Real Estate in Northeast Florida and Around the World

The new home sales for July was just announced as having exceeded analysts' expectations.  Have you noticed this trend of surprises? From Wall Street company earnings' reports to industry reports, the results are beating the so-called experts expectations.  Why is this?

While the answer to that may lie in the same neighborhood of the crystal ball that we would all like to possess, there are a few reasons why the good news of late seems to be catching our experts on Wall Street, but not on Main Street, off guard. 

Perhaps those "experts" are out of touch with Main Street.  Wouldn't be the first time.  As a Realtor, I regularly talk with my friends and neighbors about their business - has activity increased in the last few days, weeks, months?  Where do you see your business coming from?  Who is doing the shopping and what do they want?  The answer I get more often than not is that since mid-second quarter, the level of business has consistently been improving.  From my restauranteer customers to the site agents in new neighborhoods, to the local dry cleaner to my pedicurist - they are all seeing signs of the increase in customer spending.  Is is significant?  No - but it is steady. Is it a surprise to me?  No, because I talk to the people who are first hand impacted.  And my business?  People are feeling better about the economy, and are loosening the wallets.  How's my real estate business?  Steady, although much of my business is driven by first-time home buyers wanting to take advantage of the tax credit. 

Where does that tax credit money go?  Many "experts" said it would not go to stimulate the economy, but would sit in savings accounts or used to pay off old debt.  My customers do plan on banking some of the money - but for expenses they forsee down the road within the next 12 - 18 months - a new roof, new carpeting, kitchen update - all things that stimulate the economy.  But most of them have plans to use the money to buy things that homeowners buy - lawn mowers, vacuum cleaners, washers and dryers and so forth.  Furniture that they didn't need before because there was no space and now there is.  Fencing for the backyard. Towels and rugs for the extra bedroom. You get the picture.  It may not be a lot of money per purchase, but the more new homeowners that are out there buying, the economy begins to feel it in a positive way.

All of the new home sales will also provide stimulus - even with no tax credit because of the jobs that were needed in building the homes.  The materials needed, from the framing materials to the tile to the window blinds and appliances.  Landscaping companies benefit, as do the electricians and plumbers. 

It is a full circle of life for the economy that the housing market stimulates.  Our legislators need to get on the stick and extend the tax credit for first time homebuyers, and yes, perhaps to a smaller extent, for move up buyers.  Housing plays a significant part in healing our economy, and you don't need a clunker to participate.

See ya around the neighborhood!

Did you hear?  Existing-home sales in the second quarter showed healthy gains from the first quarter in the vast majority of states, and price declines have increased affordability in most metro areas, according to the latest survey by the National Association of Realtors®.

Total state existing-home sales, including single-family and condo, rose 3.8 percent to a seasonally adjusted annual rate¹ of 4.76 million units in the second quarter from 4.58 million units in the first quarter, but remain 2.9 percent below the 4.90 million-unit pace in the second quarter of 2008.

Since mid-June, inquiries regarding home purchases and buyers who have gone from "I think I want to buy a house" to "I want to buy a house now" have increased in my daily business.  I have been working with almost a dozen active buyers, having successfully helped almost of half of them present offers on their dream homes at outstanding prices.  The others are still looking and are narrowing their choices.  I still get daily inquiries - the interest is still there.

My sellers are seeing very choosy buyers.  Even when a house is deemed to be in perfect showing condition and right-priced, buyers are finding ways to compare multiple properties as the inventory levels remain above normal.  However, a couple of my buyers also found themselves in multiple offer or "bidding" wars for nicely appointed, well-priced properties. Everyone is going for the nicely appointed, well-maintained home that is competitively priced. Especially in the $125,000 - $350,000 range here in the metropolitan Jacksonville market.  Why?  First-time home buyers.  By the time they spend every dime on their home purchase, they will not have the means to do repairs.  And if they do, they want to buy new furniture, towels, a lawn mower, etc., not do the deferred maintenance that a seller should have done.

The properties that are overpriced, or have signs of deferred maintenance get bypassed quickly.  So - if you are in the market to sell your home, be sure to talk with a Realtor and ask for the cold hard truth about showing condition and pricing.  Additionally and of great importance is how your home will be marketed.  Will a sign be put in the yard and in MLS?  What about multiple photos, virtual tours, videos and brochures - not to mention personal websites and e-mail marketing.  You can have a great house priced right, but if it is not marketed to its fullest extent, who will know? Close to 90% of all home buyers begin their search online - and if there are no pictures, or only 1 picture and no detailed photos of the inside, you can bet they will pass that house by. 

So, I'll be out and about in the neighborhoods, seeing what the inventory holds and updating my customer on what's going on.  Maybe I'll see you while I'm out in the neighborhood - if so, throw me a wave or stop me to chat.  See ya around!

This weekend, we left July in the dust and entered August at a fevered pace.  I can't believe it, it is already August 4.  We all know what this means - MARCHING SEASON will soon be here (only band parents or former band parents or band directors will get this)!

Obviously, I jest.  There are many things that start happening in August - back to school preparations for kindergarteners through college-age kids, high school extracurricular activities begin their practices and yes, professional football begins getting into gear.  Do you know what else happens?

Buyers get busy.  They also realize that the new school year approaches, and then the holiday season is in full swing.  And this year, it is even more important to get moving into a new house for first time home buyers - the federal tax credit for first time home buyers is only available for purchases closing by November 30, 2009.  Considering that new changes to RESPA (Real Estate Settlement Procedures Act) require that a loan cannot close sooner than 30 days from the application date, and that most buyers will look for a house at least 30 days before presenting an offer, time is running out. 

So, what are the items on your short list for the rest of the year?  If buying or selling a home is on top of that list, call me today at 904-716-1713 to get started!

See you around the neighborhood!