Melbourne Florida Homes for Sale

That’s where it is at – Brevard County Real Estate!!

I was reading a story in Newsweek this morning called “The Sky Isn’t Falling” which discussed among other things the media blitz on swine flu and the economic struggles of the world. When I read the headline I was hoping it would be some mea culpa from the media over the hype that they create that surrounds major news topics. It was in a way, but then the writer claims that if the media hadn’t alerted the public there may have not been the action (or overreactions) to these events by the government and public in general. So I guess this should be a “THANK YOU” to all those journalists that make this happen (yeah right!)

However, now that news is available 24/7 at lightening speeds through print, TV, radio, internet, twitter and any other communication channel you can think of, all of these outlets have reporters clammering to get the scoop and report on the “news”. Where are the days of responsible journalism when people took their time to craft a story based on balanced reporting and the facts? Sure media is biased because people are biased and they are always looking for a creative angle to tell the story differently. Maybe days of balanced reporting never existed but were merely an idealistic vision of what the news should be – NEWS!

I have been in this industry for over five years now and I don’t have near the experience that some veterans have in this industry. I have surely not seen the highs and lows that others have lived through in the real estate market. If you look back, real estate has doubled in value almost every ten years in the last half century. Astronomical interest rates were the norm back in the 80′s and we have all seen the recent rise and fall of values in volatile markets like California and Florida. While I have been in the industry I have watched the media praise builders years ago when they were producing record sales and record profits. I worked for a builder that was racing to be the largest in the country and deliver over 50,000 homes in a year. Home building was the media darling then. The next stories were then all about the real estate bubble and when it was going to burst. Now it is all about the industry decline, how builders ruined cities and the tales of foreclosure and how builders and mortgage lenders ruined the economy. Journalists are more than happy to skewer everyone when they were part of feeding into the hype and the overwhelming growth.

The real estate industry (like all industries) should feel used by the media. All of these headlines and stories were all designed to get readers/viewers to tune in to their programs, subscribe to their websites, read their publications and provide a base that advertisers could reach to sell even more products. Seems like a vicious cycle, huh? I guess I had a bit of a rant today and get frustrated from reading some “news”. I hope the public learns to digest what they take in from all these different outlets and use them to understand what is really going on in the world. And, yes, the sky is not falling down . . . yet . . .

Below is a report I received from the Florida Association of REALTORS providing a statewide view of real estate sales. This report includes Single Family, Existing Homes and Existing Condominiums.

Florida Sales Report – 1st Quarter 2009
Single-Family, Existing Homes

REALTOR TRANSACTIONS Q1 2009 ! REALTOR TRANSACTIONS Q1 2008 ! %CHANGE
MSA
FL, Statewide- 31,412 ! 25,071 ! +25
Daytona Beach – 1,494 ! 1,257 ! +19
Ft. Pierce-Port St. Lucie – 1,226 ! 850 ! +44
Melbourne-Titusville- – 1,345 ! 1,060 ! +27
Palm Bay
Orlando – 4,307 ! 3,246 ! +33

Q1 2009 MEDIAN SALES ! Q1 2008 MEDIAN SALES ! % CHANGE
FL, Statewide – $141,000 ! $202,300 ! -30
Daytona Beach – $131,600 ! $174,000 ! -24
Ft. Pierce-Port St. Lucie – $118,300 ! $172,600 ! -31
Melbourne-Titusville- – $119,600 ! $165,000 ! -28
Palm Bay
Orlando – $151,700 ! $222,900 ! -32

Overall, transactions are increasing in Florida and Realtors are effectively helping people buy and sell more homes statewide. However, median sales price has declined which was expected for 2009. The median sales price represents that half the homes in that market are sold higher and half sold lower than the median sales price.

More homes are moving in Florida and there is much more activity this year than last.

By SmartMoney
Mortgage lenders may be offering loans at record low rates, but that doesn’t mean the loans are coming cheap.

In fact, borrowers may see much of the savings they’d realize from lower rates wiped out by closing costs, fees that are on the rise as lenders seek to pad their bottom lines.

“Frankly, lenders are struggling to make mortgages on a profitable basis in order to ensure survival,” says Keith Gumbinger, a vice president at mortgage information firm HSH Associates. “And you can, as a lender, help to increase your profitability by an increase in fees.”

As homeowners rush to lock in those rock-bottom mortgage rates, lenders’ costs of doing business increases, says Brian Smith, a senior loan officer at Republic Mortgage in Seattle. For example, whenever a lender locks in a rate for a prospective borrower, that action incurs administrative costs, even if the loan doesn’t close. Should the borrower fail to get approved, change his or her mind or jump on a lower rate elsewhere, the lender is still on the hook for the costs.

“As these locks fall out, each loan gets more expensive for you (as a lender), so you pass on that cost,” Smith says.

As a result, borrowers may encounter higher underwriting or administrative fees, along with bigger charges from appraisers, mortgage insurers and mortgage finance companies Fannie Mae and Freddie Mac.

When shopping for a mortgage, ask lenders to provide you with written good-faith estimates so you can compare costs, says Frank Ruzicka, a mortgage banker with Cornerstone Mortgage in St. Louis. Here are four fees to watch for:

1. Processing fees
Whether they’re called administrative, application, underwriting or processing charges, these fees are on the rise as lenders compensate for the lower-rate loans that they offer to be competitive. A lender may offer a borrower a $140,000 loan at an attractive 4.875% and no points, for example, but slip in a $350 underwriting fee and a $350 processing fee in addition to its regular application fee, Ruzicka says.

While charging an application fee of several hundred dollars is normal, piling on several additional charges for the same amount of work is not. Be sure to compare several lenders’ fees and question anything that seems redundant.

2. Fannie’s and Freddie’s cuts
On April 1, Fannie Mae and Freddie Mac yet again increased fees for loans they purchase or insure. Depending on a borrower’s credit scores and the size of his or her loan relative to the home’s value, these so-called loan-level price adjustments can range from 0.25% to 3% of the loan. Another 0.25% to 3% is added for cash-out refinancing (when borrowers refinance with loans that are bigger than what they owe on their existing loans so they can have some cash left over).

For someone in the credit score range of 660 to 679, a 30-year fixed-rate mortgage that is 85% of the home’s value would incur 2.5% in fees. (Before April 1, that same loan would have cost 1.75%.) And if the borrower took out cash, another 2.5% would be added, for a total of 5%.

To figure out if you’ll be hit with these charges, ask your lender or mortgage broker whether your loan will be sold to or insured by Fannie or Freddie. Today, that’s the case for 56% of all outstanding mortgages.

3. Appraisal fees
Thanks to the Home Valuation Code of Conduct — a set of regulations on property appraisals that went into effect May 1 — lenders that deliver loans to Fannie Mae and Freddie Mac are now prohibited from selecting or communicating with appraisers. This may cause them to collect appraisal fees upfront whether the loan goes through or not, Republic Mortgage’s Smith says.

If a borrower wants to refinance a home she thinks is worth $300,000, for example, but an appraiser values it at $200,000 and the loan doesn’t go through, the appraiser still has to be paid.

“I have not had to order an appraisal since the rules took effect (May 1), but I plan on collecting the appraisal fee at the time of loan application from now on,” Smith says. “Because the new rules forbid me from having any ‘substantive’ communication with the appraiser, I won’t know whether the property value will be enough to structure and price the loan.”

Appraisers are also being required to use a new form that they estimate adds 45 minutes to the time it takes to complete an appraisal. “We charge by the hour, so it will drive up costs,” says Brad Charnas, an appraiser in Cleveland.

4. Private mortgage insurance
As mortgage insurance companies move to so-called risk-based pricing, private mortgage insurance, which is required of anyone purchasing or refinancing a home with less than 20% equity, is getting more expensive for borrowers with lower credit scores, says Tom Taggart, a spokesman for San Francisco Bay Area mortgage insurer PMI. Someone buying a $200,000 home with 10% down, for example, would pay $1,000 a year in private mortgage insurance if he had FICO scores of 700 or higher. At 680, he’d pay $1,162 a year.

Sure, there are great real estate deals to be had, if you know what you’re doing.
By Amanda Gengler, Money magazine writer
May 1, 2009: 6:17 AM ET

1. Finding one has become easier
You don’t need to show up at courthouse auctions or comb through legal filings. These days many banks sell foreclosed homes through real estate agents.

To find listings, look on sites that specialize in foreclosed properties, such as realtytrac.com and foreclosurepoint.com. The local multiple-listing service often has selections as well. (The fact that the home is in foreclosure is not always highlighted in the MLS, but it’s often mentioned in the description.)

Finally, some agents specialize in foreclosures, so call your local realtor’s office and ask for a referral.

2. It’s best to buy from a bank
If you buy a foreclosed home at an auction before the bank repossesses it, you’ll have to pay in cash, and you usually cannot inspect the property. You may also later discover that there are liens against it.

When a bank takes back a home, however, it will clear any outstanding liens. Plus, when you buy a bank-owned property, you can inspect it beforehand, and you can finance the purchase with a mortgage. Leave your suitcase full of cash at home.

3. Bring in a contractor before you buy
Many foreclosed homes have been abandoned, some even vandalized, and they often require major repairs. “One mistake a lot of people make is underestimating how much work it needs and the cost,” says Rick Sharga of RealtyTrac.

To avoid getting stuck with a surprise bill, ask a contractor to give you an estimate of how much the restoration will cost and how long it will take. Many will do so for free in hopes of winning your business.

4. Bid low
Banks aren’t necessarily selling foreclosures at fire-sale prices; some are listed at market value, says Gene Hacker, a broker in Orange County, Calif. So be prepared to haggle. The bigger the inventory of foreclosed homes the bank has and the longer the property has sat, the greater your chances of nabbing a great deal, says Chris Matty of ForeclosurePoint.com.

Set your initial offer about 10% below market price – or more if your area has a lot of foreclosures.

5. Be prepared to wait
While some lenders are getting back to bidders within 36 hours, others are dealing with an enormous backlog that can hold up their response for as long as three months. While you wait, someone can trump you with a higher offer.

To boost your chances at scoring a home you love, have multiple properties in mind, and get your financing pre-approved before you bid. Even if the lender says it has another offer, follow up every week – these deals can often fall through.

326 Pine Ridge Lane, Melbourne, FL 32940 $179,800

http://tour.previsite.com/42D118D2-B740-C989-0A91-2B2D8A8EF0E3

4815 Solitary Drive, Viera, FL 32955 $650,000

http://tour.previsite.com/61B1D0B3-3F44-E228-60C8-5F346DE04273

334 Patrick Circle, Melbourne, FL 32901 $108,000

http://tour.previsite.com/1DF951F4-DE1D-0395-D845-234F0412858B

ORLANDO, Fla. – April 23, 2009 – Florida’s existing home sales increased in March, making it the seventh month in a row that sales activity demonstrated gains in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR). March’s statewide sales also increased over the previous month’s sales level in both the existing home and existing condo markets.

Existing home sales rose 30 percent last month with a total of 13,085 homes sold statewide compared to 10,080 homes sold in March 2008, according to FAR. Statewide existing home sales in March were 32.7 percent higher than February’s statewide sales.

Florida Realtors also reported a 25 percent rise in statewide sales of existing condominiums in March, continuing a trend in recent months for higher statewide sales of both the existing home and existing condo markets compared to year-ago levels. Statewide existing condo sales last month increased 37.2 percent over the total units sold in February.

Fifteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing-home sales in March and 13 MSAs also showed gains in condo sales. It marks the ninth consecutive month that a majority of markets have reported increased sales.

Florida’s median sales price for existing homes last month was $141,300; a year ago, it was $201,700 for a 30 percent decrease. Industry analysts with the National Association of Realtors® (NAR) report there is a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in February 2009 was $164,600, down 15 percent from a year earlier, according to NAR. In California, the statewide median resales price was $247,590 in February; in Massachusetts, it was $252,500; in Maryland, it was $253,200; and in New York, it was $210,000.

NAR’s latest housing industry outlook reported that entry-level buyers are seeking bargains, which resulted in sales of distressed properties accounting for 40 to 45 percent of February’s transactions. “Given the downward distortion in price comparisons due to distressed sales, it’s important for owners to keep in mind that this doesn’t equate to a similar loss of value for traditional homes in good condition,” said NAR Chief Economist Lawrence Yun.

In Florida’s year-to-year comparison for condos, 4,388 units sold statewide compared to 3,503 units in March 2008 for a 25 percent increase. The statewide existing condo median sales price last month was $108,700; in March 2008 it was $172,300 for a 37 percent decrease. In the latest data available at press time, NAR reported the national median existing condo price was $172,200 in February 2009.

Interest rates for a 30-year fixed-rate mortgage averaged 5 percent last month, down significantly from the average rate of 5.97 percent in March 2008, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s large to medium-size markets, the Melbourne-Titusville-Palm Bay MSA reported a total of 539 homes sold in March compared to 445 homes a year ago for a 21 percent increase. The existing home median sales price was $123,700; a year ago, it was $159,000 for a 22 percent decrease. In the year-to-year comparison for the existing condo market, a total of 113 units sold in the MSA last month, up 24 percent compared to 91 condos sold the previous March. The market’s existing condo median price was $123,100; a year ago, it was $164,300 for a 25 percent decrease.

By Les Christie, CNNMoney.com staff writer
Last Updated: May 4, 2009: 11:25 AM ET

– Is the housing meltdown ending?

Pending home sales rose in March for the second consecutive month and are up year over year. The Pending Home Sales Index from the National Association of Realtors showed a 3.2% gain to 84.6 from February, when it was 82. The index stands 1.6% higher than a year ago.

The consensus forecast of industry experts polled by Briefing.com had predicted no increase in the index.

It may still take a while before the market gains enough momentum to firmly state that the downturn has been reversed, according to Lawrence Yun, NAR’s chief economist. And, the upturn may have been boosted by the first-time homebuyers tax credit, a temporary measure that will lapse in December.

“We need several months of sustained growth to demonstrate a recovery in housing, which is necessary for the overall economy to turn around,” said Yun. “This increase could be the leading edge of first-time buyers responding to very favorable affordability conditions and an $8,000 tax credit, which increases buying power even more in areas where special programs allow buyers to use it as a down payment.”

The index is understood to be a forward indicator of home sales trends since it measures contracts signed, not completed sales. The up-tick may indicate that home prices have fallen low enough for buyers to get off the fence.

Yun is not calling a bottom yet, however, because the index is still at a relatively low level. Instead, he’s looking toward the summer selling season to determine what direction the market will take. Plus, he would like the number of homes on the market to drop to a more normal level of six to seven months of supply.

“If inventory goes down – it’s at just under 10 months now – to below eight months, that would mean we’re on the way to a sustainable recovery,” Yun said.

Anecdotal evidence indicates that trend may be happening. Realtors and other industry insiders are seeing rising open house attendance and multiple bids on some particularly desirable properties. Plus, pricing has become sharper, according to Sherry Chris, the CEO of Better Homes and Gardens Real Estate.

“Overpricing seems to be ending,” she said. “Properties are coming onto the market and selling quickly.”

And buyers are feeling a little more urgency, she added. In many markets, buyers have not felt any pressure to make an offer. “They said to themselves, ‘I don’t have to act immediately. It will still be on the market two weeks from now,’” she said.

Today, buyers are more likely to bid because they perceive the market as at or near its bottom. An April Gallup Poll reported that 71% of Americans thought it was a good time to buy a house.

They don’t, however, believe there will be price increases soon; three of four buyers think prices will stabilize or even decline in their areas over the next 12 months, according to Gallup.

Pat Newport, a real estate analyst for IHS Global Insight, is putting less emphasis on pending home sales than he once did for his housing market analyses. There has been a disconnect lately, he said, between the number of properties going into contract (pending home sales) and the number that actually close (existing home sales).

He speculates that this is because buyers are making offers and signing contracts but, because of financing problems, many deals are falling through.

The South saw the largest gain of any region, with pending home sales jumping 8.5%. Pending sales are 7.7% higher there compared with a year ago.

The Midwest gained 3.9% from February and 1.7% year-over-year. Northeast sales fell 5.7% and are off 24.1% compared with March 2008. The West dropped 1% for the month but are up 8.2% year-over-year.

Low home prices continued to help to drive sales, although NAR’s affordability index actually fell 2.3% from February, when it hit a historic high. This index is based on family income, home prices and mortgage rates.

“Compared to a year ago, the typical family can pay much less in mortgage costs for the same home, or buy a better home without necessarily increasing their monthly payment,” said NAR President Charles McMillan, in a prepared statement. “For buyers who’ve been on the sidelines and have good jobs, the market has never looked more favorable.