We’ve all been wondering how condo sales were going to do this year after last year’s oil spill mess.  Well, so far, quarter 2 condo sales are pacing to have an astounding 44% increase over last year.  Yes, that’s a 4, paired with an 4 and a percentage sign.  Condo sales are up 44% this year over last.

How many condos were sold.

Looking from April 1 through today, there have been 262 condos sold on Panama City Beach according to the Panama City MLS.  During the same period in 2010, there were a total of 182 condos sold.  Many expected and speculated that sales this year over last would be higher because of the negative effects from the oil spill, but 44% is staggering.

If we take the total number of condos sold, and divide it by the number of days in the period, and multiply it by the number of days left in Q2 2011, then add that number to 262, then at this point, we’re pacing to sell 294 condos for the second quarter period 2011.  During Q2 2010 there were 215 condos sold – this would still put us at a 37% increase over last year.

Average price, size and square foot.

Looking closely at the numbers, it’s always fascinating to me to see what people are buying. Here are some averages to soak up.

• Average list price: $192,488.95
• Average sold price: $179,729.42
• Average number of bedrooms: 1.78
• Average square footage: 1,122
• Average price per square foot: $157.15

Break down of some of the more popular rentals.

Aqua

• 4 condos sold during period
• Average list price: $338,475.00
• Average sold price: $303,750.00
• Average number of bedrooms: 2
• Average square footage: 1,349.00
• Average days on market: 426
• Average price per square foot: $225.13

Calypso

• 8 condos sold during period
• Average list price: $259,787.38
• Average sold price: $244,062.50
• Average number of bedrooms: 1.75
• Average square footage: 1,138.63
• Average days on market: 228.88
• Average price per square foot: $214.17

Emerald Beach Resort

• 5 condos sold during period
• Average list price: $182,279.80
• Average sold price: $170,100.00
• Average number of bedrooms: 1.40
• Average square footage: 1,051.60
• Average days on market: 174.20
• Average price per square foot: $158.86

Tidewater Beach Resort

• 16 condos sold during period
• Average list price: $194,125.06
• Average sold price: $185,031.25
• Average number of bedrooms: 1.44
• Average square footage: 1,028.44
• Average days on market: 82.50
• Average price per square foot: $178.26

Pricing this year over last year.

The number of condos sold has sky-rocketed, but the price has fallen 13%.  I say fallen, but many would choose to use the word “corrected”.

The average price for the period last year was $302,311, and the average price for the period this year is $179,729.

Observations, opinions and summary.

Being the proponent of Panama City Beach that I am, the huge increase in sales numbers is very exciting.  The volume of sales is very promising coming out of an economic downturn.  People are becoming more confident in their purchasing, they’re taking action in buying up inventory and they’re telling their friends about the great deals they are getting.

The days of buying a condo and generating revenue from rental are back.  Condo pricing is getting back to a point where it makes sense to purchase and then rent out. I get calls all the time from people asking me if it makes sense to buy this or that, looking at rental revenues.  Most of the properties I manage are booked solid all summer long, with decent rates.  More people are wanting to come to the beach this year then any other year before.  Just look around you, Panama City Beach has been buzzing like crazy the last couple weeks since summer started.

Good luck, happy buying and ask if you have questions!

This post originally appeared on PanamaBeachRealty.com’s blog.  For more information about real estate in Panama City Beach, current market conditions, and other things happening in real estate locally, you should check it out.

Each month we hear stories about how the real estate market in Panama City Beach is bottoming. We are continually told that it is ready to bounce back at any time. How much longer are we going to listen to this while watching prices drop quarter after quarter? Potential buyers should not be focusing on the overall market. They should instead be looking at the specific condominiums they are interested in. On the whole, the real estate condominium market in Panama City Beach continues to fall. The average price per square foot of a 700 square foot or larger gulf front one-bedroom condo has dropped another $18 per square foot during the first quarter of 2011. These dropping rates do not indicate that the market, as a whole, is bottoming. A large number of floor plans and buildings across the beach are showing no signs whatsoever of bottoming.

Itís not all bad news though. Some buildings and floor plans have, in fact, exhibited clear signs of a bottom market. I will later illustrate an example of a condo bottoming. I will also provide a separate example of pricing occurrences in a common two-bedroom floor plan across many condominiums in Panama City Beach.

Sales Volumes

In terms of volume, purchasing rates are setting the stage for a solid year of sales. Condominium re-sales in Panama City Beach were up in January 2011, as compared to those in January 2010. In January 2011, 68 condos sold. In comparison, only 54 condos sold in January of the previous year. When looking at the purchase rate of real estate condominium re-sales in Panama City Beach for February, sales volumes once again exceeded that of the previous year. In February 2011, 69 condos sold, as compared to 60 the previous year. As you can see, the trend continued in March.

Downward Pressure on the Market

A cloud is currently hanging over the Panama City Beach real estate market for condominiums. The trifecta of short sales, foreclosures and damaged properties is making it difficult for certain floor plans to stabilize or increase in price. The obstacle lies in that they have all started feeding off of one another, regardless of the fact that many buyers are willing to pay higher prices. Letís use the following as an example:

Condo A has a good floor plan. Condo B in the same building has an identical floor plan. Condo B, however, has some serious issues with mold throughout the unit and is in need of a complete renovation. As a result, condo B rightly sells at 10-20% below the normal price. In addition, this particular floor plan also has a few short sales on the market. Traditionally, banks are not all that intelligent when it comes to short sales. All a bank typically looks for is any type of comparable sale that will allow them to sell at a particular price. They often fail to even send an appraiser to access the value of the property. They will often pay a nominal fee to have someone locate comps for that particular floor plan. So, we now have a comparable sale with condo B, which was consumed with mold and sold at a lower price. Additionally, we now have a foreclosure appear and price itself at or below the new short sale price and the mold infested condo. The units subsequently feed off of each other.

Even worse than this situation is the long list of short sales that will likely never close. While some agents are good at getting short sales through, many seem to have a horrible track record when it comes to short sales. The majority of these short sale properties will never make it to the closing table. These listings sit on the table forever, benefiting no one and putting a downward pressure on all similar units.

There are occasional exceptions to this however. Intermittently, you will see foreclosures and regular real estate sales at a 10-20% higher price than the lowest asking price.

The Most Common Two-bedroom Floor Plan on the Beach

Several buildings in Panama City Beach were constructed by a particular developer. The majority of these buildings contain almost identical 1146 square feet floor plans, with two bedrooms and two bathrooms. In contrast to some larger resort style condominiums, these condominiums do not include certain amenities, such as on-site check-in desks, theaters or convention centers. This particular developer took a simpler approach. Emerald Isle, Ocean Reef, Ocean Villa, Tropic Winds and Twin Palms were designed for simplicity and functionality. Ample space is provided for the number of units and allotted amenities in each building, demonstrating a well-proportioned balance in the use of space. The floor plan used in these buildings incorporates huge balconies, large gulf front pools, a sauna, steam room, a heated indoor pool, and plenty of parking.

Since these buildings contain a large number of units with almost identical floor plans, this plan serves as a good representation of the cloud that is currently hanging over the real estate market in Panama City Beach. In my opinion, this particular floor plan should have already bottomed. However, it is struggling to find its bottom as a downward pressure is put on the market. An active absorption rate of 200-220k exists for this plan if sellers would just wait for it instead of selling at a lower price. Brand new condominiums, such as Ocean Reef and Tropic Winds, are bringing in even greater amounts because buyers are happy to pay higher premiums for brand new condos.

En Soleil 3-bedroom Condos

As previously promised, here is an example of a floor plan that looks to have found its bottom in 2009-2010. If you arenít familiar with the building however, the charts can be deceiving. For someone who is unfamiliar with the building, it may appear that the bottom of the market for this floor plan was the $509,000 sale. I have a slightly different viewpoint however. En Soleil contains two separate towers with three units per floor. Each of these end units has an identical 2300+ square foot floor plan. The individual owners in this building tend to be a bit on the discriminatory side. While you would be hard pressed to find a bad condominium in these two towers, there is a significant difference in the units. The lower floor end units looking away from the property overlook a roughly two story condominium on both the east and the west side. As a result, a small number of these units partially overlook the roof of the buildings. In a condominium like this, you are likely to witness a significant price difference between a lower floor end unit looking out from the property and an interior lower floor end unit. The $509,000 sale was a lower floor end unit, while the other sales just before and after it were interior end units. I would personally argue that a relative bottom was actually achieved for this particular floor plan in 2009.

What is a Good Indication of a Floor Plan Bottoming?

If a floor plan is seeing a normal absorption rate at a particular price point, it is a good indication that it is starting to bottom. Keep in mind that buying at the lowest price doesnít necessarily mean that you got a really great deal. If you paid 180k for a two-bedroom foreclosure and someone else paid 205k for the identical floor plan with window treatments, great furnishings and flat screen TVs throughout, you definitely got taken. To comparably furnish your unit, you will need to shell out an additional 30-35k, as well as a significant amount of time and hassle to do it yourself. Additionally, if you paid 170k for the same floor plan with mold damage, you really got the short end of the stick. I would personally recommend that potential buyers find the building and floor plan that best fits their needs and wants and then take a close look to see if buying makes sense. They should take into account the condition of the unit, the view compared to other units in that building, the difference between a furnished and unfurnished unit, and the time and effort it will take to get that unit to the desired condition.

This article is part of our Real Estate category where we talk a bit about real estate in the Panama City Beach area. This post originally appeared on Blog.PanamaBeachRealty.com which often talks about real estate market conditions in Panama City Beach.

Initially, the 2010 Panama City Beach real estate market was stronger than in 2009. However, potential buyers became worried about the possibility of the Deep Horizon Oil spill, so sales declined in April and remained depressed until September. When purchasers realized that the spill would not affect the area, September 2010 sales volume increased. This still was not enough to return to 2009 levels.

There are some difficulties in evaluating the overall market data because condominiums are worth different values depending on their amenities, location and size. In order to evaluate the Panama Beach condominium market more realistically, I examined units that were close to the same size and had similar views. I determined the average square foot price of one-bedroom units on the gulf that were more than 700 square feet.

Panama City Condo Market Selection Factors

The next graph demonstrates that the same floor plan can bring different prices depending on the building. I looked at one-bedroom Panama City Beach condos for sale in the Summit, the Boardwalk and the Majestic buildings. The sales volume in the Summit was constant each year, so this condo provides a powerful graph baseline. The graph also indicates that the prices of one-bedroom units in the Boardwalk are slightly higher than prices for the same floor plans in the Majestic. Condo prices in both buildings command a premium over the value of units in the Summit.

Other Factors of Condominiums Adversely Affecting the Market

Most floor plans are continuing to see foreclosed units hit the market. These units often list at a discounted price compared to other identical floor plans. They are usually unfurnished and often need some repairs. This puts a downward pressure on pricing. When the foreclosed unit sells, it provides a comparable, which causes short sales to lower the price.

Despite this negative price pressure, a few floor plans are showing signs of a price floor, or even indicating that the market may be strengthening toward eventual price increases. I will examine unit plans in the Panama City Beach real estate market in my subsequent market analysis and provide some graphs to demonstrate the market growth. Unfortunately, many other condo floor plans have not seen any sales in a long while due to unrealistic asking prices.

Expected Outlook

It is likely that units will only start to sell when prices are lowered enough to be in line with market rates. This will happen on a floor plan by floor plan basis, resulting in excess inventory gradually being sold. As inventory becomes more limited, prices will strengthen. When realistic prices match the market demand, they will restore the stability and equilibrium of the market.

* All sales data taken from Bay County Association of Realtors

Last week we discovered some of the hold ups and glitches that keep a property from closing on time. We are going to continue on in that vein since the causes are many and being educated seems to keep the frustration level to a bare minimum.

I know everyone has heard that appraisals, or the lack thereof, have been a bone of contention for many a Real Estate transaction. Customers are sometimes shocked to find that the property is not appraising for what they thought and many times there are simply no available current comps to go by. The new Home Valuation Code of Conduct, or HVCC has further added to the delay, making it very difficult to do a quick close. These federal regulations that were meant to ensure the integrity of the appraisal process require that appraisers be assigned by a third party, such as an appraisal management company.

These appraisers are chosen from a list and are on a rotating basis. The problem arises when the appraiser is not even from the area and is not familiar with the area or the property type. The result is many times an appraisal that is way off base. I actually had this happen to me just this last year and the result was the closing fell apart and both sides of the deal. The appraisal was not a good one and the comps used were not very legitimate. The story ended on a happy note as we were able to renegotiate at a different price and move to close although the seller did not receive what he felt was a fair deal.

Another hurdle is the continued scrutiny of lenders doing securitized loans. There have been cases where the secondary market underwriter questioned the appraisal because it did not match up with the value on Zillow. I have had several customers that have called me wanting to know why my value of their property does not match up to sites such as Zillow. Many of these on line appraisal sites are not in keeping with our current market and should not be relied on as factual.

Another snag for closings is in the area of inspections. VA and FHA properties are especially troublesome in that some of the guidelines require that the seller do the repairs. Repairs required by VA appraisers can delay a closing because the work must be completed before the property can change hands. Another factor in a VA close is that the buyer can not agree to pay for the repair, which can be a snag if the seller can not or will not pay. In many cases, short sale or foreclosured properties must be purchased as an AS IS contract.

Whew! Are we closed yet? So as you can see getting the contract is just beginning of the race to close which can be sometimes feel more like an obstacle course. It seems that no matter how much you plan ahead it seems that closings are just taking longer than usual. The “new normal” seems to be 45 to 60 days from the date of contract.

Once again it has been great visiting with you and sharing information about this profession that I am passionate about. Please be sweet and patient with your Realtor and take a deep breath and jump smoothly over all the closing hurdles. Until next week make sure that you remember my get even philosophy; “The only people we have to get even with are those that have helped us.”

Karen K. Smith
Beachy Beach
Real Estate
karen@karensbeach.com
www.karensbeach.com
thebeachshow.com
850-527-5651
“The only people we have to get even with are those that have helped us”

Your friends at www.condosaletrends.com have been searching for a little good news in the Panama City Beach Condo market.  The beaches look great.  Pier Park looks great. The new airport looks great.  The condo market looks a little ragged.

The following is our analysis of sales and re-sales from the 75 buildings contained in the condosaletrends.com data base. Developer sales not listed in the MLS were not included because we cannot confirm the existence of or lack of seller concessions.

There were significantly more sales during the first three months of 2010 compared to 2009 with fewer sales since May.  July sales took a steep downturn with approximately 40% fewer sales than 2009.  August doesn’t look much better. The oil spill didn’t help but the primary reason is due to the weak economy and the generally pessimistic outlook held by potential buyers.

Foreclosures and short sales continue to be major restraints to price stability. Bank related sales accounted for 47% of the total number of June sales and 60% of July sales.  A majority of the bank related sales were in the newer, beach-side buildings.  To complicate the problem, a large number of new foreclosures and short sales hit the MLS over the past month.  Bank related sales will most likely be with us for the next couple of years.  In one newer beachside building that has been particularly hard hit by bank sales, 34% of the current owners are $100,000 or more upside down.  Some are $300,000 upside down.  Many of these owners will finally throw in the towel.

The market trend line is illustrated below.  It is structured to show a sale price trend measured in terms of the percentage sale price as of a particular date.  The starting date used was January 1, 2009 so we could show the price trend since January 2009.  We chose units from a variety of beach side buildings of different ages and sizes that had a sufficient number of sales as to be statistically significant.  All of the sales used in this analysis are from beach side buildings.  There is no collusion of beach side properties and off-beach properties. The buildings include Boardwalk Beach, Calypso, Celadon, Emerald Isle, Grandview East, Grandview at Long Beach, Gulf Crest, Regency Tower, Tidewater, Seychelles, Splash, Sterling Reef, The Summit, Ocean Villa, Twin Palms, and Treasure Island.

The sale price of each type of unit is only compared to the typical sale price of that particular type of unit as of January 1, 2009.  As an example, a sale of an 846 SF, 1BR/2Ba unit located in the Celadon is only compared to sales of 846 SF, 1BR/2Ba Celadon units.  A unit type with a January 1, 2009 market value of $400,000 is represented as 1 or 100%.   An October 2009, $380,000 sale of that type of unit is depicted as .95 or 95% of the January 1, 2009 sale price.  The chart contained in the following price trend analysis is a trend line of the trend lines of the sale prices of each type of unit from the 14 buildings.  Foreclosure sale prices that were unrealistically low (mold problems for example) were not included.  There were 187 sales used in the chart.  The analysis does not try to skew the price trend in any direction.  The data is just the data.

Our January 2010 analysis predicted at least a 5% decline in value for all of 2010.  That was obviously too optimistic. We have blown past a 5% decline during the first seven months of 2010. The data indicates that the typical beach side, Panama City Beach condo lost approximately 13 percent of its value during the past 12 months and 9% in the last seven months.  The rate of depreciation appears to have accelerated over the past three months.  Of course there are exceptions, especially with units that were sold exclusively through the developer.

As in the past, there are several factors at play that will continue to put downward pressure on current market values.

1. Financing a condo continues to be difficult for the average buyer.
2. There are still a large number of owners who have a mortgage in excess of $100,000 more than the current market value of their condo.  There is no evidence that the number of foreclosure and short sales will decline in the near term.
3. The lack of robust national economic growth does not inspire potential buyers to pull the trigger on a large discretionary purchase.

So what’s in store for the rest of 2010?  It sounds like a broken record.  The new airport will have a positive effect on the number of rental nights for the area but a minimal effect on condo sale prices.  Foreclosure and short sales will continue to put negative pressure on current market values.  Financing second homes located in Panama City Beach condo buildings will continue to be difficult. The number of sales will continue to be volatile.

Panama City Beach condos will continue to lose value. The question is how far prices fall before the bottom.  I’m afraid to speculate.  A good friend of mine likes to say “when you think it can’t get any worse, it does”.  The vultures and bottom feeder buyers are even scared. Purchase prices in this environment appear to be based on perceived risk. The lack of a robust economy is one risk factor. The potential of additional price declines is another.  However the overriding factor preventing a stabilized market is the seeming endless supply of bank related sales.

The market cannot stabilize until all of the properties that are held by owners that owe substantially more than current values and do not have the financial ability or the will to continue ownership are transferred to new owners.

For more information on individual buildings and units, visit www.condosaletrends.com.

In the Real Estate world there are some people that I listen and learn from. One of them is Barbara Corcoran, a self made Real Estate mogul with great spunk and even more wisdom. I am going to share some of her answers that are great stuff for first time home buyers.

1.  What is the biggest mistake new home buyers make?

According to Barbara, first time home buyers go in way over their heads and put themselves in an uncomfortable financial position. So, as we have spoken about in countless articles, it is imperative to visit your loan officer before you start your home buying adventure. To avoid this mistake the new home buyer needs to figure out just how much money they feel they can afford each month and stick to that number. When you know that number you can find out from the banker and your Realtor just how much house that will buy. It is important not to go looking and get emotionally attached to something that will strap your budget. If you start out with houses that are not in your range then the others do not quite measure up.

2.  How do you know if you are getting a good deal?

Today, that is a fairly easy answers since pretty much across the board the deals are great.  Appraisal values are extremely conservative these days and the new home buyer can be assured that everyone is on their toes because of our sins of the past.  Ask your Realtor to give you the last 3 homes that were comparable that sold. This will be a really good indicator that you are getting your deal.

3.  What is the least amount that a buyer can put down on a home?

Typically the amount down depends on several factors not excluding your buying power and credit score. If you are conventional it is usually anywhere from 15 to 20%. There are programs such as FHA and Rural Development where your down payments are much lower.  For FHA it can be around 3.5% but again it is best to call your lender and he or she can tell you what is the best bet for you.

4.  How can you improve your credit score?

This is a really big one now and lenders are getting tighter on some issues that were a little loose before.  For instance it is very important that during the time that you are applying for a home that you DO NOT go out and make any major credit purchases such as appliances or cars.  This is true during the entire process and not just when you put in your application. Now lenders are checking on these things right before close. If you have specific questions concerning this your loan officer is in the know about these guidelines. Another thing that you would not want to do is cancel any of your paid off credit cards thus lowering your credit ratios. Many people think it is a good idea to cut those offending pieces of plastic up but put down those scissors and get the facts from you bank.

5.  What is a good opening bid?

Now this is one of my really hot topics and I have plenty of chances to address this in today’s market. I am probably asked this more than any other question of my buyers. The opening offer is a very important number and coming in with a low ball offer on a property that is worth more will not usually get you the deal. Your Realtor is really astute at figuring out what the value is. If it is priced too high then, of course, you can go in below and be closer to market value.  Usually if you start off too low people are aggravated and do not take you seriously and in the meantime someone else waltzes in and gets a great deal.  Again, this is a case where looking at what the comparables have sold for will help you with your decision.  Look at what houses are selling for per square foot and that can be one of your guidelines with the help of your Realtor to go by.

It remains a very exciting time for new home buyers especially with great interest rates and house prices lower than we have seen in years.  Florida continues to rank third in the nation in foreclosures, according to Realty Track’s U.S. Foreclosure Market Report.  This sad state of affairs continues to be a great opportunity for Florida buyers.  As usual there is a blessing tucked in every negative.

Thanks for following us on Pcbdaily.com and until next week you know the drill. Find someone that needs a hand up and a little hope and share it and remember, “The only people we need to get even with are those that have helped us.”

–
Karen K. Smith
Beachy Beach
Real Estate
karen@karensbeach.com
www.karensbeach.com
850-527-5651
“The only people we have to get even with are those that have helped us”

Although this is typically a place for Real Estate tips I have been known to throw in some life tips and this is one of those times.  Now, more than ever, our focus is on our cherished beach and what we can do to stem the tide of oil and moreover to counter the negative impact that the fear preceding the event is causing on our coast.  There is something about our beach for residents and tourists alike, that leaves an impression of our beach in their heart and soul. The sand sticks in your toes and the feeling travels with you forming some of the best memories of your life.  

We are so grateful to the mass of people who continue to flock here and support our beautiful home that you have made your home as well. It is going to take all of us to counter what man has done and to protect our shoreline in the future. When I was deciding how to bring the message of unity and grace across these pages I found a story that sums it up and hopefully will leave you with a great message.

A few years ago at the Seattle Special Olympics, nine contestants, all physically or mentally disabled, assembled at the starting line for the 100 yard dash. When the gun sounded they all started out, not exactly in a dash, but with the relish to run the race to the finish and win.

All, that is , except one boy who stumbled on the asphalt, tumbled over a couple of times, and began to cry. the other eight heard the boy cry. They slowed down and paused. Then they all turned around and went back. Every one of them. One girl with Down’s syndrome bent down and kissed him and said, “This will make it better.” Then all nine linked arms and walked together to the finish line.

Everyone in the stadium stood, and the cheering went on for 10 minutes.

It is my hope that during this oil crisis that you reach deep down and grab the hand of your neighbor and help those that are in need because of this catastrophe. There are many out there that could use your help and your hope as we all focus on all that we have. Know that the spirit of this beach can never be washed away by anything.  I am grateful to live here and we are thankful for our visitors who love us too.  So this week more than ever please remember, “The only people we have to get even with are those that have helped us.”

Karen K. Smith
Beachy Beach
Real Estate
karen@karensbeach.com
www.karensbeach.com
thebeachshow.com
850-527-5651
“The only people we have to get even with are those that have helped us”

Despite bouncing off their lows for May, mortgage rates remain below 5% with the benchmark thirty-year, fixed-rate coming in at 4.875% with no points and the fifteen-year, fixed-rate right at 4.25% with no points. A steep drop in the yield on the ten year Treasury note over the past several weeks has lead to some of the lowest rates of the past twelve months just in time for the summer buying season. Ongoing volatility in the equity markets combined with uncertainty over European sovereign debt has brought a level of fear back into the markets which have benefited US Treasury debt prices thus driving rates lower since a bond’s yield moves inversely to its price. Government rates are also very attractive with most thirty-year fixed on VA and FHA sitting around 4.75% and jumbos are still under 6.00% at around 5.875%.

There is some important news on the government lending front. First, Rural Development is finally back up and running after a two week hiatus that left many loans in limbo. RD is once again willing to issue “conditional commitments” subject to eventual Congressional funding but the secondary market investors are willing to purchase loans with the conditional commitments so we have no issue in closing them. The new RD guarantee fee has been raised from 2.041% to a rate not to exceed 3.5%. FHA also implements a new guideline this month that could have a real impact on FHA borrowers. After raising the up-front MIP from 1.75% to 2.25% in April, HUD has now restricted seller paid closing costs and pre-paids to just 3% of the sales price – down from 6% before. This means that, in addition to 3.5% minimum down payment contribution, it is very likely the borrower will no be paying additional cash at closing to cover the seller-paid shortfall.

Lastly, although the funding for the National Flood Insurance Program expired again on May 31st, we are still able to close loans in a flood zone if we can show that the borrower has applied for flood insurance with their insurance provider and provide a one-year paid receipt for the coverage. This should mean business as usual with no disruption to closings on properties in a flood zone.

Best Regards,

J. Hunter Palmer
Mortgage Banker
Vision Bank – Edgewater Branch
559 Richard C. Jackson Blvd.
Panama City Beach, FL  32407
O) 850-636-4917
C) 850-596-7710
F) 850-636-3573
hpalmer@visionbankfl.com

http://activerain.com/hpalmer

Okay, I know you think Karen has finally lost it, talking about hot dogs in a Real Estate article!!! As you know I always base my articles on real life situations and questions that I am asked and I tend to keep it on the positive. Many people have come to me with great concern since the Oil Spill and have become gripped in fear of their investment and their career. While this has been a daunting and challenging situation, there is every reason to keep the enthusiasm for what is right in our world instead of focusing on the negative. I had many things to write about this week but thought it a great time to remind you of one of my all time favorite stories.

There was once a man who lived by the side of the road and sold hot dogs. He was hard of hearing so he had no radio – he had trouble with his eyes, so he read no newspapers and of course he didn’t look at television. But he sold very good hot dogs. He put up signs on the highway telling everyone how good they were, he stood on the side of the road and cried out to all that past ‘buy a hot dog, they are the best in town’.

And people bought his hot dogs and he increased his meat and bun orders. He bought a bigger stove to take care of all the extra business. He finally got his son to come and help him out with his business.

But then something happened. His son who had been well educated said . . . “Father, haven’t you been listening to the radio or reading the newspapers or watching television? There’s a big recession happening right now. The current business situation is terrible in this country – we have problems with unemployment, high living costs, strikes, pollution, the influence of minorities and majorities, the rich, the poor, drugs, alcohol, capitalism and communism”.

Where upon his father thought, “Well my son’s been well educated, he reads the papers, listens to the radio and watches television, so he ought to know “.

So his father cut down on his meat and bun orders, took down all his advertising signs and no longer bothered to stand by the side of the road to enthusiastically promote and sell his hot dogs . . . . and his hot dog sales fell almost overnight.

“You’re right, son,” the father said “we certainly are in the middle of a recession.”

I in no way want to downplay the magnitude of what the oil spill has meant and will mean to our environment. I have learned however that to squelch my enthusiasm or to stop doing those things that I believe in because people want to talk and focus on the negative will not bring solutions. In the course of history humankind has always found solutions and answers when they were most needed. We have also learned great lessons due to disasters and blunders. I do not see that changing.

To carry the hot dog story a little further. There are those that always find a way to succeed in spite of what is going on in the world around them. They reach deep down and find those things that work and they stay with them and know that success comes to those that are resilient. For me it has always been to be incredibly enthusiastic about my job and my community and to keep the focus on what is possible!!! We live in an incredible place, we have a great new airport, our beaches are the best, our neighbors are inviting and welcoming to all the tourist and visitors, we have PCBdaily.com that keeps us up on what matters to us, we have a bustling Pier Park, a gorgeous beach…. need I go on? We have so much to be excited about and celebrate living here on The Emerald Coast. So whatever you are selling keep doing it with boundless enthusiasm and enjoy the moment you are living in and until we meet again…. remember “The only people we need to get even with are those that have helped us” My list is getting longer and longer!!!

The National Association of Homebuilders reported this week that their “Housing Market Index”, a survey among its members to quantify builder sentiment about the housing market, rose three points in May to 22. While this is still well below the 50 mark which indicates builders feel optimistic about the housing market, it is the highest reading since August of 2007. It has not been above 50 since April of 2006. Meanwhile, the Commerce Department reported that new home construction soared in April – up nearly 41% from the same moth last year. The number of starts in April was also 5.8% higher than the previous month. The number of applications for new building permits actually fell for the month – down 11.5% from March. April 2010 applications were, however, still nearly 16% higher than the same month in 2009.

Now for the latest in the soap opera that has become Rural Development. After warning for weeks that the program would be out of funds sometime in May, we were all relieved last week when USDA issued a memo saying the program had been saved and that a new 3.5% Guarantee Fee would insure the solvency of the program and that loans in the pipeline could close as scheduled. Well, the emotional roller coaster continues as late last week USDA rescinded their earlier memo saying that funds were depleted and no new commitments, even conditional commitments, could be issued at this time. This means I have four files gathering dust in Marianna and four customers unsure as when they will be able to close. I will be sure and provide an update as this drama continues to unfold.

Mortgage rates remain very attractive with the benchmark thirty-year, fixed-rate at 4.875% with no points. As I said last week, continued uncertainty surrounding the European debt situation and the slide in the value of the Euro has kept investors rattled and rates have thus improved even further. Gold prices are setting records and bond prices continue to climb and this, combined with returned volatility in the stock market, should keep up the downward pressure on rates in the short-run.

Best Regards,

J. Hunter Palmer

Mortgage Banker
Vision Bank – Edgewater Branch
559 Richard C. Jackson Blvd.
Panama City Beach, FL  32407