Palm Beach County home sellers slash asking prices in Oct.

About 18 percent of Palm Beach County homeowners trying to sell their homes cut their asking prices in October, up from just 12 percent in May, according to a new report.

Redfin, a Seattle-based real estate firm that opened a Palm Beach County office in May, also found that 25 percent of Broward County sellers, and 21 percent of Miami-Dade county sellers had to cut their prices last month.

“Market indicators suggest that sellers are losing control of the market,” said Tommy Unger, in a Redfin blog about the report. “Sellers are increasingly disappointed in buyer interest.”

Sacramento saw the highest percent of sellers dropping prices at 39 percent, followed by Seattle (36 percent), and Phoenix (35 percent).

Palm Beach County Realtors have said the hype over rapidly rising home prices leads sellers to overestimate what they can get for their homes, creating a of tug-of-war between agent and client.

“Price drops are usually a sign sellers didn’t get the offers they hoped for when they originally listed or they simply didn’t assess the current market conditions adequately,” Unger said. “It’s no surprise that our number one home selling tip is pricing your home right the first time.”

The median price for a Palm Beach County single-family home during the third quarter of the year was $250,000, up 14 percent from the same time in 2012.

Of sales that closed between July and the end of September, the average percent of original list price received by Palm Beach County sellers was 94 percent. That’s up from 88 percent last year.

by Kim Miller

Fixed mortgage rates on the rise

A stronger-than-expected October employment rate helped push rates on fixed rate mortgages (FRMs) higher during the week ending November 14,
Freddie Mac reports the average rate for the 30-year FRM rose to 4.35% from 4.16%, putting the rate at its highest level since September 19, 2013, when it averaged 4.50%. A year ago at this time, the 30-year FRM averaged 3.34%.
The 15-year FRM averaged 3.35%, up 8 basis points from last week's averaged of 3.27%. The 15-year FRM averaged 2.65% a year earlier.
The average for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.01% this week , compared with 2.96% last week. Last year, the 5-year ARM averaged 2.74%.
One-year Treasury-indexed ARMs were unchanged this week, averaging 2.61% and up 6 basis points from 2.55% at this time last year.
Stronger than expected economic data releases were responsible for this week's increase in rates. “Nonfarm payrolls increased by 204,000 in October, above the consensus forecast,” noted Freddie Mac Vice President and Chief Economist Frank Nothaft. “In addition, revisions added 60,000 additional jobs to the prior two month releases,he said, adding, “preliminary estimates indicate Real GDP growth in the third quarter was 2.8% -- also above consensus."

Jobless claims

Separately, the government reports first-time applications for state unemployment benefits fell by 2,000
in the week ending November 9 to 339,000. Economists surveyed by Briefing.com had forecast a total of 330,000. The previous week's figure was revised higher by 5,000 to 341,000.
Analysts note that the Labor Department (DOL) had to estimate the initial claims levels for 5 states because of the Veterans Day holiday, but point out that these estimates are usually robust and should not result in a major revision in next week's data.
The 4-week moving average, which is less volatile and considered a more accurate barometer of the labor market, was down 5,750, from the previous week -- to 344,000.


By James Limbach

Where Prices are Headed over the Next 5 Years

Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.
The results of their latest survey
The latest survey was released last week. Here are the results:

• Home values will appreciate by 4.3% in 2014.
• The average annual appreciation will be 4.2% over the next 5 years
• The cumulative appreciation will be 28% by 2018.
• Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of over 16.8% by 2018.

by The KCM Crew

End of the 20 percent down payment?

Wealthy borrowers no longer need large down payments to get a mortgage.

More lenders are approving borrowers who put less than 20 percent down for million-dollar home purchases, suggesting banks are feeling sanguine about the luxury market.

Last month, Bank of America lowered its minimum down-payment requirement to 15 percent, down from 20 percent, for loans of up to $1 million. Wells Fargo cut down-payment requirements by the same amount to a minimum of 15 percent in July for private jumbo mortgages, which start above $417,000 in most parts of the country and exceed $625,500 in pricier housing markets, such as New York and San Francisco.

By AnnaMaria Andriotis, The Wall Street Journal

KEEPING YOUR COSTS DOWN WHEN MOVING INTO A RENTAL

November 10th 2012 - Wellington, Fl
by Mike Holbrook
Team Leader and Senior Manager
with the Choice Plus Team
www.mikegetsyoumoving.com 561-632-1828
Twitter @mikeholbrook197

 KEEPING YOUR COSTS DOWN WHEN MOVING INTO A RENTAL

 

 

In today's market  South Florida Rentals are at a high demand. The cost of moving into a rental is a minimum of 2 months rent plus other fees such as running credit and a background check, and if their is a Home Owners Association you would have to pay there fees as well, not to mention the time it could take to get approved. If your credit is not up to par then you could be looking at 3 months rent up front plus fees.

Most people are financially strapped when it comes to 3 months rent up front. A solution is Apartments. Most Apartment Complexes are more forgiving when it comes to credit. The cost of move in is substantially lower. Some complexes will charge on a $99 deposit plus 1st months Rent or pro rated rent to keep your move in costs low. Also with Apartment Complexes you can usually move in immediately or at least within a few days.

My staff and I are very familiar with the Apartment Complexes in South Florida and update our price list Weekly. 

If you need to move but your funds are tight call me to get you moving!

 

 

SOUTH FLORIDA RESIDENTIAL INVENTORY IS GETTING SCARCE

November 7th 2012 - Wellington, Fl
by Mike Holbrook
Team Leader and Senior Manager
with the Choice Plus Team
www.mikegetsyoumoving.com 561-632-1828
Twitter @mikeholbrook197

SOUTH FLORIDA RESIDENTIAL INVENTORY IS GETTING SCARCE

Home-buyers in South Florida are finding the number of available homes from which they can choose is dwindling.  With the Real Estate Market having bottomed out in South Florida in 2012, the bottomed out prices combined with the lowest mortgage rates in history have fueled a buying frenzy.Demand is now surpassing supply.

Buyers who act soon still be able to take advantage of the low mortgage rates. 

I still know where the last few bargain properties are. I will help you find and negotiate the best price for your new home.  Take a look below at the numbers, then call me to set up an appointment. I will work hard to help you find your next home for you and your family.

South Florida Residential Inventory