Real Estate Prices in Pinellas Bump Up

Melissa Yardy St. Pete Beach

Tampa Bay Times quoted today that "Hundreds more homes sold across Tampa Bay last month than the year before, as tight supplies sent prices rising and helped the market build in strength."  CoreLogic said this week that there is a nationwide surge as values climb and supplies dwindle after the market's six-year slump.  American home prices rose 5 percent in September, the biggest yearly increase since 2006.

In St. Pete Beach and Treasure Island statistics show a rise in condo sales:

Time Period	Number Sold	Average Sale Price
September - Novemeber 2011	23	$253,000
September - Novemeber 2012	51	$258,000

 As well as single family home prices:

Time Period	Number Sold	Average Sale Price
September - Novemeber 2011	31	$541,000
September - Novemeber 2012	28	$623,000

Inventory is at a 6 year low, making it a good time to list and sell your property in the upcoming seasonal market, January through May.  For more local real estate information visit www.MelissaYardy.com

THE END IS NEAR FOR FORGIVENESS

Melissa Yardy St. Pete Beach

THE END IS NEAR FOR FORGIVENESS

Now that the election is over and I want to make everyone aware that the The Foreclosure
Relief Act expires naturally at the stroke of midnight on December 31st, 2012 which means any short sale closings, deed in lieu of foreclosure, mortgage modifications with principle forgiveness and foreclosures with waivers of defiency, that occur, (which means it closes or is signed off by the
lender) on or after January 1st, 2013 will likely incur ordinary income tax on the borrower.

This IRS ruling on December 20th, 2007 created an opportunity for homeowners to sell their
primary residence less than what was owed, and although they would still receive a 1099 for
the difference but this phantom income was not taxable as if it was income for that year to
the homeowner. This ruling applied to most homeowners since the limit was 2 million. At the time, as a Realtor, is was a huge benefit to give these already distressed homeowners some relief and a little less to worry about.  Over the last 5 years, it has been somewhat customary and I'm sure most
Realtors and homeowners do not realize this exemption is almost at it's end.

As an example, if a homeowner has a $300,000 mortgage and the lender only receives $200,000
and cancels the debt, in a short sale then the seller would receive a 1099 for $100,000 for that
year as if they had received that much income for the year. If that taxpayer pays 15% taxes on  their income then they would owe $15,000 in additional taxes.  This additional burden would likely prohibit them from getting on their feet and moving past an already horrible situation.

I would encourage all Realtors to contact their congressman and make it known how important
that this Act be extended past this quickly nearing deadline.

Short Sales and Arm's Length

Melissa Yardy St. Pete Beach

In the homes sales market of these days, most buyers have an ample opportunity of purchasing exiting home through the purchase of what is referred to as ‘short sale’ property. Short sale describes the situation in which the existing owner is no longer capable of affording the keeping up of the repayments of mortgage or repaying of the loan. At this point, the seller can ask the bank to settle that mortgage at value that is that what the borrower owes.

In 2011, a program to assist the owners of homes that were distressed was launched by the Bank of America. According, to Melissa Yardy, this is one of those great innovations that are very vital in helping the economy in general and the owners of homes in particular. The new program is offering incentives of relocation up to $20,000 to the owners of homes that are in distress.
As a professional in real estate, Melissa Yardy believes that this will go a long way in helping very many families and owners of homes who are capable of demonstrating hardship that can be verified as well as providing the necessary paperwork for ‘unqualifying’ for the mortgage. This is without doubt a very great stride towards mending the American market of real estate.
The subsequent step is for the defaulting customers of Bank of American and it is suggested that they should contact Realtor so that they can get started. It is almost a requirement that a real estate agent that is licensed should do the marketing of this property so that he or she can find a willing buyer within arm’s length transaction. The term arm’s length describes transaction in real estate whereby the purchasers and sellers of parcel of land or property act independently in a way such that they are not in any way related to the other.
The arm’s length transaction idea offers an assurance to the real estate transactions buyers and sellers that they are acting in their best interests and they are not subjected to any form of influence from the outside. In the transactions that are not within arm’s length, there is high likelihood of some other factors which may have influence on the transaction and in some instances to the exchange value as well. This concept is very important because it is very common way that is used in determining the fair value for the market.

 

Melissa Yardy St. Pete Beach REAL ESTATE CHEESECAKE

Just like my favorite dessert with the perfect ingredients, so is today's real estate market.   The National Association of Realtors showed that a strong rise in home price from a year ago, in fact 9.4% higher for the median prices existing home sold.  Interestingly enough, while prices are up compared to only one year ago, mortgage rates are lower and incomes are up so homes are slightly more affordable to the median income family.
The sugar in this fabulous recipe is that the prices are still almost half of what they were in 2005 so that's a 50% off sale.  Now, if you are an investor buying property to rent out, here's the real icing on the cake, or cheesecake, rent's for properties have not decreased, in fact in our area, rents have increased, making a great time to invest.  It's the perfect ingredients to make it a great time to
buy.
For more information on the Pinellas County real estate market, visit www.melissayardy.com

TOP RETURN ON INVESTEMENT

Melissa Yardy St. Pete Beach TOP RETURN ON INVESTMENT DOLLAR.
It's amazing how well an investor of real estate can do in real estate in our market today.  A client of ours just purchased a townhouse in Lake Forest Condominium in Pinellas Park.  It a fairly large complex of wooden construction and is located in mid Pinellas county.  The purchasers bought the property at $50,000 and put about $15,000 to update the kitchen, bath, carpet and paint and it's beautiful condition.  Based on the rental market they are advertising it for rent for $1500 per month.  Their taxes and insurance is about $100.00 per month and the maintenance fee is $385.00 leaving them a net of $1015.00 per month so their earning a whopping 18.7% on their investment, if the
property is rented the whole year and they have no repairs.  That's an incredible return compared to leaving that money in the bank.  Now is a good time to buy real estate !! Visit my website www.melissayardy.com

St Pete Beach Real Estate: Good Market? Bad Market?

St Pete Beach Real Estate: Good Market? Bad Market?: Melissa Yardy St. Pete Beach Good Market? Bad Market? This seems to be the question I get on a regular basis about Real Estate, specific...

Melissa Yardy St. Pete Beach

Buyer's Market? Seller's Market?

Melissa Yardy St. Pete Beach

Buyer's Market?  Seller's Market?

This seems to be the question I get on a regular basis about Real Estate, specifically "How is the real estate market?"  This is a question that in 2009 evoked shutters from the responder who has been a real estate practitioner since very little was good about being in the real estate business. In 2010 we started to notice some improvement and at the end of the 2011 quarter we definitely started to notice a turn around in Pinellas County and the Gulf Beaches. 

By the beginning of 2012 we noticed a significant decrease in listing inventory and fewer and fewer short sales and foreclosure were available.  Now, seemingly overnight we have a significant shortage of homes from buyers to choose from and multiple offers on properties new on the market.  This of course, means that there are suddenly multiple bidders and prices are going up.  That's great news for homeowners and that would typically mean it's a Sellers Market.

Interestingly enough, and the first time in my 30 plus years in this business, it is also a Buyer's Market.   The housing price index's show that homes have never been more affordable and with rates below 4% at this time, it is a great time to buy and with all indications buying real estate is a great
investment.