Thursday, January 13, 2011
Friday, January 7, 2011
Cape housing market thriving, poised for growth
This past year was fantastic for the Cape Coral real estate market.
Like 2009, it was a record-setting year in many regards. Cape Coral continued to lead the nation in foreclosures drawing continued national and international media attention.
Cape Coral also led the state in highest number of property sales.
Here is a brief overview of Cape's 2010 home sales.
Strong numbers
There were just under 6,000 single-family homes sold by a Realtor. That makes the number of homes sold in 2010 greater than any single year during the real estate boom (2003-06) and exceeded in history by only the sales in 2009.
Most under $200,000
Of the homes sold in 2010, 86 percent were sold for less than $200,000, the same percentage as 2009. In 2010, eight homes sold for more than $1 million, compared to seven in 2009.
Fewer distressed sales
Another interesting and exciting trend affecting home sales this year more than any other has been the decline in the number of distressed home sales. Foreclosures and pre-foreclosures (short sales) made up 73 percent of the total homes sold in 2009.
In 2010, distressed home sales accounted for 62 percent of total sales. Today's Cape Coral home inventory is made up of only 35 percent of short sales and foreclosures combined.
Decreasing inventory
In January 2007, Cape Coral had 6,073 single-family homes on the market. Today, we have 2,387 homes.
We've enjoyed a steady decline that if sustained will lead to the return of property value appreciation. Media attention continues to attract investors and future retirees to our market. Buyers want what we are blessed to enjoy each and every day at soon to be gone bargain basement prices.
Poised for good season
The new year is off to a great start.
Sales continue to be aggressive, inventory is low, interest rates are historically low and the signs are very favorable for this winter selling season.
Affordable home prices that remain below replacement cost make this an excellent time to buy.
Like 2009, it was a record-setting year in many regards. Cape Coral continued to lead the nation in foreclosures drawing continued national and international media attention.
Cape Coral also led the state in highest number of property sales.
Here is a brief overview of Cape's 2010 home sales.
Strong numbers
There were just under 6,000 single-family homes sold by a Realtor. That makes the number of homes sold in 2010 greater than any single year during the real estate boom (2003-06) and exceeded in history by only the sales in 2009.
Most under $200,000
Of the homes sold in 2010, 86 percent were sold for less than $200,000, the same percentage as 2009. In 2010, eight homes sold for more than $1 million, compared to seven in 2009.
Fewer distressed sales
Another interesting and exciting trend affecting home sales this year more than any other has been the decline in the number of distressed home sales. Foreclosures and pre-foreclosures (short sales) made up 73 percent of the total homes sold in 2009.
In 2010, distressed home sales accounted for 62 percent of total sales. Today's Cape Coral home inventory is made up of only 35 percent of short sales and foreclosures combined.
Decreasing inventory
In January 2007, Cape Coral had 6,073 single-family homes on the market. Today, we have 2,387 homes.
We've enjoyed a steady decline that if sustained will lead to the return of property value appreciation. Media attention continues to attract investors and future retirees to our market. Buyers want what we are blessed to enjoy each and every day at soon to be gone bargain basement prices.
Poised for good season
The new year is off to a great start.
Sales continue to be aggressive, inventory is low, interest rates are historically low and the signs are very favorable for this winter selling season.
Affordable home prices that remain below replacement cost make this an excellent time to buy.
Thursday, January 6, 2011
'Secret' way to lower mortgage payments
NEW YORK – Jan. 6, 2011 – Homeowners can trim their monthly mortgage payments by “recasting” or “re-amortizing” their loan without having to refinance and face hefty closing cost fees, experts say.When recasting, the borrower pays off a lump sum of the loan’s principal and then resets monthly payments at the loan’s original interest rate and terms.Here’s one scenario: $230,449 is left on a 30-year fixed rate loan for a $300,000 mortgage taken out at 7.93 percent in 1995. The borrower pays $20,000 toward the principal and asks the lender to reamortize their payments over the remaining 15 years of the loan. The monthly payment then drops by $52, from $2,187 to $2,135 per month. ($100,000 toward the lump sum would save $730 a month.)Since borrowers are not asking for a new loan, they will not have to pay closing costs or submit to another credit check. (Note: “Recasting” is often used in the mortgage industry to refer to interest rate resets on adjustable-rate mortgages. In this case, the interest rate and loan term remain the same. )“People don’t really know about it, but it’s become more common recently,” Alan Rosenbaum, founder and chief executive of the Guardhill Financial Corporation in New York, said about recasting.Borrowers who just make extra payments toward the loan’s principal but do not ask the bank to recast the loan will keep monthly payments the same and just shorten the overall time it takes to pay off the loan. Recasting, on the other hand, reduces the principal but then, in turn, lowers monthly payments and interest over the life of the loan.Some recent buyers may find recasting a good option, particularly when it makes little financial sense to refinance so soon after purchasing a home but are expecting a large sum of money. For example, buyers who expect to receive a tax refund or other substantial money after closing on their property, such as proceeds from the sale of another property or stocks, may want to look into recasting to lower monthly payments, says Edward Ades, the owner of Universal Mortgage in Brooklyn, N.Y.Source: “A Little-Known Strategy for Cutting Mortgage Payments,” New York Times (Dec. 30, 2010)© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
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