Kerry Veach

No matter what time of year it is, Destin has one of the most beautiful beaches in Florida – but don’t take my word for it – just ask the the US News Travel Guide.

Destin, FL real estate has been attracting buyers not just from around the state, but throughout the country.  And who can blame them?  Not only does this year-round sunny climate make everyday feel like a vacation, but the friendly people and smiling faces have a way of making visitors feel as welcome as homeowners.

With mortgage interest rates at historic lows and home affordability at historic highs, why wouldn’t everyone jump at the opportunity to buy Destin, FL real estate?  Perhaps you’re waiting for prices to go down more?  Or perhaps you think interest rates will drop further?  I suppose it’s possible – just as it’s possible that we could get snow on Christmas Day.  Don’t laugh.

The truth of the matter is, the real estate market in Destin, FL and around the nation have been showing signs of consistent improvement for the past year.  Third quarter of 2011 is when things began to pick up, but understandably, it was too soon for anyone to get truly excited about the progress.  However, we are now in the fourth quarter of 2012 and this trend of improvement is still continuing.

But what about the “fiscal cliff” you ask?

Without trivializing the impact that renewing/modifying/ending these tax cuts will have, the real estate market will remain cyclical just as it has always been.  If Congress makes all the wrong decisions, then yes, it could stall recovery.  But send the nation back into another recession?  Even if it did, mortgage rates really cannot go any lower, and the increase in home values is due primarily to a lack of inventory, not anything that Congress has done (or will do for that matter).

Long story short, no one can predict the future, but we can make educated decisions based on data and market trends.  Based on this information, the “bottom” has come and gone.  We are now officially on the road to economic recovery.

If you would like to take advantage of great values and low interest rates while they last, search Destin, FL real estate now.

Kerry Veach is a Destin, FL Realtor and Real Estate Broker with 22 years of experience assisting thousands in the exciting process of buying and/or selling a home.   He is a member of the RE/MAX Hall of Fame, the RE/MAX Platinum Club, and the RE/MAX® 100% CLUB.  In 2011, he earned the RE/Max Lifetime Achievement Award. 

If you would like to buy a home in Destin, FL or sell a home in Destin, FL, contact Kerry Veach.  With over 1,000 closings and thousands of satisfied clients, it’s no wonder that 95% of Kerry’s business comes from referrals.

The economy in Florida is continuing to show signs of improvement.  Though these improvements may not be felt by each individual homeowner in the sunshine state just yet, they are a promising indication of what the future holds.

Since December 2010, Florida has created 156,800 private sector jobs and has experienced positive annual job growth.  If you disect the data further, you will see that this growth has been positive for 12 of the last 15 consecutive months.   Specifically, job postings showed a sharp increase in September 2012 of 15.1 percent – or 35,277 jobs.

Improvements in the private sector’s job market are not the only indication of an economic rebound.  Net in-migration for Florida state is up to an estimated 134,500 this year from 68,000 in 2011.  As a result, demand for homes in Northwest Florida are driving up home values.

Aware of these real estate trends, developers are beginning to build again and banks are beginning to lend again.  A local example of this bolstered developer confidence is reflected in the recent contracting of Peacock’s Point – a gated subdivision with waterfront lots situated along Choctawhatchee Bay and Joe’s Bayou.

“The housing and construction industry is vital to helping Florida’s economy continue to rebound while providing employment to the thousands of workers who are seeking a job,” said Governor Rick Scott. “Seeing these positive indicators across the state shows that people are feeling more confident in buying or building a home.”

All of these components are creating a domino effect where the end result is a boost in the Florida economy.

If you would like to buy a home in Northwest Florida or sell a home in Northwest Florida, contact Kerry Veach.  Kerry is a Northwest Florida Realtor and Real Estate Broker with 22 years of experience assisting thousands in the exciting process of buying and/or selling a home.   He is a member of the RE/MAX Hall of Fame, the RE/MAX Platinum Club, and the RE/MAX® 100% CLUB.  In 2011, he earned the RE/Max Lifetime Achievement Award.  With over 1,000 closings and thousands of satisfied clients, it’s no wonder that 95% of Kerry’s business comes from referrals.

If you’ve been searching Emerald Cost homes, then you might be interested to learn that home affordability is currently at the highest level we’ve seen in decades.  Nearly 78 percent of homes sold during the first quarter of 2012 were affordable to individuals who earned the national median income of $61,000 – this according to a report released yesterday by the National Association of Home Builders and Wells Fargo.

Here are some general figures to give you an even better idea of what this means:

• To purchase a home at the national median price of $158,000 with 5 percent down, the loan applicant would need an annual household income of $34,700.
• To purchase a home at the national median price of $158,000 with 10 percent down, the loan applicant would need an annual household income of $32,900.
• To purchase a home at the national median price of $158,000 with 20 percent down, the loan applicant would need an annual household income of $29,300.

These figures are assuming a 4 percent interest rate, good credit, and 25 percent of gross income allocated to principal and interest.

There are few reasons for this historic affordability index.  For starters, home values are still about 36 percent away from their peak, while the annual median income has increased by about 10 percent on a national level.  Mortgage rates also remain at record lows, hovering around the 4 percent mark.

While homes in Emerald Coast have never been more affordable, mortgage lending guidelines are far tighter than they were before the housing bubble burst.  Lenders are also requiring more documentation to verify that the borrower can afford the monthly mortgage payments associated with their loan program.  For borrowers with average credit, FHA may still be the best option, but this often comes with a higher interest rate and private mortgage insurance, making monthly payments higher than conventional loan programs.

If you are interested in searching Emerald Coast homes, contact Kerry Veach.  Kerry is an experienced Realtor who can help you buy or sell Emerald Cost real estate.  With over 1,000 closings and a full-time real estate team, it’s no wonder that 95% of Kerry’s business comes from referrals.

Image(s): FreeDigitalPhotos.net

TAX TIME - MID STILL HOLDING ON

I have to say that I, for one, have had a love affair going on with a time-honored Mortgage Interest Tax Deduction (MID).  Up until the housing crisis, from which we are beginning to recover, interest rates weren’t all that friendly, if you remember what I mean, and we have all needed that deduction.

When the  bipartisan deficit-reduction commission, appointed by President Obama, released its sixty-some-page final plan in December of 2010, it was called “The Moment of Truth.” The plan, which included suggestions to cut back on the MID, didn’t get a majority vote.  However, “The Moment of Truth” spelled out the unfriendly facts for all of us to face.

Then, last summer, when the so called, “Super Committee,” was supposed to be working on ways to cut the budget, MID was on the table again, presumably to modify it in order to curb capital gains on home sales, but they were also threatening to modify it for primary residences, to cut it for second homes and HELOC loans. I was worried . . .

Recently I watched an interview between Robert Freedman of REALTOR ® Magazine and Linda Goold, National Association of Realtors ® (NAR) Director of Tax Policy.

 “There is to be no deficit deal from the Super Committee that will be an impact on Realtors ® in 2012,” stated Freedman.  Then when he asked Ms. Goold to comment, she said,  “The news at this point is really good because we know that there will be no immediate proposal to limit the mortgage interest deduction.  This is consistent with the NAR new mantra of ‘Do No Harm.’”

 In November, 2011, we got a tax breather!  For now, we can pay our 2011 taxes and take the deduction.  However, when the committee failed to do anything, it left the House and Senate back where they started–looking for ways to cut the budget.  There will be lots of competing deductions being considered, so don’t think it’s not going to be a dog fight, because it sure is.

In the meantime, we can get on with the business of listing and selling houses to people who want to live in the best of all worlds—the Emerald Coast in Destin or Fort Walton Beach and the surrounding area.

 If you are thinking of buying or selling a home in Panama City Beach, Destin or anywhere in the area—then the Veach Team is prepared to help you find the Florida home of your dreams or the investment property that will put your money to work for you. Contact us today, and let us show you why “Life is a Beach” here in beautiful Destin! And don’t forget to “LIKE” us on Facebook and Twitter – we’d love to talk with you.

The Millennials are just hitting thirty, and the Echo Boomers are in their late twenties. Both groups are ready—or about ready–to be homeowners.

There has never been a better time to afford to own a home on the Emerald Coast.

Jobs are available, and house payments are often the same or lower than rent. Mortgage analysts are predicting that 30-year-fixed rates—currently at 60 year lows–will remain low or below 5% for most of 2012.

More than a year ago, when FHA guidelines reduced the amount a seller can contribute to closing costs by half (from 6% to 3%) it looked like buyers may have to begin jumping through impossible hoops to get a government-backed loan. Because FHA requirements were more stringent, some lenders developed their own conditions which were over and above what FHA required.

Originally these extra conditions were initiated in an attempt to improve the quality of loans being made—but this little-known practice by lenders called, “investor overlays,” began to close doors for many borrowers. Some lenders decided to overlay FHA guidelines with their own conditions that had to be met by borrowers in order to get a loan.

Ironically, even though a time of economic uncertainty still exists, “investor overlays” seem to currently be creating a beacon of hope for many buyers who are just on the cusp of these more stringent requirements.

Borrowers today are more savvy than ever, and the overlay practice has begun to prompt them to be pro-active–going to the next lender and the next until they get the approval they are after.

In other words—if a borrower gets turned down by a bank they can now go down the street to another bank or mortgage company and try again. It is no longer unusual to get turned down by one bank or mortgage company using stringent overlays–only to be accepted by the next one who is not using the practice, or who is not as stringent.

Buyers are learning to get their information together in a ready format that can be submitted to more than one lender. An immediately available, well-documented, current, organized folder will go a long way to ingratiating any buyer when applying for a loan.

The folder may include such information as a copy of the sales contract; the past two years of residence information, employment history, monthly budget, and information about all income sources—including W-2s and federal tax returns; the past two months of bank statements and check stubs; copies of current insurance: homeowners and flood.

There may be other things required, depending on an individual’s circumstances, but most of the above is a definite.

Folks, you know, and I know that real estate values are already increasing in the Destin-Fort Walton Beach area of Florida. As I stated above: “There has never been a better time to afford to own a home on the Emerald Coast!”

If you are thinking of buying or selling a home in Panama City Beach, Destin or anywhere in the area—then the Veach Team is prepared to help you find the Florida home of your dreams. Contact us today, and let us show you why “Life is a Beach” here in beautiful Destin! And don’t forget to “LIKE” us on Facebook and Twitter – we’d love to talk with you.

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