It’s time to invest in America For the economy to strengthen!

04.17.09 by

Americans need to become consumers again.

In the American economy, some 70 percent of activity is derived from consumers. But when consumers hunker down and quit spending, economic activity decreases.

The history of America shows it has always had a tendency for action. It has made this country great. People and companies believed in the possibilities of the future and spent their money accordingly.

Today, the mood is the opposite. Economists warn that if we don’t jolt consumers and the economy back to life, we could fall into what economist John Maynard Keynes called the “paradox of thrift.” That is, if everyone saves during a slack period, economic activity will decrease, even more, making everyone poorer.

If we don’t start spending and investing again, we also run the risk of experiencing what was known as Japan’s “lost decade of the 1990s.”

There have been signs that investors are putting money back to work again. Retail sales are slowly rising, and housing starts for February were up more than 22 percent. Sales of existing homes increased by about 5 percent. But we have still a long, long way to go.

The rush to hoard cash and pinch pennies is understandable, given that the net worth of many investments has declined dramatically, say experts writing in Newsweek.

But for our $14 trillion economy to recover and thrive, money hoarders need to open their wallets again and become consumers.

No one is recommending big credit card debt, but worthy and affordable purchases or investments should no longer be put on hold.

Mortgage rates are historically low right now!

04.16.09 by

The 30-year mortgage: In mid-March, 30-year conventional mortgages carried interest rates of from 4.875 percent to 5.125 percent depending on the lender, the state, and the buyer’s credit score. (See bankrate.com and others)

At 5 percent interest, the monthly payment on a 30-year mortgage for a $100,000 loan is $536.83, which many homeowners could easily afford.

The 15-year mortgage: Some home buyers look forward to paying off the mortgage before they retire or before their children enter college. The 15-year mortgage is a good choice for them.

It’s nice to know that while it will pay off in half the time, they won’t be paying twice as much each month. The 15-year payment for a $100,000 loan is less than you would think. At an interest rate of 4.25 percent, it would be $752.28 a month. Over the life of the mortgage, they would save almost $67,000 in interest.

Seller Financing Can Be an Option for Some Buyers, Sellers

04.14.09 by

When the home you want does not have a mortgage or has one the seller is willing to carry, seller financing can be a great deal for a person buying a home.

Usually, the seller will want 10 percent down, but not always. The interest rate charged could be a point above the lowest bank rate. But one big advantage: The seller usually doesn’t require mortgage insurance, meaning the monthly payment will be lower in any case.

The loan can be constructed on a 30-year basis. Most seller-finance deals, however, last for five to seven years, then are settled with a balloon payment for the balance.

Sometimes, a buyer who opts for seller financing will be in a better position five or seven years down the road and will then be able to qualify for a 30-year conventional mortgage.

When buying a seller-financed property, be sure to get a current appraisal. Get title insurance for a few hundred dollars. It will show any tax liens and any other claims that could affect a property transfer.

Buyers Are Gaining Steam

04.11.09 by

A recent profile of buyers and sellers compiled by the National Association of REALTORS® has revealed promising, if not surprising statistics about the changing face of the marketplace. The percentage of first-time buyers is on the rise, and they are making their purchases for the long term.

Frankly, this makes sense, because first-time buyers aren’t struggling with the sale of an existing home. Combine that advantage with low home prices, large inventories, and low interest rates, and the result is a positive trend for both buyers and sellers.

Recently enacted tax credits and modifications in the Federal Housing Administration are also helping buyers, along with predicted increased credit flow from a federal funds injection into the banking system. More buyers entering the marketplace means more sales, reduced inventories and increasing home values.

The profile of sellers shows that over 90% used a real estate brokerage to market and sell their property. Buyers profiled listed the most important agent services as helping to find the right home and negotiate satisfactory terms and prices.

If you’re planning a purchase, and need funds for a down payment, learn from buyers in the study who mostly used savings or a gift from family, and who also chose a fixed-rate mortgage over 90% of the time. Consult with a trusted agent today, and get on board the homeownership train.

We know and understand all the financing methods available on the Treasure Coast of Florida. Why not give us a call at (772) 323-6996 or visit us on the web at www.GabeSanders.com or www.TreasureCoastFLHomes.com. Our office is located at 2391 SE Ocean Blvd. in Stuart, Florida; please ask for Gabe Sanders.

The Indian Street bridge has been approved

04.04.09 by

What has taken decades of planning and discussion is finally about to begin. The Florida Department of transportation started releasing bidding for the new bridge to join Stuart and Palm City by 36’th Street in Palm City and Indian Street in Stuart. This long awaited project has been approved using $128 million of Federal stimulus monies and $72 million that has been raised previously through federal, state and county collections.

This bridge will alleviate congestion on the one existing Palm City Bridge that is the main route between Stuart and Palm City. In addition to making access easier between Stuart and Palm City, this project is estimated to employ 3500 workers and have a tremendous trickle down benefit for the local economy and employment levels.

While it took a very long time to be approved, many residents feel it couldn’t have come at a better time.

Want more information? Visit us on the web at www.GabeSanders.com or www.TreasureCoastFLHomes.com . Our office is located at 2391 SE Ocean Blvd. in Stuart,  Florida; please ask for Gabe Sanders.

Martin County Real Estate Inventory Declines

07.14.08 by

Martin County Florida’s single family home inventory in June declined for the fifth consecutive month, which is an indication of market improvement.

There are 2409 homes available through the Multiple Listing Service, a decrease of 71 homes from the previous month and 495 since January 2008. The month-to-month inventory declined 20.5 percent since January.

The current inventory reflects a 16-month supply at the current sales pace.

Martin County had 152 single family home sales in June, a 5 percent improvement from the 144 home sales in the month prior, and 12 percent above the 134 homes sold in June 2007.

To date, 754 homes have been sold by Realtors so far this year, a 4.3 percent increase from the 722 sales posted in the same period a year ago.

The median sales price of a home in Martin County in June fell to $234,950, a 3.1 percent increase over May’s $227,500, but 32.5 percent below the June 2007’s $337,000.
Condos sales in Martin County increased 22.2 percent in June, from 35 in June 2007 to 45 last month. Condo median prices fell 30.7 percent from $260,000 in June 2007 to $180,000 for June of 2008.

There are currently 1168 condos available for sale in the MLS as compared to 1281 in June of 2007.

These numbers show signs of positive activity in home and condo sales while showing that we’re not at the end of price declines yet. If inventory levels continue their decline, we should see a leveling of prices when absorption rates reach less than 9 months.

Understanding real estate dilemmas and their solutions is our business, and we’ll happily share our knowledge with you. Why not give us a call at (772) 323-6996 or visit us on the web at http://www.gabesanders.com/ and http://www.treasurecoastflhomes.com/. Our office is located at 1121 SE Ocean Blvd. in Stuart, Florida (Sewall’s Point); please ask for Gabe Sanders or .

January 2007 Market Update

03.04.07 by

Martin County escaped the slowdown in home sales experienced across the rest of the Treasure Coast during January, but not the continued slide in prices.

Realtors sold 93 homes, the same number as in January 2006, according to figures provided Tuesday by the Martin County Realtors Association. The median home price dropped to $296,000 from $310,000 between the two months, the association said.

Martin County’s report was a positive indictor for the market, said Jennifer Atkisson-Lovett, president of the Realtors Association of Martin County. “We are seeing our residential market begin to show signs of recovery as our number of pending sales are much better than 2006,” Atkisson-Lovett said. “We feel confident about the 2007 market as the pending sales have increased, and buyers are recognizing the outstanding values for investment that are abound in this market.”

Martin’s condominium market was mixed in January. There were 29 Realtor sales in that month versus 50 a year earlier, according to the association. The median price jumped, though, to $305,000 from $219,900 between the two months.

When lumped with the Port St. Lucie-Fort Pierce market, the housing market looked weaker. The Florida Association of Realtors said Tuesday that its members sold 252 existing single-family homes in that metropolitan area during January, down from 343 a year earlier. The median price dropped 8 percent to $241,000 from $261,500. Realtors sold 51 existing condos versus 62 in January 2005. The median price rose 6 percent to $225,000 between the two months.

“Basically, this shows that people listing their homes for sale are not marking them down to the proper market prices,” said Brad Hunter, director of the housing research firm Metrostudy in West Palm Beach. “At least there are still buyers in the market.”

Don Santos, past president of the Treasure Coast Builders Association and president of Santos Construction, said the numbers reflected that it’s still a buyer’s market. “I didn’t expect there would be a turnaround this month,” Santos said. “But I actually think the numbers are a good sign because we’re not seeing 30 percent and 35 percent drop-offs anymore. The bright side is a lot of consumers can really get good deals now.”

The West Palm Beach-Boca Raton area saw 496 sales of existing homes, down 15 percent from the 586 recorded during the same period last year. Prices dropped 1 percent to $388,000 from $393,700 last year.

Statewide, sales of single- family existing homes totaled 9, 382 last month compared to 12,906 homes sold in January 2006 for a 27 percent decrease.

Nationwide, The National Association of Realtors said sales of previously owned homes rose by 3 percent while the median price dropped to $210,600, a decline of 3.1 percent from a year ago.