Historic Fed Move Cuts Both Ways for Borrowers-Tampa, Fl

Historic Fed Move Cuts Both Ways for Borrowers

Hot on the heels of its surprise inter-session rate cut of 75 basis points last week, the Federal Reserve cut key interest rates again, the fifth straight cut since September 2007. In its statement last week, the Fed said it had decided to cut the federal funds rate "in view of a weakening of the economic outlook and increasing downside risks to growth." In other words, economic data suggests the US is on the brink of recession, and the Fed is acting accordingly.

Who benefits from this cut?If you have a loan that is directly tied to the Prime Rate, you will see an immediate benefit. Home equity lines of credit (HELOCs) and variable rate charge cards are the types of loans that will have an interest rate reduction on their next statement.

What does this mean for long-term rates? Long-term mortgage rates, the lowest we've experienced in years, could actually increase after today's cut, based on historical performance and recent trends.

So if you're waiting for long-term rates to fall further, don't count on it. Your best chance to lock in the lowest rates since 2005 is now. Getting your application in process now will allow you to capture a great rate before it's too late.

Thinking about buying or selling real estate in the Tampa Bay Area? Have a Real Estate question?
Feel free to email or call us 813-784-7744
Rae Catanese and Michelle Jordan
Realtors.

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Prudential Tropical Realty



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Why Buy a Florida Home Now? Large Inventories Offer Options, Say Florida Realtors(R)

Florida's real estate market has started a new year with the largest selection of homes and condominiums available for buyers in more than a decade. But factor in a continuing inflow of new residents to Florida and that means inventory levels are likely to decline in 2008.

"Buyers have a lot of choices throughout the state," said Nancy Riley,
a broker with Coldwell Banker Residential Real Estate in Pinellas County
and the 2007 president of the Florida Association of Realtors(R) (FAR).
"It's a great time to buy because there is large inventory."
While statewide inventory figures are not available, more than 125,000
homes are listed for sale in Florida's three largest markets, creating
ideal conditions for buyers, according to Riley.

In South Florida, Ron Shuffield, president of Esslinger Wooten Maxwell
(EWM) in Coral Gables, says there are approximately 80,000 homes and condos
for sale in Miami-Dade and Broward counties, compared with 64,000 a year
ago, and just 25,000 in late 2005. "South Florida is still growing in
population -- a clear sign that we will have more buyers in the future,"
said Shuffield. "We expect the inventory level to fall in 2008 as more
people make their homes here."

In the Tampa Bay market (Hillsborough, Pinellas and Pasco counties)
there were roughly 29,000 homes for sale in late 2007, up from 25,500 in
December 2006. "Buyers have a great selection of homes to choose from and a
once-in-a- lifetime opportunity to get a great value," said Cynthia
Fazzini, sales associate with Coldwell Banker's Palm Harbor office, who
compiled the regional sales figures.

More than 26,300 homes are for sale in the greater Orlando area,
compared with 21,300 a year ago, according to MLS figures provided by Randy
Martin, broker-associate with RE/MAX 200 Realty in Winter Park. "There are
plenty of choices out there as sellers are becoming realistic in their
expectations," Martin says.

While inventory levels are high in most Florida markets, the number of
for-sale homes is expected to begin to decline in 2008. Economist Hank
Fishkind, president of Fishkind & Associates in Orlando, expects Florida to
grow by about 265,000 new residents and add 130,000 new jobs in 2008.
At roughly 2.2 people per household, that would create demand for
roughly 135,000 new homes, helping to soak up excess inventory in many
markets.

Meanwhile, the production of new homes in Florida is expected to remain
flat. Sean Snaith, director of the Institute for Economic Competitiveness
(IEC) at the University of Central Florida in Orlando, expects about
116,000 starts in 2008 compared with 117,000 home starts in 2007.
However, the decline will be much sharper in some markets, such as Lee
County (Naples), where Fishkind is projecting about 5,000 new home starts
compared with 30,000 in the peak year of 2005.

Across the country, National Association of Realtors(R) (NAR) Chief
Economist Lawrence Yun forecasts in NAR's latest outlook that housing
starts will fall to 1.09 million in 2008, from 1.36 million in 2007 and
1.80 million in 2006. "A cutback in housing construction is a positive sign
for the market," he said, "because it will help lower inventory and firm up
home prices."

The Florida Association of Realtors (FAR), the voice for real estate in
Florida, provides programs, services, continuing education, research and
legislative representation to its 150,000 members in 67
boards/associations. FAR's Media Center Web site is available at
http://media.floridarealtors.org.

Editor's note: This is the first in a series of five articles focusing
on the advantages Florida's residential real estate market currently offers
to buyers.

SOURCE Florida Association of Realtors

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When is a good time to buy Real Estate-Tampa, Fl

When is a good time to invest in Real Estate?

By: Rae Catanese, Realtor

Hyde Park Place-Condo

I was speaking with a friend of mine about the Real Estate Market in the Tampa Bay are, I wanted to give her the best advice in my opinion as a Real Estate Agent.

Through our website, we are able to track what people are searching for when they go online. Over the past couple months we've seen an increase in people wanting to know when the Real Estate Market is going to change, and the big question "when is the right time to buy"?

Right now sellers do not have their homes on the market unless they are in a situation where they really need to sell. At first, about a year and a half ago when our market started declining if sellers couldn't sell then they just decided to rent. Because of all the condo conversions in our area there were plenty of renters to go around. Now finding a renter who can cover the mortgage has become a struggle as well due to a surplus of rentals.

Most of the media and talk on the street says that the market won't rebound until late 2008 and maybe even 2009 in some areas.

These are the reasons I feel now is the BEST time to purchase.

1. If you can find a seller who purchased 4-5 years ago minimum chances are they have some equity in there home and can be more flexible with their price. They may have it on the market for 250,00 for instance but if they are in a situation that cannot be changed; such as divorce, relocation for a job, they need the money etc. they are going to be more likely to take a much lower price, let's say between 200-225K.

2. If the home is vacant that's even better! Now there's no income AND they want to sell. Sellers are very motivated NOW because they are hearing the same news as everyone else, and they know it may take another year to sell if they keep their price the same and aren't the lowest price in their neighborhood.

3. If you wait until people start hearing the market is rebounding then sellers will think they can hold out to get a better deal, stop dropping their prices and become less motivated. Or even worse, people who really don't have to sell as urgently will start putting their homes on the market creating even more inventory which is something our market does not need.

These are the trends that we as Real Estate Agents are seeing in our market. What buyers may not realize is that sellers who have had their home on the market for a year, don't want to wait or cannot afford to wait another year until things pick up.

Buyers who wait much longer are going to find that everyone who also has been waiting will now become their competition. Interest rates are the lowest they have been right now. When things start rebounding they could go back up again which is also something to keep in mind.

Benefits of using a Realtor
As Realtors we have access to how long a property has been on the market, the amount of price reductions they have had since they listed the property and if the home is vacant. This knowledge is critical in getting a good deal and taking advantage of the buyer's market that we are in.

If you are looking to purchase a home and have been on the fence, I would encourage people to take a look now and see what type of deals sellers are willing to make.

If you are thinking of buying a home anywhere in the Tampa Bay Area please feel free to contact us with any questions.

Rae Catanese, Realtor
Prudential Tropical Realty
813-784-7744

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How to make informed decisions when buying a home-Tampa, Fl

Gaylord: Know Your MarketNAR President

Richard Gaylord says consumers need to understand what’s going on in their own area. “There is no such thing as a national housing market – it doesn’t perform like the equities markets,” he says. “What’s really important for consumers is to make informed decisions based on individual needs, desires, and timelines in a given area.

Most people plan to stay in a home for 10 years, and for buyers with a long-term view, housing is an excellent investment.”Typical sellers purchased their home six years ago, with the median price in the third quarter of 2001 at $159,100.

Despite the dip in the national median price over the past year, the median increase in value for home sellers who bought six years ago is 38.8 percent. “Nearly every market is showing positive long-term gains, with a home equity accumulation of $61,700 over the past six years for a typical U.S. home owner,” Gaylord says.

Even in most of the places that are undergoing a large price decline, like Tampa, Florida, a long-term increases are quite respectable, he says. For example, the Sarasota area of Florida is showing a median rise in home value of $112,000 over the typical holding period, and ranks well above norm for overall gains.”

To find a Realtor in your area who can provide you with a detailed comparable market analysis contact us or visit http://www.tampabaydwellings.com/

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