Rich Cornelius

Despite the tumultuous end of the year, the real estate market in the Bay area finished slightly stronger than anticipated. Home sales ticked up and supply decreased slightly, which is the right formula for stabilization. Condos are still sluggish, with relatively undiminished supply and flat demand.

What is amazing is that Beach homes through out Pinellas County that sold in December closed at 70% of their original list price. That's a full 1/3 discount. Other property types in and around Pinellas that sold in December averaged 82% - 85% of their original listing prices.

Distressed properties are here to stay and make up appr 1/3 of our sales. 2009 is a peak year for "Pay-Option ARMs" to reset and will cause a secondary wave of foreclosures as owners' payments double, triple, and quadruple when the loans "re-cast" themselves.

If you absolutely need to sell, do yourself a favor and set your price AGGRESSIVELY. No matter how nice your property is, it is hard to compete with properties being sold at 10% - 25% discounts unless you are VALUE-priced. Below is a graph to showing the AVG PRICE of available vs sold homes in Tampa Bay from OCT 07 - DEC 08...on average, the SOLD PRICE has decreased appr. $5700 PER MONTH!!! Essentially, you are paying "the market" $6000 a month to sell your property.

COLDWELL BANKER PRESENTS:

"FIRST-TIME HOMEBUYER SEMINAR"

TUESDAY JANUARY 27, 2009 at 630p

1988 Gulf-to-Bay, Clearwater, FL (across from Clearwater HS)

Are you are a first-time homebuyer looking to make your first purchase?

Are you a current renter wondering if now is the time to buy?

Are you new to the area and trying to get your bearings in our market?

If you have answered YES to any of the questions above, then you are cordially invited to attend this INFORMATION-PACKED, 100% hassle-free, 100% no-cost Homebuying seminar which will cover homebuying from A-Z! If you don't know the answers to the following questions, I would highly recommend you attend this seminar and EDUCATE YOURSELF!

1) The maximum FHA loan amount is ____ %?

2) Seller's can contribute ____ % of the purchase price towards Buyer's closing costs and prepaid items?

3) What is the only entity offering 100% mortgage loans?

4) The gov't recently approved grants in the amount of $______ for first-time homebuyers.

5) Mortgage rates, as of last week, were the lowest since 19__, when rate trends were first reported on a weekly basis?

Email,call, or text me and I will save you a seat!

The Housing Finance Authority of Pinellas County announces the return of its popular Making Pinellas Home down-payment program. The program will offer interest-free, deferred payment assistance to help qualified home buyers achieve the dream of home ownership.

Loans of up to $15,000 are available to households with incomes up to 80 percent of area median income. Loans can be used for a down payment and closing costs. The program is available anywhere in Pinellas County.

There are no payments for the first five years and no interest, ever. Homes must be priced at or below $240,158. For more information about the Making Pinellas Home program, or for referral to an approved lender, contact the Housing Finance Authority of Pinellas County at (727) 464-8210 or visit www.pinellascounty.org/ community/hfa.

Homeowners, it's time to take a hard look at what you are spending on utilities! Want to lower your costs and put more money in your pocket??? Here are a few ideas I have incorporated to make my home more energy-efficient (short of adding solar-panels).

1) HOME ENERGY AUDIT. Call Progress Energy RIGHT NOW to schedule your free home energy audit. It costs you NOTHING and take about 1 - 2 hours. At the conclusion, you'll get a report and a rebate for $$$ off new insulation.

2) INSULATION. If your home was built prior to the late 90's, chances are you have R-19 insulation OR LESS!! For less than a couple hundred dollars, you can get R-30 insulation blown in and then use the Progress Energy rebate to reduce that amount. Then, take the allowable deduction on your federal taxes! Just 2-3 months of savings on your power bill will pay for the cost of the insulation and then you're MAKING money!

3) Have your A/C system serviced. You wouldn't run your car without servicing it at some point during the year - why do that to your A/C. Have a pro check the pressures, measure the refrigerant level, and make sure your condensate line is clear of obstructions. You'll extend the life of the system.

4) Drain your water heater. Bet you didn't realize you could do that. If you live in Pinellas, chances are you will have sediment buildup in your water heater. There is a hose bib on the bottom with a valve. Drain the water until it runs clear at least once per year!

5) Turn down the temp on your water heater. Some water heaters are factory-set at 130+ degrees. Turn it down to 120 and you won't realize the difference, except in your bill. Also, install a timer to automatically turn it on and off during hi-use times. Why run a water heater 24 hours a day when you just need hot water for a couple of hours? You'll also extend the life of the water heater.

6) Turn up your refrigerator. The cool part should be appr 37 degrees and the freezer at 0 degrees.

7) Air leaks. Buy caulk and a caulking gun and check all your windows. Chances are you'll see some leaks. Also works well for keeping moisture out of the house.

8) Roof. If you're re-roofing, choose a lighter color OR even better, choose a metal roof. They reflect heat and have a longer life.

Now here is some real help for our real estate market...

OCT 29, 2008 - Realogy Corporation, a global provider of real estate and relocation services, today announced that the Company has approached the U.S. Department of Treasury with a practical solution to help stimulate the housing market and lead to a broader economic recovery. The Company also conducted separate national surveys with its real estate franchisees and U.S. homeowners, the results of which underscore the rationale behind its proposal.

"There are millions of credit-worthy people ready to jump back into the housing market, but they need to be motivated," said Realogy President and CEO Richard A. Smith. "In our view, the incentive of substantially lower mortgage rates would directly stimulate the housing market - both in sales volume and price - and thus accelerate the overall U.S. economic recovery."

Realogy's proposal calls for a short-term government buy-down of mortgage rates to at
least 4.5%, or lower, for a 30-year fixed rate mortgage (down from current rates of
approximately 6.04%1). This homebuyer incentive would apply to the purchase of all new and/or existing homes sold up to $1 million in price. There are a number of ways in which the government ultimately could decide to structure and fund this program, which could be addressed as part of the stimulus packages currently being discussed in Washington.

Realogy is working with a number of other organizations to carry this message forward and encourage greater dialogue around solutions aimed at boosting the economy through a direct stimulus to the housing market.