5 Cash offers in 24 Hours – Under Contract!

Rosemary Beach has only had 4 Bank Owned Homes come onto the market: 57 Bourne Lane sold after being on the market for 14 days as an REO, the carriage house on 8 Dill Lane lasted 16 days on the market and 69 Johnstown Lane just went under contract on the 20th of April 2010. Bank Owned properties in Rosemary Beach do not last long! In fact there are  currently 14 homes under contract and 16 have sold since January 2010 in Rosemary Beach which is a 16X increase from the same period in 2009!  Homes are selling in Rosemary Beach and buyers are snatching up great buys quickly.

54 Round Road is the latest of the Bank Owned Properties or REOs to hit Rosemary Beach. Team Baranowski has been watching this him closely as it went through it assignment to an asset manager at Wachovia then be assigned to an REO agent and then go though some minor cosmetic updates…and onto the market. This home foreclosed in December and is being watched by many savvy buyers. The home snuck onto the market quietly as it was listed in Panama City MLS versus the Emerald Coast MLS and has not been seen by many 30A Realtors.

Rosemary Beach Homes and Condos for Sale

Rosemary Beach Distressed Property for Sale

Rosemary Beach Market Analysis and Market Snapshot

54 Round Road in Rosemary Beach

54 Round Road needs some TLC and upgrades to make it a classic Rosemary Beach Luxury Home. It's location is outstanding, situated on the South Side of Rosemary Beach with only a short walk to the Eastern Green and beach access. This home's corner location offers three sides of privacy with only one side sharing a property line with another home. This bank owned property in Rosemary Beach has a main house with 4 bedrooms and 3 and 1 half baths and a comfortable sized carriage house. 54 Round Road has a private courtyard,  a large carport, 2 laundry areas and ample porch areas for enjoying the evening gulf breezes.

Rental income is estimated to gross $80,000 to $100,000 per year based upon the home's superior location, gulf views, size and functional floor plan. 54 Round Road would be a steal at $1.1 million to  $1.2 million compared to other comparables in Rosemary Beach. With some key upgrades and chic furnishings this home would be valued at $1.5 million to $1.6 million! This wonderful Rosemary Beach home will not last long!

Rosemary Beach Bank Owned Property 54 Round Road
Offered at $975,000
3,136sf
5 Bedrooms, 4 Full Baths, 1 Half Bath
Built in 2001

If you are interested in buying a distressed property on Scenic 30-A or if you are interested in Team Baranowski listing your home. Please give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email  us info@teambaranowski.com.

80 Chelsea Loop makes the top of my list as my Top Distressed Property Pick for this week. This beautiful home in Summer's Edge just foreclosed on July 29th and will be coming onto the market in a few weeks. What does that mean?

Our customers and subscribers of our newsletter will be the first to know about this hot property about to hit the market! 80 Chelsea Loop is two rows back from the Gulf of Mexico and has excellent views of the Gulf. This home is currently listed for $749,000 as a short sale until the property is assigned to an asset manager and put back on the market as a Bank Owned Property / REO. This amazing home in Summer's Edge will be snatched up for a steal! If you are interested call or email us to get on our HOT LIST for this property.

Summer's Edge Homes for Sale

30A REOs for Sale

30A Short Sales for Sale

Very Popular Beach Rental on the South Side of 30-A with unobstructed Gulf Views! Beautiful 4 bedroom home with 2 large living areas. Home features hickory wood flooring throughout, tile baths with granite counters, spacious kitchen with stainless steel appliances, breakfast bar and lots of cabinetry. Perfect home for rental or permanent residence – Summer's Edge is a well maintained neighborhood, with good rental history. Tastefully decorated throughout – Views of the beach can be seen from all the living areas, kitchen-dining, all exterior porches and most bedrooms. This house is a MUST see & Rental Machine.

If you are interested in this Bank Owned Property in Summer's Edge and would like to preview it or if you are interested in Team Baranowski listing your home, please give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email  us info@teambaranowski.com

Northwest Florida's impact from the BP Oil Spill has been significant. Although our pristine beaches and emerald waters were minimally impacted, the media blitz and uncertainty of the oil spill caused a major hick-up in our real estate market and our economy. Below is a summary of a study performed by the University of Florida that discusses the uncertainty of the Florida real estate market.

UF study: BP oil spill adds to uncertainty about Florida’s real estate market

GAINESVILLE, Fla. – July 30, 2010 – The BP oil spill threatens to swamp a shaky Florida real estate industry that had been bottoming out because of repeated economic blows, the latest University of Florida survey finds.

“The devastating effect of the spill on the Panhandle’s economy has created a giant cloud of uncertainty that is affecting all markets across the state,” said Timothy Becker, director of UF’s Bergstrom Center for Real Estate Studies, which issues its survey for second quarter 2010 earlier this week.

“Our respondents indicate that the effect of the oil spill is being felt across Florida despite the fact that oil is currently only showing up on beaches in the Panhandle.”

The oil disaster’s effects are a worry second only to poor job growth in what is already a precarious condition for Florida’ real estate markets, he said.

“Until we start seeing improvements in job rates, I don’t think things are going to get much better than they are right now,” Becker said. “Unemployment drives everything for the real estate market, and while unemployment has gotten slightly better this past quarter, it’s not a significant difference.”

Florida’s unemployment rate, which dropped from 11.7 percent in May to a seasonally adjusted average of 11.4 percent in June, continues to be the nation’s fifth highest, he said.

The two biggest changes since the last real estate survey is an increasingly positive outlook for investment in industrial properties and a more pessimistic one for apartments, Becker said. It’s unclear why the industrial sector has become more favorable; however, the appeal of apartments has waned because aggressive purchasing has snapped up the most desirable properties, he said.

“For the past year and a half apartments have been the star performer if there is a star performer among property groups,” he said. “But our respondents have seen that good assets coming into the marketplace have been bought up, so the possibility of finding quality pieces of properties in the future is not as good.”

The outlook for single-family housing development and sales declined this quarter as a result of the oil spill, stagnant job growth, expiration of government tax credits and continued high foreclosure rates, Becker said. While the number of foreclosed homes in Florida has declined, it is still high, ranking third behind Nevada and Arizona, he said.

“Our respondents remain negative about new home construction, although builders are continuing to buy finished lots on which to build on,” he said.

The vitality of both the residential and commercial sectors is brightest in South Florida, particularly Miami-Dade and Broward counties, Becker said. “It’s not a great market, but it’s the best market in the state,” he said. “It has the advantage of international diversification, with a lot of money coming in, and it’s very vibrant culturally.”

Even Miami’s condo market, with thousands of empty units, has improved, with investors purchasing large chunks of condo properties downtown and placing them on the rental market, Becker said.

“Across the rest of the state condos are still bad news,” he said. “Sales are not very good because it’s difficult if not impossible to get bank financing to purchase them.”

With so many condos in Florida located on beachfront property, there are new fears that things could get worse, depending on how widespread the oil spill is, he said. He also noted other financial and political uncertainties loom.

A large group of commercial mortgages are coming due and it’s unclear whether the loans will be extended or they will come to market with large numbers of foreclosures, Becker said. These properties, which are bundled together, would have to be paid off with additional financing, but none is available, he said.

“Over the next few years there is close to a trillion dollars in real estate loans coming due that will need to be refinanced and there is just not the money to do that,” he said.

Politically, perhaps the biggest concern statewide is voters’ decision in November on Amendment 4, a constitutional amendment that would require a taxpayer-funded referendum for changes to local government comprehensive plans, he said.

“Our respondents believe that passage of Amendment 4 could be the nail in the coffin of the real estate industry in Florida,” Becker said. “Several respondents indicated that the uncertainty of its outcome is affecting purchase decisions even on entitled land, with potential buyers backing out of contracts.”

Nationally, Congress’s decision on the extension or expiration of the Bush era tax cuts and the passage of the financial reform bill is likely to affect real estate markets, although how is not known yet, he said.

Venturing into Panama City Beach this summer you will notice two things: First the beaches are spectacular and oil free and second Pier Park is HOT! I am convince Pier Park will be the top destination along the Emerald Coast for shopping and dining. The new airport is rocking and almost all of the flights into Northwest Florida Beaches International Airport are FULL!  So how do the Real Estate number look for Panama City Beach condos?

Panama City Beach condos are continuing to struggle in the Real Estate rebound in Northwest Florida. A volatile combination of  limited availability of loans to purchase condos, struggling HOAs and an excess of new condo inventory…Panama City Beach Condos are struggling to get back on track. Although the oil spill made little physical impact on our beaches it did negatively impact condo rental income and rental rates as vacationers looked for "oil spill specials".  I also believe the oil spill impacted sales transactions as sales volume and pending contracts are off 2009 numbers.

Panama City Beach Condo Market Summary and Analysis for July 2010 pdf Version

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

Just Reduced to $279,000! Call 850-259-1788 for details!

Dune Allen is a very popular area along Scenic 30A. Pristine sugary white sand beaches are just a step away, as well as the beautiful coast dune lake, Oyster Lake. This week's top distressed property pick is a fabulous townhouse in Dune Allen in Dune Breeze Villas. This Villa has all the elements of a hot buy: Gulf views, easy gulf access, lake views, community pool, low HOA, spacious floor plan, garage, incredibly low price!

Dune Breeze Villas 43B Dune Breeze in Dune Allen

Short Sales on Scenic 30A

Foreclosures on 30A

Fantastic opportunity to own in Dune Allen! This spacious townhouse has scenic Gulf and lake views, plus easy walking paths lead you to our pristine sugar-white sandy beaches. Located right off Scenic Highway 30A. With plenty of space to spread out and relax, this townhome in Dune Allen plenty of amenities to make you feel at home. Light, open, fresh color scheme, carpet and ceramic tile throughout. Large Master Suite with private bath, jacuzzi tub, and large private patio deck with Gulf and lake views. Excellent floor plan with each bedroom having its own private bath! Walking distance to Santa Rosa Beach and Golf Club, and only ten minutes from fabulous shopping and dining at Gulf Place and Seaside (East) or Destin/Sandestin (West). Enjoy those tranquil, beautiful sunsets you've dreamed about while sipping your favorite drink from either of our two spacious patios, out by the docks on Oyster Lake!

If you are interested in this town home in Dune Allen and would like to preview it or if you are interested in Team Baranowski listing your home, please give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email  us info@teambaranowski.com

I have written a number blog posts about strategic defaulters where owners choose to not pay their mortgage even though they can afford to pay. When the real estate market began its downward slide it mostly comprised of sub-prime mortgages. Analysts warned of "A rated" and prime mortgage defaults were looming on the horizon. The Emerald Coast and Scenic 30A has an abundance of $1mil+ properties and appears that well-healed or wealthy homeowners are defaulting on their mortgages at a higher rate than other segments.

LOS ALTOS, Calif.  – July 9, 2010 – Wealthy homeowners are defaulting on their mortgages at a higher rate than other segments of the population, according to the research firm CoreLogic.

More than one in seven borrowers with home loans of $1 million or more are seriously delinquent, according to research, compared to just one in 12 with mortgages for less than $1 million. The bottom line is the rich have stopped paying the mortgage on their residential, second home and investment properties at a rate that greatly exceeds the rest of the population.  

According to the New York Times, CoreLogic economists speculate that well-off borrowers are making calculated moves to shed poorly performing real estate, just as they would any other soured investment. “The rich are different: they are more ruthless,” said Sam Khater, CoreLogic’s senior economist. Though hard to prove, the CoreLogic data suggest that the rich do not appear to be particularly worried about being sued by their lender or frozen out of future loans by Fannie Mae, possible consequences of default.

The delinquency rate on investment homes where the original mortgage was more than $1 million is now 23 percent. For cheaper investment homes, it is about 10 percent.

With second homes, the delinquency rate for both types of owners was rising in concert until the stock market crashed in September 2008. That sent the percentage of troubled million-dollar loans spiraling up much faster than the smaller loans.

“Those with high net worth have other resources to lean on if they get in trouble,” said Khater.  “If they’re going delinquent faster than anyone else, that tells me they are doing so willingly.”

The rich and successful often come naturally to this sort of attitude, said Brent T. White, a law professor at the University of Arizona, who studied strategic defaults.

“They may be less susceptible to the shame and fear-mongering used by the government and the mortgage banking industry to keep underwater homeowners from acting in their financial best interest,” White said.

It is hard to imagine that our court systems are buried in foreclosures to the point that we have almost 1 million foreclosures in backlog in the Florida courts which will take years to process. Walton, Bay and Okaloosa county have been ramping up the foreclosures and running about 8 foreclosure sales a day. I am seeing less foreclosures being postponed and more being pushed through the system.

Nationally they are expecting more than 1 million households will loose their homes to foreclosure in 2010! This is an astonishing number and does not include land foreclosures or commercial property foreclosures. The next 6 to 12 months is going to be an interesting ride as the bulk of foreclosures work their way through the court systems.

LOS ANGELES (AP) – July 15, 2010 – More than 1 million American households are likely to lose their homes to foreclosure this year, as lenders work their way through a huge backlog of borrowers who have fallen behind on their loans.

Nearly 528,000 homes were taken over by lenders in the first six months of the year, a rate that is on track to eclipse the more than 900,000 homes repossessed in 2009, according to data released Thursday by RealtyTrac Inc., a foreclosure listing service.

“That would be unprecedented,” said Rick Sharga, a senior vice president at RealtyTrac.

By comparison, lenders have historically taken over about 100,000 homes a year, Sharga said.

The surge in home repossessions reflects the dynamic of a foreclosure crisis that has shown signs of leveling off in recent months, but remains a crippling drag on the housing market.

The pace at which new homes falling behind in payments and entering the foreclosure process has slowed as banks continue to let delinquent borrowers stay longer in their homes rather than adding to the glut of foreclosed properties on the market. At the same time, lenders have stepped up repossessions in an effort to clear out the backlog of distressed inventory on their books.

The number of households facing foreclosure in the first half of the year climbed 8 percent versus the same period last year, but dropped 5 percent from the last six months of 2009, according to RealtyTrac, which tracks notices for defaults, scheduled home auctions and home repossessions.

In all, about 1.7 million homeowners received a foreclosure-related warning between January and June. That translates to one in 78 U.S. homes.

Foreclosure notices posted monthly declines in April, May and June, but Sharga said one shouldn’t read too much into that.

“The banks are really sort of controlling or managing the dial on how fast these things get processed so they can ultimately manage the inventory of distressed assets on the market,” he said.

On average, it takes about 15 months for a home loan to go from being 30 days late to the property being foreclosed and sold, according to Lender Processing Services Inc., which tracks mortgages.

Assuming the U.S. economy doesn’t worsen, aggravating the foreclosure crisis, Sharga projects it will take lenders through 2013 to resolve the backlog of distressed properties that have on their books right now.

And a new wave of foreclosures could be coming in the second half of the year, especially if the unemployment rate remains high, mortgage-assistance programs fail, and the economy doesn’t improve fast enough to lift home sales.

The prospect of lenders taking over more than a million homes this year is likely to push housing values down, experts say.

Foreclosed homes are typically sold at steep discounts, lowering the value of surrounding properties.

“The downward pressure from foreclosures will persist and prices will be very weak well into 2012,” said Celia Chen, senior director of Moody’s Economy.com.

She projects home prices will fall as much as 6 percent over the next 12 months from where they were in the first-quarter.

Economic woes, such as unemployment or reduced income, continue to be the main catalysts for foreclosures this year. Initially, lax lending standards were the culprit. Now, homeowners with good credit who took out conventional, fixed-rate loans are the fastest growing group of foreclosures.

There are more than 7.3 million home loans in some stage of delinquency, according to Lender Processing Services.

Lenders are offering to help some homeowners modify their loans. But many borrowers can’t qualify or they are falling back into default. The Obama administration’s $75 billion foreclosure prevention effort has made only a small dent in the problem.

More than a third of the 1.2 million borrowers who have enrolled in the mortgage modification program have dropped out. That compares with about 27 percent who have received permanent loan modifications and are making payments on time.

Among states, Nevada posted the highest foreclosure rate in the first half of the year. One in every 17 households there received a foreclosure notice. However, foreclosures there are down 6 percent from a year earlier.

Arizona, Florida, California and Utah were next among states with the highest foreclosure rates. Rounding out the top 10 were Georgia, Michigan, Idaho, Illinois and Colorado.

Copyright 2010 The Associated Press, Alex Veiga, AP Real Estate Writer. AP Real Estate Writer Alan Zibel in Washington contributed to this report.

Distressed property, foreclosures, bank owned property, short sales, REO's…that is all I hear on a daily basis. Every day I add new prospective buyers into my contact management system and the large white board on the wall of the office and everyone has a note that says, "wants a great deal."

Most of my conversations go like this…"I am looking for distressed property. I know you hear this all the time, but I want a great deal. Not a good deal, but a GREAT deal!' I have to laugh because when the real estate market was booming and prices were skyrocketing people were buying anything and everything. Now when prices are at historically low levels everyone wants an even a better deal!

So the magic question is…how much better of a deal can you get? Let's throw in distressed interest rates which are at the lowest levels we have seen in decades! There can not be a better time to buy than right now! I call them distressed interest rates as they are ridiculously low interest rates and the cost of ownership is at the lowest levels we may see in our lifetime!

Let's do some fun math on a $450,000 mortgage amortized over 30 years:

We will compare the market peak in 2005 to 2010 at the market bottom…

2005:  $450,000 @ 6.25% monthly payment is $2,770.73

2010: $450,000 @ 4.59% monthly payment is $2,304.21 [Bankrate.com 7/19/2010]

WASHINGTON – July 16, 2010 – Mortgage rates were unchanged this week at the lowest point in decades, but it hasn’t been enough to jump-start the housing market.

Government-sponsored mortgage buyer Freddie Mac said Thursday the average rate for 30-year fixed loans this week was 4.57 percent. That’s the same as a week earlier and the lowest since Freddie Mac began tracking rates in 1971.

The last time home loan rates were lower was the 1950s, when most mortgages lasted just 20 or 25 years.

Rates have fallen since the spring. Investors, concerned with the European debt crisis, have poured money into the safety of Treasury bonds. Treasury yields have fallen and so have mortgage rates, which tend to track yields on U.S. debt.

However, low rates have yet to fuel home sales and have sparked only a modest increase in refinancing activity.

The housing market has slowed since federal tax credits for homebuyers expired at the end of April. And the latest decline in mortgage rates is unlikely to boost the market.

Mortgage rates have hovered near record lows for some time, so most people who can afford to buy homes or qualify to refinance their loans have already done so in the past 18 months. Doing so again wouldn’t be worth the cost for most.

Meanwhile, millions of Americans are unable to take advantage of the low rates. Many have seen the value of their homes plummet and have little or no equity. Or they lack good credit or steady income to get or refinance a mortgage.

Rates could go lower and still not budge the housing market, analysts say. That’s because a person without a job can’t afford a home and a person worried about losing their job is unlikely to do so either.

To calculate the national average, Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

Rates on 15-year fixed-rate mortgages decreased to an average of 4.06 percent, down from 4.07 percent last week. Rates on five-year adjustable-rate mortgages averaged 3.85 percent, up from 3.75 percent a week earlier.

Rates on one-year adjustable-rate mortgages fell to an average of 3.74 percent from 3.75 percent.

The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount. The nationwide fee for all types of loans in Freddie Mac’s survey averaged 0.7 a point.
Copyright 2010 The Associated Press, Alan Zibel (AP Real Estate Writer). All rights reserved.

Just Listed for $949,900! 3,415sf in WaterSound Beach for under $1mil!

The last foreclosure in WaterSound Beach to come onto the market, 189 Gulf Bridge Lane, had 3 offers in the first 24 Hours. This WaterSound Beach Foreclosure is due to hit the market in early July 2010. This WaterSound Beach Foreclosure will not last long. If you are interested in this home please give either Tracy or Craig a call at 850-259-4270 and 850-259-1788 or email @ info@teambaranowski.com

Homes  in WaterSound Beach

Condos in WaterSound Beach

WaterSound Beach Market Analysis and Market Snapshot

Custom built home with lots of upgraded features including 5 1/4" Australian Cypress Wood floors, kitchen cabinets by Quaker Made with 1" cabinet doors, frameless glass on showers and high-end granite in kitchen as well as in bathrooms. The kitchen in the main house comes complete with Viking Appliances, a built-in ice maker as well as built-in wine cooler/storage. living area is wired for surround sound. There are two indoor and two outdoor. The home is wired for a security system and the outdoor fireplaces with gas logs. The brick arched wall inside the home adds warmth and beauty. The carriage house features GE appliances. There are ample views of the gulf as well as the lake. Step out the front door and walk across the street to the boardwalk to the pier. It's just a short stroll to the amazing pool and beautiful meeting room

If you are interested in this home please give either Tracy or Craig a call at 850-259-4270 and 850-259-1788 or email @ info@teambaranowski.com