July 2009 Intown Market Update

Springfield

Springfield had 8 closings in July. Six were renovations whose median sold price/sq ft was $54/sq ft. One was a new construction (private developer, not SRG nor ONH) that sold for $124/sq ft. The last house was a home needing renovation that sold for $10/sq ft. Although the price per sq ft of renovations has gone down, the number of homes selling has risen dramatically - indicating that there are buyers out there. It is only a matter of time before demand pushes prices back up. It is the foreclosures and short sales driving prices down. As these ease up and the number of buyers continues to increase, prices will go up again - hang in there Springfielders! These prices are probably the best deals Intown and buying in the coming months is a good idea.

17 new listings came on the market, 7 of which are in need of rehab. There is a total of 66 properties for sale now. This is a decrease from what you were seeing in the Spring - a good sign. If demand will continue to go down and buyers will continue to buy, again, it is only a matter of time before demand pushes prices back of up. Of the 66, 25% are distressed, a slight increase from the Spring. 17 properties are pending in Springifeld. The most expensive property in pending is a new construction home listed at $289K

Riverside

Riverside had 9 closings, 4 of which wree condominiums. 3 of the residential units were in need of rehab and sold for a median price/sq ft of $17. The other 2 residential units sold for $110/sq ft. This is pretty much the same that Riverside has been seeing since the Spring indicating, again, that this market has stablized and is waiting on demand to increase for its prices to increase. I think that will happen sometime toward the end of this year or next year. If you are thinking about purchasing in Riverside, the next few months are probably the lowest pricing you will see.


14 new properties went on the market, making a total of 97 properties on the market. Riverside has been pretty consistent in the amount of inventory it has carried in 2009. 28% of the inventory are distressed properties, an increase from the Spring. If this continues, then prices will drop a little more over the next few months. 8 properties are pending in Riverside now, the most expensive of which is a home listed for $199,000

Avondale

There were 12 closings in Avondale in July, about the same number from the Spring. The median sold price per sq ft is $165. 27 new properties came on the market, for a total of 147 properties for sale, this is a slight decrease in inventory from Spring. If this slight drop in inventory increase through the end of the year, this could help stablize pricing in this market and begin the road to Avondale's recovery, the last of the Intown Neighborhoods to begin recovery.

In addition, 14% of the inventory for sale is distressed, a 4% increase from Spring 2009, also an indication that prices are going to be pushed further down in this market before they bottom out. There are 12 properties in pending, the most expensive of which is listed at $479,900.

San Marco

San Marco had 5 closings in July. Prices range from $67,500 - $595,000 with the median sold price per sq ft at $153. 17 new properties went on the market, making a total of 119 properties for sale. This is a dramtic decrease in inventory, a good indication that San Marco is recovering. Like Riverside, this market is probably bottomed out in pricing and if you were thinking of buying in San Marco, now is the time.

Only 9% of its present inventory are distressed properties. 10 properties are pending, the most expensive of which is listed at $262,900.

Downtown
1 condominium sold in July for $158K or $143/sf. 3 new properties went on the market making the total 61. This is not good if Downtown doesn't begin to see an increase in sales. 79 properties are pending, most at the Berkman II.

Murray Hill

11 properties closed in July. The prices ranged from $29,900-$190,000 or $29/sf-$134. This is a slight increase in price from the Spring. IF this increase continues, that would indeicate a recovery in this market. But only time will tell.

26 new properties came on the market, for a total of 123 properties for sale, this is an dramatic decrease in invenotry from Spring. 46 of them are distressed properties. 16 are in pending, the most expensive of which is listed at $160,000.

Revised Truth in Lending (TILA) Disclosure Requirements Effective July 30, 2009

Lenders will be subject to new disclosure requirements for mortgage loans under the Federal Reserve Board Truth in Lending Regulation (Reg Z). The new requirements apply to loan applications filed on or after July 30, 2009. The new rules are complex and compliance will be a challenge for lenders. Realtors should understand the basics so that they can advise clients of potential delays and the new procedures. Here are key highlights of the changes:

The new requirements apply to all mortgages secured by a borrower's home, including primary and second homes and refinancings. Investor loans continue to be exempt.

Lenders must give good faith estimates of mortgage loan costs within three business days after the consumer applies for a loan (early disclosure). The lender may not collect any fees before the disclosure is provided, except for a reasonable fee for obtaining a credit report.

The closing may not take place until expiration of a seven day waiting period after the consumer receives the early disclosure.

If the annual percentage rate (APR) increases by more than 0.125 percent, the lender must provide a corrected disclosure to the borrower and wait an additional three business days before closing the loan.

The APR includes not only the interest rate on the loan but certain other costs related to settlement, so it will be important for any fees that affect the APR to be as accurate as possible, as early as possible, to minimize the need for a corrected TILA disclosure.

The consumer may modify or waive both waiting periods for a documented personal financial emergency, but must receive the disclosures no later than the time of the modification or waiver.
More information is available via the following links:

Federal Reserve Board Final Rule and Staff Commentary (Federal Register, May 19, 2009)
Wells Fargo Website with Its Advice on the New TILA Requirements

Great Home Open Thursday Evening!

Thursday, July 16, Operation New Hope will be holding an open house for the first of four new homes they are building Historic Springfield, 1423 Ionia Street. The house looks great from the exterior and has gotten lots of positive feedback from the neighbors and the best part is, these homes target First Time Home Buyers! They are priced to sell at $149,000. The house has lots of great features including:

3 Bedrooms/2.5 baths
wood floors
complimentary historic trim and tile
open floor plan
hardie lap siding
formal dining and eat-in kitchen space
great front porch
3rd party energy star approved

There are 4 lots in Historic Springfield to choose from. The second house, being built on Market Street is almost complete and not sold yet. So that will leave two more.

The house will be open July 16, 2009 from 4pm-6pm. Hors d'ouvres and wine will be served. Come out and take a look, even if you aren't in the market, you may know someone who is!

Florida Homebuyer Opportunity Program Fund Allocations Announced

The Florida Housing Finance Corporation (FHFC) has announced the amount allocated to local housing authorities for the 2009 - 2010 fiscal year under the Florida Homebuyer Opportunity Program (FLHOP). FLHOP will provide first-time homebuyers with funds for a down-payment using the current $8,000 federal tax credit. The FHFC will hold a rule development workshop in July to implement the FLHOP, meaning that the funds may not be distributed until sometime after July 1. Local county allocations are: (Clay) $350,000; (Duval) $806,179; (Putnam) $350,000; (St. Johns) $350,000.