Linda Flack & Associates

I'm visiting my daughter and her family in St. Louis and I noticed that this is a vibrant city.  Lots of industry and diversity keep the economy moving forward.  Cape Coral and Fort Myers are tied to the building industry and tourism.  The City and County can't get out of it's own way to intice industry into our area. This is how St. Louis sees what is happening.

A recent commentary by Dennis Kneale of CNBC dramatically ittustrates what we are experiencing is a simple market correction and a return to rationality. After all that is what "free markets do" While congress debates the merits and particulars of a $300 billion bailout of the housing market, the market is at work making its own corrections, as it has for centuries. This is why the housing crisis isn't a crisis after all.

There are 120 million homes in this country, one third of which are owned free and clear. So there is no crisis for those homeowners. Of the 80 million homes with mortgages, 50 percent of those were bougnt before 2000. Even with the recent fluctuations in home values, on average those homes are worth at least 30 percent more that they were when they were purchased. Yes, they may get a little less than if they had sold their home a year ago; but if they don't sell, they have lost nothing. So, no crisis for those homeowners either. 95 percent of all Americans with mortgages pay those mortgages on time, About 2 percent of American households are in foreclosure. For those 2 percent of families, there is a housig crisis. The crisis, however, is localized with states like California and Florida. There are more forclosures in California than in 40 other states combined.

The same horrible numbers of forclosures ring true for Florida.  Our values declined in some instances more that 50%.  Now the savy buyer should be buying everything in sight.  You can't build a home for this kind of money. I think within the next 9 months the inventory of foreclosures will have been mostly depleted and the market will start on its rise.  After all, Florida is still the Sunshine State with dolphins, pelicans and palm trees.  It doesn't get any better than that. We live in Paradise.

With interest rates so VERY LOW not to buy now will be a costly mistake if you wanted your piece of Paradise.

Everyone I talk to seems to have a more positive attitude about the real estate future.  Dr. Yun (NAR’s chief economist) spoke at Miami Board of Realtors International convention and reinterated that we are showing signs of recovery. 

His article in this months Realtor magazine continues to point toward growth.

 "First, the good news: Home sales have stabilized over the last seven months and are expected to increase measurably in the rest of 2008. And the subprime lending crisis is almost past; the balance of this year will be about cleaning up that mess." Dr. Lawrence Yun

He also talked about a gain in prices of 20% in markets like Ohio and up to 50% in hot markets like Miami.  Well, when I had the opportunity to speak with him privately (an honor) he indicated the same type of increase on the West Coast of Florida ie: Cape Coral, Fort Myers.

I wrote on a foreclosure home this weekend. The counter had 35 business cards lined up and it was only listed for 3 days.  Contracts are uploaded on line and the agent doesn’t know how many came in.  But, wow the buyers are out there.

Time is now to jump.  The market is heating up. The time to buy is NOW!  Call us 239-910-0345 for your list of forclosures and great deals.

There are other reasons for optimism, including the home buyer tax credit that’s passed both the House and the Senate. It would give buyers an incentive to get off the fence. I’m trying to find information on this for my next bog.

Last week I had the pleasure of attending the Miami Board International Convention.  I was delighted with the enthusiasm and attitude of the Board members and Realtors that I met. They were the ultimate professionals with an eye to the future. I connected with international agents for Russia, England, France Brazil, Costa Rica.

They are excited about our market and what they can buy for the exchange rate is so favorable for them.

Of course it is a large metropolitan area with many more members than we have in Cape Coral and Fort Myers, but they have services for their agents that I am excited about.  Therefore I've joined their board.  There are some exciting things that will soon appear on my web pages.

One of the speakers was Dr Yun (the Chief Economist for National Association of Realtors)  He had only good things to say about what lies ahead in the future.  I had an opportunity to speak with him privately (what an honor) and he agrees that all of South Florida is in a recovery stage. Baring any disasters, we will continue to sell like crazy. 

 Dr. Yun told the story of Katie Couric's office calling him for comments on how awful things are.  He responded in a positive manner and said they put him on the cutting room floor.  Negative news sells. It seems the news wants to make the news instead of reporting it.

There are a ton of Foreclosures still to come.

The on and off again market.  Wow, just when you thought we were out of the woods we are back in deep weeds.  Just as we think we are stuck in the mud mire, it opens up again.  I’m getting a nervous tick. Off again on again. 

Buy at the bottom.  That is the basics of  investing; whether you’re a first time buyer, second home buyer or investor.  The deals I’ve found are amazing.  There is a ton of foreclosures still coming on the market and will for the near future.  Once they are gone, they are gone. There is really no rhyme or reason for some of the pricing on these bank foreclosures so let us educate you as what to watch for.

Tips for getting the deal.

1. Be ready to right the deal immediately.
2. Have your prequalification letter with a local lender ready.
3. If it is truly a deal, don’t try to ask for even less.  Others will recognize the deal and they will be writing too. Make it quick and make it clean.
4. Find a realtor finding you your deal. We have programs that search with your parameters and instantly email you with a hot one for you.  Call us and we will set you up so you don’t miss one.

Denny Grimes wrote a wonderful article in todays News-Press.  He explains short sales and why they are so challenging.

What's the solution? I have a few ideas that I would like to share with the lenders. I called several If something sounds too good to be true, it usually is. Such is the case with buying, selling or working with a short sale. Sellers have hopes of getting the equivalent of a "mortgage mulligan" as their lender erases tens or hundreds of thousands of dollars of their mortgage debt. Buyers expect to get the steal of the century and agents feel like lottery winners because they believe short sales are easier to sell than tickets to see Hannah Montana. However, these grand expectations are rarely fulfilled.

I recently had the inspection for my 1972 Cape Coral home completed.  I failed.  The good news is there is help and a fund in Florida to mostly pay for shutters for my windows.  What a great opportunity. By getting the shutters my insurance will go down. This is a win, win.

The potential savings is good in Florida, where homeowners can earn credits for strengthening their dwellings against hurricanes, through the My Safe Florida Home program. (Go to mysafefloridahome.com or 1-866-513-6734.) The program offers wind inspections by qualified hurricane mitigation specialists — free for qualified homeowners. Any suggested improvements must be completed by a program-approved contractor and state law requires insurers to extend credits to homeowners who take recommended steps to mitigate wind damage.

Some people have had some significant savings based on credits, even those who don’t qualify for the free inspection,” said John Pollack, president of the Fort Myers independent insurance agency, Oswald Trippe and Co. “Obviously, the more current you’ve bought your home to resist hurricane winds, an insurance company is going to look at that home as a better risk and adjust your premium accordingly.”

Those who have recently made home improvements or upgrades to their property may benefit by asking whether they’re eligible for credits. A renovated house credit, for example, is available through Chubb for homes that have been renovated in the last 10 years. Those eligible to take advantage of that credit may shave off as much as 10 percent from their premium if the renovation occurred in the last year.