ECAR: Market shows no signs of slowing in November

The local market showed no signs of slowing in November, according to stats released by the Emerald Coast Association of Realtors, with the overall existing housing market zooming up 151 units, from 168 sold in Nov. 2009 to 319 in the same time period this year. 

Local Realtors say buyers not only include a mix of seasoned investors and move-ups, but many newcomers.

“The market is great right now,” said newlywed Chris Leavenworth who along with his wife, Anya, is gearing up to buy his first home. “A couple of years ago my wife and I would not have been able to afford anything. Now we are looking at houses in our price range that we could only dream about before.”

Still, Leavenworth had concerns about the availability of low-interest financing that doesn't require perfect credit or a large down payment. “Our credit is not the best and we don't have much to put down, so we are looking for programs that may offer us a loan anyway,” he said.

To learn more, Leavenworth attended ECAR's free Dec. 16 class, “How to Buy A Bargain Home With FHA,” where three major programs were discussed in detail: Buying a foreclosure with only $100 down, rolling home-improvement costs into the permanent mortgage, and an “energy efficient” mortgage that offers an increased loan amount, providing the extra funds will be used to make energy upgrades.

Because FHA mortgages, other than the $100 down foreclosure program, typically require a down payment equal to 3 1/2 percent of the purchase price, ways for coming up with these funds was also discussed.

“I have a sheet that lists 23 ways to come up with the down payment,” said area mortgage broker and ECAR affiliate member, Sue Botelho, a speaker at the class. “One family even raised the necessary funds by holding a garage sale. Others have financed cars or accepted monetary gifts from family members.”

Additionally, qualifying buyers are planning to use money gained from the first-time homebuyer's tax credit to pay back secured loans used to fund a down payment. Congress recently extended the federal incentive's deadline, allowing eligible homebuyers who purchase a home between Nov. 7, 2009 and April 30, 2010 to qualify, if they haven't owned a primary residence in the past three years.

Another tax credit aimed at repeat buyers allows owners who have used their home being sold or vacated as a primary residence for at least five consecutive years of the past eight to be eligible for up to a $6,500 tax credit when they buy a new one.

With so many appealing programs and terms it's little wonder that existing housing sales have shot up in the local area. According to ECAR's stats, as compared to last November, the number of existing single-family homes sold jumped from 128 to 226 units along the Emerald Coast, and from 17 to 23 in Destin.

Sales of existing condos more than doubled, going from 31 to 65 units along the Emerald Coast and from 6 to 15 in the Destin area. 

The market flurry, however, hasn't put a damper on the pros' sage advice of enlisting the aid of Realtors with market transactions.

“Please don't try buying a house without one,” cautioned ECAR president-elect Mary Anne Windes, broker-owner of Real Estate Professionals of Destin, noting that Realtors are educated, experienced, well-networked and upheld to an enforceable code of ethics. “It could prove to be the most expensive mistake of your life.”

When choosing a Realtor, Windes suggests that in addition to considering education and experience, buyers and sellers should “look for professional designations and credentials, and ask for a list of local satisfied customers with telephone numbers. Don't be shy- make the calls. People are generally happy to tell you how good or how bad their experience was.” 

This article was contributed to The Log by the Emeald Coast Association of Realtors.