Ship’s Journal A homeowner’s and investor’s guide to the future.

30% INCREASE. Mortgage rates have skyrocketed ( see below ) . While the rates are still historically low, the upward movement was thought to take a nick out of the housing market, especially the lower end. Some are walking a thin line on affordability. Some home shoppers may now need to lower their expectations and settle for a smaller entry to their dream of home ownership.  MORTGAGE RATES ( approx. national average ) : 30 yr – $4.375%; 15 yr.- 3.41%; 5 yr. adj.2.87%.

STATE of FLORIDA. Florida ‘ s population will soon replace the state of New York as the third most populous state in the union. The combination of people leaving New York and people moving to Florida ( from many areas ) has resulted in moving Florida up the population ladder. The trend is not only from people retiring to Florida, but job opportunities. Retirees are making the move south. While some are boosting our population, other southern states are also benefiting by the southern migration. Healthcare is a booming business in Florida and with it comes peripheral job opportunities. Also, many corporations are making a move to the Florida lifestyle. Recently, Hertz, the car rental firm, announced a move to Florida ( more below ) and others are following in various Florida markets.

Tourism has seen a jump this year, but while tourism is the number two driver ( real estate is #1 ) of Florida’ s economy there are many other venues that put Florida on top of the ” place to live” list. Just consider this: how many other states have 3 pro football teams, 2 pro baseball teams, 2 pro basketball teams, not only a “southern state” pro hockey team, but 2 of them? Florida has a lifestyle unlike any other.

SOUTHWEST FLORIDA. While Marco Island and Naples are considered one market, nationally, they are part of the bigger entity, Southwest Florida (Collier, Lee and Charlotte counties.) What happens in Lee County affects Collier County and the reverse is true. Recently Hertz Global announced that it was moving it ‘ s world headquarters to Estero in Lee County. The results will generate hundreds of local jobs and move hundreds of Hertz employees to the area. While Hertz needs to get Lee County zoning approval for the site to increase the zoning from 315,000 sq. ft. to over 650,000 sq. ft. the process is expected to be a “no brainer.” The only concern is that the new building will increase the traffic in the area surrounding the site. This site is part of the massive Coconut Point Mall complex. The results will not only add jobs for the construction of the $50.5 million headquarters, it will add jobs for the housing needed to accommodate the influx of new residents. Then there is the filter down effect the increase in personal income that ‘ s created. What about Naples? It appears that some of the early transfer of employees have decided that Naples will be their new home. What a let-down; they have to leave New Jersey life and relocate, and get accustom to, the Naples / Ft. Myers lifestyle.

EDITORIAL by Marv Needles, Broker/Owner of ERA Flagship Real Estate . Is the overall inventory of housing considerably lower? The answer: Yes and No. In some areas, inventory has diminished, but not significantly. However, depending on the price point or location, inventory is non-existent. If investing in Southwest Florida, waiting will cost a lot more considering increased values and the anticipated increase in interest rates. The time has come for some sellers to rejoice.

Excerpt from the NAPLES DAILY NEWS   AUGUST 5, 2013  by June Fletcher

“According statistics from the Naples Area Board of Realtors, in June, the median home price was 23.2 percent higher and the supply of homes was 23.1 percent lower than it was just six month ago. “Before people were looking,’ said Naples real estate agent Dave Tate. ‘Now they are buying.’ …Buyers are being joined by investors, employees being relocated by Hertz and other companies, and seasonal residents. One owner had her beach front property on Marco Island on the market, holding firm to her $345,000 price took her unit off the market in February when no acceptable offers came in When she put it back on the market in July, she near instantly had three acceptable offers to choose from. … Summer buyers are in a fix.  Sellers no longer need to do major improvements to entice a buyer. They must now choose from a resale property that may need some improvements or a new sale at much higher prices.

My Two Cents Worth:  The tide has turned.  If you are a seller, now it your time to get your home on the market. For buyers, waiting is only going to cost you more money in the long run. Rising prices ad rising interest rates are changing the landscape of  real estate in southwest Florida.  Call me today.  239-784-2637  www.JoanneSellsMarco.com

Foreclosures down 14% in June, lowest in 6.5 years

from Florida Realtor News

IRVINE, Calif. – July 11, 2013 – U.S. foreclosure activity decreased 14 percent in June to its lowest level since December 2006, despite a 34 percent jump in judicial foreclosure auctions from a year ago, according to RealtyTrac’s Midyear 2013 U.S. Foreclosure Market Report.

The report finds 801,359 properties with foreclosure filings – which includes all default notices, scheduled auctions and bank repossessions – in the first half of 2013. It’s a 19 percent decrease from the previous six months and down 23 percent from the first half of 2012. One in 164 U.S. housing units had at least one foreclosure filing in the first six months of the year.

June report

• 127,790 U.S. properties had foreclosure filings in June, down 14 percent from the previous month and 35 percent from a year ago. It’s the lowest monthly level since December 2006 – a six and a half year low.

• The number of new foreclosure starts in June dropped 21 percent from the previous month and 45 percent from a year earlier, hitting its lowest monthly level since December 2005 – a seven and a half year low.

• In Florida, new foreclosure starts dropped 26 percent. Other states with a significant drop in starts include Nevada (down 84 percent), Colorado (62 percent), New Jersey (40 percent) and Illinois (39 percent).

• June bank repossessions (REO) decreased 9 percent compared to May and 35 percent from one year earlier. Bank repossessions in June decreased from a year ago in 34 states.

• Judicial foreclosure auctions (NFS) were scheduled for 28,296 U.S. properties in June, up less than 1 percent from May but up 34 percent year-to-year. States with substantial annual increases in scheduled judicial foreclosure auctions included New Jersey (up 103 percent), Florida (up 100 percent), Maryland (94 percent), New York (66 percent), and Illinois (65 percent).

• Florida, Nevada, Illinois, Ohio and Georgia posted the top five state foreclosure rates for the first half of the year, while five Florida cities posted the top five metro foreclosure rates: Miami, Orlando, Jacksonville,Ocala, and Tampa.

Daren Blomquist, vice president at RealtyTrac, says that foreclosures are “no longer a problem nationally,” but they continue to be a problem in states like Florida where the long court process has delayed the progression. However, even states like Florida will soon see an improvement.

“The increases in judicial foreclosure auctions demonstrate that these delayed foreclosure cases are now being moved more quickly through to foreclosure completion,” says Blomquist. “Given the rising home prices in most of these markets, it is an opportune time for lenders to dispose of these distressed properties, either at the foreclosure auction to a third-party buyer, or by repossessing the property at the auction and subsequently selling it as a bank-owned home.

Half-year 2013 Florida report

Florida posted the nation’s highest state foreclosure rate in the first half of 2013: 1.74 percent of housing units with a foreclosure filing (one in every 58) during the six-month period – nearly three times the national average.

A total of 155,264 Florida properties had a foreclosure filing in the first six months of the year, the most of any state and up 12 percent from a year ago.

In June, Florida foreclosure starts (LIS) decreased 23 percent from a year ago but scheduled foreclosure auctions increased 100 percent and bank repossessions increased 14 percent during the same time period.

Other states with foreclosure rates among the 10 highest in the first six months of 2013 were Arizona (0.81 percent of housing units with a foreclosure filing), South Carolina (0.80 percent), Maryland (0.80 percent), Washington (0.78 percent) and Indiana (0.66 percent).

Half-year 2013 Florida cities report

Florida had all five of the top metro areas for foreclosure in the first half of 2013. Miami ranked No. 1 among metropolitan statistical areas with a population of 200,000 or more – 2.35 percent of housing units had a foreclosure filing (one in every 43) during the six-month period – nearly four times the national average.

Four other Florida cities joined Miami to round out the top five metro foreclosure rates in the first half of 2013: Orlando at No. 2 (1.94 percent of housing units with a foreclosure filing), followed by Jacksonville (1.91 percent), Ocala (1.85 percent) and Tampa (1.74 percent).

Florida cities accounted for a total of 12 of the top 20 metro foreclosure rates.

In Florida, the foreclosure process – from first notice to REO status – took an average of 907 days in the first half of 2013, or roughly two-and-a-half years.

In the U.S., a foreclosure averaged 526 days, though two states have a longer foreclosure process than Florida. In both New York and New Jersey, the average foreclosure takes 1,033 days.

© 2013 Florida Realtors®

FOR SALE BY OWNER (FSBO) STATISTICS

FSBOs accounted for 9% of home sales in 2012.

The typical FSBO home sold for $174,900

compared to $215,000 for agent-assisted sales.

            FSBO Methods Used to Market Home:

• •           Yard sign . . . . . . . . . . . . .. . . .  . . . . . . ……………………………………… . . . . . . . 48%
• •           Listing on Internet . . . . . . . . . . . . . . . . . . . …………………………………. . . . . . . 32%
  •              For-sale-by-owner websites . . . . . . . . . . ……………………………………… . . . . 20%
  •             Other websites with real estate listings (e.g. Yahoo, Google, etc.) . ……….. . 11%
  •             Social networking websites (e.g. Facebook, Twitter, etc.) . . ………………….. 10%
  •            Video hosting websites (e.g. YouTube, etc.) .  ……………………………………..   2%
•            Friends, relatives, or neighbors . . . . . . . ……………………………….. . . . . . . . .  30%
• Print newspaper advertisement . . . . . . . . …………. ……………………………………………………………… . . . .   14%
• Open house . . . . . . . . . . . . . . . . . . . . . . . …………………………………………………………………………. . . .  . . . .  12%
• Direct mail (flyers, postcards, etc.) . . . . . . . . . . . . . . …………………………………………………………………….  2%

Most Difficult Tasks for FSBO Sellers:

• Understanding and performing paperwork  . . . . . . . . .  ………………………………………………………………..18%
• Getting the right price . . . . . . . . . . . . . . . . . . .  . . . . . . ………………………………………………………………….. 14%
• Preparing/fixing up home for sale: . . . . . . . . . . . . . . . . ……………………………………………………………….. 11%
• Helping buyer obtain financing: . . . . . . . . . . .  . . . . . . . …………………………………………………………………  6%
• Attracting potential buyers . . . . . . . . . . . . . . .  . . . . . . . . ……………………………………………………………….. 6%
• Selling within the planned length of time: . . . . . …. . . . . . ……………………………………………………………… 6%
• Having enough time to devote to all aspects of the sale . ………………………………………………………………1%

Source: 2012 National Association of REALTORS® Profile of Home Buyers and Sellers

It’s obvious that if you want your home sold for the most money,  and the least amount of inconvenience, you need to have a Realtor.  The statistics speak or themselves. Give me a call with all your real estate needs.  239-784-2637   www.JoanneSellsMarco.com  Use my website to search ALL listings in the Collier County Florida area. Go to Buyers, then click MLS. And with my 24 years experience, I can help you locate a reputable Realtor anywhere in the world. I LOVE referrals.

Mortgage News  from  Peter Prodanov, Bank of England, Marco Island, FL         June 13, 2013

Euro zone industrial output expansion was slower than expected due to a drop in the production of energy and consumer goods which pushed Euro Zone stocks down ~.62% on Wednesday. U.S. equities suffered their first three-day losing steak of the year as traders balanced predicted economic growth with the possibility of a slowing in the pace of stimulus. On Wednesday the DOW shed 126.79 points to 14,995.23, the S&P lost 13.61 points to 1,612.52, while the Nasdaq also declined 36.52 points to 3,400.43.

On Wednesday, prices on U.S. Treasury securities slipped after the 10yr Note auction drew muted demand.  The benchmark 10yr treasury lost 13/32nds to yield 2.23%.

Mortgages had their least volatile day of the week on a light volume day.  For the majority of the day, mortgages traded between a “+” wider (underperform) to a “+” tighter (outperform) vs. swaps on moderate two-way activity between money managers and hedge funds.  FN 30yr 3.5s & 4s were the worst performers in the stack and FN 30yr 2.5s were the best performers, albeit on low volume.  FN 30yr 3s closed at ~99-24 (-17/32nds), while the 3.5s closed at ~102-27 (-17/32nds).

Global equities tumbled overnight with Japan leading the way, closing down ~6.5%.  Euro zone stocks are also lower amid continued speculation that central banks will scale back stimulus.  U.S. equity futures are also pointing lower this AM on similar news.  Today the U.S. Treasury will sell $13bl 30-Year Bonds.

Bank of England   Mortgage Lending Division   656 Bald Eagle Dr, Marco Island, FL 34145
Office: 239 970-0090          Fax: 239 970-0159
Rates for 6/13/13
*Fixed Rate Programs
Conforming 30 year fixed 4.000% Conforming Jumbo 30 year fixed 4.500%
Conforming 15 year fixed 3.250% Conforming Jumbo 15 year fixed 3.500% FHA/USDA 30 year fixed 3.625% Non-Conf. Jumbo 30 year fixed 4.125%
FHA 15 year fixed 3.250% Non-Conf. Jumbo 15 year fixed 3.750%
VA 30 year fixed 3.625% VA 15 year fixed 3.250%
____________________________________________________________________
Lending Products
Conventional Loans- Loan amounts up to $448,500
FHA- 96.5% LTV- Loan amounts up to $448,500
VA and USDA to 100%
Jumbo Loans- Loan amounts up to $3,000,000
Commercial loans of any size
REVERSE Mortgage for Purchase (no monthly payment!) Financing options available for:
Primary Residences
2nd Home/Vacation Homes
Condos (Primary, Vacation, and investment)
Investment properties to 4 units
Condotels and Unwarrantable Condos
*Rates as of 6/13/13 at 11 am.

All rates subject to change and based on Primary Residence Purchase
All rates based on a 30 day lock, full Income/asset documentation, escrows, and NO POINTS.
OAC, Not an offer to lend, Equal Housing Lender, Member FDIC.

“Prompt, Courteous, Professional Mortgage Lending”
Offering your clients competitive rates, low closing costs, great service, and quick turn times. To better serve you and your clients, I am available nights and weekends for pre-approvals so you can make that offer right away!   Peter Prodanov   Cell: 218 849-0760

30 day closings on purchases