laws
  
• Create a nationwide licensing system for mortgage brokers and bank loan officers.The bill now moves to the full House. Similar legislation was introduced in May by Sen. Charles Schumer (D-N.Y.), but has been stalled in the Senate.

Source: The Associated Press, Alan Zibel (11/06/2007)