Tampa-St. Pete existing home sales up 11% in October – Tampa Bay Business Journal

Existing single-family home sales in the Tampa-St. Petersburg-Clearwater market were up 11 percent in October as sales prices become more manageable for the typical buyer.

The Tampa-St. Pete area closed on 2,021 homes in October compared to 1,814 a year ago, and was below the 15 percent average statewide, according to numbers released Monday by the Florida Association of Realtors. Median sales prices were down 26 percent from $205,600 in October 2007 to $152,300 last month.

via Tampa-St. Pete existing home sales up 11% in October – Tampa Bay Business Journal:

The Best Day of the Year to Buy Real Estate | About.com

I would say every day especially in this market, but I guess not. Spread the word!

When is the best time of the year to buy a home? There are at least two days of the year that give buyers the edge. Would you like to guess which two days are best for buying a home?

Every spring, as tulips struggle to poke through melting snow in the North and rosebuds cautiously open in Southern climes, sure as tootin’ real estate signs begin multiplying like bunnies across the country. Soon as the For Sale signs are mounted on the posts, swarms of activity buzz in the streets as sellers, buyers and real estate agents crawl out from wherever they hibernated for the winter to welcome the spring sales season.

There is nothing like a spring real estate market. Offers fly over FAX machines and cell phones ring constantly. Everybody wants a deal, and everybody wants to sell. Typically the marketplace is flooded with inventory. There is more on the market in the spring than any other time of the year.

Read the rest here: Best Time To Buy a Home – When is the Best Time to Buy a Home? – The Best Day of the Year to Buy Real Estate

Lennar’s “Smart” Promotion

 Smart Cars for Not-So-Smart Homebuyers

My favorite company logo. Doesn't black and red just give you the warm and fuzzies?

I have to say, I’ve been biting my lip on this one. Then again, since Lennar revealed their true colors (right) I’ve been dumbfounded by the advertising and marketing strategies coming from Zimmerman (their ad agency). It’s easy to be in awe of such a reputable agency with a great track record and knowing that it all started with a USF grad, but since Lennar took on such an intimidating look, the only words I’ve been able to conjure up are: huh?! That’s certainly a post for another day.

Ah, the smart car. It’s no secret that as Americans we’re becoming more environmentally aware and proactive (I just bought an SUV) thanks to the fear of gas prices, the economy, and the impending warming of the globe (earth?). As much as there’s a wealth of information online, I didn’t feel that it was necessary to find out the results of Lennar’s notorious “Mustang” promotion at the crest of the downturn for this post. Seeing some of the gimmicks that have been put out there over the past few years, I’m seriously starting to question the Builder’s assumption of the intelligence of their buyers. Back to the subject: The smart car is culturally relevant, hip, and full of buzz right now. There you go, first impression made. Now the fun part:

Applicant must reserve loan funds and value of car will lower the amount that can be loaned on a home.

- In other words, I have to buy a smaller house than the one I want for the smaller car I’m supposed to get for “free”? Isn’t one of our major challenges right now getting approval for financing? I’m sure adding a car to their DTI ratio will help. “Mr. Homebuyer, if you’d like, you can pass on the smart car to be able to qualify for the home you actually wanted.” Really? Ok then, I guess. How convenient. I thought we were trying to get them to buy a home, not a car?!

**CONSUMER NOTICE: NO PURCHASE NECESSARY TO ENTER OR WIN. PURCHASE WILL NOT INCREASE YOUR CHANCES OF WINNING.

- I think I’ll take my chances with Fantasy 5. At least I can pay the taxes off with the winnings. OH! Maybe… that’s what I can use my FTHB tax credit for! To pay the taxes on the not-so-smart car… I knew that’d be good for something!

This is what happens when you let the patients (ad agency) take over the asylum. From their “shouting” radio ads, to even their newspaper and online ads, I’m starting to wonder if Lennar is planning on joining the Automotive industry as well. The evidence is right there in black… and red.

 

Click on the image for a larger version. Your thoughts?

Pulte ponies up some extra ca$h

I hope they write a check, that's a tiny pig.

Pulte was pretty quick in spinning this FTHB tax credit last week and taking it a step further. The email states “At Pulte Homes, we believe that everybody deserves a jump-start on moving into a new home. That’s why we’re giving at least $7,500** in savings to ALL of our homebuyers!” The disclaimer states that this may be used as part of or in addition to existing offers, but $7500 alone is a nice chunk of change. If you read my post below on the tax credit, you won’t be surprised that I think this is a better deal than getting it from Uncle Sam!

I also want to give an extra point to Pulte for going after previous or current homeowners. In most cases, unless they have a home to sell, they’re easier to qualify for a loan. Notice it was only ONE point. A buyer with a home to sell might as well have the credit score of a teenager. Good luck.

Pulte: Jump Start incentive

The $7500 first-time home buyer tax credit/loan/debt. Thank you, Washington!

Much Ado About Nothing, as always.

Thanks to the most popular overpaid politicians in Washington D.C., the home building industry had a glimmer of hope (for now) thanks to the recent housing bill that was passed granting first-time home buyers a $7500 tax credit. This of course is only a bit of Novocaine on the impending root canal that is the end of Down Payment Assistance. Needless to say, being a FTHB myself, I was pretty excited… at first.

First, let’s take a look at this from the Builder or Realtor perspective. The biggest challenge right now for FTHBs is qualifying for a loan. Unless the buyer has a near spotless record and above average credit score, trying to qualify them is a much fun as watching a reality show on VH1. Another challenge for FTHBs is that they (we) are a generation of debt dependants. They have multiple credit cards, cars they can’t afford, loans they haven’t paid off, etc. In other words, this new generation doesn’t have a very good concept of how to save money. Helloooo? Deposit? Down Payment? Closing costs? A $7500 tax credit is useless if you can’t get them in the home to begin with.

To sum it up, this $7500 FTHB tax credit is no more than a great builder scheme incentive that they didn’t have to come up with or pay for.

From a FTHB’s perspective: again, pretty exciting at first! Then I remembered the one thing I learned in my first career (different industry). Credit=Debt=Bad. I do have to give credit praise to the NAHB for putting together a pretty easy-to-read/understand website. This gracious $7500 tax credit (not deduction, as the website clearly states) is a no-interest loan that is to be paid back over 15 years. 15 years? I didn’t plan on staying in my 2 bedroom townhome for 15 years. You mean I have to pay back the unpaid amount if I sell it? Well fortunately for those FTHBs that have lost 5 or 10 (15) years worth of equity in the past 2 years are forgiven. For those like me who got a great deal and have not seen a price reduction in my community since I purchased my home, this does nothing other than prolong the inevitable. I either pay my taxes upfront, or pay it over a 15-year period.

I’m not denying the fact that this is will be a great benefit for some, but it only feeds the demon that is the debt which serves as the foundation of this country’s economy. Debt is bad, mmm-kay?

Question: Have you actually generated any buyers or moved any fence-sitters because of this? NAHB, Centex, KB, and Lennar think so.

NAHB: Federal Housing Tax Credit

NAHB: Builders Finding Strong Home Buyer Interest in Tax Credit

An outsider on the inside…

I think I see something… wait, guess not.

Being a part of the real estate industry over the past few years has been interesting to say the least, and continues to be on a daily basis. What I hope to accomplish through this blog is to bring to light the great things and the not-so great things about this downturn in the industry and more specifically, the Tampa Bay market. I plan to bring the knowledge and information of someone in the industry with a perspective from someone who is still trying to get his bearings on the future of the real estate industry locally and nationally.

With a focus on news, marketing, and advertising, my intent is to constructively criticize and analyze the strategies used by the companies that may be mentioned, and the news that will help shape the perception of the industry throughout the lifespan of this blog. I hope for those that read this site that they are able to take knowledge, information, and a fresh perspective on the real estate market in Tampa Bay as the industry goes through one of its most evolutionary periods.

Your comments and contributions are encouraged. Let’s have some fun.