Real Estate Information

Pat’s Mid-Year Residential Report for North Brevard

Everywhere I go, people are always asking me “Pat, How’s the real estate market doing around here now?”  I decided it’s time for a real report vs. my humble opinion, but of course I will share some of that with you as well!  These stats are gathered from the Brevard MLS system. areas 101-210.  Private & builder non-mls sales are.excluded.

In 2008: 1^st 6 months: 411 closings with average of 125 Days on Market

High $899.000.         Low $32,000.         Average: $150,000    Median: $135,000.

In 2009: 1^st 6 months: 533 closings with  average 119 Days on Market

High: $745,000.        Low:$10,500.         Average: $108,000    Median: $92,000.

So what everyone is saying IS partly right. It is taking longer to sell… the ones that closed and the final prices are even lower. To put this into perspective, I did the numbers by price range as well for the same 6 months.

Under $100K      $100K>     $150K>     200K>     300K>      $400K>     $500K>

2008:     109         142           80             56            14              3                 3

2009:     260         155           56             38              9              1                 1

Inventory today is 902 residences priced from $9,900. to $2.5million, average 193 DOM  

Actually we have 5 Million $+ listings, all but 1 were on in 2008!

Important in the 2009 numbers is that there were less than 50 closed sales priced at $150,000. or more, about a 50% drop! And those closed under $100,000 were more than doubled!  (2.38 times).

Here’s what that could mean for you! 

If you are able to buy, especially if you qualify for the Tax Incentives, you really need to get serious about looking for the right home while the selection is good.

If you are considering selling vs leasing, weigh your options carefully. It may take longer than you are thinking for market recovery.

If you are an Investor, even a first timer, the choices could be outstanding. Figure out your financing options before you make the offer. Cash talks, particularly in condos and lender owned properties. And be prepared to be a bit more liberal with your new tenant prospects because their credit may be bruised.

If you really want or have to sell now, for whatever reason, remember that curb appeal is still important, but pricing right is absolutely King! Be sure to use internet price points to your advantage when you enter the market. Be prepared to help the first time buyers with closing costs since they are prime buyers now.

If you or a family member/friend is a Snowbird, empty nester, or retiring soon, now could be an excellent time to find the next nest before the best ones get picked over.

Regardless of all of the above, there is an important fact I learned back in 1973 when I first started in real estate. “UNDER ALL IS THE LAND.”  Buying, selling or leasing, the one thing you cannot change is a property’s location. That’s in Gods hands. You are better off with a smaller place in a nicer area than the best place in a less desirable one. The only thing that “fixes” a poor location is dropped price and owner terms.

If there is anything I’ve said that you would like to discuss, please contact me. I am always pleased to be able to share my knowledge and experiences as well to help you understand the market or explore your next move.  

 Pat Argo, CRS  321-267-5025

     This morning as I sat on my patio early with my coffee, enjoying the breezes, the birds, bees and butterflies and waiting to see if the Shuttle would be able to land here at home, I was thnking about how lucky I am to live in this country and community, to own my own home free and clear and to be able to take this time to reflect.

     I am grateful for all my many blessings. My life has been charmed in so many ways.  There has been a lot of drama ( Some people suggest I should write a book!), as well as adventures, and happy endings

     I am especially grateful for my wonderful late husband Dick. Growing up on an Illinois farm, he joined the Marines after college and proudly served his country in Japan and Korea. He worked at the Space Center and downrange for RCA/GE for 32 years as the Space Center developed, and spending his last 3 years before retirement on a classified project out of Virginia Beach with GE aboard the SURTASS, which is mentioned in the book "The Hunt for Red October". Once retired we planned to travel for fun, but his hardest battles were just beginning! Shingles, RA, then Esophageal Cancer with drastic treatments at Shands, beating the 92% fatality rate!  Later the final 4 year battle with a deadly blood cancer that took him from me/us 18 months ago.

     He bravely helped me raise my 4 little girls into beautiful, strong women without complaint. His strength, intelligence and integrity in all things as well as his friendly smile, twinkling blue eyes and acceptance of everyone have left their mark on us all.

     Growing up in the early 40's in Gainesville myself, I remember my uncles serving in the military. Many of the guys at our restaurant were GI's.  My oldest grandson, Luke. is in Italy now with the Air Force. My 2 neices, Sunshine and Lucy are also military trained. I am grateful for them, for all those who serve and protect us today as well as through out our history.

     I watched the PBS tribute special tonight as I always do with pride in my country.  Thanks to God and all of them for the peace in my life and heart.

     Weather can sure be fickle, especially here on the Space Coast! After record extended dry periods this winter and spring, many folks have been praying fervantly for rain!  There were terrible fires threatening the local areas the past 4 weeks. The Federal FEMA head was visiting this week to address those problems, when all the prayers seemed to be suddenly answered... and then some!

     NOW the east coast is suffering from passive flooding the past few days. Parts of Volusia and Daytona Beach have received over 24 inches in 3 days. North Brevard has received over 8 inches. They are now declaring historic flooding for non-tropical storms. People in the beach communities are navigating in boats and rafts as streets are all flooded. Over 1000 homes are flooded in Volusia. Yet even living on the coast, most property owners do not have flood insurance. A State of Emergency has been declared.

     I was invited to attend an early gathering of real estate related business people for a special meeting at the Titusville Chamber of Commerce. Along with other Realtors, there were people from mortgage, title, development and other business firms. We were discussing the local real estate market and how we felt buyers and sellers were feeling about all that was going on.

     We had an exchange of some lively and informative commentary. I was impressed with Suzanne Kosmos insightful comments and questions.  When it was all over, I was asked to be interviewed by the reporter for Florida Today. Not known for being bashful, I of course answered her questions frankly and to the best of my knowledge. 

     Wow, was I surprised when I started getting calls early the next morning from people who had seen the article at the top of the front Business Page! Even my adult kids were impressed. I never thought about the publicity when I started out that day! Take a look for yourself! 

     It is in all the news. It was mentioned on almost all the weekend TV programs, even a lengthy prayer on Hour of Power Sunday morning.. There is quite a lot of talk about the Presidential Inaugeration happening on Tuesday. Have you decided if you are going to be one of those watching this history making telecast yet? I guess I am assuming that if you are reading this, you did not make travel arrangements...

     I watched President George Bush as he gave his final address this week. You know the man really had a lot on his shoulders the past eight years. Things like 9/11 and the oil crisis and the financial ruin wrought by many who bought and or sold real estate and investments for the wrong reasons. I saw people buying and now selling from FEAR. Not a good word!  I saw them doing so from GREED. Even worse!  It is time for a shift.

     Many things have changed. It is not just politics. A nd I believe a lot of things needed changing! We will see how it all works out. I hope it will go smoothly regardless of how you feel about the political parties.  Pay attention and take responsibility for your own part in what happens and what we leave for those who will follow. Let's pull together and offer a helping hand when we can. Let's try to make it a Stress Less 2009.

The Housing and Economic Recovery Act of 2008 was just signed by President Bush with some amazing benefits for first time homebuyers. Call everyone you know who wants to buy their first home (or who hasn't owned one in three years), this is too good to miss - it's a $7,500 tax CREDIT (not deduction but a credit).

If you have not owned a home in three years, you qualify as a first time home buyer. If you buy a home after April 9, 2008 and before July 1, 2009, you qualify for this credit. Call your friends who just bought a home since April 9th and tell them they may take $7,500 off their tax bill if they qualify. It has to be your principal residence, so rentals do not count.

The tax credit is 10% of the cost of the home, up to a maximum of $7,500. This is not an additional deduction that lowers the amount of income to be taxed, it is a tax credit. In other words, you take $7,500 off your tax bill. But there is a catch; the credit you receive now is actually an interest-free loan that must be repaid.

The loan has no interest, and will be paid back over 15 years. You get the credit on your 2008 taxes, but you start paying it back on your 2010 taxes that are due in 2011, so you get at least two years without a payment. You pay back 6.67% of the credit each year, so for a $7,500 credit the payment is $502.50 per year. If you stay put for 15 years, you pay it off with no interest.

What happens if you sell the house? You pay the balance back at the closing. So, you get $7,500 now, and pay the rest of it back if you make money on the sale of your house. What happens if you do not make enough money when you sell your house? They forgive the rest of the debt.

Other restrictions stipulate that you have to buy your first house in three years before July 1, 2009, not have super high income, not use bond financing and buy anywhere in the US.

If you'd like to learn more about this program, please call me!

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates go up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.