MarketWatch Newsletter February 7, 2012
Exclusive "inside the market" news for you!
by Michael Ray, Licensed RE Broker
Market Bumping Along Bottom?
MARKET NOTES: While market head winds will continue, statistics show the local real estate market is improving. Please note, market trends like the current bottoming process usually take longer than expected or predicted. Never the less, supply is down as sales were up 23% last quarter. Distress properties are coming to market at a slower pace but will continue to pressure the market. Good buys are available for prepared buyers. Sale prices, in some cases, are equivalent to prices not seen since 2003. Current prices, combined with historically low interest rates, will provide buyers previously priced out of our market an unusual second chance. In general, inventory is almost in balance! Current listing inventory in PGA, Bay Hill and Mirasol is also approaching balance. Click here to watch an excellent, recently released video for a complete understanding of the market position right now!
INTEREST RATES: Cash sales have increased as mortgage rates remain historically low. The number of cash sales are up dramatically. In addition, FHA continues to play a bigger part in home financing with a low, low 3.5% down payment and a $423,750 loan limit - that's around $15,000 down for a home valued at close to $440,000. Conventional loans are near record lows. Qualification is strict but loans are available. The Federal Reserve will keep rates unusually low to aid the housing market.
INSURANCE: Do you need flood insurance? Water damage can destroy a home! If you have a mortgage and live in a flood zone it is required by your mortgage lender. If you live in a flood zone and have no mortgage you should have flood insurance. What if you don't live in a flood zone? You should have flood insurance. Flood insurance is about the cheapest form of insurance available. The maximum coverage is $250K on your dwelling and $100K on contents. The premium is $365 a year. In our market the obvious risk is flooding from hurricanes. The other little known risk is Lake Okeechobee. The Army Corp of Engineers has been working for years to shore up the earthen dam that holds back this massive amount of water. After engineering a substantial, long lasting fix they have shifted to a more economical, less substantial fix. Get flood insurance - it's a deal for great incremental coverage.
CALL MICHAEL at 561-385-5483 for any real estate related questions.
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If your property is listed with a real estate broker, this is not a solicitation to list your property.
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