Applications for Florida mortgages fell last week across the Sunshine State as refinancing activity cooled and the number of business days were shortened by the Thanksgiving holiday, the Mortgage Bankers Association reports.

The seasonally adjusted index of total Florida mortgage applications fell by 3.9 percent for the week ending November 24.

However, the four-week moving average (a better gauge of how the market is trending overall) for the applications rose by 1.1 percent to 622.8.

• Overall, mortgage applications were pulled down in large part by a drop in refinancing.
• Refinancing had been strong in recent weeks as rates tumbled considerably from their highs posted earlier this year, and people looked to capitalize on lower, fixed-rate loans.
• But in the past week, that was nowhere to be seen as applications for home mortgage loan refinancing dropped by a significant 9.6 percent to 1,749.6, the group said.
• At the same time, traditional applications earmarked for Florida home loan purposes rose for the third time in the last four weeks, albeit at a modest 1.3 percent clip.

Experts say the data suggests that the worst of the year’s Florida housing market slump has passed and that the market is stabilizing. The Mortgage Bankers’ index had dropped to 375.6, the lowest level in the current downturn, from around 500 a year ago at this time.

In the U.S. as a whole, the pace of existing home sales unexpectedly rose in October to a 6.24 million-unit annual rate as lower prices continue to tempt buyers.

The median home price declined 3.5 percent from October 2005, actually signaling the largest year-on-year decline since the National Association of Realtors began keeping records of such figures in 1968. That’s luring many people back to the market, even in areas such as South Florida were the prices have gotten so inflated in recent years.

As for Florida mortgage loan borrowing costs? Long-term, 30-year fixed-rate loans last week could be garnered for 6.13 percent, the lowest level since January. Expect more of the same when reports on rates come out later this week. Now is the time to buy!

The Brevard County housing market continued to slow last month, according to figures released yesterday by the Florida Association of Realtors.

Compared with a year earlier, home sales fell for both single-family homes and condominiums in October. So did the median selling price — the point where half the homes sell for more, half for less. However, residents and agents need not sound the alarm just yet. While the news was disappointing to an extent, there were some positive aspects to the data.

For one, inventory remained stable. In addition, the median-selling price in October of $212,400 was higher than the September price of $206,100. In October 2005, the median sales price was $238,200. The September-to-October jump in the median sales prices was the first increase since a May-to-June bump to $232,900 from $228,300.

There’s more, according to the Florida Association of Realtors:

• October sales fell 8 percent, to 472 from 512 a year earlier.
• Condominium sales year over year plunged 69 percent in October, falling to 85 transactions from 273 in October 2005.
• The median price for condos in Brevard County dropped 17 percent, dipping to $179,000 from $214,400 at this point in 2005.

While a market slowdown is never perceived as good news for people trying to sell their homes, there are some decent points to a cooling Florida real estate market.

Namely, people who previously were priced out of the market can find new opportunities to buy properties. A Florida mortgage is going to be expensive no matter what, but declines of a few thousand dollars can make all the difference to those trying to qualify.

For those trying to sell a home or a condominium, many are reducing their prices and not expecting the windfalls they might have received a year or two years ago. The record median sales price in Brevard is $248,700, set in August 2005.

Local statistics for Brevard County show housing inventory has dipped slightly with the combined numbers for single-family homes, condos and townhouses for sale falling to 10,728 this month from 10,910 in October.

Gene Collins, president of the Melbourne Area Association of Realtors (MAAR) said today there currently are 7,504 single-family homes, 2,539 condominiums and 685 townhouses listed for sale in Brevard. That compares with 7,704 single-family homes, 2,510 condos and 696 townhouses listed for sale in Brevard a month ago.

Now through early next year traditionally is a slow period for real estate as people concern themselves more with the holidays than buying or selling a home. Collins said there is a significant number of potential buyers who most likely are waiting until early next year to make an offer.

“We still have to convince sellers we’re in a new phase and the asking prices they had last year are probably not realistic now,” Collins said.

You don’t have to tell that to Daryl Adkins. He’s been trying to sell his three-bedroom home for more than a year and has dropped the asking price of $325,000 to $238,500.

“It’s slow all over the county because there is so much on the market,” Adkins said. “Higher taxes and insurance costs aren’t doing us any justice either.”

As the pace of homes sales slows down across the Florida housing market, many potential buyers are turning their attention to condominums.

With that in mind, CondoMetropolis.com LLC is launching an online site in December dedicated exclusively to condominium sales and purchases in Orlando. Those considering Florida home loans for the purpose of these kinds of residences should take note.

Marcus Burke, founder of CondoMetropolis.com, says the new site will allow buyers in Orlando to browse and compare all the current condo opportunities without ever leaving home.

The company plans to use its database to index every “for sale” condo community in Orlando, based on more than 100 different criteria.

“So if what you’re looking for is a condo with a Spanish tile roof, a two-car garage, attached, and a game room with shuffleboard, it can tell you exactly where to go,” Burke says.

Visitors to the site can get pre-qualified for a Florida home mortgage and hunt for a local agent all at no charge, Burke says. Landlords and tenants can also list their properties for free.

You may also discuss various options right now with our team of Florida home loan brokers. Complete the FREE form atop this page and wait less than 24 hours to be contacted. There are no obligations to commit.

While the sales of existing homes nationwide saw their first gain in eight months last month, sales throughout the Sunshine State remained much lower than where they were last year. Florida mortgage applicants continue to wait out the uncertain conditions.

That may change for buyers in the Sarasota-Bradenton market, however. That region has seen prices plunge nearly $65,000 from last year, providing an opportunity for lower-income workers to make a purchase.

Sarasota-Bradenton’s median existing home price fell to $277,900 - from $340,700 where is was just one year ago. But falling prices haven’t sent buyers banging on doors just yet, as sales remained 24 percent lower than last year.

Condos continued a steeper descent in both sales and prices, with sales down 51 percent from last October and prices down nearly $80,000. This makes such purchases an even better dealfor those taking out a Florida mortgage loan.

Condo sales statewide fared far worse than single-family home sales, according to numbers released by the Florida Association of Realtors today.

In a year marked by falling home prices, record-high inventory and shocking hikes in property taxes, putting a positive spin on the Pensacola area’s 2006 housing market would seem a difficult task.

But according to the Pensacola News-Journal, some local Realtors are doing just that, looking past the roller-coaster year and the homeowner’s insurance quagmire gripping the state to strike a similar theme: “Things aren’t that bad, and it’s a great time to buy.”

“In spite of a lot of bad-looking data, this year in Pensacola is going to end up probably better than the state and certainly better than most of the counties in the Panhandle,” said Auby Smith, the outgoing president of the Pensacola Association of Realtors. “In fact, it’s going to be the third best year (in terms of sales volume) ever.”

Smith added he is optimistic about 2007 because Florida mortgage rates remain low and residential home prices have settled back to realistic market levels. Veteran Realtor Al Ingram agrees with Smith that it’s a buyer’s market.

“In my 25 years in the real estate market, I’ve never seen a better time to buy or sell. Inventory is high, but mortgage rates continue to be low,” Ingram said, adding that sellers finally are reducing unrealistic prices for their homes and letting the market price their property.

Houses priced “at market” are selling relatively quickly, experts say.

Despite Smith’s and Ingram’s upbeat take on the North Florida housing market, the inventory of unsold homes remains at record levels. At the end of last week, the Pensacola MLS had more than 6,400 homes on the market, and that number excluded houses “for sale by owner.”

That consistently high amount of inventory, which has hovered above 6,000 for the past six months, worries Al Muller, co-owner of Metro Market Trends, an independent Pensacola firm that monitors home sales.

“The biggest question coming up with people I talk to is, ‘With more than 6,000 homes for sale, just what do those people do when they sell?’ ” Muller said. “How many have left the area because of hurricanes, high insurance rates and property taxes? That’s the critical question.”

While Muller said he lacks the data to answer that question, he points to recent U.S. Census data that show Escambia is one of only two counties in Florida — the other is Monroe — that have shown a net loss in population between 2003-2005.

Much of that loss can be attributed to the effects Hurricane Ivan had on Pensacola Bay Area housing stock, Muller said. But the question remains whether many former residents have left Escambia County permanently due to problems making Florida home mortgage payments or for other reasons altogether.

Ingram, however, believes that a large portion of the housing inventory is composed of large homes occupied by baby boomers looking to downsize.

“What I see happening is people selling larger homes and buying some smaller, newer houses with lots of amenities. With taxes and insurance so high, people are putting more into less,” Ingram said.

Going by recent headlines on the sagging North Florida housing market, you might think real estate investing is dead.

Jacksonville hasn’t seen the major price corrections that have nailed the South Florida housing market and the West Coast - at least so far. But like in those places, Northeast Florida’s home flippers - those guys who bought for $200,000 and sold for $300,000 a few months later - have almost left the buying side of the market completely.

If you’re looking to buy a home for investment purposes now, you can’t expect the home to show the same price appreciation that was seen last year. But for those looking for a Florida mortgage to buy, builders have offered impressive incentives to offset the cost of a new home.

The number of home sales dropped 23 percent between September 2005 and 2006. The sales drop off gives buyers a wide range of homes (with anxious sellers) to choose from, and that competition may have already caused home prices to ease in the area: They were down 2 percent between September 2005 and 2006.

Officials from the Northeast Florida Builders Association say the current climate is exactly what makes it a good time to buy, but if you have the choice to buy your home now or later, you have to ask yourself if you think the local market’s reached bottom or if there are more discounts to come.
Regardless, the buy-and-flip model of investment is on the skids for now. But there are several other ways to make money in real estate.

BUYING INTO THE BIG TIME

Perhaps the toughest segment for an investor to break into is office or commercial real estate space, where large development companies dominate the buying and selling scene.

The value of those investments act much differently than homes. An office park’s value grows only as the amount of rent the owners can charge grows. Office space that isn’t built specifically for a company is most often owned by investors - organizations that have been in the business for a long time and have much more capital than you can probably muster.

To capture some of the income that commercial ventures afford, it can make much more sense to invest in those companies themselves. Shares of public real estate investment trusts (REITs) trade just like ordinary stocks on the open market. Also, REITs can be grouped into mutual funds that focus on specific regions or just track the entire industry.
TURNING TO TENANTS

In the new North Florida real estate market, where buyers can’t expect to flip a home for a substantial profit in just a few months, some investors are turning their second and third homes into a steady income.

Savage, who owns 19 rentals, said it takes a certain personality to manage tenants. His personal philosophy is to invest only in houses that can be rented for at least 1 percent of their market value. A $200,000 home, for example, would need to rent for $2,000 per month. Anything less than that and the return on investment is too low to warrant keeping it.
BUYING ON THE BLOCK

In Jacksonville and beyond, the real estate bargain basement doesn’t end with discounted resales or with new homes that have piles of incentives.

As adjustable-rate mortgages start saddling homeowners with payments they can’t handle, investors might be able to find great Florida foreclosure deals. Jacksonville has had one of the highest foreclosure rates in the country of late, clocking in at one foreclosure per 189 households. That ranked 22nd out of the 100 largest metro areas in the United States.

While foreclosure investors sometimes are derided as taking advantage of homeowners’ distress, in reality, they sometimes help those owners get out of a bad Florida mortgage loan situation without losing everything. And it sure beats the alternative: Once a home reaches the courts, the situation is out of the owners’ hands.

The pace of home sales in Florida continued to slow in October, though some markets report that the inventory of homes available for sale also eased last month.

A total of 12,773 existing single-family homes sold statewide last month, a decrease of 22 percent from the 16,407 homes sold during the previous October, according to the Florida Association of Realtors(FAR).

Statewide, the existing-home median price remained level at $242,500 last month; a year ago, it was $243,400, according to FAR. Therefore, those considering Florida mortgages can at least take comfort in reasonable prices in the state.

Future of Florida housing market

Following current market adjustments, existing-home sales in the U.S. are expected to remain at about the same level next year, according to NAR’s latest market outlook, which predicts 2006 to be the third strongest sales year on record nationally.

NAR Chief Economist David Lereah notes that conditions for buyers have improved, Florida mortgage interest rates remain near historic lows and most sellers - those who have been in their home for a normal period of homeownership - are still seeing very healthy returns on their investment.

Looking to the Florida condominium market, sales of existing condos also decreased in October, with a total of 3,440 condos sold statewide compared to 5,001 in October 2005 for a 31 percent decrease, according to FAR. The statewide median sales price for condos last month was $209,200; a year ago, it was $213,600 for a 2 percent decrease.

According to Freddie Mac, a 30-year fixed-rate mortgage averaged 6.36 percent last month, up from 6.07 percent in October 2005. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after Florida home mortgage contracts are written.

Breaking down various housing markets

Among the state’s larger markets, the Fort Lauderdale housing market reported 591 existing homes sold last month, compared to 561 homes sold a year ago for a 5 percent increase.

The market’s median existing home price decreased 5 percent at $349,400; a year ago, it was $368,900. A total of 580 existing condos changed hands in Fort Lauderdale in October for a 21 percent decrease over the 737 condos sold the previous year.

“Inventory levels appear to be stabilizing and sales prices also are leveling,” says Dorine Longhini, president of the Realtor Association of Greater Fort Lauderdale and manager of the Lighthouse Point office of Coldwell Banker Residential Real Estate Inc. “This is good for buyers, who have more options in the market, while the biggest impact has been on speculative buyers.”

Of the state’s smaller markets, the Fort Pierce-Port St. Lucie sector reported a total of 367 existing homes sold in October - compared to 334 homes sold a year earlier for a 10 percent increase in Florida mortgage demand.

The area’s median existing home sales price was $242,400 last month; a year ago, it was $263,500 for an 8 percent decrease. Fifty-three existing condos sold in the area last month for a 31 percent decrease from the 77 condos sold a year ago.

“I see evidence that the real estate market is on the rise,” says Jerry Mabus, president of the Realtors Association of St. Lucie and broker associate with All Florida Realty Services in Port St. Lucie. “We’re on the cusp of growth in a new direction: School officials here say that they’re projected to spend $2 billion on new schools through 2025; and since May, we’ve had 3,000 new students coming into our schools.

We have five quality universities that have developed satellite campuses here in St. Lucie County and Torrey Pines molecular research institute is moving its headquarters here. With this kind of growth comes greater economic stability.”

Florida mortgage costs fell last week, with rates on conventional 30-year mortgages sinking once again to their lowest level in 10 months.

Freddie Mac reports that 30-year, fixed-rate Florida mortgage loans - the industry’s most common home loan and considered to be the benchmark - averaged just 6.18 percent for the week ending November 22. That’s down from 6.24 percent last week and was the lowest rate since the week ending January 26, when 30-year Florida home loan rates ended the week at 6.12 percent.

This marked the second week in a row that mortgage rates dropped, a trend economists attribute to easing inflation pressures. Inflation is calming down amid stabilizing energy prices, slower overall economic activity and the widely-discussed housing market slump.

After five years of record-setting activity, the housing market has lost a fair amount of its pop this year. Sales have fallen, home builders have cut back on construction and home prices have dropped considerably, with the South Florida housing market falling the hardest.

All categories of mortgage rates surveyed by Freddie Mac showed drops this week, offering some welcome news to those looking to purchase their first home.

• Rates on 15-year, fixed-rate loans, an extremely popular choice for Florida mortgage refinancing, averaged just 5.91 percent - a bit lower than the average rate of 5.94 percent seen last week.
• For one-year adjustable-rate mortgages (ARMs), Florida home loan rates fell to 5.49 percent, compared with 5.53 percent last week.
• Five-year adjustable-rate loans dropped to 5.99 percent this week, a decline from the 6.04 percent average recorded last week.

The rates here do not include the fees known as points. Both 30- and 15-year mortgages each carried an average fee of 0.5 points. One-year and five-year ARMs each carried a fee of 0.6 point. One year ago, 30-year Florida home loans averaged 6.28 percent, 15-year mortgages stood at 5.81 percent, one-year ARMs were at 5.14 percent and five-year ARMs 5.75.

Baker County residents who believe the area is growing too fast can relax a bit.

The Florida real estate slump that began nationwide during the summer is clearly obvious here as 2006 draws to a close. The balloon has burst, and property priced too high sits unsold.

The downward slump is most noticeable in the “new market” - developments like Sands Pointe, Rolling Meadows, Heritage Oaks and Cypress Pointe that sprouted up around the fringes of Macclenny in 2006. They are planned and platted subdivisions by out-of-county companies like KB Homes, Drees and Richmond American, Watson and Maronda, all specialists in the mid-range market of homes costing $175,000-$275,000.

For the time being, they are all scaling back, waiting for an uptick in the market expected by mid-2007 as low Florida mortgage rates spark demand.

The City of Macclenny issued 111 new home permits in 2006 through November: 91 of them January through July when the market starting falling off. Had activity continued at the same pace, total permits for 2006 would be riding around 156. Compare that to 115 in 2005.

Even with the downturn, the projected pace for all of 2006 will be 143 new home permits in the city, a respectable 24 percent increase over last year.

Outside Macclenny, new housing starts dropped to three applications this month, down from nine last year in November. In October, there were four, compared to seven last year.

“It starting slowing in summer, but remember we deal [outside Macclenny] mostly with individuals building for themselves,” said Robert Hathcox, the county’s building official. “Our activity won’t pick up until some of these large developments they are proposing get underway.”

The residential real estate market in Baker County has stagnated in the closing months of 2006, and properties priced at the “boom” level are staying on the market.

“The way the market is now, sellers are having to come down on prices – it’s no longer their market,” observes Wayne Combs of Homes and Land of North Florida, a Macclenny real estate company. “Land prices, however, seem to be holding their own.”

To gauge the status of the North Florida housing market, look no further than Heritage Oaks, a Watson Homes development in Macclenny, will construct an amenities center this winter – a pool and other features – to jump start its 70 lot tract. Doug Warren, a spokesman for Watson, has said that the home builder has put special pricing on several units already built to get them off the inventory before January 1.

“If I was in the market, I’d be out there looking and buying right now,” he said. “All the home builders are busy trying to sell off their inventory.”

Even with Florida mortgage loan costs low, Watson doesn’t see the market climbing back to pre-July levels when new and on-market housing rose to often unrealistic levels, but he does predict an upswing by the second quarter of 2007.

On top of builders’ actions and Florida mortgage rates, the title company activity is generally an accurate bellweather of real estate activity, and experts believes Baker County took a hit beyond the flattening market. The spike in gasoline prices this summer turned off the spigot of potential home buyers looking for a way out of Jacksonville.

The number of homes on the MLS in Baker County averaged 50-60 since summer, but of late rose to above 100. On Tuesday there were 106 properties and 28 pending sales. One of the pendings is over $300,000 and several are in the high $200s; the majority fall in the under $200,000 category and that’s where she sees the greatest activity – for now.

So, what do we know?

• The bubble has burst – no one disputes that as November winds down. If you were a seller and wanted in on the frenzy that was 2005 and half of 2006, you missed the boat.
• If you’re a buyer in Baker County in 2007, and you either have the cash or the ability to get a Florida home mortgage, the slump may be working in your favor.
• If you’re one of the large-scale developers caught in the flat zone, you’ve seen this before and you know how to wait out the market.
• If you own land in Baker County and have a mind to sell it, you’re in the driver’s seat.

The National Association of Realtors (NAR) reported Monday that the median price of a single-family house in the third quarter dropped 1.2 percent from a year earlier across the nation, continuing a reversal of fortune for sellers that started last winter.

Prices in the Northeast, down 4.8 percent, fell the most. Prices dropped 2.6 percent in the Midwest, 0.9 percent in the West and 0.1 percent in the South.

While the Detroit market, buffeted by auto industry layoffs, suffered the largest loss - prices there plummeted 10.5 percent, to a median of $154,100 - the Florida housing market wasn’t too far behind.

Specifically, three Sunshine State metro areas were hit hard by price drops:

1. In Sarasota, the median home now sells for $320,700, off a whopping 9.4 percent from last year
2. Palm Bay/Melbourne/Titusville prices sank 9 percent to $193,600
3. Cape Coral prices plunged 8 percent to $255,400.

Sarasota condo prices also dipped, 11 percent to $275,600, the largest drop in any condo market. This simply re-inforces the idea of a buyer’s market and should encourage buyers to apply for a Florida home mortgage ASAP.

Even more dramatic than the price drops was the fall in the number of sales. Nationally, the total numbers for sales of existing single family homes, condos and co-ops went down 12.7 percent compared with the third quarter of 2005.

The decline was off the charts in Nevada, down 38 percent. Arizona, ( - 36 percent), Florida (- 34.2 percent), California (- 28.6 percent), Hawaii (- 25.8 percent) and Virginia (- 24.4 percent) also experienced steep drops.