Okay, last Monday when I blogged it was COLD! Today it is back to the mid 60's and tomorrow in the low 70's!!! This is my kind of winter!!!
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Some of you have asked about my whiting fishing expedition----it's still on my "to do" list! I've been busy on the sunny days (which are the best days to catch whiting, I've been told) and I certainly don't want to stand on the pier on a cloudy day if I'm not going to catch anything. I'm not very patient!
I've also been working on my house. Chip and I are in a constant renovation mode with our old little house! We work on projects all winter, while he has time to be at my beck and call!!!
Eventually we'll have our perfect little beach cottage finished!!!!
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Let's get to the all important real estate market...............We've got a new property under contract this week---a mobile home sitting on two lots in Mexico Beach, listed at $165,000.
It will be interesting to see what this closes for.
I know of at least 3 offers being made, negotiations still continuing though. I do believe there are a lot of people looking, which is encouraging. These are mostly people who are older, with money, or at least not worried about losing their job!! Investors definitely are looking.
Prices are still coming down. Our pricing has been all over the place which definitely has a negative effect on the buyers. You can't have a single family home, gulf front, listed at $750,000 and then half a duplex, gulf front, listed at $825,000. It confuses buyers!!! Some of those sellers, which have been listed too high, are becoming a little more realistic and are reducing their prices. Those sellers that are listed at reasonable prices just need to be a little patient!
One way to determine a realistic list price is to first determine the land value. Of course, the land value is determined by lots in similar location and size which have sold recently. Then multiply your square footage by the going rate of construction. This rate also depends on location--the closer to the water, the higher the construction costs. But let's just give $85/sq foot back from the water and $110-$120/sq ft for homes close to the water. Of course, this is just an estimate and again depends on size, quality, age, and location!!!
But if you are anywhere in that ball park---I think you have a pretty good selling price!
If you are thinking about selling, I'll be glad to work up a valuation for you!!!
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The mortgage industry is something that directly affects the real estate market. Below is a summary of what's going on there----it's a little wordy but...........................................Brian Robinson, who works with Wells Fargo sent this to me today.
Although home loan rates are very attractive now, the picture could be quite different as some inflationary factors will likely come to light heading into summer. Oil prices may be on the rise as we approach the summer driving season, some of the economic stimulus might begin to take hold, corporate cost-cutting measures could start to bear fruit, and, perhaps most importantly, the Fed will no longer be a buyer of Mortgage Bonds. These are all ingredients in a recipe that could very easily result in significantly higher interest rates this summer...so if you have been thinking about acting on a home loan, do not delay.
But with no hint of inflation in the current market, why would Bond traders be fearful now? Are they listening to strange voices and what did they say? The forward looking markets got an earful from Fed Governor Frederic Mishkin last week...and he's not the only one. Mishkin said that "inflation could come to the forefront, given all of the government programs", and "once the economy recovers, liquidity must be taken out of the markets"...meaning the Fed may need to rapidly hike rates down the road, to control the potential of inflation.
In other news, Stocks around the globe faced heavy selling pressure last week on renewed fears of the deepening worldwide economic slump...and this despite better than expected earnings from Google and IBM, as well as GE meeting earnings expectations. Even with the downward pressure on Stocks which can sometimes benefit Bonds, the mention of the "I" word left its mark, with home loan rates ending the week around .25% higher than where they began.
READY TO MOVE ON THAT HOME PURCHASE OR REFINANCE BEFORE THE LOW RATES GET AWAY? READ THIS WEEK'S MORTGAGE MARKET VIEW FOR A FEW IMPORTANT TIPS ON UNDERSTANDING TODAY'S LENDING CLIMATE, AND KNOWING THE SMART MOVES TO MAKE RIGHT NOW.
Forecast for the Week
Inflation chatter could come around again this week, as the Fed will be holding their regularly scheduled meetings on Tuesday and Wednesday, with their Policy Statement and decision regarding the Fed Funds Rate coming on Wednesday. Remember, the Fed made history last month when they slashed the Fed Funds Rate by .75% to the lowest target range in history of 0% to .25%. The chart below shows an interesting history of the Fed Funds Rate since 1955.
Other potential market movers include Friday's Gross Domestic Product (GDP) Report. GDP is the broadest measure of economic activity, and given the state of our economy, a negative report might not be too much of a surprise. In addition, Thursday's Durable Goods Report (i.e. items that are non-disposable, like cars, furniture, appliances, games, cameras, business equipment, etc) will give us a read on consumer and business consumption and buying behavior. We'll also get a look at the housing market this week with Monday's Existing Home Sales Report and Thursday's New Home Sales Report.
Remember: Inflation is the arch enemy of Bonds and home loan rates, and even the mention of it can have negative ramifications. I will be watching very closely to see how Bonds and rates respond to all the news of the week.
The Mortgage Market View...
The Heat is On
Homes are on sale, sellers are motivated, and interest rates are at historic lows...but may not stay that way, which means it makes sense to get moving on that home purchase or refinance you've been contemplating. But if you or one of your clients is among the smart individuals who are going ahead and taking advantage of the low home loan rates to be had right now, there are a few things to be aware of.
With interest rates at record lows, all lenders in the US have recently seen a sharp increase in loan applications - right at the time that many lenders have cut headcount to save money in a challenging economy. This means that timeframes needed for underwriting, approvals and closing have become longer than normal. Some companies have chosen to actually raise rates just to slow down the volume to a manageable level.
Sound crazy? No crazier than when you go to buy that hot new vehicle...only to find that there is no price negotiation. In fact, you wind up lucky to just pay the sticker price, as the demand usually allows the Dealer to add a markup to the price. And you don't get the car right away; you have to wait on a list for your turn to come up.
Right now, home loans are like that hot new car - but with the timer ticking on interest rates locks, there are a few things you can do to protect yourself.
First, longer lock in time frames than might normally have been considered are a necessity, to ensure that the file has time to be processed, underwritten, approved and closed in time to protect the rate lock in this extremely volatile climate. And that longer, safer lock-in period may be a bit more costly - but it's money well spent. Overall, the mind set here should not be one of greed. Don't try to squeeze every last drop out of rates. If you are within a quarter percent of the lowest rates offered in the history of this country, you did very well. And rates always shoot up higher at a much faster pace than when then dip lower. So if the savings or opportunity make sense - grab it.
Next, responding quickly to requests for information or documentation is important - the faster the file is submitted and approved, the better off we are to keep that great interest rate protected.
Finally, be aware that it may be a smart idea to pay points to gain the best interest rate - and sometimes is even necessary in today's market. Giant mortgage buyers Fannie Mae and Freddie Mac have recently imposed more "risk-based pricing adjustments", meaning that even credit scores and loan to values which in the past would have been considered very low risk, may now be subject to mandated fees by Fannie and Freddie. And based on the way lenders have changed their rate sheets over time, there is now very little "premium pricing", which used to allow options for fees like these, points or other closing costs to be covered in return for a slightly higher interest rate.
Right now is still an excellent time to act, before the great low rates of today get away from us. But let's be smart - call me for information on how we can get started right away.
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That's enough reading for you today!!!
Have a great week and don't hesitate to pass my name and number out to all your friends!!!!
Remember...........Everything can change in the blink of an eye. But don't worry; God never blinks!
Mary
850-896-5222
www.maryblackburn.com
Sundance Realty
Monday, January 26, 2009
Tuesday, January 20, 2009
Real Estate At The Beach
BRRRRRRR! We've had unusually cold weather last week-----okay, I can handle a day or two of chilly weather, I don't complain when I have to cover up my plants for a night once in awhile, But this is lasting tooooo long! It's supposed to be very cold every night this week!
When the high is only in the upper 40's ---its just too cold! However, I know its all relative. I showed property to a woman from Indiana over the weekend and although I thought it was COLD, she was in flip flops!
This morning, I saw two people walking on the beach, obviously from up north! It was in the mid 30's and the wind was really howling. So I guess I shouldn't complain. I've never had to scrape ice off my winshield!
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We are all showing quite a bit of property! This is encouraging. Not a lot of contracts but the first step is showing people around. There has been quite a surge of new customers finding out about the area and falling in love!
We've had 3 properties go under contract in January so far, all in Mexico Beach.
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Just to let you know, I've added a calendar to my website. The page is still under construction but you can access it. I am going to put all events scheduled for the area. I am going to include events in Port St. Joe, Cape San Blas, Apalachicola, St. George Island as well as Mexico Beach.
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Congratulations to President Obama. I pray that he makes wise decisions for our country!
_________________________________________________
As always, have a fantastic week. Please feel free to contact me anytime if you have ANY questions about buying or selling in Mexico Beach, Port St. Joe, Cape San Blas, Windmark Beach!
Mary
850-896-5222
When the high is only in the upper 40's ---its just too cold! However, I know its all relative. I showed property to a woman from Indiana over the weekend and although I thought it was COLD, she was in flip flops!
This morning, I saw two people walking on the beach, obviously from up north! It was in the mid 30's and the wind was really howling. So I guess I shouldn't complain. I've never had to scrape ice off my winshield!
_______________________________________________-
We are all showing quite a bit of property! This is encouraging. Not a lot of contracts but the first step is showing people around. There has been quite a surge of new customers finding out about the area and falling in love!
We've had 3 properties go under contract in January so far, all in Mexico Beach.
- A beach side newer townhouse--listed at $343k and advertised as a short sale. I believe its going to sell for under $300,000. This townhouse was purchase pre-construction for $395,000 in 2005!
- A single family home across from dedicated beach, so unobstructed gulf view. Listed at $550,000. I believe the selling price is not too far from the listing price. This will be a great profit for the sellers who are the original owners!
- A gulf front condo, newer, fully furnished listed at $325,000. I believe this is selling pretty close to the list price as well! This condo was purchased pre-construction for $349,600 in 2006!
_____________________________________________________
Just to let you know, I've added a calendar to my website. The page is still under construction but you can access it. I am going to put all events scheduled for the area. I am going to include events in Port St. Joe, Cape San Blas, Apalachicola, St. George Island as well as Mexico Beach.
_________________________________________________
Congratulations to President Obama. I pray that he makes wise decisions for our country!
_________________________________________________
As always, have a fantastic week. Please feel free to contact me anytime if you have ANY questions about buying or selling in Mexico Beach, Port St. Joe, Cape San Blas, Windmark Beach!
Mary
850-896-5222
Monday, January 12, 2009
Mexico Beach Florida Real Estate Blog
I sent out the monthly newsletter last week. In my newsletter I list a few properties that I think are good buys, I give you recent stats on the market and just some miscellaneous information. If you didn't receive it, or haven't signed up for it, send me a quick email and I'll send it to you!
I do only give stats for Mexico Beach and St. Joe Beach. If you are interested in Port St. Joe or Cape San Blas, I can certainly do a quick analysis for you!
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Our weather has been wonderful! Last week it was in the high 70's! It is going to be chillier this week. This morning it was 39 and it supposed to get up to 58. High 50's all week. Not bad for January!!!
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As you know, if you have been keeping up with my blog and newsletters, vacant lots have taken the biggest hit here. Lots that were selling for 200K at the height of the market are now selling for $60K, even as low as $26K ( but that was a unique situation and not likely to be repeated!!!).
Part of the reason lots aren't selling is that vacant lot loans are extremely difficult to obtain now-a-days and the interest rates are high when compared to residential rates. Many banks won't even consider lending on a vacant lot. The few that will require 25-35% down and are quoting interest rates in the 7.25-8.25%!
Cash, again, is King if you are wanting a vacant lot right now! Owner financing is also a great option if you can find a seller who owns his land free and clear!
________________________________________________________
Below is an update on the new airport in Panama City. Panama City is relying solely on this airport creating a surge in the real estate market over there. The airport will be much bigger than the one they have now making it accessible to larger aircraft. I'm not sure if it will be a "hub" but it certainly will be on more flight patterns making it easier to get to Panama City.
Construction Update - 12/29/08
by NewPFN on December 29, 2008
Construction at the new Panama City-Bay County International Airport continues to run smoothly and is currently about 3 and a half months ahead of schedule.
The entire project is about 35% complete, with the heavy civil portion, which includes the main runway, approximately 66% complete.
In general, almost 250 workers are regularly onsite each work day. Offsite quarries, asphalt plants, concrete pipe plants, truck drivers and other ancillary activities will normally employ another 350 people in significant activity.
As the terminal construction and utility installation contracts begin to ramp up after New Years, these numbers will increase
The foundation for the terminal building is underway with concrete being placed in the footers. Foundations are also underway for the various support buildings and the air traffic control tower. Concrete is being produced by local plants (offsite).
Approximately 40,000 tons of asphalt has been placed on the project to date. Contractors are currently paving the main apron areas.
Sands and fine aggregates are obtained from local sources while harder aggregates come from mines in Alabama and Marianna, Florida. Asphalt is mixed by CW Roberts in their Freeport and Panama City plants.
Approximately 55% of the main runway’s 15″ concrete paving lanes are now in place.
Aggregates for the concrete are being sourced from local sand quarries and hard rock mines near Perry, Florida. Concrete is being placed by a team of local contractors that includes operators, finishers, and detailers.
To date 5.4 million cubic yards of earth has been moved on the project site.
Approximately 33,000 linear feet of reinforced concrete pipe has been produced locally and installed by the area’s contractors.
Over 40,000 linear feet of high-density plastic underdrains have also been installed.
Other local contractors are involved with providing dewatering pumps, erosion control and grass seeding.
Work on the underground utilities portion of the project is expected to begin on January 5, 2009.
____________________________________________________
How will this new airport affect Mexico Beach? There seem to be two kinds of buyers---one group loves Panama City because it has all the restaurants, night life, malls......... The beach is gorgeous over there (if you can find it). The other group is looking for "old Florida". They are trying to escape the traffic, the commercialism, they are seeking only surf, sun, and sand! Those people, once they find Mexico Beach, fall in love and those are our buyers! The more people who come to Panama City will increase the amount of people who venture out and find Mexico Beach! So, ultimately the airport may help the real estate market here in Mexico Beach!
_______________________________________________________
I had a couple of investors come and look at property this weekend. He confirmed that this is definitely the time to buy, that the world is not coming to an end. He, of course, is dealing with cash. He also is not going to over pay for a property. He is looking for deals. As an investor, he will definitely enjoy the property while it is gathering equity for the next 5 years! He was not concerned with the list price. He was concerned with the sold comps only! He will definitely make some low offers, some will be accepted, some will not!
My point in bringing this up is that those of you who have been coming here for years and have secretly dreamed of owning a place here----please don't miss out. I'm not saying that you have to buy something this week. I am saying, get your ducks in a row. If you have good credit and some disposable income, you really need to be seriously looking. You need to get with your lender and see what you can work afford.
_______________________________________________________
Please don't hesitate to call me anytime if you have any questions at all about real estate in Mexico Beach all the way to Cape San Blas.
Have a fantastic week!
And remember.....................When it comes to chocolate, resistance is futile!!!!
Mary
850-896-5222
www.maryblackburn.com
Sundance Realty
I do only give stats for Mexico Beach and St. Joe Beach. If you are interested in Port St. Joe or Cape San Blas, I can certainly do a quick analysis for you!
__________________________________________________
Our weather has been wonderful! Last week it was in the high 70's! It is going to be chillier this week. This morning it was 39 and it supposed to get up to 58. High 50's all week. Not bad for January!!!
__________________________________________________
As you know, if you have been keeping up with my blog and newsletters, vacant lots have taken the biggest hit here. Lots that were selling for 200K at the height of the market are now selling for $60K, even as low as $26K ( but that was a unique situation and not likely to be repeated!!!).
Part of the reason lots aren't selling is that vacant lot loans are extremely difficult to obtain now-a-days and the interest rates are high when compared to residential rates. Many banks won't even consider lending on a vacant lot. The few that will require 25-35% down and are quoting interest rates in the 7.25-8.25%!
Cash, again, is King if you are wanting a vacant lot right now! Owner financing is also a great option if you can find a seller who owns his land free and clear!
________________________________________________________
Below is an update on the new airport in Panama City. Panama City is relying solely on this airport creating a surge in the real estate market over there. The airport will be much bigger than the one they have now making it accessible to larger aircraft. I'm not sure if it will be a "hub" but it certainly will be on more flight patterns making it easier to get to Panama City.
Construction Update - 12/29/08
by NewPFN on December 29, 2008
Construction at the new Panama City-Bay County International Airport continues to run smoothly and is currently about 3 and a half months ahead of schedule.
The entire project is about 35% complete, with the heavy civil portion, which includes the main runway, approximately 66% complete.
In general, almost 250 workers are regularly onsite each work day. Offsite quarries, asphalt plants, concrete pipe plants, truck drivers and other ancillary activities will normally employ another 350 people in significant activity.
As the terminal construction and utility installation contracts begin to ramp up after New Years, these numbers will increase
The foundation for the terminal building is underway with concrete being placed in the footers. Foundations are also underway for the various support buildings and the air traffic control tower. Concrete is being produced by local plants (offsite).
Approximately 40,000 tons of asphalt has been placed on the project to date. Contractors are currently paving the main apron areas.
Sands and fine aggregates are obtained from local sources while harder aggregates come from mines in Alabama and Marianna, Florida. Asphalt is mixed by CW Roberts in their Freeport and Panama City plants.
Approximately 55% of the main runway’s 15″ concrete paving lanes are now in place.
Aggregates for the concrete are being sourced from local sand quarries and hard rock mines near Perry, Florida. Concrete is being placed by a team of local contractors that includes operators, finishers, and detailers.
To date 5.4 million cubic yards of earth has been moved on the project site.
Approximately 33,000 linear feet of reinforced concrete pipe has been produced locally and installed by the area’s contractors.
Over 40,000 linear feet of high-density plastic underdrains have also been installed.
Other local contractors are involved with providing dewatering pumps, erosion control and grass seeding.
Work on the underground utilities portion of the project is expected to begin on January 5, 2009.
____________________________________________________
How will this new airport affect Mexico Beach? There seem to be two kinds of buyers---one group loves Panama City because it has all the restaurants, night life, malls......... The beach is gorgeous over there (if you can find it). The other group is looking for "old Florida". They are trying to escape the traffic, the commercialism, they are seeking only surf, sun, and sand! Those people, once they find Mexico Beach, fall in love and those are our buyers! The more people who come to Panama City will increase the amount of people who venture out and find Mexico Beach! So, ultimately the airport may help the real estate market here in Mexico Beach!
_______________________________________________________
I had a couple of investors come and look at property this weekend. He confirmed that this is definitely the time to buy, that the world is not coming to an end. He, of course, is dealing with cash. He also is not going to over pay for a property. He is looking for deals. As an investor, he will definitely enjoy the property while it is gathering equity for the next 5 years! He was not concerned with the list price. He was concerned with the sold comps only! He will definitely make some low offers, some will be accepted, some will not!
My point in bringing this up is that those of you who have been coming here for years and have secretly dreamed of owning a place here----please don't miss out. I'm not saying that you have to buy something this week. I am saying, get your ducks in a row. If you have good credit and some disposable income, you really need to be seriously looking. You need to get with your lender and see what you can work afford.
_______________________________________________________
Please don't hesitate to call me anytime if you have any questions at all about real estate in Mexico Beach all the way to Cape San Blas.
Have a fantastic week!
And remember.....................When it comes to chocolate, resistance is futile!!!!
Mary
850-896-5222
www.maryblackburn.com
Sundance Realty
Monday, January 05, 2009
Happy New Year From Mexico Beach Fl
So far so good in 2009! We've been blessed with 70+ degree weather for the last couple of weeks! We certainly can't complain about this winter weather!
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For those of you who have asked---No, I haven't been whiting fishing yet! I've heard that you have to go when its sunny. They won't bite if overcast! So, of course, on the days where I have time to go, its been overcast!
Chip and I have also been suffering from this killer cold virus that's been going around the area.
A few days of low grade temperature, head congestion, chest congestion, tired........
We are about over it though! You sure appreciate feeling good after being sick for a while!!!
_______________________________________________________
I just sent out my monthly newsletter. If you didn't get it, its probably because its being blocked, so just let me know and I'll send it a different way!
I have some stats that compare prices from year to year in a pdf file. If you want that file, just let me know and I'll send it to you. I also have an updated list of foreclosures and short sales in the area---really only for the Mexico Beach/St. Joe Beach area. Not a lot of new foreclosures, but if you want that list, let me know!
It's really pretty interesting!
_______________________________________________________
We've had a lot of showings in the last couple of weeks. A lot of new people to the area as well as a few investors ! That is encouraging! Those falling interest rates are very attractive and
considering God isn't making any more coastline...............................................
_______________________________________________________
Lots are down to about 60-70K, mobile homes down to around 100K, single family's just under $200K.
Gulf front single family homes start at the list price of $750K ( but about 10% negotiable!!!!!).
Unobstructed gulf view homes are now starting at $329,000---compared to $420K a few years ago!!!
We can pretty much accomodate any price range now!!!
____________________________________________________
Interest rates are right around 5% now. Gas prices are about $1.65-1.75!
____________________________________________
February 14 is our annual Gumbo cook off in Mexico Beach. If you THINK you cook a good gumbo, this is the competition to enter!! Always a fun and delicious day in Mexico Beach.
_____________________________________________
Our local Express lane in Mexico Beach sold a winning Fantasy Five this weekend. I heard the payoff was $180,000. We don't know if the winner was a local or not! Will let you know when I find out!
_______________________________________________
As always, have a fantastic week and don't forget to pass my name out to anybody who might be interested in buying or selling in the area!
Mary
850-896-5222
www.maryblackburn.com
__________________________________________________
For those of you who have asked---No, I haven't been whiting fishing yet! I've heard that you have to go when its sunny. They won't bite if overcast! So, of course, on the days where I have time to go, its been overcast!
Chip and I have also been suffering from this killer cold virus that's been going around the area.
A few days of low grade temperature, head congestion, chest congestion, tired........
We are about over it though! You sure appreciate feeling good after being sick for a while!!!
_______________________________________________________
I just sent out my monthly newsletter. If you didn't get it, its probably because its being blocked, so just let me know and I'll send it a different way!
I have some stats that compare prices from year to year in a pdf file. If you want that file, just let me know and I'll send it to you. I also have an updated list of foreclosures and short sales in the area---really only for the Mexico Beach/St. Joe Beach area. Not a lot of new foreclosures, but if you want that list, let me know!
It's really pretty interesting!
_______________________________________________________
We've had a lot of showings in the last couple of weeks. A lot of new people to the area as well as a few investors ! That is encouraging! Those falling interest rates are very attractive and
considering God isn't making any more coastline...............................................
_______________________________________________________
Lots are down to about 60-70K, mobile homes down to around 100K, single family's just under $200K.
Gulf front single family homes start at the list price of $750K ( but about 10% negotiable!!!!!).
Unobstructed gulf view homes are now starting at $329,000---compared to $420K a few years ago!!!
We can pretty much accomodate any price range now!!!
____________________________________________________
Interest rates are right around 5% now. Gas prices are about $1.65-1.75!
____________________________________________
February 14 is our annual Gumbo cook off in Mexico Beach. If you THINK you cook a good gumbo, this is the competition to enter!! Always a fun and delicious day in Mexico Beach.
_____________________________________________
Our local Express lane in Mexico Beach sold a winning Fantasy Five this weekend. I heard the payoff was $180,000. We don't know if the winner was a local or not! Will let you know when I find out!
_______________________________________________
As always, have a fantastic week and don't forget to pass my name out to anybody who might be interested in buying or selling in the area!
Mary
850-896-5222
www.maryblackburn.com
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