Is Cash The New Favorite?

For the past four months, most residential sales were accomplished by the buyer bringing cash to the closing. The fact that conventional mortgages have dried up has caused the cash deals to look like they are soaring. In fact they are not. They are continuing at about what looks like a normal pace. Since 2001, which is as far back as our statistics go, there has been between 200-400 sales each month that are all cash closings. From July 2006 through December 2007, the cash closings declined into the 160 to 190 range. Beginning in January 2008, cash closings rose back to the levels we used to see.

Cash closings are jumping out at us right now because of the imbalance in conventional mortgage availability. The reduced number of conventional mortgages creates a perception that there is a boomlet in cash deals. The reality is nothing has replaced conventional mortgages. There is a slight increase in FHA mortgages. The surprise is that more of these types of loans are not being done. Tapping into FHA and VA mortgages which have recently streamlined their processes would seem to be a no-brainer, but they are not really making a dent in the market.

Can anyone explain that? Clearly, the availability of conventional money is desperately needed in the Tampa Bay real estate market and specificaly for Clearwater real estate sales to increase. As of now short sales in Clearwater and short sales in Tampa Bay at large will dominate our market for some time.

Realtors See Rise In Hillsborough County

Home sales were up in March across Hillsborough County as some real estate practitioners hope the housing slump is in the past.

Some 1,400 homes were sold last month in Hillsborough, according to the Greater Tampa Association of Realtors, the best figures since June 2007. The sales were up 25 percent over February and 20 percent from the year before.

The average sales price also is up from $160,145 in February to $168,071 in March, creating sales in Hillsborough of $235.3 million, compared to $179.4 million the month before.

“Our members have been saying they are seeing positive movement in the housing market. These latest statistics prove that they are indeed experiencing a more positive market,” said Carol Austin, GTAR chief executive officer, in a release.

Nearly 17,000 homes still remain for sale, representing an inventory of just under a year. However, that’s the lowest inventory Hillsborough has seen since October 2006, and inventory was more than 17 months just a year ago.

“These statistics are extremely positive,” said Jack Rodriguez, GTAR president, in a release. “Hopefully it signals a trend to better things ahead, both for real estate and the economy in general.”

The Florida Association of Realtors is scheduled to release its March statewide existing home and existing condominium sales numbers on April 23.

Pinellas County Housing Update: March 2009

All the signs are there. It could be a year from now that we will all look back and say, “I sure wish I’d known that the first quarter in 2009 was signaling a change for the better in the housing market.” Not that we don’t still have challenges facing us, but as each month goes by, it is becoming clearer that we are in a slow recovery pattern.

Here’s why we believe this to be the case:

Absorption Rate: The 7.7% of the single family inventory sold was more than a full point better than in 2006 and way ahead of last year. It’s true that it was half of 2006 – but, hey, that was still the boom. Even condo sales at a 4.9% absorption rate improved over both 2007 and 2008.

Inventory: The number of listings on the market continues to drop. As the spring selling season got underway, the number of single family and condo listings on the market reached their lowest points since March of 2006. (Do I need to remind you we were still in a boom market then?)

Units Sold: There is definitely in the upward trend in units sold, especially for single family homes. Single family unit sales were up 19.3% year over year in March. Condo unit sales showed a 17% increase over March of last year. It’s too early to say whether that will hold, but on the positive side but this is only the second month in the past twelve months in which sales outpaced the rate for the previous year. (December 2008 was the other month.)

Affordability: Since July of 2008, the Tampa Bay area has been growing increasingly more and more affordable. This March, a family of four with median income (about $52,000) had enough and more to be able to qualify for a median priced single family home ($140,000) with a 30-year fixed rate mortgage and 20% down payment. (Click here to see the current Affordability Housing Index for our area.)

Median Price: When compared year over year, median prices are still dropping significantly, so in that respect the market has not bottomed out in our area. Remember though, the plus side of this trend is that Pinellas is already a bargain hunter’s paradise and soon may become irresistible. At least, we hope so. The single family median price dropped 24.5% when comparing March 2009 to March 2008. Condo median price tumbled 21.9% from March 08 to March 09. Single family homes in our new mid-price ranges ($100,000 to $249,999) accounted for 46.5% of the unit sales in March. The lower range (up to $99,999) tallied 32.59% of sales. The upper end of the market continued to be weak with no sales reported of $1,000,000 or more. 20.7% of the sales were in the $250,000 to $999,999 range.

Condo price range sales track similar to single family ranges. 44.9% of sales were in the $100,000 to $249,999 range. 38.3% in the lower range and only 16.9% in the high end. We expect the trends to continue over the next two months at least. Contracts written for single family homes increased a whopping 34% over March 2008 and condos contracts pending are 17% higher than last year.

PRICE Is Primary Driving Force Behind Current Sales

Buyers are shopping the internet aggressively for their new homes. With short sales and foreclosures speckling the Tampa Bay real estate market, coupled with historically low mortgage interest rates, as well as the $8000 New Home Buyer Tax Credit, PRICE is at the top of the list of what Buyers are looking for first.

After shopping by price, Buyers also evaluate the neighborhood where their future home is located, determining how safe it is, how close they are to schools, etc. After Price, and Safety, comes the Home's Condition.

Buyer's needs have been redefined. Buyers have modified their Needs and Wants and are asking themselves, "Do I really need a 4 bedroom home, when a 2 or 3 bedroom home will do? Do I need a pool? What do I really need? And what do I really want?"

As Buyers have evolved, Realtors must be in line with these Buyer patterns. Marketing strategies must be reevaluated and must be aggressive. Below are some fast facts according to research gathered by the NAR (National Association of Realtors):

• 56% of new home buyers are considering/seeking a foreclosure or short sale as their new home.
• 63% of new home buyers are considering a fixer-upper or "as-is" condition of a home.
• 68% of new home buyers think it's better to buy now than it was 6 months ago, and that they anticipate a further drop in real estate prices. This may indicate buyers are waiting a little longer before making their home purchase.

"Price, Price" may be this year's "Location, Location".

Tampa Bay Realtor Kenny Hayslett of the Hayslett Team monitors the ever-changing real estate market and has one of the most aggressive internet real estate advertising campaigns in the area. His ability to interpret the market day by day has resulted in the smooth and efficient sale of 13 properties this year, and 71 properties sold last year in 2008.

You can reach the Hayslett Team at 727.443.6700, or by visiting the Hayslett Team website at www.HayslettTeam.com.

Tampa Bay Real Estate, Short Sales, The IRS, And Cancellation of Debt

In the not-so-distant past, a short sale meant the lender forgave part of the home seller's debt, but the home seller - many times to his or her surprise - had to pay federal taxes on the forgiven amount because the IRS treated it like income. Under new tax rules, however, the lender sends a 1099-C, Cancellation of Debt, to the home seller in most cases. The forgiven debt does not have to be included in taxable income, and it gets reported instead on Form 982. To be eligible for debt cancellation, the mortgage must have been a primary one on a principal residence; the cancellation occurred between 2007 and 2012; and the mortgage's principal balance must be less than $2 million ($1 million if filing separately). As with any tax matter, home sellers should keep all paperwork to back up their claim in case it's questioned. It's also a good idea to consult a tax attorney on any tax issue. For more information, go to www.IRS.gov.

"This is good news for many Sellers that are faced with the difficult decision to quickly sell their home," says Tampa Bay Realtor and Certified Fractional Real Estate Professional Kenny Hayslett of the Hayslett Team. "This newly forgiven debt provides some temporary relief to those that would otherwise be paying additional taxes on property no longer tied to them."

Kenny Hayslett and the Hayslett Team are equipped and knowledgeable in assisting Sellers with a variety of needs --- contact the Hayslett Team today at 727.443.6700 with your questions or desire to sell your property as smoothly and as efficiently as possible.

Tampa Bay Realtor Kenny Hayslett Ranked 7th in State of Florida, Top Residential Teams

Clearwater-based Tampa Bay Realtor Kenny Hayslett of the Hayslett Team was presented with a Certificate of Achievement within the ReMax Florida Region, and was ranked in the top ten---the #7 spot among Top Residential Teams in the state of Florida for the month of December.

He attributes his Team's success to establishing and maintaining strong Client/Realtor relationships, based on consistent communication with his Client/Sellers about the current market, emailing them updates and status reports, and ensuring they receive the best in Client services that he and his Team can provide.

Tampa Bay Realtor Kenny Hayslett and the Hayslett Team serve the Tampa Bay area, including the cities of Clearwater, Palm Harbor, Tarpon Springs, New Port Richey, Hudson, Odessa, Oldsmar, Tampa, Brandon, Temple Terrace, Riverview, and more.

To learn more about the Hayslett Team and how it can help you buy or sell your home, please visit the HayslettTeam.com or contact the offices at 727.443.6700.

6 Reasons Why NOW Is A Good Time To Buy

1. Uncle Sam is willing to help. First-time buyers (defined as anyone who hasn’t owned a home in the last three years) are entitled to a maximum $8,000 tax credit; interest rates are at record lows; and the Federal Reserve is doing its best to make mortgage loans available.

2. People have to live somewhere. About 800,000 new households are formed each year in this country, ensuring that the housing market will tighten, even if the economy doesn’t soar.

3. Borrowers leverage their investment. If you put $10,000 into the stock market and it earns 10 percent, you’ve earned $1,000. If you put $10,000 down on a home and its values increases 10 percent, you’ve made $10,000.

4. When prices come back up, you’ll have instant equity. In parts of the country where foreclosures have driven down prices, better times will mean the price of the home you buy will rise rapidly.

5. Mortgage costs stay the same. If you get a fixed-rate mortgage, the monthly payment stays the same – while everything else, including rent, goes upward.

6. You own it. There is something comforting in the notion that your home is your own. You can paint it any color you want, let the dog run in the back yard and hang a swing for the kids in the front.


Based on news article from NY Times