Santa Claus is depicted in many ways among the world's various cultures. You can see dozens of them in the Sarasota home of Sandy and Jim Slaminko on Sunday, Dec. 16.
That's when the couple opens their Country Creek house, off Proctor Road, for a public tour to benefit Baby Basics, a volunteer organization that distributes free diapers to working-poor families in the community.
Sandy Slaminko began collecting Santas more than 35 years ago because, well, she just loves Santa.
"I had a wonderful childhood and Santa was always good to me," she said. "Then I married a man who has been Santa to me for more than 40 years, and, while our four children were growing up, I began to gather more and more Santa things, because to me the objects represent love, family and happy times. And I think they do for most people.
"When visitors wander through my rooms of Santas, some will often start to cry a bit. One Santa or other will just trigger a flood of memories. It happens all the time."
The first Santa object that she can remember collecting is a pin that belonged to her grandmother in Boston and came to her as a gift. Now Slaminko is a grandmother of seven.
Every room of the Slaminkos' 3,100-square-foot home is filled with Santa-themed memorabilia, from area rugs, throw pillows, bedspreads, lamps, paintings, salt-and-pepper shakers, coasters and waste paper baskets, to cookie jars and a Santa ironing board in the kitchen, to hundreds of Santa figurines arranged in seasonal vignettes throughout the home and lanai. The collector says she has in excess of a thousand items, but has never really done a full inventory because the task seems too daunting.
"My daughter and I tried once," she said, "but we soon gave up. I'd probably be shocked to know just how many there really are. Although, I don't suppose that would stop me from acquiring more."
Since last December, Slaminko has increased her collection by eight -- not counting a few gift Santas she received. Her birthday is in May, but there is always one wrapped Santa, or more, among her springtime presents.
The Slaminkos moved from New Jersey (they are both from Pittsburgh) to Sarasota 18 years ago and lived in Harbor Acres until they bought in Country Creek four years ago. The home is actually a bit smaller than their previous one, but the grounds are more expansive; Sandy is an avid gardener. One of the bedrooms proved to be the perfect setting for the Slaminkos' carved-walnut Eastlake Victorian antique bed, which has its own Santa spread this time of year.
Slaminko stores the Santa collection inside her home, except for the largest items, which have a section of the garage. A five-foot-tall Santa has his own cedar box. "There are no linens in my linen closets," said the collector. "They are full of Santas."
Slaminko starts unpacking her decorations in early October and is finished putting things out in mid-December. It takes Sandy and Jim three weeks to take everything down and pack the Santas away. For the past few years, Slaminko has taken photos of her finished room arrangements so that she can repeat a scheme or change it from year to year.
The collector does not organize her Santa objects by value or culture, but mixes and matches Santas from around the world, based on size and style compatibility.
"I spend a great deal of time arranging," she said. "I just keep moving pieces around until a certain vignette looks right to my eye. Placement is very important to me, and although it may not look like it to the visitor, I do leave blank spaces for the eye to rest before taking in more. I do, however, challenge myself to use all the existing nail holes and not to add more."
To keep a holiday theme consistent throughout her home, Slaminko slipcovers her floral-pattern dining room chairs in rich green damask and replaces her window valances in that room with same seasonal green. She drapes live garland on the fireplace mantel and on high pieces of antique furniture.
In addition to Santa jewelry, plates, bells, stockings, Santa animated toys, and museum-quality carved Santas both antique and new, Slaminko has six fully decorated trees in the house. The one on the lanai, done in shells and natural Florida finds, is Jim's domain, and he often leaves the tree up into February, enjoying it as garden sculpture. On the large tree in the family room is a collection of hand-made ornaments depicting Santa figures from other cultures, as well as characters from Dickens' "A Christmas Carol" and other famous books.
The Slaminko home also has vintage Santa-themed greeting cards, magazine covers and books depicting Santa Claus, as well as night lights, walking sticks, cross-stitch embroidery, even Santa toilet seat covers and Santa soap dispensers in the elaborately decorated bathrooms. And don't miss the framed shopping bags, Teddy bear Santas, bobble-head Santas and Russian nesting dolls.
Slaminko enjoys her holiday decorations until the end of January. "That's my month to sit quietly and reflect on my Santa things," she explained. "They are like old friends whom I don't see often enough. Each night I sit in a different spot with a cup of tea and just relax and enjoy the memories that these Santas hold for me. I know how and why I came by each and every one of them. And, yes, of course, I still believe Santa."
The PMI Group's increased premium levels, which have already taken effect, are roughly similar, but the company also announced that it will no longer insure any mortgages where the down payment is less than 5 percent and the borrower's FICO score is below 620.
Source : heraldtribune.com
Friday, December 14, 2007
Low-FICO borrowers to pay higher fees
Call it the credit-risk hangover following the housing-boom binge: Home buyers and refinancers who can't come up with sizable down payments, and whose FICO credit scores are below 680, are about to get squeezed in the mortgage market.
Giant investors Fannie Mae and Freddie Mac are imposing significant increases in fees for a broad range of borrowers who have lower than 30 percent down payments and formerly were treated as "prime" credit applicants. At the same time, the two largest private mortgage insurers -- MGIC Corp. and PMI Group -- are raising premiums on consumers who have low down payments and FICO scores in the mid to upper 600s. The added costs for some potential home buyers could mount into the thousands of dollars -- either upfront at settlement or in the form of higher interest rates.
Each of the companies says it has experienced unexpectedly high losses on loans with these characteristics and must now revise prices upward to handle the elevated risks. But some mortgage bankers and brokers say the higher costs and down payments will make homeownership impossible or very difficult for a large number of borrowers, and slow any future housing market recovery.
Though Fannie Mae's and Freddie Mac's revised fees won't take effect until March 1, major lenders who sell loans to the two investors began imposing the surcharges on applicants at the beginning of December. Some mortgage loan officers are upset that clients with FICO scores close to 700 -- far above the once-traditional 620 cutoff point between "prime" and "subprime" -- are now being charged more.
"This is outrageous," said Steven Moore, a mortgage broker with 1st Solution Mortgage in Falls Church, Va. "On a loan of $300,000 and with a credit score of 675 -- which is not a bad score -- and a 75 percent loan-to-value ratio (25 percent down payment), the cost is an additional $2,250 per loan." If the same borrower wants to do a cash-out refinancing to consolidate debt, the new Fannie-Freddie fee schedule will add another $1,500 to total costs on a $300,000 mortgage, said Moore. On a $400,000 loan, he estimates the extra fees would total $5,000.
Jeff Lipes, president of Family Choice Mortgage in Wethersfield, Conn., said the new emphasis on higher FICO scores and larger down payments could greatly complicate rate quotations. "To get any sort of quote, you're going to need to know your FICO score in advance, and before actually applying you may need to take some steps to raise your FICO score."
Under previous standards, applicants with scores comfortably above 620 "could reasonably assume" they would qualify for a good rate, said Lipes. "But now we've got this whole new gray area between 620 and 680" FICOs under the revised Fannie/Freddie risk-based pricing guidelines. Joint applicants where one spouse or partner has a FICO score below the new guidelines will need to take special care, according to Lipes, so as not to trigger higher credit-risk fees.
Lipes predicts loan officers and brokers will make far greater use of so-called "rapid rescoring" services offered by some local credit bureaus to increase applicants' scores legally by correcting errors, lowering debt utilization ratios on credit card accounts and other techniques.
Here's a quick overview of the new policies from Fannie and Freddie affecting loan applications where the down payment amount is less than 30 percent:
If the borrower's credit score is less than 620, a new 2 percent fee will be imposed.
If the score is between 620 and 639, the surcharge will be 1 3/4 percent.
If it is between 640 and 659, the add-on will be 1 1/4 percent.
On scores between 660 and 679, the surcharge will be three-fourths of 1 percent.
According to mortgage banker Lipes, if applicants choose to roll the higher fees into the interest rate on the mortgage, the new Fannie/Freddie charges generally will increase rates by anywhere from one-eighth to one-half of 1 percent.
The MGIC mortgage insurance premium increases, which were scheduled for announcement the first week of December, are expected to have the heaviest impacts on borrowers making down payments of less than 3 percent and whose FICO scores are below 660, according to company officials. On such loans, MGIC is expected to raise premiums to 1.7 percent per $100,000 of loan amount, up from the current premium level of 0.96 percent. On a $200,000 mortgage, that would raise the annual premiums from $1,920 to $3,400.
The PMI Group's increased premium levels, which have already taken effect, are roughly similar, but the company also announced that it will no longer insure any mortgages where the down payment is less than 5 percent and the borrower's FICO score is below 620.
Source : heraldtribune.com
Giant investors Fannie Mae and Freddie Mac are imposing significant increases in fees for a broad range of borrowers who have lower than 30 percent down payments and formerly were treated as "prime" credit applicants. At the same time, the two largest private mortgage insurers -- MGIC Corp. and PMI Group -- are raising premiums on consumers who have low down payments and FICO scores in the mid to upper 600s. The added costs for some potential home buyers could mount into the thousands of dollars -- either upfront at settlement or in the form of higher interest rates.
Each of the companies says it has experienced unexpectedly high losses on loans with these characteristics and must now revise prices upward to handle the elevated risks. But some mortgage bankers and brokers say the higher costs and down payments will make homeownership impossible or very difficult for a large number of borrowers, and slow any future housing market recovery.
Though Fannie Mae's and Freddie Mac's revised fees won't take effect until March 1, major lenders who sell loans to the two investors began imposing the surcharges on applicants at the beginning of December. Some mortgage loan officers are upset that clients with FICO scores close to 700 -- far above the once-traditional 620 cutoff point between "prime" and "subprime" -- are now being charged more.
"This is outrageous," said Steven Moore, a mortgage broker with 1st Solution Mortgage in Falls Church, Va. "On a loan of $300,000 and with a credit score of 675 -- which is not a bad score -- and a 75 percent loan-to-value ratio (25 percent down payment), the cost is an additional $2,250 per loan." If the same borrower wants to do a cash-out refinancing to consolidate debt, the new Fannie-Freddie fee schedule will add another $1,500 to total costs on a $300,000 mortgage, said Moore. On a $400,000 loan, he estimates the extra fees would total $5,000.
Jeff Lipes, president of Family Choice Mortgage in Wethersfield, Conn., said the new emphasis on higher FICO scores and larger down payments could greatly complicate rate quotations. "To get any sort of quote, you're going to need to know your FICO score in advance, and before actually applying you may need to take some steps to raise your FICO score."
Under previous standards, applicants with scores comfortably above 620 "could reasonably assume" they would qualify for a good rate, said Lipes. "But now we've got this whole new gray area between 620 and 680" FICOs under the revised Fannie/Freddie risk-based pricing guidelines. Joint applicants where one spouse or partner has a FICO score below the new guidelines will need to take special care, according to Lipes, so as not to trigger higher credit-risk fees.
Lipes predicts loan officers and brokers will make far greater use of so-called "rapid rescoring" services offered by some local credit bureaus to increase applicants' scores legally by correcting errors, lowering debt utilization ratios on credit card accounts and other techniques.
Here's a quick overview of the new policies from Fannie and Freddie affecting loan applications where the down payment amount is less than 30 percent:
If the borrower's credit score is less than 620, a new 2 percent fee will be imposed.
If the score is between 620 and 639, the surcharge will be 1 3/4 percent.
If it is between 640 and 659, the add-on will be 1 1/4 percent.
On scores between 660 and 679, the surcharge will be three-fourths of 1 percent.
According to mortgage banker Lipes, if applicants choose to roll the higher fees into the interest rate on the mortgage, the new Fannie/Freddie charges generally will increase rates by anywhere from one-eighth to one-half of 1 percent.
The MGIC mortgage insurance premium increases, which were scheduled for announcement the first week of December, are expected to have the heaviest impacts on borrowers making down payments of less than 3 percent and whose FICO scores are below 660, according to company officials. On such loans, MGIC is expected to raise premiums to 1.7 percent per $100,000 of loan amount, up from the current premium level of 0.96 percent. On a $200,000 mortgage, that would raise the annual premiums from $1,920 to $3,400.
The PMI Group's increased premium levels, which have already taken effect, are roughly similar, but the company also announced that it will no longer insure any mortgages where the down payment is less than 5 percent and the borrower's FICO score is below 620.
Source : heraldtribune.com
Where did 'Santa' come from?
The story of Santa Claus dates back to fourth-century Greece and has its origins in St. Nickolaos, a pious young priest who later became the Bishop of Myra. Known for his compassion and generosity to the poor, he was venerated as a saint after his death.
It's believed that 17th-century Dutch settlers to New Amsterdam, New York, who called St. Nikolaos by the name of Sinterklaas, brought the tradition of gift giving with them to America where Sinterklaas' name evolved into Santa Claus.
The modern physical description of Santa Claus owes much to writers Washington Irving, in his 1809 "History of New York," and to Clement Clarke Moore, when, in his 1823 book, "The Night Before Christmas," he generally described the impish bringer of gifts as "a right jolly old elf" and gave him reindeer that fly.
In the late 1800s, political cartoonist Thomas Nast (in Harper's magazine) elaborated on the physical depiction of Santa and provided him with a North Pole connection, while also inventing the naughty/nice list.
But the individual who most clearly defined the Santa for whom American children leave cookies and milk on Christmas Eve, was Swedish commercial artist Haddon Sundblom. In the 1930s, he conceived a rotund and jolly fellow wearing a red suit, wide black belt and black boots. Haddon gave him sparkling eyes, rosy cheeks and a bottle of Coca-Cola. Yes, Santa was an ad for the beverage company. The color illustration appealed to so many families, that Haddon's Santa evolved into the one that the United States adopted. Rudolph came later in 1939, thanks to a Montgomery Ward advertising campaign.
Source : heraldtribune.com
It's believed that 17th-century Dutch settlers to New Amsterdam, New York, who called St. Nikolaos by the name of Sinterklaas, brought the tradition of gift giving with them to America where Sinterklaas' name evolved into Santa Claus.
The modern physical description of Santa Claus owes much to writers Washington Irving, in his 1809 "History of New York," and to Clement Clarke Moore, when, in his 1823 book, "The Night Before Christmas," he generally described the impish bringer of gifts as "a right jolly old elf" and gave him reindeer that fly.
In the late 1800s, political cartoonist Thomas Nast (in Harper's magazine) elaborated on the physical depiction of Santa and provided him with a North Pole connection, while also inventing the naughty/nice list.
But the individual who most clearly defined the Santa for whom American children leave cookies and milk on Christmas Eve, was Swedish commercial artist Haddon Sundblom. In the 1930s, he conceived a rotund and jolly fellow wearing a red suit, wide black belt and black boots. Haddon gave him sparkling eyes, rosy cheeks and a bottle of Coca-Cola. Yes, Santa was an ad for the beverage company. The color illustration appealed to so many families, that Haddon's Santa evolved into the one that the United States adopted. Rudolph came later in 1939, thanks to a Montgomery Ward advertising campaign.
Source : heraldtribune.com
Housing plan may forestall defaults
As many as 3,000 Southwest Florida homeowners could postpone or even avoid foreclosure thanks to President George W. Bush's plan to freeze interest rates on some subprime mortgages, according to Herald-Tribune estimates.
Banks could save millions of dollars they otherwise would have spent in the foreclosure process, and the region's already swollen supply of unsold homes might not increase as fast.
"If we can stop those foreclosures from coming on and flooding the market, it will be a big help," said Barbara Anson, an agent with Wagner Realty in Myakka City. "A few thousand fewer foreclosures will keep inventories from rising and will help the market bottom out."
But as Treasury Secretary Henry Paulson said Monday, the measure is no "silver bullet."
It will not eliminate the fundamental problems that have depressed real estate markets across the country and have made lenders skittish about lending to anyone except those with the most pristine credit.
During the real estate boom, investors bought far more houses than they can now afford to carry. As result, inventories of unsold homes have risen to unnaturally high levels, causing prices to fall, sales to slow and foreclosures to rise.
The sharp increase in problem loans has caused lenders to stop lending to people with poor credit, and bankers say they are not going to loosen credit again until the real estate market stabilizes.
"Until we see valuations leveling off and starting back up, we will continue to feel real stress in terms of lending against real estate across the entire state," said John O'Neil, chief executive of Sarasota-based Century Bank.
President Bush made it clear Thursday that his plan "will not bail out lenders, real estate speculators or those who made the reckless decision to buy a home they knew they could not afford."
Instead, his plan will freeze interest rates for five years on subprime adjustable rate mortgages for homeowners who meet certain criteria.
The homeowners must live in their homes, be current on their payments and prove they would not be able to handle higher interest rates or refinance with a traditional fixed-rate mortgage.
The White House plan does not force mortgage companies to give eligible homeowners a break. It is voluntary.
Bush has said that 600,000 people in the United States would be eligible to benefit from the freeze. That represents 12 percent of all subprime borrowers.
Based on that ratio, about 55,000 of those beneficiaries would reside in Florida.
Determining how many of those 55,000 live in Southwest Florida is more difficult. The Mortgage Bankers Association, which calculated the number of subprime mortgages at the state level, did not have similar statistics for the county level.
But Manatee, Sarasota and Charlotte counties have logged about 5.5 percent of the foreclosure filings in the state, according to RealtyTrac statistics. If the three counties have a similar portion of the state's subprime mortgages, about 3,000 homeowners would benefit from Bush's plan.
"Keeping those people from foreclosure will help lessen our ever bulging inventories," said Ross Bryans, an agent with Central Park Realty. "It will help soften our landing."
In early November, there were 8,411 unsold homes and 4,653 condos listed for sale in Sarasota County. That represented a 31-month supply of homes and a 40-month supply of condos.
A healthy market generally boasts inventory levels of six months.
If 3,000 more homes and condos were added to the market because of foreclosure, supplies of homes would increase by three months and condos by four months, according to Herald-Tribune estimates.
Keeping that from happening is unquestionably positive, real estate agents say.
But the Bush plan does not do anything to address the problem that speculators are continuing to default on their loans at an accelerating rate.
"A large percentage of our problem loans are where the property is not the owner's primary residence," said O'Neil of Century Bank. "The people walking away from property are typically investors. Primary owners will claw and scrape to stay in their homes."
And rather than help real estate agents and mortgage brokers, some critics argue that the moves will actually hurt their business.
"It locks people into their homes," said Nancy Detert, a former mortgage broker who is running for the state Senate. "These people will not sell for five years because they won't want to give up their low teaser rates. If they move with their low credit scores, their interest rates will go up."
But the great unanswered question, said Gordon Hester, president of Gulfcoast Mortgage Solutions on Siesta Key, is whether the Bush plan will put lenders at ease.
"For the market to change, the lender has to get back in the game," Hester said. "If this gives the lender confidence, then it's positive. Right now, banks don't want to make any loan unless it's a no-brainer."
Hester added that banks are not going to alter their cautious approach until they see some results, and that may take a long time.
"Everyone is skittish, and confidence is low," he said. "People are sitting on the sidelines. They see problems in the economy. They think we're heading to recession."
For Budge S. Huskey, senior vice president for the Florida Region for NRT, the parent of Coldwell Banker, the Bush plan is still a move in the right direction.
"It will result in a calming of the market," Huskey said. "Lenders will not have to take on as much inventory and will not have such a huge disposition cost. It will also be better for neighborhoods."
On the whole, it is a net positive, said Geoff Allison, co-owner of Gulf Atlantic Mortgage.
"The goal of the plan is to stop the bleeding, to stop the frenzied foreclosure process that keeps feeding on itself," Allison said. "I'm not in favor of the government getting involved, but this may help us get through the cycle."
Source : heraldtribune.com
Banks could save millions of dollars they otherwise would have spent in the foreclosure process, and the region's already swollen supply of unsold homes might not increase as fast.
"If we can stop those foreclosures from coming on and flooding the market, it will be a big help," said Barbara Anson, an agent with Wagner Realty in Myakka City. "A few thousand fewer foreclosures will keep inventories from rising and will help the market bottom out."
But as Treasury Secretary Henry Paulson said Monday, the measure is no "silver bullet."
It will not eliminate the fundamental problems that have depressed real estate markets across the country and have made lenders skittish about lending to anyone except those with the most pristine credit.
During the real estate boom, investors bought far more houses than they can now afford to carry. As result, inventories of unsold homes have risen to unnaturally high levels, causing prices to fall, sales to slow and foreclosures to rise.
The sharp increase in problem loans has caused lenders to stop lending to people with poor credit, and bankers say they are not going to loosen credit again until the real estate market stabilizes.
"Until we see valuations leveling off and starting back up, we will continue to feel real stress in terms of lending against real estate across the entire state," said John O'Neil, chief executive of Sarasota-based Century Bank.
President Bush made it clear Thursday that his plan "will not bail out lenders, real estate speculators or those who made the reckless decision to buy a home they knew they could not afford."
Instead, his plan will freeze interest rates for five years on subprime adjustable rate mortgages for homeowners who meet certain criteria.
The homeowners must live in their homes, be current on their payments and prove they would not be able to handle higher interest rates or refinance with a traditional fixed-rate mortgage.
The White House plan does not force mortgage companies to give eligible homeowners a break. It is voluntary.
Bush has said that 600,000 people in the United States would be eligible to benefit from the freeze. That represents 12 percent of all subprime borrowers.
Based on that ratio, about 55,000 of those beneficiaries would reside in Florida.
Determining how many of those 55,000 live in Southwest Florida is more difficult. The Mortgage Bankers Association, which calculated the number of subprime mortgages at the state level, did not have similar statistics for the county level.
But Manatee, Sarasota and Charlotte counties have logged about 5.5 percent of the foreclosure filings in the state, according to RealtyTrac statistics. If the three counties have a similar portion of the state's subprime mortgages, about 3,000 homeowners would benefit from Bush's plan.
"Keeping those people from foreclosure will help lessen our ever bulging inventories," said Ross Bryans, an agent with Central Park Realty. "It will help soften our landing."
In early November, there were 8,411 unsold homes and 4,653 condos listed for sale in Sarasota County. That represented a 31-month supply of homes and a 40-month supply of condos.
A healthy market generally boasts inventory levels of six months.
If 3,000 more homes and condos were added to the market because of foreclosure, supplies of homes would increase by three months and condos by four months, according to Herald-Tribune estimates.
Keeping that from happening is unquestionably positive, real estate agents say.
But the Bush plan does not do anything to address the problem that speculators are continuing to default on their loans at an accelerating rate.
"A large percentage of our problem loans are where the property is not the owner's primary residence," said O'Neil of Century Bank. "The people walking away from property are typically investors. Primary owners will claw and scrape to stay in their homes."
And rather than help real estate agents and mortgage brokers, some critics argue that the moves will actually hurt their business.
"It locks people into their homes," said Nancy Detert, a former mortgage broker who is running for the state Senate. "These people will not sell for five years because they won't want to give up their low teaser rates. If they move with their low credit scores, their interest rates will go up."
But the great unanswered question, said Gordon Hester, president of Gulfcoast Mortgage Solutions on Siesta Key, is whether the Bush plan will put lenders at ease.
"For the market to change, the lender has to get back in the game," Hester said. "If this gives the lender confidence, then it's positive. Right now, banks don't want to make any loan unless it's a no-brainer."
Hester added that banks are not going to alter their cautious approach until they see some results, and that may take a long time.
"Everyone is skittish, and confidence is low," he said. "People are sitting on the sidelines. They see problems in the economy. They think we're heading to recession."
For Budge S. Huskey, senior vice president for the Florida Region for NRT, the parent of Coldwell Banker, the Bush plan is still a move in the right direction.
"It will result in a calming of the market," Huskey said. "Lenders will not have to take on as much inventory and will not have such a huge disposition cost. It will also be better for neighborhoods."
On the whole, it is a net positive, said Geoff Allison, co-owner of Gulf Atlantic Mortgage.
"The goal of the plan is to stop the bleeding, to stop the frenzied foreclosure process that keeps feeding on itself," Allison said. "I'm not in favor of the government getting involved, but this may help us get through the cycle."
Source : heraldtribune.com
Survey: November housing market disappoints
In a national monthly survey of real estate agents, Bank of America Securities summed up November as "another quiet month with few buyers swayed by lower prices."
Sarasota, the 45th largest market in the country, was included in the real estate survey released this month. Bank of America found that traffic "well below" agents' expectations.
"Buyer traffic deteriorated in November," the survey concluded. The "traffic index fell to 19.6 from 23.5 in October, well below agents' expectations."
A reading of 50 would suggest buyer traffic in line with agents' expectations.
Seventy percent of agents said traffic was below expectations, 22 percent said it was what they expected and 8 percent said it exceeded their expectations.
Despite the finding, some real estate agents are reporting an uptick in activity since the cold weather has set in up north.
"I have seen a big increase just in the past 10 days," says Lynn Robbins, director of business development for Coldwell Banker Residential Real Estate. "I had one home that did not show for a month and then -- bang -- it showed four times last week."
Robbins signed three contracts in the past two weeks. She estimated that activity including showings, calls and open house attendance is up about 20 percent from the autumn.
She also predicts a good high season in 2008 because the dollar is so weak.
Prices deteriorate
Sarasota's price index fell to 9.1 in November from 11.8 in October, pointing to sequentially lower home prices. Again, readings below 50 point to lower prices during the past 30 days.
Eighty-two percent of agents said prices were lower and 18 percent said they were unchanged.
In addition, incentives increased further, as the index came in at 22.5 in November -- from 17.2 in October -- with any reading below 50 indicating higher incentives. Fifty-five percent of agents said incentives were higher, while 45 percent said they were unchanged.
At Neal Communities the numbers tell the tale. The Lakewood Ranch-based company's performance for November included 14 new home sales in the Edenmore, Stone Ridge, Thornhill and Wexford at The Country Club in Lakewood Ranch villages, Forest Creek, The Harborage on Braden River, and Wisteria Park.
That was a total sales volume of $5,253,575, and compared with sales volume for the same 2006 period of $7,242,715. That is a 27.5 percent drop in sales volume, but an increase in the number of homes sold.
Twelve homes sold in November 2006.
"We believe that the robust traffic that we have seen for November is a true indicator that now is the time to buy," said Neal Communities President Pat Neal. "We're pleased that interest is increasing and are especially appreciative that the Realtor community is so involved in sales for our neighborhoods."
Rod Underdahl of Horizon Realty agrees that prices have gone down.
"They have dropped quite a bit," he said. "In several subdivisions where homes were selling for about $500,000 not so long ago they are now being offered at $350,000 to $375,000, which makes me think we must be nearing the bottom since there comes a point where sellers can't afford to take offers below what they owe on the home."
Robbins also pointed out that home sellers at year end face stiff competition from new home builders that often unload excess inventory at fire sale prices.
"You see some sweetheart deals in developer inventory at year end," she said.
Selling time increases
Deemed a "negative indicator for future pricing," it is taking longer to sell a house, the survey said.
The "time to sell" index actually improved to 21.7 in November from 13.6 in October, pointing to a longer time needed to sell a home during the past 30 days. Any reading below 50 indicates a longer time to sell.
Sixty-one percent of agents said the time to sell lengthened, 35 percent said it was unchanged, and 4 percent said it took less time to sell a home as compared with last month.
Linda Higgins, Realtor liaison at Lakewood Ranch Communities LLC, tends to disagree with the survey.
Higgins thinks some real estate agents she deals with are having "the best momentum in two years."
"The bottom is here because so many customers would rather take their homes off the market than go lower," she said.
Developers are saying that while incentives and upgrades are still on the table, base prices have flattened out.
Higgins thinks most will stay there.
For the first time in a "long time, some private home sellers are seeing multiple offers on resales," she said.
National trends
Nationally, agents noted price declines in every market that was surveyed, Bank of America reported.
"What was interesting is that few agents noted any positive buyer response to the lower prices, primarily as buyers remained concerned about buying before the bottom," the survey said.
The bank expects inventory to continue to rise and to push down prices.
It said that November typically would bring a 2 percent decline in inventory, but the lack of demand has led trends to buck the seasonal norm.
"We suspect that we will see a decline in inventory in December based on seasonality, but expect this to creep up again in the spring," the report said.
The bank also expects to see wider spreads on jumbo mortgages and tighter appraisals impacting sales.
"Agents noted that the increased spreads on jumbo mortgages as a result of tighter credit availability is hurting sales at the high end and more conservative appraisals are dampening overall volume," the report said.
The recent rally could continue briefly, "but should not persist given increased distress and impairments."
Source : heraldtribune.com
Sarasota, the 45th largest market in the country, was included in the real estate survey released this month. Bank of America found that traffic "well below" agents' expectations.
"Buyer traffic deteriorated in November," the survey concluded. The "traffic index fell to 19.6 from 23.5 in October, well below agents' expectations."
A reading of 50 would suggest buyer traffic in line with agents' expectations.
Seventy percent of agents said traffic was below expectations, 22 percent said it was what they expected and 8 percent said it exceeded their expectations.
Despite the finding, some real estate agents are reporting an uptick in activity since the cold weather has set in up north.
"I have seen a big increase just in the past 10 days," says Lynn Robbins, director of business development for Coldwell Banker Residential Real Estate. "I had one home that did not show for a month and then -- bang -- it showed four times last week."
Robbins signed three contracts in the past two weeks. She estimated that activity including showings, calls and open house attendance is up about 20 percent from the autumn.
She also predicts a good high season in 2008 because the dollar is so weak.
Prices deteriorate
Sarasota's price index fell to 9.1 in November from 11.8 in October, pointing to sequentially lower home prices. Again, readings below 50 point to lower prices during the past 30 days.
Eighty-two percent of agents said prices were lower and 18 percent said they were unchanged.
In addition, incentives increased further, as the index came in at 22.5 in November -- from 17.2 in October -- with any reading below 50 indicating higher incentives. Fifty-five percent of agents said incentives were higher, while 45 percent said they were unchanged.
At Neal Communities the numbers tell the tale. The Lakewood Ranch-based company's performance for November included 14 new home sales in the Edenmore, Stone Ridge, Thornhill and Wexford at The Country Club in Lakewood Ranch villages, Forest Creek, The Harborage on Braden River, and Wisteria Park.
That was a total sales volume of $5,253,575, and compared with sales volume for the same 2006 period of $7,242,715. That is a 27.5 percent drop in sales volume, but an increase in the number of homes sold.
Twelve homes sold in November 2006.
"We believe that the robust traffic that we have seen for November is a true indicator that now is the time to buy," said Neal Communities President Pat Neal. "We're pleased that interest is increasing and are especially appreciative that the Realtor community is so involved in sales for our neighborhoods."
Rod Underdahl of Horizon Realty agrees that prices have gone down.
"They have dropped quite a bit," he said. "In several subdivisions where homes were selling for about $500,000 not so long ago they are now being offered at $350,000 to $375,000, which makes me think we must be nearing the bottom since there comes a point where sellers can't afford to take offers below what they owe on the home."
Robbins also pointed out that home sellers at year end face stiff competition from new home builders that often unload excess inventory at fire sale prices.
"You see some sweetheart deals in developer inventory at year end," she said.
Selling time increases
Deemed a "negative indicator for future pricing," it is taking longer to sell a house, the survey said.
The "time to sell" index actually improved to 21.7 in November from 13.6 in October, pointing to a longer time needed to sell a home during the past 30 days. Any reading below 50 indicates a longer time to sell.
Sixty-one percent of agents said the time to sell lengthened, 35 percent said it was unchanged, and 4 percent said it took less time to sell a home as compared with last month.
Linda Higgins, Realtor liaison at Lakewood Ranch Communities LLC, tends to disagree with the survey.
Higgins thinks some real estate agents she deals with are having "the best momentum in two years."
"The bottom is here because so many customers would rather take their homes off the market than go lower," she said.
Developers are saying that while incentives and upgrades are still on the table, base prices have flattened out.
Higgins thinks most will stay there.
For the first time in a "long time, some private home sellers are seeing multiple offers on resales," she said.
National trends
Nationally, agents noted price declines in every market that was surveyed, Bank of America reported.
"What was interesting is that few agents noted any positive buyer response to the lower prices, primarily as buyers remained concerned about buying before the bottom," the survey said.
The bank expects inventory to continue to rise and to push down prices.
It said that November typically would bring a 2 percent decline in inventory, but the lack of demand has led trends to buck the seasonal norm.
"We suspect that we will see a decline in inventory in December based on seasonality, but expect this to creep up again in the spring," the report said.
The bank also expects to see wider spreads on jumbo mortgages and tighter appraisals impacting sales.
"Agents noted that the increased spreads on jumbo mortgages as a result of tighter credit availability is hurting sales at the high end and more conservative appraisals are dampening overall volume," the report said.
The recent rally could continue briefly, "but should not persist given increased distress and impairments."
Source : heraldtribune.com
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