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Todays Mortgage Rates

Mortgage rates are down below three percent, continuing to offer many homeowners the potential to refinance and increase their monthly cash flow. In fact, homeowners who refinanced their 30-year fixed-rate mortgage in 2020 saved more than $2,800 dollars annually. Substantial opportunity continues to exist today, as nearly $2 trillion in conforming mortgages have the ability to refinance and reduce their interest rate by at least half a percentage point.

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829

Rates Down – Cash Sales Up… Wait what? 2021-05-26

Gulf Coast
Real Estate Update

May 26th, 2021

Interest Rates Down

Cash Sales Up

All-cash sales of existing homes in the U.S. comprised 25% of transactions in April as competition in the housing market continued. This marks an increase from 15% of similar sales a year ago and 20% in 2019, the survey shows.

The share of all-cash sales among vacation homes saw the biggest increase, jumping to 61% in April compared to 50% over recent years.

( Source National Association of REALTORS® )

As you know the Pinellas Gulf Coast is a Vacation Home Mecca. Let’s see how our beach communities stack up against the rest of the country.

30 year fixed rate

Month of April Each year

It’s also worth noting the total number of sales for the month of April of each year.

2019 = 256
2020 = 150
2021 = 378

Interesting to see how the market is playing catch up from April of 2020.

What’s For Sale

Todays Mortgage Rates

Mortgage rates are still hovering around 3%. Consumer income and spending are picking up, which is leading to an acceleration in economic growth. The combination of low and stable rates, coupled with an improving economy, is good for homebuyers. It’s also good for homeowners who may have missed prior opportunities to refinance and increase their monthly cash flow.

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829

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What happens after Mortgage Forbearance ends? 2021-05-19

Gulf Coast
Real Estate Update

May 18th, 2021

Typical Homeowner in Forbearance Has Plenty of Home Equity

The COVID-19 pandemic’s devastating impact on the job market has left many households unable to pay their mortgages or rents. Fortunately, the speedy intervention provided by the CARES Act ensured mortgage forbearance options for homeowners who were financially harmed by the pandemic.

A typical homeowner in forbearance appears to have sizeable equity in their home, with median equity just over $100,000 and loan to value ratio at about 61%. Even after accounting for missed mortgage payments, a typical homeowner in a forbearance is estimated to have about $88,000 in equity — which is generally more than enough to cover the costs of selling a home and still have some equity left over.

There are still over 2 million borrowers in forbearance with about half of them at least 180 days behind on their mortgage payments. Among borrowers in forbearance, 2.9% are still in negative equity, or about 58,000 loans.

Full report from CoreLogic

What’s For Sale

Todays Mortgage Rates

Mortgage rates have remained under three percent for four consecutive weeks. Consumer income and spending are picking up, which is leading to an acceleration in economic growth. The combination of low and stable rates, coupled with an improving economy, is good for homebuyers. It’s also good for homeowners who may have missed prior opportunities to refinance and increase their monthly cash flow.

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829

U.S. housing market Gallup poll results 2021-05-12

Gulf Coast
Real Estate Update

May 12th, 2021

Americans’ expectations for home values

71% of U.S. adults predict the average price of houses in their area will increase over the next year. 53% say it is a good time to buy a house, barely improved from last year’s record-low 50%.
Americans’ expectations for home values have proven in the past to be influenced by the health of the current housing market. The prior high of 70% came during the rapidly emerging housing bubble that eventually burst and was a major contributor to the 2007-2009 Great Recession. From 2008 through 2012, no more than 34% of Americans thought home prices would rise.

Full report

What’s For Sale

Todays Mortgage Rates

Mortgage rates have remained under three percent for three consecutive weeks. Consumer income and spending are picking up, which is leading to an acceleration in economic growth. The combination of low and stable rates, coupled with an improving economy, is good for homebuyers. It’s also good for homeowners who may have missed prior opportunities to refinance and increase their monthly cash flow.

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829

Are we in a Housing Bubble or a Vacuum? 2021-04-28

Gulf Coast
Real Estate Update

April 26th, 2021

Are we in a housing bubble or a vacuum?

Remember when housing prices Nationwide started falling in 2007 and bottomed out in 2011? The period in history was known as The Great Recession.

The term “housing bubble” summed up that miserable period. The bubble was created by speculation and fueled by easy mortgage money.

Let’s compare some key factors of the Great Recession to today’s environment.

In 2006 the demand was driven by speculation. Today it’s driven by end users.

When the bubble burst in 2006 we had a 20-month supply of homes for sale. Today we have a 2-month supply.

New home construction was way up in 2006… today builders can’t build fast enough to keep up with demand. With the cost of construction increasing, it’s likely supply won’t catch up with demand anytime soon.

In 2006 a 30-year fixed rate loan was 6%. Today it’s 3%.

But here’s the really significant piece of data. Take a look at this graph.

Basically, the higher the number on the vertical axis the easier it is to qualify for a mortgage.

You can see It was pretty loose in 2006. But by 2008 everything changed. It dropped like a Double Black Diamond ski slope. It’s been remained flat at that level for the last 12 years. The bottom line is that people who have mortgages on their homes now are much better qualified and those loans are very well underwritten.

But what about all the potential foreclosures once Federal moratoriums are lifted?

Consider this. According to the Mortgage Bankers Association, 62% of all US homes have a mortgage. Taken together, EQUITY for those mortgaged properties surged to more than $1.5 trillion. That’s an increase of more than 16.2% from a year earlier.

As of March 1st 2021, 4.96% of all mortgages were in forbearance. That’s down from 8.55% in June of 2020.

It’s hard to say how many of the remaining borrowers in forbearance have either experienced a real hardship or are just taking advantage of the fact they haven’t had to make a mortgage payment for the last 12 months.

In any case, it seems most will have enough equity to sell or refinance to avoid foreclosure.

What’s For Sale

Gulf Front Condos in Madeira Beach – Redington Beach—North Redington—Redington Shores

Todays Mortgage Rates

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829

Vacation Home Buyers Lock in Low Mortgage Rates 2021-04-02

Gulf Coast
Real Estate
Update

April 2nd, 2021

Vacation Home Buyers Storm the Beaches

An article in yesterdays Wall Street Journal entitled “Vacation Home Buyers Propped Up the Mortgage Market” stated “The pandemic set in motion a furious scramble to buy vacation homes”. The article went on to say that the number of buyers who locked in mortgage rates on second homes in February was up 93% from a year earlier. That is nearly triple the increase for mortgages on primary residences.

Bringing it closer to home, take a look at our market here for Gulf Front Condos for the 1st quarter of 2020 vs 2021.

It’s plain to see that many buyers chose our Gulf Beaches for their place in the sun. Some choose to take advantage of low mortgage rates but you may be surprised to know that half of these buyers paid cash..

Click below to see the comps

Condos on the Gulf. Available, Pending Contract and SOLD so far this year.

What’s For Sale

(Newest Listings first)

Rates are still low but trending up

Although mortgage rates remain low, we are beginning to see a pullback by those looking to enter the housing market. In fact, homebuyer demand has gone from 25% above pre-COVID levels at the start of the year, when mortgage rates hit record lows, to 8% above pre-COVID levels today.

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829

Remote workers heading to the beach 2021-03-15

Gulf Coast
Real Estate
Update

March 15th, 2021

Pandemic Ushers in a New Breed of Movers:

Snowmads

Zoombirds

“An increasing number of digital nomads have decided to join in the snowbird migration since they realized they can work from anywhere, so why not do it from places with warm weather and plenty of beaches and natural parks?” Maria Gates, a senior editor with StorageCafe, told MarketWatch. Another term catching on to describe these groups is “zoombirds.” Read the full article

What’s For Sale

(Newest Listings first)

Source: Wall Street Journal

Rates ticked up again

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829

Neighborhood volunteers are blocking companies from buying single family homes 2022-04-21

Gulf Coast
Real Estate Update

April 21st 2022

Homeowner groups
seek to stop investors
from buying houses to rent

Homeowners associations are rewriting rules as rental investors purchases surge. Small groups of neighborhood volunteers are blocking companies from buying single family homes rewriting homeownership rule books to thwart investor purchases of suburban housing. Homeowner associations spend much of their time enforcing rules related to things such as lawn care and parking, but they often have broad powers to regulate how homes are used. Some of these associations now believe that the rise in home purchases by rental investors has led to a decline in property maintenance and made their neighborhoods less desirable. Investors are also making it more difficult for local families to buy houses. These groups say homeowner tactics include placing a cap on the number of homes that can be rented in a particular neighborhood or requiring that rental tenants be approved by the association board. In most cases, associations need at least a two thirds majority to pass these measures.

Gulf Front Condo

Ocean Sands

$775,000

Mortgage Rates
Exceed Five Percent

Mortgage rates increased for the seventh consecutive week, as Treasury yields continued to rise. While springtime is typically the busiest homebuying season, the upswing in rates has caused some volatility in demand. It continues to be a seller’s market, but buyers who remain interested in purchasing a home may find that competition has moderately softened.

What’s For Sale

Income Properties

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829

You can take it with you 2022-04-13

Gulf Coast
Real Estate Update

April 13th 2022

Homestead Exemption
Save Our Homes Cap

You can take it with you!

…even if you downsize

Most everyone knows that the standard homestead deduction is $50,000. So, if your homes assessed value is $500,000 that $50,000 homestead comes off the top thereby reducing your taxable (assessed value) to $450,000 which saves you about $1,000 per year depending on the municipality you live in.

But the real benefit is the “save our homes cap” (SOH). The SOH cap limits the increase of your homes taxable value each year. The maximum increase in taxable value is limited to 3% or the annual consumer price index (CPI) whichever is lower. The SOH has been in effect since 1992 when Florida voters approved the amendment to the Florida Constitution to prevent homeowners from being “taxed out” of their homes in an escalating market.

The Florida Save Our Homes Cap (SOH) saves you thousands of dollars on Real Estate taxes for as long as you live in your home. Now let’s take a look at how you can take those savings with you if you decide to move. These benefits can transfer if you UPSIZE or DOWNSIZE to any home located in any County in the State of Florida.

For Example:

Your Current Homestead

If you are upsizing it’s a fairly simple calculation; you take your accumulated amount of your SOH cap and transfer it to your new home and your Assessed Value drops accordingly. Then subtract your $50,000 Homestead Exemption to arrive at your taxable value..

If you are downsizing you transfer a percentage of your SOH benefits. This is calculated by dividing the Just Value of your new home by the Just Value of your old home. This will give you a percentage

(in our example below it is 80%). Now multiply your accumulated SOH differential from your old home times the percentage to determine the new SOH reduction. Then subtract your $50,000 Homestead Exemption to arrive at your taxable value.

Downsize formula: $400,000 / $500,000 = 80%
80% x $250,000 = $200,000

To see what your current SOH value is you can go to the Pinellas County Property Appraiser website: pcpao.org On the left side bar click Search Our Database then By Address. Enter your address and you will be taken to a link, click the link to proceed to your full property record. Note the Just/Market Value and the Assessed Value in the most recent tax year. Subtract Assessed Value from Just/Market Value and that is your accumulated SOH benefit.

If you, a family member or friend have sold a home this year make sure you or they file Homestead and apply for a transfer of the accumulated SOH benefit by the end of the year.

If you have any questions please give me a call.

Mortgage Rates
Continue Climbing

Mortgage rates have increased 1.5 percentage points over the last three months alone, the fastest three-month rise since May of 1994. The increase in mortgage rates has softened purchase activity such that the monthly payment for those looking to buy a home has risen by at least 20 percent from a year ago.

What’s For Sale

Income Properties

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829

Higher tax bills around the corner 2022-04-08

Gulf Coast
Real Estate Update

April 2nd 2022

Higher Tax Bills
Around the Corner

Local property appraisers say recent surge of Tampa Bay real estate values could cause sticker shock when residents get their property tax notices later this summer. Pinellas County Property Appraiser Mike Twitty. stated increases are likely to exceed any in the past 10 years. Most property owners, particularly homestead property owners will be shielded from most of that increase because of the Same Our Homes Assessment Cap which limits tax increases to no more than 3% per year for Primary residents and 10% for investment properties and second homes. New homeowners are going to feel the brunt of the increase as these properties will be appraised just below full market value.

Source: Tampa Bay Times ( Full Article )

One of a kind

Gulf-Side Beach House

Three-bedroom, three full bath split plan, completely furnished and steps away from easy beach access with no streets to cross. This beach house is upgraded, tastefully remodeled and completely furnished. Perfect for a private beach get-away or an AIRBNB vacation rental goldmine. ( More )

Mortgage Rates
Continue Climbing

What’s For Sale