Gerry Suarez Jr- Your FHA Loan Pro!

As we look back at 2008 and it's last month, real estate sales seemed to take a very predictable path. Once again there were about 200 single family homes sold (202 to be precise). Once again it was the $100- $140k price range that garnered most of the sales (57 units or 28.2%). The local market seems to be reaching an apparent equilibrium.

More homes were sold in the $120-$140k range than any other month in 2008 (39 homes) but it appears these sales are freeing up some move up buyers because December also represented one of the highest months for sales in the $200-$250k range since May '08 (31 homes). These trends are interesting because they clearly show the market is regaining balance. Does this mean we are at the bottom of declining values? It would certainly indicate we are getting close.

The type of financing also says volumes about the state of the market. Once again cash buyers outstripped all other buyers in Lake County representing 43% of all homes sold. That number is the highest percentage I have been able to find on record for one month! That clearly shows investors are strongly represented in the market now and personally I believe it's the smart money picking up the best deals. Conventional financing remains the program of choice for those borrowing but it should be noted the USDA Rural Development 100% financing program is considered a conventional loan, and its use has been skyrocketing. Also trends show the use of government loans such as FHA and VA to be growing substantially. Indeed FHA and VA represented 17.5% of all deals and December was the second highest month in 2008.

So what do all these stats mean? If you are a seller you have the best chance of finding a buyer if you are in the $140k or less price range and have a home that qualifies for government financing. Thankfully all the homes moving in that low range are freeing up a few more buyers for the $200-$240k range but I suggest those sellers also be prepared to accept government financing.

If you are a buyer it means be prepared to see multiple offers on good deals in that $140k or less price range. Some of those offers (on the best deals) may be cash so have your financing in line and pre-approval letters in hand to strengthen your negotiations.

In closing we seem to be settling into a routine market of about 200 sales per month. Single family home inventory of 4762 is the lowest level of inventory we have seen in all of 2008. Although it still represents a 23.6 month supply, don't be complacent about buying if you are looking for a home. That inventory number was as high as 5226 in Feb., 5035 in Oct. and 4951 in Nov. so the trend is clearly downward.

And of course, if you have any questions regarding financing of any kind, call your PURCHASE mortgage expert who won't be too busy doing refinances to return your call! I can be reached anytime via cell phone, email or facebook and you can also follow me on twitter.

Gerry Suarez, Jr.

Your FHA Loan Pro!

As we look back at 2008 and it's last month, real estate sales seemed to take a very predictable path. Once again there were about 200 single family homes sold (202 to be precise). Once again it was the $100- $140k price range that garnered most of the sales (57 units or 28.2%). The local market seems to be reaching an apparent equilibrium.

More homes were sold in the $120-$140k range than any other month in 2008 (39 homes) but it appears these sales are freeing up some move up buyers because December also represented one of the highest months for sales in the $200-$250k range since May '08 (31 homes). These trends are interesting because they clearly show the market is regaining balance. Does this mean we are at the bottom of declining values? It would certainly indicate we are getting close.

The type of financing also says volumes about the state of the market. Once again cash buyers outstripped all other buyers in Lake County representing 43% of all homes sold. That number is the highest percentage I have been able to find on record for one month! That clearly shows investors are strongly represented in the market now and personally I believe it's the smart money picking up the best deals. Conventional financing remains the program of choice for those borrowing but it should be noted the USDA Rural Development 100% financing program is considered a conventional loan, and its use has been skyrocketing. Also trends show the use of government loans such as FHA and VA to be growing substantially. Indeed FHA and VA represented 17.5% of all deals and December was the second highest month in 2008.

So what do all these stats mean? If you are a seller you have the best chance of finding a buyer if you are in the $140k or less price range and have a home that qualifies for government financing. Thankfully all the homes moving in that low range are freeing up a few more buyers for the $200-$240k range but I suggest those sellers also be prepared to accept government financing.

If you are a buyer it means be prepared to see multiple offers on good deals in that $140k or less price range. Some of those offers (on the best deals) may be cash so have your financing in line and pre-approval letters in hand to strengthen your negotiations.

In closing we seem to be settling into a routine market of about 200 sales per month. Single family home inventory of 4762 is the lowest level of inventory we have seen in all of 2008. Although it still represents a 23.6 month supply, don't be complacent about buying if you are looking for a home. That inventory number was as high as 5226 in Feb., 5035 in Oct. and 4951 in Nov. so the trend is clearly downward.

And of course, if you have any questions regarding financing of any kind, call your PURCHASE mortgage expert who won't be too busy doing refinances to return your call! I can be reached anytime via cell phone, email or facebook and you can also follow me on twitter.

Gerry Suarez, Jr.

Your FHA Loan Pro!

We have all been anticipating changes in the income guidelines for RD loans to be increased, however today the USDA announced it will not be making those changes until at least March 20, 2009. The changes would allow families from 1 to 4 members to qualify at the 4 person income limit ($70,750 in most areas of Florida), and families from 5-8 members could qualify at the 8 person income limit ($93, 400 respectively).

This delay comes just as we were expecting the change to take place so it has the potential to impact the plans of many buyers. Although the March 20 date has been mentioned it is also not certain to be implemented at that time so be careful about committing deals to these guidelines.

Forewarned is forearmed, if you have buyers that are being impacted by this delay make sure you are dealing with an experienced RD lender that is familiar with the various income deductions that are currently available. If you have any questions, you know who to ask!

Gerry Suarez, Jr.

Your FHA Loan Pro!

This real estate market has become a unique opportunity for first time buyers, who aren't saddled with trying to sell a home, to take advantage of the long list of reasons to buy.

As a first time buyer in Eustis now you can:

•· Take advantage of some of the best interest rates in history!

•· Buy homes in our market at prices that haven't been seen since 2002 or longer!

•· Move in with less money than you can rent, often with zero cash!

•· Get $7,500 back on this year's taxes to do with as you please!

•· Continue to get some of the most liberal common sense underwriting from FHA, VA and USDA loans!

Never before has this perfect storm existed for first time buyers, but the truth is we know it won't last forever. Interest rates may stay low but who knows how long. Prices appear to be stabilizing in many of the more desirable markets. Most importantly the $7,500 tax credit is only if take possession of your home by July 1, 2009. That offer may be extended but right now there is no indication it will be!

Do you want to take the chance, or do you want to strike while the iron is hot? I am happy to be improving the lives of so many first time buyers in these tumultuous times. Call us at Thomas Mortgage now and get qualified so you too can own your home!

Gerry Suarez, Jr.

Your FHA Loan Pro!

This real estate market has become a unique opportunity for first time buyers, who aren't saddled with trying to sell a home, to take advantage of the long list of reasons to buy.

As a first time buyer in Mount Dora, FL now you can:

•· Take advantage of some of the best interest rates in history!

•· Buy homes in our market at prices that haven't been seen since 2002 or longer!

•· Move in with less money than you can rent, often with zero cash!

•· Get $7,500 back on this year's taxes to do with as you please!

•· Continue to get some of the most liberal common sense underwriting from FHA, VA and USDA loans!

Never before has this perfect storm existed for first time buyers, but the truth is we know it won't last forever. Interest rates may stay low but who knows how long. Prices appear to be stabilizing in many of the more desirable markets. Most importantly the $7,500 tax credit is only if take possession of your home by July 1, 2009. That offer may be extended but right now there is no indication it will be!

Do you want to take the chance, or do you want to strike while the iron is hot? I am happy to be improving the lives of so many first time buyers in these tumultuous times. Call us at Thomas Mortgage now and get qualified so you too can own your home!

Gerry Suarez, Jr.

Your FHA Loan Pro!