Financial Friday

 

Take a Deep Breath—The Fed’s Rate
Increase May Not Mean What You Think

by John Stickle

Take a deep breath and relax. The Fed's latest quarter-point interest-rate hike may have very little direct effect on a 30-year mortgage.

The Fed primarily controls short-term interest rates. While mortgage rates can react to its decisions, the 30-year mortgage rate is driven more by inflation, Treasury bond yields and what investors believe is coming next. A quarter-point Fed increase does not automatically mean mortgage rates will increase by a quarter point.

Even if a $400,000, 30-year mortgage moved from 6.95% to 7.20%, the principal-and-interest payment would increase by approximately $67 per month. Nobody likes paying more, but it may not be the budget-buster the headlines make it sound like.

Interest rates matter, but they are not the only factor driving the real estate market. Here in St. Augustine and St. Johns County, it still comes down to the basics: price, inventory, condition and competition.

A well-priced home in good condition can still sell, while an overpriced home can sit regardless of what the Fed does.

The bottom line: one quarter-point increase should not cause buyers or sellers to panic. Look past the headlines and pay attention to the numbers that actually affect your property and your monthly payment.

Financial Friday - Does the price of your home determine how long it takes to sell? The numbers may surprise you.

 

Does the price of your home determine how long it takes to sell? The numbers may surprise you.

by John Stickle

Most people assume higher-priced homes take much longer to sell, but that may not be as true as you think in the BORSMLS market.

I reviewed 1,668 closed residential sales from the past year and divided them into three price ranges:

·  Under $500,000: 61 median days on market

·  $500,000 to $999,999: 58 median days on market

·  $1 million and above: 64 median days on market

What surprised me was how close those figures were. The difference between the shortest and longest median was only six days. In other words, the typical home sold in roughly two months, regardless of price range.

My takeaway: Price range makes a slight difference, but pricing a property correctly for its condition and competition may make an even bigger difference.

Based on closed BORSMLS residential sales from September 13, 2025, through September 13, 2026. Sold Comp Only transactions excluded.

Financial Friday

 

Some may say property appraisals and Agency Relationships don’t fall into the Financial conversations….think again.

We recently experienced an appraisal issue on the sale of a listing so I am very much in favor of the changes that started earlier this year and will be phased in over the course of the next few months. In this case the property listed had amazing views a resurfaced pool, new fenced in rear yard and total updated renovations over the course of the past 5 years. The appraiser and I had extensive conversations about the condition of the property and every dollar spent on updates outlined for him. The problem was a house a few doors down sold for a LOT less and he refused to make adjustments for the improvements. Adjustments for condition weren’t required, detailed photos of the interior weren’t required and he hit the easy button.  Everyone else involved (including the buyer and their agent) felt the value was there  but the appraisal fell short of contract price.  The end result was an agreement between buyer and seller to split the difference. A reasonable position and one made possible by close communication between realtors and their customers with the best example of Transaction Broker relationship I’ve seen in a while. Open, direct and honest discussion vs. a debate that would have resulted in disappointed buyers and sellers.

So, YES, appraisals, appraisal requirements and Agency Relationships matter to the bottom line.

Financial Friday

 

Some may say property appraisals and Agency Relationships don’t fall into the Financial conversations….think again.

We recently experienced an appraisal issue on the sale of a listing so I am very much in favor of the changes that started earlier this year and will be phased in over the course of the next few months. In this case the property listed had amazing views a resurfaced pool, new fenced in rear yard and total updated renovations over the course of the past 5 years. The appraiser and I had extensive conversations about the condition of the property and every dollar spent on updates outlined for him. The problem was a house a few doors down sold for a LOT less and he refused to make adjustments for the improvements. Adjustments for condition weren’t required, detailed photos of the interior weren’t required and he hit the easy button.  Everyone else involved (including the buyer and their agent) felt the value was there  but the appraisal fell short of contract price.  The end result was an agreement between buyer and seller to split the difference. A reasonable position and one made possible by close communication between realtors and their customers with the best example of Transaction Broker relationship I’ve seen in a while. Open, direct and honest discussion vs. a debate that would have resulted in disappointed buyers and sellers.

So, YES, appraisals, appraisal requirements and Agency Relationships matter to the bottom line.

Have You Ever Flunked Retirement?

I thought I'd take a back seat in the industry but missed it too much.  So, here I am with a new team,website and all things GOOD!

We specialize in all things Marsh Creek and other private gated subdivisions in St. Augustine.  It's time we catch up so keep your eyes peeled for more!

Marsh Creek Country Club Community Update

OH My, What's Going on with Real Estate in my Neighborhood?

Is this the new normal?  I sure hope not but one thing for sure is we've not found our footing yet.  It is the end of August, 2017 and our neighborhood market is anything but predictable.  Right now there are 33 homes available.  Out of those 33 homes - 21 are under 3000 sq. ft. and 7 of those are patio homes.  Homes over 3000 sq. ft. are usually estate homes that offer larger lots and higher prices.  Since our community is more than 20 years old there is great variety in overall condition.  That my dear, is when experience becomes valuable.

There are four homes under contract and range in prices of 339,000-700,000.  Oddly enough one of those properties was on the market for over a year while the lowest and highest priced both had 43 days on the market.

Twenty one homes have sold thus far this calendar year with prices ranging between 363,000 - 879,000.  Seven of those were patio homes.  By this time last calendar year 28 homes had sold and 6 of those were patio homes.

Prior to the downturn beginning late 2006 (in our neighborhood) the market for patio homes was robust, especially during the months of October-May (otherwise known as the snowbird season).  Since then there hasn't been a statistical normal.  God knows, it isn't from lack of wishing it so!

I looked back on the months of October-May for the last few years and found the following:
10/1/2015 - 5/30/2016                                   10/1/2016 - 5/30/2017
24 homes sold and 8 were patio homes          8 homes sold and 3 were patio homes

History proves that inventory drives prices.  My personal rule of thumb for Marsh Creek is an inventory of 30 homes available with a wide variety in pricing is healthy.  Anything over drives the price down and anything under drives the price up.  Until recently we were hovering around 37 homes available.  During the height of the downturn the maximum available for sale were 40.

There are a number of factors in play right now:
Geo-political unrest
U.S. Politics in flux
Angst on display across the nation
Traditional break from the hectic summer season.  People tend to take that break and by October business is usually a little stronger.

Unfortunately my crystal ball hasn't worked well since 2006.  Maybe I should trade it in but for now I'll just say, stay tuned to future updates.  We continue to sell more listings in Marsh Creek than anyone else and are grateful for the confidence placed in our experience and production.

Peggy Gachet's Real Estate Advise and More

What does the real estate market look like in my neighborhood, Marsh Creek Country Club of St. Augustine?

During the year of 2013 there were 23 houses sold in Marsh Creek Country Club of St. Augustine.  In 2014 that number went up to 29.  The prices have improved with the increase in sales primarily due to limited inventory.  During the worst of the down turn prices fell over 50%.  Inventory of available homes to purchase hovered around 40.  During 2014 that number averaged around 25 and as of today, January 2, 2015, the number of homes available for sale is 11.

In fact out of the last four sales we've made in Marsh Creek, three never made it to
Multiple Lists before they sold.


Has the market recovered?  Not entirely but I'd say it's well on it's way.  With such limited inventory it will be difficult to maintain a strong number of sales.

(Photo of wildlife in Marsh Creek by Dan & Bob Dorrill)

Peggy Gachet's Real Estate Advise and More

If you think a new water heater or air conditioner is needed this year you may want to research your options before the need arises.  New regulations will impact the price.

Educate yourself before shopping!



http://rismedia.com/2015-01-01/new-regulations-affect-homeowners-in-2015/?utm_source=newsletter&utm_medium=email&utm_campaign=eNews

Peggy Gachet's Real Estate Advice and More!

This is one of the best articles I've read that supports ownership vs. renting.  The prices are improving in our market primarily due to a limited supply.  This is especially reflective of specific neighborhoods.  Condo prices are still depressed but improving though at a slower rate than single family homes.  Financing limitations has more to do with that fact.  Read and Enjoy!
https://news.fidelity.com/news/news.jhtml?cat=Economy.US&articleid=201501011204MRKTWTCHNEWS_SVC000055&IMG=N

Latest Community Outreach Program

Peggy Gachet's Real Estate Tips and More

WHAT'S THE LATEST TREND IN SHORT SALE OPPORTUNITIES IN FLORIDA?

According to Florida Realtor.org, Florida was ranked number 2 in the number of short sales approved during the month of October, 2013.  Likewise, Florida remains riddled with Foreclosure sales with Orlando and Jacksonville leading the state in the number of foreclosure auction sales.

Certainly as home values and demands rise, banks will find it more prudent to foreclose than approve short sales.  This explains the shift recently seen nationwide.  Banks are experiencing a quicker turn around of properties as the investor and institutional buyers find bargains at foreclosure auctions.  Since that market segment typically pays with cash it will come as no surprise that Florida is the national leader in cash sales (65.6%).