Is this it?

Is this the turn in the market that we have been warning buyers about?

Are interest rates heading up?

Is it truly time for buyers to get off the fence and take that step to buy NOW before rates go up?

This week the Federal Reserve opted not to cut the Fed Funds Rate again.

In the past, a cut in the Fed Funds rate often times was followed by a drop in mortgage interest rates.  However, that has just not always been the case, recently, as there has been so much money lost in all sectors of the banking and real estate industry.  We have seen rates sometimes fluctating on a daily basis.

But, what about the Fed’s decision this week?  The Fed has been aggresively cutting interest rates, hoping to avoid recession.  They opted to not cut the Fed funds rate at all.

What does this mean to the real estate market?

Is this a sign of what’s coming next?

We are now hearing that the government is concerned about inflation.

Buyers have been asking the same question, Is it Time to Buy? I say yes!!!!

Today, with higher gas, food prices and energy costs we have the risk of inflation spreading.  Thus, we are hearing rumors that the next move for the Fed may very well be to increase the Fed funds rate before the end of the year!

Will mortgage rates go up with a Fed funds increase, too?

How much?

And then, how much after that?

If this is the case, buyers in areas experiencing price declines and market corrections that are waiting to buy may not benefit AT ALL from waiting for prices to continue downward.  They could be faced with higher interest rates, thus affording them less house for their money spent.

I have heard reports that the Fed could start raising interest rates as early as their August 5 meeting or their December 16 meeting. Some are saying no, that this won’t happen. That this may be too big a blow to our already shaky economy. Some feel that we may not see rate increases until sometime next year. But, sometime WHEN next year?  They’re not disputing that rates will be going up to ward off inflation.

Who knows?

In my opinion, it’s time for buyers to get serious about getting into the market and buying that house they’ve been waiting for, NOW.

If only we had a crystal ball to predict the future…

Here in Brevard County Florida our rainfall levels are still below average for this time of year.  But, over the past week we have been getting some very heavy showers in the afternoon, including heavy thunder and lightning.

Our average rainfall amounts are 17-18 inches for this time of year.  However, we have only had about 12 1/2 inches of rain so far.  It seems that our rain usually picks in July and August.  In the afternoons around 3:00 in usually starts to get cloudy.  And then we get a 30 to 45 minute shower, that cools everything off and then it clears right back up.

Recently I got a call from a previous customer of mine, asking me to do a Free Market Analysis on her home. Currently, we are receiving many of these requests, as Brevard County Residents are trying to interpret the information that they are hearing on the local news and on the streets. There is so much mis information coming from the media today.

As I hadn’t seen her in a couple of months, we spent some time playing catch up and talking about how time felt as if it was just getting away from both of us. As our children grow older, it seems that time only goes faster.

As we began talking about current market conditions and prices in Brevard County she began to tell me what was happening around her neighborhood. She told me what houses on her street had been selling for. As, I checked the information that I had available, I found that the sales prices she was providing were nearly 35% to 50% above the actual prices that homes in her area where selling for. I asked her where she was getting her information. She indicated that the neighbors were always talking and they all kept track of home prices. HMMMM. Well, as we continued, I found that over 50% of the information she had been provided was incorrect.

As a Brevard County Realtor I have access to property sale information, through the Melbourne Area Association of REALTORS website. This includes homes sold through the MLS over the past several years. I also have information available, as do consumers, through the Brevard County Property Appraisers Website on recent sales. Often it takes 2-3 months for their sale information to be updated.

My friend knew that I could provide her correct sales information, as she felt that some of the information she was getting was incorrect. So, stop guessing and ..Call me today at 321-253-4545. I will be more than happy to provide you sales information on any home that has sold. Or call me for Your FREE Market Analysis on your Brevard County Florida home.

In real estate everything we do has our picture attached to it. After all, isn’t it a REALTORS job to have customers recognize us by looking at a picture? Isn’t that part of our branding when we advertise? We look at websites and blogs and house listings and agent flyers and business cards with REALTOR pictures all day long. We want people to grow accustomed to seeing our familiar faces.

But, how many times have you finally met a REALTOR after talking on the phone with them, or seeing their print advertising for months, and you wondered who the person walking up to shake your hand was? The first thought is, this person looks nothing like their picture. HMMMM. Well, I always assumed that the REALTOR had a picture taken,  put it on their cards, and just kept having the cards reprinted.

I have met REALTORS at social functions, marketing meetings and seminars after years of seeing their print advertising and some look nothing at all like their pictures.

Well, guess what, the same thing happened to me recently. I met with a friend of mine that I had previously done business several years ago. As always, I reached out and handed him two of my business cards, one to keep and one to give to a friend. We exchanged hellos and he glanced down at my card. “How old were you when this picture was taken?, ” he asked. I was a bit taken aback. “What do you mean, how old was I?” Well, he went on to tell me that the picture looked like it was taken when I was 16 years old. I didn’t know if I should take that as a compliment or an insult. “Do I really look that different?” I asked. “Well, it’s not really your face that is different, but your hair is a different color now.” Oh, I thought….that’s true. I had to think… I realized that the picture was taken 6 years ago.

I have since changed my picture on all of my advertising, however I still have a handful of business cards with the old picture on them, and I have ordered new cards with the updated picture.

I wonder how many years will pass before I have to change my picture on all of my advertising again.

Here in Melbourne, located in Brevard County Florida we keep hearing the same old story. Sellers are pricing high, hoping to sell for 2005 prices. Our local real estate has been experiencing a market correction. The market is adjusting for the over inflated home prices buyers were paying in 2005. But, some sellers are still hanging on to yesterday’s prices. Some have no options, as they bought at the peak of the market. Their alternatives are selling the home on a short sale, for less money than they owe the bank on the mortgage, or to let the house fall into foreclosure, thus damaging their credit.

Sellers that purchased prior to 2004, here in Brevard County Florida are typically in a position today to sell for more than they paid for their homes. Which after all is every sellers goal isn’t it? In reality, the purchase price of your home really has no bearing on what the home is worth in today’s market, anyway, contrary to what some may tell you. Your home is worth what a ready, willing and able buyer is willing to pay for it in today’s competitive market. And, well priced homes ARE selling today.

Some sellers are still hanging on to yesterday’s prices. Some are shooting themselves in the foot. But, today sellers are losing money on the sale of their homes. Some will say that’s because of the change in the market. No, I mean they are losing money on the sale of their homes, due to poor advice or in some instances, sheer stubbornness.

I know of a home here in Melbourne Florida that was listed for $350,000 about 15 months ago. This was the highest priced home in an area of similar homes. At that time it was worth about $315,000. I saw the inside of the home and it needed carpet and paint throughout. The seller made consistent price reductions, but the price always stayed too high for the current market. The seller sold after 15 months, after 15 months worth of utility payments, taxes, insurance, maintenance costs for $205,000! (His wife already relocated to another city, where she was renting an apartment.) He sold for WELL BELOW MARKET VALUE. He never painted, nor changed out the carpeting. The buyers knew how long the house was on the market, and they knew they had to paint and carpet, so they knew he would take considerably less money. If he had priced it properly at the time he listed it for sale, painted the interior and replaced the carpet his market time would have been shortened, considerably.

We hear and see similar stories to this one several times a week. These kinds of things shouldn’t be happening. Whose responsibility is this? Is it the owners? Is it the listing agent’s? This house had over 4 real estate companies involved. Did one of the agents tell him? This couple left $100,000 on the table, had they sold over a year earlier…WHY?

What a terrible shame! We can’t live in the past. We have to live in today, analyze today’s market, make sound marketing decisions, and move ahead. Currently, here in Brevard County Florida Real Estate, homes are not selling, today, for what they sold for yesterday. But remember, HOMES ARE SELLING, and smart sellers are moving their properties off the market, and walking away with money in their pockets.

Termites Cost Homeowners Thousands

Our soil here in Florida is conducive to attracting termites. It has often been said, that it’s not “if” you get termites, but when you get termites in Florida. Termites cause millions of dollars of damage each year. They can eat through the wood in your home and cause severe structural damage if left untreated. They can be found in concrete block constructed homes as easily as in wood frame homes.

There are two main types of termites, subterranean and drywood. Subs build mud tunnels, burrow up from the soil, and head up the walls of your home. They must have moisture or a water source in order to live. They can be found in wet areas of the home, especially around doors and windows. They love damp moist kitchens and bathrooms behind the tile, if there is a leak.

Drywoods are the other main type of termite. They can live in your attic and are often times found in higher locations around your house. They are slower eaters than subs. They have wings and they can swarm.

Both types can go undetected for many years.

So how do you protect your home?

Keep all wood siding up off the ground.

Keep your mulch from touching the house.

Don’t stack wood against the side of the house.

Divert your gutter output away from the base of your home.

Have an inspection done by a qualified termite company and renew your protection annually.

When purchasing a home, insist on a termite inspection and request the history of the home.

by Sandy Shores Melbourne FL REALTOR

Florida Governor Charlie Crist signed the Homeowner’s Bill of Rights, better known as property insurance reform, this week. The bill provides protection for Florida homeowners, and will assist in keeping insurance costs affordable.

The law goes into effect July 1, 2008:

• It extends the rate freeze from January 2009 to January 2010 for Citizens Property Insurance Corp., the state’s insurer of last resort.
• It allows properties up to $2 million to now be covered under Citizens Insurance. It previously allowed properties with replacement value of up to $1 million to be covered. This includes single family, as well as condo units.
• It requires Citizens’ policyholders of property valued over $500,000 in wind-borne areas to disclose the property’s windstorm mitigation rating to prospective buyers.
• It increases fines for violations of the insurance code by private insurers.
• It extends the provision to January 2010 that insurers get state approval before raising property insurance rates.
• It requires insurers to notify state regulators 90 days before dropping more than 10,000 homeowner policies in a year.
• Requires insurers to use state-approved methods to predict the risk of hurricanes, a key factor in setting rates.

Is this the help that Florida needs? Or is this just a tiny band aid, on a much bigger problem?

Visit my website at www.SandyShoresMelbourne.com

by Sandy Shores Melbourne FL REALTOR

According to recent statistics, in some areas of the country nearly 80% of potential homebuyers are waiting for their home to sell. They have their home on the market for sale. They cannot buy another property until someone buys theirs first. So what are owners to do?

Is this creating a glut of unsold homes on the market?

Today, many investors have dropped out of the market. They are either trying to get rid of a property that they bought at the peak of the market in 2005 or they are just sitting on the fence, waiting to see what will happen next. Investor financing is more difficult to secure today, and down payment amounts in some areas have gone up to 20% for some investor properties. So, investors are not actively purchasing, like they were in prior years.

The federal government has tried to spur the market, by raising FHA loan limits in some areas from $417,000 to $720,750. This allows more flexibility for some borrowers. But, will it help? Will it give our market the additional boost that it needs?

The government is looking for additional ways to give the housing market a kick in the pants. Talks are underway of a tax credit to homebuyers. Other considerations are more favorable federal down payment assistance programs.

However, here in Brevard County Florida Real Estate, we have seen a slight shift in the market. And buyers are beginning to purchase homes again.

Today, I think that the new programs and government incentives are great. In this market it is a definite asset to have your home for sale in a great location with great amenities and in great condition, HOWEVER, PRICE is still the number one determining factor as to how quickly a home will move off of the market.