Declining Inventories May Push Home Prices Up Temporarily Until Shadow Inventory is Released into the Market
While foreclosure activity has increased in the region, we are not seeing the homes released into the market. The robo-signing issues of the past appear to be still bogging down the process. Until those foreclosed roperties make it to the market, expect to see continued declining inventories and a possible increase in prices.
Available inventory is down in all local areas covered by this report, from a decline of 17.3% on Longboat Key to a decline of 30.8% in Bradenton from December 2010 to December 2011. Anna Maria continues on a healthy pace as the island is increasingly "discovered" by both tourists and investors. Siesta Key also is benefiting from the increased exposure as the nation's #1 beach with strong real estate activity.
Sales were up in all but one area in December compared to November, as buyers pushed to close for tax and other reasons. Although pending sales decreased from November to December in most areas, overall the year ended with a substantial increase in pending sales in 2011, heralding a strong season ahead.
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Pending Sales Continue to Indicate a Strong Season. The steady increase in pending sales validates what Realtors throughout the market have been forecasting for months – the upcoming season is going to be very strong for Southwest Florida real estate activity. In almost every market, pending activity compared to both last month and last year is edging higher, which indicates strong sales activity will follow. Prices continue their move from negative to positive as prices appear to bounce along the bottom of this slowly recovering market. While listing inventory continues to decrease, we anticipate this trend will dissipate after the beginning of the year with traditional sellers looking to capture the increased buying activity and banks finalizing the foreclosure process on homes that experienced a reprieve during the holidays. The strong demand will go a long way to compensate for the shadow inventory of bank-owned properties that are expected to be released into the market throughout the year....
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This month we continue to see the recent trends in both listing inventory and pending sales activity. The listing trend shows an increasingly smaller listing inventory, which traditionally would suggest a pending increase in home prices. However, the inventory of bank-owned or Real Estate Owned (REO) property is beginning to edge higher with recent indications that banks are beginning to release more distressed inventory into the market. Time will tell if this will lead to further price det erioration or simply leave prices flat due to the increased demand in our market....
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Short Sales, foreclosures, unemployment and hard economic times are adding up to difficult situations for parents. Sooner or later, many families face the prospect of moving and let’s face it… moving isn’t easy for anyone, kids included.
Deciding to move may have not been in your plans, but due to a job transfer or financial issues you find yourself making that decision. As troublesome as moving can be for parents, the experience can be traumatic for kids, children may not be a part of the decision to move, which makes it harder to understand, why this is happening.
Kids may require special attention during the transition, here are some tips that may help make the process less stressful for everyone.
Do not wait to inform your children about moving, tell your kids about the move as soon as possible! It is easy to assume that the less time kids have to think about moving, the easier it will be for your children.
- Inform your children as soon as possible, don’t put off telling them about the move, children need time to get used to the idea, and to deal with the stress and fear that moving creates.
- Let your kids know it is... ...read full post
Two important indicators point to a market in recovery:
1) listing inventory is continuing to decrease
2) pending activity is significantly stronger than last year.
The decrease in listing inventory from last year is due in part to increased sales activity coupled with the continued decrease in REO inventory. This drop in inventory has led to a six-month supply of homes, which traditionally signals a market in equilibrium.
Absent a resurgence of REO inventory, the increased demand from our upcoming season will shift the market to a seller's market. REO specialists and other industry experts still predict an increase in the number of REOs entering the market in the coming months, which would counter this trend.
The significantly stronger pending sales compared to last year indicate a strong buying season ahead. The 2010-2011 buying season was the first healthy activity this market had seen in years, and the upcoming 2011-2012 season appears positioned to surpass that performance.
The lower inventory and strong pending activity indicates prices should remain stable if not rise slightly in the short term. The main influence to counter that trend would be the addition of additional REO inventory to the market.
RE/MAX Alliance Group continues strong performance with both sales volume and transactions almost 25% ahead of last year. In September alone, RE/MAX Alliance Group saw an increase of 24% in transactions and an impressive increase of almost 50% in sales volume when compared to last September.....
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Associates Ranked Among “The Thousand” by WSJ and REAL Trends
Three RE/MAX Alliance Group associates have been named among America’s top real estate professionals by the Wall Street Journal and REAL Trends. They are now members of “The Thousand Top Real Estate Professionals,” a prestigious national ranking sponsored annually by the two respected publications.
The
Al Dumas Team from the RE/MAX Alliance Group Sarasota real estate office Street ranked 20th in the nation among the Top 250 Real Estate Teams by Transaction Sides, one of only two local teams to make the list. The team was also the only local real estate team to place in the Top 250 Teams by Transaction Volume, ranking 230th in the nation.
May Aston from the Bradenton Office and
Drew Peterson of Sarasota were the only local Realtors to be listed among the Top 250 Real Estate Professionals by Transactions Sides, coming in at #70 and #129, respectively.
Aston, Peterson and the Al Dumas Team now rank in the top one-half of 1 percent of the more than 1 million REALTORS® nationwide. The Thousand Top Real Estate Professionals list honors the top 250 residential agents and agent teams for excellence in four categories: individual sales...
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There are plenty of signposts which point to purchasing being a good idea. Home values have dropped considerably from their prior heights. Interest rates are at unbelievable historical lows that we most likely will never see again during our lifetimes. These low rates equate to a considerable savings every single month. Waiting for prices to drop further is more of a gamble compared to the knowledge that rates WILL absolutely for certain increase down the road, resulting in higher monthly payments for those who held off purchasing.
Inventory is continuing to decrease, partly due to strong demand but also due to fewer foreclosure listings being released into the market. This could be temporary once the banks settle pending “robo-signing” issues and more properties become marketable.
Some of the slowing activity is due to the traditional seasonal nature of our market. However the pending activity shows increased interest from buyers who recognize that conditions are strong for buying. If financing were to become more available to more borrowers (given historically low rates), we would see less fall-out from these pending sales and see more actual closings occur.
Activity in some of the higher end areas (Siesta Key, Longboat Key, Lakewood Ranch) has slowed somewhat due to the economic uncertainty generated by the debt ceiling debates and stock market volatility over the past several weeks....
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Results from the
J.D. Power and Associates 2011 Home Buyer/Seller Study recognize
RE/MAX for providing the highest overall consumer satisfaction for both home buyers and home sellers. In last year's study, two different companies ranked the highest in each category, but this year home buyers and sellers both rated RE/MAX the highest.
"We are proud to receive recognition from a reputable independent source and from our customers," said
Peter Crowley, president of RE/MAX Alliance Group. "The RE/MAX culture emphasizes agent training, professionalism and customer service. Our agents average more experience and training than other agents, they are better prepared to deal with home buyers and sellers in any kind of market."
This is the fourth annual study of home buyer and seller satisfaction with the largest national real estate companies, conducted by J.D. Power and Associates. For the home buying experience, three factors were considered: agent/salesperson, office, and a variety of additional services. Four factors were examined for the home-selling experience: agent/salesperson, marketing, office, and a variety of additional services.
Details from the study indicate that on a scale of 1,000, homebuyer respondents ranked RE/MAX with a score of 805 and home sellers put RE/MAX on top at 791....
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Looking to buy a new house? Do you have a specified budget in place? Are you going to need to take out a loan? In such a tumultuous real estate market, there are many frustrating financial hurdles that you need to jump before you can purchase your Lakewood Ranch home. However, with a
pre-approved loan you could reduce stress and move in quicker.
A pre-approved loan is when a bank provides you with an amount they would be willing to lend you for a Lakewood Ranch home and a period of time for which this offer is available. They determine this amount based on several criteria that you must provide and prove, such as your current income, bank statements, income tax returns and
credit history.
Perks from pre-approval
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Know what you can afford –Using a
mortgage calculator, you can see an estimate of the monthly mortgage payment to help you determine if it is within your budget. By obtaining a pre-approved loan, you’ll know exactly how much money you can spend on a house.
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Gain credibility – Real estate agents and sellers take you more seriously if they have proof that you can come up with...
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