MarketWatch Newsletter September 2009 Edition Exclusive "inside the market" news for you! by Michael Ray, Licensed RE Broker MARKET NOTES: The market has made significant headway since the first of the year. The start of 2009 looked pretty grim. Now, there may be light at the end of the tunnel. A key metric, known as Months Supply of Inventory (MSI) is down huge since the first of the year - the August number for our area is 7.5, i.e. the current inventory of homes would take 7.5 months to sell at the current rate of sales. That's a drop of 67% from the 23 month reading at the end of December 2008. We know over supply means downside pricing pressure. We also know if the pace of home sales continues to increase, lower inventory will lead to prices stabilizing. However, there is a wild card on price stabilization - the impact of foreclosure sale prices on re-sales. Foreclosure and other distress property sales used as comparables will continue to affect appraisals and therefore will have some impact on re-sale prices. As long as a neighborhood is not inundated with distress sales, impact should be minimal. In addition, the lack of builder activity has also contributed to the reduction of resale inventory. A low inventory of new homes forces buyers to consider re-sales. INTEREST RATES: Mortgage rates are hovering near 5% for conforming loans. Keep in mind, the decline in property values has allowed more loans to come within the FNMA guideline for conforming loan limits of $417,000. In addition, FHA financing is available with 3.5% down and a $423,750 limit, also allowing more properties to qualify for financing. Interest rates are still doing their part to help with the housing recovery. TAXES & INSURANCE: Tax bills continue to show reductions due to market value decline. Insurance consumers in Florida should continue to be vigilant. Review your coverage a couple times a year and make sure all your discounts are accounted for. While the number of companies entering the Florida market continues to increase, the biggest current event is the pending threat of State Farm to discontinue coverage in Florida next year. Mirasol Developer is Making Deals1 floor, 3 bedroom, den, 3.5 baths, golf or sport membership, golf view 2 floor, 4 bedroom, den, 4.5 baths, golf or sport membership, preserve view *** Please feel free to forward my newsletter to any of your friends. *** www.TeeTimeHomes.com If your property is listed with a real estate broker, this is not a solicitation to list your property. |