Hi Everyone!
It's Sunday night and I should be sleeping, but there is so much happening in the Real Estate world right now it's hard to go to sleep. As most of you have seen, Short Sales have now become very popular. Currently about 25% of all our listings are Short Sales.
First, let's spend a minute and explain exactly what is a Short Sale? Let's say you bought your home in 2005 for $300k. Three years later the market has crashed and the home you went out on the limb to buy is now worth $200k. To make matters worse, you may have bought your home with zero money down and an adjustable rate mortgage to boot. Your rate has gone up and that hope of your home going up in value $100k like your friends did only a couple of years ago is gone. You now qualify as so many do these days, to ask the bank to let you sell the home for the current market value of $200k. Once approved by the bank, you can now list your property to sell. So, a short sale is selling a home for less than what you owe on it. The seller has to prove to the bank they are a hardship case.
The benefit as a seller is they have the opportunity to get themselves out of their bad investment. It will still hurt their credit, but not quite as much as a foreclosure. In many cases the bank will not let you out of the home unless you sign a note saying you will pay the difference back to the bank. Most of the people put in this situation will choose to foreclose because they don't have the money to pay the bank. However, most banks are not asking for a note and they realize, in hind sight of course, that they should have been a little more conservative when deciding who they should or shouldn't give loans.
The benefit to the buyer, or at least the perceived benefit, is they will get a great deal on a property. Granted, there are some great deals to be had through Short Sales. However, most of the banks are not going to take much of a hit below current market values. Many times the bank will receive offers, then do an appraisal on the property to determine if they will accept any offers.
The Problem
It all sounds so simple doesn't it? Well it isn't! Short Sales have proven to cause a lot of heart break and distress. Let me tell you about a couple that we have dealt with recently.
The first couple put an offer of the home of their dreams. They fell in love with this home from the moment they walked through the front door. Their offer was full price based on the advertised listing price. They were very excited. The offer was submitted to the bank the following day. At this point we hadn't done many Short Sales and when we had, they were handled within a few days at most. So we waited for the banks answer....and waitied....and waited. Six months later we finally heard that the bank would not accept the offer. Yes, you read correctly, six months later. After some quick thinking from my Agent, she was able to convince the bank to take the offer. Our customers were full of emotions going from depressed to very excited again. Everything from there until closing went great. Our customers had their home inspection ($300), Termite Inspection ($75), appraisal ($300) and survey ($350). The got to closing and the seller found out she was going to have to sign a note for the difference in the short sale...around $57k. She refused and walked out of the closing room leaving our customers with their mouths hanging down and the tears flowing. They were devastated. To make things even a little worse, the next day the seller said she would sign. Our customers emotions were doing what you would expect by now. The got to closing and the seller again refused to sign. They were destroyed. Don't worry, there was a very happy ending to the story. We found them another house they loved even more and they closed in 10 days through our mortgage company. Everyone was happy in the end.
The second story won't be as long. It's basically the same as the first story in the beginning. They fell in love with the home and put an offer $3k above the asking price. We thought for sure they would get this home. After waiting for about three weeks, the bank came back and said they wanted $265k. This is $8,000 higher than our customers offer and $11,000 that the other Realtor had it listed in the MLS. Our customer was extremely upset and thought it was a bait and switch by the listing Realtor. The reality is the banks will not give us the dollar figure that they will take until we bring them an offer. Realtors can only do their best at guessing what the bank will take and list it around that price. It's really a mess.
The point I"m trying to make here is that Short Sales sound good on the outside but you have to be prepared to wait a very long time and possibly not get the home or pay more than you had offered. The banks are understaffed trying to handle an ever growing number of homes coming to them for Short Sales.
Now let's go back to the beginning of the conversation when we talked about the situation inwhich one can try to sell as a Short Sale. The reality is that the bank is not going to take less than market value in most cases. You are going to pay the same price for this home as you might with a regular resale with no issues.
My Advice
So what happens if you fall for a Short Sale home? Keep looking is what I've told most of our customers. You can put an offer on the Short Sale home, but you should keep looking for your perfect home while waiting for the answer from the bank. Chances are, with the amount of homes on the market, you will find another home with not so much baggage as the Short Sale home. In the end you will pay approximately the same amount of money for either home.
I know that everyone wants to get the best deal they can get. That is human nature and the American way! However, there are better ways to get good deals then doing a Short Sale. For instance, there are so many builders who have homes for sales less expensively than most resale homes. Also, look at homes where the owner has bought their home before 2002. Chances are they didn't pay much for their home and even wtih the market crash, they still have plenty of equity. The more equity they have, the better chance you have of buying the home at a better price. Of course if they don't have to move, they won't be going down to much either. But if the do have to sell, they have the flexibility to lower than price.
Hopefully that will clear up any thoughts and or questions that you may have had on Short Sales. I know it can get quite confusing out there. Believe me, when this first started happening we were all confused and we sell houses for a living. Now that we have done so many of them, we can help you though with ease. However that doesn't make the bank go any faster. We can just prepare you better for the possible heartache you might feel. So take my advice...Make your Short Sale offer if you want, but keep looking for your ferfect home. I know we have one available for you right now.
As always, feel free to call the office at 321-259-9115 or email me to answer any questions you might still have on Short Sales or anything else that I can do for you.
Have a great night!
Mitch
Showing posts with label Real Estate Market. Show all posts
Showing posts with label Real Estate Market. Show all posts
Sunday, February 10, 2008
Monday, December 17, 2007
What's the deal with Foreclosures? What is the alternative?
Hi Everyone!
We are getting tons of calls these days with customers wanting to take advantage of the "lucrative" foreclosure market. I figured it was time for me to throw in my two cents to all of you. In this market, foreclosures are not the best deal. Yes, you heard me right. Foreclosures are not what they used to be and there is a logical reason for this comment.
Firstly, five years ago foreclosures were running at about 50% of the value of property. They were great deals. The reason was simple. When a person went into foreclosure, they usually had put 10% or more down on the property. Also, as the years have gone by, prices in our area increased. With more equity in the property and prices skyrocketing, foreclosures made a lot of sense. Let's look at an example:
A person buys a property for $100,000. He puts 10% down for a mortgage of $90,000. Over the next three years the property value went up to $130,000. Once this person goes towared a foreclosure, he has $40k equity in the property. The bank is also willing to take less of a payoff to avoid going through the legally taxing foreclosure property. Ultimately the buyer can buy this home from approxinmatley $75,000 or so and with a built in equity of $55,000.
Ok, now let's fast forward to the fall of 2007 (no pun intended). A person buys his property two years ago for $300,000. As with most people during that time period, he financed 100% of the propery and now has a mortgage of $300,000. Now in 2007 he needs to sell his home or go into foreclosure. The problem we run into now is that property values have dropped around 30% since 2005 when he bought the home. Therefore, his home is now valued at $210,000. This means, if the bank goes into foreclosure, they are going to sell the property at market value to recoup as much as they can to minimize their losses. The buyer of this property is buying the property at market value and is not going to see much, if any, equity upon the purchase.
With all that said, you can see that foreclosures today are not going to offer you the best bang for your buck. So what is going to get you the best deal. If you are looking to get your best deal, look for homes that have been on the market for more than 6 months and have been owned by the owner for more than 5 years. This will most likely insure two things unless the seller had refinanced in the past two years and taken equity out of the home. First, the owner might have only paid $125,000 for that same house that sold for $300,000 in 2005. If he needs to sell the home, he can lower the price of the way below market value and still make a decent profit from the home. If the market value is $210,000 as we figured in the above example, then selling the home for $199,000 would still offer the seller a tremendous profit while offering the buyer a great deal below market.
Hopefully this all make sense to you. If you have any questions please don't hesitate to call or write. We are always here to help you accomplish your Real Estate goals!
Have a great day!
Mitch
We are getting tons of calls these days with customers wanting to take advantage of the "lucrative" foreclosure market. I figured it was time for me to throw in my two cents to all of you. In this market, foreclosures are not the best deal. Yes, you heard me right. Foreclosures are not what they used to be and there is a logical reason for this comment.
Firstly, five years ago foreclosures were running at about 50% of the value of property. They were great deals. The reason was simple. When a person went into foreclosure, they usually had put 10% or more down on the property. Also, as the years have gone by, prices in our area increased. With more equity in the property and prices skyrocketing, foreclosures made a lot of sense. Let's look at an example:
A person buys a property for $100,000. He puts 10% down for a mortgage of $90,000. Over the next three years the property value went up to $130,000. Once this person goes towared a foreclosure, he has $40k equity in the property. The bank is also willing to take less of a payoff to avoid going through the legally taxing foreclosure property. Ultimately the buyer can buy this home from approxinmatley $75,000 or so and with a built in equity of $55,000.
Ok, now let's fast forward to the fall of 2007 (no pun intended). A person buys his property two years ago for $300,000. As with most people during that time period, he financed 100% of the propery and now has a mortgage of $300,000. Now in 2007 he needs to sell his home or go into foreclosure. The problem we run into now is that property values have dropped around 30% since 2005 when he bought the home. Therefore, his home is now valued at $210,000. This means, if the bank goes into foreclosure, they are going to sell the property at market value to recoup as much as they can to minimize their losses. The buyer of this property is buying the property at market value and is not going to see much, if any, equity upon the purchase.
With all that said, you can see that foreclosures today are not going to offer you the best bang for your buck. So what is going to get you the best deal. If you are looking to get your best deal, look for homes that have been on the market for more than 6 months and have been owned by the owner for more than 5 years. This will most likely insure two things unless the seller had refinanced in the past two years and taken equity out of the home. First, the owner might have only paid $125,000 for that same house that sold for $300,000 in 2005. If he needs to sell the home, he can lower the price of the way below market value and still make a decent profit from the home. If the market value is $210,000 as we figured in the above example, then selling the home for $199,000 would still offer the seller a tremendous profit while offering the buyer a great deal below market.
Hopefully this all make sense to you. If you have any questions please don't hesitate to call or write. We are always here to help you accomplish your Real Estate goals!
Have a great day!
Mitch
Sunday, November 11, 2007
I need your help!
Hi Everyone!
If you have been reading what I've been writing lately you have noticed that I am in the middle of making a bunch of changes to our company. For that reason I am looking for help from you, our customer.
1. We are getting ready to launch a new site - http://www.melbournehomesearch.com/ - Please check it out when you get a chance and send me your feedback. The MLS search function is working but we are still working on the saved listings portion to allow you to continue to save homes into your personal folder. Please email feedback at mitch@mitchrealty.com whether it be good, bad or indifferent. My goal is to create a site that is easy to use and has all the information you need. With your help, I can accomplish this goal!
2. Consumer Forum - I would like to get two different groups of customer together. The first group would be our customers who have already bought homes through Tropical Realty. The second group would be from customers who have not bought anything yet.
The purpose of these to forum's is to learn from you what we need to do to be a better company. I work very hard, as do all my Agents, to insure that our customers are getting the service that they desire. I will be taking you to dinner and discussing what we need to do on our end to make everything the best experience for you.
This past year has been a great year for us here at Tropical Realty. While most companies are struggling, we have been hitting our goals almost every month. Of course I only have you to thank for that. I appreciate your busines and your trust that you have in our company. I think I have the best Agents in the county ( I may be a little bias) if not the state. Every person on my staff from the admin (Pat and Krystal) to my Agents, to the Mortgage Dept of Pedro (my partner), Carolyn, Jeff and Greta cares about our customers as much as I do. I have always instilled in my staff that if you work hard and create the best customer service experience for your customer, you will always succeed. I can honestly say I know that they value our customer more than the buck! We all go out of our way to be the best we can be for you.
With that said, I know we have to improve in certain areas and I would like help finding out exactly what we need to improve. Please take a few minutes and write me a review of our new website at http://www.melbournehomesearch.com/ and let me know your thoughts. They do matter. Also, if you would like to be involved in my customer forum, please email me at mitch@mitchrealty.com and let me know. I will be taking everyone out to dinner to discuss how I can make Tropical Realty a better company and a great experience for our customers.
I look forward to hearing from you. Have a great night!
Mitch
If you have been reading what I've been writing lately you have noticed that I am in the middle of making a bunch of changes to our company. For that reason I am looking for help from you, our customer.
1. We are getting ready to launch a new site - http://www.melbournehomesearch.com/ - Please check it out when you get a chance and send me your feedback. The MLS search function is working but we are still working on the saved listings portion to allow you to continue to save homes into your personal folder. Please email feedback at mitch@mitchrealty.com whether it be good, bad or indifferent. My goal is to create a site that is easy to use and has all the information you need. With your help, I can accomplish this goal!
2. Consumer Forum - I would like to get two different groups of customer together. The first group would be our customers who have already bought homes through Tropical Realty. The second group would be from customers who have not bought anything yet.
The purpose of these to forum's is to learn from you what we need to do to be a better company. I work very hard, as do all my Agents, to insure that our customers are getting the service that they desire. I will be taking you to dinner and discussing what we need to do on our end to make everything the best experience for you.
This past year has been a great year for us here at Tropical Realty. While most companies are struggling, we have been hitting our goals almost every month. Of course I only have you to thank for that. I appreciate your busines and your trust that you have in our company. I think I have the best Agents in the county ( I may be a little bias) if not the state. Every person on my staff from the admin (Pat and Krystal) to my Agents, to the Mortgage Dept of Pedro (my partner), Carolyn, Jeff and Greta cares about our customers as much as I do. I have always instilled in my staff that if you work hard and create the best customer service experience for your customer, you will always succeed. I can honestly say I know that they value our customer more than the buck! We all go out of our way to be the best we can be for you.
With that said, I know we have to improve in certain areas and I would like help finding out exactly what we need to improve. Please take a few minutes and write me a review of our new website at http://www.melbournehomesearch.com/ and let me know your thoughts. They do matter. Also, if you would like to be involved in my customer forum, please email me at mitch@mitchrealty.com and let me know. I will be taking everyone out to dinner to discuss how I can make Tropical Realty a better company and a great experience for our customers.
I look forward to hearing from you. Have a great night!
Mitch
Tuesday, September 18, 2007
A note to buyers - Single Agency vs. Transaction Brokers
Hi Everyone!
I know that everyone wants to get the best deal possible for their homes. Keep in mimd that if you have a lot of homes on the market, such as today, you may have a great opportunity for success in finding a home you love and at a price you can afford.
By using one of our Tropical Realty Realtors, you can have the security that every one us is going to put our best foot forward and devote 150% and More. Whatever it takes to get the job done!
In a recent move, we have switched our company from Transacdtion Brokers to Single Agency. Why the change when in fact almost all the companie are automatically considered to be Transacdtion Brokers?
First you have to understand the main difference between the two agencies. Both are similar with one major exception. Transaction Brokers represent the transaction. They don't represent the buyer or the seller. As Single Agents, we work for you. We have a legal responsibiity to look out for your best interests. With that said, there are certain instances inwhich we must transition to a Transaction Broker.
This is a major switch towards our new culture of over the top customer service. We hope that all our customr have started to notice the switch. There is much more to come! If you have any questions on Agency and how it works in Florida, its time to pick up the phone and call our office or email me at Mitch@MitchRealty.com or 321-259-9115.
Have a great night!
Mitch
I know that everyone wants to get the best deal possible for their homes. Keep in mimd that if you have a lot of homes on the market, such as today, you may have a great opportunity for success in finding a home you love and at a price you can afford.
By using one of our Tropical Realty Realtors, you can have the security that every one us is going to put our best foot forward and devote 150% and More. Whatever it takes to get the job done!
In a recent move, we have switched our company from Transacdtion Brokers to Single Agency. Why the change when in fact almost all the companie are automatically considered to be Transacdtion Brokers?
First you have to understand the main difference between the two agencies. Both are similar with one major exception. Transaction Brokers represent the transaction. They don't represent the buyer or the seller. As Single Agents, we work for you. We have a legal responsibiity to look out for your best interests. With that said, there are certain instances inwhich we must transition to a Transaction Broker.
This is a major switch towards our new culture of over the top customer service. We hope that all our customr have started to notice the switch. There is much more to come! If you have any questions on Agency and how it works in Florida, its time to pick up the phone and call our office or email me at Mitch@MitchRealty.com or 321-259-9115.
Have a great night!
Mitch
Sunday, August 26, 2007
Our Customer Service Culture
Have you ever wondered what makes a company great? This is something that I have thought about for a long time. In the end, it still comes down to the old age issue of customer service. The reality is that most of us feel that customer service seems to be a thing of the past. I know that is something I have thought and seen for so long. It's not the norm to get great service. How many times have you gone to a great establishment with great customer service? You can probably count them on one hand.
With that said, I have made the decision to become the best customer service focused Real Estate company in the country. Ok, I know that is a big claim, but I am certain that it will take our already superb service and make it even better. So how do we do that? We currently work extremely hard for our customers and are available at all times to help them in any way possible. All of our Agents at Tropical Realty work hard. If you have worked with us already, you know that. If you haven't and are planning to come to the area soon, you will see what I mean. I am truly blessed to have some of the best people working for me. However, because we are so busy helping our customers, sometimes the little things get left behind. My goal over the next few months is to figure out what you would like, as the customer, for us to do when we meet you, when we write a contract for you, and what we can do after the sale for you.
For as good a job as we currently do, I want to make you walk away from your transaction with the same feeling you get when walking away from a great restaurant. It is my belief that if you walk away with that feeling, you will have received the best service humanly possible. That is my goal and that is what we are going to accomplish.
In the very near future I will be posting some of the changes we are going to implement to insure you have the best real estate experience you have ever received. When you sit in your new home you are going to feel that joy that comes with a great transaction. You will feel complete! Ok, I stole that from Jerry Mcquire!
I'm also open to suggestions from you. If there is anything that you feel a Real Estate Company should do for you that we are not currently doing, please email me at mitch@mitchrealty.com. I am here to listen. I am here to give you the best there is in the country.
As always we are all here to help. If there is anything you need at all, don't hesitate to call or email us. We respond to everyone as quickly as possible.
Have a great night!
Mitch
With that said, I have made the decision to become the best customer service focused Real Estate company in the country. Ok, I know that is a big claim, but I am certain that it will take our already superb service and make it even better. So how do we do that? We currently work extremely hard for our customers and are available at all times to help them in any way possible. All of our Agents at Tropical Realty work hard. If you have worked with us already, you know that. If you haven't and are planning to come to the area soon, you will see what I mean. I am truly blessed to have some of the best people working for me. However, because we are so busy helping our customers, sometimes the little things get left behind. My goal over the next few months is to figure out what you would like, as the customer, for us to do when we meet you, when we write a contract for you, and what we can do after the sale for you.
For as good a job as we currently do, I want to make you walk away from your transaction with the same feeling you get when walking away from a great restaurant. It is my belief that if you walk away with that feeling, you will have received the best service humanly possible. That is my goal and that is what we are going to accomplish.
In the very near future I will be posting some of the changes we are going to implement to insure you have the best real estate experience you have ever received. When you sit in your new home you are going to feel that joy that comes with a great transaction. You will feel complete! Ok, I stole that from Jerry Mcquire!
I'm also open to suggestions from you. If there is anything that you feel a Real Estate Company should do for you that we are not currently doing, please email me at mitch@mitchrealty.com. I am here to listen. I am here to give you the best there is in the country.
As always we are all here to help. If there is anything you need at all, don't hesitate to call or email us. We respond to everyone as quickly as possible.
Have a great night!
Mitch
Monday, August 13, 2007
What's the story with Foreclosures
Happy Monday Everyone!
Well as you all have heard the news...the banks are hurting and foreclosures are on the rise. We get tons of emails and phone calls from so many people wanting us to find them foreclosures. I figured it's a good time to set the record straight for those of you who don't understand how these homes are priced.
Flashback 5 or 6 years ago and foreclosures were a great deal. I sold many of them back then that were 50 cents or less on the dollar. Unfortunately this isn't the case anymore. Foreclosures are no longer the bargain they used to be.
For instance, if a home goes into foreclosure, the bank will hire a Realtor to evaluate the property. Our job as Realtors is to let them know the retail value of the property and the appoximate cost of repairs. At that point the lender sets the price. These days, unlike the past, the banks are taking the retail value and subtracting the approximate repair costs and that is the price. Keep in mind that most foreclosures have a loan amount higher than the value of the home and they were usually bought with zero money down. There just isn't any room for the banks to play.
So what does this all mean to you, the consumer looking to get a good deal on a foreclosure, there aren't many good foreclosures out there. Most companies that do this as a business have pulled back. They understand the current market. However, most average consumers or beginning investors don't.
Your best bet is to talk to your Realtor, hopefully here at Tropical Realty, and search for homes that have been on the market longer than 6 months. Then your Realtor can research what they paid for the home and if they have refinanced the home. I believe that is where you can get your best deal. If someone owes $100k on the home and it's listed at $200k and they need to sell, you have a lot more room to work than if someone owes $180k on the house.
I hope that helps a few of you understand the current foreclosure market. I know all those TV shows selling you kits are telling you that foreclosures are the way to go. However, keep in mind that this is one of the best buying opportunities we have seen in several years. If you are thinking about buying, this is the time!
As always if you have any questions or need any help with anything, don't hesitate to call or email me at mitch@mitchrealty.com.
Have a great day!
Well as you all have heard the news...the banks are hurting and foreclosures are on the rise. We get tons of emails and phone calls from so many people wanting us to find them foreclosures. I figured it's a good time to set the record straight for those of you who don't understand how these homes are priced.
Flashback 5 or 6 years ago and foreclosures were a great deal. I sold many of them back then that were 50 cents or less on the dollar. Unfortunately this isn't the case anymore. Foreclosures are no longer the bargain they used to be.
For instance, if a home goes into foreclosure, the bank will hire a Realtor to evaluate the property. Our job as Realtors is to let them know the retail value of the property and the appoximate cost of repairs. At that point the lender sets the price. These days, unlike the past, the banks are taking the retail value and subtracting the approximate repair costs and that is the price. Keep in mind that most foreclosures have a loan amount higher than the value of the home and they were usually bought with zero money down. There just isn't any room for the banks to play.
So what does this all mean to you, the consumer looking to get a good deal on a foreclosure, there aren't many good foreclosures out there. Most companies that do this as a business have pulled back. They understand the current market. However, most average consumers or beginning investors don't.
Your best bet is to talk to your Realtor, hopefully here at Tropical Realty, and search for homes that have been on the market longer than 6 months. Then your Realtor can research what they paid for the home and if they have refinanced the home. I believe that is where you can get your best deal. If someone owes $100k on the home and it's listed at $200k and they need to sell, you have a lot more room to work than if someone owes $180k on the house.
I hope that helps a few of you understand the current foreclosure market. I know all those TV shows selling you kits are telling you that foreclosures are the way to go. However, keep in mind that this is one of the best buying opportunities we have seen in several years. If you are thinking about buying, this is the time!
As always if you have any questions or need any help with anything, don't hesitate to call or email me at mitch@mitchrealty.com.
Have a great day!
Monday, July 2, 2007
2nd Quarter Stats!
Hi Everyone!
Well it's that time of the year again where I let you know the current stats going on in our Real Estate market in Brevard County. The market seems to be holding steady. It's not getting any worse and it's not getting much better. At the moment the interest rates are right around 6.875% which are a little down from over 7% last week.
Stats for the 2nd quarter of 2007 (April 1 - June 30) are as follows:
Single Family Homes
Currently on the Market - 7,727
Units Sold - 1,402
Condos and Townhomes
Currently on the Market - 3,183
Units Sold - 368
Lots and Land
Currently on the Market - 4,333
Lots Sold - 168
Average Single Family time on Market - 101 Days
Average Sales Price to Listing Price - 93%
The best deals to be had our in the condo market. As you can see by the stats they just are not selling. Two years ago it was unheard of to find an Oceanfront unit anywhere in the county for under $300k. Now there are close to 50 units in that price range. Of course some of them are small. My favorite is one of our listings at Ocean Club in Melbourne Beach. This is almost 1,300 sq. ft. with two master suites, both with great Ocean views. This condo is currently listed for $299,900. My guess is this will sell fairly quickly because of the bargain price. We also have another condo that just dropped its price to $199,900. This is a riverfront condo on the 7th floor and over 1,500 sq. ft. This 2 bedroom 2 bath condo is located in the center of Merritt Island across the street from the mall. Great location and great price. This unit 2 years ago would have sold for as high as $300k. Such a deal! If you would like more details about either of these properties don't hesitate to call or email us. Our phone number is (321) 259-9115.
With that said, single family homes are down in price over 20% from 2004 with lots of great deals out there. This is the best buyers market we have had in a long time. With over 10,000 single family dwellings on the market, there are a lot of motivated sellers out there. This is great news if you are a buyer.
I have heard from some buyers who are wanting to wait until the market is at the bottom. As you may or may not know, there is no way to tell that we are at the bottom. I can tell you this, housing prices appear to be holding pretty steady right now. Those who told me they wanted to wait are now faced with houses that were the same price a few months ago and the interest rates are up over 1%. So in the long run, they have already missed the lowest price based on both sales price and interest.
One last thing. If you haven't seen it yet, we are holding our first annual customer appreciation night at Space Coast Stadium in Viera this Saturday Night. We will be enjoying a baseball game with the Manatees and fireworks after the game. If you haven't reserved your ticket and would like to go, please contact us immediately so we can get you on the list. The game starts at 6pm.
As always, if there is anything I can do for you, don't hesitate to ask. We are always here for you.
Have a great week and a Happy 4th of July!
Mitch
Well it's that time of the year again where I let you know the current stats going on in our Real Estate market in Brevard County. The market seems to be holding steady. It's not getting any worse and it's not getting much better. At the moment the interest rates are right around 6.875% which are a little down from over 7% last week.
Stats for the 2nd quarter of 2007 (April 1 - June 30) are as follows:
Single Family Homes
Currently on the Market - 7,727
Units Sold - 1,402
Condos and Townhomes
Currently on the Market - 3,183
Units Sold - 368
Lots and Land
Currently on the Market - 4,333
Lots Sold - 168
Average Single Family time on Market - 101 Days
Average Sales Price to Listing Price - 93%
The best deals to be had our in the condo market. As you can see by the stats they just are not selling. Two years ago it was unheard of to find an Oceanfront unit anywhere in the county for under $300k. Now there are close to 50 units in that price range. Of course some of them are small. My favorite is one of our listings at Ocean Club in Melbourne Beach. This is almost 1,300 sq. ft. with two master suites, both with great Ocean views. This condo is currently listed for $299,900. My guess is this will sell fairly quickly because of the bargain price. We also have another condo that just dropped its price to $199,900. This is a riverfront condo on the 7th floor and over 1,500 sq. ft. This 2 bedroom 2 bath condo is located in the center of Merritt Island across the street from the mall. Great location and great price. This unit 2 years ago would have sold for as high as $300k. Such a deal! If you would like more details about either of these properties don't hesitate to call or email us. Our phone number is (321) 259-9115.
With that said, single family homes are down in price over 20% from 2004 with lots of great deals out there. This is the best buyers market we have had in a long time. With over 10,000 single family dwellings on the market, there are a lot of motivated sellers out there. This is great news if you are a buyer.
I have heard from some buyers who are wanting to wait until the market is at the bottom. As you may or may not know, there is no way to tell that we are at the bottom. I can tell you this, housing prices appear to be holding pretty steady right now. Those who told me they wanted to wait are now faced with houses that were the same price a few months ago and the interest rates are up over 1%. So in the long run, they have already missed the lowest price based on both sales price and interest.
One last thing. If you haven't seen it yet, we are holding our first annual customer appreciation night at Space Coast Stadium in Viera this Saturday Night. We will be enjoying a baseball game with the Manatees and fireworks after the game. If you haven't reserved your ticket and would like to go, please contact us immediately so we can get you on the list. The game starts at 6pm.
As always, if there is anything I can do for you, don't hesitate to ask. We are always here for you.
Have a great week and a Happy 4th of July!
Mitch
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