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 Outlook

 Looking for a Mortgage Today?  Let's analyze the biggest hurdles in the world of lending.

 
The days of easy mortgage money are long gone!  In many regards the changes are positive, but in reality the pendulum seems to have swung too far the other direction. 

Lenders are looking at a much larger profile of the buyer than in the past.  Credit scores are directly tied to the rates they offer.  The FICO credit score bar for approval of home loans has moved from a minimum of 680 in 2006 to 740 in today's market.

Even credit scoring is changing. VantageScore, a new scoring method created by the three leading credit bureaus, has emerged and is gaining popularity. VantageScore is adopting the same ranges as FICO, but scores differently, at least for now. FICO is making changes to fall in line with the new VantageScore.

Buyers today have to provide more income and asset documentation than ever before.  If anything looks out of the ordinary, rest assured the underwriter will not only take a closer look but may turn the loan down.  The fact that one could actually pay cash but has elected to get a mortgage doesn't always factor into the equation.  We'll just call that over kill of legislation.

Requirements - don't get too comfortable with the guidelines published.  They change regularly.  The loan process may start with a required credit score of 740 & 36% debt to income ratio, 20% down and stable employment just to change before the process is completed.

Another frequent hurdle is a low appraisal.  Since appraisals are done on a "look back" approach they take past sales into consideration.  Seldom will pending transactions be used as a factor at all.  We've seen some improvement in pricing, but it takes time for appraisals to catch up with current market trends.

Condo financing faces even more hurdles than single family homes.  The lender is now reviewing the association documents, financials, rental policies, occupancy ratios and more.  Most lenders require 20-30% down for a condo purchase, and I've seen it go as high as 40% for investment purchases.

Have we eliminated the chances of home ownership for low income buyers with all the new regulation?  Not exactly: The USDA is still approving loans in rural areas for 103.5% of the sales price.  In fact a family of four with a household income of approximately $45,000 annually is eligible to purchase a property valued at $77,400.  The program is designed to assist the low and very low income buyers.  There is even a payment subsidy program available is some cases.  While the island isn't considered rural, there are still communities within our county that qualify.  If you know anyone who may qualify, they can get more information on the USDA website.

There are still great rates out there for purchase or refinance.  Just be prepared for the mountains of documentation that may be required.  If you are selling, I suggest you start packing the boxes, but don't move out until loan approval is received.

Published in the Marsh Creek Jounal May 2013.

Peggy Gachet's Real Estate Outlook

What Happens when a Landlord Sells?


The hazards of renting a property in this market are abundant! The most important thing to know is that every state is different and knowing the law in your state is very important.  Local Realtors should be prepared to discuss this with prospective tenants/landlords and the information below applies to Florida.

*  Know who the REAL owner of the property is.  Understand the rates and terms before offering a deposit.  There are so many scams today a prospective tenant should either work with a Realtor or do research on their own.  Get the facts!

*  The lease should cover expectations for showings.  Have a clear understanding of expectations for showings and be prepared to abide by them.  

*  A lease normally survives the sale.  If an owner desires to sale the property, the lease and terms are provided to the Realtor and/or buyer.  Any purchase agreement is subject to those terms.  All changes to the terms should be negotiated prior to closing.  This will enable the tenant to negotiate any change in their lease with the current owner.  It is the perfect time to discuss moving expenses, deposits on a new property, release of any existing deposits and any other terms important to the tenant/landlord.

*  Short sales and foreclosures are abundant and if the tenant isn't working with a Realtor, they will want to know in advance if the owner is current with their lender.  If not, realize that a foreclosure offers no Real protection.  The tenant could find a notice to vacate posted with little notice, in which case the deposit is likely a total loss unless recovered in small claims court.  Some lenders will allow the tenant notice or a "buy out" of the lease but remember, Nothing is predictable in those situations!