Mortgage Rates Drop to Record Lows

Rates on 30-year mortgages fell this week to the lowest level on record after the Federal Reserve launched a new effort to assist the staggering U.S. housing market.Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages dropped to 4.85 percent this week, from 4.98 percent last week. It was the lowest in the history of Freddie Mac’s survey, which dates back to 1971 and was down a full percentage point from a year ago.The previous record low of 4.96 percent was set in the week of Jan. 15. Rates fell after the Fed last week said it will pump $1.2 trillion into the economy in an effort to lower rates on mortgages and loosen credit.Rates on 30-year mortgages traditionally track yields on long-term government debt.Though the yield on the benchmark 10-year Treasury note initially plunged by about 0.5 percentage points after the Fed’s move, lenders did not pass the entire drop on to borrowers. Bond yields rose after worries about what some saw as lackluster demand at a government debt auction Wednesday.

Tampa Bay Real Estate Market Update: Feb 2009

The Pinellas marketplace in February was impacted by several factors. The first is available money: tighter restrictions on credit, difficulty of getting any type of loan on condos, and wary consumers are all keeping the lid on what would otherwise be a recovering market. Secondly, the buyers in the marketplace are bargain hunters. Finally, the chaotic pre-foreclosure market is casting a pall over the housing market as a whole. All the factors from confusion about who actually owns the loan to who has the right to review and accept or reject offers on these properties has hampered the ability of seller, lenders, and Realtors® to move these properties off the market.

Until this problem is solved, we are likely to remain in a stagnant market.Let’s take a closer look at the distressed property situation. Twenty-two percent of all sales and 20% of all active listings in February involved a distressed property – that means they were either a foreclosure sale or a pre-foreclosure/short sale. Of the 320 properties sold in this category, 56% were foreclosures and the rest were short sales. Clearly, while 80% of the properties on the market are not in this category, they are being impacted by the discounting going on in the distressed segment. Since 2001, cash sales have accounted for about 20% of the financing types reported to the multiple listing service.

Conventional loans dominated the market taking up 60 to 70% of the financing types. In 2008, the cash deals jumped to 36% and so far this year they are making up 49% of the transactions. We are also seeing a spike in FHA loans; currently 12% of the transaction types. Are there any conventional loans out there? Apparently so, since in 34% of the sales, buyers were able to obtain conventional loans.There is a continuation of the trend of a slightly improved single family home market, even with all the talk about short sales and foreclosures. In February, single family sales were 19.7% higher than February 2008. The absorption rate at 6% reflects declining inventory and increased sales. The February 2009 rate is an improvement over both February 2007 and 2008. Speaking of inventory, the number of available properties on the market was 13.4% lower than February 2008. Median price rose to $139,900 in February compared to $124,500 in January; however year over year there was a 21.8% drop. The condo market persists in providing a drag on the market. Sales were down 8.3% compared to February 2008, although they were up by 40% from January 2009.

The absorption rate at 3.9%, mirroring the single family rate, does show slight improvement over 2007 and 2008. Properties available in this category continue to decline in number. In February 2009 there were 16.5% fewer listings than in February 2008. The median price for condos fell to $118,000, a 24.2% plunge. What will the story be during our peak season? It seems certain that foreclosures and short sales will continue to dominate the conversation, but don’t forget that 75 to 80% of our market is made up of properties that are not in this category. It is important for your sellers and buyers to understand that while the non-distressed properties may not be discounted as much, they are much less frustrating to purchase.

Drop in Lis Pendens Filed in February 09

The number of new lis pendens filed in February 2009 dropped dramatically from the number filed a year ago. In February 2008 there were 1,277 filed in Pinellas County while this year the number is 948, a decline of 19%. Lis pendens is the term used to indicate a legal action is pending related to title to land. The number of new filings has been steadily declining since September 2008 when there were 1,875 filings in the county. September was also the peak for the entire Tampa Bay area at 5,644 lis pendens filed that month.

The decline in this number is certainly an interesting one to watch over the next few months. At this point it is too early to say the wave has crested, but we’ll be keeping our eyes on the situation. Assuming this trend continues this will be a clear sign of local improvement for the Tampa/Clearwater real estate market.

To see the February 2009 lis pendens chart and data:

http://blogs.tampabayrealtor.com/media/blogs/statistics/02-09%20Lis%20Pendens%20Tampa%20Bay%20Area.pdf

Apply $8000 Tax Credit Towards Your Clearwater Real Estate Purchase

Just last week, the IRS released more details about the first-time homebuyer credit for 2009 home purchases. The $8000 tax credit has been an incentive for Clearwater homebuyers to buy Clearwater real estate and real estate within neighboring areas, and buy fast to obtain their credit this year.

According to the IRS' s Press Release, homebuyers taking advantage of this tax credit can choose to even have the $8000 credit direct deposited in their bank accounts.

To qualify for the new homebuyer tax credit, you cannot have owned a home within the past three years, and the home must be purchased by December 31, 2009.

Read the full IRS Tax Credit Press Release here.

Just Listed by Clearwater Realtor Kenny Hayslett of the Hayslett Team: 510 Ashley Drive, Dunedin, FL. A townhome nestled in delightful Dunedin, Florida. The quaint city of Dunedin borders the city of Clearwater.

Distressed Home Sales Increase, Still Saturate Housing Market

Clearwater Realtor Kenny Hayslett is working closely with several Client-Sellers in navigating through this distressed housing market. He and his Team fully understand the complexities of the current real estate crisis, and he has thus far this year sold nine properties on behalf of his Client-Sellers.

The market has not hit rock bottom yet, but according to economists in different parts of the U.S., the increased number of home sales in certain markets, specifically the Tampa-Bay area, indicate that a bottoming out of prices may soon be near. Some experts offer that the market could hit bottom as soon as late spring or early summer of this year, as buyers take advantage of the $8000 HomeBuyer's Tax Credit offered by The Obama Administration, and also make lower offers on homes they see on the market.

Experts also offer that we are in the second year of this Recession and it will take several more years for homeowners to see an increase in the value of their homes, which have fallen as much as 43% in some more severely distressed markets.

Nationwide, about 45% of home sales are distressed properties in short sale or foreclosure status. Home sales in Tampa, Orlando, and Miami, have increased, with the majority of Buyers going straight to the distressed homes as their new homes.

Where is the good news in all of this? "If you are a Buyer, there's a surplus of inventory in the Tampa Bay Area of which you can choose from. If you are a Client-Seller, getting priced right within this market and selling now will better than selling later," says Clearwater Realtor Kenny Hayslett of the Hayslett Team.

You can read more on this recent analysis of national and local property sales here.

Team Hayslett Closes On Another Clearwater Property

Team Hayslett closes on yet another Clearwater property yesterday. Located on Ecuadorian Way, within the On Top Of The World Community, this two bedroom, two bath unit sold for $62,500.

Need to sell your Home, Condo, or Land? Consider using the Haylett Team to market your property aggressively and efficiently. Let the Hayslett Team assist you in navigating safely and quickly through this distressed real estate market.

Already have your Property listed with us? The Hayslett Team thanks you for the opportunity to list and market your Property on your behalf. We thank you for your patience as we work together in connecting Buyers to your property. With the Hayslett Team's diversified, aggressive, and real-time internet marketing presence, homes that list with Team Hayslett get sold. Currently we have 17 closings scheduled. Thank You Valued Hayslett Team Client-Sellers For Your Listing With Us!

Contact the Hayslett Team today for a free consultation for you or a friend/family member. You can call us direct at 727.443.6700. Visit us online at HayslettTeam.com.

As Economy Contracts, Mortgage Rates Drop to Record Lows

In this March 3, 2009 file photo, Federal Reserve Chairman Ben Bernanke testifies on Capitol Hill in Washington, before the Senate Budget Committee.

Well, it's bad news, but good news following: the economy is contracting, and the Federal Reserve said it would move to buy some $2 trillion dollars in assets. The good news? Mortgage rates have fallen to a record low of 4.875% (as of yesterday), with rates that may or may not keep falling.

“Job losses, declining equity and housing wealth and tight credit conditions have weighed on consumer sentiment and spending,” the Fed’s monetary-policy committee said this afternoon in announcing its move.

With buyers heavily surfing the internet for bargain home prices, short sales, and foreclosures, it's hoping that they'll be quicker to make offers and move on some of their chosen properties, especially with these new mortgage loan rates.

"Properties will sell, and are selling---if they are priced within this current market. People are buying. Our Team has 18 closings scheduled, up from 13 last week," says Realtor and Certified Fractional Real Estate Professional Kenny Hayslett of the Hayslett Team in Clearwater.

Would you like to know what your home could sell for in today's market? Call the Hayslett Team today at 727.443.6700, or email us at info@hayslettteam.com.