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Real Estate Market Stabilized? Or not.

by Doug & Gwen Campbell at Sun Bay Associates

Some people are saying the real estate market has stabilized.  Maybe or maybe not.  Foreclosures are still going up.  In fact, according to RealtyTrac.com, foreclosure filings - default notices, scheduled auctions and bank repossessions - were reported on 937,840 properties in the third quarter, a 5 percent increase from the previous quarter and a 23% increase from the same quarter in 2008!

In September alone there were more than 340,000 foreclosure filings, an increase of 29 percent from September 2008.  James Saccacio, CEO of RealtyTrac, stated that "Bank repossessions, or REOs, jumped 21 percent from the second quarter to the third quarter, corresponding to jumps in defaults and scheduled auctions in the previous two quarters."

The bad news for Florida homeowners is that Florida is still in the top five states for foreclosures.  California, Florida, Arizona, Nevada, Illinois and Michigan accounted for 62% of the entire nation's foreclosure activity in the third quarter.  Florida posted more than 156,000 property foreclosure filings in the third quarter, a jump of 23% from the same quarter in 2008.

Maybe the real estate market is stabilizing in parts of the country, but not all states are created equal.  However, Floridians may consider themselves lucky, because in Detroit, the average home price is around $8,000.  That is not a typo, it is $8,000.  Sales are rebounding, and prices are still declining.  You decide if this is a stabilized reall estate market.

Distressed Property HELP!!

by Doug & Gwen Campbell at Sun Bay Associates

The current market is in such disarray and so may people are in trouble, we decided to post this on the Sun Bay blog.  In today's real estate market, about 1 in 10 people are in some stage of foreclosure, whether it is a late payment, or 2 or 3, or the bank has served papers on them as a precursor to actual foreclosure and auction of their homes.  Or they know someone who is.  According to the St. Petersburg Times, 51% of the homes in the Tampa Bay area have mortgages that are greater than the current value of the home, today, in 2009.  In September, lenders filed 4,586 new foreclosure lawsuits against Tampa Bay homeowners and the banks auctioned or repossessed another 2,100 homes.  This is a familiar story month after month in the Tampa Bay area and many other parts of the country as well.

Because of this, I have earned the credential of Certified Distressed Property Expert and have the knowledge and expertise to help many people who are having these issues.  If you know anyone who is behind on their mortgage, or anticipates being behind, have them go to my website, www.sunbaystopsforeclosure.com, that specializes in educating people about distressed property with up-to-date and accurate information.  There is no cost or obligation to them to check it out.  And if they do decide they need help, there will be no fees.  We will consult with them to help them find the best possible resolution for their distressed property, from a loan modification to short sale and several other avenues to help avoid going to foreclosure.

I want to help, and in many cases I can help. 

A Stabilizing Real Estate Market?!

by Doug & Gwen Campbell at Sun Bay Associates

The Florida real estate market is showing signs of stabilizing.  At least the downward trend is beginning to slow.  In Pinellas County, Florida the number of listings for single family homes decreased slightly and the absorption rate was above 10% for August.  In July, the abosrption rate was 11.8%.  This simply means that if the absorption rate is 10%, if there are 100 homes listed for sale, 10 sold.  The absorption rate is very slowly increasing so that the inventory of homes for sale is slowly decreasing, and in time, this will lead to prices bottoming out and beginning the long, slow climb out of the crevasse.

The median price for a single family home in August, 2009, in Pinellas County, Florida was $142,000, a drop of 19.3% from the previous August.  The sort of good news is that the August price drop was less than the 2009 July price drop, which was 22.2% from July of 2008.  Again, not good news, but this is showing signs of the market beginning to stabilize in the Pinellas County, Florida market.

Thus, with the absorption rate inching its way up, and the median price loss showing signs of slowing, things are beginning to look better.  More goodnews is that the inventory for single family homes for sale in August 2009 was 9.7 months.  This is another sign that the competition of homes for sale, while still extremely competitive, is beginning to start to swing back into the area that sellers can see light at the end of the tunnel.  Of course, that light may yet be 5 years away before prices climb back to what they were two or three years ago, but there is hope.   Is the real estate market stabilizing, well maybe not yet.  There is, though, light at the end of the tunnel.

Has the Economy Stabilized? Well, maybe . . .

by Doug & Gwen Campbell at Sun Bay Associates

Has the economy stabilized?  According to Federal Reserve Chairman, Ben Bernanke, in an article by John W. Schoen for MSNBC, ". . . from a technical perspective the recession is very likely over at this point, it's still going to feel like a very weak economy for some time as many people will still find that their job security and their employment status is not what they wish it was." 

ADP, as national payroll manager, reported that US companies eliminated more than 250,000 jobs in September, more than experts had forecast.  And the first time claims for unemployment insurance rose to a seasonally adjusted 551,000, up by about 17,000 from the week before.  This also caught experts by surprise.

Spending was up in September, although overall not quite as much as in August.  Does this coincide with the end of the Cash for Clunkers program?  Housing sales are also up, almost 6.5% in August.  The first time homebuyers tax credit may have fueled some of this growth and it is possible that when the program ends on November 30, we could see a drop in home sales, especially for the first time homebuyers.  Despite housing sales numbers rising, the prices continue their dreary decline, although not as rapid a descent as in the past year.

Even the chairman of Wal-Mart Stores, Inc. has said that the global economic recovery will be "lethargic".  He expects the recovery to be strongest in Asia.

Jeffrey Immelt, CEO of General Electric also put a bit of a damper on the outlook of a stabilized economy by suggesting that high unemployment and slower lending will be a drag on the US economic growth, with the result being perhaps the weakest recovery in decades.

Housing prices are still going down, unemployment is going up, spending is up but may have been spiked by government programs, housing units sold are up and auto sales have plummeted downward.

So you tell me, has the economy stabilized?  One can only hope.

Displaying blog entries 1-4 of 4

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Photo of Gwen and  Doug Campbell - Sun Bay Realty Group Real Estate
Gwen and Doug Campbell - Sun Bay Realty Group
at Keller Williams Realty
30522 US Hwy 19N, Suite 107
Palm Harbor FL 34684
Doug's Cell 727-741-4189
Gwen's Cell 727-741-7260
Fax: 888-447-7908