30-A Market Summary and Analysis for February 2010

February is always a volatile month for Real Estate…it is after the holidays…just starting the new year…before spring break…and can set the tone for the year for Real Estate. I have been looking deep into the crystal ball to see what 2010 will shape up to be and so far I have been spot on with my assessment:

1. Distressed Property is making up a significant portion of sales and inventory as the number of foreclosures rise. Distressed property represented 62% of all transactions for combined residential sales in February of 2010!

2. 2010 is the Year of Land! I said this back in October of last year and land sales and prices are getting blown to pieces. Year to date pending sales compared to the same period in 2009 are up 177%, lots sold up 135%..Distressed land sales are up 310%…Average price sold is down 42%...percent of selling price to list price is 78%. What this means is land prices are still too high and will continue to adjust downward until we decrease inventory. We have 3,674 parcels for sale along the Emerald Coast with only 120 parcels selling YTD in 2010. If you looking to purchase land, now is the time to start searching for some fantastic deals!

Distressed Lots and Land under $235K

Distressed Lots and Land over $235K

The Good

New inventory is down from February of last year by 25%

Scenic 30-A pending sales are UP 46% for Combined Residential

Single Family Residential Inventory on Hand along Emerald Cost is down 18%

 

The Bad

Residential Land is still struggling with only 120 lots sold out of 3,674 lots available

Distressed property represented 62% of all transactions for 30A Combined Residential

Distressed property sales including short sales and foreclosures are up 283% for February and 140% YTD

Residential land prices are experiencing a significant downward price correction

 

Scenic 30-A & Emerald Coast Market Summary and Analysis for February 2010 pdf Version

30-A Market Summary and Analysis for January 2010

2009 set a solid foundation for a slow market recovery for the South Walton Beach and Scenic 30-A areas. January 2010 was an excellent kick off to hopefully a year of solid recovery to our ailing Real Estate Market. Rental bookings, rental rates and buyer activity have been very promising so early in the year. Savvy buyers are getting excellent deals on premium properties. Look for a steady increase in sales volume throughout 2010 and watch as we should be tracking strong market numbers all year! Also take a look at the most expensive homes sold on 30-A for January.

The Good

New inventory is down from January of last year by 26%

Scenic 30-A pending sales are UP 75% for Combined Residential

Scenic 30-A median sales prices are up 80%

Single Family Residential Inventory on Hand along Emerald Cost is down 28%

Rosemary Beach Luxury Home sales outperformed all other luxury markets with 5 homes selling over $1million in January.

 

The Bad

Residential Land is still struggling with only 50 lots sold out of 3,716 lots available

Distressed property including short sales and foreclosures are up as expected

Residential land prices are experiencing a significant downward price correction

Pristine gulf front, waterfront, and luxury lots sold for a steal in January

 

Scenic 30-A & Emerald Coast Market Summary and Analysis for January 2010 pdf Version

South Walton Beach Top 3 Homes Sold in January 2010

It is hard to believe that January 2010 has come and gone with Spring in the horizon. We will be publishing our monthly South Walton Real Estate Review towards the end of the week to see how the Real Estate Market is kicking off for 2010. Rental demand is high, bookings are coming in early for Spring and Summer and rates are holding steady. All signs are showing that we should have a great year for Real Estate and begin the slow and tenuous path to recovery. So far the most popular words from potential buyers are…"if I had known it would sell for that price I would have bought it." If you are waiting on the sidelines before you purchase that special property you have been watching for over a year…you may miss the best buying opportunity of our generation. The best deals and the premium properties are going…going…gone!

There were some excellent luxury home sales in the first month of 2010 and here is a quick recap of the Top 3 Most Expensive Homes sold in South Walton Beach:

#1 – 111 Little Redfish Lane. This exquisite lake front property was our featured luxury home pick in August 2009. This one of a kind home on Little Redfish Lake was an extremely popular home but only one lucky buyer was smart enough to snatch up this gem. Premier luxury properties like 111 Little Redfish do not come along very often and once they are gone…they are gone. 4,287sf was listed at $3,200,000.

 

#2 – 49 Rosemary Avenue. Rosemary Beach had a very slow start in 2009 with almost non-existent homes sales for the first 6 months. Prices finally began to fall and properties were snatched up by savvy buyers. 49 Rosemary Avenue was a spectacular Tom Christ designed home with majestic gulf views. 4,250sf was listed at $2,300,000.

 

 

#3 – 270 Garfield Street. If you wanted an incredible Gulf Front Home in historic downtown Grayton Beach for a steal…it is too late…and if you wanted an incredibly rare gulf front lot in historic downtown next to the house…it is also too late, as the buyer bought both the house and the adjacent gulf front lot at the same time. 3,717sf  listed for $2,495,000 and the lot was listed for $895,000. If you had been watching these two premier properties you definitely will be saying…."if I had known it would sell for that price I would have bought it."

 

There is never a better time to buy, with historic low prices and interest rates it does not get any better than this. Give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email  us info@teambaranowski.com and we can show you some the best deals in town!

30A Market Summary and Analysis for 2009

What a crazy year 2009 was for Real Estate! It is already January 8th and I have almost long forgotten 2009. The good news is that across the nation and locally the lag in home sale transactions is over and the rate of price declines has slowed. The bad news is that we continue to see a large number of distressed property transactions such as foreclosures and short sales dominating the South Walton Real Estate market.

Short sale and foreclosures will be a significant part of transactions for 2010 especially for Condos, Residential Land and Commercial Real Estate. These three market segments have been lagging on recovery compared to Single Family Residential Homes. Panama City Beach Condos Market Analysis for 2009

30A and Emerald Coast Market Summary and Analysis for 2009 pdf version

30A Combined Residential [Single Family Homes, Condos and Town homes] had a 17% decrease in new listings and a 40% increase in transactions in 2009 from 2008. One of the biggest indicators to watch for in 2010 is the massive 300% increase in short sale and foreclosure transactions. This number will continue to grow in 2010.

WaterColor had a strong year of sales in 2009 with 31% increase in home sales compared to 2008 and a 750% increase in foreclosure and short sale transactions. WaterColor will continue to be a strong resale community and will have a large number of distressed residential lot sales in 2010. Click here to look at WaterColor Real Estate for Sale.

Single Family Home sales in the Emerald Coast MLS saw strong gains of a 23% increase in transaction volume and a 14% decrease in new listings from 2008. The great news is that inventory on hand went from 23 months in 2008 to 17 months in 2009 which is a 26% decrease from 2008. Currently we have 3,900 single family homes active in the MLS and had 3,890 homes sold for 2009. If we continue to see a slow down in new listings, inventory will continue to deplete as predicted and get into a manageable 12 month on hand of inventory. Distressed inventory including short sales and foreclosures for single family homes will continue to be a major influence on the overall market.

2010 should see significant changes in Residential Land. We are beginning see major price reductions many areas such as Forest Lakes, Grande Point, Draper Lake, and WaterColor as examples where attractively priced lots are being snatched up. This reduction in lot prices has been spurring on a flurry of lot sales and we will see an increase in new construction in 2010 and 2011 as inventory for single family homes dries up and lot prices continue to fall.

2010 will have a significant increase in Lis Pendens and foreclosures as unemployment continues to rise and the Obama Making Home Affordable Programs run their course. Many lenders had put moratoriums on foreclosures in 2009 while analyzing which home owners could participate in the bail out programs. As lenders work through the volumes of mortgages in default we will see an increase in foreclosures and bank owned property.

30A Market Summary and Analysis for November 2009

November 2009 proved to us that the market continues to recover with increased sales volume. In fact November saw a 44% increase in transaction volume for combined residential on the 30A Market which includes the South Walton East and Santa Rosa Beach South sections of the Emerald Coast MLS. More positive news is the 38% decrease in new listings for November 2009 which shows a continued history of declining volume. Increased transaction volume and decreased inventory is the magic recipe for a market turn around. We are going to keep a very close eye on the market during the December through February months which are traditionally slow. In influx of new foreclosures in 2010 may have an impact on inventory, however most Bank Owned Properties typically get snatched up with multiple offers the moment they hit the market.

Market summary & analysis for South Walton East and South Santa Rosa Beach November 2009

Unfortunately all of the naysayers about our market continue to get a consistent and empirical reminder that the market is working through our bad times and buyers are snatching up real estate at a steady and consistent rate . We have seen a consistent trend of increased sales volume as the prices have reduced. In any buyers market, when prices fall sales volume increases. Year over year we are seeing a consistent 33% growth in transaction volume.

WaterColor homes had a slow month in November with only 3 homes sold:

47 Royal Fern Way was a short sale and sold for $660,000

306 Red Cedar Way was a Bank Owned property and sold for $765,000

110 W. Summersweet Lane was a Huff Homes pre-sale in WaterColor’s Crossings District for $499,000 or $224/sf in WaterColor!

The most expensive home currently listed in WaterColor is 1942 East Co Hwy 30-A in WaterColor’s Gulf District for $3,950,000

Research: This Month in Real Estate October 2009

Every month Keller Williams performs an in-depth analysis of the Real Estate Market. August 2009 marks the last month of summer in 2009 and it was a very busy month for Real Estate transactions. This presentation looks at the National Real Estate Market. If you are interested in our South Walton market or specific areas including Grayton Beach, Seagrove Beach, Destin, Sandestin, Rosemary Beach, WaterColor or WaterSound, please call or email Craig or Tracy @ Team Baranowski 850.259.1788 or 850.259.4270.

CLICK HERE TO DOWNLOAD a pdf copy of the Team Baranowski – This Month in Real Estate August 2009 Report.

The detailed report includes: Home sale update, median home price update, inventory update, mortgage rate analysis, and affordability index update.

Recent Government actions including:

• First-time Home Buyer Tax Credit Update
• Credit Score Impact of Loan Mods
• Freddie Gets Serious About Helping

Research for Byers and Sellers:

• Little Improvements Make a Big Difference
• FHA Loans Continues to Be Popular for Buyers

U.S. economy slowly mending as hope remains for sustained housing recovery.

For nine percent of Americans seeking employment, it’s tough going out there. But better economic data is expected in the third quarter, and this projected improvement should translate into a positive boost for the job market and, importantly, lead to broader economic stabilization. At the same time, the housing market remains under pressure from record rates of home foreclosures.

Currently, the housing market’s main lifelines include the $8,000 tax credit for first-time buyers and the Federal Reserve’s massive purchase of mortgage-backed securities. Both of these programs may be running their course, however, as the tax credit is due to expire at the end of November and the Federal Reserve is starting to taper off its purchase of mortgages. In lieu of these government actions, the best hope for a more sustained recovery in the housing sector is a more normalized balance of inventory. Such a balance requires continued stabilization in home prices across the country, which will likely take some time.

In the meantime, as long as mortgage rates stay low and housing affordable, there are buying opportunities to be had and willing and able buyers who will continue to absorb inventory. So while home sales slowed from their strong pace in July, they continue to be much higher than before the stimulus. Lawrence Yun, NAR chief economist said, “The recent trend shows broad improvement in most of the country, but with an expected rise in foreclosures over the next 12 months we need to maintain a healthy level of ready buyers to absorb the inventory. An extension of the tax credit is critical to preserve incentives for financially qualified buyers to enter the market.”

Among the positive developments this month are the jumps in new home sales, personal income and spending. Increases like these show the economy is improving, albeit at a slow pace. Personal savings dropped to about 3%, meaning consumers are actually opening their checkbooks again, while still maintaining a degree of savings. The unemployment picture still remains gloomy, but the rate of layoffs decreased for the fourth consecutive month—a good sign.

Research: This Month in Real Estate September 2009

Every month Keller Williams performs an in-depth analysis of the Real Estate Market. August 2009 marks the last month of summer in 2009 and it was a very busy month for Real Estate transactions. This presentation looks at the National Real Estate Market. If you are interested in our South Walton market or specific areas including Grayton Beach, Seagrove Beach, Destin, Sandestin, Rosemary Beach, WaterColor or WaterSound, please call or email Craig or Tracy @ Team Baranowski 850.259.1788 or 850.259.4270.

CLICK HERE TO DOWNLOAD a pdf copy of the Team Baranowski – This Month in Real Estate August 2009 Report.

The detailed report includes: Home sale update, median home price update, inventory update, mortgage rate analysis, and affordability index update.

Recent Government actions including:

• Cash for Clunkers
• Phase I of Credit Card Bill Rolls Out
• Fed confirms commitment, Bernanke reappointed

Research for Byers and Sellers:

• Motivation for moving
• First-Time Home Buyers survey

Some economists believe that the almost two-year-long economic recession ended in June, and they’re forecasting a return to growth in 2010. So while the encouraging news points to prosperity ahead, the overall economy may continue to run into some road bumps along the way. In the meantime, the strengthening housing market indications bode well, as buyer confidence is increasing with affordability playing a big role.

Looking at existing home sales, the July numbers far exceeded expectations. In fact, for the first time in five years, existing-home sales have increased for four months in a row. That’s a lot of activity. So who’s buying, and what are they buying? First-time buyers continue to pace the market. They purchased 30% of homes in July. And distressed homes accounted for 31% of overall transactions.

The numbers indicate critical activity is occurring at the bottom of the property ladder, and this activity is triggering much-needed trade-up transactions. With the gains in sales, excess inventory continues to be absorbed. And with rosier economic forecasts for 2010, “the buyer psychology may be shifting from, ‘Why buy now when I can purchase later,’ to ‘I don’t want to miss out on a recovery,’” said Lawrence Yun, NAR chief economist.

An additional positive factor is the continued stabilization in housing prices. While prices are lower than they were at this time in 2008, home prices have risen from where they stood at the beginning of 2009. And that’s great news. As the prices hold more firmly, creditworthy borrowers are acting quickly to lock in near historically low mortgage rates. These rates, coupled with excellent affordability, make for an impressive buying opportunity for savvy investors sitting on the sidelines. “As long as home buyers stay within their budget, mortgage payments will be very manageable,” Yun said.On the broader economic front, while unemployment remains a major concern, the government has had solid success with its spending programs. The first-time home buyer tax credit and cash for clunkers automobile programs are considered great consumer successes. Additionally, a proactive Federal Reserve is working to keep interest rates at low levels as long as necessary. So while high unemployment will weigh on the economy for some time to come, governmental action, economic expertise, and time should deliver us to greener returns in the months to come.

Research: This Month in Real Estate August 2009

Every month Keller Williams performs an in-depth analysis of the Real Estate Market. August 2009 marks the last month of summer in 2009 and it was a very busy month for Real Estate transactions. This presentation looks at the National Real Estate Market. If you are interested in our South Walton market or specific areas including Grayton Beach, Seagrove Beach, Destin, Sandestin, Rosemary Beach, WaterColor or WaterSound, please call or email Craig or Tracy @ Team Baranowski 850.259.1788 or 850.259.4270.

CLICK HERE TO DOWNLOAD a pdf copy of the Team Baranowski – This Month in Real Estate August 2009 Report.

The detailed report includes: Home sale update, median home price update, inventory update, martgage rate analysis, and affordability index update.

Recent Government actions including:

• Fed’s latest support for the economy
• Key modification to Loan Modification Program
• Fannie Mae’s policy change concerning job transfers
• FHAs plan to expand capacity

Research for Byers and Sellers:

• Credit Scores Decoded
• Tips from myFICO.com on Credit Scores
• How to impress potential buyers in a competitive market

US housing market seeing growing light at the end of tunnel

The end of the meltdown may be in sight, but the long road to recovery will likely be a long one. The last 24 months have been a rough ride for the US housing market. Thankfully, federal regulation and fiscal policy have been effective in easing the impact of the great recession. And now many experts are citing encouraging signs that are driven by the summer seasonality of the housing market but may also point to stability. Take existing home sales, for example, which have increased for the fifth consecutive month. Also on the rise are home prices, an all-important indicator of stability. In today’s battered market, rising home prices translate to a more balanced supply and demand picture.

By all indications, the market still represents opportunity. The $8,000 first-time buyer tax credit is set to expire at the end of November, but remains a powerful incentive. While first-time buyers are active, more repeat buyers are also taking advantage of favorable mortgage rates and better prices. These two broad groups of buyers are absorbing excess inventory. Mortgage rates, which now sit between 5-5.5% range, are slightly above the record low of 4.78%. Thus they are still very favorable and represent an historic opportunity for qualified potential buyers. The housing affordability index also remains very strong, as prices are adjusted to levels not seen since the mid-2000s.

The overall U.S. economic scene looks a bit brighter as GDP figures came in better than expected for the second quarter. The economy declined at a pace of just 1% over the past quarter, a great improvement from the first quarter’s decline of 6.4%. Economists point to this a potentially strong signal that the longest recession since World War II is finally beginning to wind down. Looking forward, the GDP is expected to return to positive territory in the third quarter and increase further in the fourth quarter.

An increasing trend is American consumers’ movement toward real savings. Last month alone, the U.S. savings rate hit 4.6%, a marked change from the negative to 0% savings rate for the entire decade. Economists consider a savings rate of 5% beneficial for the long-term viability of the economy and housing market. With increased savings, lower consumer spending could result in a slower recovery, but might lay the foundation for sustainable growth in the future. With limited prospects of new job growth, unemployment will continue to remain in focus as the best indicator of broader recovery.

South Walton Market Summary and Analysis for August 2009

August 2009 was an amazing month for South Walton Real Estate. We personally had our busiest month all year and we are seeing all of our colleagues be equally busy and optimistic about the Real Estate market.  The market is slowly recovering with continued increases in sales volume and a critical reduction in inventory. Single family home prices rose from the same period last year by 25% but are still down 29% year to date. Below you will find market analysis for South Walton East and South Santa Rosa Beach area for Combined Residential (Single Family Homes, Multi-Family and Condos). You will also find single family home summaries for WaterColor and WaterSound.

Click for South Walton Market Summary pdf

Click for WaterSound Market Summary pdf

Click for WaterColor Market Summary pdf

Has the market over corrected? Are we on the fast track to recovery? I believe we are still in for a long recovery of the Real Estate market. Prices continue to stabilize and I believe have over corrected in some areas. Nationwide the signs of recovery are very strong and we will all watch the market closely as we approach the slower winter months.

Research: This Month in Real Estate July 2009

Every month Keller Williams performs an in-depth analysis of the Real Estate Market. July 2009 was a critical month in Real Estate as July is typically one of the most busy months of the year for Real Estate transactions.. This presentation looks at the National Real Estate Market. If you are interested in our South Walton market or specific areas including Grayton Beach, Seagrove Beach, Destin, Sandestin, Rosemary Beach, WaterColor or WaterSound, please call or email Craig or Tracy @ Team Baranowski 850.259.1788 or 850.259.4270. CLICK HERE TO DOWNLOAD a pdf copy of the Team Baranowski – This Month in Real Estate July 2009 Report.

The detailed report includes: Home sale update, median home price update, inventory update, martgage rate analysis, and affordability index update.

Recent Government actions including:

• Fed’s latest support for the economy
• Key modification to Loan Modification Program
• Fannie Mae’s policy change concerning job transfers
• FHAs plan to expand capacity

Research for Byers and Sellers:

• Credit Scores Decoded
• Tips from myFICO.com on Credit Scores
• How to impress potential buyers in a competitive market

This month offers a lot of encouraging news for the U.S. housing market. Home sales have now shown a steady increase for four consecutive months. Housing inventory has decreased and home prices have edged up compared to last month.

Many economists still cite a recovery in real estate as key to economic stability—bringing more jobs, growth, higher income opportunities, and stronger, more stable tax revenues. The banking sector looks to stand on firmer footing as institutions begin repaying TARP funds. Yet the credit market remains tight, which presents challenges for mortgage applicants. Any sustained rebound will likely be tied to better credit availability for aspiring homebuyers.

Consumer spending has slowed as consumers readjust their personal balance sheets and increase their savings. And in the past month the U.S. savings rate has actually moved above the Canadian rate. While their saved money is not directly benefiting the economy today, restored financial health will improve conditions for sustainable spending in the future.

Given firmer stability in the housing and financials sectors as well as a shift to consumer saving, the overall economy appears to be on a slow track to improvement. While any signs of progress must be weighed against the potential road bumps ahead, sustained economic recovery over the next year is expected to come in piecemeal fashion. Some uncertainty factors include unemployment numbers, rising mortgage rates, and new appraisal rules.

South Walton Market Summary and Analysis for June 2009

June 2009 proved to us that the market is slowly recovering with increased sales volume. It also showed that our single family home prices are down from the same period last year. WaterColor homes represented the largest sales volume for the month of June. For a detailed analysis see below:

Market summary & analysis for South Walton East and South Santa Rosa Beach June 2009

There are no surprise here. We have seen a consistent trend of increased sales volume as the prices have reduced. In any buyers market, when prices fall sales volume increases. We will continue to see sales volume increase through the summer months and will closely track median sales prices and average price per square foot.

WaterColor homes represented the largest percent of sales volume for the month of June 2009 with 11 of the 36 homes sold. WaterColor’s Turtle Ridge had four homes sell from $499,000 to $425,000 at 1,700sf to 2,000sf. The highest priced home for the month of June was 357 Western Lake Drive in WaterColor. It was a beautiful 6 Bedroom / 6 Bath 5,207sf new home on Western Lake Drive in WaterColors highly sought after Park District. The home sold for $2,750,000 and was $528/sf. The average price per squarefoot in WaterColor for the month of June is $353/sf and median sales price was $895,000 which was skewed by the 4 Turtle Ridge Homes.

The most expensive new listing is 179 Pelican Circle in Seacrest’s Camp Creek Lake subdivision. “Surf Serenade” is a premier gulf front property with 7,295sf and is priced at $5,995,000 which is $821/sf.

Research: This Month in Real Estate, June 2009

Every month Keller Williams performs an in-depth analysis of the Real Estate Market. May 2009 was a critical month in Real Estate especially with home prices falling to 2003 level and the first signs of the market bottom are in play. This presentation looks at the National Real Estate Market. If you are interested in our South Walton market or specific areas including Grayton Beach, Seagrove Beach, Destin, Sandestin, Rosemary Beach, WaterColor or WaterSound, please call or email Craig or Tracy @ Team Baranowski 850.259.1788 or 850.259.4270.

The detailed report includes: Home sale update, median home price update, Inventory update, martgage rate analysis, affordability index and more. See screen shots below…

Predictions by the Keller Center at Baylor University appear to be on target. A poll of 840 economists last year suggested the housing market would recover this year with a slow rejuvenation in sales, strengthening prices and mortgage rates staying relatively steady for the year. Approximately 75% of economists predicted that the market would bottom at the end of this year. More than half expected a bottom by the second quarter of 2009.

Pending home sales, a leading indicator for the housing sector, recorded the largest monthly gain since October 2001. Favorable market conditions continue to encourage buyers into the market. Housing affordability remains in record territory with 30-year mortgage rates hovering around 5%, home prices approximately 30% below levels seen during the 2006 peak, and an abundance of homes on the market. A rise in construction spending on the back of increasing builder confidence and the slowing rate of job losses are also pointing toward a possible turnaround.

First-time buyers continue to drive activity to the benefit of trade-up or repeat buyers. Their flurry of activity owes much to the $8,000 first-time buyer tax credit. In April first-time buyers accounted for 40% of all home sales, and the trend is expected to spur more activity in the coming months. “Since first-time buyers must finalize their purchase by November 30, 2009,  to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers,” according to Lawrence Yun, NAR chief economist.

A recent change this month allows qualified first-time home buyers to use the tax credit to help pay closing costs on FHA loans or to buy down the interest rate or make a larger down payment.

Click here to download a detailed analysis presentation on the National Real Estate Trends June 2009 Report.

Research: This Month in Real Estate, May 2009

Every month Keller Williams performs an in-depth analysis of the Real Estate Market. May 2009 was a critical month in Real Estate especially with home prices falling to 2003 level and the first signs of the market bottom are in play. This presentation looks at the National Real Estate Market. If you are interested in our South Walton market or specific areas including Grayton Beach, Seagrove Beach, Destin, Sandestin, Rosemary Beach, WaterColor or WaterSound, please call or email Craig or Tracy @ Team Baranowski 850.259.1788 or 850.259.4270.

Housing Market Offers Opportunities, Glimmers of Hope

Buying opportunities abound for value-savvy home shoppers in select markets across the nation, where prices have fallen to 2003 levels.  While home prices are still declining on a year over year basis, they are falling at the slowest rate in five months, which indicates a degree of stabilization compared to recent months.

Attractive prices, coupled with strong affordability and mortgage rates below 5%, translate to more buying power for home buyers. Buoyed by the $8,000 federal tax incentive, first-time buyers represented the majority of transactions closed last month. Their activity is expected to remain high and reduce the glut of homes on the market.

According to Charles McMillan, “Compared to a year ago, the typical family can pay much less in mortgage costs for the same home, or buy a better home without necessarily increasing their monthly payment. For buyers who’ve been on the sidelines and have good jobs, the market has never looked more favorable. Home ownership has always offered immediate benefits and long-term value, but the advantages in today’s market are unique.”

Another positive factor is the return of the jumbo loan. For nearly a year, it has been almost impossible for buyers to find financing for homes selling for more than $417,000. Bank of America recently began offering a 30-year fixed rate jumbo at less than 6 percent. Other banks are starting to follow suit.

Home sales and other consumer spending data combined with big earnings at some banks indicate that the U.S. economy is on the road to a gradual recovery this year. “The economy is still very weak, but there are some encouraging signs that support cautious optimism,” said Dennis Lockhart, president of the Federal Reserve Bank of Atlanta.

Click here to download complete report: This Month in Real Estate, May 2009

If you are considering buying or selling a luxury beach home, put the Team Baranowski advantage to work for you. If you have questions, our team is always available – 850.259.1788 or 850.259.4270. If you are interested in distressed property including short sales and foreclosures click here.