by Bill Rogers | Highlands Today
SEBRING - Brenda Siegle says it's the perfect time to buy and some important numbers associated with the housing market lend credence to the Lake Placid Realtor's sales pitch.
"Interest rates are at the all-time low and prices are so affordable you can get so much house… You can get a lot of bang for your buck," Siegle said.
"What I'm seeing is that if people are renting they can get into a home as cheap – or if not cheaper – than renting," she added. "They can own it; they can build up some equity. So I think people are really taking advantage of today's market. It's affordable to them."
Siegle, who works for Century 21 Compton Realty, said she has cash buyers as well as those who are financing. She noted that the buyers are a mixture of people that include investors, seasonal, first-time home buyers, people moving into the county and weekenders.
"People coming down for the winter, they have come down, they've seen our prices are good prices," she said. "They are more opting to purchase and have their winter home here. We had lost that when the prices had gotten so high. We are now seeing that come back again.
"If there is a good house, priced right, it will sell," Siegle said. "If you want it, you better step up to the plate."
Steve Fruit, broker associate for RE/MAX Realty Plus II, tracks real estate sales in Highlands County. His information shows that the number of single-family homes sold in Highlands has increased but the sales price has declined significantly during the past few years.
From Jan.1, 2011 through March 14, 205 homes were sold in the county. The median sales price was $75,000.
Last year, during the same time period, 198 homes were sold and the median sales price was $97,750.
In 2009, 155 homes were sold from the beginning of the year through March 14 and the median sales price was $110,000.
Comparing the numbers in February alone since 2009, the Highlands County Multiple Listing Service showed that 88 homes were sold in the county that year, 111 in 2010 and 125 this year.
The MLS also shows the inventory of homes has gone down in February. There were 1,862 homes on the market in 2009, 1,525 in 2010 and 1,485 this year.
According to the Associated Press, the number of first-time buyers fell in January to the lowest percentage in nearly two years, while all-cash deals have doubled and now account for one-third of sales.
A record number of foreclosures have forced home prices down in most markets. The National Association of Realtors reported the median sales price for a home fell in January to its lowest level in nearly nine years.
Lower prices would normally be good for first-time homebuyers, the AP story said. But tighter lending standards have kept many from taking advantage of them. With fewer new buyers shopping, potential repeat buyers are hesitant to put their homes on the market and upgrade.
Cash-only investors are most interested in properties at risk of foreclosure. They can get those at bargain-basement prices.
Bill Klohn of Lake June West Realty LL said his company has been seeing more cash buyers. Klohn noted that three retired couples are coming to Lake Placid next month and are going to buy town homes on Lake June. They are going to pay cash, according to Klohn.
The market seems to be more active and serious, he said in an e-mail.
"I think they are tired of waiting to invest," Klohn said.
Gary Delatorre of Coldwell Banker Highlands Properties is the president of the Heartland Association of Realtors. Delatorre said there is more activity in the residential and commercial markets.
Delatorre said prospective buyers are making offers and there are negotiations going on, which is good.
He believes this year could be better than 2010 for real estate agents and they are feeling more positive.
Delatorre said it is "still a challenge" to get a mortgage which he attributes to so many rules the banks are having to follow.
Sean Snaith, economics professor at the University of Central Florida, said this year the process continues of trying to normalize.
"We're making progress, but we're in a deep hole that will take time to get out of," Snaith said.
"The fate of the housing market and labor market are entwined in Florida," he said.
There is a lot of inventory in foreclosure that is backed up in the court system, according to Snaith. He said inventory numbers can be misleading because of the "shadow" inventory that includes homes in or close to foreclosure but not yet put up for sale.
The key factor is prices.
"When prices stop falling then we have some balance in supply and demand," he said.
Snaith said there are a lot of cash buyers because prices are" real depressed" and mortgage lending has not returned to normal.
"Foreclosures are still driving the prices," Delatorre said.
Fruit said he has heard some economists say prices will not stabilize until 2013.
"I'm encouraged to see the slow down in price declines, that's good" Fruit said.
Sheila Richards, office manager for the south office of the Heartland Association of Realtors, said from the indication she has 2011 will be better than the past two years.
Richards said there seems to be more of commitment to make an offer. She added that when there are a number of homes on the market some buyers tend to hesitate thinking there is something better out there.
Lee Hawthorn, residential lender for Wauchula State Bank, said interest rates were at an all-time low. They are now in the low 5s, which she said is "still very good."
Hawthorn said customers often ask her if the bank is lending.
"We're in the business of lending," she said. "The customer has to qualify."
Commercial activity
Pete McDevitt of Coldwell Banker Highlands Properties said more people are looking in the market place and "sticking their toe in the water."
The percentage of foreclosures is a lot less than residential, according to McDevitt.
"No one is giving anything away," McDevitt said. "There are very few fire sales in commercial property."
The prices have come down in respect to properties that people really want to sell, McDevitt said.
Hoz Compton of Century 21 Compton Realty said people interested in land in Highlands – not developers – are coming from Winter Haven and Immokalee.
"Grove land is good," Compton said.
Published: March 20, 2011
"Interest rates are at the all-time low and prices are so affordable you can get so much house… You can get a lot of bang for your buck," Siegle said.
"What I'm seeing is that if people are renting they can get into a home as cheap – or if not cheaper – than renting," she added. "They can own it; they can build up some equity. So I think people are really taking advantage of today's market. It's affordable to them."
Siegle, who works for Century 21 Compton Realty, said she has cash buyers as well as those who are financing. She noted that the buyers are a mixture of people that include investors, seasonal, first-time home buyers, people moving into the county and weekenders.
"People coming down for the winter, they have come down, they've seen our prices are good prices," she said. "They are more opting to purchase and have their winter home here. We had lost that when the prices had gotten so high. We are now seeing that come back again.
"If there is a good house, priced right, it will sell," Siegle said. "If you want it, you better step up to the plate."
Steve Fruit, broker associate for RE/MAX Realty Plus II, tracks real estate sales in Highlands County. His information shows that the number of single-family homes sold in Highlands has increased but the sales price has declined significantly during the past few years.
From Jan.1, 2011 through March 14, 205 homes were sold in the county. The median sales price was $75,000.
Last year, during the same time period, 198 homes were sold and the median sales price was $97,750.
In 2009, 155 homes were sold from the beginning of the year through March 14 and the median sales price was $110,000.
Comparing the numbers in February alone since 2009, the Highlands County Multiple Listing Service showed that 88 homes were sold in the county that year, 111 in 2010 and 125 this year.
The MLS also shows the inventory of homes has gone down in February. There were 1,862 homes on the market in 2009, 1,525 in 2010 and 1,485 this year.
According to the Associated Press, the number of first-time buyers fell in January to the lowest percentage in nearly two years, while all-cash deals have doubled and now account for one-third of sales.
A record number of foreclosures have forced home prices down in most markets. The National Association of Realtors reported the median sales price for a home fell in January to its lowest level in nearly nine years.
Lower prices would normally be good for first-time homebuyers, the AP story said. But tighter lending standards have kept many from taking advantage of them. With fewer new buyers shopping, potential repeat buyers are hesitant to put their homes on the market and upgrade.
Cash-only investors are most interested in properties at risk of foreclosure. They can get those at bargain-basement prices.
Bill Klohn of Lake June West Realty LL said his company has been seeing more cash buyers. Klohn noted that three retired couples are coming to Lake Placid next month and are going to buy town homes on Lake June. They are going to pay cash, according to Klohn.
The market seems to be more active and serious, he said in an e-mail.
"I think they are tired of waiting to invest," Klohn said.
Gary Delatorre of Coldwell Banker Highlands Properties is the president of the Heartland Association of Realtors. Delatorre said there is more activity in the residential and commercial markets.
Delatorre said prospective buyers are making offers and there are negotiations going on, which is good.
He believes this year could be better than 2010 for real estate agents and they are feeling more positive.
Delatorre said it is "still a challenge" to get a mortgage which he attributes to so many rules the banks are having to follow.
Sean Snaith, economics professor at the University of Central Florida, said this year the process continues of trying to normalize.
"We're making progress, but we're in a deep hole that will take time to get out of," Snaith said.
"The fate of the housing market and labor market are entwined in Florida," he said.
There is a lot of inventory in foreclosure that is backed up in the court system, according to Snaith. He said inventory numbers can be misleading because of the "shadow" inventory that includes homes in or close to foreclosure but not yet put up for sale.
The key factor is prices.
"When prices stop falling then we have some balance in supply and demand," he said.
Snaith said there are a lot of cash buyers because prices are" real depressed" and mortgage lending has not returned to normal.
"Foreclosures are still driving the prices," Delatorre said.
Fruit said he has heard some economists say prices will not stabilize until 2013.
"I'm encouraged to see the slow down in price declines, that's good" Fruit said.
Sheila Richards, office manager for the south office of the Heartland Association of Realtors, said from the indication she has 2011 will be better than the past two years.
Richards said there seems to be more of commitment to make an offer. She added that when there are a number of homes on the market some buyers tend to hesitate thinking there is something better out there.
Lee Hawthorn, residential lender for Wauchula State Bank, said interest rates were at an all-time low. They are now in the low 5s, which she said is "still very good."
Hawthorn said customers often ask her if the bank is lending.
"We're in the business of lending," she said. "The customer has to qualify."
Commercial activity
Pete McDevitt of Coldwell Banker Highlands Properties said more people are looking in the market place and "sticking their toe in the water."
The percentage of foreclosures is a lot less than residential, according to McDevitt.
"No one is giving anything away," McDevitt said. "There are very few fire sales in commercial property."
The prices have come down in respect to properties that people really want to sell, McDevitt said.
Hoz Compton of Century 21 Compton Realty said people interested in land in Highlands – not developers – are coming from Winter Haven and Immokalee.
"Grove land is good," Compton said.
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