By Greg Burns
Chicago Tribune correspondent
September 25, 2008
Hard times can be good times for auctioneers, and if the government follows through with its $700 billion bailout plan, the folks bringing down the gavels expect to get quite a workout.That's what happened during the last financial meltdown a generation ago, when the shopping centers and apartment buildings of failed savings and loans went on the block after the government seized them. Although not everyone remembers that period fondly, it turned into a bonanza for those who played the auction game wisely, snapping up great deals at fire-sale prices. Even more real estate could be up for grabs today.This time, however, the government is planning to take over a vast amount of property indirectly, through complex investments called mortgage-backed securities, which bundle together hundreds, or even thousands, of loans.One of the great mysteries of the proposed bailout is how the government would manage the millions of homes underlying its investments.The nation's auctioneers have an inkling about how it will work out and, no surprise, the endgame as they see it does indeed involve some fast talking. If the government takes on a giant portfolio of residential real estate, some of it, and maybe a lot, inevitably will be sold at auction, they say."Ultimately, the government is going to end up being the parking lot of foreclosed housing," said Steven Good, chief executive of Chicago auctioneer Sheldon Good & Co. "We're equipped to service their business. That's where auctions would be effective."As Chicago auctioneer Rick Levin put it, "This should be a boom for the auction industry."Like other auctioneers, Levin already is in the business of unloading government-owned property seized through official action, including real estate for sale to the highest bidder. He has the official seal of the U.S. Treasury prominently displayed on the Web site of his Rick Levin & Associates.Through its takeover of mortgage giants Fannie Mae and Freddie Mac, the government owns thousands of vacant properties. Snapping up mortgage-backed securities would multiply the federal exposure to distressed homes.That would give government officials enormous market power. And their most important decision could prove to be when to exit their real estate investments.Federal Reserve Chairman Ben Bernanke stressed to Congress that the plan for helping out banks works only if the government pays more than the current market price, on the theory that the value of the distressed securities it buys will grow over time.Yet residential properties can't just be ignored while federal officials wait to realize their "hold to maturity" price. Maintenance needs to be performed, taxes and association fees paid, heat and lights kept on. At some point, homeowners who can't pay will have to clear out, and the vacant properties brought to market.As owner of the securities, the government could influence how the mortgages are serviced, deciding under what circumstances foreclosures would occur, for instance, or when to sell."I'm sure the government can impact these things," said Robert Korajczyk, professor at Northwestern University's Kellogg School of Management. "That's definitely going to happen."Enter the auctioneer.Residential real estate has become the fastest-growing sector of the live-auction industry, with sales volume rising 46.6 percent between 2003 and 2007, according to the National Auctioneers Association. Last week, the trade group sent a letter to Treasury Secretary Henry Paulson offering its services "during these trying times."Even in this environment, real estate will move, said Alan Kravets, president at Sheldon Good and a veteran of the savings-and-loan workout.Savvy investors who remember the fortunes made in those auctions will be hoping for a repeat, he predicted. "It will be easy to attract buyers," he said. "Somebody's going to be getting a great value."Government officials should consider moving quickly, Kravets added, to keep their properties from deteriorating and get the overall real-estate market moving again."This is all about recovery and mitigating losses. Time is the enemy."gburns@tribune.com
Copyright © 2008, Chicago Tribune
Auctions are becoming quiet popular call or email me if you would like to participate in the next local auction. BethBrownRealtor@comcast.net 239-250-2408
Friday, September 26, 2008
Tuesday, September 23, 2008
Vasari - Premier bundled golf community!
Beautiful 3 bedroom, 2 bath coach home located in prestigious Vasari Golf & Country Club. You won't be disappointed with this tastefully decorated hidden jewel located off the main road on a cul-de-sac with plenty of privacy overlooking the preserve. All the right upgrades here including granite counters, stainless steel appliances, crown molding, tile on the diagonal and more. Play the 18 hole Gordon Lewis golf course, workout in the state of the art fitness center, play on the Har-Tru tennis courts, dine at the club or swim in one of the many pools throughout the community. You can have the carefree lifestyle in this bundled golf community, come and see this one it's your best buy! Great seasonal rental potential, currently rented for Jan through March 2009 ask me for details. Offered furnished at $393,750
You can email me at BethBrownRealtor@comcast.net or call at 239-250-2408
Best Buy in Delasol - NEW
Brand new never lived in over 3,000 sq ft under air with 2 car extended garage. Located on a cul-de-sac with a premium lake front lot and coveted western exposure. This Mediterranean style 4 bedroom plus den, 3 bath, great room design home has an impressive kitchen that includes washed maple cabinets, island with prep sink, built in desk, over bar recessed lighting, upgraded appliances, and kitchen nook with mitered glass overlooking the lake. Additional features include tile on the diagonal throughout living areas, dramatic ceiling detail, crown molding, tray ceilings, upgraded fixtures, and much more. Delasol community consists of 286 single family homes with a state-of-the-art fitness center, tennis, clubhouse with pool and spa, sidewalks, desirable schools, and a location that make this one of Naples' most preferred neighborhoods. Asking $699,000
You can email me at BethBrownRealtor@comcast.net or call at 239-250-2408 for more information on this home.
Naples ray of sunshine in housing market, analyst says
Naples ray of sunshine in housing market, analyst says
By LAURA LAYDEN
Thursday, September 18, 2008
NAPLES — In one economist’s eyes, the Naples real estate market is now seen as “slightly undervalued.”In an interview with CNBC Wednesday night, Richard Dekaser, a senior vice president and chief economist at National City Corp., singled out Naples in talking about the “first rays of sunshine on a possible end to the housing crisis.”“Three years ago, the poster child for excess valuation in America was Naples, Florida,” he said.Not anymore. Through the second quarter of this year, prices have dropped 33 percent, he said, leading him to judge the market as “slightly undervalued.” That means home prices are actually lower than where they should be.“Now it could become even more undervalued and I suspect it will,” he said in the interview. “But I think we have to appreciate the adjustment that has already occurred.”He said prices could hit bottom within six months as foreclosure rates begin to fall.“I don’t want to overstate the case,” he said. “The housing bust is not over. But we are in a later stage of stabilization,” he said.Dekaser is the same analyst who labeled Naples the most overpriced market in the U.S. a few years ago.At the end of the first quarter of 2006, National City judged that with a median home price of $383,000, prices were more than double what they should be in Naples.Prices continue to fall.In August, the median home price — the price at which half of the homes sell for more and half for less — dropped to $238,000 in the Naples area. That was down from $375,000 a year ago, according to a monthly report by the Naples Area Board of Realtors.For seven straight months, sales have picked up.It was nice to see Naples shown in a positive light in the media, especially with so much bad news going on in the banking and financial markets, said Brett Brown, president-elect for the Naples Area Board of Realtors.He said if you took out the under-$300,000 market, where most of the foreclosures and short sales are happening, the median price would have been up 5 percent in August. Short sales are sales made for less than the bank is owed to avoid foreclosure.Naples was the only market mentioned in the interview with CNBC.“It shows we haven’t fallen off a cliff,” Brown said. “We are here. Properties are selling.”To see the interview, go to www.cnbc.com/id/15840232?video=859022956
More good stuff from BethBrownRealtor@comcast.net
By LAURA LAYDEN
Thursday, September 18, 2008
NAPLES — In one economist’s eyes, the Naples real estate market is now seen as “slightly undervalued.”In an interview with CNBC Wednesday night, Richard Dekaser, a senior vice president and chief economist at National City Corp., singled out Naples in talking about the “first rays of sunshine on a possible end to the housing crisis.”“Three years ago, the poster child for excess valuation in America was Naples, Florida,” he said.Not anymore. Through the second quarter of this year, prices have dropped 33 percent, he said, leading him to judge the market as “slightly undervalued.” That means home prices are actually lower than where they should be.“Now it could become even more undervalued and I suspect it will,” he said in the interview. “But I think we have to appreciate the adjustment that has already occurred.”He said prices could hit bottom within six months as foreclosure rates begin to fall.“I don’t want to overstate the case,” he said. “The housing bust is not over. But we are in a later stage of stabilization,” he said.Dekaser is the same analyst who labeled Naples the most overpriced market in the U.S. a few years ago.At the end of the first quarter of 2006, National City judged that with a median home price of $383,000, prices were more than double what they should be in Naples.Prices continue to fall.In August, the median home price — the price at which half of the homes sell for more and half for less — dropped to $238,000 in the Naples area. That was down from $375,000 a year ago, according to a monthly report by the Naples Area Board of Realtors.For seven straight months, sales have picked up.It was nice to see Naples shown in a positive light in the media, especially with so much bad news going on in the banking and financial markets, said Brett Brown, president-elect for the Naples Area Board of Realtors.He said if you took out the under-$300,000 market, where most of the foreclosures and short sales are happening, the median price would have been up 5 percent in August. Short sales are sales made for less than the bank is owed to avoid foreclosure.Naples was the only market mentioned in the interview with CNBC.“It shows we haven’t fallen off a cliff,” Brown said. “We are here. Properties are selling.”To see the interview, go to www.cnbc.com/id/15840232?video=859022956
More good stuff from BethBrownRealtor@comcast.net
Important information about our market today!
I know many of you are concerned about the troubled financial markets and are wondering how the federal government’s actions will help resolve the crisis. Here is the latest information on what is happening in the housing market and our position on the government’s plans to rescue Wall Street. First, take a few minutes to watch today’s President’s Podcast, featuring my latest interview with NAR Chief Economist Lawrence Yun. Although the video was shot before the government takeover of Fannie Mae and Freddie Mac, Lawrence provides valuable perspective on where the housing market is heading in 2009. http://www.realtor.org/about_nar/presidents_report/_podcast_archive/presidents_podcast_marketoutlook_20080923 Second, please read Lawrence’s September 22nd commentary, which explains the reality behind the government’s proposed “investment” in the financial markets and what’s at stake for homeowners and taxpayers.
http://www.realtor.org/research/commentary_700_billion Third, review the letter I sent to Congress earlier today, outlining our position on the Treasury’s comprehensive approach to addressing problems in the financial system.
http://www.realtor.org/gapublic.nsf/pages/gses_conservatorship?OpenDocument As the most trusted source of information in the real estate transaction, REALTORS® are in the best position to counsel consumers in this confusing market. I urge you to check Realtor.org for additional information and updates in the days and weeks ahead, and share them with your colleagues. Working “All Together,” we can overcome these challenges and ensure that homeownership continues to be the most valuable investment Americans can make.
This note was posted by Richard Gaylord...NAR president......There is a ight at the end of the tunnel.
http://www.realtor.org/research/commentary_700_billion Third, review the letter I sent to Congress earlier today, outlining our position on the Treasury’s comprehensive approach to addressing problems in the financial system.
http://www.realtor.org/gapublic.nsf/pages/gses_conservatorship?OpenDocument As the most trusted source of information in the real estate transaction, REALTORS® are in the best position to counsel consumers in this confusing market. I urge you to check Realtor.org for additional information and updates in the days and weeks ahead, and share them with your colleagues. Working “All Together,” we can overcome these challenges and ensure that homeownership continues to be the most valuable investment Americans can make.
This note was posted by Richard Gaylord...NAR president......There is a ight at the end of the tunnel.
Tuesday, August 26, 2008
HOME BUYERS BUY NOW MESSAGE RINGS TRUE!
For people scalped by the real estate market the past couple of years, few promotional campaigns grate more than the Never Been a Better Time to Buy mantra.
(Never better? For a few frenzied months in 2004 and 2005, you could have bought a house for zero money down and flipped it painlessly for a profit of $50,000. That's assuredly better.)
Leaving that aside, it's harder to scoff at the latest pitch by the Tampa Bay Builders Association. Yes, builders are once again reassuring us it's a good time to mortgage our future on a pile of concrete, shingles and 2 by 4s.
But I think they've got most of the facts on their side this time. They were shared at Thursday's roundtable at the Tampa headquarters of the Tampa Bay Builders Association. About a half dozen builders were there, ranging from Arthur Rutenberg Homes president Bobby Lyons and Taylor Morrison division president Michael Storey to Pulte Homes' Reed Williams and Standard Pacific Homes regional president David Pelletz.
Builders face obvious pressure to sell. As a group, the industry has lost billions of dollars. Sales are less than half of what they were during the 2005 peak. But at the same time, they can drop prices only so low.
Rising material costs, from the concrete in the slab to the diesel in the dump truck, are partly absorbed by customers. Local governments charge more than $10,000 in impact fees per home to pay for roads, schools and sewer lines.
Executives from the likes of Pulte, Standard Pacific and Taylor Morrison admit prices could dip further this year from an average of about $200,000. But not by much. And while procrastinators may save $15,000 waiting six months, they could lose that amount to interest rates that a chorus of economists insist must rise to stem inflation.
Is the message getting out to the roughly 20 percent of Florida buyers who prefer a new home? Pulte and Standard Pacific report sales about 25 percent higher than they were last year. Sales of smaller homes have led the way.
Builders insist home buying is becoming less the cold economic speculation of a commodities hustler.
By James Thorner, Times Staff Writer In print: Friday, August 22, 2008
Good article, so true it is................ Beth Brown Bethbrownrealtor@comcast.net
(Never better? For a few frenzied months in 2004 and 2005, you could have bought a house for zero money down and flipped it painlessly for a profit of $50,000. That's assuredly better.)
Leaving that aside, it's harder to scoff at the latest pitch by the Tampa Bay Builders Association. Yes, builders are once again reassuring us it's a good time to mortgage our future on a pile of concrete, shingles and 2 by 4s.
But I think they've got most of the facts on their side this time. They were shared at Thursday's roundtable at the Tampa headquarters of the Tampa Bay Builders Association. About a half dozen builders were there, ranging from Arthur Rutenberg Homes president Bobby Lyons and Taylor Morrison division president Michael Storey to Pulte Homes' Reed Williams and Standard Pacific Homes regional president David Pelletz.
Builders face obvious pressure to sell. As a group, the industry has lost billions of dollars. Sales are less than half of what they were during the 2005 peak. But at the same time, they can drop prices only so low.
Rising material costs, from the concrete in the slab to the diesel in the dump truck, are partly absorbed by customers. Local governments charge more than $10,000 in impact fees per home to pay for roads, schools and sewer lines.
Executives from the likes of Pulte, Standard Pacific and Taylor Morrison admit prices could dip further this year from an average of about $200,000. But not by much. And while procrastinators may save $15,000 waiting six months, they could lose that amount to interest rates that a chorus of economists insist must rise to stem inflation.
Is the message getting out to the roughly 20 percent of Florida buyers who prefer a new home? Pulte and Standard Pacific report sales about 25 percent higher than they were last year. Sales of smaller homes have led the way.
Builders insist home buying is becoming less the cold economic speculation of a commodities hustler.
By James Thorner, Times Staff Writer In print: Friday, August 22, 2008
Good article, so true it is................ Beth Brown Bethbrownrealtor@comcast.net
Saturday, August 23, 2008
Foreclosures a hot commodity!
Everybody is looking for a good deal these days and foreclosures are abundant! Many investors are back on the prowl looking for their best deals in the land of foreclosure! Everybody wants to know if we've hit bottom yet, well the answer is nobody knows. We have been in a declining market for some time and wow, I can't even believe some of the prices out there. We are like Wal Mart and have rolled back to 2003 or 2004 pricing.
I am buying now and I'd say conditions are favorable for future value. Interest rates are great and pricing is good. If you can put enough money down to have a positive cash flow on a property than it's a no brainier, just do it!
I've talked to Realtors in other parts of the United States that I do referrals with and there are very few places that have as much inventory as we do. Yes they are slow and pricing has come down across the board but what we are experiencing here in paradise is simple economics people. Supply and demand, once we reduce our inventory to a normal level the feast will be over. Our problem developed from over building and speculative buying. Everybody wanted to get rich quick and some did but just like the pyramid game, many got caught holding the goods and they didn't pay out. The game is over and we still have many properties that have some price adjustments coming down but that will all shake out in time.
Don't kid yourself playing the "wait and see" if the interest rate creeps up you've lost that savings you were looking for. This is paradise, I've live here for 30 years and Naples is the cream of the crop. We've hit bumps in the road before in real estate but we always come back and right now we are selling a lot of properties.
Let's talk about short sales, I'm sick of them.. Yes I've sold a few but it's exhausting and the banks are taking too much time to answer offers and they don't seem to care if they get through this process. I was in banking for 16 years here in Naples and sold foreclosures on that side too. Many of the people sitting in the seats at banks being negotiators right now are costing their banks thousand of dollars! In a declining market they are throwing off deals that have offers close to market value and in the end it's costing them a fortune! These homes take months to drag through foreclosure and they sit unattended with no electricity on. By the time we get some of them after the final judement has been filed they have serious mold issues, pools are green and in rural areas all outside water equipment has been stolen as well as the a/c units.
Many of the short sales have two loans on them, a primary and an equity loan. We Realtors first have to negotiate the primary loan and then the equity line (which would get bumped off in foreclosure and get nothing) and the secondary loans are giving us so much grief. They know that they have the ability to blow the deal and they can refuse to sign off or demand more money. I'm so tired of the work out on these short sales that there are very few that I'll take. I'm only going to list your short sale if it has one loan on it.
Anyway it's an exciting word in foreclosures right now and I get new ones every week. I also have several affiliates that work foreclosures so if that' s the arena your looking in....call me
There is a plethora to look through!
If you would like a current list of the foreclosures in the area, eamil me. I'll be happy to provide one Bethbrownrealtor@comcast.net or 239 250-2408
I am buying now and I'd say conditions are favorable for future value. Interest rates are great and pricing is good. If you can put enough money down to have a positive cash flow on a property than it's a no brainier, just do it!
I've talked to Realtors in other parts of the United States that I do referrals with and there are very few places that have as much inventory as we do. Yes they are slow and pricing has come down across the board but what we are experiencing here in paradise is simple economics people. Supply and demand, once we reduce our inventory to a normal level the feast will be over. Our problem developed from over building and speculative buying. Everybody wanted to get rich quick and some did but just like the pyramid game, many got caught holding the goods and they didn't pay out. The game is over and we still have many properties that have some price adjustments coming down but that will all shake out in time.
Don't kid yourself playing the "wait and see" if the interest rate creeps up you've lost that savings you were looking for. This is paradise, I've live here for 30 years and Naples is the cream of the crop. We've hit bumps in the road before in real estate but we always come back and right now we are selling a lot of properties.
Let's talk about short sales, I'm sick of them.. Yes I've sold a few but it's exhausting and the banks are taking too much time to answer offers and they don't seem to care if they get through this process. I was in banking for 16 years here in Naples and sold foreclosures on that side too. Many of the people sitting in the seats at banks being negotiators right now are costing their banks thousand of dollars! In a declining market they are throwing off deals that have offers close to market value and in the end it's costing them a fortune! These homes take months to drag through foreclosure and they sit unattended with no electricity on. By the time we get some of them after the final judement has been filed they have serious mold issues, pools are green and in rural areas all outside water equipment has been stolen as well as the a/c units.
Many of the short sales have two loans on them, a primary and an equity loan. We Realtors first have to negotiate the primary loan and then the equity line (which would get bumped off in foreclosure and get nothing) and the secondary loans are giving us so much grief. They know that they have the ability to blow the deal and they can refuse to sign off or demand more money. I'm so tired of the work out on these short sales that there are very few that I'll take. I'm only going to list your short sale if it has one loan on it.
Anyway it's an exciting word in foreclosures right now and I get new ones every week. I also have several affiliates that work foreclosures so if that' s the arena your looking in....call me
There is a plethora to look through!
If you would like a current list of the foreclosures in the area, eamil me. I'll be happy to provide one Bethbrownrealtor@comcast.net or 239 250-2408
Thursday, July 24, 2008
Not soon enoough for 1.5 million homeowners!
So why don't they take some of this money and purchase homes for Habitat for Hummanity and let them go through the necessary steps as usual to help low income families buy thier first homes?
Huge Housing Bill Set to Become Law
Bush Drops Veto Threat On Measure
By Lori MontgomeryWashington Post Staff WriterThursday, July 24, 2008
The House yesterday easily approved legislation that seeks to slow the steepest slide in house prices in a generation, rescue hundreds of thousands of homeowners at risk of foreclosure and reassure global markets that mortgage-finance giants Fannie Mae and Freddie Mac will not be allowed to fail.
The Senate plans to vote on the bill within days and send it to President Bush. The White House announced that Bush would sign the measure, Washington's most ambitious response to a housing crisis that has pushed more than 1.5 million families into foreclosure and shattered investors' confidence in some of the nation's largest financial institutions.
Although Bush continues to oppose a provision that offers $3.9 billion to communities devastated by foreclosures, he rescinded a veto threat after Treasury Secretary Henry M. Paulson Jr. persuaded him that the overall measure was urgently needed to stabilize the housing and credit markets, said White House press secretary Dana Perino.
"This is not the time for a prolonged veto fight, although we're confident that the president would prevail in one," Perino told reporters. "But with Congress scheduled to leave soon for yet another recess, the risk of not having a bill until the middle of September is not a risk worth taking in the current environment."
House leaders predicted that lenders would offer to forgive a portion of struggling homeowners' debt and help them trade high-cost mortgages for more affordable government-backed loans within weeks.
"I would be very disappointed if, having helped us formulate this, they don't take advantage of it," House Financial Services Committee Chairman Barney Frank (D-Mass.), said of the banks.
In addition to mortgage bankers, interest groups as varied as home builders, real estate agents and civil rights groups back the legislation. The final package was assembled during intense bipartisan negotiations between House and Senate leaders and Paulson, who approached lawmakers two weeks ago seeking emergency authority to prop up Fannie Mae and Freddie Mac after a precipitous drop in the firms' share prices.
The mortgage-finance firms, which are government-sponsored but investor-owned, together own or guarantee about half of the nation's outstanding mortgages. Concern about their financial health has destabilized the markets and is driving interest rates for home loans toward their highest level in five years.
The need to calm investors added urgency to legislation that has been wending its way through Congress since April. The measure would grant Paulson immediate but temporary authority to extend an unlimited line of credit to Fannie Mae and Freddie Mac or to buy their stock if their financial condition deteriorates sharply before December 2009.
Democrats abandoned efforts to mandate specific protections for taxpayers, such as a requirement that the companies suspend dividend payments to shareholders as a precondition of receiving federal aid. Instead, the measure instructs Paulson to set the terms of any bailout.
"We said, 'You have to protect the taxpayer, but how you do it is up to you,' " said Frank, a key sponsor of the bill. "Going to the market is a tricky business. And I think tying his hands . . . is a mistake."
The Federal Reserve Board would have "consultative" authority over Fannie Mae and Freddie Mac until the legislation expires in December 2009. The legislation also would create a strong new regulator for the firms, with explicit authority over compensation for their chief executives, who take home millions of dollars a year.
Lawmakers rejected Paulson's request to prevent any public aid to the firms from being counted as part of the federal deficit. Instead, the measure would raise the legal debt limit to $10.6 trillion -- an increase of $800 billion -- giving Paulson a large cushion should aid to the firms become necessary. As of yesterday, the national debt stood at $9.5 trillion.
Paulson has said he is unlikely to need the new authority because the firms are financially sound, and congressional budget analysts agree that it is unlikely to be implemented, saying the cost to taxpayers should be less than $25 billion. In a statement, Paulson praised lawmakers for acting quickly on a measure that would "give confidence to markets and will create a strong, independent regulator better able to address the risks these enterprises pose."
Despite the administration's call for speed, only 45 Republicans joined a largely united Democratic caucus to approve the measure in the House, 272 to 152. House Minority Leader John A. Boehner (R-Ohio) said he was "disappointed that the White House has indicated that they'll sign the bill" and urged lawmakers to vote against it, saying the plan would permit private shareholders to reap profits but stick taxpayers with losses.
"That is not responsible," said Rep. Paul D. Ryan (R-Wis.) "We should reform these institutions now. Either privatize them or publicize them."
Sen. Jim DeMint (R-S.C.) vowed to delay passage in the Senate until at least Saturday, saying he wanted to add an amendment that would bar Fannie Mae and Freddie Mac from lobbying Congress if the firms become indebted to the federal government.
In addition to the rescue plan for the mortgage-finance firms, the package includes a plan to rescue more than 400,000 homeowners at risk of foreclosure by helping them trade high-cost loans with rapidly rising monthly payments for more-affordable mortgages backed by the Federal Housing Administration. As home prices fall, many of those borrowers now owe their banks more than their homes are worth and find it impossible either to make their mortgage payments or to sell or refinance their homes.
For those borrowers, the FHA would offer to guarantee new mortgages if lenders agree to forgive a portion of the debt and permit a new loan to be issued for no more than 87 percent of the new, lower value of their properties.
The FHA, as well as Fannie Mae and Freddie Mac, would be given permanent authority to assist borrowers with much larger home loans, as the bill would increase the cap on the size of those loans to $625,000.
First-time home buyers who purchased a house from April 9, 2008, and July 1, 2009, would be eligible for a tax credit worth up to $7,500, though the credit would eventually have to be repaid to the Treasury. Homeowners who do not currently itemize would be able to claim a new property tax deduction of $500 for individuals and $1,000 for families, a provision that would primarily help older homeowners who have paid off their mortgages.
Democrats say the aid to communities to purchase vacant and foreclosed properties would help stabilize urban neighborhoods hit hard by the mortgage crisis; the administration says it would primarily benefit lenders who foreclosed on the properties.
Huge Housing Bill Set to Become Law
Bush Drops Veto Threat On Measure
By Lori MontgomeryWashington Post Staff WriterThursday, July 24, 2008
The House yesterday easily approved legislation that seeks to slow the steepest slide in house prices in a generation, rescue hundreds of thousands of homeowners at risk of foreclosure and reassure global markets that mortgage-finance giants Fannie Mae and Freddie Mac will not be allowed to fail.
The Senate plans to vote on the bill within days and send it to President Bush. The White House announced that Bush would sign the measure, Washington's most ambitious response to a housing crisis that has pushed more than 1.5 million families into foreclosure and shattered investors' confidence in some of the nation's largest financial institutions.
Although Bush continues to oppose a provision that offers $3.9 billion to communities devastated by foreclosures, he rescinded a veto threat after Treasury Secretary Henry M. Paulson Jr. persuaded him that the overall measure was urgently needed to stabilize the housing and credit markets, said White House press secretary Dana Perino.
"This is not the time for a prolonged veto fight, although we're confident that the president would prevail in one," Perino told reporters. "But with Congress scheduled to leave soon for yet another recess, the risk of not having a bill until the middle of September is not a risk worth taking in the current environment."
House leaders predicted that lenders would offer to forgive a portion of struggling homeowners' debt and help them trade high-cost mortgages for more affordable government-backed loans within weeks.
"I would be very disappointed if, having helped us formulate this, they don't take advantage of it," House Financial Services Committee Chairman Barney Frank (D-Mass.), said of the banks.
In addition to mortgage bankers, interest groups as varied as home builders, real estate agents and civil rights groups back the legislation. The final package was assembled during intense bipartisan negotiations between House and Senate leaders and Paulson, who approached lawmakers two weeks ago seeking emergency authority to prop up Fannie Mae and Freddie Mac after a precipitous drop in the firms' share prices.
The mortgage-finance firms, which are government-sponsored but investor-owned, together own or guarantee about half of the nation's outstanding mortgages. Concern about their financial health has destabilized the markets and is driving interest rates for home loans toward their highest level in five years.
The need to calm investors added urgency to legislation that has been wending its way through Congress since April. The measure would grant Paulson immediate but temporary authority to extend an unlimited line of credit to Fannie Mae and Freddie Mac or to buy their stock if their financial condition deteriorates sharply before December 2009.
Democrats abandoned efforts to mandate specific protections for taxpayers, such as a requirement that the companies suspend dividend payments to shareholders as a precondition of receiving federal aid. Instead, the measure instructs Paulson to set the terms of any bailout.
"We said, 'You have to protect the taxpayer, but how you do it is up to you,' " said Frank, a key sponsor of the bill. "Going to the market is a tricky business. And I think tying his hands . . . is a mistake."
The Federal Reserve Board would have "consultative" authority over Fannie Mae and Freddie Mac until the legislation expires in December 2009. The legislation also would create a strong new regulator for the firms, with explicit authority over compensation for their chief executives, who take home millions of dollars a year.
Lawmakers rejected Paulson's request to prevent any public aid to the firms from being counted as part of the federal deficit. Instead, the measure would raise the legal debt limit to $10.6 trillion -- an increase of $800 billion -- giving Paulson a large cushion should aid to the firms become necessary. As of yesterday, the national debt stood at $9.5 trillion.
Paulson has said he is unlikely to need the new authority because the firms are financially sound, and congressional budget analysts agree that it is unlikely to be implemented, saying the cost to taxpayers should be less than $25 billion. In a statement, Paulson praised lawmakers for acting quickly on a measure that would "give confidence to markets and will create a strong, independent regulator better able to address the risks these enterprises pose."
Despite the administration's call for speed, only 45 Republicans joined a largely united Democratic caucus to approve the measure in the House, 272 to 152. House Minority Leader John A. Boehner (R-Ohio) said he was "disappointed that the White House has indicated that they'll sign the bill" and urged lawmakers to vote against it, saying the plan would permit private shareholders to reap profits but stick taxpayers with losses.
"That is not responsible," said Rep. Paul D. Ryan (R-Wis.) "We should reform these institutions now. Either privatize them or publicize them."
Sen. Jim DeMint (R-S.C.) vowed to delay passage in the Senate until at least Saturday, saying he wanted to add an amendment that would bar Fannie Mae and Freddie Mac from lobbying Congress if the firms become indebted to the federal government.
In addition to the rescue plan for the mortgage-finance firms, the package includes a plan to rescue more than 400,000 homeowners at risk of foreclosure by helping them trade high-cost loans with rapidly rising monthly payments for more-affordable mortgages backed by the Federal Housing Administration. As home prices fall, many of those borrowers now owe their banks more than their homes are worth and find it impossible either to make their mortgage payments or to sell or refinance their homes.
For those borrowers, the FHA would offer to guarantee new mortgages if lenders agree to forgive a portion of the debt and permit a new loan to be issued for no more than 87 percent of the new, lower value of their properties.
The FHA, as well as Fannie Mae and Freddie Mac, would be given permanent authority to assist borrowers with much larger home loans, as the bill would increase the cap on the size of those loans to $625,000.
First-time home buyers who purchased a house from April 9, 2008, and July 1, 2009, would be eligible for a tax credit worth up to $7,500, though the credit would eventually have to be repaid to the Treasury. Homeowners who do not currently itemize would be able to claim a new property tax deduction of $500 for individuals and $1,000 for families, a provision that would primarily help older homeowners who have paid off their mortgages.
Democrats say the aid to communities to purchase vacant and foreclosed properties would help stabilize urban neighborhoods hit hard by the mortgage crisis; the administration says it would primarily benefit lenders who foreclosed on the properties.
Wednesday, July 23, 2008
Bank Owned ----Foreclosure
Bank Owned. Needs finsih work, not FHA financiable. Being sold "as is" with right to inspect. If you like seclusion this is nice, sets well back off the road preserve view from front and back of house. Seller will pay up to $4,000 of buyers closing costs. Asking $135,000 Make an offer! Call Beth Brown at 250-2408......
Saturday, July 19, 2008
610 31st St SW; NAPLES FL
FORECLOSURE If you looked at this before, come and look again. ponds and pool are beautiful, yard manicured....Two story Estate pool home on 2.73 acres with 2 bedroom guest house, 3 car attached garage, 2 car detached garage, 2 horse paddocks, training arena, cages and fenced area for other animals. Bring your horses and move right in! Being sold as is with right to inspect. Needs TLC but a great value at $635,000 So close to town, you'll love the location. Bank offering up to $10,000 toward buyers closing costs! For seller financing incentives, agents and their buyers are requested to contact our designated Chase Loan Oficer Terry Griggs at 239-398-9930
SALES UP INVENTORY DOWN!!!
FOR IMMEDIATE RELEASE SALES UP, INVENTORY DOWN FOR FIFTH CONSECUTIVE MONTH
June 2008 Pending Sales 63 Percent Higher Than June 2007 NAPLES, Fla. – July 15, 2008 – Now is a great time to buy, and more people are agreeing according to a report released by the Naples Area Board of Realtors® (NABOR), which tracks home listings and sales within Collier County (excluding Marco Island). "For the fifth consecutive month, we are seeing the number of pending sales increasing and the available inventory decreasing. We are seeing this trend across the broad spectrum, not just in specific price points or geographic areas," said Arlene Carozza, NABOR president and Realtor. "Overall, pending sales activity is up 63 percent over last year, with some areas well over 150 percent." In the June report, compiled by NABOR, overall sales have increased nine percent and inventory has decreased by seven percent. "I’ve seen a marked increase in the number of showings and increased interest in homes," said Mike Hughes of Downing-Frye Realty. "Choice properties that are priced right are quickly disappearing." 2
The report, which provides annual comparisons of single-family home and condo sales (via the Sunshine Multiple Listing Service), price ranges and geographic segmentation, also includes an overall market summary. The statistics are presented in chart format, along with the following analysis:
Overall pending home sales in the greater Naples Area, which includes Naples Beach, North Naples, Central Naples, South Naples, East Naples, Immokalee and Ave Maria, increased 60 percent, with 484 in June 2008 compared to 301 in June 2007.
Overall market sales for June 2008 in the $0-$300K category are up 58 percent with median sold price down 15 percent, compared to June 2007. Overall inventory is down seven percent.
For single-family homes priced up to $300,000, there are 172 pending sales, up 537 percent over June 2007, when there were 27 pending sales. In the same category, sales are up to 113, a 253 percent increase over the 32 sold in June 2007.
Pricing for single-family homes from $1 - $2 million increased by nearly eight percent.
Overall condominium pending sales for June 2008 increased 43 percent to 197, compared to 138 in June 2007. Comparing pending sales from June 2007 and June 2008, condominiums priced up to $300,000, there is a 59 percent increase, while condominiums priced from $500,000 to $1 million are up 38 percent. For condominiums priced from $1 - $2 million, pending sales are up 30 percent from June 2007. Overall condominium inventory is down 13 percent.
"There is a new bubble of buyers on the horizon," said Mike Hughes of Downing-Frye Realty. "They are on the fence, but now it’s a matter of when they’re going to make that buying decision."
The Naples Area Board of REALTORS® (NABOR) is an established organization (Chartered 1949) whose members have a positive and progressive impact on the Naples community.
Arlene Carozza, NABOR, President, 239/877-7411
June 2008 Pending Sales 63 Percent Higher Than June 2007 NAPLES, Fla. – July 15, 2008 – Now is a great time to buy, and more people are agreeing according to a report released by the Naples Area Board of Realtors® (NABOR), which tracks home listings and sales within Collier County (excluding Marco Island). "For the fifth consecutive month, we are seeing the number of pending sales increasing and the available inventory decreasing. We are seeing this trend across the broad spectrum, not just in specific price points or geographic areas," said Arlene Carozza, NABOR president and Realtor. "Overall, pending sales activity is up 63 percent over last year, with some areas well over 150 percent." In the June report, compiled by NABOR, overall sales have increased nine percent and inventory has decreased by seven percent. "I’ve seen a marked increase in the number of showings and increased interest in homes," said Mike Hughes of Downing-Frye Realty. "Choice properties that are priced right are quickly disappearing." 2
The report, which provides annual comparisons of single-family home and condo sales (via the Sunshine Multiple Listing Service), price ranges and geographic segmentation, also includes an overall market summary. The statistics are presented in chart format, along with the following analysis:
Overall pending home sales in the greater Naples Area, which includes Naples Beach, North Naples, Central Naples, South Naples, East Naples, Immokalee and Ave Maria, increased 60 percent, with 484 in June 2008 compared to 301 in June 2007.
Overall market sales for June 2008 in the $0-$300K category are up 58 percent with median sold price down 15 percent, compared to June 2007. Overall inventory is down seven percent.
For single-family homes priced up to $300,000, there are 172 pending sales, up 537 percent over June 2007, when there were 27 pending sales. In the same category, sales are up to 113, a 253 percent increase over the 32 sold in June 2007.
Pricing for single-family homes from $1 - $2 million increased by nearly eight percent.
Overall condominium pending sales for June 2008 increased 43 percent to 197, compared to 138 in June 2007. Comparing pending sales from June 2007 and June 2008, condominiums priced up to $300,000, there is a 59 percent increase, while condominiums priced from $500,000 to $1 million are up 38 percent. For condominiums priced from $1 - $2 million, pending sales are up 30 percent from June 2007. Overall condominium inventory is down 13 percent.
"There is a new bubble of buyers on the horizon," said Mike Hughes of Downing-Frye Realty. "They are on the fence, but now it’s a matter of when they’re going to make that buying decision."
The Naples Area Board of REALTORS® (NABOR) is an established organization (Chartered 1949) whose members have a positive and progressive impact on the Naples community.
Arlene Carozza, NABOR, President, 239/877-7411
Monday, May 5, 2008
Housing market recovery on track in Collier, slower in Lee
By LAURA LAYDEN Naples Daily News
Thursday, April 24, 2008
Renowned Florida economist Hank Fishkind spoke the words Naples Realtors and brokers wanted to hear.
The housing markets hit bottom in Collier County and home prices aren’t going to drop anymore, he said Thursday in a talk organized by the Naples Area Board of Realtors. “The markets are not eroding further,” said Fishkind, principal of Orlando-based Fishkind & Associates.
Prices have flattened out and if they were going to fall any more that would have happened in the last six months, he said.
However, he said it will take another six to 12 months for sales volumes to really start improving in the Naples area.
In Lee and Charlotte counties, the recovery is going to take longer because there are higher inventories of unsold homes, Fishkind said. In those counties, there was more overbuilding because land prices were so much cheaper, he said.
While he described the condominium market in Florida as a “disaster” generally because there has been so much overbuilding, he said it’s not as bad in the Naples area because the scarcity of land and high land prices have limited new development.
He described the unsold inventory of new homes in Collier County as “fairly small.”
In February, a little more than 200 existing single-family homes sold at an average price of $540,000 in Collier County, according to deed records, Fishkind said. There were more than 100 new single-family homes that sold for an average price of $375,000.
About 50 new condominiums sold for an average price of $350,000, and about 175 existing ones sold for an average price of $425,000 in February, he said.
“Basically prices are the same as in 2006,” Fishkind said.
He predicts that it will be “years” before prices go up again.
Fishkind also touched on job losses and foreclosures in Collier County.
As of March 8, the county had lost about 7,400 jobs year-over-year. In Lee County, there were 11,000 jobs lost in the same 12 months. Fishkind called it “ugly,” but said he believes the worst is over.
Statewide, more than 77,000 jobs have been lost in the last year. Many were in construction. Builders have been forced to make cutbacks with the slowdown in residential and commercial construction, and some have gone bankrupt.
Collier has been hard hit because its economy isn’t diversified and its main drivers are construction and tourism, Fishkind said.
“Employment growth is going to be modest at best over the next few years,” he said. On the foreclosure front, there have been 1,600 single-family foreclosure filings in Collier since the beginning of the year. In all of 2007, there were 1,500, Fishkind said.
For condominiums, there have been 400 foreclosure filings so far this year, almost as many as for last year.
“I think ultimately we will start to see that peak and then level off. It’s a reflection of all the adjustable rate mortgages coming due,” said Russ Weyer, a senior associate with Fishkind & Associates, in an interview after the talk.
Lee County filings have already showed signs of stabilizing, he said.
The decline in housing starts will bottom out in 2008, but don’t expect them to skyrocket again like “Mount Everest,” Fishkind said.
The housing correction, high energy prices and federal cuts in interest rates all point to a national recession, he said.
He doesn’t expect a recovery in Florida’s economy this year. He predicts that the population won’t start growing again until next year. When people start spending more that will make the difference, he said. That could happen in a few months when millions of taxpayers receive economic stimulus checks from the federal government.
More than 200 people attended Fishkind’s presentation, held at NABOR’s office off Pine Ridge Road. It was a record showing for a NABOR quarterly luncheon.
John Zagar, president for Stock Realty in Naples, said Fishkind reaffirmed his own thoughts about the turning market.
At Lely Resort, one of Stock Construction’s communities off U.S. 41 East, there were 160 sales in the first three months of this year, compared to about 100 for all of 2007, he said.
Arlene Carozza, NABOR’s president, said after the board’s March report showed a sharp spike in pending sales the members started feeling the worst was behind them. Though the busy winter season traditionally ends at Easter, local Realtors continue to be busy with more open houses, showings and closings, she said.
“Usually by this time Naples is cleared out,” Carozza said. “People are staying — and buying.”
To see Hank Fishkind’s full report, visit www.fishkind.com.
© Naples News
Thursday, April 24, 2008
Renowned Florida economist Hank Fishkind spoke the words Naples Realtors and brokers wanted to hear.
The housing markets hit bottom in Collier County and home prices aren’t going to drop anymore, he said Thursday in a talk organized by the Naples Area Board of Realtors. “The markets are not eroding further,” said Fishkind, principal of Orlando-based Fishkind & Associates.
Prices have flattened out and if they were going to fall any more that would have happened in the last six months, he said.
However, he said it will take another six to 12 months for sales volumes to really start improving in the Naples area.
In Lee and Charlotte counties, the recovery is going to take longer because there are higher inventories of unsold homes, Fishkind said. In those counties, there was more overbuilding because land prices were so much cheaper, he said.
While he described the condominium market in Florida as a “disaster” generally because there has been so much overbuilding, he said it’s not as bad in the Naples area because the scarcity of land and high land prices have limited new development.
He described the unsold inventory of new homes in Collier County as “fairly small.”
In February, a little more than 200 existing single-family homes sold at an average price of $540,000 in Collier County, according to deed records, Fishkind said. There were more than 100 new single-family homes that sold for an average price of $375,000.
About 50 new condominiums sold for an average price of $350,000, and about 175 existing ones sold for an average price of $425,000 in February, he said.
“Basically prices are the same as in 2006,” Fishkind said.
He predicts that it will be “years” before prices go up again.
Fishkind also touched on job losses and foreclosures in Collier County.
As of March 8, the county had lost about 7,400 jobs year-over-year. In Lee County, there were 11,000 jobs lost in the same 12 months. Fishkind called it “ugly,” but said he believes the worst is over.
Statewide, more than 77,000 jobs have been lost in the last year. Many were in construction. Builders have been forced to make cutbacks with the slowdown in residential and commercial construction, and some have gone bankrupt.
Collier has been hard hit because its economy isn’t diversified and its main drivers are construction and tourism, Fishkind said.
“Employment growth is going to be modest at best over the next few years,” he said. On the foreclosure front, there have been 1,600 single-family foreclosure filings in Collier since the beginning of the year. In all of 2007, there were 1,500, Fishkind said.
For condominiums, there have been 400 foreclosure filings so far this year, almost as many as for last year.
“I think ultimately we will start to see that peak and then level off. It’s a reflection of all the adjustable rate mortgages coming due,” said Russ Weyer, a senior associate with Fishkind & Associates, in an interview after the talk.
Lee County filings have already showed signs of stabilizing, he said.
The decline in housing starts will bottom out in 2008, but don’t expect them to skyrocket again like “Mount Everest,” Fishkind said.
The housing correction, high energy prices and federal cuts in interest rates all point to a national recession, he said.
He doesn’t expect a recovery in Florida’s economy this year. He predicts that the population won’t start growing again until next year. When people start spending more that will make the difference, he said. That could happen in a few months when millions of taxpayers receive economic stimulus checks from the federal government.
More than 200 people attended Fishkind’s presentation, held at NABOR’s office off Pine Ridge Road. It was a record showing for a NABOR quarterly luncheon.
John Zagar, president for Stock Realty in Naples, said Fishkind reaffirmed his own thoughts about the turning market.
At Lely Resort, one of Stock Construction’s communities off U.S. 41 East, there were 160 sales in the first three months of this year, compared to about 100 for all of 2007, he said.
Arlene Carozza, NABOR’s president, said after the board’s March report showed a sharp spike in pending sales the members started feeling the worst was behind them. Though the busy winter season traditionally ends at Easter, local Realtors continue to be busy with more open houses, showings and closings, she said.
“Usually by this time Naples is cleared out,” Carozza said. “People are staying — and buying.”
To see Hank Fishkind’s full report, visit www.fishkind.com.
© Naples News
Friday, March 21, 2008
Short sales the good, the bad and the ugly!
Short Sale Process Needs Standardization and Transparency
by Bob Hunt
It actually wasn't all that long ago that the term short sale was unfamiliar to a lot of real estate practitioners and a good portion of the general public. How quickly things have changed. A Google search for real estate short sale yields more than 600,000 entries. Real estate agents are inundated with flyers, ads, and come-ons for seminars and classes on the subject; and probably just about every market area in the country contains at least a half-dozen agents who will claim to be specialists in the field.
In my own Orange County, California, market area a recent examination of MLS data showed that at least 20 percent of the residential listings were identified as being short sales. Significantly, though, the number of short sales that actually closed escrow was a decidedly lower proportion. Somewhere between 6 to 8 percent of all closed escrows were short sales. At the current rate we have a sixty month (5 years!) supply of short sale listings. Regrettably, many of those will go to foreclosure before they are ever sold.
One reason that short sales comprise such a small proportion of actual closings is that short sales are frequently difficult, frustrating, and time-consuming, with little prospect of a successful closing. There is no hard and comprehensive evidence for this; but there is plenty of the anecdotal kind. Stories abound about the short sales that ultimately went to foreclosure even though there had been legitimate offers made on them. More than once those offers were higher than the ultimate price received for the property after it had become an REO. The common thread through all these stories? Apparent lender indifference, convoluted processes, and interminable failures to make decisions.
As a result, many competent and experienced agents just don't want to become involved with the process of making an offer on a short sale.
Recently, our colleague David Silver-Westrick, one of the sharper tools in the Realtor® shed, formulated a proposal that major lenders and loan-servicing institutions sign on to a "Short Sale Bill of Rights." David listed 4 points:
A commitment by all lenders and their servicers to make it easy for sellers and agents to immediately locate online the correct department and the individual who will be responsible for processing the short sale applications.
A single industrywide short sale application and list of supporting documents that all lenders and servicers would agree to accept. The Uniform Loan Application is an industry standard. It should not be hard to agree on a Uniform Short Sale Application.
A commitment by all lenders and their servicers to responsively update the listing agent and seller on the status of the short sale application throughout the process.
A commitment by all lenders and their servicers to deliver a clear answer, in writing, yes or no, within a reasonable time frame. I suggest 30 days from receipt of the complete application is reasonable.
Of course, one might want to add to or modify some of these points; but the basic idea is a sound one. If implemented, it would no doubt bring more agents and their clients into the short sale arena; and it would certainly result in an increase in short sale closings.
It would be nice to think that organized real estate -- primarily, the National Association of Realtors® -- along with the appropriate governmental agencies and congressional committees might get together with the major lending institutions to agree on a uniform and sensible short sale process such as that outlined in Mr. Silver-Westrick's proposal. As he points out, "Short sales, done properly, act as a safety valve in a declining market, minimizing harm to lenders and sellers alike. The status quo is harming everybody and is a drag on the economy. Lenders are losing more money than they need to. Sellers feel like they have no control. Buyers are frustrated and tempted to wait to buy. Agents are spinning their wheels. We can certainly do better than this … ."
He is right.
Copyright © 2008 Realty Times. All Rights Reserved.
I loved this article and thought it was a good one to share with you. It's so true, I've learned a great deal about short sales by taking them on and it's no picnic! The lenders are overburdened with foreclosures and short sales and their response time is terrible. Buyers don't want to wait weeks for answers, they end up withdrawing their offers and moving on! A good real estate agent makes sure all parties are on the same page and that all information that the lender has requested is in process before agreeing to take on one. Negotiate your commission up front and don't be shy about it, why should you work twice as hard for less money! You are saving the lender money in the long run as taking a property through foreclosure can be costly and time consuming and also detrimental for the home setting vacant for months. If you don't feel comfortable, don't do it! It will require extra time and energy which is time well spent if you can accomplish the sale!
Beth Brown Realtor with Coldwell Banker 550 5th Ave. S; Naples, FL 34102 Bethbrownrealtor@comcast.net 239 250-2408
Wednesday, February 27, 2008
HOUSING RECOVERY PREDICTION
Zell predicts housing recovery in spring
Dow Jones Newswires
8:42 AM CST, February 26, 2008
Real estate billionaire Sam Zell, chairman of Equity Group Investments, suggested the housing market will begin its recovery this spring."I think (housing) starts have already pretty much bottomed out," Zell told CNBC Tuesday. "I think sales will start to occur, and we'll start to clean up the inventory."
Referring to the textbook definition of recession, Zell said the economy hasn't experienced two consecutive quarters of negative growth."We have yet to have a first quarter of negative growth," he said. "The only solution is time and a lot less panic. It' not a cash crisis, it's a market crisis."So in effect, when Citi takes a $10 billion hit, it doesn't mean they have $10 billion less the next day, it means their portfolio has been marked down," he said.Markups usually follow, he added.
Zell, who is also chairman and CEO of Tribune Co., which publishes the Chicago Tribune, also endorsed Ben Bernanke's reappointment as chairman of the Federal Reserve."Bernanke's reduction in interest rates has been spot-on because basically we're going to fix the credit markets by creating a big enough spread between the risk-free costs of capital and what's available.
So greed overtakes fear and the game begins again."
Copyright © 2008, Chicago Tribune
Good stuff! I like this guy.....
Dow Jones Newswires
8:42 AM CST, February 26, 2008
Real estate billionaire Sam Zell, chairman of Equity Group Investments, suggested the housing market will begin its recovery this spring."I think (housing) starts have already pretty much bottomed out," Zell told CNBC Tuesday. "I think sales will start to occur, and we'll start to clean up the inventory."
Referring to the textbook definition of recession, Zell said the economy hasn't experienced two consecutive quarters of negative growth."We have yet to have a first quarter of negative growth," he said. "The only solution is time and a lot less panic. It' not a cash crisis, it's a market crisis."So in effect, when Citi takes a $10 billion hit, it doesn't mean they have $10 billion less the next day, it means their portfolio has been marked down," he said.Markups usually follow, he added.
Zell, who is also chairman and CEO of Tribune Co., which publishes the Chicago Tribune, also endorsed Ben Bernanke's reappointment as chairman of the Federal Reserve."Bernanke's reduction in interest rates has been spot-on because basically we're going to fix the credit markets by creating a big enough spread between the risk-free costs of capital and what's available.
So greed overtakes fear and the game begins again."
Copyright © 2008, Chicago Tribune
Good stuff! I like this guy.....
Sunday, February 17, 2008
Mortgage Rates
Mortgage Rates Move Little in Freddie Mac's Weekly Survey
McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.72 percent with an average 0.4 point for the week ending February 14, 2008, up from last week when it averaged 5.67 percent. Last year at this time, the 30-year FRM averaged 6.30 percent.
The 15-year FRM this week averaged 5.25 percent with an average 0.4 point, up from last week when it averaged 5.15 percent. A year ago at this time, the 15-year FRM averaged 6.03 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.19 percent this week, with an average 0.4 point, down from last week when it averaged 5.21 percent. A year ago, the 5-year ARM averaged 6.01 percent.
One-year Treasury-indexed ARMs averaged 5.03 percent this week with an average 0.4 point, down from last week when it was 5.03 percent. At this time last year, the 1-year ARM averaged 5.52 percent
"This week was relatively light on the number of economic data releases, which painted a mixed picture regarding the current state of the economy," said Frank Nothaft, Freddie Mac vice president and chief economist. "On a positive note, labor productivity rose higher than market forecasts in the fourth quarter of 2007 while gains in labor costs slowed. However, pending existing home sales fell for the second month in December, indicating further weakness in home sales for January and February. As a result, mortgage rates were roughly unchanged this week."
"These historically low mortgage rates and declining house prices contributed to the highest housing affordability in December since March 2005, according to the National Association of Realtors®. However, with banks continuing to tighten lending standards, fewer families will likely have an opportunity to take advantage of these factors."
If you're a first time homebuyer this is a great opportunity to enjoy homeownership. If you need to refinance, the rates may be attractive for that as well. If you're an investor, holy cow how cheap can it get to use other peoples money (OPM)! Call me, Beth Brown of Coldwell Banker wants to sell you a home... 239 250-2408
Copyright © 2008 Realty Times.
McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.72 percent with an average 0.4 point for the week ending February 14, 2008, up from last week when it averaged 5.67 percent. Last year at this time, the 30-year FRM averaged 6.30 percent.
The 15-year FRM this week averaged 5.25 percent with an average 0.4 point, up from last week when it averaged 5.15 percent. A year ago at this time, the 15-year FRM averaged 6.03 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.19 percent this week, with an average 0.4 point, down from last week when it averaged 5.21 percent. A year ago, the 5-year ARM averaged 6.01 percent.
One-year Treasury-indexed ARMs averaged 5.03 percent this week with an average 0.4 point, down from last week when it was 5.03 percent. At this time last year, the 1-year ARM averaged 5.52 percent
"This week was relatively light on the number of economic data releases, which painted a mixed picture regarding the current state of the economy," said Frank Nothaft, Freddie Mac vice president and chief economist. "On a positive note, labor productivity rose higher than market forecasts in the fourth quarter of 2007 while gains in labor costs slowed. However, pending existing home sales fell for the second month in December, indicating further weakness in home sales for January and February. As a result, mortgage rates were roughly unchanged this week."
"These historically low mortgage rates and declining house prices contributed to the highest housing affordability in December since March 2005, according to the National Association of Realtors®. However, with banks continuing to tighten lending standards, fewer families will likely have an opportunity to take advantage of these factors."
If you're a first time homebuyer this is a great opportunity to enjoy homeownership. If you need to refinance, the rates may be attractive for that as well. If you're an investor, holy cow how cheap can it get to use other peoples money (OPM)! Call me, Beth Brown of Coldwell Banker wants to sell you a home... 239 250-2408
Copyright © 2008 Realty Times.
Tuesday, February 12, 2008
Positive News for Real Estate In Naples Florida - Investors take note!
Naples-Marco Island, Fla.Rank: 10
Projected total GMP growth, 2007-2012: 22.7%
Over the last decade, an influx of wealthy new residents has driven population levels and tax revenues to new heights in the Naples area. These new residents have helped stabilize the local economy by avoiding risky mortgages and heavy debt loads that threaten to decimate other areas in Florida. According to Global Insight, personal income for area residents is expected to grow by 7.2% on average until 2012--the top rate in the nation.
Source: Moody's Economy.com, Global Insight
Wednesday, February 6, 2008
Today's Featured Bank Owned Property
Property Information:
Bank owned property! Not a Short Sale. 2 bedroom plus den, 2 bathroom 1st floor end unit condo with attached garage. Quiet golf community convenient to shopping and Naples beaches. This unit just steps from the community pool. Comes with golf or social membership. Asking $264,900...
Call Beth Brown at 239 250-2408 or email me at BethBrownRealtor@comcast.net if you would like more information about this property or others.
ONE DAY AT A TIME IN REAL ESTATE!
Every day we hear news about the real estate industry, mostly depressing. You see the media mongrels’ feed on news that creates negative emotion because that sells! Not that we should put our heads in the sand, we do have a huge problem that will take time to resolve but lets face it, it’s not the first time that there have been problems with the housing industry. Just like with stocks, gold, commodities, and automobiles…it’s a cyclical thing and in time we’ll be on to the next thing and our housing problems will be history once again.
Right now our biggest challenge is the glut of inventory and the record number of foreclosures (with more coming down the pipeline). We have choices, either stay where you are for now, or accept that what your house was once worth is history! If you have a plan and you are selling to accomplish that, be realistic and price it to sell, everything has it’s selling price. When you decide to sell listen to the advice of a seasoned realtor and if you’re not comfortable with what they are telling you and the facts that they are presenting, then now is not the time for you to “test the market.”
Right now even homes that appear to be priced right are taking much longer to sell, it’s a buyers market and there is so much for them to look at that they can’t make a decision. Add to that the builders are slashing their prices, giving away what used to be upgrades for free, paying your closing costs and practically putting your first born through college! They have to in order to survive, if they don’t more job losses and more homes for sale or foreclosure. It’s a vicious circle here and people that are essentially “locked in their homes.” So fasten your seat belts and stay in your seats, the ride isn’t over yet. But it will get better…
Here is an article published today on Realty Times website. Scary but true…
A Super Bowl Year For Foreclosures by Peter G. Miller
"The final 2007 figures from RealtyTrac.com show that foreclosure actions increased 79 percent when compared with 2006. Roughly 2.2 million households received default notices, auction sale notices and notices of bank repossessions. Not all of these homes were lost -- about 1.3 million were sold at the courthouse steps but the rest are hardly safe: They belong to distressed homeowners, people likely to sell fairly soon if they can whether prices are up, down or sideways.
These forced sales, when they appear in official records, will become part of the "comps" used to value your home if you sell or refinance. And if the comps are down you can guess how the world will price your house.
Look for more of the same in 2008 and perhaps worse. Just in the toxic loan category, the Federal Deposit Insurance Corporation now estimates that "almost 1.3 million hybrid loans are scheduled to undergo their first reset during 2008. An additional 422,000 subprime hybrid loans are scheduled to reset in 2009, which means these problems will not end anytime soon."
What can you do? Don't panic. Once the current inventory of exploding ARMs is refinanced or terminated there will be less downward pressure on home prices. Until then, buy and refinance with fixed-rate loans at today's low rates and pay down consumer debt. Most importantly, ask nearby brokers about sale trends in your community because national numbers may not reflect local real estate patterns."
You can visit my website at www.CallNaplesHome.com or email me at BethBrownRealtor@comcast.net
Right now our biggest challenge is the glut of inventory and the record number of foreclosures (with more coming down the pipeline). We have choices, either stay where you are for now, or accept that what your house was once worth is history! If you have a plan and you are selling to accomplish that, be realistic and price it to sell, everything has it’s selling price. When you decide to sell listen to the advice of a seasoned realtor and if you’re not comfortable with what they are telling you and the facts that they are presenting, then now is not the time for you to “test the market.”
Right now even homes that appear to be priced right are taking much longer to sell, it’s a buyers market and there is so much for them to look at that they can’t make a decision. Add to that the builders are slashing their prices, giving away what used to be upgrades for free, paying your closing costs and practically putting your first born through college! They have to in order to survive, if they don’t more job losses and more homes for sale or foreclosure. It’s a vicious circle here and people that are essentially “locked in their homes.” So fasten your seat belts and stay in your seats, the ride isn’t over yet. But it will get better…
Here is an article published today on Realty Times website. Scary but true…
A Super Bowl Year For Foreclosures by Peter G. Miller
"The final 2007 figures from RealtyTrac.com show that foreclosure actions increased 79 percent when compared with 2006. Roughly 2.2 million households received default notices, auction sale notices and notices of bank repossessions. Not all of these homes were lost -- about 1.3 million were sold at the courthouse steps but the rest are hardly safe: They belong to distressed homeowners, people likely to sell fairly soon if they can whether prices are up, down or sideways.
These forced sales, when they appear in official records, will become part of the "comps" used to value your home if you sell or refinance. And if the comps are down you can guess how the world will price your house.
Look for more of the same in 2008 and perhaps worse. Just in the toxic loan category, the Federal Deposit Insurance Corporation now estimates that "almost 1.3 million hybrid loans are scheduled to undergo their first reset during 2008. An additional 422,000 subprime hybrid loans are scheduled to reset in 2009, which means these problems will not end anytime soon."
What can you do? Don't panic. Once the current inventory of exploding ARMs is refinanced or terminated there will be less downward pressure on home prices. Until then, buy and refinance with fixed-rate loans at today's low rates and pay down consumer debt. Most importantly, ask nearby brokers about sale trends in your community because national numbers may not reflect local real estate patterns."
You can visit my website at www.CallNaplesHome.com or email me at BethBrownRealtor@comcast.net
Tuesday, February 5, 2008
Beth Brown and Real Estate Today!
Hello and thank you for visiting my real estate blog!!!
In this blog I will try to provide fresh content about what's going on in Real Estate world and answer any questions that you may have.
For those of us in real estate in Florida, we've taken a real beating this year and understandably so. We had it so good for the past few years that many agents don't know how to survive in this turn around market. Prices went up so fast for so long that you could virtually have a listing and never get it to paper before it would be sold. Well now that's all changed, we now have more listings than we can manage and many buyers who want to make offers for considerably less than the asking price. Add to that angry homeowners who are not adjusting well to the new market prices and you have lots of stress!
Hang on consumers; this too shall pass (as my mother used to say.) No better time than now to buy, great interest rates and great prices, tax portability... If you think you want to buy, than you better get with the program or you'll be kicking yourself sometime down the road. You probably want to ask, "How far down the road Beth?" Well if I had that answer I wouldn't need to be selling real estate because I'd be a billionaire.
No matter, I love what I do and each day is a new chapter in my book. I also like to sell bank owned property or formerly referred to as REO's. If you're looking to buy a property that is a foreclosure I have several and you can usually get a pretty good deal on them.
My feature property today is a two story home that needs a cash offer. Needs work but what a beautiful piece of property right across from a new elementary school that is being built. Follow the link below to view this property. All is well in paradise; call me if you would like to make an offer on this property or any others... You can also visit my website to view all of my listings.
Click on the link below to view the web page:
Review Listing: Click Here
Beth Brown
http://www.callnapleshome.com/
In this blog I will try to provide fresh content about what's going on in Real Estate world and answer any questions that you may have.
For those of us in real estate in Florida, we've taken a real beating this year and understandably so. We had it so good for the past few years that many agents don't know how to survive in this turn around market. Prices went up so fast for so long that you could virtually have a listing and never get it to paper before it would be sold. Well now that's all changed, we now have more listings than we can manage and many buyers who want to make offers for considerably less than the asking price. Add to that angry homeowners who are not adjusting well to the new market prices and you have lots of stress!
Hang on consumers; this too shall pass (as my mother used to say.) No better time than now to buy, great interest rates and great prices, tax portability... If you think you want to buy, than you better get with the program or you'll be kicking yourself sometime down the road. You probably want to ask, "How far down the road Beth?" Well if I had that answer I wouldn't need to be selling real estate because I'd be a billionaire.
No matter, I love what I do and each day is a new chapter in my book. I also like to sell bank owned property or formerly referred to as REO's. If you're looking to buy a property that is a foreclosure I have several and you can usually get a pretty good deal on them.
My feature property today is a two story home that needs a cash offer. Needs work but what a beautiful piece of property right across from a new elementary school that is being built. Follow the link below to view this property. All is well in paradise; call me if you would like to make an offer on this property or any others... You can also visit my website to view all of my listings.
Click on the link below to view the web page:
Review Listing: Click Here
Beth Brown
http://www.callnapleshome.com/
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