Archive for October, 2009
Tax Credit Extension Proposed for Military
Good news may be on the horizon for service members in Tampa. A Bill in the House of Representatives, “H.R.3590: The Service Members Home Ownership Tax Act of 2009″, proposes to amend the Internal Revenue Code for members of the Armed Forces by waiving some of the restrictions on the first-time home buyers tax credit. One of the restriction lifted would include removing the tax credit repayment if a home is sold within three years of purchase due to a military transfer. The bill would also extend the tax exemption for payments to military personnel as a result of declining home values due to base closures. Click here to read the Bill.
As you know, Tampa’s MacDill AFB is the home of the U.S. Central Command (CENTCOM), U.S. Special Operations Command (SOCOM), the Joint Communications Support Element (JCSE), the 6th Air Mobility Wing and many other units. Beyond these active units, an estimated 130,000 veterans have made the Tampa Bay area their home. Tamba Bay service members have experienced extensive overseas deployments and may not have been able to participate fully in the tax credit for first-time home buyers.
Think Foreclosure is your only option…Think Again!
Owe more than your home is worth? Struggling with rising payments? Facing unforeseen circumstances? Need to move on to a new chapter? You are not alone.
Thousands of Tampa homeowners are facing the same tough challenges every day. Now more than ever, there are steps you can take to avoid foreclosure. You need guidance, confidentiality and someone who understands the serious choices you are facing about your home, your family, and your life. The wrong decision might make it impossible for you to repair your credit or purchase another home for 5-10 years. Foreclosures, short sales, and mortgage modifications can have vastly different impacts upon your future.
If you would like to speak with a Tampa Realtor who understands these difficult choices, please do not delay. You have options, and you do not need to go through the process alone. As Certified Distressed Property Experts (CDPEs), Realtors at team Bohannon provide FREE information that compares and contrasts ways to avoid foreclosure. Call today at 813-979-4963
Florida CDD Costs Impact Sales
Are community fees hurting sales? Most planned communities in Florida have CDD fees, Home Owner Association fees, or both. While the value of homes in Tampa has decreased 25-50%, neighborhood CDD fees have not decreased. A $200 per month CDD fee may have been acceptable when a home was valued at $400,000, but it might become an objection if the same home is now worth $300,000. The combination of property taxes, CDD fees, and HOA fees can put monthly payments out of reach for some home buyers. On the flip side, most CDD neighborhoods have newer homes, more amenities, stronger enforcement of deed restrictions and tighter security. Some communities even include phone, high speed internet, cable TV and alarm monitoring services.
What is a CDD?
There are over 600 Community Development Districts (CDDs) in Florida, including 116 in the Tampa Bay area. Florida law allows for the establishment of Community Development Districts to fund infrastructure needs and neighborhood amenities. A CDD has the authority to issue tax exempt bonds at favorable rates and spend the proceeds on developing and improving a neighborhood. CDD funds pay for building utilities, roads, water, waste/sewer, schools, conservation areas, streetlights, and bridges. Additionally, many communities build amenities such as parks, club houses, swimming pools, tennis courts, trails, golf courses, security gates, etc. CDD bonds are repaid through an annual property tax assessment divided amongst the residents of a community, usually over a 20 year period. As homes are built, residents eventually take control of the CDD governing board. CDD fees allowed developers and builders to defray upfront expenses and offer homes at lower costs, at least initially.
How Much Are the Fees?
Most planned communities in the Tampa Bay area have CDD fees and HOA fees. The amount that a Tampa Bay homeowner pays toward the CDD usually depends upon the lot size, and the fees very by community. For example, a 90 foot wide lot might have an obligation of $150-$300 per month, while a 50 foot wide lot might pay $80-$100 per month.
What is the problem?
While Tampa Bay home values have declined by 30%-50%, the CDD fees remain fixed. Consider a home that was worth $500,000 at the peak of the market. In Tampa’s hardest hit Tampa neighborhoods, the same home may be valued at $270,000 today. If a potential home buyer puts down 10%, the principle and interest payment would be $1304. Since the home is located within Tampa city limits, last year’s property taxes were at estimated at $5656. While we expect taxes to decline next year based upon the drop in property values, a buyer must qualify at the current tax amount of $471 per month. The CDD fee on this home is a rather high $3837 per year ($320 per month). Since the fees are paid as part of taxes, a home buyer would need to be able to qualify for the extra $320 per month added to the payment. The county property tax plus the CDD would be $791 per month, while the mortgage principle would be $1304, for a total of $2095. If Home Owner’s Insurance is $200 per month, a borrower would need to be able to qualify for a monthly payment of $2295. A consumer with an average debt load would need to have an income in the $80,000-$100,000 range to qualify.
What can be done?
The long term solution might be to re-finance the CDD bonds for additional years at lower rates, but the bond market is experiencing turbulent times. For the near term, if an individual home owner wants to make their home more marketable, they should consider paying off their portion of the CDD bond. A one-time payment of $10,000-$15,000 might make the home the only one in a neighborhood without a CDD bond fee, and would make it more attractive to buyers. For a homebuyer, call Team Bohannon today for strategies to maximize your choice and purchasing power.
Do You Know Where Your Realtor Is?
Feeling abandoned? Is your trusted Tampa Realtor nowhere to be found? The Wall Street Journal has an article (click to read) today about Realtors who have left the business or are scrambling for extra work outside of real estate to compensate for the housing market’s long decline.
If your Realtor is missing in action….don’t panic. The professionsal Realtors at Team Bohannon of Coldwell Banker are standing by to fill the void.The 2009 Member Profile published by the NATIONAL ASSOCIATION OF REALTORS®, found the typical Florida REALTOR completed 6 sales in 2008 with a median sales volume of $0.9 million.
Why settle for average? Team Bohannon has helped thousands of families close on their dream home. The lessons learned along the way might benefit you. But none of this is about us, it is totally about understanding and responding to your needs, wants and dreams. We have taken years of experience and implemented a system to deliver a consistently successful experience for a home buyers and sellers. Our exclusive Home Buying System and Home Selling System ensures that a team of professionals implement best practices to realize your real estate goals. Contact Team Bohannon today at 813-979-4963.
New Tampa Condo and Townhouse Market
The median condo/townhome price in New Tampa (33647) this week is $105,000. The average New Tampa condo or townhome is on the market for 257 days and sells for $107 per square foot. Inventory is tightening and days on-market is falling. Demand heating up. These are tentatively bullish signs for prices.
- New Tampa Condo and Townhomes
Prices in the 33647 zip code have been on a downward trend for 3 years. This week, while essentially flat, does not break us out of the cycle. We are seeing declines in values approaching 70% in some complexes. In looking at the supply and demand for New Tampa (33647) units, market conditions are strongly in the Buyer’s Market territory. With several months of inventory available at the current sales rate, buyers have ample choice. There are 63 units available that are not short sales which could close in time to take advantage of the first time home buyer’s tax credit. Contact Team Bohannon at Coldwell Banker today for additional info (813) 979-4963.
New Tampa Townhouses For Sale
Click the map to see New Tampa condos for sale:
New Tampa Condos For Sale
South Tampa Condo and Townhome Update
What is happening in the South Tampa condominium and townhome markets? To answer this question, we looked MLS data for sale in target zip codes. There are 557 condos and townhouses currently for sale; 59 went under contract in September; and 41 closed escrow in September. Hence about 1-out-of-10 are selling each month.
While 59 units went under contract in September, there are 137 units under contract overall. Of the 137 units under contract, 13 are bank owned foreclosures and 87 are short sales. The average price of Active Listings is $327,000, and the average sales price is $203,000.
The average South Tampa condo or townhouse is on the market for 137 days before going under contract. The average unit sells for 91% of the final asking price.
If we look at the number of listings divided by monthly closings, we see large swings in the supply of available inventory. It would take 13.6 months to sell the remaining units at this rate if no additional units entered the market.
For a more detailed market study, contact Team Bohannon at Coldwell Banker today. To see available units at featured communities, see our Featured Condo Communities page or our Tampa Towmhomes page.
Sanctuary on Livingston
Located just North of Tampa in Lutz, the Sanctuary on Livingston is gated community of fabulous homes on lots of at least 1 acre. What is happening with the real estate market in the Sanctuary on Livingston?
To see the data, charts and graphs, check out our Sanctuary on Livingston Real Estate Market Report that shows statistics on listings, contracts, and recent closings. The report shows list-to-sales price ratios and the absorption rate. The Sanctuary on Livingston Real Estate Market Report contains colorful charts contrasting Available Listings – vs- Contracts Pending, Sold Listings -vs- Expired Listings, Days on the Market (DOM), and Average Sale Prices. To see homes for sale in Sanctuary on Livingston, click Sanctuary Listings. For more information, contact the Realtors who have sold over over 4000 homes in the Tampa Bay area – Team Bohannon of Coldwell Banker at (813) 979-4963.
Sanctuary on Livingston Listings
Wesley Chapel Estate Report
What is happening with the real estate market in Wesley Chapel? At the moment there are 417 single family homes for sale, with 17 of those being bank owned foreclosures and 189 being short sales. There are 287 homes under contract, with 34 of those being bank owned, and 179 being short sales. Thus far in 2009, 592 homes have sold/closed, or about 65 per month.
If you are curious about the real estate market in Wesley Chapel, see our new 4 page Wesley Chapel Real Estate Market Report that shows statistics on Wesley Chapel Listings, Contracts Pending, and Closed Sales over the past 6 months. The report shows average prices, list-to-sales price ratios and the absorption rate. The Wesley Chapel Real Estate Market Report contains colorful charts contrasting Available Listings – vs- Contracts Pending, Sold Listings -vs- Expired Listings, Days on the Market (DOM), and Average Sale Prices. To see homes for sale in Wesley Chapel, click here and zoom in to see homes or click the search tab to revise the search criteria. For more information, contact the Realtors who have sold over over 300 homes in Wesley Chapel – Team Bohannon of Coldwell Banker at (813) 979-4963.
About Wesley Chapel
Located in Pasco County just North of New Tampa, near the intersection I75 & I-275, Wesley Chapel is home to master-planned neighborhoods, top schools, new shopping, golf courses and amenities galore. Recent estimates peg the population around 45,000 residents. Newcomers have helped found burgeoning communities in Meadow Point, Seven Oaks, Lexington Oaks, Watergrass, Countrywalk, Saddlebrook, Villages of Wesley Chapel, Chapel Pines, Northwood, Brookside, New River Lakes, and other neighborhoods.
Lenders Are Reining In Short Sales
Short sales have been an important lifeline for many Tampa Bay homeowners unable to sell their homes at market prices. In fact, 30% of the single family homes for sale in New Tampa are short sales, while 46% of homes for sale in Wesley Chapel are short sales. Over half of the homes under contract in Hillsborough County are short sales. Many Tampa Bay homeowners have been willing to face uncertainties about time frames, deficiency judgments, and promissory notes in order to avoid foreclosure. For their part, banks have reluctantly and belatedly accepted short sales as a fact of life.
Economic calculations have historically made short sales a cheaper option for banks than foreclosure until recent government interventions. The FDIC has a program whereby your tax dollars will reimburse the banks after the first 20% of any future losses (FDIC Loss Sharing Agreements). These “losses” include all penalties and fees tacked on by lenders. As a result, delays in short sales and foreclosures can result in additional fees and higher FDIC reimbursements. The FDIC has entered into 53 loss share agreements with acquirers of failed banks. For single family mortgages, the FDIC reimburses the banks for: modifications, short sales, foreclosures, and charge-offs for some second liens. Many banks are beginning to view foreclosure as a more attractive option since government intervention has distorted market forces. While it is hard to fault business people for following the rules to earn a profit, the result of these government programs seems to be at cross purposes with the intended goals of helping the average homeowner.
Though the effort to re-capitalize banks may have been defensible, the effects of the stimulus are not working for many Tampa Bay homeowners. As Certified Disttressed Property Experts (CDPEs) who work to help homeowners avoid foreclosure everyday, we at Team Bohannon encourage you to be fully informed seek the advice of competent legal, tax and real estate professionals before contemplating a foreclosure or short sale. Here is a related Business Week story.
Meadow Pointe Real Estate Market Report
Meadow Pointe is the largest planned community in Wesley Chapel. For data and charts on the real estate market in Meadow Pointe, check out our new 4 page Meadow Pointe Market Report that shows statistics on Active Listings, Contracts Pending, and Closed Sales over the past 6 months. The report shows average prices, the absorption rate, and list-to-sales price ratios. The Meadow Pointe Market Report contains colorful charts contrasting Available Listings – vs- Contracts Pending, Sold Listings -vs- Expired Listings, Days on the Market (DOM), and Average Sale Prices. To see homes for sale in Meadow Pointe, click Meadow Pointe Homes For Sale. For more information, contact the Realtors who have sold over 200 homes in Meadow Pointe – Team Bohannon of Coldwell Banker at (813) 979-4963.
About Meadow Pointe
Located in Wesley Chapel, just north of New Tampa, Meadow Pointe spans 1,724 acres and is called home by over 1500 families thus far. Meadow Pointe has 4 multi million dollar clubhouses, 4 public schools, parks, biking paths, softball fields, basketball courts, community pools, and supervised after-school programs. Since Meadow Pointe is within Pasco County, homeowners reap the benefits of lower land costs and lower taxes. Over half of Meadow Pointe has been set aside for environmental and recreational purposes.
