Mary Kaye Coriano

I am a Realtor in Southwest Florida. I believe that this country needs to focus its attention at the root cause of the problem...the housing market. So with the backing of the federal government, is it not possible for banks to reduce interest rates across the board for a person's primary residence to say 4.5% and have it amortized over say 40 or 50 years? Might not this give the average homeowner the needed break and keep them in their homes. Might not the homeowner then have some financial relief and begin to put that money back into the economy? Might not they go out to a dinner, a movie, or purchase new appliances, do some home repair or purchase a car? Might not that lessen unemployment, create some new jobs and in a small way spur the economy? Might not this help to stabilize the housing market, lessen foreclosures and lower inventory?

I do a lot of BPO's for banks and have been listing foreclosures. In doing this process I am seeing homes being sold at a foreclosed price of about .50 on the dollar. Homes that once sold for $800,000 are being sold in foreclosure at $418,000. I cannot help but become confused over all the taxpayers dollars that we collectively are spending on TARP, money being given to banks and other various financial institutions as well as the r, with little or no accountability. I have seen business pick-up over the last few weeks thanks in part to the drop in the interest rates. But I cannot help but question why some of the monies that the banks received is not being used to help the homeowners. If the banks are willing to take .50 on the dollar in a foreclosure sale, why do they not pass this onto the homeowner thus keeping the homeowner in their home. My assumption, is the reason the banks will not re-negotiate the loan with the homeowner is because it benefits the bank to allow it to go into foreclosure as then they can write off the debt and of course it becomes a write off.

So in essense out tax dollars are being used to bail out these financial institutions with nothing in return. What is going on in this Country?

Where's the Bail Out for Homeowners

Now I am not an economist. But I cannot help but think there might be some validity to starting the Bail-Out with homeowners instead of the huge financial institutions, corporations and politicians who helped get us into this mess...all because of unadulterated greed. Now I am in my fifties and my husband is close to seventy. We have been responsible adults and citizens throughout our lives. We have worked since we were fifteen and possess a strong work ethic. Probably like most of America.



Did we live above our means? No. I am not what you would call a spend thrift. We used our money to raise and educate five children. We planned for our retirement years and lost about 25- 35% in the stock market. Probably like most of middle-class America.

I am in the real estate profession. When the bottom fell out my salary has decreased by more than two-thirds. Needless to say, my husband took a job with an airline to help increase his income which was a pension and social security, I returned to my former profession of health care, continue to work in real estate and took a third job as a customer service representative to help bring in extra income. I am working about 65 hours per week. And, no I do not mind.



However, I was appalled when the Big Three auto makers, who flew into Washington in their corporate jets (and I understand their wives have access to these jets as well) , to ask for money...our money! Their CEO"s have a salary in the millions, they failed to heed the environmental concerns and continued to manufacture Hummers and SUV's, have millions set aside for bonuses and dare to expect the US taxpayers to bail them out. Now I know that many people think that if we do not help them it will further collapse our economy and the unemployment rate will increase. And that definitely poses a problem.



However, there has been no bail out for the average American. Last week Freddie Mac and Fannie Mae put a stop on foreclosures for the holiday season, I believe until January 9th. What they need to do is give the banks an ultimatum! Start helping out the homeowners or return the money. After all, isn't it our taxpayers dollars paying for this bail-out. And what are we getting in return...Nothing.



In my way of thinking, if the banks would assist the homeowners in renegotiating their mortgages by reducing their interest rates and/or have the mortgages amortized over 40 or 50 years this could have a tremendous impact on the fiscal well-being of this country. Maybe I am naive, but if my mortgage was reduced a bit....I'd spend a bit more, the real estate distressed sales would begin to slow down and eventually stop, the real estate inventory would begin to fall, and this might help the home prices from bottoming even further. Most of the homeowners in this area are upside-down. Homes that sold for over 1 million dollars are now being offered at a foreclosure price of $535,000! So, most of us are losing their equity and are not even able to refinance when the bank appraiser brings us the foreclosed on comparable sales.

So in my opinion the first target for the bail out should be the homeowners! If there was some relief in that area, might not people begin to put more money into the economy. Who in their right mind would be purchasing a new car, buying a new TV, spending money on the holidays, going out to dinner, when they are worried about making a mortgage payment. Not many I believe. We need to make some noise...all of the middle class collectively. . Write our Congress men ans Senators and tell them enough is enough!

Sales increases indicates a healthy turn for real estate in Naples and Bonita Springs. The months of February, March, April and May all showed increases in terms of number of pending sales reported to the MLS system. Pending sales for the four months were up over 20% over 2007, with 3052 pending sales in 2008 compared to 2533 for the same four months last year. May had the highest gain at 40% with 749 sales compared to 532 for the same period last year.

Throughout the month of May, our office has been busy. Contracts are being written. Business is beginning to feel a bit normal again. Yeah!!!!

We keep saying to the buyers...Now is the time to Buy. In the Naples and Bonita Springs area pending sales have reached their highest since August of 2005. Pending sales in Naples and Bonita Springs showed 853 units in the month of April, compared to 652 a year ago. That is a 30% increase. Yeah!!!! We feel the bottom has come and is gone.... As we show propery we notice how many of the best buys are gone...and those left are getting scapped up rather quickly. With the current flood of new buyers coupled with sellers becoming more realistic about pricing, the amount of inventory continues to drop.

Though the national news about the real estate market continues to be one of doom and gloom...We need to remember that real estate is local in nature and overall the news is good here in Southwest Florida.

Greetings from Southwest Florida! The question everyone keeps asking us is "Do you think we've hit the bottom?" No one knows for sure the answer to that question, and we probably won't have an answer until the housing market is on it's way back up.

One indicator for us realtors that the market is starting to recover is when builders begin to increase prices. Stock Development and Centex have done just that as of April 1st. The Bonita Bay Group had double the sales in four of its communities compared to same time last year. Developers are saying people this year are very, very positive and the rediness of buyers is better. Accordingly, the The Fund, economist, Hank Fishkind, Ph.D., said that "Florida's real estate market, it is important to maintain some perspective as recent reductions in home prices come after a very lofty and unsustainable peak, and prices are still up considerably compared to 30 years ago," explained Fishkind. "Florida has created a tremendous amount of wealth and -despite many of the problems that loose lending practices and subprime mortgages have caused- the state now has the highest level of homeownership ever." He states that despite what he calls areas of indigestion, "housing markets will return to normal during the next few years." Fishkind has stated that Florida "has done very well" speaking of job growth. "It has been one of the leading states for job creation in the nation and has outperformed the rest of the country - even with the meltdown of the housing markets that has occurred in many parts of the state."

A correction in the housing market was "Inevitable" following the five year boom, said U.S. Housing Treasury Secretary Henry Paulson. During that period, sales rates and home prices eclipsed records in Florida and across the country.

The interest rates are still very favorable and many of the builders continue with their incentives such as paid homeowner dues, golf course memberships, and mortgage rate buy downs.

Florida buyers are not just in the market for a new home. They are in the market for a lifestyle, this is what our warm weather, sandy beaches and golf courses offer. Baby Boomers are just beginning their journey toward the retirement years and are a group that "won't just sit on a front porch."