Sarasota real estate benefits from $8,000 tax “gift” and modest FHA financing guidelines. Soon, the rug will be pulled out from under house hunters not able to take action before change occurs.
Sarasota's housing recovery grimaces at new FHA home financing changes!
Recent Sarasota housing numbers suggest optimism – encouraging news to beleaguered sellers, business owners & real estate professionals breathing a small sigh.
However, is it premature exhalation?
Perhaps. In fact, just the other day, I read even more cataclysmic talk from the Standard & Poor’s folks. Maybe it is, maybe it isn’t.
Latest FHA bulletin surely will dampen housing recovery with new financing guidelines:
- Down payments will rise to 5% from current 3.5% minimum. Perhaps you feel home buyers SHOULD put more skin in the game…. Do you feel only buyers willing and able to invest 20% should be able to buy?
- Sellers only may contribute up to 3% of home’s sale price. Once guidelines go in to effect, no longer will sellers be allowed to contribute up to 6% toward buyer’s closing costs and pre-paids.
- Buyers also will pay higher mortgage insurance premiums…as suggested.
Monthly Sarasota home sales have climbed to the high 500s and low-to-mid 600s, compared to 2008 when sales often dipped to the low 400s and even into the 300s.
The overall number of closed sales in 2009 stood at 6,699, compared to only 5,459 in all of 2008, for a 22.7 percent increase. In addition, the overall property inventory has plunged from the 10,000 to 13,000 range in 2008, down to the low 6,000 level at the end of 2009.
Indeed, Sarasota real estate owners want and need to hear some encouraging news.
Whether or not another hurricane (more appropriate to Florida instead of using the word, “tsunami”) heads our way is anyone’s best guess. Without searching, I receive at least a dozen doom and gloom emails citing numbers – all guaranteeing Sarasota real estate is falling into the Gulf of Mexico <sorry, I’m mostly being facetious here>.
Sometimes I choose not to acknowledge them.
What do you think?
- Will recently announced FHA home financing guidelines kill any housing recovery?
- Should buyers not able (or willing) to put down at least 5% be forced to remain renters?
- To what degree will the $8,000 (and $6,500) tax “gift” negatively affect recovery?
Please scroll down to leave me a comment. Let me know what you think of these FHA guidelines. If you plan to buy or sell a house in or around Sarasota, please call me now. I will appreciate the opportunity to help you sell or buy.
Sarasota real estate will recover regardless of government intervention. What makes Sarasota special remains in tact. Nonetheless, more sellers certainly will face difficult decisions in coming months. If you or someone you know needs to (try to) avoid foreclosure, call me now. I’ll try to answer any questions you have.
* Search the entire MLS from Orlando to Tampa to Bradenton to Sarasota including Longboat Key, Siesta Key & Lakewood Ranch.
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