Janet English Realtor Mobile Alabama's Eastern Shore Suburbs

May, 2010, home sales on the Eastern Shore declined 16% from April, as the market took a breather after the rush to the finish of the home buyer tax credit.

Between Spanish Fort and Point Clear, 90 homes closed, compared with 108 sales in April. Pending sales sagged too, with 146 under contract in the second week of May, compared to 186 a month ago.

Seems the summer doldrums have set in early, with slow and variable buyer interest.

Unfortunately for existing home sellers, short sales, foreclosures and new construction made up almost half of the sales in this suburban market of the Mobile, Alabama, metro. New homes currently represent 11 percent of inventory; short sales and foreclosures, about 9 percent.

But brighter days could be ahead for existing home sellers. Prior to the Great Recession, new construction made up 25 percent to 35 percent of the home market. With the new home inventory shrinking for now, buyers may have to give existing homes more serious consideration.

Here are the stats for the Eastern Shore:
Total houses for sale: 1,243
Spanish Fort: 136
Daphne: 461
Fairhope: 646

Pending sales
Total: 146
Spanish Fort: 23

Daphne: 61
Fairhope: 62

Closed sales for May 2010
Total: 90
Average sales price: $220,403, which is up from April's $204,151.

Median sales price: $176,950, which is down from April's $186,500.

List to sale percentage: 95.16%, down slightly from 95.25% in April

Spanish Fort: 14
Daphne: 43
Fairhope: 33

*Note: The Baldwin Board of Realtors has combined the market area of Lake Forest into Daphne.

(Data from the Baldwin County Multiple Listing Service)

May, 2010, home sales on the Eastern Shore declined 16% from April, as the market took a breather after the rush to the finish of the home buyer tax credit.

Between Spanish Fort and Point Clear, 90 homes closed, compared with 108 sales in April. Pending sales sagged too, with 146 under contract in the second week of May, compared to 186 a month ago.

Seems the summer doldrums have set in early, with slow and variable buyer interest.

Unfortunately for existing home sellers, short sales, foreclosures and new construction made up almost half of the sales in this suburban market of the Mobile, Alabama, metro. New homes currently represent 11 percent of inventory; short sales and foreclosures, about 9 percent.

But brighter days could be ahead for existing home sellers. Prior to the Great Recession, new construction made up 25 percent to 35 percent of the home market. With the new home inventory shrinking for now, buyers may have to give existing homes more serious consideration.

Here are the stats for the Eastern Shore:
Total houses for sale: 1,243
Spanish Fort: 1136
Daphne: 461
Fairhope: 646

Pending sales
Total: 146
Spanish Fort: 23

Daphne: 61
Fairhope: 62

Closed sales for May 2010
Total: 90
Average sales price: $220,403, which is up from April's $204,151.

Median sales price: $176,950, which is down from April's $186,500.

List to sale percentage: 95.16%, down slightly from 95.25% in April

Spanish Fort: 14
Daphne: 43
Fairhope: 33

*Note: The Baldwin Board of Realtors has combined the market area of Lake Forest into Daphne.

(Data from the Baldwin County Multiple Listing Service)

Fannie Mae announced Thursday new guidelines that will make it harder to buy homes in foreclosure that are still within the redemption period required in some states.

Generally, the right of redemption allows sellers whose homes have gone into foreclosure a one-year period to redeem (or buy back) their homes. For example, in my state of Alabama, during this redemption period, a buyer of a foreclosure receives a Special Warranty Deed, citing the redemption period. And this is where Fannie Mae has a problem.

Here's the gist of Announcement SEL-2010-07 May 27, 2010 Selling Guide Updates

"Title Defect - Mortgage Loans Secured by Properties Subject to Unexpired Redemption Period

Certain state laws provide for a "redemption period" after a foreclosure or tax sale has occurred, during which time the prior owner may reclaim the property upon payment of all amounts owed. Unexpired redemption periods create an unacceptable title defect on the subject property, and do not conform to the existing policy that requires the property to have "good and marketable" title. As such, Fannie Mae is clarifying the Selling Guide to state that properties with unexpired redemption periods have unacceptable title defects. Therefore, these mortgage loans are not eligible for delivery to Fannie Mae until after the expiration of the redemption period. The purchase of additional insurance, a redemption bond or similar coverage during the redemption period does not remedy the title defect and the mortgage loan remains ineligible for delivery to Fannie Mae.

This topic was also updated to remove the paragraph pertaining to FHA and VA mortgage loans. Lenders must follow the applicable federal agency's requirements pertaining to allowable title exceptions.

Updated Selling Guide Topic

B7-2-05, Title Exceptions and Defects (Title Defect - Mortgage Loans Secured by Properties with Unexpired Redemption Periods)

Effective Dates This clarification is effective immediately

This clarification is effective immediately."

Regrettably, this announcement was made with little warning and it's effective immediately, which will undoubtedly derail some foreclosure purchases in process.

For more on this, here's the the May 27, 2010 announcement

Closed sales and home contracts posted strong numbers in April, as the home buyer tax credit expired at the end of that month.

On the Eastern shore of Mobile, Ala., 108 homes closed in April, up from 80 units in March. And as of May 12, another 186 homes were under contract, up from 173 in March.

For the third consecutive month, the list-to-sale percentage has stayed near 95%, which may be a sign this market, encompassing Fairhope, Daphne and Spanish Fort, has found its bottom.

The question on everyone's mind: Does this have staying power?

Stay tuned, is all I can say.

Here are the stats for the Eastern Shore:
Total houses for sale: 1,250, including 80 short sales or foreclosures.
Spanish Fort: 132
Daphne: 362
Fairhope: 638
Lake Forest: 118

Pending sales
Total: 186
Spanish Fort: 29

Daphne: 65
Fairhope: 68
Lake Forest: 24


Closed sales for April 2010
Total: 108 (22 short sales or foreclosures)
Average sales price: $204,151, down from $240,787 in March and $240,136 in February.

Median sales price: $186,500, down from $206,750 in March but up from 179,850 in February.

List to sale percentage: 95.25%, up from 94.84% in March but down from 95.44% in February

Spanish Fort: 18
Daphne: 35
Fairhope: 40
Lake Forest: 15

(Data from the Baldwin County Multiple Listing Service)

SPANISH FORT (AL): By Friday, my real estate company had already reported two lost sales as a result of the giant, menancing oil spill in the Gulf of Mexico.

Agents based in Baldwin County's pristine beach markets of Gulf Shores and Orange Beach were also reporting lost sales, as condo buyers pulled the plug on prospective purchases that would immediately be turned into rental properties.

Baldwin and Mobile counties are the two "toes" of Alabama that dip into the Gulf of Mexico. Separating the counties is Mobile Bay, which is fed by five rivers. The river delta area contains more than 250,000 acres of waterways, woods and wetlands, according to the 5 Rivers Delta Resource Center.

Below the delta are the Baldwin County suburban enclaves of Spanish Fort, Daphne and Fairhope, all with water access. Across the bay, is Mobile County with its bucolic waterways. And south of there you get to the beaches and barrier islands of Dauphin Island, Gulf Shores, Fort Morgan and Orange Beach, as well as the fishing village of Bay La Batre.

On Friday, my broker reported that she had lost a sale when her buyer -- whose source of income was his seafood business -- backed out of his deal. A fellow agent also lost a sale on her listing when the buyer became concerned he wouldn't be able to rent his condo if the beaches were soaked in oil. That buyer's agent said this was one of three sales he had lost before noon on Friday.

Saturday, the Mobile Press-Register (where my husband is the managing editor) reported 10 class-action lawsuits had been filed regarding loss of income. Among the group were several real estate and property rental agencies.