Posts Tagged ‘home prices’
Posted by Michael Saunders on December 31, 2009
Across virtually every segment of the economy, 2009 sputtered-in as miserably as 2008 sputtered-out. Yet in spite of its many challenges, the past year showed that it’s better to light one candle than to curse the darkness. For if the experiences of 2009 taught us nothing else, we learned that true professionals united in common cause can truly make good things happen.
That’s how agents from Michael Saunders & Company helped re-awaken the region’s comatose housing market in 2009. United in purpose and armed with statistics to prove the point—they were able to educate sellers to the new realities of a market in which competitive pricing is key. Of course, it never hurts that ours remains Florida’s top destination for a lifestyle rich in world-class cultural and recreational amenities.
With corrected prices now the accepted norm and the popular first-time homebuyer tax credit renewed for another six months, buyers have rushed in and put the market on the fast track to stability. They’ve driven up year-over-year the number of home sales by as much as 63 percent, according to the most recent monthly MLS sales recap for November. As a company, Michael Saunders & Company is proud to announce that our agents finished 2009 with over $1 Billion in closed dollar volume and exceeded our 2008 production. It took 30 percent more transactions to accomplish this uphill feat, but lowered prices proved the catalyst by which buyers were finally heartened to return to the market.
Even as the S&P 500 gained over 69% from its annual low, holiday sales rose and the consumer confidence index improved over 40% in 2009, economists are dubbing 2010 a “Tabletop” year for the real estate industry. This means that having clawed its way back to a sustained level of sales activity, our market will continue in something of a horizontal recovery; without any major setbacks or much in the way of noticeable price appreciation, until the job market picks up and the inventory of properties—especially foreclosures—drops off. With unemployment showing signs of slowing, we are beginning to see the impact of our stimulus dollars at work.
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Posted by Ann Stickel on November 30, 2009
Refinances and first-time homebuyer property sales largely contributed to third quarter volume
Consumers were active in the housing market during the third quarter with refinance and purchase applications. Existing homeowners fueled the refi activity, and first-time homebuyers accounted for 43% of home purchases in August, according to the Sept. 18 issue of Inside Mortgage Finance.
In a September 2009 Wells Fargo Home Mortgage survey, 56% of first-time homebuyers cited the $8,000 tax credit for their reason to purchase. Low interest rates drove 66% of these borrowers, and 74% attributed the decision to low home prices.
In the same survey, renters shared their reasons for intending to purchase their first home within six months. Roughly 84% said low home prices were the reason, 74% cited low interest rates, and 72% referenced the tax credit as the key deciding factor.
As of the publication date, there is still debate in Congress about whether the first-time homebuyer tax credit will be extended beyond the Nov. 30 deadline.
When will local housing markets recover?
Recent news released from the National Association of REALTORS® showed that pending home sales have increased for seven consecutive months based on contracts signed in August. In addition, the S&P/Case-Shiller Home Price Indices demonstrated that the annual decline in home price values continues to slow and that many markets have experienced some sustained monthly increases.
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Posted by John Butzko on November 17, 2009
The laidback lifestyle on Anna Maria Island attracts many interested homebuyers.
Wonderful values make the current real estate market very appealing to buyers. Pam Ali, branch manager of Michael Saunders & Company’s Bradenton office, notices an increase in activity on Manatee County’s beautiful Anna Maria Island.
The Anna Maria area offers a true Florida island lifestyle. The quaint feeling of smaller buildings and beautiful beaches attracts buyers who are looking for a quiet place to unwind. Many of those who have purchased on Anna Maria Island have done so for either a second home or to completely relocate to enjoy the ultimate in Florida island living. Walking on the beaches, watching sunsets, kayaking the sparkling waterways and excellent fishing are the ways of life on the island, and today’s market has offered many opportunities for buyers in all price ranges to take advantage of some of the best properties available. (more…)
Posted by John Butzko on November 10, 2009
Downtown Sarasota offers an abundance of exciting lifestyle options.
The greater Sarasota area exudes an air of relaxed sophistication, complete with an abundance of recreational activities and a variety of breathtaking cultural attractions, all surrounded by picturesque natural beauty. The residential opportunities are just as diverse, from Gulf-front condominiums, golf course villas and beach houses to traditional single-family neighborhoods. And in today’s market, the choices available are both attractively priced and sure to please any taste.
Gary Loughlin, branch manager of Michael Saunders & Company’s longstanding Main Street office, is pleased top report increasing sales activity throughout the area. New residential property sales in October were up 50 percent over sales in September and over 100 percent ahead of October of 2008. (more…)
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Posted by Michael Saunders on October 28, 2009
This is an audience participation post in which you are invited and encouraged to weigh-in with your opinions on one of our region’s most pressing economic issues. But first, read on.
Counting today, there are just 30 days to go before the first time homebuyer tax credit expires. For all intents and purposes, if you haven’t gone to contract on a home by now you probably won’t complete your purchase in time to qualify for the credit.
That’s bad news for many qualified buyers who have been in the market for months only to be frustrated at every turn by a system that refuses to budge. Perhaps they’ve been denied financing due to an incompetent appraisal by an out-of-town appraiser. Perhaps the appraisal was accurate, credit scores were good, but the lenders simply refuse to lend. Or perhaps they’ve been on the buyer side of a short-sale where the seller and the lender have been locked in limbo for six months or more. For these reasons—and because the tax credit has had such a positive impact on our market—we join Congress in its support for extending the deadline at least another six months. There’s agreement on both sides of the aisle—and among leading economists—that a recovering housing market is the prime catalyst that will lead the rest of the economy out of the wilderness.
The tax credit has been so effective in stimulating sales and stabilizing home prices that continuing it seems like a no-brainer in light of a housing market that still exhibits contradictory signs of recovery. Secondly, a significant new wave of foreclosures is in the pipeline that could easily undo much of the progress that has been made toward reducing inventory and firming-up prices. One of the key benefits of the tax credit is that it ignited a firestorm of sales that has helped shore-up home prices in spite of the unprecedented number of foreclosures and short sales.
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Posted by Michael Saunders on July 8, 2009
FOR SELLERS, IT’S “PRICE”
If you must sell your home in today’s buyer-friendly market, the key word that should most inform your thinking is “price.” Even with sales perking-up considerably over the past few months, price remains every buyer’s top priority. With the sheer number of available properties continuing to significantly outstrip demand, if a home is not priced in line with—or below—similar properties that have sold in the last 60 days, its chances of selling in a reasonable amount of time are drastically diminished with each passing day. Moreover, home prices won’t stabilize until buyer demand catches up with supply.
Even though inventories of available homes are dropping significantly with each passing month, the key word that continues to affect supply is “foreclosures.” Regrettably, thousands more are anticipated by year’s end; which will continually replenish the market’s overabundance of homes.
An article in the May 5th edition of Business Week Magazine was blunt in its assessment of what sellers must do to succeed in today’s market. Its title basically says it all: “Want to Sell Your Home? Lower Your Price.” The article went on to say:
“Accepting a price reduction—even a sizable one—may be the only way to sell a house in this market. For sellers who can afford to ride out the downturn, the smart move is to take your property off the market. For everyone else it’s time to get real.”
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Across virtually every segment of the economy, 2009 sputtered-in as miserably as 2008 sputtered-out. Yet in spite of its many challenges, the past year showed that it’s better to light one candle than to curse the darkness. For if the experiences of 2009 taught us nothing else, we learned that true professionals united in common cause can truly make good things happen.
