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I read today the above headline on one of those news network scrolls we all see at the bottom of the screen! 

If true, this is sure sign of pent up real estate purchase and sale demand.  It is not only a reflection of a slow market in which homes cannot be sold, but also bodes well for the future of real estate sales and thus prices in the future!

The time to buy is before the market strengthens:  The selection is better and pent up motivation to move is greater than when sales increase.  I have advised my clients early this month that number of sales in our market increased about 18% last year and this trend seems to be continuing. this will reduce the inventory of great buys. And I can assure you, based on the owners I talk with daily, the large portion of owners is not motivated to part with their property at todays prices. 

This is another indicator of an end coming to bargain prperties sooner rather than later. If you want a great buy, this may be the best time you will see for a while. and remember interest rates are low! contact me at jerry@765LIST.com with any questions anytime!

Below information appeared in the Wall Street Journal this week and buyers should look and be prepared. Please contact me for further details.

"We've all heard that it's getting harder and harder to qualify for a new loan, but no one's been certain exactly what Fannie Mae and Freddie Mac have set as rules in this new financial environment.

In a story in today's Wall Street Journal, we find that a borrower needs a credit score of at least 740 to qualify for a home purchase loan with a 20% down. With that excellent credit score the borrower could qualify for a loan rate of 4.75% plus a 1% origination fee. If a borrower's credit score is below 680, then the best he or she could do would be a 4.75% loan with 2.5% in fees.

So what do you need in cash to buy a home today using Fannie or Freddie? if you've got a score of 740 or higher and want to buy a home valued at $200,000, you would need to have $40,000 to put down on the home plus another $2,000 for fees before you could even think about buying. If your credit score was below 680, you would need the $40,000 down plus $5,000 in fees.

The only way you might find a way to purchase a home with less cash up front would be to work with the FHA. The FHA is still accepting borrowers with low credit scores and down payments of as little as 3.5%.Fannie and Freddie say they are focusing on keeping people in their homes and not on making new loans. The problem is that since Frannie and Freddie are the only players in town for most mortgages, since private mortgage money dried up, there's not much to go around to help people who want to buy a home. The only way we're going to stop the downward spiral in home prices is to reduce the backlog of homes on the market."

Good news here as the backlog appears to be stabilizing in terms of number of listings on the market at any given date.  This is a very preliminary step towards a bottoming.  

At long last there may be some tax relief for those property owners who do not make Florida their permanent home!  For at least 4 years now, most of my clients who fit this category have cited high taxes as the number one or two reason why they are listing their properties here.  It is a backhanded way to see taxes go down but the decline in sales prices may have this effect and soon! 

According to an article in the Bradenton Herald:

"Florida snowbirds, so long left out in the cold when it comes to lower taxes, may find their property tax bills falling this year — along with real estate market values. “The people with the biggest break this year will be non-homesteaded property owners whose values dropped,” said Dale Friedley, a tax analyst with the Manatee County Property Appraiser’s Office. “In most cases those values are dropping between 8 and 15 percent. If their values went down 10 percent and millage is the same, they’ll save 10 percent, compared to last year’s bill,” Friedley added."

There are still far to many listed properties in Lee and Collier County for the buying market to absorb.  If more property owners could afford to keep their properties here instead of selling them,  the number of For Sale properties would decline and prices could stabilize sooner.  This would also help homesteaders who are permanent residents!  Property owners are tightening their belts and it is time that local governments do so as well so that our communities and real estate markets can begin a recovery. 

It's time to spread that joy to Lee and Collier County and for all citizens to act to ensure that tax millage rates in their communities are not raised for any reason or taxes will not decline.  Here is a link to search for your property's assessment and see what your tax bill is and will be! Lee county Property Appraiser    

Today I received a link to an article in the Sarasota Herald Tribune which explains Mortgage Foreclosure Relief may be soon on the way for primary residence homeowners!  This would help many owners in SW Florida as well as help others in other areas reduce their monthly costs helping them keep their second homes here.  

Remember when your neighbor goes into foreclosure your property value drops as the property is sold and a new appraisal value is set.  You will be affected as well.

In other News:  I am completing the 2008 Market Sales Report for Ft. Myers Beach and vicinity which I will email to clients early next week.  If you would like to be among the first to receive the report via email please email me by clicking this link and entering your name and 2008 Report in the subject line.